<PAGE>
[PHOTO]
[PHOTO] Smith Barney
Managed
Municipals
Fund Inc.
ANNUAL REPORT
February 28, 1999
[LOGO] Smith Barney Mutual Funds
Investing for your future.
Every day.(R)
<PAGE>
Smith Barney Managed
Municipals Fund Inc.
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The Smith Barney Managed Municipals Fund Inc. ("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.
Smith Barney Managed Municipals Fund Inc.
Average Annual Total Returns
February 28, 1999
Without Sales Charges(1)
---------------------------------------
Class A Class B Class L(2)
================================================================================
One-Year 4.07% 3.48% 3.49%
- --------------------------------------------------------------------------------
Five-Year 7.20 6.64 N/A
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Ten-Year 8.90 N/A N/A
- --------------------------------------------------------------------------------
Since Inception++ 10.73 8.14 9.77
================================================================================
With Sales Charges(3)
---------------------------------------
Class A Class B Class L(2)
================================================================================
One-Year (0.06)% (0.95)% 1.51%
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Five-Year 6.33 6.48 N/A
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Ten-Year 8.46 N/A N/A
- --------------------------------------------------------------------------------
Since Inception++ 10.47 8.14 9.53
================================================================================
(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) On June 12, 1998, the former Class C shares were renamed Class L shares.
(3) 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.
++ Inception dates for Class A, B and L shares are March 4, 1981, November 6,
1992 and November 9, 1994, respectively.
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FUND HIGHLIGHT
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The fundamentals -- low inflation and a benign Fed monetary policy -- are
favorable for the bond markets: We think these positive conditions will be with
us in the coming months. As you get closer to a presidential election year, the
economy may pick-up. At that point we may take a more conservative stance in the
Fund than we currently follow. We believe that the economy should be our guide,
because it will be the key factor affecting future Fed monetary policy.
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NASDAQ SYMBOL
- --------------------------------------------------------------------------------
Class A SHMMX
Class B SMMBX
Class L SMMUL
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WHAT'S INSIDE
- --------------------------------------------------------------------------------
Shareholder Letter ............................................1
Historical Performance.........................................3
Smith Barney Managed Municipals Fund Inc.
at a Glance ...................................................5
Schedule of Investments........................................6
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
Independent Auditors' Report .................................45
Tax Information ..............................................46
Additional Shareholder Information ...........................47
<PAGE>
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Shareholder Letter
- --------------------------------------------------------------------------------
[PHOTO] [PHOTO]
HEATH B. JOSEPH P.
MCLENDON DEANE
Chairman Vice President and
Investment Officer
Dear Shareholder:
We are pleased to provide the annual report for the Smith Barney Managed
Municipals Fund Inc. ("Fund") for the year ended February 28, 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.
A Classic Investor Series Fund
The Fund is part of the Classic Investor Series Funds of Smith Barney Mutual
Funds. The Classic Investor Series funds are mutual funds, whose investment
decisions are determined by experienced portfolio managers, based on each fund's
investment objectives and guidelines. Funds in the Smith Barney Classic Investor
Series invest across asset classes and sectors, utilizing a range of strategies
in order to achieve their objectives.
Performance Update
For the year ended February 28, 1999, the Fund returned 4.07%, 3.48% and 3.49%
for its Class A, B and L shares, respectively, without the effects of sales
charges. In comparison, the Fund's Lipper Inc. peer group average return was
4.88% for the same period. (Lipper is a major fund-tracking organization.) Over
the year covered by this report, the Fund distributed income dividends totaling
$0.79 for Class A shares; based on its net asset value ("NAV") of $15.93 as of
February 28, 1999, and the current monthly income dividend rate of $0.061 for
Class A shares, this equates to an annualized distribution rate of 4.60%. For an
individual in the federal income tax bracket of 36%, the tax-free yield of 4.60%
is equivalent to a taxable yield of 7.19%.
Investment Strategy
As 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 February 28, 1999 the
Fund's average weighted maturity was 19.1 years versus approximately 20.6 years
on February 28, 1998.
Our fundamental goal is to create portfolios that will provide shareholders with
the ability to participate in the municipal bond market's upside, but we also
exercise discipline amidst euphoria when the market experiences a serious rally.
We believe you cannot just manage for yield alone, and that is why we
concentrate so much on total return. By making adjustments to the Fund's average
maturity, you can try to lessen the impact of volatility or take advantage of
it. We think you're going to miss tremendous
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 1
<PAGE>
opportunities or make yourself more vulnerable to losses when you do not manage
for total return. Moreover, our total-return emphasis is not just about making
money, it's about saving money in down markets. Over the long term, you need to
generate high total returns in order to provide shareholders with a competitive
stream of income.
As of February 28, 1999, 94.5% 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 68.4% 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 Fund's largest
holdings were miscellaneous bonds (16.6%), general obligation bonds (16.6%), and
hospital bonds (15.0%).
Market Update and Outlook
During the Fund's reporting period, the bond markets have not been dull.
Beginning with the Asian crisis, Russia's default and the problems with a major
hedge fund we have certainly seen some turbulence. The bottom line though is
that we believe inflation is near historic lows, the U.S. economy is quite solid
and the Federal Reserve Board ("Fed") has adopted a more accommodative stance
for short-term rates. It all adds up to a positive backdrop for bonds.
In our view, the large drop in rates last year in the U.S. government bond
market was not caused by economic fundamentals but primarily the unwinding of
huge short positions by major hedge funds. In fact, 1998 was the first year in
recent memory where the economic fundamentals seemed to mean so little to the
bond market.
Over the short term, we don't think that future Fed monetary policy will be
influenced by conditions in the financial markets. We think that any future Fed
decisions on rates will be driven by the state of the U.S. economy. Unless there
are any signs of inflationary pressures, we do not anticipate any Fed tightening
in the coming months. However, if the U.S. economy begins to re-accelerate and
labor markets continue to tighten, the Fed may raise rates in the second half of
1999.
As we have noted, the fundamentals -- low inflation and a benign Fed monetary
policy -- are favorable for the bond markets. We think these positive conditions
will be with us in the coming months. As you get closer to a presidential
election year, the economy may pick-up. At that point we may take a more
conservative stance in the Fund than we currently follow. We believe that the
economy should be our guide, because it will be the key factor affecting future
Fed monetary policy.
In rallies, municipal bonds generally underperform versus U.S. government bonds
and corporate bonds. That happened in July, August, September and October of
last year. However, with long-term municipal bonds yielding roughly 94% of
long-term U.S. Treasury bonds, we think that municipal bonds are very attractive
on a relative basis. If rates do rise, the volume of new issues and refunding
deals in the municipal bond market will decrease, causing more favorable supply
and demand conditions, providing support for municipal bond prices thus
outperforming long-term U.S. Treasuries.
In closing, thank you for your investment in Smith Barney Managed Municipals
Fund. We encourage you to visit our Web site at www.smithbarney.com. We look
forward to continuing to help you pursue your financial goals.
Sincerely,
/s/ Heath B. McLendon /s/ Joseph P. Deane
Heath B. McLendon Joseph P. Deane
Chairman Vice President and
Investment Officer
March 29, 1999
- --------------------------------------------------------------------------------
2 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns(1)
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
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 $9.46 $2.76 $0.08
=============================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns(1)
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
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 $5.04 $2.76 $0.01
=============================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Historical Performance -- Class L Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns(1)
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
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 $3.32 $1.34 $0.00
=============================================================================================================================
</TABLE>
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Smith Barney Managed Municipals Fund Inc. 3
<PAGE>
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Historical Performance -- Class Y Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
-------------------------
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns(1)
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
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 $3.43 $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 Charge(1)
---------------------------------------------------------------------------------
Class A Class B Class L Class Y
====================================================================================================================================
<S> <C> <C> <C> <C>
Year Ended 2/28/99 4.07% 3.48% 3.49% 4.39%
- ------------------------------------------------------------------------------------------------------------------------------------
Five Years Ended 2/28/99 7.20 6.64 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Ten Years Ended 2/28/99 8.90 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Inception* through 2/28/99 10.73 8.14 9.77 7.98
====================================================================================================================================
<CAPTION>
With Sales Charge(2)
---------------------------------------------------------------------------------
Class A Class B Class L Class Y
====================================================================================================================================
<S> <C> <C> <C> <C>
Year Ended 2/28/99 (0.06)% (0.95)% 1.51% 4.39%
- ------------------------------------------------------------------------------------------------------------------------------------
Five Years Ended 2/28/99 6.33 6.48 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Ten Years Ended 2/28/99 8.46 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Inception* through 2/28/99 10.47 8.14 9.53 7.98
====================================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Cumulative Total Return
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Without Sales Charge(1)
====================================================================================================================================
<S> <C>
Class A (2/28/89 through 2/28/99) 134.68%
- ------------------------------------------------------------------------------------------------------------------------------------
Class B (Inception* through 2/28/99) 63.92
- ------------------------------------------------------------------------------------------------------------------------------------
Class L (Inception* through 2/28/99) 49.43
- ------------------------------------------------------------------------------------------------------------------------------------
Class Y (Inception* through 2/28/99) 35.00
====================================================================================================================================
</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.
- --------------------------------------------------------------------------------
4 1999 Annual Report to Shareholders
<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+
- --------------------------------------------------------------------------------
February 1989 -- February 1999
[GRAPHIC]
+ Hypothetical illustration of $10,000 invested in Class A shares on
February 28, 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 February 28, 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 February 28, 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*
- --------------------------------------------------------------------------------
[GRAPHIC]
Texas 21.4%
New York 9.9%
California 7.7%
Colorado 7.6%
Michigan 6.1%
Florida 5.4%
Massachusetts 4.8%
Ohio 3.7%
Pennsylvania 3.2%
Illinois 2.8%
Industry Breakdown*
- --------------------------------------------------------------------------------
[GRAPHIC]
Utilities 13.2%
Water & Sewer 9.3%
Other Municipal Bonds 20.4%
Cogeneration Facility 3.2%
Education 6.5%
General Obligation 16.6%
Hospital 15.0%
Housing 3.2%
PCR 1.3%
Transportation 11.3%
* As a percentage of total investments.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 5
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Alabama -- 0.2%
$ 2,000,000 AAA Jefferson County, AL Board of Education, Series B, FSA-Insured,
4.750% due 2/15/18 $ 1,940,000
Montgomery, AL BMC Special Care Facilities Financing Authority Revenue,
Baptist Health, Series B:
1,110,000 AAA 5.250% due 11/15/15 1,139,138
4,500,000 AAA 4.875% due 11/15/18 4,387,500
- ------------------------------------------------------------------------------------------------------------------------------------
7,466,638
- ------------------------------------------------------------------------------------------------------------------------------------
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) 8,797,500
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona -- 0.9%
1,000,000 AAA Arizona Health Facilities Authority, Hospital Systems Revenue,
Northern Arizona Healthcare System, AMBAC-Insured,
5.000% due 10/1/23 986,250
12,170,000 A Greenlee County, AZ IDA, PCR, (Phelps Dodge Corp. Project),
5.450% due 6/1/09 12,656,800
1,000,000 AA Maricopa County, AZ GO, High School District No. 210,
4.750% due 7/1/17 976,250
Maricopa County, AZ IDA, Multi-Family Housing Revenue:
3,500,000 A Series A, 6.500% due 10/1/25 3,705,625
1,000,000 AAA Metro Gardens, Mesa Ridge Project, Series A, MBIA-Insured,
5.150% due 7/1/29 997,500
Maricopa County, AZ School District No. 1, (Phoenix Elementary
Project of 1998), Series A, FSA-Insured:
2,600,000 AAA 5.000% due 7/1/13 2,645,500
1,500,000 AAA 5.000% due 7/1/14 1,518,750
2,000,000 AA+ Phoenix, AZ GO, 4.750% due 7/1/23 1,935,000
1,750,000 AAA Pima County, AZ COP, MBIA-Insured, 5.250% due 1/1/12 1,813,438
3,500,000 AAA Pima County, AZ IDA, Healthpartners of Southern Arizona, Series A,
MBIA-Insured, 5.625% due 4/1/14 3,758,125
1,830,000 Aaa* Pinal County, AZ Community College, Pledge Obligation, AMBAC-Insured,
5.000% due 7/1/12 1,875,750
1,000,000 AAA Sedona, AZ Wastewater Municipal Property Corp., Excise Tax Revenue,
MBIA-Insured, 5.375% due 7/1/15 1,038,750
2,000,000 AAA Yavapai County, AZ IDA, Yavapai Regional Medical Center, Series A,
FSA-Insured, 5.125% due 12/1/13 2,052,500
- ------------------------------------------------------------------------------------------------------------------------------------
35,960,238
- ------------------------------------------------------------------------------------------------------------------------------------
California -- 7.7%
Alameda County, CA COP, (Refunding and Capital Projects),
AMBAC-Insured:
1,000,000 AAA 5.000% due 6/1/13 1,026,250
750,000 AAA 5.000% due 6/1/14 763,125
720,000 AAA 5.000% due 6/1/16 723,600
2,250,000 A* Apple Valley, CA Unified School District, COP, 5.900% due 9/1/11 2,359,687
2,720,000 AAA Brawley, CA COP, (Water Systems Improvement Project), MBIA-Insured,
5.000% due 12/1/18 2,723,400
California Health Facilities Finance Authority Revenue:
5,000,000 AAA Cedars-Sinai Center, Series A, MBIA-Insured, 5.125% due 8/1/17 5,081,250
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
6 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
California -- 7.7% (continued)
Kaiser Permanente:
$ 11,000,000 AAA Series A, FSA-Insured, 5.500% due 6/1/22 $11,618,750
9,720,000 A Series B, 5.250% due 10/1/13 9,963,000
California State Public Works Board, Lease Revenue:
5,895,000 A1* California State University, Series C, 5.250% due 10/1/14 6,145,537
9,250,000 AAA Department of Corrections, Series A, AMBAC-Insured,
5.250% due 1/1/21 9,388,750
7,545,000 AAA California State Department of Transportation, COP, Series A,
MBIA-Insured, 5.250% due 3/1/16 7,790,212
California Statewide Community Development
Authority, COP:
2,000,000 A Kaiser Permanente Remarketed 7/8/98, 5.300% due 12/1/15 2,052,500
St. Joseph Health System:
10,500,000 AA 5.125% due 7/1/17 10,539,375
9,500,000 AA 5.250% due 7/1/21 9,535,625
3,000,000 AAA Campbell, CA Unified School District, GO, FGIC-Insured,
5.000% due 8/1/17 3,030,000
6,995,000 AAA Chino, CA Unified School District, COP, FSA-Insured, 6.125% due 9/1/26 7,746,962
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 5,581,250
15,215,000 AAA Corona, CA Redevelopment Agency, Tax Allocation,
(Redevelopment Project, Area A), Series A, FGIC-Insured,
5.500% due 9/1/24 15,918,694
5,000,000 AAA Fresno County, CA Financing Authority, Solid Waste Revenue,
(American Avenue Landfill Project), MBIA-Insured,
5.750% due 5/15/14 5,431,250
Long Beach, CA Revenue, (Aquarium of the Pacific Project), Series A:
1,260,000 BBB 5.750% due 7/1/05 1,363,950
1,200,000 BBB 5.750% due 7/1/06 1,293,000
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 1,197,788
Los Angeles, CA Metropolitan Transportation Authority,
Sales Tax Revenue, Series A, MBIA-Insured:
17,770,000 AAA 5.250% due 7/1/14 18,525,225
15,000,000 AAA 5.250% due 7/1/15 15,543,750
Los Angeles, CA Public Works Financing Authority Lease Revenue:
1,630,000 AAA MBIA-Insured, 5.250% due 9/1/13 1,713,538
15,400,000 AA Regional Park and Open Space District, Series A, 5.000% due 10/1/16 15,554,000
2,780,000 AAA Los Angeles, CA Unified School District, COP, Series A,
FSA-Insured, 5.500% due 10/1/16 2,943,325
8,185,000 AA Metropolitan Water District, Southern California Waterworks Revenue,
Series A, 5.000% due 7/1/15 8,318,006
15,000,000 AAA Orange County, CA Recovery, COP, Series A, MBIA-Insured,
5.875% due 7/1/19 16,443,750
5,200,000 AAA Roseville, CA Water Utility Revenue, COP, FGIC-Insured,
5.200% due 12/1/15 5,388,500
2,500,000 AAA Sacramento, CA Cogeneration Authority, Cogenertation Project Revenue,
MBIA-Insured, 5.200% due 7/1/21 2,515,625
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 7
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
California -- 7.7% (continued)
$ 3,500,000 AAA Sacramento, CA Municipal Utility District, Electrical Revenue, Series L,
MBIA-Insured, 5.200% due 7/1/17 $ 3,591,875
San Diego County, CA COP, Northern County Regional Expansion Revenue,
AMBAC-Insured:
5,500,000 AAA 5.250% due 11/15/14 5,740,625
4,000,000 AAA 5.000% due 10/1/17 4,005,000
2,420,000 AAA 5.250% due 11/15/19 2,474,450
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 35,700,000
San Jose, CA Redevelopment Agency, Tax Allocation,
(Merged Area Redevelopment Project) AMBAC-Insured:
5,515,000 AAA 4.750% due 8/1/16 5,411,594
7,065,000 AAA 4.750% due 8/1/18 6,835,388
4,755,000 AAA 4.750% due 8/1/19 4,588,575
18,185,000 AAA 4.750% due 8/1/23 17,434,869
Santa Clara County, CA Finance Authority, Lease Revenue,
AMBAC-Insured:
5,500,000 AAA 6.750% due 11/15/20(b) 6,441,875
2,000,000 AAA 6.250% due 11/15/22 2,265,000
1,515,000 AAA Victorville, CA Multi-Family Revenue, Wimbledon Apartments,
Series A, GNMA-Collateralized, 6.150% due 4/20/16 1,615,369
- ------------------------------------------------------------------------------------------------------------------------------------
304,324,294
- ------------------------------------------------------------------------------------------------------------------------------------
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 2,487,500
2,250,000 AAA 5.000% due 12/15/15 2,227,500
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) 17,943,750
Colorado Health Facilities Authority Revenue:
18,250,000 A Series A, Remarketed 7/8/98, 5.350% due 11/1/16 18,409,687
11,000,000 A Series B, Remarketed 7/8/98, 5.350% due 8/1/15 11,220,000
8,500,000 AAA Sisters of Charity Leavenworth, MBIA-Insured, 5.125% due 12/1/18 8,531,875
2,000,000 Aa2* Colorado Housing Finance Authority, Single Family, Series D-2,
6.350% due 11/1/29(d) 2,192,500
12,765,000 BBB+ Colorado Springs, CO Airport Revenue, Series A, 7.000% due 1/1/22(b)(d) 13,897,894
Dawson Ridge, CO Metropolitan District No. 1, (Escrowed to
Maturity with REFCO strips):
364,000,000 Aaa* Series A, zero coupon bond due 10/1/22 97,825,000
27,785,000 Aaa* Series B, zero coupon bond due 10/1/22(b) 7,467,219
Denver, CO City & County Airport Revenue, Series A:
3,585,000 AAA Pre-Refunded-- Escrowed with state and local government
securities to 11/15/01 Call @ 100, 8.000% due 11/15/25(b)(d) 3,988,312
26,500,000 BBB+ 14.000% due 11/15/08(b)(d) 43,890,625
9,915,000 BBB+ 8.000% due 11/15/25(b)(d) 10,745,381
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) 458,688
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
8 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Colorado -- 7.6% (continued)
$ 2,530,000 Aaa* Pre-Refunded-- Escrowed with U.S., state and local government
securities to 11/15/02 Call @ 102, 6.750% due 11/15/22(b)(d) $ 2,830,438
3,090,000 BBB+ 6.750% due 11/15/13(d) 3,356,512
9,505,000 BBB+ 6.750% due 11/15/22(b)(d) 10,265,400
Series D:
4,665,000 Aaa* Pre-Refunded-- Escrowed with U.S., state and local government
securities to 11/15/01 Call @ 100, 7.000% due 11/15/25(b)(d) 5,061,525
17,760,000 BBB+ 7.000% due 11/15/25(d) 18,759,000
E-470 Public Highway Authority, Colorado Revenue, Series A, MBIA-Insured:
1,120,000 AAA 5.000% due 9/1/15 1,125,600
2,600,000 AAA 5.000% due 9/1/16 2,600,000
12,350,000 AAA 5.000% due 9/1/21 12,103,000
1,000,000 AAA Fort Collins, CO Lease, COP, (Civic Center Facilities Project),
MBIA-Insured, 5.125% due 12/1/18 1,003,750
600,000 AAA Lakewood, CO COP, MBIA-Insured, 4.850% due 12/1/13 602,250
3,610,000 AAA Larimer County, CO COP, Court House & Jail Facilities, FSA-Insured,
5.000% due 12/15/12 3,709,275
- ------------------------------------------------------------------------------------------------------------------------------------
302,702,681
- ------------------------------------------------------------------------------------------------------------------------------------
Connecticut -- 0.6%
1,080,000 AAA Connecticut State Health & Educational Facilities Authority Revenue,
William H. Backus Hospital, AMBAC-Insured, 5.625% due 7/1/17 1,154,250
Connecticut State Housing Finance Authority:
Group Home Mortgage Program, AMBAC-Insured:
500,000 AAA 5.600% due 6/15/17 518,750
1,000,000 AAA 5.625% due 6/15/27 1,040,000
6,000,000 AA Housing Mortgage Finance Program, Series H-1, 5.100% due 5/15/17 6,007,500
Mashantucket Western Pequot Tribe, Connecticut Special Revenue:
3,000,000 Baa3* Series A, 5.500% due 9/1/28(e) 2,928,750
Series B:
1,000,000 Baa3* 5.550% due 9/1/08(e) 1,062,500
2,000,000 Baa3* 5.700% due 9/1/12(e) 2,117,500
6,500,000 Baa3* 5.750% due 9/1/18(b)(e) 6,605,625
New Canaan, CT GO:
400,000 Aaa* 4.750% due 2/1/18 396,500
400,000 Aaa* 4.750% due 2/1/19 395,500
- ------------------------------------------------------------------------------------------------------------------------------------
22,226,875
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia -- 1.0%
District of Columbia Revenue:
American Association for the Advancement of Science Revenue,
AMBAC-Insured:
3,000,000 AAA 5.250% due 1/1/16 3,075,000
13,500,000 AAA 5.125% due 1/1/27 13,415,625
Georgetown University, Series D, MBIA-Insured, Converted 5/1/98:
4,300,000 AAA 5.300% due 4/1/15 4,439,750
3,900,000 AAA 5.350% due 4/1/16 4,026,750
3,700,000 AAA 5.350% due 4/1/17 3,806,375
5,300,000 AAA 5.350% due 4/1/18 5,425,875
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 9
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
District of Columbia -- 1.0% (continued)
$ 4,000,000 AAA Washington, DC Convention Center Authority Dedicated Tax Revenue,
Sr. Lien, AMBAC-Insured, 5.250% due 10/1/14 $ 4,150,000
- ------------------------------------------------------------------------------------------------------------------------------------
38,339,375
- ------------------------------------------------------------------------------------------------------------------------------------
Florida -- 5.4%
Boynton Beach, FL Multi-Family Housing Revenue, Clipper Cove Apartments:
750,000 A+ 6.350% due 7/1/16 797,813
1,325,000 A+ 6.400% due 7/1/21 1,406,156
14,155,000 AAA Broward County, FL Airport System Revenue, Passenger Facility,
Conv. Lien, Series H-2, AMBAC-Insured, 4.750% due 10/1/23 13,535,719
Broward County, FL GO:
1,000,000 Aa2* 12.500% due 1/1/02 1,233,750
1,250,000 Aa2* 12.500% due 1/1/03 1,632,813
1,500,000 Aa2* 12.500% due 1/1/04 2,062,500
1,750,000 Aa2* 12.500% due 1/1/05 2,513,438
2,000,000 Aa2* 12.500% due 1/1/06 2,990,000
2,375,000 AAA Celebration, FL Community Development District, Special Assessment,
Series B, MBIA-Insured, 5.500% due 5/1/19 2,484,844
2,740,000 AAA Dade County, FL GO, MBIA-Insured, 5.125% due 10/1/21 2,743,425
34,750,000 AAA Dade County, FL Water and Sewer Revenue, FGIC-Insured,
5.250% due 10/1/21(b) 35,445,000
1,000,000 AAA First Florida Governmental Financing Commission Revenue,
AMBAC-Insured, 5.750% due 7/1/16 1,081,250
3,400,000 AAA Florida State Correctional Privatization Commission, COP, Youth
Detention Facility, Series C, AMBAC-Insured, 5.000% due 8/1/17 3,400,000
Florida State Department of Children & Families, COP,
(South Florida State Hospital Project), AMBAC-Insured:
2,375,000 AAA 4.900% due 7/1/13 2,410,625
2,495,000 AAA 4.950% due 7/1/14 2,523,069
2,615,000 AAA 5.000% due 7/1/15 2,637,881
2,750,000 AAA 5.000% due 7/1/16 2,760,313
Florida State Turnpike Authority, Turnpike Revenue, Department of
Transportation, Series A, FGIC-Insured:
4,040,000 AAA 5.000% due 7/1/13 4,141,000
5,180,000 AAA 5.000% due 7/1/14 5,270,650
8,985,000 AAA 5.000% due 7/1/15 9,086,080
7,350,000 AA Gainesville, FL Utilities Systems Revenue, Series A,
5.200% due 10/1/22 7,423,500
6,715,000 AAA Halifax, FL Hospital Medical Center Revenue, Refunding & Improvement,
Series A, MBIA-Insured, 5.250% due 10/1/15 6,933,237
6,190,000 AAA Hillsborough County, FL Capital Improvement Program Revenue,
(Mosi Project), Series A, MBIA-Insured, 5.125% due 7/1/22 6,220,950
Martin County, FL IDA, Indiantown Cogeneration:
10,000,000 BBB- Project A, 7.875% due 12/15/25(b)(d) 11,450,000
6,010,000 BBB- Project B, 8.050% due 12/15/25(d) 6,934,038
Miami-Dade County, FL:
School Board, Series C:
2,305,000 AAA FSA-Insured, 5.000% due 8/1/16 2,313,644
1,500,000 AAA 5.000% due 8/1/17 1,501,875
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
10 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Florida -- 5.4% (continued)
Special Obligation, (Courthouse Center Project),
Series B, AMBAC-Insured:
$ 2,610,000 AAA 4.750% due 4/1/18 $ 2,534,962
2,935,000 AAA 4.750% due 4/1/20 2,832,275
Orange County, FL Tourist Development, Tax Revenue, AMBAC-Insured:
Series A:
7,460,000 AAA 4.750% due 10/1/21 7,161,600
15,500,000 AAA 4.750% due 10/1/24 14,744,375
1,000,000 AAA Series B, 4.750% due 10/1/23 956,250
6,500,000 Aaa* Polk County, FL Utility Systems Revenue, Series A, FGIC-Insured,
5.250% due 10/1/17 6,670,625
Reedy Creek, FL Improvement District Revenue:
8,200,000 AAA Series C, AMBAC-Insured, 5.000% due 6/1/19 8,189,750
3,830,000 AAA Series 1, MBIA-Insured, 5.000% due 10/1/19 3,825,212
4,000,000 AAA Seminole County, FL School Board, COP, Series A, AMBAC-Insured,
5.000% due 7/1/17 4,005,000
9,800,000 A-1+ St. Lucie County, FL PCR, (Florida Power & Light Co. Project),
3.200% due 1/1/26(f) 9,800,000
Tampa, FL Revenue Bonds, (Florida Aquarium Inc. Project),
(Pre-Refunded -- Escrowed with U.S. government securities
to 5/1/02 Call @ 102):
2,700,000 NR 7.550% due 5/1/12(c) 3,064,500
3,000,000 NR 7.750% due 5/1/27(b)(c) 3,423,750
2,180,000 AAA Village Center, FL Community Development District, Recreational
Revenue, Series A, MBIA-Insured, 5.850% due 11/1/16 2,482,475
- ------------------------------------------------------------------------------------------------------------------------------------
212,624,344
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia -- 0.0%
580,000 AA- Brunswick, GA Housing Authority, Multi-Family Housing Revenue,
Cypress Mill, FHA-Insured, 9.750% due 8/1/26 622,775
- ------------------------------------------------------------------------------------------------------------------------------------
Hawaii -- 0.6%
Hawaii State Department of Budget & Finance,
Special Purpose Revenue, Kasier Permanente, Series A:
12,045,000 A 5.100% due 3/1/14 11,954,662
4,000,000 A 5.150% due 3/1/15 3,960,000
3,000,000 AAA Hawaii State GO, Series CP, FGIC-Insured, 5.000% due 10/1/17 2,988,750
Honolulu, HI City & County Wastewater System Revenue,
2nd Board Resolution, Jr. Series, FGIC-Insured:
1,465,000 AAA 5.250% due 7/1/15 1,505,288
3,000,000 AAA 5.250% due 7/1/16 3,082,500
1,000,000 AAA 5.250% due 7/1/17 1,020,000
1,000,000 AAA 5.250% due 7/1/18 1,021,250
- ------------------------------------------------------------------------------------------------------------------------------------
25,532,450
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois -- 2.8%
2,000,000 AAA Chicago, IL GO, Series 1993, FGIC-Insured, 5.375% due 1/1/13 2,082,500
Chicago, IL O'Hare International Airport:
12,500,000 AAA Revenue, Second Lien, Series C, MBIA-Insured,
5.000% due 1/1/18 12,296,875
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 11
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Illinois -- 2.8% (continued)
$ 7,200,000 Baa2* Special Facilities Revenue, (United Airlines Project),
Series A, 5.350% due 9/1/16 $ 7,173,000
2,000,000 AAA Chicago, IL State University Revenue, Auxiliary Facilities System,
MBIA-Insured, 5.000% due 12/1/18 1,967,500
3,000,000 AAA Eastern Illinois University Revenue, Auxiliary Facilities Systems,
AMBAC-Insured, 5.000% due 4/1/16 2,981,250
5,295,000 AAA Illinois Developmental Finance Authority, Hospital Revenue, Sisters of
St. Francis Health Service, MBIA-Insured, 5.375% due 11/1/27 5,381,044
11,800,000 A-1+ Illinois Developmental Finance Authority Revenue, Provena Health,
Series B, MBIA-Insured, 3.300% due 5/1/28(f) 11,800,000
Illinois Health Facilities Authority Revenue:
Alexian Brothers Health System, FSA-Insured:
12,000,000 AAA 5.000% due 1/1/19 11,700,000
14,000,000 AAA 5.125% due 1/1/28 13,702,500
2,000,000 AAA Edward Obligation Group, Series A, AMBAC-Insured,
5.250% due 2/15/17 2,025,000
6,680,000 Aaa* Memorial Health Systems, MBIA-Insured, 5.250% due 10/1/18 6,746,800
500,000 Aaa* Rockford Health Systems, AMBAC-Insured,
5.100% due 8/15/11 517,500
Rush, Presbyterian, St. Lukes, Series A, MBIA-Insured:
2,500,000 AAA 5.250% due 11/15/14 2,568,750
1,000,000 AAA 5.250% due 11/15/16 1,016,250
3,000,000 AAA Sherman Health Systems, AMBAC-Insured, 5.250% due 8/1/17 3,037,500
3,790,000 AAA Illinois State Civic Center, Special State Obligation, AMBAC-Insured,
5.000% due 12/15/13 3,842,112
3,000,000 AAA Illinois State COP, Department of Central Management Services,
Public Aid Building, MBIA-Insured, 5.650% due 7/1/17 3,180,000
Illinois State GO, FGIC-Insured:
3,300,000 AAA 5.375% due 2/1/19 3,345,375
14,375,000 AAA 5.250% due 12/1/20 14,428,906
2,000,000 AAA Springfield, IL GO, Series C, MBIA-Insured, 5.375% due 12/1/21 2,042,500
1,000,000 AAA University of Illinois Revenue Bonds, Auxiliary Facilities Systems,
MBIA-Insured, 5.375% due 10/1/13 1,045,000
- ------------------------------------------------------------------------------------------------------------------------------------
112,880,362
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana -- 1.0%
4,700,000 AAA Avon, IN Community School Building Corp., First Mortgage,
AMBAC-Insured, 5.250% due 1/1/22 4,747,000
6,310,000 AAA Delaware County, IN Hospital Authority,
Cardinal Health Systems, AMBAC-Insured, 5.000% due 8/1/16 6,286,337
3,005,000 AAA Indiana Bond Bank, State Revenue, Guarantee-State Revolving Fund,
(Project A), 6.250% due 2/1/09 3,290,475
Indiana Health Facilities, Financing Authority Hospital Revenue,
Riverview Hospital:
255,000 Baa1* 6.200% due 8/1/99 257,769
305,000 Baa1* 6.500% due 8/1/01 322,538
200,000 Baa1* 6.600% due 8/1/02 215,500
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 2,733,750
2,775,000 AAA 5.250% due 1/1/15 2,820,094
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
12 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Indiana -- 1.0% (continued)
$ 2,000,000 A Mishawaka, IN School City, Multi-School Building Corporation,
5.500% due 7/15/15 $ 2,075,000
Northwest Allen County, IN Middle School Building Corp,
First Mortgage, MBIA-Insured:
715,000 AAA 4.800% due 1/15/13 713,212
245,000 AAA 4.800% due 7/15/13 244,388
535,000 AAA 4.900% due 7/15/14 537,675
15,000,000 AAA Rockport, IN PCR, (Michigan Power Co. Project), Series A,
AMBAC-Insured, 6.550% due 6/1/25(b) 16,631,250
- ------------------------------------------------------------------------------------------------------------------------------------
40,874,988
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa -- 0.1%
4,000,000 AAA Iowa Finance Authority, Hospital Facilities Revenue, Iowa Health System,
Series A, MBIA-Insured, 5.125% due 7/1/20 4,020,000
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas -- 0.2%
Kansas State DFA Revenue, Public Water Supply Revolving Loan, Series 2:
1,110,000 AA-++ 5.250% due 4/1/15 1,133,588
1,250,000 AA-++ 5.000% due 4/1/16 1,246,875
1,000,000 AA-++ 4.750% due 4/1/17 966,250
3,000,000 AAA Topeka, KS Public Building Commission, (10th & Jackson Projects),
MBIA-Insured, 4.875% due 6/1/19 2,943,750
- ------------------------------------------------------------------------------------------------------------------------------------
6,290,463
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana -- 0.4%
8,500,000 AAA Louisiana Local Government, Environment Facilities, Community
Development Authority Revenue, Capital Projects & Equipment
Acquisition, AMBAC-Insured, 4.500% due 12/1/18 7,926,250
Orleans Parish, LA Parishwide School District, Series A, FGIC-Insured:
1,680,000 Aaa* 5.125% due 9/1/14 1,722,000
1,775,000 Aaa* 5.125% due 9/1/15 1,806,062
3,865,000 AAA Terrebonne Parish, LA Hospital Service District No. 1, Hospital Revenue,
(Terrebonne General Medical Center Project), AMBAC-Insured,
5.350% due 4/1/17 3,956,794
- ------------------------------------------------------------------------------------------------------------------------------------
15,411,106
- ------------------------------------------------------------------------------------------------------------------------------------
Maine -- 0.2%
6,000,000 AAA Maine Municipal Bond Bank Revenue, Series C, 5.350% due 11/1/18 6,127,500
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland -- 1.3%
Baltimore, MD GO, Series A, FGIC-Insured:
2,585,000 AAA 5.625% due 10/15/14 2,801,493
2,745,000 AAA 5.750% due 10/15/15 3,108,712
1,165,000 AAA 5.750% due 10/15/16 1,319,363
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) 2,147,500
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 1,452,344
Maryland State Community Development Administration,
Department of Housing & Community Development:
750,000 Aa2* Series C, 5.550% due 7/1/27(d) 763,125
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 13
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Maryland -- 1.3% (continued)
$ 10,000,000 Aa2* Single Family Program, 2nd Series, 5.000% due 4/1/17 $ 9,900,000
6,060,000 Aa2* Residential, Series D, 5.150% due 3/1/18(d) 6,022,125
56,000,000 NR Maryland State Energy Financing Administration, Solid Waste Disposal
Revenue, (Hagerstown Project), 9.000% due 10/15/16(b)(d)(g) 15,120,000
5,825,000 A Maryland State Health & Higher Educational Facilities Authority Revenue,
Kaiser Permanente, Series A, 5.375% due 7/1/15 6,087,125
1,750,000 Aa2* Montgomery County, MD Housing Opportunities Commission,
Single-Family Mortgage Revenue, Series A, 5.750% due 7/1/13 1,839,688
- ------------------------------------------------------------------------------------------------------------------------------------
50,561,475
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts -- 4.8%
2,200,000 AAA Holyoke, MA GO, Series A, FSA-Insured, 5.500% due 6/15/16 2,310,000
Massachusetts Bay Transportation Authority, Series B,
General Transportation System:
AMBAC-Insured:
20,380,000 AAA 5.375% due 3/1/20 20,736,650
12,790,000 AAA 5.375% due 3/1/25 13,013,825
FSA-Insured:
15,000,000 AAA 5.250% due 3/1/20 15,168,750
32,200,000 AAA 5.250% due 3/1/26 32,562,250
Massachusetts Municipal Wholesale Electric Co.,
Power Supply System Revenue:
Series A, AMBAC-Insured:
11,900,000 AAA 5.000% due 7/1/14 12,004,125
2,950,000 AAA 5.000% due 7/1/17 2,938,938
9,435,000 AAA Series B, MBIA-Insured, 5.000% due 7/1/17 9,399,619
4,000,000 AA- Massachusetts State GO, Construction Lien, Series C,
5.250% due 8/1/16 4,135,000
Massachusetts State Health and Educational Facilities Authority Revenue:
2,000,000 A Hebrew Rehabilitation Center for Aged, Series C, 5.250% due 7/1/17 2,002,500
1,295,000 AAA University of Massachusetts Memorial, Series A, AMBAC-Insured,
5.250% due 7/1/14 1,340,325
9,500,000 AAA Massachusetts State Housing Finance Agency, Housing Development
Series A, MBIA-Insured, 5.300% due 12/1/17(b) 9,678,125
10,760,873 NR Massachusetts State Industrial Finance Agency Revenue, Solid Waste
Disposal Revenue, Massachusetts, Sr. Lien, Massachusetts
Paper Co. Project, 8.500% due 11/1/12 10,545,656
5,000,000 AA Massachusetts State Special Obligation Revenue, Series A,
5.000% due 6/1/17 4,968,750
Massachusetts State Water Resources Authority:
27,785,000 AAA MBIA-Insured, 5.000% due 12/1/25 27,090,375
Series B:
3,000,000 A1* 5.500% due 3/1/17 3,078,750
11,635,000 AAA MBIA-Insured, 4.750% due 12/1/21 11,096,880
8,000,000 AAA Series C, MBIA-Insured, 5.250% due 12/1/20 8,070,000
- ------------------------------------------------------------------------------------------------------------------------------------
190,140,518
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan -- 6.1%
2,000,000 AAA Battle Creek, MI Downtown Development Authority, MBIA-Insured,
5.000% due 5/1/17 1,985,000
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
14 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Michigan -- 6.1% (continued)
Caledonia, MI Community Schools, FGIC-Insured:
$ 1,790,000 AAA 4.875% due 5/1/19 $ 1,740,775
4,095,000 AAA 4.750% due 5/1/22 3,895,369
17,750,000 AAA Detroit & Wayne Counties, MI Stadium Authority Revenue, FGIC-Insured,
5.250% due 2/1/27 17,860,938
6,000,000 AAA Ferris State University, MI Revenue, AMBAC-Insured,
5.000% due 10/1/18 5,910,000
2,090,000 AAA Grand Valley, MI State University Revenue, MBIA-Insured,
5.250% due 10/1/17 2,157,925
1,410,000 AAA Holly, MI Area School District, FGIC-Insured, 4.750% due 5/1/25 1,332,450
2,140,000 AAA Ingham County, MI Building Authority, AMBAC-Insured,
5.000% due 11/1/16 2,131,975
1,200,000 AAA Leslie, MI Public Schools, Ingham & Jackson Counties GO, FGIC-Insured,
5.000% due 5/1/18 1,189,500
2,000,000 AAA Lincoln, MI GO, Consolidated School District, FSA-Insured,
5.000% due 5/1/18 1,982,500
22,625,000 AA+ Michigan Municipal Bond Authority, State Revolving Fund Revenue,
5.125% due 10/1/20 22,540,156
39,340,000 AAA Michigan Public Power Agency Revenue, (Belle River Project),
Series A, MBIA-Insured, 5.250% due 1/1/18 39,733,400
Michigan State Building Authority Revenue, Facilities Program, Series 1:
11,825,000 AA 5.125% due 10/15/16 11,913,688
1,000,000 AA 4.750% due 10/15/17 962,500
Michigan State Hospital Finance Authority Revenue:
5,000,000 AAA Botsford Obligation, Series A, MBIA-Insured, 5.000% due 2/15/18 4,887,500
1,000,000 AAA Mercy Health Services, AMBAC-Insured, Series R,
5.375% due 8/15/16 1,028,750
8,145,000 AAA Michigan State Housing Development Authority, Rental Housing Revenue,
Series C, MBIA-Insured, 5.050% due 10/1/15(d) 8,104,275
Michigan State Housing Representatives, COP, AMBAC-Insured:
5,145,000 AAA 5.000% due 8/15/16 5,061,394
4,715,000 AAA 5.500% due 8/15/15 4,921,280
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) 8,100,000
3,000,000 NR 7.000% due 7/1/27(d) 3,037,500
12,000,000 NR Series B, 6.800% due 7/1/13(d) 12,150,000
56,625,000 NR Midland County, MI Economic Development Corp., PCR,
Subordinated Limited Obligation, Series B, 9.500% due 7/23/09(b)(d) 60,871,875
7,500,000 Aa2* Oakland County, MI Economic Development Corp. Ltd., Obligation
Revenue, Cranbrook Educational Community, 5.000% due 11/1/17 7,453,125
2,215,000 AAA Redford, MI Unified School District GO, AMBAC-Insured,
5.125% due 5/1/18 2,223,306
4,120,000 AAA Richmond, MI Community School District, FGIC-Insured,
4.750% due 5/1/19 3,960,350
4,955,000 AA Royal Oak, MI Hospital Finance Authority, Hospital Revenue,
William Beaumont Hospital, 5.250% due 1/1/20 4,936,419
1,000,000 AAA South Lyon, MI Community Schools, FGIC-Insured, 5.125% due 5/1/16 1,010,000
- ------------------------------------------------------------------------------------------------------------------------------------
243,081,950
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 15
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Minnesota -- 0.3%
Hennepin County, MN Lease Revenue, COP:
$ 2,955,000 Aa1 5.000% due 11/15/14 $ 2,991,938
3,105,000 Aa1 5.000% due 11/15/15 3,124,406
5,000,000 AA+ North St. Paul-Maplewood, MN ISD, No. 622,
Series A, 5.125% due 2/1/20 5,056,250
- ------------------------------------------------------------------------------------------------------------------------------------
11,172,594
- ------------------------------------------------------------------------------------------------------------------------------------
Mississipi -- 0.1%
1,000,000 AAA Harrison County, MS School District, State Aid Capital Improvement,
FSA-Insured, 5.000% due 8/1/15 1,005,000
1,100,000 P-1* Jackson County, MS PCR, (Chevron U.S.A. Inc. Project),
3.200% due 6/1/23(f) 1,100,000
Jackson, MS Municipal Airport Authority, Airport Revenue,
Series A, AMBAC-Insured:
385,000 AAA 5.000% due 12/1/12 393,181
405,000 AAA 5.100% due 12/1/13 413,606
425,000 AAA 5.125% due 12/1/14 432,437
450,000 AAA 5.125% due 12/1/15 455,625
470,000 AAA 5.125% due 12/1/16 474,113
750,000 AAA 5.125% due 12/1/21 749,063
- ------------------------------------------------------------------------------------------------------------------------------------
5,023,025
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri -- 1.4%
4,750,000 AAA Fenton, MO COP, (Capital Improvements Project),
MBIA-Insured, 5.125% due 9/1/17 4,791,563
24,635,000 AAA Kansas City, MO Municipal Assistance Corp., Leasehold Revenue,
H. Roe Bartle Convention Center, Series A, MBIA-Insured,
5.000% due 4/15/20 24,573,412
Missouri State Environmental Improvement & Energy Resources Authority,
PCR, State Revolving Fund:
3,380,000 Aa1* Series A, 5.000% due 1/1/19 3,295,500
Series E:
1,040,000 Aa1* 5.200% due 1/1/10 1,093,300
2,235,000 Aa1* 5.250% due 1/1/19 2,243,380
1,750,000 Aaa* Missouri State Health & Educational Facilities Authority Revenue,
St. Louis University School, AMBAC-Insured, 4.750% due 10/1/24 1,662,500
Poplar Bluff, MO Public Building Corp., Leasehold Revenue, MBIA-Insured:
1,025,000 Aaa* 5.000% due 9/1/13 1,045,500
4,475,000 Aaa* 5.100% due 9/1/18 4,458,219
St. Louis, MO Board of Education, GO, Direct Deposit Program,
Series B, FGIC-Insured:
3,235,000 AAA 5.000% due 4/1/15 3,251,175
3,790,000 AAA 5.000% due 4/1/17 3,766,313
4,900,000 AAA St. Louis, MO Regional Convention & Sports Complex Authority, Series C,
AMBAC-Insured, 5.300% due 8/15/20 5,010,250
- ------------------------------------------------------------------------------------------------------------------------------------
55,191,112
- ------------------------------------------------------------------------------------------------------------------------------------
Montana -- 0.8%
33,400,000 NR Montana State Board of Investment, Resource Recovery Revenue,
(Yellowstone Energy LP Project), 7.000% due 12/31/19(b)(d) 32,314,500
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
16 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Nebraska -- 0.4%
$ 14,300,000 AAA Nebraska Public Power District, Electric System Revenue,
Series A, MBIA-Insured, 5.250% due 1/1/28(b) $15,408,250
1,590,000 AAA Omaha, NE Airport Authority, Airport Revenue, 5.1250% due 1/1/14 1,623,788
- ------------------------------------------------------------------------------------------------------------------------------------
17,032,038
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada -- 0.3%
Clark County, NV GO, Series A, FGIC-Insured:
6,035,000 AAA 5.000% due 6/1/15 6,065,175
6,340,000 AAA 5.000% due 6/1/16 6,340,000
- ------------------------------------------------------------------------------------------------------------------------------------
12,405,175
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey -- 1.8%
5,000,000 AAA Casino Reinvestment Development Authority, NJ Parking Fee Revenue,
Series A, FSA-Insured, 5.250% due 10/1/16 5,143,750
2,000,000 AAA Hamilton Township, Atlantic County, NJ Municipal Utilities Authority,
FGIC-Insured, 5.000% due 8/15/17 2,002,500
Mercer County, NJ Improvement Authority Revenue,
(County Golf Course Project), FGIC-Insured:
1,405,000 AAA 5.000% due 12/1/15 1,422,563
750,000 AAA 5.000% due 12/1/18 750,938
Middlesex County, NJ COP, MBIA-Insured:
1,280,000 AAA 5.000% due 6/15/12 1,328,000
1,345,000 AAA 5.050% due 6/15/13 1,388,713
1,410,000 AAA 5.100% due 6/15/14 1,452,300
Monmouth County, NJ Improvement Authority Revenue,
Governmental Loan, AMBAC-Insured:
1,000,000 AAA 5.050% due 12/1/14 1,025,000
500,000 AAA 5.150% due 12/1/17 511,250
New Brunswick, NJ Housing Authority, Lease Revenue,
Rutgers University, FGIC-Insured:
3,800,000 AAA 4.750% due 7/1/18 3,695,500
4,000,000 AAA 4.625% due 7/1/24 3,755,000
2,500,000 Aaa* New Jersey EDA Revenue, (Hillcrest Health Service Systems Project),
AMBAC-Insured, 5.375 due 1/1/16 2,603,125
New Jersey Health Care Facilities Financing Authority Revenue:
Barnert Hospital, MBIA-Insured:
495,000 AAA 4.750% due 2/1/15 483,863
685,000 AAA 4.750% due 8/1/15 670,444
575,000 AAA 4.750% due 8/1/16 559,906
1,920,000 AAA 4.750% due 8/1/19 1,852,800
3,225,000 AAA Cathedral Health Services, MBIA-Insured 5.200% due 8/1/15 3,309,655
Catholic Health East Health System:
2,095,000 AAA 4.750% due 11/15/19 2,019,056
2,000,000 AAA 4.750% due 11/15/21 1,922,500
2,500,000 BBB Rahway Hospital Obligation Group, 5.000% due 7/1/08 2,537,500
New Jersey State, GO:
22,000,000 AA+ 4.500% due 2/1/17 20,982,500
13,805,000 AA+ 4.500% due 2/1/18 13,080,237
- ------------------------------------------------------------------------------------------------------------------------------------
72,497,100
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 17
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
New Mexico -- 0.2%
$ 585,000 AAA New Mexico, Mortgage Finance Authority, Single Family Mortgage,
Series A-3, FNMA & GNMA-Collateralized, 5.050% due 9/1/17 $ 585,000
2,250,000 AAA Rio Rancho, NM Water & Wastewater System Revenue, AMBAC-Insured,
4.750% due 5/15/22 2,148,750
3,295,000 Aaa* Santa Fe, NM Single-Family Mortgage Revenue,
FNMA & GNMA-Collateralized, 6.300% due 11/1/28(d) 3,443,275
- ------------------------------------------------------------------------------------------------------------------------------------
6,177,025
- ------------------------------------------------------------------------------------------------------------------------------------
New York -- 9.9%
1,710,000 AA Housing Corp. of New York Revenue, 5.500% due 11/1/20 1,729,238
Long Island Power Authority, NY Electrical Systems Revenue:
Series A, FSA-Insured:
33,000,000 AAA 5.000% due 12/1/15 33,412,500
56,120,000 AAA 5.125% due 12/1/16 57,031,950
9,185,000 AAA 5.300% due 12/1/19 9,437,587
1,700,000 A-1+ Sub-Series 7, 3.200% due 4/1/25(f) 1,700,000
Metropolitan Transportation Authority of New York:
6,600,000 AAA Dedicated Tax Fund, Series A, FGIC-Insured, 4.750% due 4/1/28 6,253,500
Transit Facilities Revenue:
4,700,000 AAA Series B-2, MBIA-Insured, 5.000% due 7/1/17 4,705,875
5,550,000 AAA Series C, FSA-Insured, 4.750% due 7/1/16 5,432,063
1,100,000 AAA Municipal Assistance Corp. for City of Troy, NY Series A,
MBIA-Insured, 5.000% due 1/15/16 1,102,750
2,695,000 AAA New York, NY Education Construction Fund Revenue, AMBAC-Insured,
5.500% due 4/1/16 2,836,488
1,280,000 AAA New York, NY IDA, Civic Facilities Revenue, (Trinity Episcopal School
Corp. Project ), MBIA-Insured, 5.250% due 6/15/17 1,307,200
New York, NY Municipal Water Finance Authority,
Water & Sewer Systems Revenue:
2,500,000 AAA Series A, FGIC-Insured, 4.750% due 6/15/31 2,362,500
11,950,000 AAA Series B, MBIA-Insured, 5.375% due 6/15/19 12,203,937
New York, NY Transitional Finance Authority Revenue,
Future Tax Secured:
Series A:
6,450,000 AA 4.750% due 11/15/16 6,296,813
2,310,000 AA 5.000% due 8/15/17 2,312,888
Series B:
13,915,000 AA 4.750% due 11/1/16 13,584,518
15,515,000 AA 4.750% due 11/1/17 15,165,912
10,000,000 AA 4.750% due 11/1/23 9,537,500
Series C, FGIC-Insured:
2,530,000 AAA 5.000% due 5/1/16 2,545,813
9,165,000 AAA 5.000% due 5/1/17 9,176,455
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) 6,262,500
16,500,000 AAA 5.000% due 7/1/16 16,603,125
5,000,000 AAA Consolidated Third General Resolution, Series 2, MBIA-Insured,
6.250% due 7/1/19 5,668,750
</TABLE>
- --------------------------------------------------------------------------------
18 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
New York -- 9.9% (continued)
$ 1,000,000 Aaa* Culinary Institute of America, MBIA-Insured, 5.000% due 7/1/17 $ 1,001,250
Iona College, MBIA-Insured:
485,000 AAA 6.600% due 7/1/07 523,194
420,000 AAA 6.600% due 7/1/08 452,025
555,000 AAA 6.600% due 7/1/09 596,625
540,000 AAA 6.700% due 7/1/10 581,850
Mental Health Services Facilities Improvement Revenue, FSA-Insured:
9,000,000 AAA Series C, 5.125% due 8/15/17 9,067,500
2,000,000 AAA Series D, 5.125% due 8/15/17 2,015,000
20,765,000 AAA Montefiore Medical Center, AMBAC-Insured, 5.250% due 2/1/15 21,387,950
4,500,000 AAA Municipal Health Facilities Improvement Program, Series A,
FSA-Insured, 5.500% due 5/15/24 4,651,875
5,000,000 AAA North General Hospital, Series G, AMBAC-Insured, 5.200% due 2/15/15 5,118,750
1,000,000 AAA State University Athletic Facilities, MBIA-Insured, 5.250% due 7/1/18 1,022,500
State University Educational Facilities:
Series A, MBIA-Insured:
6,195,000 AAA 5.000% due 5/15/15 6,272,437
7,030,000 AAA 5.000% due 5/15/16 7,073,937
13,635,000 AAA 5.000% due 5/15/17 13,652,043
5,160,000 A- 5.000% due 5/15/13 5,230,950
University of Rochester, Series A, MBIA-Insured:
3,915,000 AAA 5.000% due 7/1/16 3,939,469
2,000,000 AAA 5.000% due 7/1/17 2,002,500
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 7,000,140
New York State Environmental Facilities Corp.,
State Clean Water & Drinking Water, Revolving Funds:
5,520,000 Aa1* Series C, 5.000% due 6/15/16 5,561,400
12,125,000 Aa1* Series F, 5.000% due 6/15/15 12,231,094
2,000,000 A New York State GO, 12.000% due 11/15/03 2,697,500
6,000,000 AAA New York State Medical Care Facilities Finance Agency Revenue,
FGIC-Insured, 5.250% due 2/15/19 6,075,000
13,895,000 Aa2* New York State Mortgage Agency Revenue, Homeowner Mortgage,
Series 72, 5.200% due 10/1/16 14,033,950
New York State Urban Development Corp. Revenue,
Correctional Capital Facilities:
4,000,000 AAA AMBAC-Insured, 5.250% due 1/1/18 4,060,000
3,250,000 AAA Series A, FSA-Insured, 5.250% due 1/1/21 3,294,688
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 1,035,000
Triborough Bridge & Tunnel Authority of New York,
General Purpose Revenue Bonds, Series A:
10,000,000 Aa2* 5.200% due 1/1/20 10,087,500
11,000,000 Aa3* 5.000% due 1/1/24 10,876,250
Yonkers, NY GO, FGIC-Insured:
1,125,000 AAA Series A, 5.000% due 9/1/14 1,139,063
2,000,000 AAA Series B, 5.000% due 9/1/17 1,987,500
- ------------------------------------------------------------------------------------------------------------------------------------
391,338,802
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 19
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
North Carolina -- 2.3%
$ 4,500,000 A2* Carteret County, NC COP, (Elementary School Project),
6.500% due 2/1/07 $ 4,876,875
1,000,000 AAA Centennial Authority, NC Hotel Tax Revenue, (Arena Project),
FSA-Insured, 5.125% due 9/1/15 1,026,250
1,200,000 AAA Dare County, NC Utility System Revenue, Series A, MBIA-Insured,
5.250% due 6/1/16 1,228,500
1,750,000 AAA New Hanover County, NC COP, (New Hanover Project), MBIA-Insured,
5.000% due 12/1/17 1,734,688
3,000,000 AA North Carolina Housing Finance Agency, Home Ownership , Series A-1,
5.350% due 1/1/17(d) 3,030,000
North Carolina Medical Care Commission:
Health Care Facilities Revenue:
3,780,000 AA Carolina Medicorp Project, 5.125% due 5/1/16 3,789,450
655,000 AA Novant Health Project, Series B, 5.000% due 10/1/16 650,906
Hospital Revenue:
2,000,000 A+ Gaston Health Care, 5.000% due 12/15/12 2,005,000
Pitt County Memorial Hospital, Series A:
5,500,000 AA- 5.000% due 12/1/18 5,396,875
5,000,000 AA- 4.750% due 12/1/28 4,625,000
North Carolina Municipal Power Agency No.1, Catawaba Electric Revenue,
Series A:
16,755,000 AAA AMBAC-Insured, 5.375% due 1/1/20(b) 17,215,762
MBIA-Insured:
8,860,000 AAA 5.125% due 1/1/15 8,959,675
18,850,000 AAA 5.125% due 1/1/17 19,038,500
15,000,000 AAA 5.125% due 1/1/17 15,075,000
3,000,000 AA+ Raleigh, NC Combined Enterprise System Revenue, 4.750% due 3/1/19 2,857,500
1,000,000 AAA Sampson Area Development Corp., Installment Payment Revenue,
MBIA-Insured, 4.750% due 6/1/19 961,250
- ------------------------------------------------------------------------------------------------------------------------------------
92,471,231
- ------------------------------------------------------------------------------------------------------------------------------------
North Dakota -- 0.1%
1,005,000 AAA Bismarck, ND Health Care Facilities Revenue, St. Alexius Medical Center,
Series A, FSA-Insured, 5.000% due 7/1/16 998,719
1,000,000 AAA Burleigh County, ND Health Care Revenue, Medcenter One Inc.,
MBIA-Insured, 5.250% due 5/1/13 1,033,750
1,000,000 AAA Fargo, ND Water Revenue, MBIA-Insured, 5.125% due 1/1/14 1,017,500
- ------------------------------------------------------------------------------------------------------------------------------------
3,049,969
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio -- 3.7%
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) 15,215,200
18,000,000 AAA 5.375% due 1/1/22 18,472,500
3,000,000 Aaa* Akron-Summit County, OH Public Library GO, Series A, FGIC-Insured
5.000% due 12/1/15 3,026,250
8,375,000 AAA Akron, OH EDA Revenue, MBIA-Insured, 5.000% due 12/1/18 8,385,469
1,000,000 Aaa* Brecksville-Broadview Heights, OH City School District, FGIC-Insured,
6.500% due 12/1/16 1,146,250
12,950,000 AAA Butler County, OH Transportation Improvement District, Series A,
FSA-Insured, 5.125% due 4/1/17 13,144,250
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
20 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Ohio -- 3.7% (continued)
Clermont County, OH Hospital Facilities Revenue,
Mercy Health Systems, Series B, AMBAC-Insured:
$ 3,415,000 AAA 5.625% due 9/1/16 $ 3,666,855
1,000,000 AAA 5.625% due 9/1/21 1,066,250
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 1,099,506
1,000,000 AAA 5.625% due 1/1/13 1,081,250
15,000 AAA 5.700% due 1/1/14 15,244
3,000,000 AAA Cleveland-Cuyahoga County, OH Port Authority Revenue,
Rock & Roll Hall of Fame, AMBAC-Insured, 5.400% due 12/1/15 3,138,750
Cuyahoga County, OH Hospital Revenue, Refunding and Improvement:
(Metrohealth System Project), MBIA-Insured:
1,000,000 AAA 5.375% due 2/15/12 1,065,000
1,000,000 AAA 5.625% due 2/15/17 1,075,000
Series A:
5,180,000 AAA 5.500% due 2/15/12(b) 5,633,250
5,050,000 AAA 5.125% due 2/15/13(b) 5,201,500
6,680,000 AAA 5.125% due 2/15/15 6,796,900
3,025,000 AAA 5.125% due 2/15/16 3,066,594
4,890,000 AAA 5.125% due 2/15/17 4,938,900
13,935,000 AAA 5.250% due 2/15/19 14,213,700
4,065,000 AAA Franklin County, OH Convention Facilities Authority, Tax & Lease Revenue
Anticipation Bonds, MBIA-Insured, 5.000% due 12/1/17 4,080,244
1,520,000 Aa3* Lakewood, OH GO, 5.125% due 12/1/17 1,544,700
3,000,000 Aaa* Medina, OH City School District, GO, FGIC-Insured, 5.000% due 12/1/18 2,973,750
Ohio State Building Authority, State Facilities:
2,725,000 AA- (Administration Building Fund Projects,) Series A, 5.000% due 10/1/15 2,748,844
(Adult Correctional Buildings Funds Projects), Series A:
5,675,000 AA- 5.000% due 4/1/15 5,724,655
5,010,000 AA- 5.000% due 4/1/16 5,028,787
1,500,000 NR Ohio State Solid Waste Revenue, Republic Engineered Steels Inc.,
9.000% due 6/1/21(d) 1,665,000
2,670,000 AAA Ohio State Water Development Authority Revenue, Water Development,
Fresh Water Series, FSA-Insured, 5.000% due 12/1/16 2,693,363
2,955,000 AAA Parma, OH GO, Series A, FGIC-Insured, 5.000% due 12/1/18 2,929,144
1,585,000 AAA Twinsburg, OH Local School District, FGIC-Insured, 5.900% due 12/1/21 1,723,688
University of Akron, OH General Receipts, AMBAC-Insured:
1,000,000 AAA 5.125% due 1/1/11 1,043,750
1,000,000 AAA 5.125% due 1/1/12 1,040,000
2,525,000 AAA 5.250% due 1/1/22 2,556,563
- ------------------------------------------------------------------------------------------------------------------------------------
147,201,106
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma -- 0.7%
Oklahoma State Turnpike Authority, Turnpike Revenue,
Series A, FGIC-Insured:
10,545,000 AAA 5.000% due 1/1/14 10,887,712
12,140,000 AAA 5.000% due 1/1/15 12,458,675
1,975,000 AA Tulsa, OK Industrial Authority, Hospital Revenue, (St. John's Medical
Center Project), 6.250% due 2/15/17 2,130,530
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 21
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Oklahoma -- 0.7% (continued)
$ 1,000,000 AA- Woods County, OK IDA, Revenue Refunding, (Cargill Inc. Project),
6.250% due 10/1/14 $ 1,088,750
- ------------------------------------------------------------------------------------------------------------------------------------
26,565,667
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon -- 0.9%
2,500,000 A Clackamas County, OR Hospital Facilities Authority Revenue,
Kaiser Permanente, Series A, 5.375% due 4/1/14 2,587,500
Clackamas & Washington Counties, OR School District No. 3,
FGIC-Insured:
2,860,000 AAA 5.000% due 6/1/15 2,885,025
3,555,000 AAA 5.000% due 6/1/16 3,568,331
1,685,000 AAA 5.000% due 6/1/17 1,682,894
Oregon State Department of Administrative Services Corp., Series A,
AMBAC-Insured:
7,155,000 AAA 4.875% due 5/1/16 7,137,113
6,505,000 AAA 4.875% due 5/1/17 6,448,081
4,000,000 AAA 4.875% due 5/1/18 3,945,000
6,950,000 AA Oregon State GO, Series B, 6.375% due 8/1/24(b) 7,627,625
- ------------------------------------------------------------------------------------------------------------------------------------
35,881,569
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania -- 3.2%
Allegheny County, PA Airport Revenue, Pittsburgh International Airport,
Series B, MBIA-Insured:
5,000,000 AAA 5.000% due 1/1/17 4,968,750
6,500,000 AAA 5.000% due 1/1/19 6,418,750
2,700,000 AA Delaware County, PA GO, 5.125% due 10/1/16 2,757,375
Delaware County, PA Interboro School District GO, MBIA-Insured:
985,000 AAA 5.150% due 8/15/13 1,012,088
935,000 AAA 5.200% due 8/15/14 959,544
1,150,000 AAA 5.300% due 8/15/17 1,171,563
1,600,000 AAA 5.375% due 8/15/22 1,632,000
Fairview, PA School District GO, FGIC-Insured:
2,620,000 AAA 5.200% due 2/15/15 2,682,225
3,345,000 AAA 5.000% due 2/15/18 3,328,275
Gettysburg, PA Municipal Authority, College Revenue:
5,000,000 AAA MBIA-Insured, 5.000% due 8/15/18 4,943,750
2,350,000 AAA Gettysburg College, Series B, AMBAC-Insured, 4.750% due 8/15/23 2,232,500
4,835,000 Aaa* Lehigh County, PA General Purpose Authority Revenue, Lehigh Valley
Health Network, Series A, MBIA-Insured, 5.000% due 7/1/18 4,750,388
3,240,000 AAA Lewisburg, PA Area School District, MBIA-Insured, 5.125% due 3/15/18 3,252,150
1,290,000 Aaa* Lower Bucks County, PA Joint Municipal Authority, Sewer & Water
Revenue, FSA-Insured, 5.000% due 11/15/17 1,281,938
6,000,000 AAA Montgomery County, PA Higher Education & Health Authority Revenue
Holy Redeemer Health, Series A, 5.250% due 10/1/17 6,120,000
Owen J. Roberts School District, PA GO, Series A, MBIA-Insured:
1,515,000 AAA 5.200% due 5/15/12 1,579,387
1,570,000 AAA 5.250% due 5/15/13 1,628,875
1,670,000 AAA 5.300% due 5/15/14 1,730,537
Pennsylvania Economic Development Financing Authority, Resource
Recovery Revenue, (Northhampton Generating Project), Series C:
2,000,000 NR 6.875% due 1/1/11(d) 2,065,000
12,000,000 NR 6.950% due 1/1/21(b)(d) 12,405,000
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
22 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Pennsylvania -- 3.2% (continued)
Pennsylvania State University:
Series A:
$ 3,430,000 AA- 5.000% due 8/15/15 $ 3,447,150
3,660,000 AA- 5.000% due 8/15/16 3,669,150
3,845,000 AA- 5.000% due 8/15/17 3,835,387
Series B:
1,035,000 AA- 5.000% due 8/15/15 1,040,175
1,090,000 AA- 5.000% due 8/15/16 1,092,725
Philadelphia, PA GO, FGIC-Insured:
2,700,000 AAA 4.750% due 5/15/16 2,629,125
2,500,000 AAA 4.750% due 5/15/20 2,393,750
Philadelphia, PA School District, GO,
Series B, AMBAC-Insured:
1,000,000 AAA 5.000% due 4/1/10 1,038,750
1,000,000 AAA 5.000% due 4/1/11 1,032,500
1,000,000 AAA 5.000% due 4/1/12 1,025,000
3,310,000 AAA 5.250% due 4/1/17 3,359,650
2,220,000 AAA 5.375% due 4/1/19 2,267,175
7,825,000 AAA Philadelphia, PA Water & Wastewater Revenue, Series A,
AMBAC-Insured, 5.000% due 8/1/14 7,942,375
5,000,000 AAA Pittsburgh, PA GO, Series 1997, Maturity 2015 & 2018, AMBAC-Insured,
5.250% due 9/1/18 5,068,750
8,225,000 AAA Pittsburgh, PA Water & Sewer Authority, Water & Sewer Systems
Revenue, Series C, FSA-Insured, 5.000% due 9/1/17 8,173,593
Saint Mary Hospital Authority, Bucks County Catholic Health Initiatives,
Series A:
2,680,000 AA 5.375% due 12/1/12 2,803,950
5,000,000 AA 5.000% due 12/1/18 4,868,750
3,100,000 AAA Scranton, PA School District GO, AMBAC-Insured, 5.000% due 4/1/17 3,080,625
- ------------------------------------------------------------------------------------------------------------------------------------
125,688,675
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico -- 0.1%
3,100,000 A-1+ Puerto Rico Government Development Bank, MBIA-Insured,
2.400% due 12/1/15(f) 3,100,000
1,675,000 AAA Puerto Rico Industrial Tourist, Educational, Medical, & Environmental
Control Facilities Financing Authority, Inter-American University,
Series A, MBIA-Insured, 5.000% due 10/1/18 1,681,281
- ------------------------------------------------------------------------------------------------------------------------------------
4,781,281
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina -- 1.2%
Beaufort County, SC Hospital Facilities Revenue, Beaufort County
Memorial Hospital, AMBAC-Insured:
5,330,000 AAA 5.000% due 12/1/12 5,423,275
2,000,000 AAA 5.000% due 12/1/17 1,972,500
Berkeley County, SC School District COP, Berkeley
School Facilities Group Inc.:
3,000,000 AAA AMBAC-Insured, 5.000% due 2/1/16 2,970,000
2,625,000 AAA MBIA-Insured, 5.250% due 2/1/16 2,687,344
Citadel Military College, SC Revenue, AMBAC-Insured:
3,000,000 AAA 5.125% due 4/1/15 3,052,500
3,115,000 AAA 5.125% due 4/1/17 3,153,938
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 23
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
South Carolina -- 1.2% (continued)
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 $ 1,751,475
4,665,000 AAA 4.750% due 3/1/24 4,408,425
Lexington County, SC Health Services District
Inc., Hospital Revenue, Refunding &
Improvement, FSA-Insured:
7,310,000 AAA 5.250% due 11/1/17 7,447,062
5,000,000 AAA 5.125% due 11/1/26 4,993,750
Piedmont Municipal Power Agency, SC Electric Revenue, Series A,
MBIA-Insured:
5,300,000 AAA 5.000% due 1/1/15 5,326,500
6,500,000 AAA 4.875% due 1/1/17 6,337,500
- ------------------------------------------------------------------------------------------------------------------------------------
49,524,269
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee -- 1.1%
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 32,037
90,000 A 11.250% due 8/1/00 98,888
100,000 A 11.250% due 2/1/01 112,875
105,000 A 11.250% due 8/1/01 121,931
110,000 A 11.250% due 2/1/02 130,763
115,000 A 11.250% due 8/1/02 140,156
120,000 A 11.250% due 2/1/03 148,950
130,000 A 11.250% due 8/1/03 164,938
135,000 A 11.250% due 2/1/04 172,969
145,000 A 11.250% due 8/1/04 189,406
150,000 A 11.250% due 2/1/05 198,938
180,000 A 11.250% due 8/1/05 243,000
Hardeman County, TN Correctional Facilities Corp.:
1,200,000 NR 6.900% due 8/1/03 1,257,000
11,000,000 NR 7.750% due 8/1/17 12,237,500
6,000,000 AA Metropolitan Government, Nashville & Davidson County, TN Electrical
Revenue, Series A, 5.125% due 5/15/15 6,075,000
Shelby County, TN Health, Educational & Housing Facilities Board,
Hospital Revenue, Methodist Health System, Remarketed 8/1/97,
MBIA-Insured:
2,445,000 AAA 5.200% due 8/1/13 2,527,519
1,465,000 AAA 5.250% due 8/1/14 1,510,781
4,885,000 AAA 5.300% due 8/1/15 5,043,762
7,755,000 AAA Tennessee State GO, Series B, 5.500% due 5/1/23(b) 8,171,830
Wilson County, TN COP, FSA-Insured:
720,000 AAA 5.100% due 3/30/11 748,800
755,000 AAA 5.150% due 3/30/12 782,369
795,000 AAA 5.200% due 3/30/13 822,825
835,000 AAA 5.250% due 3/30/14 862,138
1,250,000 AAA 5.250% due 3/30/18 1,271,875
- ------------------------------------------------------------------------------------------------------------------------------------
43,066,250
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
24 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 21.4%
Amarillo, TX Health Facilities Corp., Baptist St. Anthony's Hospital Corp.,
FSA-Insured:
$ 4,000,000 Aaa* 5.500% due 1/1/16 $ 4,275,000
2,000,000 Aaa* 5.500% due 1/1/17 2,130,000
7,335,000 Aaa* Arlington, TX ISD GO, PSFG, 4.750% due 2/15/22 6,959,081
Austin, TX Utility Systems Revenue, FSA-Insured:
5,160,000 AAA 5.125% due 11/15/16 5,205,150
3,500,000 AAA 5.125% due 11/15/17 3,517,500
Austin, TX Water, Sewer & Electric Revenue:
205,000 A* Pre-Refunded-- Escrowed with U.S. government securities to 5/15/99
Call @ 100, 14.000% due 11/15/01(c) 210,381
690,000 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) 756,413
40,350,000 A* 14.000% due 11/15/01 46,553,813
Bedford, TX GO, FSA-Insured:
1,000,000 Aaa* 5.125% due 2/1/15 1,012,500
1,000,000 Aaa* 5.125% due 2/1/16 1,008,750
1,000,000 Aaa* 5.250% due 2/1/17 1,017,500
1,000,000 Aaa* 5.250% due 2/1/18 1,013,750
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 1,612,406
1,660,000 AAA 5.100% due 12/1/13 1,697,350
1,745,000 AAA 5.125% due 12/1/14 1,775,538
1,840,000 AAA 5.200% due 12/1/15 1,872,200
2,000,000 AAA 5.200% due 12/1/16 2,025,000
2,155,000 AAA 5.250% due 12/1/18 2,181,938
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 2,586,063
Brazos County, TX Health Facilities Development, Franciscan
Services Corp. Obligated Group, MBIA-Insured:
3,000,000 AAA Series A, 5.375% due 1/1/28 3,048,750
4,250,000 AAA Series B, 5.375% due 1/1/28 4,319,063
1,000,000 Baa1* Brazos River Authority, PCR, Utilities Electric Co., Series C,
5.550% due 6/1/30(d) 975,000
28,150,000 AAA Brazos River Authority Revenue, (Houston Industries Inc. Project),
Series C, AMBAC-Insured, 5.125% due 5/1/19 28,220,375
Brownsville, TX Refunding & Public Improvement, GO, FGIC-Insured:
250,000 AAA 5.100% due 2/15/12 257,813
540,000 AAA 5.150% due 2/15/13 554,850
690,000 AAA 5.200% due 2/15/15 702,075
2,100,000 BBB Brownsville, TX Naval District, (Union Carbide Corp. Project),
5.100% due 1/1/12 2,089,500
6,750,000 AAA Brownsville, TX Utilities System Revenue, Priority Refunding,
AMBAC-Insured, 5.250% due 9/1/20 6,817,500
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) 13,750,475
4,795,000 Aaa* 6.750% due 8/1/24 5,526,238
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 25
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 21.4% (continued)
Carrollton, TX ISD GO, PSFG:
$ 4,370,000 AAA 4.625% due 2/15/17 $4,151,500
1,570,000 AAA 5.000% due 2/15/19 1,556,263
2,000,000 Aaa* Coastal Bend, TX Health Facilities Development Corp., Incarnate Word
Health Services, Series A, MBIA-Insured, 5.000% due 11/15/18 1,965,000
Conroe, TX ISD, PSFG:
3,000,000 AAA Lot A, 5.600% due 2/15/21 3,195,000
Lot B:
1,000,000 AAA 5.450% due 2/15/15 1,038,750
1,075,000 AAA 5.450% due 2/15/16 1,113,969
Copperas Cove, TX ISD, GO, PSFG Refunding:
1,960,000 AAA 5.600% due 2/1/13 2,089,850
2,035,000 AAA 5.600% due 2/1/14 2,169,819
4,055,000 AAA Cypress-Fairbanks, TX ISD, GO, PSFG, 5.000% due 2/15/16 4,055,000
Del Valle, TX ISD, GO, PSFG:
2,875,000 AAA 5.100% due 2/1/13 2,936,094
3,025,000 AAA 5.125% due 2/1/14 3,077,938
3,185,000 AAA 5.150% due 2/1/15 3,224,813
8,575,000 AAA 5.000% due 2/1/18 8,510,687
5,850,000 AAA Edinburg, TX ISD, Public Facilities Corp. Lease Revenue, AMBAC-Insured,
5.000% due 8/15/19 5,769,562
El Paso County, TX Community College District
Revenue, Combination Fee, AMBAC-Insured,
Series B:
1,720,000 AAA 5.125% due 4/1/12 1,769,450
1,000,000 AAA 5.125% due 4/1/15 1,011,250
1,545,000 AAA 5.125% due 4/1/19 1,546,931
El Paso County, TX GO, FGIC-Insured:
1,485,000 AAA 5.000% due 2/15/14 1,499,850
2,355,000 AAA 5.000% due 2/15/18 2,337,337
3,000,000 AAA Elgin, TX ISD, GO, PSFG, 5.200% due 10/1/18 3,030,000
1,215,000 AAA Fort Bend County, TX Levee Improvement District No. 011,
MBIA-Insured, 5.875% due 3/1/13 1,313,719
Fort Worth, TX Higher Education Finance Corp.,
Higher Education Revenue, (Texas Christian
University Project):
2,690,000 AA- 4.875% due 3/15/12 2,713,538
2,825,000 AA- 4.875% due 3/15/13 2,828,530
3,000,000 AA- 5.000% due 3/15/17 2,988,750
2,000,000 AA- 5.000% due 3/15/20 1,972,500
2,800,000 AA Fort Worth, TX Water & Sewer Revenue, Refunding & Improvement,
5.000% due 2/15/18 2,754,500
1,200,000 BBB Gulf Coast Waste Disposal Authority, PCR, (Union Carbide Corp.
Project), 5.100% due 1/1/12 1,194,000
Gulf Coast Water Authority, Water Systems Contract
Revenue, South Project, Series A,
FSA-Insured:
1,055,000 AAA 5.000% due 8/15/16 1,055,000
2,085,000 AAA 5.000% due 8/15/17 2,071,969
2,135,000 AAA 5.000% due 8/15/18 2,110,981
1,600,000 AAA 5.000% due 8/15/22 1,568,000
1,000,000 A1* Harris County, TX Industrial Development Corp., IDR, Cargill Inc.,
7.000% due 10/1/15 1,097,500
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
26 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 21.4% (continued)
Harris County, TX Toll Road:
$ 23,820,000 AAA Sr. Lien Revenue, FGIC-Insured, 5.375% due 8/15/20 $24,266,625
Sub. Lien Revenue:
14,200,000 AAA MBIA-Insured, 5.125% due 8/15/17 14,288,750
5,800,000 AA 5.100% due 8/15/15 5,908,750
12,155,000 AA 5.125% due 8/15/17 12,306,937
28,670,000 AA 5.000% due 8/15/21 28,490,812
8,520,000 AAA Houston, TX Airport System Revenue, Sub. Lien, FGIC-Insured,
5.125% due 7/1/22 8,498,700
Houston, TX Community College System Revenue, Student Fee:
AMBAC-Insured:
1,315,000 AAA 5.000% due 4/15/15 1,319,931
1,380,000 AAA 5.000% due 4/15/16 1,380,000
1,450,000 AAA 5.000% due 4/15/17 1,440,938
1,520,000 AAA 5.000% due 4/15/18 1,502,900
MBIA-Insured:
1,705,000 AAA 5.600% due 4/15/14 1,809,431
3,295,000 AAA 5.650% due 4/15/15 3,509,175
Houston, TX GO, Series A:
7,445,000 AA- 5.000% due 3/1/13 7,640,431
3,000,000 AA- 5.000% due 3/1/16 3,033,750
5,485,000 AA- 5.000% due 3/1/17 5,519,281
79,000,000 AAA Houston, TX ISD, GO, Series A, PSFG, 4.750% due 2/15/22 75,247,500
Houston, TX Water & Sewer System Revenue, Jr. Lien, FGIC-Insured:
Series A:
25,195,000 AAA 5.250% due 12/1/22 25,509,937
29,000,000 AAA 5.250% due 12/1/25 29,290,000
6,095,000 AAA Series B, 5.250% due 12/1/21 6,201,663
13,895,000 AAA Series C, 5.250% due 12/1/22 14,086,056
Kilgore, TX ISD, GO, PSFG:
525,000 Aaa* 5.400% due 2/15/14 545,344
400,000 Aaa* 5.375% due 2/15/15 412,500
1,275,000 AAA Killeen, TX ISD, GO, PSFG, 5.000% due 2/15/16 1,278,188
La Porte, TX ISD, GO, PSFG:
500,000 AAA 5.500% due 2/15/14 527,500
500,000 AAA 5.500% due 2/15/15 530,625
500,000 AAA 5.500% due 2/15/16 522,500
880,000 AAA 5.250% due 2/15/19 891,000
1,600,000 AAA Lockhart, TX ISD GO, PSFG, 5.000% due 8/1/22 1,572,000
Lubbock, TX Health Facilities Development Corp. Revenue,
St. Joseph Health Systems:
2,800,000 AA 5.250% due 7/1/13 2,887,500
1,135,000 AA 5.250% due 7/1/14 1,164,794
3,400,000 AA 5.250% due 7/1/15 3,455,250
12,495,000 AA 5.250% due 7/1/16 12,635,568
8,095,000 AA 5.250% due 7/1/17 8,155,713
6,085,000 AA 5.250% due 7/1/18 6,092,605
6,545,000 AA 5.250% due 7/1/19 6,569,543
10,505,000 AA 5.000% due 7/1/23 10,176,718
Manor, TX ISD, GO, PSFG:
1,185,000 AAA 5.100% due 8/1/14 1,204,256
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 27
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 21.4% (continued)
$ 1,235,000 AAA 5.100% due 8/1/15 $ 1,247,350
1,000,000 AAA 5.000% due 8/1/17 993,750
Midland, TX GO, ISD, PSFG:
1,435,000 Aaa* 5.000% due 2/15/17 1,426,031
770,000 Aaa* 4.750% due 2/15/18 741,125
3,305,000 Aaa* 4.750% due 2/15/20 3,168,669
5,500,000 AAA Midland County, TX Hospital District Revenue, AMBAC-Insured,
5.375% due 6/1/16 5,637,500
1,750,000 AAA Montgomery County, TX COP, Series A, MBIA-Insured,
5.000% due 3/1/18 1,736,875
3,465,000 AAA Montgomery County, TX GO, Utility District No. 47, Waterworks & Sewer,
AMBAC-Insured, 4.750% due 10/1/21 3,287,419
9,820,000 AAA North Central, TX Health Facility Development Corporation Revenue,
(Zale Lipshy University Project), FSA-Insured, 5.450% due 4/1/15 10,200,525
North East, TX ISD, PSFG:
8,725,000 AAA 4.750% due 10/1/22 8,277,843
7,050,000 AAA 4.500% due 10/1/28 6,406,687
North Forest, TX ISD, GO, PSFG:
1,935,000 AAA 5.125% due 8/15/14 1,973,700
1,035,000 AAA 5.000% due 8/15/15 1,038,881
1,385,000 AAA 5.000% due 8/15/16 1,385,000
1,000,000 AAA 5.000% due 8/15/18 992,500
3,630,000 AAA Nueces River Authority, TX Water Supply Facilities, (Corpus Christi
Lake Project), FSA-Insured, 5.500% due 3/1/27 3,806,963
Plano, TX Refunding & Improvement GO:
1,680,000 AA+ 5.100% due 9/1/14 1,719,900
1,595,000 AA+ 5.150% due 9/1/16 1,622,913
1,025,000 AAA Port Arthur, TX GO, MBIA-Insured, 5.500% due 2/15/16 1,068,563
3,000,000 AAA Port of Port Arthur, TX Naval District, AMBAC-Insured, 4.875% due 3/1/17 2,940,000
Richardson, TX Refunding & Improvement GO:
680,000 AA 5.000% due 2/15/16 685,950
1,465,000 AA 5.000% due 2/15/18 1,465,000
Santa Fe, TX ISD, GO, PSFG:
1,190,000 Aaa* 5.250% due 2/15/17 1,206,363
2,270,000 Aaa* 5.125% due 2/15/19 2,278,513
Socorro, TX ISD, GO, PSFG:
3,595,000 AAA 5.300% due 8/15/18 3,657,913
7,460,000 Aaa* 5.125% due 2/15/27 7,441,350
4,000,000 A+ Southwest Higher Education Authority, Southern Methodist University,
5.000% due 10/1/18 3,925,000
1,610,000 AAA Springtown, TX ISD, GO, PSFG, 5.000% due 2/15/14 1,626,100
Stephenville, TX ISD, GO, PSFG:
1,125,000 AAA 5.000% due 2/15/14 1,134,844
1,570,000 AAA 5.000% due 2/15/15 1,575,888
1,735,000 AAA 5.000% due 2/15/17 1,724,156
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) 1,021,250
4,000,000 AA Texas State GO, Series B, 5.125% due 10/1/15 4,120,000
Texas State Public Finance Authority:
5,000,000 AA GO, 5.000% due 10/1/15 5,075,000
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
28 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 21.4% (continued)
Building Revenue, AMBAC-Insured:
$ 2,650,000 AAA 5.000% due 8/1/13 $ 2,686,437
2,800,000 AAA 5.000% due 8/1/14 2,824,500
2,960,000 AAA 5.000% due 8/1/15 2,971,100
General Services Common Projects, Series A, AMBAC-Insured:
5,450,000 AAA 5.000% due 2/1/17 5,415,937
5,730,000 AAA 5.000% due 2/1/18 5,665,537
33,300,000 AAA Texas State Turnpike Authority Dallas North Tollway Revenue,
George Bush Turnpike, FGIC-Insured, 5.250% due 1/1/23(b) 33,633,000
Texas Water Development Board Revenue, State Revolving Fund,
Sr. Lien, Series B:
3,000,000 AAA 5.000% due 7/15/14 3,033,750
2,500,000 AAA 5.000% due 7/15/15 2,509,375
7,000,000 AAA 5.000% due 7/15/16 6,991,250
67,640,000 AAA 5.000% due 7/15/19(h) 66,625,400
Texas State Water Development GO, Series D:
10,000,000 AAA 5.000% due 8/1/16 10,087,500
6,000,000 AAA 5.000% due 8/1/19 6,007,500
4,120,000 AA+ Travis County, TX Health Facilities Development Corp., Hospital Revenue,
Charity Obligation Group, Series A, 5.125% due 11/1/18 4,094,250
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 1,419,188
2,000,000 AAA Series B, FSA-Insured, 5.500% due 11/1/17 2,102,500
3,250,000 AAA Series C, FSA-Insured, 5.500% due 11/1/17 3,416,563
8,000,000 AAA Series D, Remarketed 2/16/99, FSA-Insured, 5.375% due 11/1/27 7,950,000
Upper Trinity Regional Water District, TX Water
Revenue, Treated Water Supply Systems,
MBIA-Insured:
1,735,000 AAA 5.000% due 8/1/13 1,756,687
6,180,000 AAA 5.000% due 8/1/18 6,110,474
Victoria, TX ISD, GO, PSFG:
1,245,000 AAA 5.000% due 2/15/15 1,249,669
1,370,000 AAA 5.000% due 2/15/16 1,370,000
2,500,000 AAA Victoria, TX Utility System Revenue, Series A, MBIA-Insured,
5.000% due 12/1/21 2,453,125
Weatherford, TX IS, GO, PSFG:
3,295,000 Aaa* 5.000% due 2/15/13 3,344,425
3,000,000 Aaa* 5.000% due 2/15/15 3,011,250
- ------------------------------------------------------------------------------------------------------------------------------------
846,602,131
- ------------------------------------------------------------------------------------------------------------------------------------
Utah -- 2.2%
88,295,000 A+ Intermountain Power Agency, UT Power Supply Revenue, Series D,
5.000% due 7/1/21(b) 86,308,363
- ------------------------------------------------------------------------------------------------------------------------------------
Virgin Islands -- 0.4%
Virgin Islands Public Finance Authority Revenue, Sr. Lien, Series A:
5,580,000 BBB- 5.300% due 10/1/11 5,670,675
5,380,000 BBB- 5.400% due 10/1/12 5,501,050
4,245,000 BBB- 5.500% due 10/1/13 4,351,125
- ------------------------------------------------------------------------------------------------------------------------------------
15,522,850
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 29
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Virginia -- 1.8%
Arlington County, VA IDA Multi-Family Housing Revenue,
Sr. Lien, Arlington Housing:
$ 705,000 A 6.300% due 7/1/16 $ 760,519
750,000 A 6.350% due 7/1/20 807,188
1,000,000 A 6.375% due 7/1/25 1,077,500
Blue Ridge Regional Jail Authority, VA Regional Jail Facility Revenue,
MBIA-Insured:
1,600,000 AAA 5.000% due 12/1/11 1,662,000
750,000 AAA 5.000% due 12/1/12 772,500
1,200,000 AAA 5.000% due 12/1/13 1,219,500
1,750,000 AAA 5.200% due 12/1/17 1,780,625
1,000,000 AAA 5.200% due 12/1/21 1,013,750
1,500,000 AAA Chesapeake Bay, VA Bridge & Tunnel Commission District Revenue,
General Resolution, MBIA-Insured, 5.250% due 7/1/19 1,528,125
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 1,537,219
2,715,000 AAA 6.150% due 4/20/26 2,925,413
500,000 AAA Lynchburg, VA Redevelopment & Housing Authority Revenue,
Waldon Pond III, Series A, GNMA-Collateralized, 6.200% due 7/20/27 539,375
2,160,000 AA Norfolk, VA Redevelopment & Housing Authority, Educational Facilities
Revenue, Tidewater Community College Campus, 5.875% due 11/1/15 2,303,100
Northern Virginia Transportation District Commission, Commuter Rail
Revenue, (Virginia Railway Express Project):
1,605,000 AAA FSA-Insured, 5.375% due 7/1/14 1,689,262
MBIA-Insured:
1,245,000 AAA 5.150% due 7/1/12 1,296,356
1,000,000 AAA 5.200% due 7/1/13 1,036,250
14,035,000 AAA Riverside, VA Regional Jail Authority Facility Revenue, MBIA-Insured,
5.875% due 7/1/14 15,298,150
2,130,000 AAA Roanoke, VA Redevelopment & Housing Authority Revenue, Westwind II,
Series A, GNMA-Collateralized, 6.200% due 7/20/26 2,239,163
2,820,000 AA Virginia Beach, VA Development Authority Health Care Facilities
Revenue, Sentara Health Systems, 5.250% due 11/1/15 2,869,350
Virginia State Housing Development Authority, Commonwealth
Mortgage Revenue:
6,665,000 AA+ Series C, Subseries C-1, Remarketed 6/10/98, 5.100% due 7/1/14 6,698,325
1,225,000 AAA Series D, Subseries D-2, Remarketed 1/4/96, MBIA-Insured,
5.650% due 1/1/13 1,283,188
Series D, Subseries D-4, Remarketed 7/16/96:
1,330,000 AA+ 6.100% due 1/1/11 1,406,475
1,365,000 AA+ 6.100% due 7/1/11 1,440,075
1,400,000 AA+ 6.125% due 1/1/12 1,480,500
1,440,000 AA+ 6.125% due 7/1/12 1,522,800
1,485,000 AA+ 6.150% due 1/1/13 1,568,531
1,525,000 AA+ 6.150% due 7/1/13 1,610,780
1,565,000 AA+ 6.200% due 1/1/14 1,653,031
1,615,000 AA+ 6.200% due 7/1/14 1,705,844
4,380,000 Aa1* Series E, Subseries E-2, 5.250% due 7/1/17 4,429,275
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
30 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Virginia -- 1.8% (continued)
$ 5,895,000 AA+ Virginia State Public School Authority, School Financing, Series I,
5.125% due 8/1/16 $ 6,042,375
- ------------------------------------------------------------------------------------------------------------------------------------
73,196,544
- ------------------------------------------------------------------------------------------------------------------------------------
Washington -- 2.6%
Aberdeen, WA Special Revenue, (Stafford Creek Correctional
Center Project), AMBAC-Insured:
1,165,000 AAA 4.750% due 11/1/14 1,150,438
1,220,000 AAA 4.750% due 11/1/15 1,192,550
King County, WA GO:
2,740,000 AAA Public Hospital District No. 2, MBIA-Insured, 5.250% due 12/1/18 2,798,225
2,000,000 AA- School District No. 403, Renton, 5.250% due 6/1/15 2,070,000
5,000,000 Aa1* School District No. 414, Lake Washington, Series B,
4.900% due 12/1/15 5,043,750
Port Seattle, WA Revenue, Series A, FGIC-Insured:
4,000,000 AAA 5.375% due 6/1/13 4,205,000
3,985,000 AAA 5.125% due 6/1/14 4,064,700
Snohomish County, WA School District No. 15, Edmonds, FGIC-Insured:
5,000,000 AAA 5.250% due 12/1/15 5,118,750
7,500,000 AAA 5.300% due 12/1/16 7,668,750
2,530,000 Aaa* Thurston County, WA GO, MBIA-Insured, 5.000% due 8/1/15 2,539,487
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 3,499,244
4,000,000 Aaa* Washington State Housing Finance Commission, Single Family Program,
Series 3N, FNMA-GNMA-FHLMC-Collateralized, 5.250% due 12/1/17 4,045,000
Washington State Public Power Supply System:
6,420,000 AAA (Nuclear Project No. 2), Series A, FSA-Insured, 5.125% due 7/1/11 6,700,875
(Nuclear Project No. 3), Series B:
24,000,000 Aa1* 5.500% due 7/1/17(h) 24,046,080
29,220,000 Aa1* 5.500% due 7/1/18(b) 29,278,440
- ------------------------------------------------------------------------------------------------------------------------------------
103,421,289
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia -- 0.8%
Marion County, WV County Commission, Solid Waste Disposal
Facilities Revenue, Adirondack Recycling:
19,330,927 NR Series A, 8.000% due 12/1/25(b) 17,397,834
2,745,492 NR Series B, 10.000% due 12/1/25 2,470,944
Ohio County, WV Board of Education, GO:
2,000,000 A+ 5.000% due 6/1/13 2,045,000
500,000 A+ 5.125% due 6/1/18 507,500
6,540,000 BBB South Charleston, WV PCR, (Union Carbide Corp. Project),
5.100% due 1/1/12 6,507,300
West Virginia University Revenue, (West Virginia
University Project), Student Union, Series B,
AMBAC-Insured:
1,755,000 AAA 5.000% due 5/1/17 1,744,031
1,915,000 AAA 5.000% due 5/1/18 1,893,456
- ------------------------------------------------------------------------------------------------------------------------------------
32,566,065
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 31
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Wisconsin -- 1.1%
$ 1,225,000 AAA Merrill, WI Area Common Public School District, FSA-Insured,
5.000% due 4/1/18 $ 1,218,875
2,210,000 Aaa* Waupun, WI School District, FGIC-Insured, 4.950% due 4/1/16 2,201,712
1,325,000 Aaa* Winneconne, WI Community School District GO, FGIC-Insured,
6.750% due 4/1/16 1,543,625
2,000,000 AA Wisconsin Housing & EDA, Home Ownership Revenue, Series A,
6.450% due 3/1/17 2,122,500
Wisconsin State Health & Educational Facilities Authority:
33,000,000 AAA Aurora Health Care Inc., MBIA-Insured, 5.250% due 8/15/17 33,536,250
4,000,000 AAA Marquette University, MBIA-Insured, 5.500% due 6/1/18 4,150,000
- ------------------------------------------------------------------------------------------------------------------------------------
44,772,962
- ------------------------------------------------------------------------------------------------------------------------------------
Wyoming -- 0.1%
2,820,000 AAA Wyoming Building Corp. Revenue, AMBAC-Insured, 5.000% due 10/1/13 2,869,350
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost-- $3,808,606,805**) $3,964,626,474
====================================================================================================================================
</TABLE>
(a) All ratings are by Standard & Poor's Rating 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 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Bond Ratings (unaudited)
- --------------------------------------------------------------------------------
The definitions of the applicable rating symbols are set forth below:
Standard & Poor's Rating 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 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities February 28, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Cost -- $3,808,606,805) $ 3,964,626,474
Interest receivable 43,293,713
Receivable for Fund shares sold 8,402,897
Receivable for securities sold 4,839,344
- ----------------------------------------------------------------------------------------
Total Assets 4,021,162,428
- ----------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 82,609,166
Payable for Fund shares purchased 52,941,102
Dividends payable 5,758,536
Distribution fees payable 1,183,856
Investment advisory fees payable 952,539
Administration fees payable 510,708
Payable to bank 61,572
Accrued expenses 65,045
- ----------------------------------------------------------------------------------------
Total Liabilities 144,082,524
- ----------------------------------------------------------------------------------------
Total Net Assets $ 3,877,079,904
========================================================================================
NET ASSETS:
Par value of capital shares $ 2,434,439
Capital paid in excess of par value 3,754,573,906
Overdistributed net investment income (5,790,395)
Accumulated net realized loss from security
transactions and futures contracts (30,157,715)
Net unrealized appreciation of investments 156,019,669
- ----------------------------------------------------------------------------------------
Total Net Assets $ 3,877,079,904
========================================================================================
Shares Outstanding:
Class A 155,435,814
- ----------------------------------------------------------------------------------------
Class B 75,744,373
- ----------------------------------------------------------------------------------------
Class L 11,534,768
- ----------------------------------------------------------------------------------------
Class Y 728,830
- ----------------------------------------------------------------------------------------
Net Asset Value:
Class A (and redemption price) $ 15.93
- ----------------------------------------------------------------------------------------
Class B * $ 15.92
- ----------------------------------------------------------------------------------------
Class L ** $ 15.92
- ----------------------------------------------------------------------------------------
Class Y (and redemption price) $ 15.95
- ----------------------------------------------------------------------------------------
Maximum Public Offering Price Per Share:
Class A (net asset value plus 4.17% of net asset value per share) $ 16.59
- ----------------------------------------------------------------------------------------
Class L (net asset value plus 1.01% of net asset value per share) $ 16.08
========================================================================================
</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>
- --------------------------------------------------------------------------------
Statement of Operations For the Year Ended February 28, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 200,343,738
- ------------------------------------------------------------------------------
EXPENSES:
Distribution fees (Note 3) 12,346,709
Investment advisory fees (Note 3) 11,563,790
Administration fees (Note 3) 6,448,802
Shareholder and system servicing fees 1,008,887
Registration fees 319,122
Shareholder communications 175,415
Custody 159,016
Audit and legal 90,749
Pricing service fees 64,821
Directors' fees 57,840
Other 50,858
- ------------------------------------------------------------------------------
Total Expenses 32,286,009
- ------------------------------------------------------------------------------
Net Investment Income 168,057,729
- ------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FUTURES CONTRACTS (NOTES 4 AND 5):
Realized Gain (Loss) From:
Security transactions (excluding short-term securities) 7,358,607
Futures contracts (36,186,282)
- ------------------------------------------------------------------------------
Net Realized Loss (28,827,675)
- ------------------------------------------------------------------------------
Change in Net Unrealized Appreciation of Investments:
Beginning of year 152,317,639
End of year 156,019,669
- ------------------------------------------------------------------------------
Increase in Net Unrealized Appreciation 3,702,030
- ------------------------------------------------------------------------------
Net Loss on Investments and Futures Contracts (25,125,645)
- ------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 142,932,084
==============================================================================
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
36 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets For the Years Ended February 28,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998
===================================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income $ 168,057,729 $ 157,886,553
Net realized gain (loss) (28,827,675) 94,713,402
Increase in net unrealized appreciation 3,702,030 127,793,799
- ---------------------------------------------------------------------------------------------------
Increase in Net Assets From Operations 142,932,084 380,393,754
- ---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTE 2):
Net investment income (168,001,873) (158,287,063)
Excess of net investment income (11,815,898) --
Net realized gains (27,146,490) (100,590,928)
- ---------------------------------------------------------------------------------------------------
Decrease in Net Assets From Distributions to Shareholders (206,964,261) (258,877,991)
- ---------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 6):
Net proceeds from sale of shares 817,389,236 791,732,693
Net asset value of shares issued for
reinvestment of dividends 126,767,790 166,707,545
Cost of shares reacquired (633,747,421) (432,770,227)
- ---------------------------------------------------------------------------------------------------
Increase in Net Assets From Fund Share Transactions 310,409,605 525,670,011
- ---------------------------------------------------------------------------------------------------
Increase in Net Assets 246,377,428 647,185,774
NET ASSETS:
Beginning of year 3,630,702,476 2,983,516,702
- ---------------------------------------------------------------------------------------------------
End of year* $ 3,877,079,904 $ 3,630,702,476
===================================================================================================
* Includes overdistributed net investment income of: $ (5,790,395) $ (5,846,251)
===================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 37
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
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
SSBC Fund Management Inc. ("SSBC") formerly known as Mutual Management Corp., 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.
On October 8, 1998, CFBDS, Inc., became the Fund's
- --------------------------------------------------------------------------------
38 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
distributor. Prior to that date Salomon Smith Barney Inc. ("SSB"), another
subsidiary of SSBH, was the Fund's distributor. SSB, as well certain other
broker-dealers, continues to sell Fund shares to the public as members of the
selling group.
On June 12, 1998, the Fund's Class C shares were renamed Class L shares.
Effective June 15, 1998, Class L shares are being sold at net asset value plus a
maximum initial sales charge of 1.00%. Class L shares also have a 1.00%
contingent deferred sales charge ("CDSC"), which applies if redemption occurs
within the first year of purchase.
There is also a 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. 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 year ended February 28, 1999, SSB received sales charges of
approximately $4,442,000 and $375,000 on sales of the Fund's Class A and Class L
shares, respectively. In addition, CDSCs paid to SSB were approximately:
Class A Class B Class L
================================================================================
CDSCs $72,000 $1,404,000 $32,000
================================================================================
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 year ended February 28, 1999, total Distribution Plan fees incurred
were:
Class A Class B Class L
================================================================================
Distribution Plan Fees $3,651,852 $7,588,761 $1,106,096
================================================================================
All officers and one Director of the Fund are employees of SSB.
4. Investments
During the year ended February 28, 1999, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
================================================================================
Purchases $2,204,095,961
- --------------------------------------------------------------------------------
Sales 1,679,391,413
================================================================================
At February 28, 1999, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were substantially
as follows:
================================================================================
Gross unrealized appreciation $202,782,398
Gross unrealized depreciation (46,762,729)
- --------------------------------------------------------------------------------
Net unrealized appreciation $156,019,669
================================================================================
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 February 28, 1999, the Fund had no open futures contracts.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 39
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
6. Capital Shares
At February 28, 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 February 28, 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 $2,350,407,959 $1,211,488,630 $183,147,586 $11,964,170
======================================================================================================
</TABLE>
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
February 28, 1999 February 28, 1998
------------------------------ ------------------------------
Shares Amount Shares Amount
======================================================================================================
<S> <C> <C> <C> <C>
Class A
Shares sold 25,514,936 $ 411,308,146 29,486,209 $ 470,065,083
Shares issued on reinvestment 5,134,373 82,575,616 6,901,333 109,832,919
Shares reacquired (21,377,362) (344,451,566) (18,373,814) (293,622,517)
- ------------------------------------------------------------------------------------------------------
Net Increase 9,271,947 $ 149,432,196 18,013,728 $ 286,275,485
======================================================================================================
Class B
Shares sold 12,635,335 $ 203,684,556 15,027,839 $ 238,903,620
Shares issued on reinvestment 2,324,422 37,364,480 3,169,741 50,431,107
Shares reacquired (8,707,120) (140,244,766) (6,725,498) (106,847,239)
- ------------------------------------------------------------------------------------------------------
Net Increase 6,252,637 $ 100,804,270 11,472,082 $ 182,487,488
======================================================================================================
Class L+
Shares sold 5,331,560 $ 85,847,261 4,455,449 $ 70,921,771
Shares issued on reinvestment 372,372 5,982,936 353,026 5,622,820
Shares reacquired (2,003,058) (32,218,632) (1,628,656) (25,943,307)
- ------------------------------------------------------------------------------------------------------
Net Increase 3,700,874 $ 59,611,565 3,179,819 $ 50,601,284
======================================================================================================
Class Y
Shares sold 7,248,020 $ 116,549,273 732,857 $ 11,842,219
Shares issued on reinvestment 52,599 844,758 51,522 820,699
Shares reacquired (7,306,335) (116,832,457) (392,741) (6,357,164)
- ------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (5,716) $ 561,574 391,638 $ 6,305,754
======================================================================================================
</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 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) 1998 1997 1996 1995
======================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $16.19 $15.61 $16.20 $15.47 $16.13
- ------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.74 0.79 0.88 0.91 0.95
Net realized and unrealized gain (loss) (0.10) 1.06 (0.18) 0.80 (0.37)
- ------------------------------------------------------------------------------------------------------
Total Income From Operations 0.64 1.85 0.70 1.71 0.58
- ------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (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 (0.90) (1.27) (1.29) (0.98) (1.24)
- ------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $15.93 $16.19 $15.61 $16.20 $15.47
- ------------------------------------------------------------------------------------------------------
Total Return 4.07% 12.30% 4.51% 11.34% 4.11%
- ------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $2,476 $2,367 $2,000 $1,892 $1,772
- ------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.67% 0.68% 0.68% 0.70% 0.71%
Net investment income 4.63 4.98 5.60 5.47 6.25
- ------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 45% 110% 103% 80% 100%
======================================================================================================
</TABLE>
(1) Per share amounts have been calculated using the monthly average shares
method.
- --------------------------------------------------------------------------------
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) 1998 1997 1996 1995
==============================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $16.19 $15.60 $16.20 $15.47 $16.13
- --------------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.66 0.72 0.79 0.82 0.86
Net realized and unrealized gain (loss) (0.11) 1.06 (0.18) 0.81 (0.37)
- --------------------------------------------------------------------------------------------------------------
Total Income From Operations 0.55 1.78 0.61 1.63 0.49
- --------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (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 (0.82) (1.19) (1.21) (0.90) (1.15)
- --------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $15.92 $16.19 $15.60 $16.20 $15.47
- --------------------------------------------------------------------------------------------------------------
Total Return 3.48% 11.81% 3.92% 10.78% 3.54%
- --------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $1,206 $1,125 $905 $730 $515
- --------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.19% 1.20% 1.19% 1.22% 1.23%
Net investment income 4.11 4.46 5.09 4.94 5.73
- --------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 45% 110% 103% 80% 100%
==============================================================================================================
</TABLE>
(1) Per share amounts have been calculated using the monthly average shares
method.
- --------------------------------------------------------------------------------
42 1999 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(1) 1999(2) 1998(2) 1997 1996 1995(3)
=============================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $16.18 $15.60 $16.20 $15.47 $14.30
- -------------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.65 0.70 0.79 0.82 0.27
Net realized and unrealized gain (loss) (0.10) 1.06 (0.18) 0.81 1.46*
- -------------------------------------------------------------------------------------------------------------
Total Income From Operations 0.55 1.76 0.61 1.63 1.73
- -------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.65) (0.70) (0.83) (0.82) (0.27)
Excess of net investme nt income (0.05) -- -- -- --
Net realized gains (0.11) (0.48) (0.38) (0.08) (0.29)
- -------------------------------------------------------------------------------------------------------------
Total Distributions (0.81) (1.18) (1.21) (0.90) (0.56)
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $15.92 $16.18 $15.60 $16.20 $15.47
- -------------------------------------------------------------------------------------------------------------
Total Return 3.49% 11.69% 3.88% 10.76% 12.36%++
- -------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (000s) $183,578 $126,766 $72,597 $33,411 $5,395
- -------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.24% 1.25% 1.24% 1.27% 1.29%+
Net investment income 4.06 4.38 5.04 4.86 5.67+
- -------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 45% 110% 103% 80% 100%
=============================================================================================================
</TABLE>
(1) On June 12, 1998, Class C shares were renamed Class L shares.
(2) Per share amounts have been calculated using the monthly average shares
method, rather than the undistributed net investment income method, because
it more accurately reflects the per share data for the period.
(3) 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) 1998(1) 1997(1) 1996(2)
==================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $16.19 $15.60 $16.20 $15.63
- --------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.73 0.82 0.90 0.85
Net realized and unrealized gain (loss) (0.04) 1.07 (0.18) 0.65
- --------------------------------------------------------------------------------------------------
Total Income From Operations 0.69 1.89 0.72 1.50
- --------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (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 (0.93) (1.30) (1.32) (0.93)
- --------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $15.95 $16.19 $15.60 $16.20
- --------------------------------------------------------------------------------------------------
Total Return 4.39% 12.56% 4.59% 9.84%++
- --------------------------------------------------------------------------------------------------
Net Assets, End of Year (000s) $11,626 $11,893 $5,350 $12,314
- --------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.50% 0.52% 0.52% 0.57%+
Net investment income 4.84 5.06 5.76 5.62+
- --------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 45% 110% 103% 80%
==================================================================================================
</TABLE>
(1) Per share amounts have been calculated using the monthly average shares
method, rather than the undistributed net investment income method, because
it more accurately reflects the per share data for the period.
(2) 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 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Independent Auditors' Report
- --------------------------------------------------------------------------------
The Shareholders and Board of Directors of
the Smith Barney Managed Municipals Fund Inc.:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Smith Barney Managed Municipals Fund Inc. as of
February 28, 1999, the related statement of operations for the year then ended,
the statements of changes in net assets for each of the years in the two-year
period then ended and financial highlights for each of the years in the
four-year period then ended. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits. The financial highlights for the year ended February 28, 1995
were audited by other auditors whose report thereon, dated April 10, 1995,
expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
February 28, 1999, by correspondence with the custodian. As to securities
purchased or sold but not yet received or delivered, we performed other
appropriate auditing procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Smith
Barney Managed Municipals Fund Inc. as of February 28, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the years in the two-year period then ended and financial highlights for each of
the years in the four-year period then ended, in conformity with generally
accepted accounting principles.
/s/ KMPG LLP
New York, New York
April 12, 1999
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 45
<PAGE>
- --------------------------------------------------------------------------------
Tax Information (unaudited)
- --------------------------------------------------------------------------------
For Federal tax purposes the Fund hereby designates for the fiscal year
ended February 28, 1999:
o 99.89% of the dividends paid by the Fund from net investment income
as tax exempt for regular Federal income tax purposes.
o Total long-term capital gain distributions paid of $5,050,841.
- --------------------------------------------------------------------------------
46 1999 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Additional Shareholder Information (unaudited)
- --------------------------------------------------------------------------------
On March 9, 1998, a special meeting of shareholders of the Fund was held for the
purpose of voting on the following matters:
1. To elect Directors of the Fund; and
2. To approve or disapprove the reclassification, modification and/or
elimination of certain fundamental investment policies.
The results of the vote on Proposal 1 were as follows:
<TABLE>
<CAPTION>
Shares Voted Percentage Shares Voted Percentage
Name of Director For Shares Voted Against Shares Voted
============================================================================================================
<S> <C> <C> <C> <C>
Herbert Barg 112,625,453.104 97.896% 2,420,243.831 2.104%
Alfred J. Bianchetti 112,606,797.606 97.880 2,438,899.329 2.120
Martin Brody 112,597,756.011 97.872 2,447,940.924 2.128
Dwight B. Crane 112,716,679.723 97.976 2,329,017.212 2.024
Burt N. Dorsett 112,785,869.713 98.036 2,259,827.222 1.964
Elliot S. Jaffe 112,726,617.292 97.984 2,319,079.643 2.016
Stephen E. Kaufman 112,778,476.817 98.029 2,267,220.118 1.971
Joseph J. McCann 112,783,037.639 98.033 2,262,659.296 1.967
Heath B. McLendon 112,738,734.539 97.995 2,306,962.396 2.005
Cornelius C. Rose, Jr. 112,764,928.596 98.018 2,280,768.339 1.982
============================================================================================================
</TABLE>
Proposal 2 requested that shareholders approve certain changes to the
fundamental investment policies of the Fund in order to modernize them in view
of certain regulatory, business or industry developments that have occurred
since original adoption of these policies by the Fund. The following chart
demonstrates that all proposals were approved by the shareholders.
Please note that "M" indicates a modification of the policy and "R" indicates
the reclassification of the policy from fundamental (which would require
shareholder approval to change) to non-fundamental (which can be changed by a
vote of the Board of Directors).
==============================================================================
"M" Diversification Approved
- ------------------------------------------------------------------------------
"M" Borrowing Approved
- ------------------------------------------------------------------------------
"M" Lending by the Fund Approved
- ------------------------------------------------------------------------------
"R" Margin and Short-Sales Approved
- ------------------------------------------------------------------------------
"M" Real Estate Approved
- ------------------------------------------------------------------------------
"M" Issuance of Senior Securities Approved
==============================================================================
The information below reports the lowest percentage of shares voting for the
proposals, the highest percentage of shares voting against and abstaining by
shareholders of the Fund on all proposals.*
<TABLE>
<CAPTION>
Percentage Percentage Percentage
Shares Voted of Shares Shares Voted of Shares Shares of Shares
For Voted Against Voted Against Abstaining Abstained
=============================================================================================================
<S> <C> <C> <C> <C> <C>
104,691,943.571 91.344% 2,492,456.398 2.174% 7,428,962.966 6.482%
=============================================================================================================
</TABLE>
* Broker non-votes constituted less than one percent of shares voted.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 47
<PAGE>
[This page intentionally left blank]
<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
SSBC Fund Management Inc.
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.
SALOMONSMITHBARNEY
- ------------------
A member of citigroup[LOGO]
Salomon Smith Barney is a servicemark
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
FD2207 4/99
