<PAGE>
[LOGO OF SMITH BARNEY]
SMITH BARNEY
MANAGED
MUNICIPALS Fund Inc.
CLASSIC INVESTOR SERIES
ANNUAL REPORT
FEBRUARY 29, 2000
[LOGO OF SMITH BARNEY]
NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<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 which is excluded from gross income for regular federal income
tax purposes to the extent consistent with prudent investment management and the
preservation of capital.(1)
Smith Barney Managed Municipals Fund Inc.
Average Annual Total Returns
February 29, 2000
Without Sales Charges(2)
-------------------------------------
Class A Class B Class L
================================================================================
One-Year (6.62)% (7.08)% (7.19)%
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Five-Year 4.90 4.36 4.30
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Ten-Year 7.26 N/A N/A
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Since Inception+ 9.74 5.92 6.35
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With Sales Charges(3)
-------------------------------------
Class A Class B Class L
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One-Year (10.33)% (11.09)% (8.99)%
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Five-Year 4.05 4.20 4.09
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Ten-Year 6.81 N/A N/A
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Since Inception+ 9.50 5.92 6.16
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(1) Please note that a portion of the Fund's income may be subject to the
Alternative Minimum Tax ("AMT").
(2) 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.
(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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There is currently something for everyone in the bond market, conservative and
aggressive investors alike. The two-year U.S. Treasury note now yields more than
the 30-year U.S. Treasury bond. This means that conservative, income-oriented
investors do not need to take on the added risks associated with very long-term
maturities to capture the high yield that the market has to offer. Similarly,
more aggressive investors can take advantage of the potential price appreciation
that longer-term securities would afford if yields were to decline.
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NASDAQ SYMBOL
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Class A SHMMX
Class B SMMBX
Class L SMMCX
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WHAT'S INSIDE
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A Message from the Chairman ................................................. 1
Shareholder Letter .......................................................... 2
Historical Performance ...................................................... 5
Smith Barney Managed Municipals Fund Inc.
at a Glance ................................................................. 8
Schedule of Investments ..................................................... 9
Statement of Assets and Liabilities ......................................... 32
Statement of Operations ..................................................... 33
Statements of Changes in Net Assets ......................................... 34
Notes to Financial Statements ............................................... 35
Financial Highlights ........................................................ 39
Independent Auditors' Report ................................................ 43
Tax Information ............................................................. 44
<PAGE>
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A Message from the Chairman of the
Smith Barney Managed Municipals Fund Inc.
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[PHOTO]
HEATH B.
MCLENDON
Chairman
Dear Shareholder:
The economic environment in which the Smith Barney Managed Municipals Fund Inc.
operates has been one of high expectations and rapid change.
The U.S. economy continues its tremendous growth. Unemployment is at an all time
low as consumer confidence reaches all time highs. While this economic strength
has proven to be supportive of stocks, it has hurt bonds as fears of
inflationary pressures rise and the Federal Reserve Board continues to raise
rates.
Since 1998, worldwide economic underpinnings have improved significantly. The
global credit crunch that had taken hold on financial markets has subsided, with
credit concerns limited to specific situations, but positive on an overall
basis. Moreover, despite continued economic growth, inflationary pressures have
been negligible, allowing for increasingly competitive real rates of return
(i.e., yield adjusted for inflation). In addition, we are experiencing a
historically unique circumstance wherein the U.S. government is buying back U.S.
Treasury securities in order to reduce federal debt. This active buying of
outstanding U.S. Treasury bonds by the government has created a situation where
Treasury yields are low compared to the income return available on other fixed
income instruments. These conditions have added a new complexity to bond
investing, which we believe makes professional money management more valuable
today than ever before.
We also continue to believe that municipal bonds represent excellent value. The
relative stability and historically high yields available in this sector should
restore a level of confidence to those investors seeking to ride out the
volatility apparent in other asset classes.
Despite more volatile markets and the great debate about the future shape of the
global economy, putting clients needs first has been Citigroup Inc.'s
("Citigroup") tradition for over a century. We provide some 100 million people,
businesses, governments and institutions in 100 countries with a broad range of
financial products and services. SSB Citi Asset Management, Citigroup's asset
management division, offers you access to a broad range of products including
equities, fixed income and money markets. Our global resources are extensive,
far-reaching and powerful, with a strong presence in the U.S., Europe, Japan,
Latin America, Asia Pacific and Australia.
We invite you to explore our capabilities as a market leader in areas such as
retirement, tax and estate planning, and we encourage you to work closely with
your Salomon Smith Barney Financial Consultant to discuss the full range of
services we offer. He or she can further discuss the unique advantages of
professional investment management and how SSB Citi Asset Management can help
you to develop a long-term disciplined plan to help you achieve your investment
goals.
When you invest with Smith Barney Asset Management, you do so with the
confidence that your interests come first, your investment success is paramount,
and that the ultimate in resources is being committed to your financial future.
Thank you for investing with us.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
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Smith Barney Managed Municipals Fund Inc. 1
<PAGE>
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Shareholder Letter
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[PHOTO]
JOSEPH P.
DEANE
Vice President and
Investment Officer
We are pleased to provide the annual report for the Smith Barney Managed
Municipals Fund Inc. ("Fund") for the year ended February 29, 2000. In this
report, we summarize the period's prevailing economic and market conditions and
outline our portfolio strategy. A detailed summary of the Fund's performance can
be found in the appropriate sections that follow. We hope you find this report
to be useful and informative.
Performance Update1
For the year ended February 29, 2000, the Fund had negative total returns of
6.62%, 7.08% and 7.19% for its Class A, B and L shares, respectively, without
sales charges. In comparison, the Fund's Lipper, Inc. peer group average posted
a total return of negative 4.58% for the same period. (Lipper, Inc is a major
fund-tracking organization.) Over the year covered by this report, the Fund
distributed income dividends totaling $0.73 for Class A shares. For additional
performance information please refer to pages five through seven.
Municipal Bond Market Update
In our view, bond yields are high enough to adequately reflect the risk of
slightly higher inflation. The period covered by this report was marked by
continued robust U.S. economic growth, historically low inflation and low
unemployment.
On February 2, 2000, the Federal Reserve Board ("Fed") raised interest rates for
a fourth time in less than eight months, aiming to keep inflation at bay and to
curb the nation's rapidly growing economy.2 Perhaps more significant than the
Fed's actions was its accompanying statement that rapid growth could foster
inflationary imbalances that might undermine the U.S. economy's record economic
expansion. We believe that this cautionary statement may hint at a slightly more
aggressive approach by the Fed in the months ahead. However, in our view, bond
yields are high enough to adequately reflect the risk of slightly higher
inflation. Indeed, we think that bond yields may be near their peak.
Also, we believe performance in the bond market during the period has been a
direct result of Fed monetary policy actions. While presumably aimed at stock
market exuberance, it is the bond market that has taken the brunt of any
correction on fears of further Fed rate increases. We think the current lack of
inflationary evidence defies a historically tight labor market and reinforces
the influence of technology and the power of global pricing constraints.
The bond market experienced a tough year in 1999 Tax-loss selling and asset
allocation shifts out of municipal securities precipitated massive outflows in
the fourth quarter, prompting bond funds to sell their municipal bond holdings.
This drove yields even higher and sent the net asset values of many funds lower,
accelerating outflows and leaving bond dealers reluctant to hold municipal
securities. Additionally, the bond market has suffered in recent months from
uncertainty over the outlook for future Fed monetary policy, given the
resilience of stock markets and the apparent acceleration of consumer demand at
year end. Also, we have noted that supply in the new issue market is down
substantially from last year.
- ----------
1 Please not that past performance is not indicative of future results.
2. On Tuesday, March 21, 2000 after this letter was written, the Fed raised
interest rates 0.25%.
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2 2000 Annual Report to Shareholders
<PAGE>
These factors, in addition to the considerable momentum going into 2000, may
mean that there is less financial restraint in the economy than previously
believed. The pace of demand is surpassing even optimistic assessments of the
economy's speed limit, threatening to reignite inflation and underscoring the
need for Fed vigilance and restraint.
Under "normal" market conditions, municipal investors pay for the tax-free
income benefits by getting a lower return. Today, however, investors are saving
on taxes without sacrificing returns. It is possible to buy double- and
triple-A-rated bonds yielding nearly 100% or more of similar maturity U.S.
Treasury bonds, well above the historical average of roughly 80%. We think these
yields represent extraordinarily good value for municipal securities.
Investment Strategy
As previously noted, the Fund seeks to maximize current interest income exempt
from federal income taxes to the extent consistent with prudent investment
management and preservation of capital.3 The Fund seeks to achieve this
objective by investing in intermediate- and long-term municipal securities which
have remaining maturities at the time of purchase of from three to more than
thirty years. As of February 29, 2000, the Fund's average weighted maturity was
21.0 years.
As of February 29, 2000, approximately 94.3% 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 64.6% 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 concentrated in transportation bonds (18.9%), hospital bonds
(16.6%) and general obligation bonds (14.6%).
While no guarantees can be made, our belief that municipal securities are
undervalued has led us to rebalance the Fund to capitalize on what we believe
will be a future bullish trend. In general, this means buying bonds carrying
maturities of 20 years or longer, with solid credit ratings and trading below
fair market value in price. We are targeting, among others, general obligation
bonds and high-grade revenue credits such as water, sewer and toll-road bonds.
Our investment strategy for the Fund has been to maximize our dividend yield. In
our view, the municipal bond market has provided us with excellent opportunities
during the reporting period. Since interest rates have gone up to higher levels,
we have been able to invest our excess cash at higher yields. In addition, we
have also been focusing on adding high-grade bonds to the Fund's portfolio.
The Fund's investment strategy going forward will be three-fold:
. We are lengthening maturities in the portfolio to take advantage of the
inexpensive valuations of municipal bonds relative to U.S. Treasuries
. We are focusing on investing in high grade issues
. We are investing in discount paper because this is where we believe we can
obtain the best value
Our goal is to sell off some of our intermediate-term maturities that were
defensive and stretch out longer on the yield curve to lock in today's higher
rates. We see the best opportunity for potential reward right now at the long
end of the curve. (The yield curve is the graphical depiction of the
relationship between the yield on bonds of the same credit quality but different
maturities.)
- ----------
3 Please note that a portion of the Fund's income may be subject to the
Alternative Minimum Tax ("AMT").
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Smith Barney Managed Municipals Fund Inc. 3
<PAGE>
Municipal Bond Market Outlook
We think the U.S. economy should remain stable this year, as low unemployment
and strong consumer confidence will likely support demand for goods.
Additionally, we think that the Fed has engineered a good balance between strong
economic growth and an "acceptable" rate of inflation.
Regarding further Fed tightenings, we think that such future moves would not be
detrimental to the bond market, particularly as the U.S. Treasury continues to
pay down debt and inflation remains moderate. It is our belief that any further
Fed policy actions have already been comfortably priced into the bond market. We
also believe that the good news is that the economy's "soft landing" is likely
to be at a higher annual growth rate than was previously thought possible due to
the possible emergence of a "New Economy," where technological advances can spur
economic growth without inflationary pressures because of higher productivity.
In our judgment, a number of factors bode well for the municipal bond market.
The new issue market is expected to shrink this year, boosting demand for bonds
currently outstanding and enhancing interest for the roughly $175 billion of new
municipals expected in 2000. Fiscal trends are another major plus. During past
economic downturns, some municipal issuers facing declining tax receipts were
hard-pressed to repay their bond obligations. Today, many state and local
governments boast budget surpluses. We believe these surpluses indicate that
investors will feel more comfortable holding municipals, even in a downturn.
Lastly, recent narrowing of spreads in the taxable market has made alternatives
less attractive. All of these trends help to explain why we remain optimistic
about the long-term prospects for the municipal bond market.
As always, we will be monitoring these events closely. Thank you for investing
in the Smith Barney Managed Municipals Fund Inc.
Sincerely,
/s/ Joseph P. Deane
Joseph P. Deane
Vice President and
Investment Officer
March 16, 2000
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4 2000 Annual Report to Shareholders
<PAGE>
<TABLE>
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Historical Performance -- Class A Shares
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Net Asset Value
------------------------------
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns(1)
===================================================================================================================================
<C> <C> <C> <C> <C> <C> <C>
2/29/00 $15.93 $14.16 $0.73 $0.00 $0.00 (6.62)%
- -----------------------------------------------------------------------------------------------------------------------------------
2/28/99 16.19 15.93 0.79 0.11 0.00 4.07
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2/28/98 15.61 16.19 0.79 0.48 0.00 12.30
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2/28/97 16.20 15.61 0.91 0.38 0.00 4.51
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2/29/96 15.47 16.20 0.90 0.08 0.00 11.34
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2/28/95 16.13 15.47 0.95 0.29 0.00 4.11
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2/28/94 16.71 16.13 0.88 0.90 0.00 7.41
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2/28/93 15.62 16.71 1.00 0.52 0.03 17.92
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2/29/92 14.98 15.62 1.05 0.00 0.02 11.79
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2/28/91 15.00 14.98 1.09 0.00 0.03 7.65
===================================================================================================================================
Total $9.09 $2.76 $0.08
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<CAPTION>
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Historical Performance -- Class B Shares
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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>
2/29/00 $15.92 $14.16 $0.65 $0.00 $0.00 (7.08)%
- -----------------------------------------------------------------------------------------------------------------------------------
2/28/99 16.19 15.92 0.71 0.11 0.00 3.48
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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
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2/29/96 15.47 16.20 0.82 0.08 0.00 10.78
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2/28/95 16.13 15.47 0.86 0.29 0.00 3.54
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2/28/94 16.71 16.13 0.80 0.90 0.00 6.86
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Inception*--2/28/93 15.81 16.71 0.31 0.52 0.01 11.26+
===================================================================================================================================
Total $5.69 $2.76 $0.01
===================================================================================================================================
</TABLE>
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Smith Barney Managed Municipals Fund Inc. 5
<PAGE>
<TABLE>
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Historical Performance -- Class L Shares
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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>
2/29/00 $15.92 $14.15 $0.64 $0.00 $0.00 (7.19)%
- -----------------------------------------------------------------------------------------------------------------------------------
2/28/99 16.18 15.92 0.70 0.11 0.00 3.49
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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
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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 $3.96 $1.34 $0.00
===================================================================================================================================
<CAPTION>
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Historical Performance -- Class Y Shares
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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>
2/29/00 $15.95 $14.18 $0.76 $0.00 $0.00 (6.44)%
- -----------------------------------------------------------------------------------------------------------------------------------
2/28/99 16.19 15.95 0.82 0.11 0.00 4.39
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2/28/98 15.60 16.19 0.82 0.48 0.00 12.56
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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 $4.19 $1.05 $0.00
===================================================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends monthly and capital gains, if
any, annually.
<TABLE>
<CAPTION>
Average Annual Total Returns
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Without Sales Charges(1)
-------------------------------------------------------------------------------------
Class A Class B Class L Class Y
===================================================================================================================================
<S> <C> <C> <C> <C>
Year Ended 2/29/00 (6.62)% (7.08)% (7.19)% (6.44)%
- -----------------------------------------------------------------------------------------------------------------------------------
Five Years Ended 2/29/00 4.90 4.36 4.30 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Ten Years Ended 2/29/00 7.26 N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Inception* through 2/29/00 9.74 5.92 6.35 4.87
===================================================================================================================================
<CAPTION>
With Sales Charges(2)
-------------------------------------------------------------------------------------
Class A Class B Class L Class Y
===================================================================================================================================
<S> <C> <C> <C> <C>
Year Ended 2/29/00 (10.33)% (11.09)% (8.99)% (6.44)%
- -----------------------------------------------------------------------------------------------------------------------------------
Five Years Ended 2/29/00 4.05 4.20 4.09 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Ten Years Ended 2/29/00 6.81 N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Inception* through 2/29/00 9.50 5.92 6.16 4.87
===================================================================================================================================
</TABLE>
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6 2000 Annual Report to Shareholders
<PAGE>
<TABLE>
<CAPTION>
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Cumulative Total Return
- -----------------------------------------------------------------------------------------------------------------------------------
Without Sales Charges(1)
===================================================================================================================================
<S> <C>
Class A (2/28/90 through 2/29/00) 101.46%
- -----------------------------------------------------------------------------------------------------------------------------------
Class B (Inception* through 2/29/00) 52.30
- -----------------------------------------------------------------------------------------------------------------------------------
Class L (Inception* through 2/29/00) 38.69
- -----------------------------------------------------------------------------------------------------------------------------------
Class Y (Inception* through 2/29/00) 26.31
===================================================================================================================================
</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.
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Smith Barney Managed Municipals Fund Inc. 7
<PAGE>
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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 1990--February 2000
[GRAPH]
<TABLE>
<CAPTION>
Smith Barney Lehman Bros.
Managed Municipals Funds Inc. Municipal Bond Fund Index Lipper Peer Group Average
<S> <C> <C> <C>
Feb\90 9,597 10,000 10,000
Feb\91 10,331 10,923 10,809
Feb\92 11,549 12,014 11,907
Feb\93 13,619 13,668 13,594
Feb\94 14,625 14,425 14,312
Feb\95 15,224 14,697 14,405
Feb\96 16,951 16,320 15,824
Feb\97 17,714 17,219 16,533
Feb\98 19,893 18,794 18,031
Feb\99 20,704 19,783 19,148
Feb\00 19,334 19,371 17,922
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class A shares on February
28, 1990, 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 29, 2000. 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. An investor may not invest directly
in an index. The Lipper Analytical Services, Inc. Peer Group Average
("Lipper Peer Group Average") is composed of an average of the Fund's peer
group of 271 mutual funds investing in municipal securities as of February
29, 2000. 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.
[GRAPH]
Top Ten States Represented*
- --------------------------------------------------------------------------------
Texas 17.1%
Colorado 9.4%
Massachusetts 8.8%
New York 8.6%
Ohio 6.8%
Michigan 4.5%
California 4.4%
Florida 3.6%
Georgia 3.0%
Utah 2.6%
* As a percentage of total investments.
[GRAPH]
Industry Breakdown*
- --------------------------------------------------------------------------------
8.7% Utilities
13.8% Water & Sewer
14.8% Other Municipals Bonds
4.2% Cogeneration Facility
5.0% Education
14.6% General Obligation
16.6% Hospital
1.9% Housing
1.5% Pollution Control Revenue
18.9% Transportation
- --------------------------------------------------------------------------------
8 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alabama -- 2.5%
Jefferson County, AL Sewer Revenue, Capital Improvements, Series A,
FGIC-Insured:
$ 11,000,000 AAA 5.125% due 2/1/29 $ 9,377,500
27,775,000 AAA 5.000% due 2/1/33 22,983,812
41,000,000 AAA 5.375% due 2/1/36 36,080,000
4,500,000 AAA Montgomery, AL BMC Special Care Facilities Financing Authority Revenue,
Baptist Health, Series B, 4.875% due 11/15/18 3,836,250
- -------------------------------------------------------------------------------------------------------------------------------
72,277,562
- -------------------------------------------------------------------------------------------------------------------------------
Alaska -- 0.3%
9,850,000 AA+ Valdez, AK Marine Terminal Revenue, Series A,
(British Petroleum Pipeline Project), 5.850% due 8/1/25 (b) 9,185,125
Arizona -- 1.9%
12,170,000 A- Greenlee County, AZ IDA, PCR, (Phelps Dodge Corp. Project),
5.450% due 6/1/09 11,774,475
3,500,000 A Maricopa County, AZ IDA, Multi-Family Housing Revenue, Series A,
6.500% due 10/1/25 3,517,500
Mesa, AZ IDA, Discovery Health Systems Revenue, Series A:
14,000,000 AAA 5.625% due 1/1/19 13,387,500
19,600,000 AAA 5.625% due 1/1/29 18,326,000
3,000,000 AAA Phoenix, AZ Civic Import Corp. Apartment Revenue, Series A, FSA-Insured,
5.000% due 7/1/25 2,542,500
1,500,000 AA+ Phoenix, AZ Civic Import Corp. (Municipal Courthouse Project),
Excise Tax Revenue, 5.250% due 7/1/24 1,355,625
1,200,000 AAA Phoenix, AZ Civic Import Corp. Water Systems Revenue, FGIC-Insured,
5.000% due 7/1/19 1,048,500
1,100,000 AA Phoenix, AZ General Obligation Unlimited, 4.750% due 7/1/19 937,750
2,415,000 AAA Scottsdale, AZ Preservation Authority, Excise Tax Revenue, FGIC-Insured,
4.500% due 7/1/24 1,886,719
- -------------------------------------------------------------------------------------------------------------------------------
54,776,569
- -------------------------------------------------------------------------------------------------------------------------------
California -- 4.4%
3,000,000 AAA Almeda Corridor Transportation Authority, CA Revenue, Series A,
4.750% due 10/1/25 2,467,500
2,250,000 A* Apple Valley, CA Unified School District, COP, 5.900% due 9/1/11 2,320,312
2,720,000 AAA Brawley, CA COP, (Water Systems Improvement Project), MBIA-Insured,
5.000% due 12/1/18 2,441,200
California Health Facilities Finance Authority Revenue:
4,000,000 A2* Cedars-Sinai Medical Center, Series A, 6.125% due 12/1/19 3,910,000
9,720,000 A Kaiser Permanente, Series B, 5.250% due 10/1/13 8,662,950
9,250,000 AAA California State Public Works Board, Lease Revenue,
Department of Corrections, Series A,
AMBAC-Insured, 5.250% due 1/1/21 8,579,375
California Statewide Community Development
Authority, COP:
2,000,000 A Kaiser Permanente Remarketed 7/8/98, 5.300% due 12/1/15 1,750,000
10,500,000 AA St. Joseph Health System, 5.125% due 7/1/17 9,253,125
1,000,000 AAA Campbell, CA Unified School District GO, FGIC-Insured, 5.000% due 8/1/17 903,750
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 5,350,000
15,215,000 AAA Corona, CA Redevelopment Agency, Tax Allocation, (Redevelopment
Project, Area A), Series A, FGIC-Insured, 5.500% due 9/1/24 14,321,118
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 9
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
California -- 4.4% (continued)
$ 5,000,000 AAA Fresno County, CA Financing Authority, Solid Waste Revenue,
(American Avenue Landfill Project), MBIA-Insured,
5.750% due 5/15/14 $ 5,100,000
3,000,000 AAA Inglewood, CA Public Financing Authority Revenue, Series A,
AMBAC-Insured, 5.250% due 8/1/21 2,730,000
2,500,000 AA Kings River Conservation District, CA, Pine Flat Power Revenue, Series A,
4.750% due 1/1/20 2,115,625
Long Beach, CA, Revenue, (Aquarium of the Pacific Project), Series A:
1,260,000 BBB 5.750% due 7/1/05 1,285,200
1,200,000 BBB 5.750% due 7/1/06 1,221,000
3,500,000 AAA Los Angeles, CA Public Works Financing Authority Lease Revenue,
AMBAC-Insured, 5.125% due 12/1/29 3,084,375
17,430,000 AAA Los Angeles, CA Unified School District, Series A, FGIC-Insured,
5.000% due 7/1/21 15,338,400
4,000,000 AAA Pasadena, CA Electrical Revenue, MBIA-Insured, 4.750% due 8/1/24 3,305,000
2,825,000 AAA Sacramento, CA, Airport Systems Revenue, Series B, FGIC-Insured,
5.000% due 7/1/18 2,531,906
2,420,000 AAA San Diego County, CA COP, Northern County Regional Expansion Revenue,
AMBAC-Insured, 5.250% due 11/15/19 2,250,600
2,000,000 AAA San Diego County, CA Redevelopment Agency, Tax Allocation (Centre City),
Series C, AMBAC-Insured, 4.750% due 9/1/24 1,650,000
17,000,000 AAA San Francisco, CA State Building Authority Lease Revenue, Civic Center
Complex, Series A, AMBAC-Insured, 5.250% due 12/1/21 15,640,000
5,500,000 AAA Santa Clara County, CA Finance Authority Lease Revenue,
AMBAC-Insured, 6.750% due 11/15/20 (b) 6,063,750
Solano County, CA COP (Capital Improvements Project), AMBAC-Insured:
850,000 AAA 5.000% due 11/15/13 819,188
1,150,000 AAA 5.000% due 11/15/14 1,096,812
1,515,000 AAA Victorville, CA Multi-Family Revenue, Wimbledon Apartments,
Series A, GNMA-Collateralized, 6.150% due 4/20/16 1,532,045
- -------------------------------------------------------------------------------------------------------------------------------
125,723,231
- -------------------------------------------------------------------------------------------------------------------------------
Colorado -- 9.4%
Adams County, CO School District No. 12, COP, Five Star Schools,
MBIA-Insured:
1,250,000 AAA 5.000% due 12/15/14 1,148,436
2,250,000 AAA 5.000% due 12/15/15 2,047,500
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) 16,743,750
1,750,000 A- Aspen, CO Sales Tax Revenue, 5.250% due 11/1/15 1,623,125
Colorado Health Facilities Authority Revenue:
7,500,000 A Series B, Remarketed 7/8/98, 5.350% due 8/1/15 6,534,375
4,500,000 AAA Sisters of Charity Leavenworth, MBIA-Insured, 5.125% due 12/1/18 3,988,125
12,765,000 BBB+ Colorado Springs, CO Airport Revenue, Series A, 7.000% due 1/1/22 (b)(c) 13,004,344
7,000,000 AAA Colorado Springs, CO Utilities Revenue, Sub-Lien Systems Improvement,
MBIA-Insured, 5.000% due 11/15/27 5,915,000
Dawson Ridge, CO Metropolitan District No. 1, (Escrowed to
Maturity with REFCO strips):
324,000,000 AAA Series A, zero coupon bond to yield 5.213% due 10/1/22 (d) 68,850,000
27,785,000 AAA Series B, zero coupon bond to yield 5.212% due 10/1/22 (b)(d) 5,904,312
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
10 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Colorado -- 9.4% (continued)
Denver, CO City & County Airport Revenue,
Series A:
$ 26,500,000 BBB+ 14.000% due 11/15/08 (b)(c) $ 39,915,625
9,915,000 BBB+ 8.000% due 11/15/25 (b)(d) 10,299,203
27,000,000 AAA MBIA-Insured, 5.250% due 11/15/23 23,928,750
3,585,000 BBB+ Pre-Refunded-- Escrowed with state and local government securities to
11/15/01 Call @ 100, 8.000% due 11/15/25 (b)(c) 3,768,728
Series C:
3,090,000 BBB+ 6.750% due 11/15/13 (c) 3,140,211
9,505,000 BBB+ 6.750% due 11/15/22 (b)(c) 9,564,406
410,000 AAA Pre-Refunded-- Escrowed with state and local government securities to
11/15/02 Call @ 102, 6.750% due 11/15/13 (c) 436,136
2,530,000 AAA Pre-Refunded-- Escrowed with state and local government securities to
11/15/02 Call @ 102, 6.750% due 11/15/22 (b)(c) 2,691,288
Series D:
17,760,000 AAA 7.000% due 11/15/25 (c) 17,848,800
4,665,000 Aaa* Pre-Refunded-- Escrowed with state and local government securities to
11/15/01 Call @ 100, 7.000% due 11/15/25 (b)(c) 4,828,275
4,840,000 AAA Denver, CO City & County School District No.1, General Obligation
Unlimited, FGIC-Insured, 5.000% due 12/1/23 4,126,100
E-470 Public Highway Authority, Colorado Revenue, Series A, MBIA-Insured:
1,120,000 AAA 5.000% due 9/1/15 1,023,400
23,000,000 AAA 4.750% due 9/1/23 18,917,500
1,000,000 AAA Fort Collins, CO Lease, COP, (Civic Center Facilities Project), MBIA-Insured,
5.125% due 12/1/18 901,250
- -------------------------------------------------------------------------------------------------------------------------------
267,148,639
- -------------------------------------------------------------------------------------------------------------------------------
Connecticut -- 0.4%
1,600,000 AAA Connecticut State Health & Educational Facilities Authority Revenue,
William H. Backus Hospital, AMBAC-Insured, 5.625% due 7/1/17 1,374,000
Mashantucket Western Pequot Tribe, Connecticut Special Revenue:
3,000,000 Baa3* Series A, 5.500% due 9/1/28 (e) 2,490,000
Series B:
1,000,000 Baa3* 5.550% due 9/1/08 (e) 972,500
2,000,000 Baa3* 5.700% due 9/1/12 (e) 1,905,000
6,500,000 Baa3* 5.750% due 9/1/18 (b)(e) 5,931,250
- -------------------------------------------------------------------------------------------------------------------------------
12,672,750
- -------------------------------------------------------------------------------------------------------------------------------
District of Columbia -- 0.9%
District of Columbia Revenue:
American Association for the Advancement of Science Revenue,
AMBAC-Insured:
3,000,000 AAA 5.250% due 1/1/16 2,778,750
9,250,000 AAA 5.125% due 1/1/27 7,931,875
Georgetown University, Series D, MBIA-Insured, Converted 5/1/98:
4,300,000 AAA 5.300% due 4/1/15 4,042,000
3,900,000 AAA 5.350% due 4/1/16 3,700,125
3,700,000 AAA 5.350% due 4/1/17 3,473,375
5,300,000 AAA 5.350% due 4/1/18 4,942,250
- -------------------------------------------------------------------------------------------------------------------------------
26,868,375
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 11
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Florida -- 3.6%
Boynton Beach, FL Multi-Family Housing Revenue, Clipper Cove Apartments:
$ 750,000 A+ 6.350% due 7/1/16 $ 758,438
1,325,000 A+ 6.400% due 7/1/21 1,333,279
Broward County, FL GO:
1,000,000 Aa2* 12.500% due 1/1/02 1,132,500
1,250,000 Aa2* 12.500% due 1/1/03 1,498,438
1,500,000 Aa2* 12.500% due 1/1/04 1,882,500
1,750,000 Aa2* 12.500% due 1/1/05 2,292,500
2,000,000 Aa2* 12.500% due 1/1/06 2,720,000
1,270,000 AAA Dade County, FL GO, MBIA-Insured, 5.125% due 10/1/21 1,122,363
12,900,000 AA+ Florida State Board of Education, Capital Outlay Public Education,
Series B, 4.500% due 6/1/27 10,013,625
3,400,000 AAA Florida State Correctional Privatization Commission COP, Youth
Detention Facility, Series C, AMBAC-Insured, 5.000% due 8/1/17 3,102,500
Florida State Department of Children & Families COP,
(South Florida State Hospital Project), AMBAC-Insured:
2,375,000 AAA 4.900% due 7/1/13 2,182,030
2,495,000 AAA 4.950% due 7/1/14 2,267,330
6,850,000 AA+ Florida State Department of Transportation, Series A, 4.750% due 7/1/24 5,642,688
6,190,000 AAA Hillsborough County, FL Capital Improvement Program Revenue,
(Mosi Project), Series A, MBIA-Insured, 5.125% due 7/1/22 5,485,888
Martin County, FL IDA, Indiantown Cogeneration:
10,000,000 BBB- Project A, 7.875% due 12/15/25 (b)(c) 10,000,000
6,010,000 BBB- Project B, 8.050% due 12/15/25 (c) 5,859,750
Miami-Dade County, FL:
6,800,000 AAA Professional Sports Franchise Facility, MBIA-Insured,
4.750% due 10/1/30 5,491,000
1,805,000 AAA School Board, Series C, FSA-Insured, 5.000% due 8/1/16 1,629,013
2,935,000 AAA Special Obligation, (Courthouse Center Project), Series B,
AMBAC-Insured, 4.750% due 4/1/20 2,480,075
Orange County, FL Tourist Development Tax Revenue,
AMBAC-Insured, Series A:
4,460,000 AAA 4.750% due 10/1/21 3,729,675
15,550,000 AAA 4.750% due 10/1/24 12,789,875
10,000,000 AAA Port St. Lucie, FL Utilities Revenue, Refunding & Improvement, Series A,
MBIA-Insured, 5.125% due 9/1/27 8,787,500
3,000,000 AAA St. Lucie, FL West Services District, Special Assessment Revenue,
Water Management Benefit, Series A, MBIA-Insured, 5.250% due 5/1/25 2,718,750
2,000,000 AAA Tallahassee, FL Energy Systems Revenue, Series A, 4.750% due 10/1/26 1,640,000
Tampa, FL Revenue Bonds, (Florida Aquarium Inc. Project),
(Pre-Refunded-- Escrowed with U.S. government securities
to 5/1/02 Call @ 102):
2,550,000 NR 7.550% due 5/1/12 (f) 2,738,063
3,000,000 NR 7.750% due 5/1/27 (b)(f) 3,236,250
- -------------------------------------------------------------------------------------------------------------------------------
102,534,030
- -------------------------------------------------------------------------------------------------------------------------------
Georgia -- 3.0%
Atlanta, GA Water & Wastewater Revenue, Series A, FGIC-Insured:
25,915,000 AAA 5.000% due 11/1/29 21,898,175
73,075,000 AAA 5.000% due 11/1/38 60,286,875
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
12 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Georgia -- 3.0% (continued)
$ 580,000 AA- Brunswick, GA Housing Authority, Multi-Family Housing Revenue,
Cypress Mill, FHA-Insured, 9.750% due 8/1/26 $ 602,974
3,500,000 BBB- Savannah, GA Economic Development Authority Revenue,
(College of Art & Design Inc. Project), 6.900% due 10/1/29 3,486,875
- -------------------------------------------------------------------------------------------------------------------------------
86,274,899
- -------------------------------------------------------------------------------------------------------------------------------
Hawaii -- 0.7%
Hawaii State Department of Budget & Finance, Special Purpose Revenue,
Kasier Permanente, Series A:
15,045,000 A 5.100% due 3/1/14 12,882,281
4,000,000 A 5.150% due 3/1/15 3,400,000
3,000,000 AAA Hawaii State GO, Series CP, FGIC-Insured, 5.000% due 10/1/17 2,700,000
1,000,000 AAA Hawaii State, GO Unlimited, MBIA-Insured,
4.750% due 4/1/18 860,000
- -------------------------------------------------------------------------------------------------------------------------------
19,842,281
- -------------------------------------------------------------------------------------------------------------------------------
Illinois -- 2.3%
12,500,000 AAA Chicago, IL O'Hare International Airport Revenue, Second Lien,
Series C, MBIA-Insured, 5.000% due 1/1/18 10,953,125
3,585,000 AAA Chicago, IL Wastewater Transmission Revenue, Second Lien,
MBIA-Insured, 5.750% due 1/1/25 3,401,269
8,000,000 AAA Chicago, IL Water Revenue, 5.250% due 11/1/27 6,920,000
Illinois Health Facilities Authority Revenue:
6,500,000 AAA Alexian Brothers Health Systems, FSA-Insured, 5.000% due 1/1/19 5,614,375
2,000,000 AAA Edward Obligation Group, Series A, AMBAC-Insured,
5.250% due 2/15/17 1,832,500
6,680,000 Aaa* Memorial Health Systems, MBIA-Insured, 5.250% due 10/1/18 6,053,750
500,000 Aaa* Rockford Health Systems, AMBAC-Insured, 5.100% due 8/15/11 475,625
1,000,000 AAA Rush Presbyterian, St. Lukes, Series A, MBIA-Insured,
5.250% due 11/15/16 921,250
2,750,000 AAA Illinois State COP, Department of Central Management Services,
Public Aid Building, MBIA-Insured, 5.650% due 7/1/17 2,646,875
Illinois State GO, FGIC-Insured:
4,150,000 AAA 5.250% due 6/1/18 3,802,438
3,300,000 AAA 5.375% due 2/1/19 3,048,375
14,375,000 AAA 5.250% due 12/1/20 12,955,469
2,000,000 AAA Springfield, IL GO, Series C, MBIA-Insured, 5.375% due 12/1/21 1,817,500
University of Illinois Revenue Bonds, Auxiliary Facilities Systems,
MBIA-Insured:
1,000,000 AAA 5.375% due 10/1/13 970,000
3,430,000 AAA Series A, 5.750% due 4/1/19 3,301,375
- -------------------------------------------------------------------------------------------------------------------------------
64,713,926
- -------------------------------------------------------------------------------------------------------------------------------
Indiana -- 1.0%
4,500,000 AAA Delaware County, IN Hospital Authority, Cardinal Health
Systems, AMBAC-Insured, 5.000% due 8/1/16 3,982,500
3,005,000 AAA Indiana Bond Bank, State Revenue, Guarantee-State Revolving
Fund, (Project A), 6.250% due 2/1/09 3,140,225
Indiana Health Facilities Financing Authority Hospital Revenue,
Riverview Hospital:
305,000 Baa1* 6.500% due 8/1/01 308,431
200,000 Baa1* 6.600% due 8/1/02 203,250
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 13
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Indiana -- 1.0% (continued)
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 $ 2,565,000
2,775,000 AAA 5.250% due 1/1/15 2,636,250
Northwest Allen County, IN Middle School Building Corp.,
First Mortgage, MBIA-Insured:
715,000 AAA 4.800% due 1/15/13 637,244
245,000 AAA 4.800% due 7/15/13 218,050
535,000 AAA 4.900% due 7/15/14 476,819
15,000,000 AAA Rockport, IN PCR, (Michigan Power Co. Project), Series A,
AMBAC-Insured, 6.550% due 6/1/25 (b) 15,450,000
- -------------------------------------------------------------------------------------------------------------------------------
29,617,769
- -------------------------------------------------------------------------------------------------------------------------------
Kansas -- 0.4%
2,200,000 Aa3* Douglas County, KA Sales Tax GO, 5.000% due 2/1/14 2,043,250
Kansas State DFA Revenue, Public Water Supply Revolving Loan, Series 2:
1,110,000 AA-++ 5.250% due 4/1/15 1,051,725
1,250,000 AA-++ 5.000% due 4/1/16 1,142,188
1,000,000 AA-++ 4.750% due 4/1/17 865,000
3,000,000 AAA Topeka, KS Public Building Commission, (10th & Jackson Projects),
MBIA-Insured, 4.875% due 6/1/19 2,565,000
3,145,000 AAA Wyandotte County, KS Unified School District NO. 202 GO,
AMBAC-Insured, 4.750% due 9/1/17 2,708,631
- -------------------------------------------------------------------------------------------------------------------------------
10,375,794
- -------------------------------------------------------------------------------------------------------------------------------
Louisiana -- 0.1%
1,680,000 Aaa* Orleans Parish, LA Parishwide School District, Series A, FGIC-Insured,
5.125% due 9/1/14 1,572,900
- -------------------------------------------------------------------------------------------------------------------------------
Maine -- 0.1%
Maine Finance Authority Revenue, Electric Rate Stabilization,
Series A, FSA-Insured:
1,750,000 AAA 5.000% due 7/1/18 1,533,438
1,000,000 AAA MBIA-Insured, 5.200% due 11/1/18 910,000
- -------------------------------------------------------------------------------------------------------------------------------
2,443,438
- -------------------------------------------------------------------------------------------------------------------------------
Maryland -- 0.6%
Baltimore, MD GO, Series A, FGIC-Insured:
2,745,000 AAA 5.750% due 10/15/15 2,878,819
1,165,000 AAA 5.750% due 10/15/16 1,221,792
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) 2,030,000
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 1,390,469
56,000,000 NR Maryland State Energy Financing Administration, Solid Waste
Disposal Revenue, (Hagerstown Project),
9.000% due 10/15/16 (b)(c)(d) 5,040,000
3,825,000 A Maryland State Health & Higher Educational Facilities Authority Revenue,
Kaiser Permanente, Series A, 5.375% due 7/1/15 3,399,469
- -------------------------------------------------------------------------------------------------------------------------------
15,960,549
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
14 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Massachusetts -- 8.8%
$ 2,200,000 AAA Holyoke, MA GO, Series A, FSA-Insured, 5.500% due 6/15/16 $ 2,147,750
Massachusetts Bay Transportation Authority, General Transportation System:
14,490,000 AAA Series A, MBIA-Insured, 4.500% due 3/1/26 11,265,975
Series B:
6,000,000 AAA AMBAC-Insured, 5.375% due 3/1/25 5,400,000
FSA-Insured:
15,000,000 AAA 5.250% due 3/1/20 13,481,250
32,200,000 AAA 5.250% due 3/1/26 28,376,250
Massachusetts Municipal Wholesale Electric Co., Power Supply
System Revenue:
Series A, AMBAC-Insured:
5,900,000 AAA 5.000% due 7/1/14 5,428,000
2,950,000 AAA 5.000% due 7/1/17 2,625,500
9,435,000 AAA Series B, MBIA-Insured, 5.000% due 7/1/17 8,397,150
Massachusetts State College Building Authority Revenue,
Series 1, MBIA-Insured:
3,500,000 Aaa* 5.125% due 5/1/19 3,180,625
9,430,000 Aaa* 5.375% due 5/1/39 8,321,975
1,000,000 A- Massachusetts State Development Finance Agency Revenue,
Clarke University Issue, 5.125% due 7/1/18 851,250
Massachusetts State Health and Educational Facilities Authority Revenue:
7,500,000 AA- Boston College Issue, Series L, 5.000% due 6/1/26 6,309,375
2,000,000 A Hebrew Rehabilitation Center for Aged, Series C, 5.250% due 7/1/17 1,715,000
Partners Healthcare Systems, Series B:
3,000,000 AA- 5.250% due 7/1/13 2,707,500
1,000,000 AA- 5.250% due 7/1/14 888,750
2,000,000 AA- 5.250% due 7/1/15 1,760,000
7,000,000 AA- 5.125% due 7/1/19 5,783,750
4,500,000 AAA Northeastern University, Series 1, MBIA-Insured, 5.000% due 10/1/29 3,768,750
3,500,000 AAA Massachusetts State HFA, Housing Development, Series B,
MBIA-Insured, 5.300% due 12/1/17 3,263,750
Massachusetts State Turnpike Authority, Metro Highway Systems
Revenue, Series A:
6,900,000 AAA 5.250% due 1/1/29 6,072,000
AMBAC-Insured:
58,860,000 AAA 4.750% due 1/1/34 46,572,975
10,000,000 AAA 5.000% due 1/1/39 8,237,500
MBIA-Insured:
9,625,000 AAA 5.125% due 1/1/23 8,433,904
8,000,000 AAA 5.250% due 1/1/29 7,070,000
2,100,000 AAA 5.000% due 1/1/37 1,735,125
11,000,000 Aaa* Massachusetts State Water Pollution Abatement, New Bedford PG-Series A,
FGIC-Insured, 4.750% due 2/1/26 8,923,750
Massachusetts State Water Resources Authority:
15,785,000 AAA MBIA-Insured, 5.000% due 12/1/25 13,496,175
Series A, FSA-Insured:
4,000,000 AAA 4.750% due 8/1/27 3,230,000
18,500,000 AAA 4.750% due 8/1/37 14,499,375
Series B:
3,000,000 A1* 5.500% due 3/1/17 2,868,750
11,635,000 AAA MBIA-Insured, 4.750% due 12/1/21 9,686,138
4,095,000 AAA Series C, MBIA-Insured, 5.250% due 12/1/20 3,700,855
- -------------------------------------------------------------------------------------------------------------------------------
250,199,147
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 15
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Michigan -- 4.5%
$ 1,790,000 AAA Caledonia, MI Community Schools, FGIC-Insured, 4.875% due 5/1/19 $ 1,537,162
2,175,000 AAA Coopersville, MI Area Public Schools, MBIA-Insured, 4.750% due 5/1/19 1,837,875
3,000,000 AAA Detroit, MI Water Supply System, Series A, FGIC-Insured,
5.750% due 7/1/26 2,876,250
5,000,000 AAA Detroit & Wayne Counties, MI Stadium Authority Revenue, FGIC-Insured,
5.250% due 2/1/27 4,400,000
2,090,000 AAA Grand Valley, MI State University Revenue, MBIA-Insured,
5.250% due 10/1/17 1,990,725
2,140,000 AAA Ingham County, MI Building Authority, AMBAC-Insured,
5.000% due 11/1/16 1,917,975
23,000,000 AAA Michigan Public Power Agency Revenue, (Belle River Project),
Series A, MBIA-Insured, 5.250% due 1/1/18 21,303,750
Michigan State Hospital Finance Authority Revenue, Healthcare Systems:
5,355,000 A 6.125% due 11/15/19 4,913,213
2,500,000 A 6.250% due 11/15/24 2,300,000
Michigan State Strategic Fund, Resource Recovery Limited Obligation
Revenue, Central Wayne Energy:
Series A:
8,000,000 NR 6.900% due 7/1/19 (c) 7,260,000
3,000,000 NR 7.000% due 7/1/27 (c) 2,685,000
12,000,000 NR Series B, 6.800% due 7/1/13 (c) 11,070,000
5,500,000 AAA Michigan State Trunk Line, Series A, 5.000% due 11/1/26 4,633,750
56,625,000 NR Midland County, MI Economic Development Corp., PCR,
Subordinated Limited Obligation, Series B, 9.500% due 7/23/09 (b)(c) 58,327,148
- -------------------------------------------------------------------------------------------------------------------------------
127,052,848
- -------------------------------------------------------------------------------------------------------------------------------
Minnesota -- 2.2%
400,000 Aaa* Burnsville, MN Multi-Family Revenue, Refunding Housing Coventry Court,
Series A, GNMA-Collaterized, 5.900% due 9/20/19 387,000
Hennepin County, MN Lease Revenue, COP:
2,955,000 Aa1* 5.000% due 11/15/14 2,733,375
3,105,000 Aa1* 5.000% due 11/15/15 2,860,481
Minneapolis & St. Paul, MN Airport Revenue, Series A:
14,990,000 AAA 5.125% due 1/1/25 13,153,725
2,350,000 AAA 5.000% due 1/1/30 1,991,625
28,950,000 AAA FGIC-Insured, 5.125% due 1/1/31 25,077,938
Minnesota State, General Obligation Unlimited:
7,400,000 AAA 5.250% due 8/1/18 6,863,500
6,375,000 AAA 5.250% due 8/1/19 5,880,938
4,000,000 AA+ North St. Paul Maplewood, MN ISD, No. 622, Series A,
5.125% due 2/1/20 3,570,000
- -------------------------------------------------------------------------------------------------------------------------------
62,518,582
- -------------------------------------------------------------------------------------------------------------------------------
Mississippi -- 0.3%
10,890,000 AAA Harrison County, MS Wastewater Management & Solid Waste,
FGIC-Insured, 4.750% due 2/1/27 8,766,450
- -------------------------------------------------------------------------------------------------------------------------------
Missouri -- 0.6%
4,750,000 AAA Fenton, MO COP, (Capital Improvements Project), MBIA-Insured,
5.125% due 9/1/17 4,328,438
2,235,000 Aa1* Missouri State Environmental Improvement & Energy Resources Authority,
PCR, State Revolving Fund, Series E, 5.250% due 1/1/19 2,067,375
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
16 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Missouri -- 0.6% (continued)
$ 4,475,000 Aaa* Poplar Bluff, MO Public Building Corp., Leasehold Revenue,
MBIA-Insured, 5.100% due 9/1/18 $ 3,982,750
6,055,000 Aaa* Springfield, MO (Capital Improvements Project), Public Building Corp.
Leasehold Revenue, AMBAC-Insured, 5.375% due 6/1/19 5,661,425
- -------------------------------------------------------------------------------------------------------------------------------
16,039,988
- -------------------------------------------------------------------------------------------------------------------------------
Montana -- 1.1%
33,350,000 NR Montana State Board of Investment Resource Recovery Revenue,
(Yellowstone Energy LP Project), 7.000% due 12/31/19 (b)(c) 31,265,625
- -------------------------------------------------------------------------------------------------------------------------------
Nevada -- 0.3%
5,500,000 AAA Clark County, NV Passenger Facility Charge Revenue, Las Vegas
McCarran International, MBIA-Insured, 4.750% due 7/1/22 4,530,625
5,575,000 AAA Nevada State GO, (Projects 66 & 67), Series A, FGIC-Insured,
5.000% due 5/15/28 4,668,951
- -------------------------------------------------------------------------------------------------------------------------------
9,199,576
- -------------------------------------------------------------------------------------------------------------------------------
New Hampshire -- 0.1%
3,000,000 AAA Manchester, NH Apartment Revenue, Series A, MBIA-Insured,
4.500% due 1/1/28 2,298,750
- -------------------------------------------------------------------------------------------------------------------------------
New Jersey -- 1.9%
2,465,000 Aaa* Mount Holly, NJ Municipal Utilities Authority Sewer Revenue,
MBIA-Insured, 4.750% due 12/1/28 1,990,488
2,500,000 Aaa* New Jersey EDA Revenue, (Hillcrest Health Service Systems Project),
AMBAC-Insured, 5.375 due 1/1/16 2,368,750
3,000,000 NR New Jersey EDA Revenue, The Seeing Eye Inc., 6.200% due 12/1/24 2,955,000
New Jersey Health Care Facilities Financing Authority Revenue:
1,000,000 AAA Barnabas Health Services, Series B, 4.750% due 7/1/28 800,000
Barnert Hospital, MBIA-Insured:
495,000 AAA 4.750% due 2/1/15 433,125
685,000 AAA 4.750% due 8/1/15 598,519
575,000 AAA 4.750% due 8/1/16 495,219
5,000,000 AAA FSA-Insured, 5.250% due 7/1/19 4,506,250
2,500,000 BBB Rahway Hospital Obligation Group, 5.000% due 7/1/08 2,209,375
New Jersey State, GO:
22,000,000 AA+ 4.500% due 2/1/17 18,452,500
13,805,000 AA+ 4.500% due 2/1/18 11,475,405
2,250,000 Aa2* New Jersey State, Transportation Trust Fund, Series A,
5.000% due 6/15/17 2,013,750
South Jersey, Transportation Systems Authority Revenue, AMBAC-Insured:
3,850,000 AAA 5.000% due 11/1/16 3,474,625
2,000,000 AAA 5.000% due 11/1/17 1,790,000
2,000,000 AAA 5.000% due 11/1/18 1,775,000
- -------------------------------------------------------------------------------------------------------------------------------
55,338,006
- -------------------------------------------------------------------------------------------------------------------------------
New Mexico -- 0.1%
2,400,000 AAA New Mexico Mortgage Financing Authority, Single-Family Mortgage
Program, General Obligation Unlimited, FNMA,
GNMA & FHLMC-Collateralized, 5.000% due 9/1/17 2,175,000
- -------------------------------------------------------------------------------------------------------------------------------
New York -- 8.6%
3,470,000 Aaa* Allegany County, NY IDA Civic Facilities Revenue, Alfred University,
MBIA-Insured, 5.000% due 8/1/18 3,079,625
1,710,000 AA Housing Corp. of New York Revenue, 5.500% due 11/1/20 1,568,925
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 17
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York -- 8.6% (continued)
$ 9,500,000 AAA Metropolitan Transportation Authority of New York, Commuter Facilities
Revenue, Series D, MBIA-Insured, 5.125% due 7/1/22 $ 8,324,375
Metropolitan Transportation Authority of New York:
Dedicated Tax Fund, Transit Facilities Revenue:
Series A:
13,465,000 AAA FGIC-Insured, 5.875% due 4/1/25 13,313,519
4,190,000 AAA FGIC-Insured, 4.750% due 4/1/28 3,372,950
10,000,000 AAA FSA-Insured, 5.000% due 4/1/17 8,925,000
2,500,000 AAA Series B, 4.875% due 7/1/18 2,159,375
550,000 AAA Series C, FSA-Insured, 4.750% due 7/1/16 478,500
1,100,000 AAA Municipal Assistance Corp. for City of Troy, NY Series A,
MBIA-Insured, 5.000% due 1/15/16 998,250
11,000,000 AAA Nassau County, NY Healthcare Corp., Health Systems Revenue,
FSA-Insured, 5.500% due 8/1/19 10,285,000
2,500,000 AAA Nassau County, NY IDA Civic Facilities Revenue,
(Hofstra University Project), 4.750% due 7/1/28 2,009,375
3,000,000 AAA New York, NY City Health & Hospital Corp. Revenue, Health Systems,
Series A, 5.000% due 2/15/20 2,583,750
4,000,000 AAA New York, NY City IDA Facilities Revenue, (Lighthouse International Project),
MBIA-Insured, 4.500% due 7/1/33 3,015,000
1,280,000 AAA New York, NY IDA, Civic Facilities Revenue, (Trinity Episcopal
School Corp. Project ), MBIA-Insured, 5.250% due 6/15/17 1,187,200
13,500,000 AAA New York, NY Metropolitan Triborough Authority, Series A, AMBAC-Insured,
5.250% due 1/1/29 11,812,500
11,950,000 AAA New York, NY Municipal Water Finance Authority, Water & Sewer Systems
Revenue, Series B, MBIA-Insured, 5.375% due 6/15/19 11,143,375
New York, NY Transitional Finance Authority Revenue, Future Tax Secured:
6,450,000 AA Series A, 4.750% due 11/15/16 5,603,435
Series B:
13,915,000 AA 4.750% due 11/1/16 12,088,656
4,515,000 AA 4.750% due 11/1/17 3,877,256
2,530,000 AAA Series C, FGIC-Insured, 5.000% due 5/1/16 2,289,650
New York State Dormitory Authority:
5,000,000 AAA City University System, Consolidated Third General Resolution,
Series 2, MBIA-Insured, 6.250% due 7/1/19 5,268,750
1,000,000 Aaa* Culinary Institute of America, MBIA-Insured, 5.000% due 7/1/17 896,250
Iona College, MBIA-Insured:
485,000 AAA 6.600% due 7/1/07 502,581
420,000 AAA 6.600% due 7/1/08 435,225
555,000 AAA 6.600% due 7/1/09 574,425
540,000 AAA 6.700% due 7/1/10 559,575
Lease Revenue, Court Facilities, City of NY Issue:
7,000,000 AAA AMBAC-Insured, 5.750% due 5/15/30 6,755,000
10,250,000 A- 6.000% due 5/15/39 9,891,250
Mental Health Services Facilities Improvement Revenue, FSA-Insured:
4,000,000 AAA Series C, 5.125% due 8/15/17 3,615,000
2,000,000 AAA Series D, 5.125% due 8/15/17 1,807,500
13,765,000 AAA Montefiore Medical Center, AMBAC-Insured, 5.250% due 2/1/15 12,732,625
5,000,000 AAA North General Hospital, Series G, AMBAC-Insured, 5.200% due 2/15/15 4,643,750
5,730,000 AAA NY Presbyterian Hospital, AMBAC-Insured, 4.750% due 8/1/27 4,562,513
13,635,000 AAA State University Educational Facilities, Series A, MBIA-Insured,
5.000% due 5/15/17 12,220,369
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
18 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
New York -- 8.6% (continued)
<S> <C> <C> <C>
$ 7,000,000 A- New York State Energy Research & Development Authority PCR,
(Lilco Project), Series A, Remarketed 3/1/99, 5.150% due 3/1/16 $ 6,265,000
2,000,000 A New York State GO, 12.000% due 11/15/03 2,462,500
6,000,000 AAA New York State Medical Care Facilities Finance Agency Revenue,
FGIC-Insured, 5.250% due 2/15/19 5,422,500
6,530,000 Aa2* New York State Mortgage Agency Revenue, Homeowner Mortgage
Series 80, 5.100% due 10/1/17 5,950,463
New York State Thruway Authority, Highway & Bridge Transportation Fund,
FGIC-Insured:
7,010,000 AAA Series A, FGIC-Insured, 5.000% due 4/1/19 6,168,800
2,320,000 AAA Series B, 5.000% due 4/1/17 2,082,200
New York State Urban Development Corp. Revenue,
Correctional Capital Facilities:
4,000,000 AAA AMBAC-Insured, 5.250% due 1/1/18 3,665,000
FSA-Insured:
7,500,000 AAA 5.000% due 1/1/19 6,571,875
5,000,000 AAA 5.000% due 1/1/20 4,337,500
3,250,000 AAA Series A, FSA-Insured, 5.250% due 1/1/21 2,920,938
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 7/1/18 945,000
Triborough Bridge & Tunnel Authority of New York, General Purpose
Revenue Bonds:
Series A:
10,000,000 Aa3* 5.200% due 1/1/20 8,937,500
11,000,000 Aa3* 5.000% due 1/1/24 9,418,750
5,000,000 AAA Special Obligation, MBIA-Insured, 4.750% due 1/1/24 4,106,250
3,000,000 Aa3* Series B, 5.500% due 1/1/30 2,737,500
2,000,000 AAA Yonkers, NY GO, FGIC-Insured, Series B, 5.000% due 9/1/17 1,772,500
- -------------------------------------------------------------------------------------------------------------------------------
246,344,805
- -------------------------------------------------------------------------------------------------------------------------------
North Carolina -- 1.8%
4,500,000 A2* Carteret County, NC COP, (Elementary School Project),
6.500% due 2/1/07 4,663,125
2,500,000 AA+ Charlotte, NC, Water & Sewer Systems Revenue, 5.250% due 6/1/24 2,268,750
North Carolina Medical Care Commission:
Health Care Facilities Revenue:
3,000,000 AA Carolina Medicorp Project, 5.125% due 5/1/16 2,655,000
4,750,000 AA Duke University Health Systems, Series A, 5.000% due 6/1/23 3,918,750
Novant Health Project, Series B:
655,000 AA 5.000% due 10/1/16 569,031
1,095,000 A 5.000% due 10/1/17 936,225
Hospital Revenue:
4,500,000 AA- First Health of the Carolinas, 4.750% due 10/1/26 3,510,000
1,500,000 A+ Gaston Health Care, 5.000% due 12/15/12 1,366,875
14,265,000 AAA Pitt County Memorial Hospital, Series A, MBIA-Insured,
4.750% due 12/1/28 11,305,013
1,000,000 Aaa* Wayne Memorial Hospital, 5.000% due 10/1/21 860,000
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 19
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
North Carolina -- 1.8% (continued)
<S> <C> <C> <C>
$ 13,005,000 AAA North Carolina Municipal Power Agency No.1, Catawaba Electric Revenue,
Series A, AMBAC-Insured, 5.375% due 1/1/20 (b) $11,883,319
2,500,000 AA+ Raleigh, NC Combined Enterprise System Revenue, 4.750% due 3/1/19 2,109,375
500,000 AAA Sampson Area Development Corp., Installment Payment Revenue,
MBIA-Insured, 4.750% due 6/1/19 422,500
University of North Carolina Hospital, Chapel Hill Revenue, AMBAC-Insured:
1,455,000 AAA 5.250% due 2/15/17 1,360,425
3,125,000 AAA 5.000% due 2/15/21 2,695,313
1,250,000 AAA 5.000% due 2/15/24 1,060,938
- -------------------------------------------------------------------------------------------------------------------------------
51,584,639
- -------------------------------------------------------------------------------------------------------------------------------
North Dakota -- 0.0%
1,000,000 AAA Burleigh County, ND Health Care Revenue, Medcenter One Inc.,
MBIA-Insured, 5.250% due 5/1/13 941,250
- -------------------------------------------------------------------------------------------------------------------------------
Ohio -- 6.8%
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) 13,807,063
18,000,000 AAA 5.375% due 1/1/22 16,402,500
8,375,000 AAA Akron, OH EDA Revenue, MBIA-Insured, 5.000% due 12/1/18 7,422,344
3,000,000 Aaa* Akron-Summit County, OH Public Library GO, Series A, FGIC-Insured,
5.000% due 12/1/15 2,718,750
1,000,000 Aaa* Brecksville-Broadview Heights, OH City School District,
FGIC-Insured, 6.500% due 12/1/16 1,055,000
Clermont County, OH Hospital Facilities Revenue, Mercy Health
Systems, Series B, AMBAC-Insured:
3,415,000 AAA 5.625% due 9/1/16 3,333,894
1,000,000 AAA 5.625% due 9/1/21 948,750
Cleveland, OH Waterworks Revenue, Refunding & Improvement,
First Mortgage, Series H, MBIA-Insured:
1,000,000 AAA 5.625% due 1/1/13 995,000
15,000 AAA 5.700% due 1/1/14 13,894
985,000 AAA Pre-Refunded-- Escrowed with state and local government
securities to 1/1/06 Call @ 102, 5.700% due 1/1/14 (c) 1,028,094
3,000,000 AAA Cleveland-Cuyahoga County, OH Port Authority Revenue, Rock & Roll
Hall of Fame, AMBAC-Insured, 5.400% due 12/1/15 2,917,500
Cuyahoga County, OH Hospital Revenue, University Hospital Systems,
AMBAC-Insured:
2,500,000 AAA 5.400% due 1/15/19 2,337,500
7,000,000 AAA 5.500% due 1/15/30 6,405,000
Cuyahoga County, OH Hospital Revenue, Refunding and Improvement:
1,000,000 AAA (Metrohealth System Project), MBIA-Insured, 5.625% due 2/15/17 971,250
Series A:
3,550,000 AAA 5.125% due 2/15/13 (b) 3,372,500
6,680,000 AAA 5.125% due 2/15/15 6,187,350
3,025,000 AAA 5.125% due 2/15/16 2,779,219
4,890,000 AAA 5.125% due 2/15/17 4,456,013
13,935,000 AAA 5.250% due 2/15/19 12,837,619
Series B:
1,250,000 AA- 5.250% due 1/1/15 1,129,688
3,750,000 AA- 5.125% due 1/1/29 3,046,875
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
20 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
Ohio -- 6.8% (continued)
<S> <C> <C> <C>
$ 4,000,000 AAA Delaware County, OH Sewer District, GO, MBIA-Insured,
4.750% due 12/1/24 $ 3,240,000
4,065,000 AAA Franklin County, OH Convention Facilities Authority, Tax & Lease Revenue
Anticipation Bonds, MBIA-Insured, 5.000% due 12/1/17 3,643,256
Hamilton County, OH Sales Tax, MBIA-Insured:
1,500,000 AAA Football Project-A, 4.750% due 12/1/27 1,213,125
9,650,000 AAA Football Project-B, 5.000% due 12/1/27 8,154,250
1,520,000 Aa3* Lakewood, OH GO, 5.125% due 12/1/17 1,385,100
Lucas County, OH Hospital Revenue, Promedia Healthcare
Obligation Group, AMBAC-Insured:
10,000,000 AAA 5.375% due 11/15/23 9,037,500
35,550,000 AAA 5.375% due 11/15/29 31,728,375
3,000,000 Aaa* Medina, OH City School District, GO FGIC-Insured, 5.000% due 12/1/18 2,651,250
3,025,000 Aaa* Muskingum County, OH Improvement Facilities, GO, MBIA-Insured,
5.125% due 12/1/19 2,707,375
1,630,000 AA- New Lexington, OH School District, GO, 5.375% due 12/1/21 1,497,563
Ohio State Building Authority, State Facilities:
2,725,000 AA- Administration Building Fund Projects, Series A, 5.000% due 10/1/15 2,472,938
Adult Correctional Buildings Funds Projects, Series A:
5,000,000 AA- 5.000% due 10/1/18 4,431,250
5,010,000 AA- 5.000% due 4/1/16 4,509,000
2,875,000 A2* Ohio State Higher Educational Facilities Revenue,
(John Carroll University Project), 5.850% due 4/1/20 2,799,531
1,500,000 NR Ohio State Solid Waste Revenue, Republic Engineered Steels Inc.,
9.000% due 6/1/21 (c) 750,000
2,670,000 AAA Ohio State Water Development Authority Revenue, Water Development,
Fresh Water Series, FSA-Insured, 5.000% due 12/1/16 2,416,350
6,000,000 AA- Olentangy, OH, Local School District, GO, 5.000% due 12/1/27 5,092,500
2,955,000 AAA Parma, OH, GO, Series A, FGIC-Insured, 5.000% due 12/1/18 2,611,481
8,000,000 AAA South-Western City School District, OH Franklin & Pickway County,
AMBAC-Insured, 4.750% due 12/1/26 6,340,000
1,585,000 AAA Twinsburg, OH Local School District, FGIC-Insured,
5.900% due 12/1/21 1,575,094
1,525,000 AAA University of Akron, OH General Receipts, AMBAC-Insured,
5.250% due 1/1/22 1,374,406
- -------------------------------------------------------------------------------------------------------------------------------
193,796,147
- -------------------------------------------------------------------------------------------------------------------------------
Oklahoma -- 0.1%
1,975,000 AA Tulsa, OK Industrial Authority, Hospital Revenue, (St. John's Medical
Center Project), 6.250% due 2/15/17 2,086,094
1,000,000 AA- Woods County, OK IDA, Revenue Refunding, (Cargill Inc. Project),
6.250% due 10/1/14 1,045,000
- -------------------------------------------------------------------------------------------------------------------------------
3,131,094
- -------------------------------------------------------------------------------------------------------------------------------
Oregon -- 1.0%
6,650,000 AA Clackamas County, OR Hospital Facilities Revenue, Legacy Health Systems,
5.250% due 2/15/17 6,043,188
2,860,000 AAA Clackamas & Washington Counties, OR School District No.3, FGIC-Insured,
5.000% due 6/1/15 2,599,025
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 21
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
Oregon -- 1.0% (continued)
<S> <C> <C> <C>
Oregon State Department of Administrative Services Corp., Series A,
AMBAC-Insured:
$ 7,155,000 AAA 4.875% due 5/1/16 $ 6,341,119
6,505,000 AAA 4.875% due 5/1/17 5,740,663
6,950,000 AA Oregon State GO, Series B, 6.375% due 8/1/24 (b) 7,045,563
- -------------------------------------------------------------------------------------------------------------------------------
27,769,558
- -------------------------------------------------------------------------------------------------------------------------------
Pennsylvania -- 2.5%
1,000,000 Aaa* Delaware County, PA University Authority Revenue, Villanova University,
Series A, MBIA-Insured, 5.000% due 12/1/18 881,250
1,290,000 Aaa* Lower Bucks County, PA Joint Municipal Authority, Sewer & Water Revenue,
FSA-Insured, 5.000% due 11/15/17 1,146,488
6,000,000 AAA Montgomery County, PA Higher Education & Health Authority Revenue,
Holy Redeemer Health, Series A, 5.250% due 10/1/17 5,422,500
2,860,000 AAA Pennsylvania Cambria School District, FGIC-State Aid Withholding,
4.900% due 8/15/17 2,491,775
Pennsylvania Economic Development Financing Authority, Resource
Recovery Revenue, (Northampton Generating Project), Series C:
2,000,000 NR 6.875% due 1/1/11 (c) 1,907,500
12,000,000 NR 6.950% due 1/1/21 (b)(c) 11,250,000
Pennsylvania State University:
Series A:
3,430,000 AA- 5.000% due 8/15/15 3,129,875
3,660,000 AA- 5.000% due 8/15/16 3,284,850
Series B:
1,035,000 AA- 5.000% due 8/15/15 944,438
1,090,000 AA- 5.000% due 8/15/16 978,275
Philadelphia, PA School District GO, Series B, AMBAC-Insured:
3,310,000 AAA 5.250% due 4/1/17 3,078,300
2,220,000 AAA 5.375% due 4/1/19 2,075,700
8,745,000 AAA Pittsburgh & Allegheny County, PA Public Auditorium, Hotel Room,
AMBAC-Insured, 5.000% due 2/1/24 7,466,044
Pittsburgh & Allegheny County, PA Public Auditorium,
Regional Asset District Sales Tax, AMBAC-Insured:
5,250,000 AAA 5.000% due 2/1/24 4,482,188
8,115,000 AAA 5.000% due 2/1/29 6,836,888
Saint Mary Hospital Authority, Bucks County Catholic Health Initiatives,
Series A:
2,680,000 AA 5.375% due 12/1/12 2,532,600
1,000,000 AA 5.000% due 12/1/18 838,750
Southeastern PA, Transportation Authority Revenue, Series A, FGIC-Insured:
11,550,000 AAA 4.750% due 3/1/24 9,398,813
3,000,000 AAA 4.750% due 3/1/29 2,400,000
- -------------------------------------------------------------------------------------------------------------------------------
70,546,234
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
22 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
South Carolina -- 2.2%
<S> <C> <C> <C>
$ 2,625,000 AAA Berkeley County, SC School District COP, Berkeley School Facilities
Group Inc., MBIA-Insured, 5.250% due 2/1/16 $ 2,490,469
Citadel Military College, SC Revenue, AMBAC-Insured:
1,000,000 AAA 5.125% due 4/1/15 928,750
3,115,000 AAA 5.125% due 4/1/17 2,865,800
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 1,551,825
4,000,000 AAA 4.750% due 3/1/24 3,265,000
7,000,000 AAA Lexington County, SC Health Services District Inc., Hospital Revenue,
Refunding & Improvement, FSA-Insured, 5.250% due 11/1/17 6,457,500
5,000,000 AAA Piedmont Municipal Power Agency, SC Electric Revenue, Series A,
MBIA-Insured, 4.875% due 1/1/17 4,343,750
45,000,000 Aaa* South Carolina, Transportation Infrastructure Revenue, Series A,
AMBAC-Insured, 5.250% due 10/1/21 40,443,750
- -------------------------------------------------------------------------------------------------------------------------------
62,346,844
- -------------------------------------------------------------------------------------------------------------------------------
Tennessee -- 0.9%
Chattanooga, TN Health and Educational Housing Facilities Board,
Mortgage Revenue, Red Bank Health Care, FHA-Insured,
(LOC - Citibank N.A.):
10,000 A 11.250% due 2/1/02 11,013
115,000 A 11.250% due 8/1/02 129,375
120,000 A 11.250% due 2/1/03 137,400
130,000 A 11.250% due 8/1/03 151,775
135,000 A 11.250% due 2/1/04 158,963
145,000 A 11.250% due 8/1/04 173,638
150,000 A 11.250% due 2/1/05 182,063
180,000 A 11.250% due 8/1/05 221,625
Hardeman County, TN Correctional Facilities Corp.:
1,200,000 NR 6.900% due 8/1/03 1,207,500
11,000,000 NR 7.750% due 8/1/17 11,398,750
10,890,000 AA+ Shelby County, TN GO Series A, 5.000% due 3/1/20 9,528,750
2,380,000 AAA Shelby County, TN Health, Educational & Housing Facilities Board,
Hospital Revenue, Methodist Health System, Remarketed 8/1/97,
MBIA-Insured, 5.200% due 8/1/13 2,237,200
- -------------------------------------------------------------------------------------------------------------------------------
25,538,052
- -------------------------------------------------------------------------------------------------------------------------------
Texas -- 17.1%
3,000,000 AAA Aledo, TX ISD, GO, PSF, 5.000% due 2/15/29 2,497,500
6,300,000 AAA Austin, TX ISD, General Obligation Unlimited, PSFG, 5.125% due 8/1/16 5,756,625
Austin, TX Water, Sewer & Electric Revenue:
320,000 A* Pre-Refunded-- Escrowed with U.S. government securities to
various call dates (5/15/99 to 11/15/01) Call @ 100,
14.000% due 11/15/01 (f) 345,200
3,400,000 A* Re-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 (f) 3,659,250
24,735,000 A* Un-Refunded-- Escrowed with U.S. government securities to
various call dates (5/15/99 to 11/15/01) Call @ 100,
14.000% due 11/15/01 (f) 26,837,475
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 23
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
Texas -- 17.1% (continued)
<S> <C> <C> <C>
Bedford, TX GO, FSA-Insured:
$ 1,000,000 Aaa* 5.125% due 2/1/15 $ 922,500
1,000,000 Aaa* 5.125% due 2/1/16 913,750
500,000 Aaa* 5.250% due 2/1/17 460,000
500,000 Aaa* 5.250% due 2/1/18 456,250
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 1,452,938
1,660,000 AAA 5.100% due 12/1/13 1,535,500
1,245,000 AAA 5.125% due 12/1/14 1,143,844
1,840,000 AAA 5.200% due 12/1/15 1,688,200
2,000,000 AAA 5.200% due 12/1/16 1,820,000
2,155,000 AAA 5.250% due 12/1/18 1,939,500
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 2,226,263
1,000,000 AAA Brazos County, TX Health Facilities Development Corp. Revenue, Franciscan
Services Obligation Group, Series A, MBIA-Insured, 5.375% due 1/1/28 888,750
4,700,000 AAA Brazos River Authority, TX Authority Revenue, (Houston Industrial Inc.
Project), Series A, 5.125% due 5/1/19 4,171,250
1,000,000 Baa1* Brazos River Authority, TX PCR, Utilities Electric Co., Series C,
5.550% due 6/1/30 (c) 833,750
2,100,000 BBB Brownsville, TX Naval District, (Union Carbide Corp. Project),
5.100% due 1/1/12 1,890,000
3,250,000 AAA Brownsville, TX Utilities System Revenue, Priority Refunding,
AMBAC-Insured, 5.250% due 9/1/20 2,916,875
4,795,000 Aaa* Burleson, TX ISD, PSFG, 6.750% due 8/1/24 5,070,713
2,300,000 AAA Carroll, TX, ISD GO, PSFG, 4.875% due 8/15/27 1,871,625
1,995,000 AA Carrollton, TX, GO, 5.000% due 8/15/19 1,748,119
4,370,000 AAA Carrollton, TX ISD GO, PSFG, 4.625% due 2/15/17 3,676,263
3,000,000 AAA Conroe, TX ISD, PSFG, Lot A, 5.600% due 2/15/21 2,880,000
Corpus Christi, TX, Utility Systems Revenue, FSA-Insured:
2,700,000 AAA 5.000% due 7/15/17 2,386,125
2,110,000 AAA 5.000% due 7/15/19 1,846,250
2,400,000 AAA Cypress-Fairbanks, TX ISD, GO, PSFG, 4.750% due 2/15/22 1,971,000
4,700,000 AAA Dallas, TX Civic Center, MBIA-Insured, 4.875% due 8/15/23 3,918,625
Del Valle, TX ISD, GO, PSFG:
1,875,000 AAA 5.100% due 2/1/13 1,778,906
3,025,000 AAA 5.125% due 2/1/14 2,835,938
3,185,000 AAA 5.150% due 2/1/15 2,958,069
5,850,000 AAA Edinburg, TX ISD, Public Facilities Corp. Lease Revenue, AMBAC-Insured,
5.000% due 8/15/19 5,118,750
El Paso County, TX Community College District Revenue, Combination Fee,
AMBAC-Insured, Series B:
1,000,000 AAA 5.125% due 4/1/15 918,750
1,545,000 AAA 5.125% due 4/1/19 1,378,913
El Paso County, TX GO, FGIC-Insured:
1,235,000 AAA 5.000% due 2/15/14 1,136,200
2,355,000 AAA 5.000% due 2/15/18 2,066,513
2,280,000 A3* El Paso County, TX Housing Finance Corp.,
Multi-Family Housing Revenue, Las Lomas Apartments,
Series A, 6.375% due 12/1/29 2,188,800
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
24 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
Texas -- 17.1% (continued)
<S> <C> <C> <C>
$ 4,000,000 AAA El Paso County, TX ISD, GO, PSFG, 4.750% due 2/15/19 $ 3,360,000
2,500,000 AAA Elgin, TX ISD, GO, PSFG, 5.200% due 10/1/18 2,262,500
1,215,000 AAA Fort Bend County, TX Levee Improvement District No. 011,
MBIA-Insured, 5.875% due 3/1/13 1,233,225
Fort Worth, TX Higher Education Finance Corp., Higher Education Revenue,
(Texas Christian University Project):
3,000,000 AA- 5.000% due 3/15/17 2,662,500
2,000,000 AA- 5.000% due 3/15/20 1,735,000
3,500,000 AAA Fort Worth, TX ISD GO, PSFG, 5.000% due 2/15/19 3,058,125
2,800,000 AA Fort Worth, TX Water & Sewer Revenue, Refunding & Improvement,
5.000% due 2/15/18 2,509,500
2,730,000 Aaa* Frisco, TX ISD, GO, PSFG, 5.250% due 8/15/22 2,422,875
1,200,000 BBB Gulf Coast Waste Disposal Authority, Pollution Control Revenue,
(Carbide Corp. Project), 5.100% due 1/1/12 1,074,000
Gulf Coast Water Authority, Water Systems Contract Revenue,
South Project, Series A, FSA-Insured:
1,055,000 AAA 5.000% due 8/15/16 946,863
2,085,000 AAA 5.000% due 8/15/17 1,855,650
2,135,000 AAA 5.000% due 8/15/18 1,857,450
1,600,000 AAA 5.000% due 8/15/22 1,374,000
Harris County, TX Health Facilities Development Corp.
(Children's Hospital Project) Series A:
2,410,000 AA 5.375% due 10/1/16 2,184,063
2,000,000 AA 5.250% due 10/1/29 1,667,500
1,000,000 A1* Harris County, TX Industrial Development Corp., IDR, Cargill Inc.,
7.000% due 10/1/15 1,063,750
Harris County, TX Toll Road:
14,070,000 AAA Sr. Lien Revenue, FGIC-Insured, 5.375% due 8/15/20 12,997,163
Sub. Lien Revenue:
3,000,000 AA 5.125% due 8/15/16 2,737,500
28,670,000 AA 5.000% due 8/15/21 24,692,038
14,200,000 AAA MBIA-Insured, 5.125% due 8/15/17 12,851,000
8,520,000 AAA Houston, TX Airport System Revenue, Sub. Lien, FGIC-Insured,
5.125% due 7/1/22 7,476,300
Houston, TX Community College System Revenue, Student Fee:
AMBAC-Insured:
1,315,000 AAA 5.000% due 4/15/15 1,191,719
1,380,000 AAA 5.000% due 4/15/16 1,240,275
1,450,000 AAA 5.000% due 4/15/17 1,292,313
1,520,000 AAA 5.000% due 4/15/18 1,341,400
1,045,000 AAA MBIA-Insured, 5.650% due 4/15/15 1,018,875
5,000,000 AA- Houston, TX GO, Series A, 4.750% due 3/1/17 4,275,000
25,500,000 AAA Houston, TX ISD, GO, Series A, PSFG, 4.750% due 2/15/22 20,941,875
Houston, TX Water & Sewer System Revenue, Jr. Lien, FGIC-Insured:
Series A:
15,195,000 AAA 5.250% due 12/1/22 13,504,556
29,000,000 AAA 5.250% due 12/1/25 25,810,000
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 25
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
Texas -- 17.1% (continued)
<S> <C> <C> <C>
Lubbock, TX Health Facilities Development Corp. Revenue,
St. Joseph Health Systems:
$ 2,800,000 AA 5.250% due 7/1/13 $ 2,562,000
1,135,000 AA 5.250% due 7/1/14 1,028,594
4,400,000 AA 5.250% due 7/1/15 3,949,000
8,495,000 AA 5.250% due 7/1/16 7,549,931
8,095,000 AA 5.250% due 7/1/17 7,123,600
6,085,000 AA 5.250% due 7/1/18 5,309,163
6,545,000 AA 5.250% due 7/1/19 5,661,425
10,505,000 AA 5.000% due 7/1/23 8,469,656
Manor, TX ISD, GO, PSFG:
1,185,000 AAA 5.100% due 8/1/14 1,103,531
1,235,000 AAA 5.100% due 8/1/15 1,140,831
Midland, TX ISD, GO, PSFG:
1,435,000 Aaa* 5.000% due 2/15/17 1,268,181
770,000 Aaa* 4.750% due 2/15/18 652,575
3,305,000 Aaa* 4.750% due 2/15/20 2,755,544
4,000,000 AAA Midland County, TX Hospital District Revenue, AMBAC-Insured,
5.375% due 6/1/16 3,730,000
1,750,000 AAA Montgomery County, TX COP, Series A, MBIA-Insured,
5.000% due 3/1/18 1,535,625
3,465,000 AAA Montgomery County, TX GO, Utility District No. 47, Waterworks & Sewer,
AMBAC-Insured, 4.750% due 10/1/21 2,858,625
9,660,000 AAA North Central, TX Health Facility Development Corp. Revenue,
(Zale Lipshy University Project), FSA-Insured, 5.450% due 4/1/15 9,225,300
North Forest, TX ISD, GO, PSFG:
1,935,000 AAA 5.125% due 8/15/14 1,809,225
1,035,000 AAA 5.000% due 8/15/15 940,556
1,385,000 AAA 5.000% due 8/15/16 1,239,575
1,000,000 AAA 5.000% due 8/15/18 876,250
2,000,000 AAA North Harris, Montgomery County, Community College District,
AMBAC-Insured, 5.000% due 2/15/21 1,727,500
2,000,000 AAA Northside, TX ISD, GO, PSF, 4.750% due 8/15/24 1,617,500
3,630,000 AAA Nueces River Authority, TX Water Supply Facilities, (Corpus Christi Lake
Project), FSA-Insured, 5.500% due 3/1/27 3,335,063
2,425,000 AAA Pflugerville, TX GO, FGIC-Insured, 4.750% due 8/1/20 2,015,781
1,595,000 AA+ Plano, TX Refunding & Improvement GO, 5.150% due 9/1/16 1,459,425
3,000,000 AAA Port of Port Arthur, TX Naval District, AMBAC-Insured,
4.875% due 3/1/17 2,602,500
Richardson, TX Refunding & Improvement GO:
680,000 AA 5.000% due 2/15/16 613,700
1,465,000 AA 5.000% due 2/15/18 1,292,863
2,400,000 AA San Antonio, TX Electric & Gas Refunding, Series A, 5.000% due 2/1/18 2,106,000
1,015,000 AAA San Patricio, TX Municipal Water District, FSA-Insured,
5.000% due 7/10/17 895,738
Santa Fe, TX ISD, GO, PSFG:
1,190,000 Aaa* 5.250% due 2/15/17 1,094,800
2,270,000 Aaa* 5.125% due 2/15/19 2,023,138
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
26 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
Texas -- 17.1% (continued)
<S> <C> <C> <C>
Socorro, TX ISD, GO, PSFG:
$ 3,595,000 AAA 5.300% due 8/15/18 $ 3,338,856
7,460,000 Aaa* 5.125% due 2/15/27 6,378,300
4,000,000 A+ Southwest Higher Education Authority, Southern Methodist University,
5.000% due 10/1/18 3,465,000
1,610,000 AAA Springtown, TX ISD, GO, PSFG, 5.000% due 2/15/14 1,481,200
Stephenville, TX ISD, GO, PSFG:
1,125,000 AAA 5.000% due 2/15/14 1,035,000
1,570,000 AAA 5.000% due 2/15/15 1,428,700
1,735,000 AAA 5.000% due 2/15/17 1,533,306
1,000,000 AAA Texas State Department of Housing & Community Affairs, Multi-Family
Revenue, (Volente Project,) FNMA Collateralized, 5.550% due 1/1/18 (c) 930,000
2,300,000 AAA Texas State Public Finance Authority, Building Revenue,
AMBAC-Insured, 5.000% due 8/1/14 2,110,250
33,300,000 AAA Texas State Turnpike Authority Dallas North Tollway Revenue,
George Bush Turnpike, FGIC-Insured, 5.250% due 1/1/23 (b) 29,678,625
Texas State Water Development GO, Series D:
10,000,000 AAA 5.000% due 8/1/16 9,037,500
6,000,000 AAA 5.000% due 8/1/19 5,280,000
Texas Water Development Board Revenue,
State Revolving Fund, Sr. Lien, Series B:
2,500,000 AAA 5.000% due 7/15/15 2,271,875
15,500,000 AAA 5.125% due 7/15/18 13,969,375
35,040,000 AAA 5.000% due 7/15/19 (b) 30,703,800
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 1,267,313
1,500,000 AAA Series B, FSA-Insured, 5.500% due 11/1/17 1,419,375
3,250,000 AAA Series C, FSA-Insured, 5.500% due 11/1/17 3,075,313
Victoria, TX ISD, GO, PSFG:
1,245,000 AAA 5.000% due 2/15/15 1,132,950
1,370,000 AAA 5.000% due 2/15/16 1,229,575
2,500,000 AAA Victoria, TX Utility System Revenue, Series A, MBIA-Insured,
5.000% due 12/1/21 2,162,500
3,000,000 Aaa* Weatherford, TX ISD, GO, PSFG, 5.000% due 2/15/15 2,730,000
- -------------------------------------------------------------------------------------------------------------------------------
489,974,002
- -------------------------------------------------------------------------------------------------------------------------------
Utah -- 2.6%
88,295,000 A+ Intermountain Power Agency, UT Power Supply Revenue, Series D,
5.000% due 7/1/21 (b) 75,602,594
- -------------------------------------------------------------------------------------------------------------------------------
Virgin Islands -- 0.4%
Virgin Islands Public Finance Authority Revenue, Sr. Lien, Series A:
1,000,000 BBB-* 5.300% due 10/1/11 936,250
10,000,000 BBB-* 6.375% due 10/1/19 9,800,000
- -------------------------------------------------------------------------------------------------------------------------------
10,736,250
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 27
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
Virginia -- 0.7%
<S> <C> <C> <C>
Arlington County, VA IDA Multi-Family Housing Revenue,
Sr. Lien-- Arlington Housing:
$ 705,000 A 6.300% due 7/1/16 $ 718,219
750,000 A 6.350% due 7/1/20 762,188
1,000,000 A 6.375% due 7/1/25 1,016,250
1,000,000 A Woodbury Park Apartments, 5.350% due 7/1/18 916,250
1,425,000 AAA Harrisonburg, VA Redevelopment & Housing Authority, Multi-Family
Housing Revenue, (Battery Heights Project),
Series A, GNMA-Collateralized, 6.100% due 4/20/16 1,448,156
2,160,000 AA Norfolk, VA Redevelopment & Housing Authority, Educational Facilities
Revenue, Tidewater Community College Campus, 5.875% due 11/1/15 2,187,000
Virginia State Housing Development Authority, Commonwealth
Mortgage Revenue, Series D, Subseries D-4, Remarketed 7/16/96:
1,330,000 AA+ 6.100% due 1/1/11 1,349,950
1,365,000 AA+ 6.100% due 7/1/11 1,383,768
1,400,000 AA+ 6.125% due 1/1/12 1,419,250
1,440,000 AA+ 6.125% due 7/1/12 1,459,800
1,485,000 AA+ 6.150% due 1/1/13 1,501,706
1,525,000 AA+ 6.150% due 7/1/13 1,542,155
1,565,000 AA+ 6.200% due 1/1/14 1,578,693
1,615,000 AA+ 6.200% due 7/1/14 1,629,131
- -------------------------------------------------------------------------------------------------------------------------------
18,912,516
- -------------------------------------------------------------------------------------------------------------------------------
Washington -- 2.3%
Aberdeen, WA Special Revenue, (Stafford Creek Correctional
Center Project), AMBAC-Insured:
1,165,000 AAA 4.750% due 11/1/14 1,028,113
1,220,000 AAA 4.750% due 11/1/15 1,058,350
7,000,000 AAA Central Puget Sound, WA Regional Transportation Authority Sales Tax,
FGIC-Insured, 4.750% due 2/1/28 5,565,000
2,740,000 AAA King County, WA Go, Public Hospital District No. 2, MBIA-Insured,
5.250% due 12/1/18 2,459,150
1,530,000 Aaa* Thurston County, WA GO, MBIA-Insured, 5.000% due 8/1/15 1,371,261
3,980,000 Aaa* Washington State Housing Finance Commission, Single Family Program,
Series 3N, FNMA-GNMA-FHLMC-Collateralized, 5.250% due 12/1/17 3,666,575
Washington State Public Power Supply System:
(Nuclear Project No. 3), Series B:
24,000,000 Aa1* 5.500% due 7/1/17 (b) 22,410,000
29,220,000 Aa1* 5.500% due 7/1/18 (b) 27,101,550
- -------------------------------------------------------------------------------------------------------------------------------
64,659,999
- -------------------------------------------------------------------------------------------------------------------------------
West Virginia -- 0.2%
500,000 A+ Ohio County, WV Board of Education, GO, 5.125% due 6/1/18 445,625
6,540,000 BBB South Charleston, WV PCR, (Union Carbide Corp. Project),
5.100% due 1/1/12 5,886,000
- -------------------------------------------------------------------------------------------------------------------------------
6,331,625
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
28 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Investments (continued) February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
- -------------------------------------------------------------------------------------------------------------------------------
Wisconsin -- 1.2%
<S> <C> <C> <C>
$ 1,225,000 AAA Merrill, WI Area Common Public School District, FSA-Insured,
5.000% due 4/1/18 $ 1,079,530
2,210,000 Aaa* Waupun, WI School District, FGIC-Insured, 4.950% due 4/1/16 1,964,138
1,325,000 Aaa* Winneconne, WI Community School District GO, FGIC-Insured,
6.750% due 4/1/16 1,435,968
2,000,000 AA Wisconsin Housing & EDA, Home Ownership Revenue, Series A,
6.450% due 3/1/17 2,040,000
33,000,000 AAA Wisconsin State Health & Educational Facilities Authority,
Aurora Health Care Inc., MBIA-Insured, 5.250% due 8/15/17 30,030,000
- -------------------------------------------------------------------------------------------------------------------------------
36,549,636
- -------------------------------------------------------------------------------------------------------------------------------
Wyoming -- 0.1%
1,000,000 AAA Green River Sweetwater County, WY Joint Powers Board Revenue,
Series A, FSA-Insured, 5.100% due 3/1/24 852,500
2,000,000 AAA Wyoming Building Corp. Revenue, AMBAC-Insured, 5.000% due 10/1/13 1,847,500
- -------------------------------------------------------------------------------------------------------------------------------
2,700,000
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost-- $3,034,834,643**) $2,854,307,054
===============================================================================================================================
</TABLE>
(a) All ratings are by Standard & Poor's Rating Service with the exception of
those identified by an asterisk (*) or a double dagger (++), which are
rated by Moody's Investor Service, Inc. and Fitch Investor Services, Inc.,
respectively.
(b) All or part of this security has been segregated by Custodian for open
purchase commitments and/or futures contract commitments.
(c) Income from this issue is considered a preference item for purposes of
calculating the alternative minimum tax.
(d) Security in default.
(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) 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.
** Aggregate cost for Federal income tax purposes is substantially the same.
See pages 30 and 31 for definitions of ratings and certain security
descriptions.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 29
<PAGE>
- --------------------------------------------------------------------------------
Bond Ratings (unaudited)
- --------------------------------------------------------------------------------
The definitions of the applicable rating symbols are set forth below:
Standard & Poor's Ratings Service ("Standard & Poor's") -- Rating from "AA" to
"B" may be modified by the addition of a plus (+) or minus (-) sign to show
relative standings within the major rating categories.
AAA -- Bonds rated "AAA" have the highest rating assigned by Standard &
Poor's. Capacity to pay interest and repay
principal is extremely strong.
AA -- Bonds rated "AA" have a very strong capacity to pay interest and
repay principal and differs from the highest rated issue only in a
small degree.
A -- Bonds rated "A" have a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than
debt in higher rated categories.
BBB -- Bonds rated "BBB" are regarded as having an adequate capacity to
pay interest and repay principal. Whereas they normally exhibit
adequate protection parameters, adverse economic conditions or
changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for bonds in this
category than in higher rated categories.
BB -- Bonds rated "BB" have less near-term vulnerability to default
than other speculative issues. However, it faces major ongoing
uncertainties or exposure to adverse business, financial, or
economic conditions which could lead to inadequate capacity to
meet timely interest and principal payments. The "BB" rating
category is also used for debt subordinated to senior debt that is
assigned an actual or implied "BBB-" rating.
B -- Bonds rated "B" have a greater vulnerability to default but
currently have the capacity to meet interest payments and
principal payments. Adverse business, financial, or economic
conditions will likely impair capacity or willingness to pay
interest and repay principal. The "B" category is also used for
debt subordinated to senior debt that is assigned an actual or
implied "BB" or "BB-" rating.
Moody's Investors Service, Inc. ("Moody's") -- Numerical modifiers 1, 2 and 3
may be applied to each generic rating from "Aa" to "B," where 1 is the highest
and 3 the lowest ranking within its generic category.
Aaa -- Bonds rated "Aaa" are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred
to as "gilt edge." Interest payments are protected by a large or
by an exceptionally stable margin and principal is secure. While
the various protective elements are likely to change, such changes
as can be visualized are most unlikely to impair the fundamentally
strong position of such issues.
Aa -- Bonds that are rated "Aa" are judged to be of high quality by all
standards. Together with the "Aaa" group they comprise what are
generally known as high grade bonds. They are rated lower than the
best bonds because margins of protection may not be as large in
"Aaa" securities or fluctuation of protective elements may be of
greater amplitude or there may be other elements present which
make the long-term risks appear somewhat larger than in "Aaa"
securities.
A -- Bonds rated "A" possess many favorable investment attributes and
are to be considered as upper medium grade obligations. Factors
giving security to principal and interest are considered adequate
but elements may be present which suggest a susceptibility to
impairment some time in the future.
Baa -- Bonds rated "Baa" are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured.
Interest payments and principal security appear adequate for the
present but certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
Ba -- Bonds rated "Ba" are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection
of interest and principal payments may be very moderate and
thereby not well safeguarded during both good and bad time over
the future. Uncertainty of position characterizes bonds in this
class.
B -- Bonds rated "B" generally lack characteristics of desirable
investments. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of
time may be small.
Fitch Investors Services, Inc. ("Fitch")-- Rating may be modified
by the addition of a plus (+) or minus (-) sign to show relative
standings with the major ratings categories.
AA -- Bonds rated "AA" have a very low expectation of credit risk. They
indicate very strong capacity for timely payment of financial
commitment. This capacity is not significantly vulnerable to
foreseeable events.
NR -- Indicates that the bond is not rated by Standard & Poor's, Moody's
or Fitch.
- --------------------------------------------------------------------------------
30 2000 Annual Report to Shareholders
<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
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 31
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments, at value (Cost-- $3,034,834,643) $ 2,854,307,054
Receivable for Fund shares sold 536,630
Interest receivable 38,438,640
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 2,893,282,324
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 77,742,186
Payable to bank 3,457,018
Payable for Fund shares purchased 2,447,820
Investment advisory fees payable 729,178
Payable to broker-- variation margin 450,000
Administration fees payable 387,647
Distribution fees payable 130,283
Accrued expenses 370,319
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 85,714,451
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 2,807,567,873
====================================================================================================================================
NET ASSETS:
Par value of capital shares $ 1,982,846
Capital paid in excess of par value 3,097,688,726
Undistributed net investment income 283,872
Accumulated net realized loss from security transactions and futures contracts (110,490,450)
Net unrealized depreciation of investments and futures contracts (181,897,121)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 2,807,567,873
====================================================================================================================================
Shares Outstanding:
Class A 125,542,776
- ------------------------------------------------------------------------------------------------------------------------------------
Class B 60,050,612
- ------------------------------------------------------------------------------------------------------------------------------------
Class L 10,003,414
- ------------------------------------------------------------------------------------------------------------------------------------
Class Y 2,687,806
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value:
Class A (and redemption price) $ 14.16
- ------------------------------------------------------------------------------------------------------------------------------------
Class B * $ 14.16
- ------------------------------------------------------------------------------------------------------------------------------------
Class L ** $ 14.15
- ------------------------------------------------------------------------------------------------------------------------------------
Class Y (and redemption price) $ 14.18
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum Public Offering Price Per Share:
Class A (net asset value plus 4.17% of net asset value per share) $ 14.75
- ------------------------------------------------------------------------------------------------------------------------------------
Class L (net asset value plus 1.01% of net asset value per share) $ 14.29
====================================================================================================================================
</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.
- --------------------------------------------------------------------------------
32 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Year Ended February 29, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C>
Interest $ 194,807,411
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Distribution fees (Note 3) 11,327,351
Investment advisory fees (Note 3) 10,576,937
Administration fees (Note 3) 5,904,963
Shareholder and system servicing fees 919,159
Registration fees 272,629
Shareholder communications 202,343
Custody 144,437
Audit and legal 91,746
Pricing service fees 90,533
Directors' fees 58,475
Other 51,418
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 29,639,991
- ------------------------------------------------------------------------------------------------------------------------------------
Net Investment Income 165,167,420
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FUTURES CONTRACTS (NOTES 4 AND 5):
Realized Gain (Loss) From:
Security Transactions (excluding short-term securities) (80,290,263)
Futures Contracts (45,969)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized Loss (80,336,232)
- ------------------------------------------------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation (Depreciation)
of Investments and Futures Contracts:
Beginning of year 156,019,669
End of year (181,897,121)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Unrealized Depreciation (337,916,790)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Loss on Investments and Future Contracts (418,253,022)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in Net Assets From Operations $(253,085,602)
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 33
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
For the Year Ended February 29, 2000
and the Year Ended February 28, 1999
<TABLE>
<CAPTION>
2000 1999
====================================================================================================================================
OPERATIONS:
<S> <C> <C>
Net investment income $ 165,167,420 $ 168,057,729
Net realized loss (80,336,232) (28,827,675)
(Increase) decrease in net unrealized depreciation (337,916,790) 3,702,030
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations (253,085,602) 142,932,084
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTE 2):
Net investment income (159,089,656) (168,001,873)
Excess of net investment income -- (11,815,898)
Net realized gains -- (27,146,490)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in Net Assets From Distributions to Shareholders (159,089,656) (206,964,261)
- ------------------------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 6):
Net proceeds from sale of shares 421,071,394 817,389,236
Net asset value of shares issued for
reinvestment of dividends 93,663,507 126,767,790
Cost of shares reacquired (1,172,071,674) (633,747,421)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Fund Share Transactions (657,336,773) 310,409,605
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (1,069,512,031) 246,377,428
NET ASSETS:
Beginning of year 3,877,079,904 3,630,702,476
- ------------------------------------------------------------------------------------------------------------------------------------
End of year* $ 2,807,567,873 $ 3,877,079,904
====================================================================================================================================
* Includes undistributed (overdistributed) net investment income of: $ 283,872 $ (5,790,395)
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
34 2000 Annual Report to Shareholders
<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 29, 2000,
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. Net investment income, net realized gains and net assets
were not affected by this adjustment; (i) the Fund intends to comply with the
applicable provisions of the Internal Revenue Code of 1986, as amended,
pertaining to regulated investment companies and to make distributions of
taxable income sufficient to relieve it from substantially all Federal income
and excise taxes; and (j) estimates and assumptions are required to be made
regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets and other parameters used in determining these
estimates could cause actual results to differ.
2. Exempt-Interest Dividends and Other Distributions
The Fund intends to satisfy requirements that allow interest from municipal
securities, which is exempt from regular Federal income tax and from certain
states' income taxes, to retain its exempt-interest status when distributed to
the shareholders of the Fund.
Capital gain distributions, if any, are taxable to shareholders, and are
declared and paid at least annually. If necessary, additional taxable
distributions may be made to avoid a Federal excise tax.
3. Investment Advisory Agreement, Administration Agreement and Other
Transactions
SSB Citi Fund Management LLC ("SSBC"), formerly known as SSBC Fund Management
Inc., a subsidiary of Salomon Smith Barney Holdings Inc. ("SSBH"), which, in
turn, is a subsidiary of Citigroup Inc. ("Citigroup"), 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
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 35
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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.
Effective October 1999, Citi Fiduciary Trust Company ("CFTC"), another
subsidiary of Citigroup, became the Fund's transfer agent and PFPC Global Fund
Services ("PFPC") became the sub-transfer agent. CFTC receives account fees and
asset-based fees that vary according to the account size and type of account.
PFPC is responsible for shareholder recordkeeping and financial processing for
all shareholder accounts and is paid by CFTC. During the period October 1, 1999
through February 29, 2000, the Fund paid transfer agent fees of $321,489 to
CFTC.
CFBDS, Inc., ("CFBDS") acts as the Fund's distributor. Salomon Smith Barney Inc.
("SSB"), another subsidiary of SSBH, as well certain other broker-dealers,
continues to sell Fund shares to the public as a member of the selling group.
There is also a contingent deferred sales charge ("CDSC") of 4.50% on Class B
shares, which applies if redemption occurs within one year from purchase. This
CDSC declines by 0.50% the first year after purchase and thereafter by 1.00% per
year until no CDSC is incurred. Class L shares are being sold at net asset value
plus a maximum sales charge of 1.00%. Class L shares also have a 1.00% CDSC,
which applies if redemption occurs within the first year of purchase. In
addition, Class A shares also have a 1.00% CDSC, which applies if redemption
occurs within the first year of purchase. This CDSC only applies to those
purchases of Class A shares, which, when combined with current holdings of Class
A shares, equal or exceed $500,000 in the aggregate. These purchases do not
incur an initial sales charge.
For the year ended February 29, 2000, CFBDS and SSB received sales charges of
approximately $1,597,000 and $197,000 on sales of the Fund's Class A and Class L
shares, respectively. In addition, CDSCs paid to CFBDS and SSB were
approximately:
Class A Class B Class L
================================================================================
CDSCs $178,000 $2,384,000 $46,000
================================================================================
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 29, 2000, total Distribution Plan fees incurred
were:
Class A Class B Class L
================================================================================
Distribution Plan Fees $3,264,176 $6,863,675 $1,199,500
================================================================================
All officers and one Director of the Fund are employees of SSB.
4. Investments
During the year ended February 29, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
================================================================================
Purchases $1,888,648,876
- --------------------------------------------------------------------------------
Sales 2,544,853,355
================================================================================
At February 29, 2000, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were substantially
as follows:
================================================================================
Gross unrealized appreciation $ 31,173,137
- --------------------------------------------------------------------------------
Gross unrealized depreciation (211,700,726)
- --------------------------------------------------------------------------------
Net unrealized depreciation $ (180,527,589)
================================================================================
- --------------------------------------------------------------------------------
36 2000 Annual Report to Shareholders
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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 29, 2000, the Fund had the following open futures contracts:
<TABLE>
<CAPTION>
Expiration # of Basis Market Unrealized
Month/Year Contracts Value Value Gain (Loss)
====================================================================================================================
Futures contracts to sell:
<S> <C> <C> <C> <C> <C>
Municipal Bond Index 3/00 1,200 $109,536,720 $111,937,500 $ 2,400,780
U.S. Government Long BondIndex 3/00 1,200 (110,304,688) (114,075,000) (3,770,312)
- --------------------------------------------------------------------------------------------------------------------
Total $(1,369,532)
====================================================================================================================
</TABLE>
6. Capital Shares
At February 29, 2000, 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 29, 2000, 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 $1,912,573,073 $982,330,850 $161,654,897 $43,112,752
==========================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 37
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
February 29, 2000 February 28, 1999
-------------------------------------- -----------------------------------
Shares Amount Shares Amount
====================================================================================================================================
Class A
<S> <C> <C> <C> <C>
Shares sold 16,637,405 $ 246,874,360 25,514,936 $ 411,308,146
Shares issued on reinvestment 4,151,563 61,664,669 5,134,373 82,575,616
Shares reacquired (50,682,006) (746,373,915) (21,377,362) (344,451,566)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (29,893,038) $(437,834,886) 9,271,947 $ 149,432,196
====================================================================================================================================
Class B
Shares sold 6,121,439 $ 91,447,522 12,635,335 $ 203,684,556
Shares issued on reinvestment 1,789,489 26,586,027 2,324,422 37,364,480
Shares reacquired (23,604,689) (347,191,329) (8,707,120) (140,244,766)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (15,693,761) $(229,157,780) 6,252,637 $ 100,804,270
====================================================================================================================================
Class L+
Shares sold 2,545,618 $ 38,249,512 5,331,560 $ 85,847,261
Shares issued on reinvestment 343,386 5,093,638 372,372 5,982,936
Shares reacquired (4,420,358) (64,835,839) (2,003,058) (32,218,632)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (1,531,354) $ (21,492,689) 3,700,874 $ 59,611,565
====================================================================================================================================
Class Y
Shares sold 2,880,950 $ 44,500,000 7,248,020 $ 116,549,273
Shares issued on reinvestment 21,574 319,173 52,599 844,758
Shares reacquired (943,548) (13,670,591) (7,306,335) (116,832,457)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 1,958,976 $ 31,148,582 (5,716) $ 561,574
====================================================================================================================================
</TABLE>
+ On June 12, 1998, Class C shares were renamed Class L shares.
7. Capital Loss Carryforward
At February 29, 2000, the Fund had, for Federal income tax purposes,
approximately $76,312,000 of unused capital loss carryforwards available to
offset future capital gains. 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. The amount and expiration of the carryforwards are indicated
below. Expiration occurs on the last day in February of the year indicated:
2007 2008
================================================================================
Carryforward Amounts $11,499,000 $64,813,000
================================================================================
38 2000 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 2000(1)(2) 1999(2) 1998 1997 1996(3)
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $15.93 $16.19 $15.61 $16.20 $15.47
- -----------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.75 0.74 0.79 0.88 0.91
Net realized and unrealized gain (loss) (1.79) (0.10) 1.06 (0.18) 0.80
- -----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (1.04) 0.64 1.85 0.70 1.71
- -----------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.73) (0.74) (0.79) (0.91) (0.90)
Excess of net investment income -- (0.05) -- -- --
Net realized gains -- (0.11) (0.48) (0.38) (0.08)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.73) (0.90) (1.27) (1.29) (0.98)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $14.16 $15.93 $16.19 $15.61 $16.20
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return (6.62)% 4.07% 12.30% 4.51% 11.34%
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $1,778 $2,476 $2,367 $2,000 $1,892
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.68% 0.67% 0.68% 0.68% 0.70%
Net investment income 5.02 4.63 4.98 5.60 5.47
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 55% 45% 110% 103% 80%
===================================================================================================================================
</TABLE>
(1) For the year ended February 29, 2000.
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the year ended February 29, 1996.
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 39
<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 2000(1)(2) 1999(2) 1998 1997 1996(3)
=================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $15.92 $16.19 $15.60 $16.20 $15.47
- -----------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.68 0.66 0.72 0.79 0.82
Net realized and unrealized gain (loss) (1.79) (0.11) 1.06 (0.18) 0.81
- -----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (1.11) 0.55 1.78 0.61 1.63
- -----------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.65) (0.66) (0.71) (0.83) (0.82)
Excess of net investment income -- (0.05) -- -- --
Net realized gains -- (0.11) (0.48) (0.38) (0.08)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.65) (0.82) (1.19) (1.21) (0.90)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $14.16 $15.92 $16.19 $15.60 $16.20
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return (7.08)% 3.48% 11.81% 3.92% 10.78%
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (millions) $850 $1,206 $1,125 $905 $730
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.21% 1.19% 1.20% 1.19% 1.22%
Net investment income 4.50 4.11 4.46 5.09 4.94
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 55% 45% 110% 103% 80%
===================================================================================================================================
</TABLE>
(1) For the year ended February 29, 2000.
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the year ended February 29, 1996.
- --------------------------------------------------------------------------------
40 2000 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 2000(1)(2) 1999(2)(3) 1998(2) 1997 1996(4)
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $15.92 $16.18 $15.60 $16.20 $15.47
- -----------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.67 0.65 0.70 0.79 0.82
Net realized and unrealized gain (loss) (1.80) (0.10) 1.06 (0.18) 0.81
- -----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (1.13) 0.55 1.76 0.61 1.63
- -----------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.64) (0.65) (0.70) (0.83) (0.82)
Excess of net investment income -- (0.05) -- -- --
Net realized gains -- (0.11) (0.48) (0.38) (0.08)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.64) (0.81) (1.18) (1.21) (0.90)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $14.15 $15.92 $16.18 $15.60 $16.20
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return (7.19)% 3.49% 11.69% 3.88% 10.76%
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (000s) $141,570 $183,578 $126,766 $72,597 $33,411
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.25% 1.24% 1.25% 1.24% 1.27%
Net investment income 4.46 4.06 4.38 5.04 4.86
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 55% 45% 110% 103% 80%
===================================================================================================================================
</TABLE>
(1) For the year ended February 29, 2000.
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) On June 12, 1998, Class C shares were renamed Class L shares.
(4) For the year ended February 29, 1996.
- --------------------------------------------------------------------------------
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 Y Shares 2000(1)(2) 1999(2) 1998(2) 1997(2) 1996(3)
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $15.95 $16.19 $15.60 $16.20 $15.63
- -----------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.79 0.73 0.82 0.90 0.85
Net realized and unrealized gain (loss) (1.80) (0.04) 1.07 (0.18) 0.65
- -----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (1.01) 0.69 1.89 0.72 1.50
- -----------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.76) (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 (0.76) (0.93) (1.30) (1.32) (0.93)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Year $14.18 $15.95 $16.19 $15.60 $16.20
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return (6.44)% 4.39% 12.56% 4.59% 9.84%++
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Year (000s) $38,110 $11,626 $11,893 $5,350 $12,314
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.51% 0.50% 0.52% 0.52% 0.57%+
Net investment income 5.27 4.84 5.06 5.76 5.62+
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 55% 45% 110% 103% 80%
===================================================================================================================================
</TABLE>
(1) For the year ended February 29, 2000.
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the period from April 4, 1995 (inception date) to February 29, 1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- --------------------------------------------------------------------------------
42 2000 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 29, 2000, 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
five-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.
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 29, 2000, by correspondence with the custodian. As to securities
purchased but not yet received, 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 29, 2000, 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 five-year period then ended, in conformity with generally
accepted accounting principles.
/s/ KPMG LLP
New York, New York
April 13, 2000
- --------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc. 43
<PAGE>
- --------------------------------------------------------------------------------
Tax Information (unaudited)
- --------------------------------------------------------------------------------
For Federal tax purposes the Fund hereby designates for the fiscal year ended
February 29, 2000:
. 99.95% of the dividends paid by the Fund from net investment income as
tax exempt for regular Federal income tax purposes.
- --------------------------------------------------------------------------------
44 2000 Annual Report to Shareholders
<PAGE>
Smith Barney
Managed Municipals
Fund Inc.
Directors
Herbert Barg
Alfred J. Bianchetti
Martin Brody
Dwight B. Crane
Burt N. Dorsett
Elliot S. Jaffe
Stephen E. Kaufman
Joseph J. McCann
Heath B. McLendon, Chairman
Cornelius C. Rose
James J. Crisona, Emeritus
Officers
Heath B. McLendon
President and Chief Executive Officer
Lewis E. Daidone
Senior Vice President and Treasurer
Joseph P. Deane
Vice President and Investment Officer
David Fare
Investment Officer
Paul A. Brook
Controller
Christina T. Sydor
Secretary
Investment Adviser and Administrator
SSB Citi Fund Management LLC
Distributor
CFBDS, Inc.
Custodian
PNC Bank
Transfer Agent
Citi Fiduciary Trust Company
388 Greenwich Street, 22nd Floor
New York, New York 10013
Sub-Transfer Agent
PFPC Global Fund Services
P.O. Box 9699
Providence, Rhode Island 02940-9699
This report is submitted for the general information of the shareholders of
Smith Barney Managed Municipals Fund Inc., but it may also be used as sales
literature when proceeded or accompanied by the current Prospectus, which gives
details about charges, expenses, investment objectives and operating policies of
the Fund. If used as sales material after May 31, 2000, this report must be
accompanied by performance information for the most recently completed calendar
quarter.
[LOGO OF SALOMON SMITH BARNEY]
Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.
Smith Barney Managed
Municipals Fund Inc.
Smith Barney Mutual Funds
388 Greenwich Street, MF-2
New York, New York 10013
www.smithbarney.com/mutualfunds
