<PAGE>
------------------------------------------------------------
SMITH BARNEY
MANAGED MUNICIPALS
FUND INC.
------------------------------------------------------------
CLASSIC SERIES | SEMI-ANNUAL REPORT | AUGUST 31, 2000
[LOGO OF SMITH BARNEY MUTUAL FUNDS]
Your Serious Money. Professionally Managed./SM/
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NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
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<PAGE>
[GRAPHIC] Classic Series
Semi-Annual Report . August 31, 2000
SMITH BARNEY
MANAGED MUNICIPALS FUND
JOSEPH P. DEANE [PHOTO]
PORTFOLIO MANAGER
JOSEPH P. DEANE
Joseph P. Deane has more than 30 years of securities business experience and has
managed the Fund since its inception.
Education: BA in History from Iona College
FUND OBJECTIVE
The 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.* The Fund invests
at least 80% of its assets in municipal securities.
-----------------
* Please note a portion of the income from the Fund may be subject to the
Alternative Minimum Tax ("AMT").
FUND FACTS
FUND INCEPTION
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March 4, 1981
MANAGER TENURE
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12 Years
MANAGER INVESTMENT
INDUSTRY EXPERIENCE
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30 Years
CLASS A CLASS B CLASS L
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NASDAQ SHMMX SMMBX SMMCX
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INCEPTION 3/4/81 11/6/92 11/9/94
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Average Annual Total Returns as of August 31, 2000
Without Sales Charges/(1)/
Class A Class B Class L
Six Months+ 9.22% 8.91% 8.89%
One-Year 7.28 6.66 6.62
Five-Year 5.59 5.04 5.00
Ten-Year 8.06 N/A N/A
Since Inception++ 9.97 6.68 7.35
With Sales Charges/(2)/
Class A Class B Class L
Six Months+ 4.85% 4.41% 6.82%
One-Year 2.96 2.16 4.55
Five-Year 4.74 4.89 4.79
Ten-Year 7.62 N/A N/A
Since Inception++ 9.74 6.68 7.17
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect 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; and Class B shares reflect the deduction of a 4.50% CDSC,
which applies if shares are redeemed within one year from initial 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.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption value may be more or less than the original cost.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
++ Inception dates for Class A, B and L shares are March 4, 1981, November 6,
1992 and November 9, 1994, respectively.
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What's Inside
A Message from the Chairman ..................................................1
Letter from the Portfolio Manager ............................................2
Historical Performance .......................................................5
Smith Barney Managed Municipals Fund at a Glance .............................8
Schedule of Investments ......................................................9
Statement of Assets and Liabilities .........................................29
Statement of Operations .....................................................30
Statements of Changes in Net Assets .........................................31
Notes to Financial Statements ...............................................32
Financial Highlights ........................................................36
[LOGO OF SMITH BARNEY MUTUAL FUNDS]
Your Serious Money. Professionally Managed./SM/
INVESTMENT PRODUCTS: NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
<PAGE>
--------------------------------------------------------------------------------
A MESSAGE FROM THE CHAIRMAN
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The new millennium, so far, has been marked by higher volatility and concerns
that the bull market in stocks may be running out of steam. We at SSB Citi Fund
Management LLC ("SSB Citi") have instituted many positive changes, with the
ultimate goal of offering our investors a well-rounded menu of stock and bond
funds that can be tailored to a wide range of investment objectives.
We believe that your serious money demands professional management. Since 1937,
Smith Barney has managed the serious money of individuals, their families and
their businesses. Today, with over $399 billion in assets under management,/1/
SSB Citi offers choices and solutions, uniting the distinguished history of
Smith Barney with the unparalleled global reach of its parent, Citigroup.
The Smith Barney family of funds represents a complex with a 60-year history of
investment expertise. In addition, Smith Barney is currently conducting an
extensive advertising campaign, highlighting a selection of the most popular
Smith Barney mutual funds and the investment professionals who manage them.
With economic growth robust, interest rates stable and inflationary pressures
apparently in check, many investors may not feel compelled to alter their
portfolio mixes. Yet, when times are good, it may be prudent for investors to
consider adding a bond fund to their investment plan to cushion the effects of
stock market volatility and gain additional income potential.
[PHOTO]
HEATH B. MCLENDON
CHAIRMAN
-----------------
What makes Smith Barney Mutual Funds different, though is the financial
professionals who work directly with our many clients to help them stay the
course.
For those of you who are new shareholders, I would like to extend a warm welcome
to you on behalf of everyone at SSB Citi. The Smith Barney Managed Municipals
Fund seeks to maximize current interest income that is excluded from gross
income for regular federal income tax purposes/2/ to the extent consistent with
prudent investment management and the preservation of capital. Experienced
manager Joe Deane and his team seek to minimize the effects of market volatility
by carefully adjusting both the exposure to interest rate movements and the
credit quality of the securities in response to changing market conditions.
Joe and his team are currently optimistic about the municipal bond market
because of shrinking market supply, state and local government budget surpluses,
slowing global economic growth and their expectations that the Fed will not
raise interest rates over the short term.
When you invest with SSB Citi, you can 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 success.
Thank you for your confidence in our investment management approach.
Sincerely,
/s/ Heath B. McLendon
Heath B. McLendon
Chairman
September 12, 2000
-------------
1 As of August 31, 2000. This figure represents retail, institutional money
and separate accounts.
2 Please note that a portion of the Fund's income may be subject to the
Alternative Minimum Tax ("AMT").
1 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
Dear Shareholder,
We are pleased to provide the semi-annual report for the Smith Barney Managed
Municipals Fund Inc. ("Fund") for the period ended August 31, 2000. In this
report we have summarized the period's prevailing economic and market conditions
and outlined our investment strategy. The information provided in this letter
represents the opinion of the manager and is not intended to be a forecast of
future events, a guarantee of future results nor investment advice.
Further, there is no assurance that certain securities will remain in or out of
the Fund. Please refer to pages 9 through 26 for a list and percentage breakdown
of the Fund's holdings. Also, please note any discussion of the Fund's holdings
is as of August 31, 2000 and is subject to change. A detailed summary of the
Fund's performance can be found in the appropriate sections that follow. We hope
you find this report to be useful and informative.
Performance Update
For the six months ended August 31, 2000, the Fund's Class A shares, without and
with sales charges returned 9.22% and 4.85%, respectively. In comparison, the
Lehman Brothers Municipal Bond Index ("Lehman Index")/1/ returned 6.80% for the
same period.
Municipal Bond Market Update
The municipal bond market had little reaction to the Federal Reserve Board's
("Fed's") decision to keep interest rates steady or to its view that risk in the
economy is weighted toward inflation. In our opinion, the bond market is still
pricing in anticipation of any possible Fed tightening by the end of the year.
However, we expect monetary policy to remain steady throughout 2000, and we
would not be surprised if the Fed were to shift to a more neutral stance before
year-end.
We also believe the Fed is likely to remain apolitical as the 2000 presidential
election nears. A critical point, which is often overlooked by many investors,
is that Fed monetary policy adjustments often take time to be absorbed into the
general economy. The Fed has tightened 175 basis points/2/ since June 1999 and
the recent rallies we have seen in the bond market are a result of changes
enacted since the Fed began raising interest rates.
Since the last Fed tightening on May 16, 2000, most sectors of the bond market
have begun to improve relative to U.S. Treasuries, following the recent rise of
their yields to high relative levels. While the decline in yields may mean that
bargains in the market may be more difficult to find, the good news is that bond
performance for the most part has improved. With improved performance, we have
seen better market psychology, which in turn may reduce risks going forward. (Of
course, no guarantees can be given that our expectations will be met.)
After accelerating sharply through the early months of 2000, global economic
growth appears to be peaking. Interest rate increases by the Fed have moderated
the U.S. expansion, but the tightening cycle may not be complete. Fed Chairman
Alan Greenspan has stated openly that he doubts whether economic growth needs to
slow markedly below potential in order to keep inflation low, but the matter
remains a key subject of debate at the Fed. In any case, among bond market
pundits, news of an economic slowdown typically calms fears of rising inflation
and fosters positive feelings regarding the future direction of bond prices.
In addition, a vibrant national economy has produced large cash surpluses in
many states and municipalities, causing general improvement in the credit
quality of municipal securities and giving some additional comfort to investors
regarding the creditworthiness of the securities they own.
--------------
1 The Lehman Index is a broad-based unmanaged index of municipal bonds. An
investor cannot invest directly in an index.
2 A basis point is 0.01% or one one-hundredth of a percent.
2 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
Under current market conditions, demand for bonds is fairly constant, so reduced
supply provides support to market prices. As a result, during these times of
rapid interest rate movements, much of the price volatility experienced in other
areas of the bond market and which many investors find so unsettling, is
smoothed in the municipal bond market.
Municipal bond prices in general have been very firm lately. Since late May, a
triple 'A' ten-year municipal index has experienced price improvement (and yield
decline) of 50 basis points or more. Demand in the municipal bond market has
been steady to increasing as recent volatility in the stock market has
undoubtedly led some investors to rethink their portfolio mix, and to establish
or augment their bond positions.
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 that
have remaining maturities at the time of purchase from three years to more than
30 years.
As of August 31, 2000, 94.4% of the Fund's holdings were rated
investment-grade,/4/ with 66.6% of the Fund invested in AAA/Aaa-rated bonds, the
highest possible rating. The Fund's largest holdings were concentrated in
transportation bonds (20.0%), hospital bonds (16.7%) and general obligation
bonds (13.9%).
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 added discounted high-quality bonds at the long end of
the yield curve,/5/ enabling us to invest our excess cash at higher yields.
The Fund's investment strategy going forward will be three-fold:
. To lengthen maturities in the Fund to take advantage of the
inexpensive valuations of municipal bonds relative to U.S. Treasuries;
. To focus on investing in high-grade issues; and
. To invest in discount paper, as this is where we believe we can obtain
the best values.
Another goal is to sell off some of our shorter-term maturities that were
defensive and stretch out longer on the yield curve. We see the best opportunity
for potential reward right now at the long end of the yield curve.
Municipal Bond Market Outlook
We believe that demand for municipal bonds may remain strong based on economic
issues related to the political campaign. One of the main topics is how the
various candidates would spend the significant federal government surplus. The
Congressional Budget Office's baseline projections show surpluses rising from
$232 billion in 2000 to $685 billion in 2010. The total budget surplus over ten
years is projected to be about $4.6 trillion.
In our opinion, 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 municipal bonds expected to be issued in 2000. Given the thinly traded
market and lack of liquidity that currently exist, we believe that any positive
catalyst, such as an increase in issue volume, could give the market much needed
momentum.
--------------
3 Please note that a portion of the Fund's income may be subject to the
Alternative Minimum Tax ("AMT").
4 Investment-grade bonds are those rated Aaa, Aa, A and Baa by Moody's
Investors Service, Inc. or AAA, AA, A and BBB by Standard & Poor's Ratings
Service, or that have an equivalent rating by any nationally recognized
statistical rating organization, or are determined by the manager to be of
equivalent quality.
5 The yield curve is the graphical depiction of the relationship between the
yield on bonds of the same credit quality but different maturities.
3 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
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 some investors may feel more
comfortable owning municipal bonds, even in a downturn. And lastly, recent
narrowing of spreads in the taxable market has made other fixed income
alternatives less attractive. All of these trends help to explain why we remain
optimistic about the prospects for the municipal bond market in the months
ahead.
Thank you for your investment in the Smith Barney Managed Municipals Fund Inc.
We look forward to continuing to help you pursue your financial goals in the
future.
Sincerely,
/s/ Joseph P. Deane
Joseph P. Deane
Vice President and Investment Officer
September 12, 2000
4 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
Historical Performance -- Class A Shares
---------------------------------------------------------------------------------------------------------
Net Asset Value
------------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns/1/
=========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
8/31/00 $14.16 $15.07 $0.38 $0.00 $0.00 9.22%+
---------------------------------------------------------------------------------------------------------
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
---------------------------------------------------------------------------------------------------------
2/28/98 15.61 16.19 0.79 0.48 0.00 12.30
---------------------------------------------------------------------------------------------------------
2/28/97 16.20 15.61 0.91 0.38 0.00 4.51
---------------------------------------------------------------------------------------------------------
2/29/96 15.47 16.20 0.90 0.08 0.00 11.34
---------------------------------------------------------------------------------------------------------
2/28/95 16.13 15.47 0.95 0.29 0.00 4.11
---------------------------------------------------------------------------------------------------------
2/28/94 16.71 16.13 0.88 0.90 0.00 7.41
---------------------------------------------------------------------------------------------------------
2/28/93 15.62 16.71 1.00 0.52 0.03 17.92
---------------------------------------------------------------------------------------------------------
2/29/92 14.98 15.62 1.05 0.00 0.02 11.79
---------------------------------------------------------------------------------------------------------
2/28/91 15.00 14.98 1.09 0.00 0.03 7.65
=========================================================================================================
Total $9.47 $2.76 $0.08
=========================================================================================================
<CAPTION>
---------------------------------------------------------------------------------------------------------
Historical Performance -- Class B Shares
---------------------------------------------------------------------------------------------------------
Net Asset Value
------------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns/1/
=========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
8/31/00 $14.16 $15.07 $0.34 $0.00 $0.00 8.91%+
---------------------------------------------------------------------------------------------------------
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
---------------------------------------------------------------------------------------------------------
2/28/98 15.60 16.19 0.71 0.48 0.00 11.81
---------------------------------------------------------------------------------------------------------
2/28/97 16.20 15.60 0.83 0.38 0.00 3.92
---------------------------------------------------------------------------------------------------------
2/29/96 15.47 16.20 0.82 0.08 0.00 10.78
---------------------------------------------------------------------------------------------------------
2/28/95 16.13 15.47 0.86 0.29 0.00 3.54
---------------------------------------------------------------------------------------------------------
2/28/94 16.71 16.13 0.80 0.90 0.00 6.86
---------------------------------------------------------------------------------------------------------
Inception* -- 2/28/93 15.81 16.71 0.31 0.52 0.01 11.26+
=========================================================================================================
Total $6.03 $2.76 $0.01
=========================================================================================================
</TABLE>
5 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
Historical Performance -- Class L Shares
---------------------------------------------------------------------------------------------------------
Net Asset Value
------------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns/1/
=========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
8/31/00 $14.15 $15.06 $0.33 $0.00 $0.00 8.89%+
---------------------------------------------------------------------------------------------------------
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
---------------------------------------------------------------------------------------------------------
2/28/98 15.60 16.18 0.70 0.48 0.00 11.69
---------------------------------------------------------------------------------------------------------
2/28/97 16.20 15.60 0.83 0.38 0.00 3.88
---------------------------------------------------------------------------------------------------------
2/29/96 15.47 16.20 0.82 0.08 0.00 10.76
---------------------------------------------------------------------------------------------------------
Inception*--2/28/95 14.30 15.47 0.27 0.29 0.00 12.36+
=========================================================================================================
Total $4.29 $1.34 $0.00
=========================================================================================================
<CAPTION>
---------------------------------------------------------------------------------------------------------
Historical Performance -- Class Y Shares
---------------------------------------------------------------------------------------------------------
Net Asset Value
------------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns/1/
=========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
8/31/00 $14.18 $15.08 $0.39 $0.00 $0.00 9.24%+
---------------------------------------------------------------------------------------------------------
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
---------------------------------------------------------------------------------------------------------
2/28/98 15.60 16.19 0.82 0.48 0.00 12.56
---------------------------------------------------------------------------------------------------------
2/28/97 16.20 15.60 0.94 0.38 0.00 4.59
---------------------------------------------------------------------------------------------------------
Inception*--2/29/96 15.63 16.20 0.85 0.08 0.00 9.84+
=========================================================================================================
Total $4.58 $1.05 $0.00
=========================================================================================================
<CAPTION>
It is the Fund's policy to distribute dividends monthly and capital gains, if any, annually.
---------------------------------------------------------------------------------------------------------
Average Annual Total Returns
---------------------------------------------------------------------------------------------------------
Without Sales Charges/1/
------------------------------------------------------------------------
Class A Class B Class L Class Y
=========================================================================================================
<S> <C> <C> <C> <C>
Six Months Ended 8/31/00+ 9.22% 8.91% 8.89% 9.24%
---------------------------------------------------------------------------------------------------------
Year Ended 8/31/00 7.28 6.66 6.62 7.40
---------------------------------------------------------------------------------------------------------
Five Years Ended 8/31/00 5.59 5.04 5.00 N/A
---------------------------------------------------------------------------------------------------------
Ten Years Ended 8/31/00 8.06 N/A N/A N/A
---------------------------------------------------------------------------------------------------------
Inception* through 8/31/00 9.97 6.68 7.35 6.13
=========================================================================================================
<CAPTION>
With Sales Charges/2/
------------------------------------------------------------------------
Class A Class B Class L Class Y
=========================================================================================================
<S> <C> <C> <C> <C>
Six Months Ended 8/31/00+ 4.85% 4.41% 6.82% 9.24%
---------------------------------------------------------------------------------------------------------
Year Ended 8/31/00 2.96 2.16 4.55 7.40
---------------------------------------------------------------------------------------------------------
Five Years Ended 8/31/00 4.74 4.89 4.79 N/A
---------------------------------------------------------------------------------------------------------
Ten Years Ended 8/31/00 7.62 N/A N/A N/A
---------------------------------------------------------------------------------------------------------
Inception* through 8/31/00 9.74 6.68 7.17 6.13
=========================================================================================================
</TABLE>
6 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Cumulative Total Returns
--------------------------------------------------------------------------------
Without Sales Charges/(1)/
================================================================================
Class A (8/31/90 through 8/31/00) 117.14%
--------------------------------------------------------------------------------
Class B (Inception* through 8/31/00) 65.87
--------------------------------------------------------------------------------
Class L (Inception* through 8/31/00) 51.02
--------------------------------------------------------------------------------
Class Y (Inception* through 8/31/00) 37.98
================================================================================
(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.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
* The 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.
7 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund at a Glance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Class A Shares of the Smith Barney Managed
Municipals Fund Inc. vs. the Lehman Brothers Municipal Bond Index and the Lipper
Peer Group Average+
--------------------------------------------------------------------------------
[GRAPH]
August 1990 -- August 2000
Smith Barney\Managed Lehman Bros.\Municipal Lipper Peer Group
Municipals Funds Inc. Bond Fund Index Average
Aug\1990 9,601 10,000 10,000
Feb\91 10,199 10,670 10,634
Feb\92 11,401 11,736 11,714
Feb\93 13,445 13,351 13,373
Feb\94 14,438 14,091 14,080
Feb\95 15,029 14,356 14,172
Feb\96 16,734 15,942 15,568
Feb\97 17,488 16,820 16,264
Feb\98 19,639 18,359 17,739
Feb\99 20,439 19,325 18,837
Feb\00 19,087 18,923 17,631
Aug\2000 20,846 20,208 18,765
+ Hypothetical illustration of $10,000 invested in Class A shares on August
31, 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 August 31, 2000. The Lehman Brothers Municipal Bond
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 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 August 31, 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.
--------------------------------------------------------------------------------
Top Ten States Represented*
--------------------------------------------------------------------------------
[GRAPH]
Alabama 2.8%
California 5.7%
Colorado 10.4%
Florida 5.8%
Massachusetts 8.6%
Michigan 4.5%
New Jersey 3.4%
New York 6.3%
Ohio 7.3%
Texas 18.3%
--------------------------------------------------------------------------------
Industry Breakdown*
--------------------------------------------------------------------------------
[GRAPH]
Transportation 20.0%
Hospital 16.7%
General Obligation 13.9%
Water & Sewer 12.4%
Education 6.9%
Utilities 6.8%
Cogeneration Facility 4.2%
Pre-Refunded 2.0%
Housing 1.9%
Other Muncipal Bonds 15.2%
* As a percentage of total investments. Holdings are as of August 31, 2000
and are subject to change.
8 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Alabama -- 2.8%
Huntsville, AL Solid Waste Disposal Authority & Residual Recovery Revenue,
MBIA-Insured:
$ 4,940,000 AAA 5.500% due 10/1/13 (b) $ 4,946,175
8,880,000 AAA 5.500% due 10/1/14 (b) 8,824,500
Jefferson County, AL Sewer Revenue, Capital Improvements, Series A, FGIC-Insured:
11,000,000 AAA 5.125% due 2/1/29 10,271,250
10,775,000 AAA 5.000% due 2/1/33 9,764,844
43,000,000 AAA 5.375% due 2/1/36 41,118,750
4,500,000 AAA Montgomery, AL BMC Special Care Facilities Financing Authority Revenue,
Baptist Health, Series B, 4.875% due 11/15/18 4,117,500
4,000,000 Aaa* Southeast, AL Gas District System Revenue, Series A, AMBAC-Insured, 5.625% due 6/1/25 4,015,000
------------------------------------------------------------------------------------------------------------------------------------
83,058,019
------------------------------------------------------------------------------------------------------------------------------------
Alaska -- 0.3%
9,850,000 AA+ Valdez, AK Marine Terminal Revenue, Series A, (British Petroleum Pipeline
Project), 5.850% due 8/1/25 (c) 9,850,000
------------------------------------------------------------------------------------------------------------------------------------
Arizona -- 1.6%
12,170,000 A- Greenlee County, AZ IDA, PCR, (Phelps Dodge Corp. Project), 5.450% due 6/1/09 12,124,362
3,500,000 A Maricopa County, AZ IDA, Multi-Family Housing Revenue, Series A, 6.500% due
10/1/25 3,609,375
100,000 A-1 Maricopa County, AZ PCR, Pollution Control Corp., Southern California Edison Co.,
Series A, 4.300% due 6/1/35 (d) 100,000
Mesa, AZ IDA, Discovery Health Systems Revenue, Series A:
14,000,000 AAA 5.625% due 1/1/19 14,175,000
8,600,000 AAA 5.625% due 1/1/29 8,664,500
1,500,000 AAA Phoenix, AZ Civic Import Corp., Apartment Revenue, Series A, FSA-Insured, 5.000%
due 7/1/25 1,404,375
2,500,000 AA+ Phoenix, AZ Civic Import Corp., (Municipal Courthouse Project), Excise Tax
Revenue, 5.250% due 7/1/24 2,390,625
1,200,000 AAA Phoenix, AZ Civic Import Corp., Water Systems Revenue, FGIC-Insured, 5.000% due
7/1/19 1,149,000
1,100,000 AA Phoenix, AZ General Obligation Unlimited, 4.750% due 7/1/19 999,625
1,200,000 AAA Prescott Valley, AZ Water District Revenue, MBIA-Insured, 4.875% due 1/1/19 1,122,000
2,415,000 AAA Scottsdale, AZ Preservation Authority, Excise Tax Revenue, FGIC-Insured, 4.500%
due 7/1/24 2,091,994
------------------------------------------------------------------------------------------------------------------------------------
47,830,856
------------------------------------------------------------------------------------------------------------------------------------
California -- 5.7%
3,000,000 AAA Almeda Corridor Transportation Authority, CA Revenue, Series A, 4.750% due
10/1/25 2,703,750
2,250,000 A* Apple Valley, CA Unified School District, COP, 5.900% due 9/1/11 2,376,563
3,650,000 AA- Beverly Hills, CA Public Financing Authority Lease Revenue, Capital Improvement
Project, Series A, 5.250% due 6/1/28 3,567,875
2,000,000 AAA Brawley, CA COP, (Water System Improvement Project), MBIA-Insured, 5.000% due
12/1/18 1,965,000
3,000,000 Ba1* California Educational Facilities Authority Revenue, (Pooled College &
University Projects), Series A, 5.625% due 7/1/23 2,786,250
California Health Facilities Finance Authority Revenue:
3,500,000 A2* Cedars-Sinai Medical Center, Series A, 6.125% due 12/1/19 3,574,375
11,720,000 A Kaiser Permanente, Series B, 5.250% due 10/1/13 11,544,200
4,000,000 A+ Sutter Health, Series A, 6.250% due 8/15/35 4,135,000
10,250,000 AAA California State Public Works Board, Lease Revenue, Department of Corrections,
Series A, AMBAC-Insured, 5.250% due 1/1/21 10,160,313
1,980,000 AAA California State University Headquarters Building Authority Lease,
Series B, 5.125% due 9/1/17 1,987,425
California Statewide Community Development Authority, COP:
2,000,000 A Kaiser Permanente, Remarketed 7/8/98, 5.300% due 12/1/15 1,950,000
10,500,000 AA St. Joseph Health System, 5.125% due 7/1/17 10,053,750
</TABLE>
See Notes to Financial Statements.
9 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
California -- 5.7% (continued)
<S> <C> <C> <C>
$ 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 $ 5,450,000
15,215,000 AAA Corona, CA Redevelopment Agency, Tax Allocation, (Redevelopment Project, Area
A),Series A, FGIC-Insured, 5.500% due 9/1/24 15,310,094
5,000,000 AAA Fresno County, CA Financing Authority, Solid Waste Revenue, (American Avenue
Landfill Project), MBIA-Insured, 5.750% due 5/15/14 5,300,000
3,000,000 AAA Inglewood, CA Public Financing Authority Revenue, Series A, AMBAC-Insured,
5.250% due 8/1/21 2,973,750
2,500,000 AA Kings River Conservation District, CA Pine Flat Power Revenue, Series A, 4.750%
due 1/1/20 2,328,125
Long Beach, CA Revenue, (Aquarium of the Pacific Project), Series A:
1,260,000 BBB 5.750% due 7/1/05 1,310,400
1,200,000 BBB 5.750% due 7/1/06 1,257,000
3,500,000 AAA Los Angeles, CA Public Works Financing Authority Lease Revenue,
AMBAC-Insured, 5.125% due 12/1/29 3,351,250
17,430,000 AAA Los Angeles, CA Unified School District, Series A, FGIC-Insured, 5.000% due
7/1/21 16,732,800
3,500,000 AAA Los Angeles County, CA Metropolitan Transportation Authority, Sales Tax Revenue,
Series C, 5.000% due 7/1/26 3,311,875
4,000,000 AAA Pasadena, CA Electrical Revenue, MBIA-Insured, 4.750% due 8/1/24 3,655,000
1,000,000 AAA Rancho Cucamonga, CA Redevelopment Agency Tax Allocation Project, (Rancho
Redevelopment Project), MBIA-Insured, 5.250% due 9/1/26 973,750
1,825,000 AAA Sacramento, CA Airport Systems Revenue, Series B, FGIC-Insured, 5.000% due 7/1/18 1,793,062
2,025,000 Aa3* Sacramento, CA City Financing Authority Revenue Capital Improvement, 5.600% due
6/1/25 2,060,437
4,420,000 AAA San Diego County, CA COP, Northern County Regional Expansion Revenue,
AMBAC-Insured, 5.250% due 11/15/19 4,436,575
San Francisco, CA City & County COP, San Bruno Jail No. 3:
3,000,000 AAA 5.250% due 10/1/20 2,992,500
31,000,000 AAA 5.250% due 10/1/33 30,070,000
5,500,000 AAA Santa Clara County, CA Finance Authority Lease Revenue, AMBAC-Insured,
6.750% due 11/15/20 (c) 6,166,875
1,515,000 AAA Victorville, CA Multi-Family Revenue, Wimbledon Apartments, Series A,
GNMA-Collateralized, 6.150% due 4/20/16 1,583,175
------------------------------------------------------------------------------------------------------------------------------------
167,861,169
------------------------------------------------------------------------------------------------------------------------------------
Colorado -- 10.4%
17,000,000 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 (c) 19,316,250
1,750,000 A- Aspen, CO Sales Tax Revenue, 5.250% due 11/1/15 1,708,438
Colorado Health Facilities Authority Revenue:
1,000,000 Aa3* Catholic Health Initiatives, Series A, 5.000% due 12/1/28 866,250
National Benevolent, Series C:
600,000 Baa2* 7.000% due 3/1/19 606,000
750,000 Baa2* 7.000% due 3/1/24 760,312
1,125,000 Baa2* 7.125% due 3/1/30 1,146,094
11,500,000 A Series B, Remarketed 7/8/98, 5.350% due 8/1/15 10,853,125
500,000 AAA Sisters of Charity Leavenworth, MBIA-Insured, 5.125% due 12/1/18 477,500
12,765,000 BBB+ Colorado Springs, CO Airport Revenue, Series A, 7.000% due 1/1/22 (b)(c) 13,195,819
7,000,000 AAA Colorado Springs, CO Utilities Revenue, Sub-Lien Systems Improvement,
MBIA-Insured, 5.000% due 11/15/27 6,370,000
</TABLE>
See Notes to Financial Statements.
10 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
Colorado -- 10.4% (continued)
<S> <C> <C> <C>
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 (e) $ 77,760,000
27,785,000 AAA Series B, zero coupon bond to yield 5.212% due 10/1/22 (e) 6,668,400
Denver, CO City & County Airport Revenue:
Series A:
26,500,000 BBB+ 14.000% due 11/15/08 (b)(c) 40,743,750
9,915,000 BBB+ 8.000% due 11/15/25 (b)(c) 10,237,237
27,000,000 AAA MBIA-Insured, 5.250% due 11/15/23 25,818,750
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) 3,728,400
Series C:
3,090,000 BBB+ 6.750% due 11/15/13 (b) 3,190,425
9,505,000 BBB+ 6.750% due 11/15/22 (b)(c) 9,802,031
410,000 AAA Pre-Refunded -- Escrowed with state and local government securities to
11/15/02 Call @ 102, 6.750% due 11/15/13 (b) 436,137
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) 2,691,287
Series D:
17,760,000 AAA 7.000% due 11/15/25 (b) 17,937,600
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) 4,799,119
Denver, CO City & County COP, Series B:
7,420,000 AAA 5.500% due 12/1/21 7,420,000
4,000,000 AAA 5.500% due 12/1/25 3,960,000
5,655,000 AAA AMBAC-Insured, 5.750% due 12/1/17 5,867,063
4,840,000 AAA Denver, CO City & County School District No.1, General Obligation Unlimited,
FGIC-Insured, 5.000% due 12/1/23 4,525,400
E-470 Public Highway Authority, Colorado Revenue, Series A, MBIA-Insured:
2,620,000 AAA 5.000% due 9/1/15 2,538,125
23,000,000 AAA 4.750% due 9/1/23 20,527,500
------------------------------------------------------------------------------------------------------------------------------------
303,951,012
------------------------------------------------------------------------------------------------------------------------------------
Connecticut -- 0.8%
Mashantucket Western Pequot Tribe, Connecticut Special Revenue:
4,000,000 Baa3* Series A, 5.500% due 9/1/28 (f) 3,505,000
Series B:
1,000,000 Baa3* 5.550% due 9/1/08 (f) 1,013,750
2,000,000 Baa3* 5.700% due 9/1/12 (f) 1,992,500
6,500,000 Baa3* 5.750% due 9/1/18 (c)(f) 6,231,875
South Central, CT Regional Water Authority, Water System Revenue, 16th Series,
AMBAC-Insured:
2,715,000 Aaa* 5.375% due 8/1/25 2,681,062
7,920,000 Aaa* 5.375% due 8/1/30 7,771,500
------------------------------------------------------------------------------------------------------------------------------------
23,195,687
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia -- 0.7%
District of Columbia Revenue:
3,000,000 AAA American Association for the Advancement of Science Revenue, AMBAC-Insured,
5.250% due 1/1/16 2,996,250
Georgetown University, Series D, MBIA-Insured, Converted 5/1/98:
4,300,000 AAA 5.300% due 4/1/15 4,332,250
3,900,000 AAA 5.350% due 4/1/16 3,924,375
</TABLE>
See Notes to Financial Statements.
11 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
District of Columbia -- 0.7% (continued)
$ 3,700,000 AAA 5.350% due 4/1/17 $ 3,709,250
5,300,000 AAA 5.350% due 4/1/18 5,300,000
------------------------------------------------------------------------------------------------------------------------------------
20,262,125
------------------------------------------------------------------------------------------------------------------------------------
Florida -- 5.8%
Boynton Beach, FL Multi-Family Housing Revenue, Clipper Cove Apartments:
750,000 A+ 6.350% due 7/1/16 781,875
1,325,000 A+ 6.400% due 7/1/21 1,373,031
Broward County, FL GO:
1,000,000 Aa2* 12.500% due 1/1/02 1,101,250
1,250,000 Aa2* 12.500% due 1/1/03 1,467,188
1,500,000 Aa2* 12.500% due 1/1/04 1,860,000
1,750,000 Aa2* 12.500% due 1/1/05 2,281,563
2,000,000 Aa2* 12.500% due 1/1/06 2,725,000
2,000,000 AAA Clay County, FL School Board COP, (Master Lease Program), MBIA-Insured, 5.750%
due 7/1/22 2,037,500
3,270,000 AAA Dade County, FL GO, MBIA-Insured, 5.125% due 10/1/21 3,106,500
Florida State Board of Education GO, Capital Outlay Public Education:
Series A:
4,010,000 AA+ 5.125% due 6/1/21 3,844,587
16,965,000 AA+ 5.250% due 6/1/24 16,413,637
10,365,000 AA+ 5.125% due 6/1/30 9,743,100
12,900,000 AA+ Series B, 4.500% due 6/1/27 10,803,750
6,850,000 AA+ Florida State Department of Transportation, Series A, 4.750% due 7/1/24 6,053,688
6,190,000 AAA Hillsborough County, FL Capital Improvement Program Revenue, (Mosi Project),
Series A, MBIA-Insured, 5.125% due 7/1/22 5,880,500
100,000 A-1+ Hillsborough County, FL IDA, Exempt Facilities Revenue, National Gypsum Company
Apollo Project, Series A, 4.450% due 4/1/30 (d) 100,000
Martin County, FL IDA, Indiantown Cogeneration:
13,500,000 BBB- Project A, 7.875% due 12/15/25 (b)(c) 13,770,000
6,010,000 BBB- Project B, 8.050% due 12/15/25 (b) 6,182,787
1,000,000 A2* Martin County, FL Special Assessment Revenue, Tropical Farms Water, 6.100% due
11/1/15 1,040,000
Miami-Dade County, FL:
8,040,000 AAA Professional Sports Franchise Facility, MBIA-Insured, 4.750% due 10/1/30 7,045,050
1,805,000 AAA School Board, Series C, FSA-Insured, 5.000% due 8/1/16 1,735,056
2,935,000 AAA Special Obligation, (Courthouse Center Project), Series B, AMBAC-Insured,
4.750% due 4/1/20 2,641,500
Orange County, FL School Board COP:
24,250,000 Aaa* AMBAC-Insured, 5.500% due 8/1/25 24,068,125
15,500,000 Aaa* Series A, 5.250% due 8/1/23 15,015,625
Orange County, FL Tourist Development Tax Revenue, Series A, AMBAC-Insured:
4,460,000 AAA 4.750% due 10/1/21 3,980,550
4,050,000 AAA 4.750% due 10/1/24 3,569,063
10,000,000 AAA Port St. Lucie, FL Utilities Revenue, Refunding & Improvement, Series A,
MBIA-Insured, 5.125% due 9/1/27
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 2,895,000
5,000,000 AAA Tallahassee, FL Energy Systems Revenue, Series A, 4.750% due 10/1/26 4,375,000
Tampa, FL Revenue Bonds, (Florida Aquarium Inc. Project), (Pre-Refunded--
Escrowed with U.S. government securities to 5/1/02 Call @ 102):
2,405,000 NR 7.550% due 5/1/12 (g) 2,567,337
3,000,000 NR 7.750% due 5/1/27 (c)(g) 3,213,750
------------------------------------------------------------------------------------------------------------------------------------
171,059,512
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
12 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Georgia -- 1.0%
$ 27,415,000 AAA Atlanta, GA Water & Wastewater Revenue, Series A, FGIC-Insured, 5.000% due
11/1/29 $25,050,456
200,000 A-1 Burke County, GA Development Authority PCR, Georgia Power Co., Series 3,
4.300% due 9/1/25 (d) 200,000
1,000,000 NR Private Colleges & Universities Authority Revenue, (Mercer University Project),
Series A, 5.375% due 10/1/29 932,500
3,500,000 BBB- Savannah, GA Economic Development Authority Revenue, (College of Art & Design
Inc. Project), 6.900% due 10/1/29 3,657,500
------------------------------------------------------------------------------------------------------------------------------------
29,840,456
------------------------------------------------------------------------------------------------------------------------------------
Hawaii -- 0.9%
2,500,000 AAA Hawaii State Airports System Revenue, Series A, FGIC-Insured, 5.750% due 7/1/21 2,568,750
Hawaii State Department of Budget & Finance, Special Purpose Revenue,
Kaiser Permanente, Series A:
16,545,000 A 5.100% due 3/1/14 15,324,806
4,000,000 A 5.150% due 3/1/15 3,695,000
Hawaii State GO:
500,000 AAA 5.000% due 10/1/16 483,125
1,000,000 AAA MBIA-Insured, 4.750% due 4/1/18 925,000
2,500,000 AAA Series CP, FGIC-Insured, 5.000% due 10/1/17 2,396,875
------------------------------------------------------------------------------------------------------------------------------------
25,393,556
------------------------------------------------------------------------------------------------------------------------------------
Illinois -- 2.5%
12,500,000 AAA Chicago, IL O'Hare International Airport Revenue, Second Lien, Series C,
MBIA-Insured, 5.000% due 1/1/18 11,859,375
3,585,000 AAA Chicago, IL Wastewater Transmission Revenue, Second Lien, MBIA-Insured,
5.750% due 1/1/25 3,620,850
8,000,000 AAA Chicago, IL Water Revenue, 5.250% due 11/1/27 7,570,000
Illinois Health Facilities Authority Revenue:
6,000,000 AAA Alexian Brothers Health Systems, FSA-Insured, 5.000% due 1/1/19 5,505,000
1,250,000 AAA Edward Obligation Group, Series A, AMBAC-Insured, 5.250% due 2/15/17 1,207,812
7,000,000 AAA Ingalls Health System Project, MBIA-Insured, 6.250% due 5/15/24 7,166,250
7,680,000 Aaa* Memorial Health Systems, MBIA-Insured, 5.250% due 10/1/18 7,372,800
2,750,000 AAA Illinois State COP, Department of Central Management Services, Public Aid
Building, MBIA-Insured, 5.650% due 7/1/17 2,798,125
Illinois State GO:
FGIC-Insured:
4,150,000 AAA 5.250% due 6/1/18 4,035,875
3,300,000 AAA 5.375% due 2/1/19 3,242,250
6,500,000 AAA 5.250% due 12/1/20 6,248,125
10,000,000 AAA MBIA-Insured, 5.625% due 6/1/25 10,025,000
3,430,000 AAA University of Illinois Revenue Bonds, Auxiliary Facilities Systems, Series A,
MBIA-Insured, 5.750% due 4/1/19 3,498,600
------------------------------------------------------------------------------------------------------------------------------------
74,150,062
------------------------------------------------------------------------------------------------------------------------------------
Indiana -- 1.0%
4,500,000 AAA Delaware County, IN Hospital Authority, Cardinal Health Systems, AMBAC-Insured,
5.000% due 8/1/16 4,275,000
3,005,000 AAA Indiana Bond Bank, State Revenue, Guarantee-State Revolving Fund, (Project A),
6.250% due 2/1/09 3,166,519
Indiana Health Facilities Financing Authority Hospital Revenue, Riverview
Hospital:
305,000 Baa1* 6.500% due 8/1/01 307,690
200,000 Baa1* 6.600% due 8/1/02 203,000
</TABLE>
See Notes to Financial Statements.
13 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
Indiana -- 1.0% (continued)
<S> <C> <C> <C>
$ 2,200,000 AAA Indiana Municipal Power Agency, Power Supply Systems Revenue, Special
Obligation, 1st Crossover, Series B, MBIA-Insured, 5.200% due 1/1/14 $ 2,194,500
Northwest Allen County, IN Middle School Building Corp., First Mortgage,
MBIA-Insured:
715,000 AAA 4.800% due 1/15/13 681,931
245,000 AAA 4.800% due 7/15/13 233,669
535,000 AAA 4.900% due 7/15/14 510,256
2,500,000 AA- Petersburg, IN PCR, (Indianapolis Power & Light Co. Project), 6.625% due 12/1/24 2,609,375
15,000,000 AAA Rockport, IN PCR, (Michigan Power Co. Project), Series A, AMBAC-Insured,
6.550% due 6/1/25 (c) 15,862,500
------------------------------------------------------------------------------------------------------------------------------------
30,044,440
------------------------------------------------------------------------------------------------------------------------------------
Kansas -- 0.4%
2,575,000 Aaa* Kansas State Development Finance Authority Revenue, Public Water Supply
Revolving Loan, Series 2, AMBAC-Insured, 5.625% due 4/1/23 2,591,094
3,000,000 AAA Topeka, KS Public Building Commission, (10th & Jackson Projects),
MBIA-Insured, 4.875% due 6/1/19 2,767,500
2,000,000 Aaa* Wyandotte County, KS School District No. 204 GO, (Bonner Springs), Series A,
FSA-Insured, 5.600% due 9/1/20 2,017,500
3,145,000 AAA Wyandotte County, KS Unified School District No. 202 GO, AMBAC-Insured, 4.750%
due 9/1/17 2,897,331
------------------------------------------------------------------------------------------------------------------------------------
10,273,425
------------------------------------------------------------------------------------------------------------------------------------
Kentucky -- 0.1%
1,835,000 AAA Kentucky State Property & Buildings Commission Revenues, (Project No. 66),
Series A, MBIA-Insured, 5.700% due 5/1/17 1,890,050
100,000 A-1+ Louisville & Jefferson County, KY Regional Airport Authority Special Facilities
Revenue, UPS Worldwide Forwarding, Series B, 4.300% due 1/1/29 (d) 100,000
------------------------------------------------------------------------------------------------------------------------------------
1,990,050
------------------------------------------------------------------------------------------------------------------------------------
Maine -- 0.1%
3,385,000 AAA University of Maine System Revenue, Series A, AMBAC-Insured, 5.500% due 3/1/30 3,338,456
------------------------------------------------------------------------------------------------------------------------------------
Maryland -- 0.6%
2,000,000 AAA Baltimore County, MD County Commission Mortgage Revenue, (Northbrooke Apartments
Project), Series A, GNMA-Collateralized, 6.350% due 1/20/21 (c) 2,085,000
Baltimore, MD GO, Series A, FGIC-Insured:
2,745,000 AAA 5.750% due 10/15/15 2,971,463
1,165,000 AAA 5.750% due 10/15/16 1,261,112
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 1,424,844
67,000,000 NR Maryland State Energy Financing Administration, Solid Waste Disposal Revenue,
(Hagerstown Project), 9.000% due 10/15/16 (b)(e) 6,030,000
2,725,000 A Maryland State Health & Higher Educational Facilities Authority Revenue,
Kaiser Permanente, Series A, 5.375% due 7/1/15 2,636,437
------------------------------------------------------------------------------------------------------------------------------------
16,408,856
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts -- 8.6%
2,200,000 AAA Holyoke, MA GO, Series A, FSA-Insured, 5.500% due 6/15/16 2,230,250
Massachusetts Bay Transportation Authority, General Transportation System:
14,490,000 AAA Series A, MBIA-Insured, 4.500% due 3/1/26 12,171,600
Series B:
6,000,000 AAA AMBAC-Insured, 5.375% due 3/1/25 5,842,500
</TABLE>
See Notes to Financial Statements.
14 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Massachusetts -- 8.6% (continued)
FSA-Insured:
$ 15,000,000 AAA 5.250% due 3/1/20 $14,531,250
34,200,000 AAA 5.250% due 3/1/26 32,618,250
Massachusetts Municipal Wholesale Electric Co., Power Supply System Revenue:
2,950,000 AAA Series A, AMBAC-Insured, 5.000% due 7/1/17 2,820,938
9,435,000 AAA Series B, MBIA-Insured, 5.000% due 7/1/17 9,022,219
4,000,000 AA+ Massachusetts Sales Tax Revenue, Series A, 5.500% due 7/1/30 3,935,000
10,430,000 Aaa* Massachusetts State College Building Authority Revenue, Series 1, MBIA-Insured,
5.375% due 5/1/39 9,921,537
1,000,000 A- Massachusetts State Development Finance Agency Revenue, Clark University Issue,
5.125% due 7/1/18 915,000
Massachusetts State Health and Educational Facilities Authority Revenue:
7,500,000 AA- Boston College Issue, Series L, 5.000% due 6/1/26 6,815,625
17,120,000 Aaa* Brandeis University Issue, Series J, MBIA-Insured, 5.000% due 10/1/26 15,536,400
2,000,000 A Hebrew Rehabilitation Center for Aged, Series C, 5.250% due 7/1/17 1,825,000
4,500,000 AAA Northeastern University, Series 1, MBIA-Insured, 5.000% due 10/1/29 4,061,250
Partners Healthcare Systems, Series B:
3,000,000 AA- 5.250% due 7/1/13 2,880,000
1,000,000 AA- 5.250% due 7/1/14 948,750
2,000,000 AA- 5.250% due 7/1/15 1,875,000
7,000,000 AA- 5.125% due 7/1/19 6,247,500
2,500,000 AAA Massachusetts State HFA, Housing Development, Series B, MBIA-Insured,
5.300% due 12/1/17 2,465,625
Massachusetts State Turnpike Authority, Metro Highway Systems Revenue, Series A:
6,900,000 AAA 5.250% due 1/1/29 6,520,500
60,360,000 AAA AMBAC-Insured, 4.750% due 1/1/34 51,985,050
MBIA-Insured:
8,000,000 AAA 5.250% due 1/1/29 7,580,000
2,100,000 AAA 5.000% due 1/1/37 1,879,500
12,000,000 Aaa* Massachusetts State Water Pollution Abatement, New Bedford, PG-Series A,
FGIC-Insured, 4.750% due 2/1/26 10,500,000
Massachusetts State Water Resources Authority:
16,785,000 AAA MBIA-Insured, 5.000% due 12/1/25 15,274,350
4,000,000 AAA Series A, FSA-Insured, 4.750% due 8/1/27 3,485,000
Series B:
3,000,000 A1* 5.500% due 3/1/17 3,007,500
11,635,000 AAA MBIA-Insured, 4.750% due 12/1/21 10,442,412
4,605,000 AAA Series C, MBIA-Insured, 5.250% due 12/1/20 4,449,581
------------------------------------------------------------------------------------------------------------------------------------
251,787,587
------------------------------------------------------------------------------------------------------------------------------------
Michigan -- 4.5%
5,000,000 AAA Detroit & Wayne Counties, MI Stadium Authority Revenue, FGIC-Insured,
5.250% due 2/1/27 4,762,500
3,000,000 AAA Detroit, MI Water Supply System, Series A, FGIC-Insured, 5.750% due 7/1/26 3,048,750
1,000,000 AAA Grand Valley, MI State University Revenue, MBIA-Insured, 5.250% due 10/1/17 1,005,000
2,140,000 AAA Ingham County, MI Building Authority, AMBAC-Insured, 5.000% due 11/1/16 2,067,775
21,500,000 AAA Michigan Public Power Agency Revenue, (Belle River Project), Series A,
MBIA-Insured, 5.250% due 1/1/18 21,123,750
5,530,000 AAA Michigan State COP, AMBAC-Insured, 5.500% due 6/1/27 5,467,787
Michigan State Hospital Finance Authority Revenue, Healthcare Systems:
5,355,000 A 6.125% due 11/15/19 5,308,144
2,500,000 A 6.250% due 11/15/24 2,500,000
</TABLE>
See Notes to Financial Statements.
15 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
Michigan -- 4.5% (continued)
<S> <C> <C> <C>
Michigan State Strategic Fund, Resource Recovery Limited Obligation Revenue,
Central Wayne Energy:
Series A:
$ 8,000,000 NR 6.900% due 7/1/19 /b/ $ 7,380,000
9,000,000 NR 7.000% due 7/1/27 /b/ 8,201,250
12,000,000 NR Series B, 6.800% due 7/1/13 /b/ 11,235,000
5,500,000 AAA Michigan State Trunk Line, Series A, 5.000% due 11/1/26 5,066,875
55,000,000 BB+ Midland County, MI Economic Development Corp., Subordinated Limited Obligation,
Series A, 6.875% due 7/23/09 /b//c/ 56,100,000
------------------------------------------------------------------------------------------------------------------------------------
133,266,831
------------------------------------------------------------------------------------------------------------------------------------
Minnesota -- 2.7%
Hennepin County, MN Lease Revenue, COP:
2,955,000 Aa1* 5.000% due 11/15/14 2,892,206
3,105,000 Aa1* 5.000% due 11/15/15 3,019,613
Minneapolis & St. Paul, MN Airport Revenue, Series A:
14,990,000 AAA 5.125% due 1/1/25 14,128,075
15,110,000 AAA 5.000% due 1/1/30 13,731,213
28,950,000 AAA FGIC-Insured, 5.125% due 1/1/31 27,176,812
Minnesota State, General Obligation Unlimited:
7,400,000 AAA 5.250% due 8/1/18 7,316,750
6,375,000 AAA 5.250% due 8/1/19 6,271,406
500,000 A3* Minnesota State, Higher Education Facility Authority Revenue, St. Johns
University, Series Four-L, 5.350% due 10/1/17 481,250
4,000,000 AA+ North St. Paul Maplewood, MN ISD, No. 622, Series A, 5.125% due 2/1/20 3,835,000
------------------------------------------------------------------------------------------------------------------------------------
78,852,325
------------------------------------------------------------------------------------------------------------------------------------
Mississippi -- 0.1%
2,000,000 Aaa* Jackson, MS Public School District GO, Limited Tax Notes, Series B,
AMBAC-Insured, 5.375% due 10/1/20 1,975,000
------------------------------------------------------------------------------------------------------------------------------------
Missouri -- 0.1%
4,000,000 Aaa* Springfield, MO (Capital Improvements Project), Public Building Corp., Leasehold
Revenue, AMBAC-Insured, 5.375% due 6/1/19 3,965,000
------------------------------------------------------------------------------------------------------------------------------------
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/ 32,266,125
------------------------------------------------------------------------------------------------------------------------------------
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 4,943,125
5,575,000 AAA Nevada State GO, (Projects 66 & 67), Series A, FGIC-Insured, 5.000% due 5/15/28 5,066,281
------------------------------------------------------------------------------------------------------------------------------------
10,009,406
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire -- 0.1%
3,000,000 AAA Manchester, NH Apartment Revenue, Series A, MBIA-Insured, 4.500% due 1/1/28 2,512,500
------------------------------------------------------------------------------------------------------------------------------------
New Jersey -- 3.4%
1,425,000 AAA Middlesex County, NJ Improvement Authority Utilities System Revenue,
(Perth Amboy Franchise Project), Series A, AMBAC-Insured, 5.000% due 9/1/29 1,307,437
2,465,000 Aaa* Mount Holly, NJ Municipal Utilities Authority Sewer Revenue, MBIA-Insured,
4.750% due 12/1/28 2,153,794
3,000,000 NR New Jersey EDA Revenue, The Seeing Eye Inc., 6.200% due 12/1/24 3,101,250
2,000,000 Aaa* New Jersey EDA State Lease Revenue, Bergen County Administrative Complex,
MBIA-Insured, 4.750% due 11/15/26 1,770,000
</TABLE>
See Notes to Financial Statements.
16 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
New Jersey -- 3.4% (continued)
<S> <C> <C> <C>
New Jersey Health Care Facilities Financing Authority Revenue:
Barnert Hospital, MBIA-Insured:
$ 495,000 AAA 4.750% due 2/1/15 $ 460,350
685,000 AAA 4.750% due 8/1/15 636,194
575,000 AAA 4.750% due 8/1/16 527,562
5,000,000 AAA FSA-Insured, 5.250% due 7/1/19 4,843,750
2,500,000 BBB Rahway Hospital Obligation Group, 5.000% due 7/1/08 2,240,625
Robert Wood Johnson University Hospital:
2,280,000 A+ 5.500% due 7/1/14 2,282,850
1,000,000 A+ 5.600% due 7/1/15 1,002,500
10,045,000 A+ 5.700% due 7/1/20 9,944,550
11,000,000 A+ 5.750% due 7/1/25 10,890,000
24,570,000 A+ 5.750% due 7/1/31 24,232,162
New Jersey State GO:
22,000,000 AA+ 4.500% due 2/1/17 19,690,000
13,805,000 AA+ 4.500% due 2/1/18 12,251,938
2,250,000 Aa2* New Jersey State Transportation Trust Fund, Series A, 5.000% due 6/15/17 2,140,313
1,500,000 AAA South Jersey Transportation Systems Authority Revenue, AMBAC-Insured, 5.125% due
11/1/22 1,419,375
------------------------------------------------------------------------------------------------------------------------------------
100,894,650
------------------------------------------------------------------------------------------------------------------------------------
New York -- 6.3%
3,470,000 Aaa* Allegany County, NY IDA, Civic Facilities Revenue, Alfred University,
MBIA-Insured, 5.000% due 8/1/18 3,287,825
Metropolitan Transportation Authority of New York, Commuter Facilities Revenue:
Dedicated Tax Fund, Transit Facilities Revenue:
Series A:
10,465,000 AAA FGIC-Insured, 5.875% due 4/1/25 10,739,706
4,500,000 AAA FSA-Insured, 5.250% due 4/1/23 4,308,750
2,500,000 AAA Series B, 4.875% due 7/1/18 2,309,375
5,000,000 AAA Series B, AMBAC-Insured, 5.000% due 7/1/20 4,693,750
9,500,000 AAA Series D, MBIA-Insured, 5.125% due 7/1/22 8,930,000
1,100,000 AAA Municipal Assistance Corp. for City of Troy, NY Series A, MBIA-Insured, 5.000%
due 1/15/16 1,058,750
11,750,000 AAA Nassau County, NY Healthcare Corp., Health Systems Revenue, FSA-Insured,
5.500% due 8/1/19 11,647,188
2,500,000 AAA Nassau County, NY IDA, Civic Facilities Revenue, (Hofstra University Project),
4.750% due 7/1/28 2,187,500
3,000,000 AAA New York, NY City Health & Hospital Corp. Revenue, Health Systems, Series A,
5.000% due 2/15/20 2,760,000
4,000,000 AAA New York, NY City IDA, Civic Facilities Revenue, (Lighthouse International
Project),
MBIA-Insured, 4.500% due 7/1/33 3,285,000
1,280,000 AAA New York, NY City IDA, Civic Facilities Revenue, (Trinity Episcopal School Corp.
Project),
MBIA-Insured, 5.250% due 6/15/17 1,259,200
New York, NY Metropolitan Triborough Authority, AMBAC-Insured:
6,000,000 AAA 5.875% due 1/1/30 6,150,000
13,500,000 AAA Series A, 5.250% due 1/1/29 12,774,375
New York, NY Municipal Water Finance Authority, Water & Sewer Systems Revenue:
Series A, FGIC-Insured:
5,605,000 AAA 4.750% due 6/15/31 4,827,306
5,000,000 AAA 5.750% due 6/15/31 5,068,750
Series B:
8,000,000 AA 6.000% due 6/15/33 8,310,000
5,240,000 AAA MBIA-Insured, 5.375% due 5/15/19 5,174,500
</TABLE>
See Notes to Financial Statements.
17 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
New York -- 6.3% (continued)
New York, NY Transitional Finance Authority Revenue, Future Tax Secured:
$ 5,000,000 AA Series A, 4.750% due 11/15/16 $ 4,668,750
4,515,000 A-1+ Series B, 4.750% due 11/1/17 4,131,225
300,000 AA Subseries B-1, 4.150% due 11/1/27 (d) 300,000
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 5,331,250
Iona College, MBIA-Insured:
485,000 AAA 6.600% due 7/1/07 502,256
420,000 AAA 6.600% due 7/1/08 434,738
555,000 AAA 6.600% due 7/1/09 574,247
540,000 AAA 6.700% due 7/1/10 558,889
7,000,000 AAA Lease Revenue, Court Facilities, City of NY Issue, AMBAC-Insured, 5.750% due
5/15/30 7,122,500
2,700,000 P-1* New York State Energy Research and Development, PCR, (Niagara Mohawk
Power Corp.), Series B, 4.150% due 12/1/25 (d) 2,700,000
2,000,000 A New York State GO, 12.000% due 11/15/03 2,437,500
6,000,000 AAA New York State Medical Care Facilities Finance Agency Revenue, FGIC-Insured,
5.250% due 2/15/19 5,767,500
New York State Thruway Authority, Highway & Bridge Transportation Fund,
FGIC-Insured:
Series A:
7,030,000 AAA 5.000% due 4/1/18 6,608,200
7,010,000 AAA 5.000% due 4/1/19 6,554,350
Series B:
2,305,000 AAA 5.400% due 4/1/17 2,307,881
2,000,000 AAA 5.500% due 4/1/18 2,007,500
6,595,000 AAA 5.500% due 4/1/19 6,603,244
5,950,000 AAA 5.600% due 4/1/20 6,009,500
New York State Urban Development Corp. Revenue, Correctional Capital Facilities,
FSA-Insured:
7,500,000 AAA 5.000% due 1/1/19 7,078,125
5,000,000 AAA 5.000% due 1/1/20 4,700,000
Series A:
2,895,000 AAA 5.000% due 1/1/18 2,746,631
3,250,000 AAA 5.250% due 1/1/21 3,111,875
100,000 A-1+ Port Authority of NY & NJ, Special Obligation Revenue, Series 3, 4.050% due
6/1/20 (d) 100,000
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 7/1/18 991,250
3,000,000 Aa3* Triborough Bridge & Tunnel Authority of New York, General Purpose Revenue Bonds,
Series B, 5.500% due 1/1/30 2,951,250
1,000,000 AAA Yonkers, NY GO, FGIC-Insured, Series B, 5.000% due 9/1/17 943,750
------------------------------------------------------------------------------------------------------------------------------------
186,014,386
------------------------------------------------------------------------------------------------------------------------------------
North Carolina -- 1.2%
4,500,000 A1* Carteret County, NC COP, (Elementary School Project), 6.500% due 2/1/07 4,770,000
2,000,000 AA+ Charlotte, NC Water & Sewer Systems Revenue, 5.250% due 6/1/24 1,920,000
North Carolina Medical Care Commission:
Health Care Facilities Revenue:
3,000,000 AA Carolina Medicorp Project, 5.125% due 5/1/16 2,857,500
1,095,000 A Novant Health Project, Series B, 5.000% due 10/1/17 988,237
Hospital Revenue:
4,500,000 AA- First Health of the Carolinas, 4.750% due 10/1/26 3,802,500
14,265,000 AAA Pitt County Memorial Hospital, Series A, MBIA-Insured, 4.750% due 12/1/28 12,250,069
</TABLE>
See Notes to Financial Statements.
18 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
North Carolina -- 1.2% (continued)
$ 3,500,000 AA- Raleigh Durham, NC Airport Authority Special Facilities Revenue,
American Airlines, Series B, LOC Bank America, 4.350% due 11/1/15 $ 3,500,000
2,500,000 AA+ Raleigh, NC Combined Enterprise System Revenue, 4.750% due 3/1/19 2,262,500
500,000 AAA Sampson Area Development Corp., Installment Payment Revenue, MBIA-Insured,
4.750% due 6/1/19 455,625
1,250,000 AAA University of North Carolina Hospital, Chapel Hill Revenue, AMBAC-Insured,
5.000% due 2/15/24 1,143,750
------------------------------------------------------------------------------------------------------------------------------------
33,950,181
------------------------------------------------------------------------------------------------------------------------------------
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 1,003,750
------------------------------------------------------------------------------------------------------------------------------------
Ohio -- 7.3%
Akron, Bath and Copley, OH Joint Township Hospital
District, Hospital Revenue, (Akron General
Medical Center Project), AMBAC-Insured:
14,130,000 AAA 5.375% due 1/1/17 (c) 14,059,350
11,150,000 AAA 5.375% due 1/1/22 10,871,250
8,375,000 AAA Akron, OH EDA Revenue, MBIA-Insured, 5.000% due 12/1/18 8,029,531
1,000,000 Aaa* Brecksville-Broadview Heights, OH City School District,
FGIC-Insured, 6.500% due 12/1/16 1,087,500
Clermont County, OH Hospital Facilities Revenue, Mercy Health Systems, Series B,
AMBAC-Insured:
3,415,000 AAA 5.625% due 9/1/16 3,483,300
1,000,000 AAA 5.625% due 9/1/21 1,005,000
Cleveland, OH Waterworks Revenue, Refunding & Improvement, First Mortgage,
Series H, MBIA-Insured:
1,000,000 AAA 5.625% due 1/1/13 1,036,250
15,000 AAA 5.700% due 1/1/14 14,794
985,000 AAA Pre-Refunded -- Escrowed with state and local government securities to 1/1/06
Call @ 102, 5.700% due 1/1/14 1,056,413
Cuyahoga County, OH Hospital Revenue, Refunding & Improvement:
1,000,000 AAA Metrohealth System Project, MBIA-Insured, 5.625% due 2/15/17 1,015,000
Series A:
3,250,000 AAA 5.125% due 2/15/15 3,193,125
7,025,000 AAA 5.125% due 2/15/16 6,849,375
4,890,000 AAA 5.125% due 2/15/17 4,731,075
13,935,000 AAA 5.250% due 2/15/19 13,516,950
3,750,000 AA- Series B, 5.125% due 1/1/29 3,346,875
Cuyahoga County, OH Hospital Revenue, University Hospital Systems, AMBAC-Insured:
2,500,000 AAA 5.400% due 1/15/19 2,443,750
8,000,000 AAA 5.500% due 1/15/30 7,830,000
4,000,000 AAA Delaware County, OH GO, Sewer District, MBIA-Insured, 4.750% due 12/1/24 3,555,000
4,065,000 AAA Franklin County, OH Convention Facilities Authority, Tax & Lease Revenue
Anticipation Bonds, MBIA-Insured, 5.000% due 12/1/17 3,912,562
5,400,000 Aaa* Greene County, OH Sewer System Revenue, (Governmental Enterprise),
AMBAC-Insured, 5.625% due 12/1/25 5,460,750
Hamilton County, OH Sales Tax, MBIA-Insured:
1,500,000 AAA Football Project-A, 4.750% due 12/1/27 1,321,875
11,400,000 AAA Football Project-B, 5.000% due 12/1/27 10,530,750
</TABLE>
See Notes to Financial Statements.
19 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Ohio -- 7.3% (continued)
Lucas County, OH Hospital Revenue, Promedia Healthcare Obligation Group,
AMBAC-Insured:
$ 10,000,000 AAA 5.375% due 11/15/23 $ 9,725,000
38,050,000 AAA 5.375% due 11/15/29 36,575,563
3,000,000 Aaa* Medina, OH City School District, GO, FGIC-Insured, 5.000% due 12/1/18 2,895,000
1,630,000 AA- New Lexington, OH School District, GO, 5.375% due 12/1/21 1,599,438
4,500,000 AAA Ohio State Air Quality Development Authority, (Ohio Power Co.),
Series C, AMBAC-Insured, 5.150% due 5/1/26 4,269,375
Ohio State Building Authority, State Facilities:
2,725,000 AA- Administration Building Fund Projects, Series A, 5.000% due 10/1/15 2,650,062
5,000,000 AA- Adult Correctional Buildings Funds Projects, Series A, 5.000% due 10/1/18 4,731,250
Ohio State Higher Educational Facilities Revenue:
2,875,000 A2* John Carroll University Project, 5.850% due 4/1/20 2,925,312
University of Dayton Project, AMBAC-Insured:
3,380,000 AAA 5.500% due 12/1/25 3,375,775
11,710,000 AAA 5.500% due 12/1/30 11,622,175
1,500,000 NR Ohio State Solid Waste Revenue, Republic Engineered Steels Inc., 9.000% due
6/1/21 (b) 547,500
2,670,000 AAA Ohio State Water Development Authority Revenue, Water Development,
Fresh Water Series, FSA-Insured, 5.000% due 12/1/16 2,593,237
6,000,000 AA- Olentangy, OH Local School District GO, 5.000% due 12/1/27 5,475,000
5,000,000 AA+ Orange, OH City School District GO, 5.000% due 12/1/23 4,637,500
2,955,000 AAA Parma, OH GO, Series A, FGIC-Insured, 5.000% due 12/1/18 2,836,800
8,000,000 AAA South-Western City School District, OH Franklin & Pickway County, AMBAC-Insured,
4.750% due 12/1/26 7,120,000
1,525,000 AAA University of Akron, OH General Receipts, AMBAC-Insured, 5.250% due 1/1/22 1,477,344
------------------------------------------------------------------------------------------------------------------------------------
213,406,806
------------------------------------------------------------------------------------------------------------------------------------
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 2,137,937
1,000,000 AA- Woods County, OK IDA, Revenue Refunding, (Cargill Inc. Project), 6.250% due
10/1/14 1,058,750
------------------------------------------------------------------------------------------------------------------------------------
3,196,687
------------------------------------------------------------------------------------------------------------------------------------
Oregon -- 0.7%
Oregon State Department of Administrative Services Corp., Series A,
AMBAC-Insured:
7,155,000 AAA 4.875% due 5/1/16 6,886,688
6,505,000 AAA 4.875% due 5/1/17 6,204,144
6,950,000 AA Oregon State GO, Series B, 6.375% due 8/1/24 (c) 7,184,562
------------------------------------------------------------------------------------------------------------------------------------
20,275,394
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania -- 2.3%
1,400,000 AAA Beaver County, PA IDA, PCR, (PA Power Co. Mansfield Project), Series A,
FSA-Insured, 5.450% due 9/15/28 1,363,250
6,250,000 AAA Montgomery County, PA Higher Education & Health Authority Revenue,
Holy Redeemer Health, Series A, 5.250% due 10/1/17 6,093,750
Pennsylvania Economic Development Financing Authority, Resource Recovery Revenue,
(Northhampton Generating Project), Series C:
2,000,000 NR 6.875% due 1/1/11 (b) 1,942,500
12,000,000 NR 6.950% due 1/1/21 (b)(c) 11,625,000
11,650,000 AAA Pennsylvania State Higher Educational Facility Authority Revenue,
Temple University, Series 1, MBIA-Insured, 5.000% due 4/1/29 10,645,188
2,220,000 AAA Philadelphia, PA School District GO, Series B, AMBAC-Insured, 5.375% due 4/1/19 2,203,350
</TABLE>
See Notes to Financial Statements.
20 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Pennsylvania -- 2.3% (continued)
Pittsburgh & Allegheny County, PA Public Auditorium:
$ 11,000,000 AAA Hotel Room, AMBAC-Insured, 5.000% due 2/1/24 $10,202,500
Regional Asset District Sales Tax, AMBAC-Insured:
5,250,000 AAA 5.000% due 2/1/24 4,869,375
8,115,000 AAA 5.000% due 2/1/29 7,404,937
Saint Mary Hospital Authority, Bucks County Catholic Health Initiatives, Series A:
2,680,000 AA 5.375% due 12/1/12 2,656,550
3,000,000 AA 5.000% due 12/1/18 2,722,500
4,550,000 AAA Southeastern, PA Transportation Authority Revenue, Series A, FGIC-Insured,
4.750% due 3/1/24 4,049,500
------------------------------------------------------------------------------------------------------------------------------------
65,778,400
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island -- 0.1%
3,000,000 AAA Rhode Island State Economic Development Corp., Airport Revenue, Series B,
FGIC-Insured, 6.000% due 7/1/28 3,105,000
------------------------------------------------------------------------------------------------------------------------------------
South Carolina -- 1.2%
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 1,674,337
4,000,000 AAA 4.750% due 3/1/24 3,490,000
5,000,000 AAA Piedmont Municipal Power Agency, SC Electric Revenue, Series A, MBIA-Insured,
4.875% due 1/1/17 4,725,000
26,000,000 Aaa* South Carolina Transportation Infrastructure Revenue, Series A, AMBAC-Insured,
5.250% due 10/1/21 25,057,500
------------------------------------------------------------------------------------------------------------------------------------
34,946,837
------------------------------------------------------------------------------------------------------------------------------------
Tennessee -- 1.6%
Chattanooga, TN Health & Educational Housing
Facilities Board, Mortgage Revenue, Red Bank
Health Care, FHA-Insured, (LOC - Citibank N.A.):
15,000 A 11.250% due 8/1/02 16,538
120,000 A 11.250% due 2/1/03 135,000
130,000 A 11.250% due 8/1/03 149,337
135,000 A 11.250% due 2/1/04 157,106
145,000 A 11.250% due 8/1/04 171,825
150,000 A 11.250% due 2/1/05 180,750
180,000 A 11.250% due 8/1/05 220,500
Hardeman County, TN Correctional Facilities Corp.:
1,200,000 NR 6.900% due 8/1/03 1,216,500
11,000,000 NR 7.750% due 8/1/17 11,618,750
10,890,000 AA+ Shelby County, TN GO, Series A, 5.000% due 3/1/20 10,154,925
Tennessee State GO, Series A:
3,810,000 AA+ 5.250% due 3/1/17 3,790,950
4,000,000 AA+ 5.250% due 3/1/18 3,955,000
7,500,000 AA+ 5.250% due 3/1/19 7,387,500
7,500,000 AA+ 5.375% due 3/1/20 7,471,875
------------------------------------------------------------------------------------------------------------------------------------
46,626,556
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
21 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 18.3%
$ 3,300,000 AAA Austin, TX ISD, General Obligation Unlimited, PSFG, 5.125% due 8/1/16 $ 3,221,625
Austin, TX Water, Sewer & Electric Revenue:
180,000 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 (g) 191,475
3,115,000 A* 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 (g) 3,313,581
18,525,000 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 (g) 19,705,969
2,000,000 Aaa* Azle, TX Independent School District GO, PSFG, Series C, 5.000% due 2/15/22 1,852,500
Bell County, TX Health Facilities Development Corp. Revenue, Cook Children's
Medical Center, FSA-Insured:
1,000,000 AAA 5.000% due 12/1/12 988,750
1,000,000 AAA 5.100% due 12/1/13 990,000
500,000 AAA 5.200% due 12/1/16 485,625
2,155,000 AAA 5.250% due 12/1/18 2,090,350
6,570,000 AAA Bexar County, TX Health Facilities Development Corp. Revenue, Baptist Health
System, Series A, MBIA-Insured, 5.250% due 11/15/27 6,175,800
1,000,000 AAA Brazos County, TX Health Facilities Development Corp., Franciscan Services
Corp., Series A, MBIA-Insured, 5.375% due 1/1/17 985,000
5,450,000 AAA Brazos River Authority, TX Authority Revenue, (Houston Industrial Inc. Project),
Series A, 5.125% due 5/1/19 5,204,750
3,000,000 A3* Brazos River Authority, TX PCR, Utilities Electric Co., Series C, 5.550% due
6/1/30 (b) 2,801,250
2,600,000 BBB Brownsville, TX Naval District, (Union Carbide Corp. Project), 5.100% due 1/1/12 2,437,500
2,500,000 AAA Brownsville, TX Utilities System Revenue, Priority Refunding, AMBAC-Insured,
5.250% due 9/1/20 2,409,375
5,520,000 AAA Burleson, TX ISD, PSFG, 6.750% due 8/1/24 5,940,900
2,300,000 AAA Carroll, TX ISD, GO, PSFG, 4.875% due 8/15/27 2,044,125
1,995,000 AA Carrollton, TX GO, 5.000% due 8/15/19 1,847,869
3,000,000 AAA Conroe, TX ISD, PSFG, Lot A, 5.600% due 2/15/21 3,007,500
3,000,000 AAA Corpus Christi, TX General Airport Revenue, Series B, FSA-Insured, 5.375% due
2/15/30 2,883,750
Corpus Christi, TX Utility Systems Revenue, FSA-Insured:
2,700,000 AAA 5.000% due 7/15/17 2,578,500
1,610,000 AAA 5.000% due 7/15/19 1,527,488
2,400,000 AAA Cypress-Fairbanks, TX ISD, GO, PSFG, 4.750% due 2/15/22 2,115,000
Dallas-Fort Worth, TX International Airport Facilities Improvement Corp. Revenue,
American Airlines Inc.:
17,470,000 Baa1* 6.375% due 5/1/35 (b) 17,098,763
17,000,000 Baa1* Series A, 5.950% due 5/1/29 (b) 17,106,250
17,000,000 Baa1* Series B, 6.050% due 5/1/29 (b) 17,148,750
Dallas, TX Civic Center, MBIA-Insured:
2,000,000 AAA 5.000% due 8/15/16 1,935,000
4,700,000 AAA 4.875% due 8/15/23 4,282,875
5,850,000 AAA Edinburg, TX ISD, Public Facilities Corp. Lease Revenue, AMBAC-Insured, 5.000%
due 8/15/19 5,550,188
El Paso County, TX Community College District Revenue, Combination Fee,
AMBAC-Insured, Series B:
1,000,000 AAA 5.125% due 4/1/15 982,500
1,295,000 AAA 5.125% due 4/1/19 1,244,819
2,355,000 AAA El Paso County, TX GO, FGIC-Insured, 5.000% due 2/15/18 2,231,363
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 2,294,250
</TABLE>
See Notes to Financial Statements.
22 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 18.3% (continued)
El Paso County, TX ISD, GO, PSFG:
$ 80,000 AAA 5.900% due 2/15/13 $ 82,100
4,000,000 AAA 4.750% due 2/15/19 3,605,000
2,500,000 AAA Elgin, TX ISD, GO, PSFG, 5.200% due 10/1/18 2,421,875
Fort Worth, TX Higher Education Finance Corp., Higher Education Revenue,
(Texas Christian University Project):
1,610,000 AA- 5.000% due 3/15/15 1,559,688
3,000,000 AA- 5.000% due 3/15/17 2,853,750
2,000,000 AA- 5.000% due 3/15/20 1,865,000
Frisco, TX ISD, GO, PSFG:
1,670,000 Aaa* 5.375% due 8/15/19 1,647,038
2,730,000 Aaa* 5.250% due 8/15/22 2,613,975
1,200,000 BBB Gulf Coast Waste Disposal Authority, PCR, (Carbide Corp. Project), 5.100% due
1/1/12 1,125,000
Gulf Coast Water Authority, Water Systems Contract Revenue, South Project,
Series A, FSA-Insured:
1,055,000 AAA 5.000% due 8/15/16 1,020,713
2,085,000 AAA 5.000% due 8/15/17 2,001,600
2,135,000 AAA 5.000% due 8/15/18 2,017,575
1,600,000 AAA 5.000% due 8/15/22 1,494,000
Harris County, TX Health Facilities Development Corp.:
Children's Hospital Project, Series A:
2,410,000 AA 5.375% due 10/1/16 2,319,625
4,000,000 AA 5.250% due 10/1/29 3,615,000
2,000,000 AAA School Health Care System, Series B, 5.750% due 7/1/27 2,052,500
1,000,000 A1* Harris County, TX Industrial Development Corp., IDR, Cargill Inc., 7.000% due
10/1/15 1,062,500
14,070,000 AAA Harris County, TX Toll Road, Sr. Lien Revenue, FGIC-Insured, 5.375% due 8/15/20 13,841,363
Houston, TX Community College System Revenue, Student Fee:
AMBAC-Insured:
1,315,000 AAA 5.000% due 4/15/15 1,283,769
1,380,000 AAA 5.000% due 4/15/16 1,336,875
1,450,000 AAA 5.000% due 4/15/17 1,393,812
1,520,000 AAA 5.000% due 4/15/18 1,453,500
1,045,000 AAA MBIA-Insured, 5.650% due 4/15/15 1,060,675
5,000,000 AA- Houston, TX GO, Series A, 4.750% due 3/1/17 4,562,500
15,500,000 AAA Houston, TX ISD, GO, PSFG, Series A, 4.750% due 2/15/22 13,659,375
Houston, TX Water & Sewer System Revenue, Jr. Lien, FGIC-Insured:
Series A:
15,195,000 AAA 5.250% due 12/1/22 14,454,244
34,375,000 AAA 5.250% due 12/1/25 32,871,094
17,875,000 AAA Series B, 5.250% due 12/1/30 16,936,562
Lubbock, TX Health Facilities Development Corp. Revenue, St. Joseph Health
Systems:
2,500,000 AA 5.250% due 7/1/13 2,443,750
3,635,000 AA 5.250% due 7/1/14 3,489,600
4,400,000 AA 5.250% due 7/1/15 4,191,000
8,495,000 AA 5.250% due 7/1/16 8,027,775
8,095,000 AA 5.250% due 7/1/17 7,619,419
6,085,000 AA 5.250% due 7/1/18 5,681,869
6,545,000 AA 5.250% due 7/1/19 6,070,488
10,505,000 AA 5.000% due 7/1/23 9,139,350
23,650,000 AAA Matagorda County, TX Navigation District No. 1 Revenue, Reliant Energy Inc.,
Series A, AMBAC-Insured, 5.250% due 6/1/26 22,437,938
</TABLE>
See Notes to Financial Statements.
23 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 18.3% (continued)
$ 3,250,000 AAA Midland County, TX Hospital District Revenue, AMBAC-Insured, 5.375% due 6/1/16 $ 3,221,563
Midland, TX ISD, GO, PSFG:
770,000 Aaa* 4.750% due 2/15/18 697,812
3,305,000 Aaa* 4.750% due 2/15/20 2,945,581
1,750,000 AAA Montgomery County, TX COP, Series A, MBIA-Insured, 5.000% due 3/1/18 1,658,125
3,465,000 AAA Montgomery County, TX GO, Utility District No. 47, Waterworks & Sewer,
AMBAC-Insured, 4.750% due 10/1/21 3,131,494
9,410,000 AAA North Central, TX Health Facility Development Corp. Revenue,
(Zale Lipshy University Project), FSA-Insured, 5.450% due 4/1/15 9,457,050
North Forest, TX ISD, GO, PSFG:
1,935,000 AAA 5.125% due 8/15/14 1,918,069
1,035,000 AAA 5.000% due 8/15/15 1,005,244
1,385,000 AAA 5.000% due 8/15/16 1,333,063
1,000,000 AAA 5.000% due 8/15/18 946,250
2,000,000 AAA North Harris, Montgomery County, Community College District, AMBAC-Insured,
5.000% due 2/15/21 1,837,500
6,130,000 AAA Nueces River Authority, TX Water Supply Facilities, (Corpus Christi Lake
Project), FSA-Insured, 5.500% due 3/1/27 6,022,725
2,425,000 AAA Pflugerville, TX GO, FGIC-Insured, 4.750% due 8/1/20 2,161,281
3,000,000 AAA Port of Port Arthur, TX Naval District, AMBAC-Insured, 4.875% due 3/1/17 2,812,500
Richardson, TX Refunding & Improvement GO:
680,000 AA 5.000% due 2/15/16 652,800
1,465,000 AA 5.000% due 2/15/18 1,380,763
2,400,000 AA San Antonio, TX Electric & Gas Refunding, Series A, 5.000% due 2/1/18 2,241,000
1,015,000 AAA San Patricio, TX Municipal Water District, FSA-Insured, 5.000% due 7/10/17 969,325
Santa Fe, TX ISD, GO, PSFG:
1,190,000 Aaa* 5.250% due 2/15/17 1,166,200
2,270,000 Aaa* 5.125% due 2/15/19 2,170,688
Socorro, TX ISD, GO, PSFG:
3,595,000 AAA 5.300% due 8/15/18 3,532,087
7,460,000 Aaa* 5.125% due 2/15/27 6,937,800
4,000,000 A+ Southwest Higher Education Authority, Southern Methodist University,
5.000% due 10/1/18 3,690,000
1,610,000 AAA Springtown, TX ISD, GO, PSFG, 5.000% due 2/15/14 1,577,800
1,735,000 AAA Stephenville, TX ISD, GO, PSFG, 5.000% due 2/15/17 1,654,756
1,000,000 AAA Texas State Department of Housing & Community Affairs, Multi-Family Revenue,
(Volente Project), FNMA-Collateralized, 5.550% due 1/1/18 (b) 987,500
9,035,000 AA Texas State GO, Veterans Housing Assistance, Series B-4, 6.700% due 12/1/24 9,498,044
2,300,000 AAA Texas State Public Finance Authority, Building Revenue, AMBAC-Insured, 5.000%
due 8/1/14 2,262,625
33,300,000 AAA Texas State Turnpike Authority, Dallas North Tollway Revenue, George Bush
Turnpike, FGIC-Insured, 5.250% due 1/1/23 (c) 32,009,625
Texas State Water Development GO, Series D:
10,000,000 AAA 5.000% due 8/1/16 9,612,500
6,000,000 AAA 5.000% due 8/1/19 5,640,000
Texas Water Development Board Revenue, State Revolving Fund, Sr. Lien, Series B:
2,500,000 AAA 5.000% due 7/15/15 2,434,375
15,500,000 AAA 5.125% due 7/15/18 14,938,125
35,040,000 AAA 5.000% due 7/15/19 (c) 33,069,000
</TABLE>
See Notes to Financial Statements.
24 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Texas -- 18.3% (continued)
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 $ 1,351,687
1,000,000 AAA Series B, FSA-Insured, 5.500% due 11/1/17 1,001,250
3,000,000 AAA Series C, FSA-Insured, 5.500% due 11/1/17 3,003,750
Victoria, TX ISD, GO, PSFG:
1,000,000 AAA 5.000% due 2/15/15 972,500
1,370,000 AAA 5.000% due 2/15/16 1,320,337
2,500,000 AAA Victoria, TX Utility System Revenue, Series A, MBIA-Insured, 5.000% due 12/1/21 2,340,625
1,520,000 AAA West TX, Municipal Power Agency Revenue, MBIA-Insured, 5.000% due 2/15/17 1,453,500
------------------------------------------------------------------------------------------------------------------------------------
537,002,256
------------------------------------------------------------------------------------------------------------------------------------
Virgin Islands -- 0.5%
Virgin Islands Public Finance Authority Revenue, Sr. Lien, Series A:
1,000,000 BBB- 5.300% due 10/1/11 990,000
10,000,000 BBB- 6.375% due 10/1/19 10,337,500
4,000,000 BBB- 5.500% due 10/1/22 3,745,000
------------------------------------------------------------------------------------------------------------------------------------
15,072,500
------------------------------------------------------------------------------------------------------------------------------------
Virginia -- 0.9%
Arlington County, VA IDA, Multi-Family Housing Revenue:
Sr. Lien-Arlington Housing:
705,000 A 6.300% due 7/1/16 736,725
750,000 A 6.350% due 7/1/20 782,813
1,000,000 A 6.375% due 7/1/25 1,036,250
1,000,000 A Woodbury Park Apartments, 5.350% due 7/1/18 972,500
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 1,492,688
2,160,000 AA+ Norfolk, VA Redevelopment & Housing Authority, Educational Facilities Revenue,
Tidewater Community College Campus, 5.875% due 11/1/15 2,259,900
1,250,000 A+ Virginia College Building Authority, Educational Facilities Revenue, Hampton
University Project, 5.750% due 4/1/14 1,287,500
Virginia State Housing Development Authority, Commonwealth Mortgage Revenue:
3,300,000 AA+ Series A, Subseries A-1, Remarketed 9/12/95, 6.400% due 7/1/17 3,419,625
Series D:
735,000 AA+ Subseries D-1, Remarketed 9/12/95, 6.400% due 7/1/17 765,319
1,315,000 AA+ Subseries D-3, Remarketed 5/30/96, 5.800% due 7/1/10 1,365,956
Subseries D-4, Remarketed 7/16/96:
1,330,000 AA+ 6.100% due 1/1/11 1,393,175
1,365,000 AA+ 6.100% due 7/1/11 1,428,131
1,400,000 AA+ 6.125% due 1/1/12 1,464,750
1,440,000 AA+ 6.125% due 7/1/12 1,504,800
1,485,000 AA+ 6.150% due 1/1/13 1,549,969
1,525,000 AA+ 6.150% due 7/1/13 1,591,719
1,565,000 AA+ 6.200% due 1/1/14 1,631,512
1,615,000 AA+ 6.200% due 7/1/14 1,683,637
------------------------------------------------------------------------------------------------------------------------------------
26,366,969
------------------------------------------------------------------------------------------------------------------------------------
Washington -- 2.1%
Aberdeen, WA Special Revenue, (Stafford Creek Correctional Center Project),
AMBAC-Insured:
1,165,000 AAA 4.750% due 11/1/14 1,111,119
1,220,000 AAA 4.750% due 11/1/15 1,148,325
</TABLE>
See Notes to Financial Statements.
25 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================================================
<S> <C> <C> <C>
Washington -- 2.1% (continued)
$ 3,980,000 Aaa* Washington State Housing Finance Commission, Single Family Program, Series 3N,
FNMA/GNMA/FHLMC-Collateralized, 5.250% due 12/1/17 $ 3,890,450
Washington State Public Power Supply System, (Nuclear Project No. 3), Series B:
24,000,000 Aa1* 5.500% due 7/1/17 (c) 23,760,000
33,470,000 Aa1* 5.500% due 7/1/18 (c) 32,967,950
------------------------------------------------------------------------------------------------------------------------------------
62,877,844
------------------------------------------------------------------------------------------------------------------------------------
West Virginia -- 0.3%
1,000,000 BBB Kanawha County, WV PCR, (Union Carbide Corp. Project), 5.100% due 1/1/12 937,500
500,000 A+ Ohio County, WV Board of Education GO, 5.125% due 6/1/18 472,500
7,540,000 BBB South Charleston, WV PCR, (Union Carbide Corp. Project), 5.100% due 1/1/12 7,068,750
------------------------------------------------------------------------------------------------------------------------------------
8,478,750
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin -- 1.3%
1,225,000 AAA Merrill, WI Area Common Public School District, FSA-Insured, 5.000% due 4/1/18 1,165,281
1,325,000 Aaa* Winneconne, WI Community School District GO, FGIC-Insured, 6.750% due 4/1/16 1,470,750
2,000,000 AA Wisconsin Housing & EDA, Home Ownership Revenue, Series A, 6.450% due 3/1/17 2,080,000
Wisconsin State Health & Educational Facilities Authority Revenue:
33,350,000 AAA Aurora Health Care Inc., MBIA-Insured, 5.250% due 8/15/17 32,474,563
1,000,000 A Kenosha Hospital & Medical Center Project, 5.700% due 5/15/20 928,750
1,000,000 AAA Medical College WI Project, MBIA-Insured, 5.400% due 12/1/16 1,003,750
------------------------------------------------------------------------------------------------------------------------------------
39,123,094
------------------------------------------------------------------------------------------------------------------------------------
Wyoming -- 0.2%
1,000,000 AAA Green River Sweetwater County, WY Joint Powers Board Revenue, Series A,
FSA-Insured, 5.100% due 3/1/24 930,000
200,000 A-1+ Uinta County, WY PCR, (Amoco Project), 4.300% due 7/1/26 (d) 200,000
Wyoming Community Development Authority Housing Revenue:
1,920,000 AA Series 1, 5.450% due 12/1/29 1,852,800
2,000,000 AA Series 4, 5.900% due 12/1/14 2,067,500
------------------------------------------------------------------------------------------------------------------------------------
5,050,300
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $2,934,214,773**) $2,936,312,815
====================================================================================================================================
</TABLE>
(a) All ratings are by Standard & Poor's Ratings Service, except for those
which are identified by an asterisk (*), are rated by Moody's Investors
Service, Inc.
(b) Income from this issue is considered a preference item for purposes of
calculating the alternative minimum tax.
(c) All or part of this security has been segregated by Custodian for open
purchase commitments and/or futures contract commitments.
(d) Variable rate obligation payable at par on demand at any time on no more
than seven days notice.
(e) Security is in default.
(f) 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, normally to qualified institutional buyers.
(g) Pre-Refunded bonds escrowed by U.S. government securities and bonds
escrowed to maturity by 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 27 and 28 for definitions of ratings and certain security
descriptions.
See Notes to Financial Statements.
26 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Bond Ratings (unaudited)
--------------------------------------------------------------------------------
The definitions of the applicable rating symbols are set forth below:
Standard & Poor's Ratings Service ("Standard & Poor's") -- Ratings 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 IBCA, 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.
27 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-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
28 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statement of Assets and Liabilities (unaudited) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments, at value (Cost -- $2,934,214,773) $ 2,936,312,815
Cash 200,089
Receivable for Fund shares sold 760,839
Interest receivable 36,483,058
--------------------------------------------------------------------------------------------------------
Total Assets 2,973,756,801
--------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 57,597,975
Investment advisory fees payable 788,041
Administration fees payable 420,366
Distribution fees payable 329,560
Payable for Fund shares purchased 239,608
Accrued expenses 305,414
--------------------------------------------------------------------------------------------------------
Total Liabilities 59,680,964
--------------------------------------------------------------------------------------------------------
Total Net Assets $ 2,914,075,837
========================================================================================================
NET ASSETS:
Par value of capital shares $ 1,934,190
Capital paid in excess of par value 3,056,181,600
Undistributed net investment income 2,740,785
Accumulated net realized loss from security transactions and futures contracts (148,878,780)
Net unrealized appreciation of investments 2,098,042
--------------------------------------------------------------------------------------------------------
Total Net Assets $ 2,914,075,837
========================================================================================================
Shares Outstanding:
Class A 127,505,166
---------------------------------------------------------------------------------------------------
Class B 54,772,036
---------------------------------------------------------------------------------------------------
Class L 9,390,035
---------------------------------------------------------------------------------------------------
Class Y 1,751,752
---------------------------------------------------------------------------------------------------
Net Asset Value:
Class A (and redemption price) $15.07
---------------------------------------------------------------------------------------------------
Class B * $15.07
---------------------------------------------------------------------------------------------------
Class L ** $15.06
---------------------------------------------------------------------------------------------------
Class Y (and redemption price) $15.08
---------------------------------------------------------------------------------------------------
Maximum Public Offering Price Per Share:
Class A (net asset value plus 4.17% of net asset value per share) $15.70
---------------------------------------------------------------------------------------------------
Class L (net asset value plus 1.01% of net asset value per share) $15.21
========================================================================================================
</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.
29 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statement of Operations (unaudited) For the Six Months Ended August 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 87,019,503
--------------------------------------------------------------------------------
EXPENSES:
Distribution fees (Note 3) 4,650,189
Investment advisory fees (Note 3) 4,541,461
Administration fees (Note 3) 2,540,402
Shareholder and system servicing fees 386,344
Shareholder communications 88,671
Custody 61,392
Audit and legal 45,873
Pricing service fees 32,767
Directors' fees 29,238
Registration fees 18,400
Other 25,709
--------------------------------------------------------------------------------
Total Expenses 12,420,446
--------------------------------------------------------------------------------
Net Investment Income 74,599,057
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FUTURES CONTRACTS (NOTES 4 AND 5):
Realized Loss From:
Security transactions (excluding short-term securities) (23,849,159)
Futures contracts (1,336,656)
--------------------------------------------------------------------------------
Net Realized Loss (25,185,815)
--------------------------------------------------------------------------------
Decrease in Net Unrealized Depreciation (Note 7) 203,440,857
--------------------------------------------------------------------------------
Net Gain on Investments and Futures Contracts 178,255,042
--------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 252,854,099
================================================================================
See Notes to Financial Statements.
30 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
For the Six Months Ended August 31, 2000 (unaudited)
and the Year Ended February 29, 2000
<TABLE>
<CAPTION>
August 31 February 29
=============================================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income $ 74,599,057 $ 165,167,420
Net realized loss (25,185,815) (80,336,232)
(Increase) decrease in net unrealized depreciation 203,440,857 (337,916,790)
-------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations 252,854,099 (253,085,602)
-------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTE 2):
Net investment income (72,202,418) (159,089,656)
-------------------------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (72,202,418) (159,089,656)
-------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 6):
Net proceeds from sale of shares 83,086,670 421,071,394
Net asset value of shares issued in connection with the transfer
of the Greenwich Street Municipal Fund's net assets (Note 7) 204,536,563 --
Net asset value of shares issued for reinvestment of dividends 41,379,073 93,663,507
Cost of shares reacquired (403,146,023) (1,172,071,674)
-------------------------------------------------------------------------------------------------------------
Decrease in Net Assets
From Fund Share Transactions (74,143,717) (657,336,773)
-------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 106,507,964 (1,069,512,031)
NET ASSETS:
Beginning of period 2,807,567,873 3,877,079,904
-------------------------------------------------------------------------------------------------------------
End of period* $ 2,914,075,837 $ 2,807,567,873
=============================================================================================================
* Includes undistributed net investment income of: $ 2,740,785 $ 283,872
-------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
31 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
--------------------------------------------------------------------------------
1. Significant Accounting Policies
Smith Barney Managed Municipals Fund Inc. ("Fund"), a Maryland corporation, is
registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company.
The significant accounting policies consistently followed by the Fund are: (a)
security transactions are accounted for on trade date; (b) securities are valued
at the mean between bid and asked prices provided by an independent pricing
service that are based on transactions in municipal obligations, quotations from
municipal bond dealers, market transactions in comparable securities and various
relationships between securities; (c) securities maturing within 60 days are
valued at cost plus accreted discount, or minus amortized premium, which
approximates value; (d) gains or losses on the sale of securities are calculated
by using the specific identification method; (e) interest income, adjusted for
amortization of premium and accretion of original issue discount, is recorded on
an accrual basis; market discount is recognized upon the disposition of the
security; (f) dividends and distributions to shareholders are recorded on the
ex-dividend date; (g) direct expenses are charged to each class; investment
advisory fees and general Fund expenses are allocated on the basis of relative
net assets of each class; (h) the character of income and gains to be
distributed are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. At February 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"), 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
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.
Citi Fiduciary Trust Company ("CFTC"), another subsidiary of Citigroup, acts as
the Fund's transfer agent and PFPC Global Fund Services ("PFPC") acts as the
sub-transfer agent. CFTC receives account fees and asset-based fees that vary
according to the account size and type of
32 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
account. PFPC is responsible for shareholder recordkeeping and financial
processing for all shareholder accounts and is paid by CFTC. For the six months
ended August 31, 2000, the Fund paid transfer agent fees of $374,923 to CFTC.
Effective June 5, 2000, Salomon Smith Barney Inc. ("SSB"), another subsidiary of
SSBH, became the Fund's distributor replacing CFBDS, Inc. ("CFBDS"). In
addition, SSB acts as the primary broker for the Fund's portfolio agency
transactions. Certain other broker-dealers, continue to sell Fund shares to the
public as members of the selling group.
There are maximum initial sales charges of 4.00% and 1.00% for Class A and L
shares, respectively. There is also a contingent deferred sales charge ("CDSC")
of 4.50% on Class B shares, which applies if redemption occurs within one year
from purchase. This CDSC declines by 0.50% the first year after purchase and
thereafter by 1.00% per year until no CDSC is incurred. Class L shares are being
sold at net asset value plus a maximum sales charge of 1.00%. Class L shares
also have a 1.00% CDSC, which applies if redemption occurs within the first year
of purchase. In addition, Class A shares also have a 1.00% CDSC, which applies
if redemption occurs within the first year of purchase. This CDSC only applies
to those purchases of Class A shares, which, when combined with current holdings
of Class A shares, equal or exceed $500,000 in the aggregate. These purchases do
not incur an initial sales charge.
For the six months ended August 31, 2000, CFBDS and SSB received sales charges
of approximately $355,000 and $57,000 on sales of the Fund's Class A and L
shares, respectively. In addition, CDSCs paid to SSB were approximately:
Class A Class B Class L
================================================================================
CDSCs $6,000 $757,000 $12,000
================================================================================
Pursuant to a Distribution Plan, the Fund pays a service fee with respect to its
Class A, B and L shares, calculated at an annual rate of 0.15% of the average
daily net assets for each respective class. In addition, the Fund pays a
distribution fee with respect to its Class B and L shares calculated at the
annual rate of 0.50% and 0.55%, of the average daily net assets of each class,
respectively.
For the six months ended August 31, 2000, total Distribution Plan fees incurred
were:
Class A Class B Class L
================================================================================
Distribution Plan Fees $1,438,709 $2,716,642 $494,838
================================================================================
All officers and one Director of the Fund are employees of SSB.
4. Investments
During the six months ended August 31, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
================================================================================
Purchases $658,842,440
--------------------------------------------------------------------------------
Sales 968,526,110
================================================================================
At August 31, 2000, the aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
================================================================================
Gross unrealized appreciation $ 96,003,245
Gross unrealized depreciation (93,905,203)
--------------------------------------------------------------------------------
Net unrealized appreciation $ 2,098,042
================================================================================
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.
33 Smith Barney Managed Municipals Fund. Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
The Fund enters into such contracts to hedge a portion of its portfolio. The
Fund bears the market risk that arises from changes in the value of the
financial instruments and securities indices (futures contracts).
At August 31, 2000, the Fund had no open futures contracts.
6. Capital Shares
At August 31, 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.
At August 31, 2000, total paid-in capital amounted to the following for each
class:
<TABLE>
Class A Class B Class L Class Y
============================================================================================================
<S> <C> <C> <C> <C>
Total Paid-in Capital $1,970,113,811 $905,851,864 $152,759,878 $29,390,237
============================================================================================================
</TABLE>
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
August 31, 2000 February 29, 2000
----------------------------- ----------------------------
Shares Amount Shares Amount
============================================================================================================
<S> <C> <C> <C> <C>
Class A
Shares sold 3,984,640 $ 58,128,180 16,637,405 $ 246,874,360
Net asset value of shares issued in
connection with the transfer of the
Greenwich Street Municipal Fund's
net assets (Note 7) 14,397,344 204,536,563 -- --
Shares issued on reinvestment 1,918,342 27,971,950 4,151,563 61,664,669
Shares reacquired (18,337,936) (265,683,890) (50,682,006) (746,373,915)
------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 1,962,390 $ 24,952,803 (29,893,038) $(437,834,886)
============================================================================================================
Class B
Shares sold 1,165,550 $ 16,995,810 6,121,439 $ 91,447,522
Shares issued on reinvestment 758,132 11,053,104 1,789,489 26,586,027
Shares reacquired (7,202,258) (104,527,900) (23,604,689) (347,191,329)
------------------------------------------------------------------------------------------------------------
Net Decrease (5,278,576) $ (76,478,986) (15,693,761) $(229,157,780)
============================================================================================================
Class L
Shares sold 476,925 $ 6,962,680 2,545,618 $ 38,249,512
Shares issued on reinvestment 149,365 2,176,534 343,386 5,093,638
Shares reacquired (1,239,669) (18,034,233) (4,420,358) (64,835,839)
------------------------------------------------------------------------------------------------------------
Net Decrease (613,379) $ (8,895,019) (1,531,354) $ (21,492,689)
============================================================================================================
Class Y
Shares sold 68,540 $ 1,000,000 2,880,950 $ 44,500,000
Shares issued on reinvestment 12,153 177,485 21,574 319,173
Shares reacquired (1,016,747) (14,900,000) (943,548) (13,670,591)
------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) (936,054) $ (13,722,515) 1,958,976 $ 31,148,582
============================================================================================================
</TABLE>
34 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Note to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
7. Transfer of Net Assets
On March 6, 2000, the Fund acquired the assets and certain liabilities of the
Greenwich Street Municipals Fund pursuant to a plan of reorganization approved
by Greenwich Street Municipals Fund shareholders on February 24, 2000. Total
Class A shares issued by the Fund, the total net assets of the Greenwich Street
Municipals Fund and total net assets of the Fund on the date of the transfer
were as follows:
<TABLE>
<CAPTION>
Class A Shares Issued Total Net Assets of the Total Net Assets
Acquired Portfolio by the Fund Greenwich Street Municipals Fund of the Fund
====================================================================================================================================
<S> <C> <C> <C>
Greenwich Street Municipals Fund 14,397,344 $204,536,563 $2,815,126,715
====================================================================================================================================
</TABLE>
The total net assets of the Greenwich Street Municipals Fund before acquisition
included unrealized depreciation of $19,445,694, accumulated net realized loss
of $13,202,515 and undistributed net investment income of $60,274. Total net
assets of the Fund immediately after the transfer were $3,019,663,278. The
transaction was structured to qualify as a tax-free reorganization under the
Internal Revenue Code of 1986, as amended.
8. 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
================================================================================
35 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended February 28, except where noted:
<TABLE>
<CAPTION>
Class A Shares 2000/(1)(2)/ 2000/(2)(3)/ 1999/(2)/ 1998 1997 1996/(4)/
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.16 $15.93 $16.19 $15.61 $16.20 $15.47
--------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.39 0.75 0.74 0.79 0.88 0.91
Net realized and unrealized gain (loss) 0.90 (1.79) (0.10) 1.06 (0.18) 0.80
--------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 1.29 (1.04) 0.64 1.85 0.70 1.71
--------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.38) (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 (0.38) (0.73) (0.90) (1.27) (1.29) (0.98)
--------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $15.07 $14.16 $15.93 $16.19 $15.61 $16.20
--------------------------------------------------------------------------------------------------------------------------------
Total Return 9.22%++ (6.62)% 4.07% 12.30% 4.51% 11.34%
--------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $1,921 $1,778 $2,476 $2,367 $2,000 $1,892
--------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.68%+ 0.68% 0.67% 0.68% 0.68% 0.70%
Net investment income 5.29+ 5.02 4.63 4.98 5.60 5.47
--------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 23% 55% 45% 110% 103% 80%
================================================================================================================================
</TABLE>
(1) For the six months ended August 31, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the year ended February 29, 2000.
(4) For the year ended February 29, 1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
36 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended February 28, except where noted:
<TABLE>
<CAPTION>
Class B Shares 2000/(1)(2)/ 2000/(2)(3)/ 1999/(2)/ 1998 1997 1996/(4)/
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.16 $15.92 $16.19 $15.60 $16.20 $15.47
-------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.35 0.68 0.66 0.72 0.79 0.82
Net realized and unrealized gain (loss) 0.90 (1.79) (0.11) 1.06 (0.18) 0.81
-------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 1.25 (1.11) 0.55 1.78 0.61 1.63
-------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.34) (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 (0.34) (0.65) (0.82) (1.19) (1.21) (0.90)
-------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $15.07 $14.16 $15.92 $16.19 $15.60 $16.20
-------------------------------------------------------------------------------------------------------------------------
Total Return 8.91%++ (7.08)% 3.48% 11.81% 3.92% 10.78%
-------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (millions) $825 $850 $1,206 $1,125 $905 $730
-------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.20%+ 1.21% 1.19% 1.20% 1.19% 1.22%
Net investment income 4.76+ 4.50 4.11 4.46 5.09 4.94
-------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 23% 55% 45% 110% 103% 80%
=========================================================================================================================
</TABLE>
(1) For the six months ended August 31, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the year ended February 29, 2000.
(4) For the year ended February 29, 1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
37 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended February 28, except where noted:
<TABLE>
<CAPTION>
Class L Shares 2000/(1)(2)/ 2000/(2)(3)/ 1999/(2)(4)/ 1998/(2)/ 1997 1996/(5)/
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.15 $15.92 $16.18 $15.60 $16.20 $15.47
------------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.34 0.67 0.65 0.70 0.79 0.82
Net realized and unrealized gain (loss) 0.90 (1.80) (0.10) 1.06 (0.18) 0.81
------------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 1.24 (1.13) 0.55 1.76 0.61 1.63
------------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.33) (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 (0.33) (0.64) (0.81) (1.18) (1.21) (0.90)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $15.06 $14.15 $15.92 $16.18 $15.60 $16.20
------------------------------------------------------------------------------------------------------------------------------------
Total Return 8.89%++ (7.19)% 3.49% 11.69% 3.88% 10.76%
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $141,426 $141,570 $183,578 $126,766 $72,597 $33,411
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.24%+ 1.25% 1.24% 1.25% 1.24% 1.27%
Net investment income 4.72+ 4.46 4.06 4.38 5.04 4.86
------------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 23% 55% 45% 110% 103% 80%
====================================================================================================================================
</TABLE>
(1) For the six months ended August 31, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the year ended February 29, 2000.
(4) On June 12, 1998, Class C shares were renamed Class L shares.
(5) For the year ended February 29, 1996.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
38 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended February 28, except where noted:
<TABLE>
<CAPTION>
Class Y Shares 2000/(1)(2)/ 2000/(2)(3)/ 1999/(2)/ 1998/(2)/ 1997/(2)/ 1996(4)
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.18 $15.95 $16.19 $15.60 $16.20 $15.63
----------------------------------------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income 0.40 0.79 0.73 0.82 0.90 0.85
Net realized and unrealized gain (loss) 0.89 (1.80) (0.04) 1.07 (0.18) 0.65
----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 1.29 (1.01) 0.69 1.89 0.72 1.50
----------------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.39) (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 (0.39) (0.76) (0.93) (1.30) (1.32) (0.93)
----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $15.08 $14.18 $15.95 $16.19 $15.60 $16.20
----------------------------------------------------------------------------------------------------------------------------------
Total Return 9.24%++ (6.44)% 4.39% 12.56% 4.59% 9.84%++
----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $26,424 $38,110 $11,626 $11,893 $5,350 $12,314
----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 0.50%+ 0.51% 0.50% 0.52% 0.52% 0.57%+
Net investment income 5.47+ 5.27 4.84 5.06 5.76 5.62+
----------------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 23% 55% 45% 110% 103% 80%
==================================================================================================================================
</TABLE>
(1) For the six months ended August 31, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) For the year ended February 29, 2000.
(4) 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.
39 Smith Barney Managed Municipals Fund Inc. | 2000 Semi-Annual Report to
Shareholders
<PAGE>
(This page intentionally left blank.)
<PAGE>
SMITH BARNEY
MANAGED MUNICIPALS FUND INC.
DIRECTORS INVESTMENT ADVISER
AND ADMINISTRATOR
Herbert Barg
Alfred J. Bianchetti SSB Citi Fund Management LLC
Martin Brody
Dwight B. Crane
Burt N. Dorsett DISTRIBUTOR
Elliot S. Jaffe
Stephen E. Kaufman Salomon Smith Barney Inc.
Joseph J. McCann
Heath B. McLendon, Chairman
Cornelius C. Rose Jr. CUSTODIAN
James J. Crisona, Emeritus PFPC Trust Company
OFFICERS TRANSFER AGENT
Heath B. McLendon
President and Citi Fiduciary Trust Company
Chief Executive Officer 125 Broad Street, 11th Floor
New York, New York 10004
Lewis E. Daidone
Senior Vice President SUB-TRANSFER AGENT
and Treasurer
PFPC Global Fund Services
P.O. Box 9699
Joseph P. Deane Providence, Rhode Island
Vice President and 02940-9699
Investment Officer
David Fare
Investment Officer
Paul A. Brook
Controller
Christina T. Sydor
Secretary
<PAGE>
--------------------------------------------------------------------------------
Smith Barney Managed Municipals Fund Inc.
--------------------------------------------------------------------------------
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 November 30, 2000, this report must be
accompanied by performance information for the most recently completed calendar
quarter.
SMITH BARNEY MANAGED MUNICIPALS FUND INC.
Smith Barney Mutual Funds
388 Greenwich Street, MF-2
New York, New York 10013
For complete information on any of the Smith Barney Mutual Funds, including
management fees and expenses, call or write your financial professional for a
free prospectus. Read it carefully before you invest or send money.
www.smithbarney.com/mutualfunds
[LOGO OF SALOMON SMITH BARNEY]
Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.
FD0435 10/00
