<PAGE>
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SMITH BARNEY
NEW JERSEY MUNICIPALS FUND INC.
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CLASSIC SERIES | SEMI-ANNUAL REPORT | SEPTEMBER 30, 2000
[LOGO OF SMITH BARNEY MUTUAL FUNDS]
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NOT FDIC INSURED . NOT BANK GUARANTEED . MAY LOSE VALUE
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<PAGE>
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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. At SSB Citi Fund
Management LLC ("SSB Citi"), we 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 $395.5 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.
For those of you who are new shareholders, I would like to extend a warm welcome
to you on behalf of everyone here at SSB Citi. The Smith Barney New Jersey
Municipals Fund seeks to maximize current interest income/2/ that is excluded
from gross income for both regular federal income and New Jersey personal income
tax purposes to the extent consistent with prudent investment management and the
preservation of capital. Experienced portfolio 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 a shrinking market supply,
state and local government budget surpluses, slowing global economic growth and
their expectations that the Federal Reserve Board will not raise interest rates
over the short term.
[PHOTO OF HEATH B. MCLENDON]
HEATH B.
MCLENDON
Chairman
-----------
1 As of September 30, 2000. This figure represents retail, institutional, money
and separate accounts.
2 Please note a portion of the income from the Fund may be subject to the
Alternative Minimum Tax ("AMT").
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Smith Barney New Jersey Municipals Fund Inc. 1
<PAGE>
When you invest with SSB Citi, you can do so with the confidence that your
interests come first, your investment success is paramount and 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
October 11, 2000
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2 2000 Semi-Annual Report to Shareholders
<PAGE>
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Shareholder Letter
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Dear Shareholder:
We are pleased to provide the semi-annual report for the Smith Barney New Jersey
Municipals Fund Inc. ("Fund") for the period ended September 30, 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 13 through 19 for a list and percentage
breakdown of the Fund's holdings. Also, please note any discussion of the Fund's
holdings is as of September 30, 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 September 30, 2000, the Fund's Class A shares, without
and with sales charges, returned 3.14% and a negative 0.99%, respectively. In
comparison, the Lehman Brothers Municipal Bond Index ("Lehman Index")/1/
returned 3.97% for the same period.
Market and Economic Overview
Municipal bonds have been a very simple story throughout 2000. They started at
relatively inexpensive valuations and then rallied. Stable interest rates and a
robust economy with few excesses are painting a bullish picture for bonds in
general, while declining new issue supply may be further bolstering the
municipal bond market. 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 comfort to
many investors regarding the credit worthiness of their securities.
With most state and local governments enjoying balanced budgets or surpluses, we
think borrowing is likely to total no more than $150 billion to $180 billion
over the next two years. Many municipal bonds are now yielding almost 95% of
comparable-maturity U.S. Treasuries, but we expect that percentage to return to
historical average spreads, in the range of 80% to 85%.
[PHOTO OF JOSEPH P. DEANE]
JOSEPH P.
DEANE
Vice President and
Investment Officer
-----------
1 The Lehman Index is a broad measure of the municipal bond market with
maturities of at least one year. Please note an investor cannot invest
directly in an index.
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Smith Barney New Jersey Municipals Fund Inc. 3
<PAGE>
From our point of view, recent months have been a good period for the municipal
market. As the stock market endured its correction in March and April 2000,
municipal bonds forged ahead slowly but relentlessly. In our view, the municipal
markets are in a state of flux that may lead to greater opportunities. The
federal government conducted a buy-back of long-term government bonds early in
2000, which drove down yields.
Under Federal Reserve Board ("Fed") Chairman Alan Greenspan, the Fed has raised
interest rates incrementally several times in order to cool a robust U.S.
economy. We do not see the Fed raising rates again for the next few months, at
least until after Election Day. In an attempt to be apolitical, the Fed's Board
of Governors tends to shy away from such dramatic moves in an election year, to
avoid charges of influencing an election.
In our view, the Fed is no longer "telegraphing" its moves and our
interpretation is that fear of Fed tightening is more effective than an actual
raise. Why? A rate increase's effect on the larger economy is less profound in
that the bond markets are better equipped to anticipate and react to Fed
tightenings than they were ten years ago. Back then, both municipal governments
and corporations were saddled with a significant amount of floating-rate debt,
heightening the effect of Fed movements. Today there is far less floating-rate
debt and, as previously noted more state governments are running surpluses. New
issuance in the municipal market itself has shrunk from over $300 billion two
years ago to around $150 billion now. Yet Greenspan and the Fed still hold
powerful sway over market psychology and their moves are continuously tracked
the world over.
We are carefully monitoring a number of factors that may influence the municipal
market. We are looking to see who wins not just the Presidential, but also
Congressional elections, since the House of Representatives is where all
spending bills originate. We also closely watch the price of oil, but disagree
with those who see it as a harbinger of doom for the economy.
The market had little reaction to the Fed's decision to keep interest rates
steady or to the Fed's view that risk in the economy is weighted toward
inflation. The bond market is still pricing in another possible Fed tightening
by the end of the year. We expect policy to remain steady throughout 2000, and
we would not be surprised if the Fed were to shift to a more neutral position
before the end of the year. A critical point, which is often overlooked by many
investors, is that Fed monetary policy adjustments take time to be absorbed into
the general economy. The Fed has tightened 175 basis points/2/ from the bottom,
and the recent rallies we have seen are a result of changes enacted six to
twelve months ago.
-----------
2 A basis point is 0.01% or one one-hundredth of a percent.
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4 2000 Semi-Annual Report to Shareholders
<PAGE>
Municipal bond prices, in general, have been very firm lately: since late May, a
triple 'A' 10 year municipal index has experienced price improvement (a yield
decline) of 50 basis points or more. Demand in the municipal market has been
steady to increasing as recent volatility in the stock market will undoubtedly
lead some investors to rethink their portfolio mix, and to establish or augment
bond positions in their portfolios.
New Jersey Economic Highlights/3/
New Jersey remains one of the wealthiest U.S. states and it is ranked second
with respect to personal income per capita. The Garden State has a broad and
diversified economic base; the state no longer relies on manufacturing, but now
depends more heavily on services and trade.
New Jersey's debt structure has changed, with general obligation debt a
shrinking part of the total. Heavy volume in new transportation issues is
directly attributable to the change in the debt structure, as transportation
projects supported by federal and state appropriations have been major factors
in transportation improvements. Demographic changes such as an older student
population and aging schools have also made it easier for New Jersey officials
to obtain approval for more education bond issuance.
Looking ahead, we think the economic news for New Jersey remains favorable. The
best indicator of the strength of the Garden State's economy is the solid job
growth that we have seen in the past few years, as well as the tightening of the
labor market. Employment in 1999 was up 1.7% and the unemployment rate at 4.6%
was only slightly higher than that of the nation.
Investment Strategy
The Fund seeks to provide New Jersey investors with as high a level of income
exempt/4/ from federal and New Jersey personal income taxes as is consistent
with prudent investment management and the preservation of capital.
In our view, the municipal bond market has provided us with excellent
opportunities during the reporting period. Since interest rates have gone up, we
have added discounted high-quality bonds at the long end of the yield curve,/5/
essentially investing our excess cash at higher yields. We are buying long
maturities in double-A or triple-A names, with some discount bonds for potential
upside.
-----------
3 Sources: Fitch IBCA, Inc., Duff & Phelps.
4 Please note a portion of the income from the Fund may be subject to the
Alternative Minimum Tax ("AMT").
5 The yield curve is the graphical depiction of the relationship between the
yield on bonds of the same credit quality but different maturities.
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Smith Barney New Jersey Municipals Fund Inc. 5
<PAGE>
The Fund's investment strategy going forward will be four-fold:
. We see value at the long end of the yield curve and are selectively
lengthening maturities in the portfolio to take advantage of the
inexpensive valuations of municipal bonds relative to U.S. Treasuries;
. We have added to call protection by buying bonds with longer call
protection than those we are selling;
. We are focusing on investing in high-grade issues; and
. We are investing in discount paper with upside potential, as this is where
we believe we can obtain the best value.
Our goal is to sell off some of our shorter-term bonds that were purchased in
the beginning of 1999 when we believed the market to be more vulnerable and
wanted to assume a defensive posture. We see the best opportunity for reward
right now at the long end of the yield curve where we can seek to lock in
today's higher rates.
Market Outlook
With the end of the national conventions, we have gained a much clearer insight
into the political environment confronting the municipal bond market. In
general, we think it is relatively benign compared with prior years. While the
outcome is important to specific sectors of the municipal market, we think the
overall strength of municipal bonds may continue.
We also believe that demand for municipals should remain strong based on
economic issues related to the political campaign. One of the main topics is how
the candidates would spend the enormous Federal surplus that has accumulated.
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
10 years is projected to be about $4.6 trillion, part of which, both candidates
concede, will be devoted to debt reduction. Under either a Democratic or
Republican administration, the elimination of the U.S. Treasury market over the
next decade may continue, putting sovereign debt of all types, including
municipals, in short supply.
In our judgment, a number of factors bode well for the municipal market and we
remain optimistic about the prospects for the municipal bond market because:
. The new issue market is expected to shrink this year, boosting demand for
bonds currently outstanding and enhancing interest for the roughly $175
billion of new municipals expected in 2000;
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6 2000 Semi-Annual Report to Shareholders
<PAGE>
. 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,
may give the market a much needed boost;
. 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 but today, many state and local governments boast
budget surpluses. We believe these surpluses indicate that investors will
feel more comfortable holding municipals, even in a downturn; and
. Recent narrowing of spreads in the taxable market has made alternatives
less attractive. All of these trends help to explain why we remain
optimistic about the prospects for the municipal bond market.
Thank you for your investment in the Smith Barney New Jersey Municipals Fund
Inc.
Sincerely,
/s/ J P Deane
Joseph P. Deane
Vice President and
Investment Officer
October 11, 2000
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Smith Barney New Jersey Municipals Fund Inc. 7
<PAGE>
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Historical Performance -- Class A Shares
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<TABLE>
<CAPTION>
Net Asset Value
--------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns(1)
==========================================================================================
<S> <C> <C> <C> <C> <C> <C>
9/30/00 $11.96 $12.00 $0.33 $0.00 $0.00 3.14%+
------------------------------------------------------------------------------------------
3/31/00 13.26 11.96 0.64 0.10 0.00 (4.28)
------------------------------------------------------------------------------------------
3/31/99 13.44 13.26 0.66 0.23 0.00 5.41
------------------------------------------------------------------------------------------
3/31/98 12.92 13.44 0.71 0.06 0.00 10.20
------------------------------------------------------------------------------------------
3/31/97 12.88 12.92 0.68 0.00 0.00 5.74
------------------------------------------------------------------------------------------
3/31/96 12.62 12.88 0.70 0.00 0.00 7.77
------------------------------------------------------------------------------------------
3/31/95 12.55 12.62 0.70 0.00 0.00 6.37
------------------------------------------------------------------------------------------
3/31/94 13.16 12.55 0.70 0.15 0.00 1.66
------------------------------------------------------------------------------------------
3/31/93 12.44 13.16 0.75 0.14 0.01 13.49
------------------------------------------------------------------------------------------
3/31/92 12.17 12.44 0.77 0.13 0.04 10.22
------------------------------------------------------------------------------------------
3/31/91 11.92 12.17 0.83 0.05 0.01 9.89
==========================================================================================
Total $7.47 $0.86 $0.06
==========================================================================================
</TABLE>
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Historical Performance -- Class B Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns(1)
==========================================================================================
<S> <C> <C> <C> <C> <C> <C>
9/30/00 $11.95 $12.00 $0.29 $0.00 $0.00 2.93%+
------------------------------------------------------------------------------------------
3/31/00 13.25 11.95 0.57 0.10 0.00 (4.82)
------------------------------------------------------------------------------------------
3/31/99 13.44 13.25 0.59 0.23 0.00 4.80
------------------------------------------------------------------------------------------
3/31/98 12.92 13.44 0.64 0.06 0.00 9.66
------------------------------------------------------------------------------------------
3/31/97 12.88 12.92 0.62 0.00 0.00 5.23
------------------------------------------------------------------------------------------
3/31/96 12.62 12.88 0.63 0.00 0.00 7.20
------------------------------------------------------------------------------------------
3/31/95 12.55 12.62 0.62 0.00 0.00 5.76
------------------------------------------------------------------------------------------
3/31/94 13.16 12.55 0.63 0.15 0.00 1.15
------------------------------------------------------------------------------------------
Inception* - 3/31/93 12.75 13.16 0.27 0.14 0.01 6.60+
==========================================================================================
Total $4.86 $0.68 $0.01
==========================================================================================
</TABLE>
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8 2000 Semi-Annual Report to Shareholders
<PAGE>
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Historical Performance -- Class L Shares
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
--------------------
Beginning End Income Capital Gain Return Total
Period Ended of Period of Period Dividends Distributions of Capital Returns(1)
==========================================================================================
<S> <C> <C> <C> <C> <C> <C>
9/30/00 $11.95 $12.00 $0.29 $0.00 $0.00 2.91%+
------------------------------------------------------------------------------------------
3/31/00 13.25 11.95 0.56 0.10 0.00 (4.86)
------------------------------------------------------------------------------------------
3/31/99 13.43 13.25 0.58 0.23 0.00 4.78
------------------------------------------------------------------------------------------
3/31/98 12.92 13.43 0.63 0.06 0.00 9.50
------------------------------------------------------------------------------------------
3/31/97 12.88 12.92 0.61 0.00 0.00 5.17
------------------------------------------------------------------------------------------
3/31/96 12.62 12.88 0.63 0.00 0.00 7.17
------------------------------------------------------------------------------------------
Inception* - 3/31/95 11.86 12.62 0.18 0.00 0.00 8.01+
==========================================================================================
Total $3.48 $0.39 $0.00
==========================================================================================
</TABLE>
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
================================================================================
Six Months Ended 9/30/00+ 3.14% 2.93% 2.91%
--------------------------------------------------------------------------------
Year Ended 9/30/00 2.99 2.48 2.43
--------------------------------------------------------------------------------
Five Years Ended 9/30/00 4.46 3.93 3.86
--------------------------------------------------------------------------------
Ten Years Ended 9/30/00 6.59 N/A N/A
--------------------------------------------------------------------------------
Inception* through 9/30/00 7.06 4.80 5.54
================================================================================
With Sales Charges(2)
---------------------------------
Class A Class B Class L
================================================================================
Six Months Ended 9/30/00+ (0.99)% (1.57)% 0.89%
--------------------------------------------------------------------------------
Year Ended 9/30/00 (1.15) (1.88) 0.41
--------------------------------------------------------------------------------
Five Years Ended 9/30/00 3.61 3.77 3.65
--------------------------------------------------------------------------------
Ten Years Ended 9/30/00 6.16 N/A N/A
--------------------------------------------------------------------------------
Inception* through 9/30/00 6.71 4.80 5.36
================================================================================
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Smith Barney New Jersey Municipals Fund Inc. 9
<PAGE>
--------------------------------------------------------------------------------
Cumulative Total Returns
--------------------------------------------------------------------------------
Without Sales Charges(1)
================================================================================
Class A (9/30/90* through 9/30/00) 133.87%
--------------------------------------------------------------------------------
Class B (Inception* through 9/30/00) 44.84
--------------------------------------------------------------------------------
Class L (Inception* through 9/30/00) 36.75
================================================================================
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect the deduction of the
applicable sales charges with respect to Class A and L shares or the
applicable contingent deferred sales charges ("CDSC") with respect to Class
B and L shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class A and L shares reflect the
deduction of the maximum initial sales charges of 4.00% and 1.00%,
respectively; Class B shares reflect the deduction of a 4.50% CDSC, which
applies if shares are redeemed within one year from purchase. This CDSC
declines by 0.50% the first year after purchase and thereafter by 1.00% per
year until no CDSC is incurred. Class L shares also reflect the deduction
of a 1.00% CDSC, which applies if shares are redeemed within the first year
of purchase.
* Inception dates for Class A, B and L shares are April 22, 1988, November 6,
1992 and December 13, 1994, respectively.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
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10 2000 Semi-Annual Report to Shareholders
<PAGE>
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Historical Performance (unaudited)
--------------------------------------------------------------------------------
Growth of $10,000 Invested in Class A Shares of the
Smith Barney New Jersey Municipals Fund Inc.
vs. Lehman Brothers Municipal Bond Index+
--------------------------------------------------------------------------------
September 1990 -- September 2000
[GRAPH]
SB NEW JERSEY MUNICIPALS LEHMAN BROS MUNICIPAL
9/90 9,602 10,000
3/91 10,287 10,667
3/92 11,337 11,733
3/93 12,866 13,202
3/94 13,080 13,508
3/95 13,913 14,513
3/96 14,994 15,729
3/97 15,855 16,585
3/98 17,472 18,362
3/99 18,417 19,501
3/00 17,629 19,484
9/00 18,184 20,258
+ Hypothetical illustration of $10,000 invested in Class A shares on
September 30, 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 September 30, 2000. The Lehman Brothers
Municipal Bond Index is a broad-based, total return index comprised of
investment-grade, fixed rate municipal bonds selected from issues larger
than $50 million dated since January 1984. The Index is unmanaged and is
not subject to the same management and trading expenses of a mutual fund.
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.
--------------------------------------------------------------------------------
Smith Barney New Jersey Municipals Fund Inc. 11
<PAGE>
--------------------------------------------------------------------------------
Portfolio Highlights (unaudited) September 30, 2000
--------------------------------------------------------------------------------
[PIE CHART]
Portfolio Breakdown
14.6% Transportation
3.6% Housing
2.7% Pollution Control
14.4% Industrial Development
9.3% Education
2.9% Solid Waste
5.2% Life Care
9.8% General Obligation
19.9% Hospital
7.4% Utilities
10.2% Other
Summary of Investments by Combined Ratings
Standard & Percentage of
Moody's and/or Poor's Total Investments
--------------------------------------------------------------------------------
Aaa AAA 46.0%
Aa AA 12.5
A A 3.5
Baa BBB 16.9
Ba BB 2.4
B B 3.0
VMIG 1 A-1 0.3
NR NR 15.4
-----
100.0%
=====
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12 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited) September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================================
<S> <C> <C> <C>
Education -- 9.3%
East Orange Board of Education, COP, FSA-Insured:
$1,400,000 AAA Zero coupon due 8/1/14 $ 658,000
1,000,000 AAA Zero coupon due 8/1/15 441,250
1,845,000 AAA Zero coupon due 2/1/19 645,750
2,845,000 AAA Zero coupon due 2/1/23 782,375
2,845,000 AAA Zero coupon due 2/1/27 615,231
750,000 AAA Hamilton Township-Mercer County Board of Education,
COP, Series B, FSA-Insured, 7.000% due 12/15/15 774,150
1,000,000 AAA Lumberton Township School District,
COP, MBIA-Insured, 6.100% due 10/1/13 1,031,250
525,000 Aa3* New Jersey EDA Revenue, Princeton Montessori Society,
LOC Banque National de Paris, Series S, 6.500% due 6/1/12 539,437
New Jersey State Educational Facilities Financing
Authority Revenue:
950,000 NR Caldwell College, Series A, 7.250% due 7/1/25 977,312
2,700,000 NR Fairleigh Dickinson University, Series C,
6.625% due 7/1/23 2,706,750
550,000 BBB Monmouth University, Series D, 5.125% due 7/1/24 478,500
1,250,000 AAA Seton Hall University Project, Series F,
AMBAC-Insured, 5.000% due 7/1/21 1,135,937
St. Peters College, Series B:
1,000,000 BBB 5.375% due 7/1/18 913,750
2,000,000 BBB 5.500% due 7/1/27 1,775,000
2,190,000 AAA New Jersey State Higher Education Assistance Authority,
Student Loan Revenue, New Jersey Class Loan Program,
Series A, MBIA-Insured, 5.800% due 6/1/16 (b) 2,198,212
Rutgers State University Revenue:
600,000 AA Refunding, Series A, 6.400% due 5/1/13 665,250
1,905,000 AA Series U, 5.000% due 5/1/21 1,726,406
-----------------------------------------------------------------------------------------------------------------
18,064,560
-----------------------------------------------------------------------------------------------------------------
General Obligation -- 9.8%
850,000 AAA Essex County Improvement Authority, Lease Revenue, GO,
AMBAC-Insured, 5.125% due 4/1/29 773,500
200,000 AAA Hudson County, GO, FGIC-Insured, 6.550% due 7/1/10 226,500
500,000 AAA Jersey City, GO, Series 1991B, FSA-Insured,
8.400% due 5/15/06 591,875
Lafayette Yard, New Jersey Community Development Hotel,
Conference Center Project, Trenton, MBIA-Insured:
500,000 Aaa* 5.625% due 4/1/21 504,375
2,100,000 Aaa* 5.800% due 4/1/35 2,123,625
650,000 AAA Lakewood Township School District, GO, Series 92,
AMBAC-Insured, 6.250% due 2/15/11 719,875
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney New Jersey Municipals Fund Inc. 13
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited) (continued) September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================================
<S> <C> <C> <C>
General Obligation -- 9.8% (continued)
Morris Township, GO:
$ 550,000 Aa1* 6.550% due 7/1/09 $ 618,750
550,000 Aa1* 6.550% due 7/1/10 622,187
500,000 Aa1* 6.550% due 7/1/11 566,250
9,000,000 AA+ New Jersey State, GO, 4.500% due 2/1/18 7,785,000
1,500,000 AAA North Bergen Township, GO, FSA-Insured,
8.000% due 8/15/07 1,786,875
500,000 AAA South Amboy, GO, MBIA-Insured, 6.375% due 12/1/10 525,000
854,000 AAA Weehawken Township, GO, FSA-Insured, 6.350% due 7/1/07 881,533
West Windsor/Plainsboro, GO, Regional School District:
180,000 AA 6.750% due 4/1/06 198,450
490,000 AA 6.750% due 4/1/07 546,350
435,000 AA 6.800% due 4/1/08 491,006
170,000 AA 6.800% due 4/1/09 193,587
-----------------------------------------------------------------------------------------------------------------
19,154,738
-----------------------------------------------------------------------------------------------------------------
Hospital -- 19.9%
Camden County Improvement Authority Revenue:
3,775,000 B1* Health Care Redevelopment Project, Cooper Health,
5.875% due 2/15/15 2,727,437
1,000,000 AAA Health Systems, Catholic Health East, Series B,
AMBAC-Insured, 5.000% due 11/15/18 913,750
2,500,000 AAA New Jersey EDA, Nursing Home Revenue,
RWJ Health Care Corp., FSA-Insured, 6.500% due 7/1/24 2,628,125
New Jersey Health Care Facilities Financing Authority Revenue:
1,715,000 Aaa* Bayonne Hospital Obligation Group, FSA-Insured,
4.750% due 7/1/27 1,436,312
200,000 AAA Burdett Tomlin Memorial Hospital, Series D,
FGIC-Insured, Unrefunded Balance, 6.500% due 7/1/12 206,618
Columbus Hospital, Series A:
250,000 B 7.200% due 7/1/01 251,680
1,000,000 B 7.500% due 7/1/21 930,000
2,300,000 Baa2* Deborah Heart & Lung Center, 6.300% due 7/1/23 2,164,875
750,000 BBB- East Orange General Hospital, Series B, 7.750% due 7/1/20 765,937
1,250,000 AAA Hackensack University Medical Center, Series B,
MBIA-Insured, 5.200% due 1/1/28 1,140,625
750,000 AAA Medical Center at Princeton Obligation Group,
AMBAC-Insured, 5.000% due 7/1/28 660,937
825,000 AAA Muhlenberg Regional Medical Center, Series B,
AMBAC-Insured, 8.000% due 7/1/18 827,863
Pascack Valley Hospital Association:
2,000,000 BBB- 5.125% due 7/1/18 1,547,500
5,000,000 BBB- 5.125% due 7/1/28 3,606,250
3,700,000 NR Raritan Bay Medical Center, 7.250% due 7/1/27 3,297,625
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
14 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited) September 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
====================================================================================================
<S> <C> <C> <C>
Hospital -- 19.9% (continued)
$3,000,000 A+ Robert Wood Johnson University Hospital,
5.750% due 7/1/31 $ 2,925,000
2,000,000 Baa1* Southern Ocean County Hospital, Series A,
6.250% due 7/1/23 1,882,500
St. Barnabas Hospital Obligation Group, MBIA-Insured:
750,000 AAA Zero coupon due 7/1/16 308,437
3,700,000 AAA Zero coupon due 7/1/17 1,433,750
3,450,000 AAA Zero coupon due 7/1/23 918,563
2,500,000 Aaa* St. Barnabas Medical Center, Series A, MBIA-Insured,
5.000% due 7/1/23 2,221,875
2,000,000 BBB- St. Elizabeth's Hospital, 6.000% due 7/1/14 1,782,500
2,600,000 Baa1* St. Mary Hospital, 5.875% due 7/1/12 2,713,750
1,500,000 AAA University of Medicine & Dentistry, Series A,
MBIA-Insured, 5.000% due 9/1/22 1,361,250
----------------------------------------------------------------------------------------------------
38,653,159
----------------------------------------------------------------------------------------------------
Housing: Multi-Family -- 2.2%
1,500,000 AAA Newark Housing Financing Corp., Mortgage Revenue,
Refunding, Manor Apartments, Series A, FHA-Insured,
7.500% due 2/15/24 1,590,000
2,550,000 AAA New Jersey State Housing & Mortgage Finance Agency,
Multi-Family Housing Revenue, Presidential Plaza,
Series 1, FHA-Insured, 7.000% due 5/1/30 2,645,498
----------------------------------------------------------------------------------------------------
4,235,498
----------------------------------------------------------------------------------------------------
Housing: Single-Family -- 1.4%
2,250,000 AAA New Jersey State Housing & Mortgage Finance
Agency Revenue, Home Buyer, Series Z, MBIA-Insured,
5.700% due 10/1/17 2,278,125
380,000 AAA Virgin Islands HFA, Single-Family Mortgage Revenue,
Series A, GNMA-Collateralized, 6.500% due 3/1/25 (b) 390,450
----------------------------------------------------------------------------------------------------
2,668,575
----------------------------------------------------------------------------------------------------
Industrial Development -- 14.4%
650,000 BBB+ Essex County Improvement Authority, Lease Revenue,
6.600% due 4/1/14 702,813
New Jersey EDA, EDR:
945,000 NR Series L, 7.100% due 12/1/11 (b) 979,256
1,020,000 NR Station Plaza Park and Ride LP Project,
6.625% due 7/1/03 (b) 1,028,925
930,000 NR Zirbser-Greenbriar Inc., Series A, 7.375% due 7/15/03 950,925
1,500,000 BB+ New Jersey EDA, Electric Energy Facility Revenue,
Vineland Cogeneration LP Project, 7.875% due 6/1/19 (b) 1,556,250
1,000,000 AAA New Jersey EDA, Natural Gas Facilities Revenue, NUI Corp.,
Series A, AMBAC-Insured, 6.350% due 10/1/22 1,041,250
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney New Jersey Municipals Fund Inc. 15
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited) September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================================
<S> <C> <C> <C>
Industrial Development -- 14.4% (continued)
New Jersey EDA, Revenue:
Cadbury Corp. Project, Series A, ACA-Insured:
$ 750,000 A 5.500% due 7/1/18 $ 714,375
1,250,000 A 5.500% due 7/1/28 1,153,125
First Mortgage, Fellowship Village, Series A:
2,000,000 BBB- 5.500% due 1/1/18 1,627,500
2,500,000 BBB- 5.500% due 1/1/25 1,937,500
Harrogate Inc., Series A:
2,000,000 BBB 5.750% due 12/1/16 1,862,500
1,500,000 BBB 5.875% due 12/1/26 1,248,750
1,000,000 A+ Morris Hall/St. Lawrence Project, Series A,
LOC CoreStates First Bank, 6.250% due 4/1/25 1,025,000
970,000 NR Series A-3, (Pre-Refunded-- Escrowed with
U.S. government securities to 12/1/02 Call @ 101.50),
6.550% due 12/1/07 (b)(c) 997,888
3,750,000 NR Sr. Mortgage, Arbor Glen, Series A, 6.000% due 5/15/28 2,878,125
3,890,000 BB New Jersey EDA, Special Facility Revenue,
Continental Airlines Inc. Project, 5.500% due 4/1/28 (b) 3,126,588
1,000,000 AAA New Jersey EDA, State Contract, Economic Recovery Revenue,
Series A, FSA-Insured, 6.000% due 3/15/21 1,015,000
3,000,000 Aaa* New Jersey EDA, State Lease Revenue, Bergen County
Administration Complex, MBIA-Insured,
4.750% due 11/15/26 2,565,000
1,500,000 BBB+ New Jersey EDA, Terminal Revenue, GATX Terminal Corp.,
Series 1994, 7.300% due 9/1/19 1,582,500
-----------------------------------------------------------------------------------------------------------------
27,993,270
-----------------------------------------------------------------------------------------------------------------
Life Care -- 5.2%
New Jersey EDA, EDR:
855,000 Aaa* Eagle Rock Convalescent, Inc., GNMA-Collateralized,
7.375% due 12/20/06 883,728
5,250,000 BBB- Refunding United Methodist Homes, 5.125% due 7/1/25 3,839,063
New Jersey EDA Revenue, First Mortgage, Keswick Pines:
2,885,000 NR 5.700% due 1/1/18 2,398,156
2,800,000 NR 5.750% due 1/1/24 2,247,000
725,000 AAA New Jersey Health Care Facilities Financing Authority
Revenue, Spectrum for Living, Series B, FHA-Insured,
6.500% due 2/1/22 749,469
-----------------------------------------------------------------------------------------------------------------
10,117,416
-----------------------------------------------------------------------------------------------------------------
Miscellaneous -- 9.7%
615,000 A Atlantic City COP, Series 1991, 8.875% due 1/15/13 797,194
2,500,000 AAA Atlantic County COP, Public Facilities Lease Agreements,
FGIC-Insured, 7.400% due 3/1/09 2,931,250
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
16 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited)(continued) September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================================
<S> <C> <C> <C>
Miscellaneous -- 9.7% (continued)
$5,000,000 AAA Casino Reinvestment Development Authority Parking
Fee Revenue, Series A, FSA-Insured, 5.250% due 10/1/16 $ 4,906,250
240,000 A+ Hudson County Improvement Authority, (Essential Purpose
Pooled Governmental Loan Project), Series 1986,
Remarketed 11/1/90, 7.600% due 8/1/25 246,691
1,525,000 AAA Monmouth County Improvement Authority Revenue,
Governmental Loan, AMBAC-Insured, 5.750% due 12/1/19 1,547,875
1,000,000 Aaa* Morristown Parking Authority, Guaranteed Revenue,
FSA-Insured, 5.150% due 8/1/25 917,500
1,750,000 AAA New Brunswick Housing Authority, Lease Revenue,
Rutgers University, FGIC-Insured, 4.750% due 7/1/18 1,555,313
1,000,000 AAA New Brunswick Parking Authority Revenue, Series A,
FGIC-Insured, 6.500% due 9/1/19 1,036,250
480,000 NR New Jersey EDA, EDR, National Association of Accountants,
7.650% due 7/1/09 493,123
1,000,000 NR New Jersey EDA, Waste Paper Recycling Revenue,
(Marcal Paper Mills Inc. Project), 8.500% due 2/1/10 (b) 1,100,000
3,000,000 AAA New Jersey Sports and Exposition Authority, Monmouth Park,
Series A, (Pre-Refunded -- Escrowed with U.S. government
securities to 1/1/05 Call @ 102), 8.000% due 1/1/25 3,435,000
-----------------------------------------------------------------------------------------------------------------
18,966,446
-----------------------------------------------------------------------------------------------------------------
Pollution Control -- 2.7%
Middlesex County Pollution Control Authority, Financing
Revenue, Amerada Hess Corp.:
1,000,000 NR 7.875% due 6/1/22 1,082,500
2,000,000 NR 6.875% due 12/1/22 2,047,500
2,030,000 NR New Jersey EDA, Revenue, Sewer Facilities,
Atlantic City Sewer Co., 7.250% due 12/1/11 (b) 2,116,275
-----------------------------------------------------------------------------------------------------------------
5,246,275
-----------------------------------------------------------------------------------------------------------------
Solid Waste -- 2.9%
1,950,000 B1* Atlantic County Utilities Authority, Solid Waste Revenue,
7.125% due 3/1/16 1,876,875
2,500,000 Aa2* Mercer County Improvement Authority, County Guaranteed,
Solid Waste Revenue, 5.750% due 9/15/16 2,568,750
1,250,000 Aa3* New Jersey EDA, Solid Waste Revenue Disposal Facility,
Garden State Paper Co., LOC Toronto Dominion Bank,
7.125% due 4/1/22 1,276,563
-----------------------------------------------------------------------------------------------------------------
5,722,188
-----------------------------------------------------------------------------------------------------------------
Transportation -- 14.6%
2,000,000 AAA Delaware River & Bay Authority, Development Revenue,
Series A, AMBAC-Insured, 5.750% due 1/1/29 2,022,500
800,000 Baa1* Essex County Improvement Authority, Airport Project Revenue,
6.800% due 11/1/21 (b) 811,000
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney New Jersey Municipals Fund Inc. 17
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited) September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================================
<S> <C> <C> <C>
Transportation -- 14.6% (continued)
$1,000,000 Baa1* New Jersey EDA, EDR, (American Airlines Inc. Project),
7.100% due 11/1/31 (b) $ 1,018,750
6,000,000 AAA New Jersey EDA, Transportation Project, Sublease,
Series A, FSA-Insured, 5.250% due 5/1/17 5,850,000
3,000,000 AA- New Jersey State Highway Authority Garden State Parkway,
General Revenue, Series Parkway, 5.625% due 1/1/30 2,985,000
3,780,000 AA New Jersey State Transportation Trust Fund Authority,
Transportation System, Series A, 5.000% due 6/15/17 3,524,850
Port Authority of New York & New Jersey, Special Obligation
Revenue:
3,500,000 NR 5th Installment, 6.750% due 10/1/19 (b) 3,587,500
2,000,000 AAA 96th Series, FGIC-Insured, 6.600% due 10/1/23 (b) 2,107,500
600,000 A-1+ Versatile Structure Obligation, 5th Series,
4.230% due 8/1/24 (d) 600,000
6,385,000 AAA South Jersey Transportation Authority, Transportation
System Revenue, AMBAC-Insured, 5.125% due 11/1/22 5,898,144
-----------------------------------------------------------------------------------------------------------------
28,405,244
-----------------------------------------------------------------------------------------------------------------
Utilities -- 7.4%
700,000 Baa1* Beachwood Sewer Authority Revenue, Jr. Lien,
6.500% due 12/1/12 728,875
1,000,000 AAA Bordentown Sewer Authority Revenue, Series C,
MBIA-Insured, 6.900% due 12/1/16 1,022,400
1,000,000 AAA Camden County Municipal Utilities Authority,
Sewer Revenue, FGIC-Insured, 5.250% due 7/15/17 970,000
1,000,000 AAA Deptford Township Municipal Utilities, AMBAC-Insured,
5.500% due 2/1/23 982,500
2,500,000 AAA Hamilton Township, Atlantic County Municipal Utilities
Authority, FGIC-Insured, 5.000% due 8/15/17 2,331,250
1,385,000 AAA Kearny Municipal Utilities Authority Revenue, FGIC-Insured,
7.300% due 11/15/18 1,648,150
1,300,000 AAA Middlesex County Improvement Authority, Utilities System
Revenue, Perth Amboy Franchise Project, Series A,
AMBAC-Insured, 5.000% due 9/1/29 1,158,625
1,000,000 AAA Middlesex County Utilities Authority, Sewer Revenue,
Series A, MBIA-Insured, 6.250% due 8/15/10 1,090,000
1,000,000 AAA New Jersey EDA, Natural Gas Facilities Revenue,
(New Jersey Natural Gas Co. Project), Series A,
AMBAC-Insured, 6.250% due 8/1/24 1,035,000
750,000 AAA Old Bridge Township Municipal Utilities Authority Revenue,
FGIC-Insured, 6.400% due 11/1/09 792,188
1,000,000 AAA Southeast Morris County Municipal Utilities Authority,
Water Revenue, Series A, FGIC-Insured, 6.500% due 1/1/11 1,024,160
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
18 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (unaudited) September 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE
AMOUNT RATING(a) SECURITY VALUE
=================================================================================================================
<S> <C> <C> <C>
Utilities -- 7.4% (continued)
Union County Utilities Authority:
Capital Appreciation, County Deficiency, Series C2:
$ 310,000 Aaa* Zero coupon due 6/15/13 $ 156,550
310,000 Aaa* Zero coupon due 6/15/14 146,863
310,000 Aaa* Zero coupon due 6/15/15 137,563
305,000 Aaa* Zero coupon due 6/15/16 126,575
310,000 Aaa* Zero coupon due 6/15/17 121,288
310,000 Aaa* Zero coupon due 6/15/18 113,538
1,000,000 AAA Sr. Lease Obligation, Ogden Martin, Series A,
5.000% due 6/1/23 (b) 885,000
-----------------------------------------------------------------------------------------------------------------
14,470,525
-----------------------------------------------------------------------------------------------------------------
Water & Sewer -- 0.5%
1,000,000 NR New Jersey EDA Water Facilities Revenue,
(American Water Co. Inc. Project), 7.400% due 11/1/01 (b) 1,014,820
-----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $202,452,925**) $ 194,712,714
=================================================================================================================
</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) Pre-Refunded bonds escrowed with U.S. government securities and bonds
escrowed to maturity with U.S. government securities are considered by the
manager to be triple-A rated even if issuer has not applied for new
ratings.
(d) Variable rate obligation payable at par on demand at anytime on no more
than seven days notice.
** Aggregate cost for Federal income tax purposes is substantially the same.
See pages 20 through 22 for definitions of ratings and certain security
descriptions.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney New Jersey Municipals Fund Inc. 19
<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 differ 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 debt in this
category than in higher rated categories.
BB -- Bonds rated "BB" and "B" are regarded, on balance, as
and B -- predominantly speculative with respect to the issuer's capacity
to pay interest and repay principal in accordance with the terms
of the obligation. "BB" indicates the lowest degree of
speculation and "B" the highest degree of speculation. While such
bonds will likely have some quality and protective
characteristics, these are outweighed by large uncertainties or
major risk exposures to adverse conditions.
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 that are 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 that are 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 that are 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 that are 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 thereby not well safeguarded during both good and
bad times over the future. Uncertainty of position characterizes
bonds in this class.
B -- Bonds that are 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.
--------------------------------------------------------------------------------
20 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Bond Ratings (unaudited) (continued)
--------------------------------------------------------------------------------
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.
AAA -- Bonds rated AAA by Fitch have the lowest expectation of credit
risk. The obligor has an exceptionally strong capacity for timely
payment of financial commitments which is highly unlikely to be
adversely affected by foreseeable events.
BBB -- Bonds rated BBB by Fitch currently have a low expectation of
credit risk. The capacity for timely payment of financial
commitments is considered to be adequate. Adverse changes in
economic conditions and circumstances, however, are more likely
to impair this capacity. This is the lowest investment grade
category assigned by Fitch.
BB -- Bonds rated BB by Fitch carry the possibility of credit risk
developing, particularly as the result of adverse economic change
over time. Business or financial alternatives may, however, be
available to allow financial commitments to be met. Securities
rated in this category are not considered by Fitch to be
investment grade.
NR -- Indicates that the bond is not rated by Standard & Poor's,
Moody's or Fitch.
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
Smith Barney New Jersey Municipals Fund Inc. 21
<PAGE>
--------------------------------------------------------------------------------
Security Descriptions (unaudited)
--------------------------------------------------------------------------------
ABAG -- Association of Bay Area Governments
ACA -- American Credit Association
AIG -- American International Guaranty
AMBAC -- American Municipal Bond Assurance Corporation
BIG -- Bond Investors Guaranty
CGIC -- Capital Guaranty Insurance Company
COP -- Certificate of Participation
EDA -- Economic Development Authority
EDR -- Economic Development Revenue
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
FSA -- Financing Security Assurance
GIC -- Guaranteed Investment Contract
GNMA -- Government National Mortgage Association
GO -- General Obligation Bonds
HFA -- Housing Finance Authority
IDA -- Industrial Development Authority
IDB -- Industrial Development Board
IDR -- Industrial Development Revenue
INFLOS -- Inverse Floaters
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance Corporation
MVRICS -- Municipal Variable Rate Inverse Coupon Security
PCR -- Pollution Control Revenue
RIBS -- Residual Interest Bonds
VA -- Veterans Administration
VRDD -- Variable Rate Daily Demand
VRWE -- Variable Rate Wednesday Demand
--------------------------------------------------------------------------------
22 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statement of Assets and Liabilities (unaudited) September 30, 2000
--------------------------------------------------------------------------------
ASSETS:
Investments, at value (Cost -- $202,452,925) $194,712,714
Cash 74,402
Interest receivable 3,372,419
Receivable for Fund shares sold 11,190
--------------------------------------------------------------------------------
Total Assets 198,170,725
--------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 983,941
Dividends payable 869,582
Investment advisory fees payable 47,026
Administration fees payable 34,920
Distribution fees payable 14,523
Payable for Fund shares purchased 2,904
Accrued expenses 45,201
--------------------------------------------------------------------------------
Total Liabilities 1,998,097
--------------------------------------------------------------------------------
Total Net Assets $196,172,628
================================================================================
NET ASSETS:
Par value of capital shares $ 16,346
Capital paid in excess of par value 207,838,686
Undistributed net investment income 330,641
Accumulated net realized loss from security transactions (4,272,834)
Net unrealized depreciation of investments (7,740,211)
--------------------------------------------------------------------------------
Total Net Assets $196,172,628
================================================================================
Shares Outstanding:
Class A 11,204,845
--------------------------------------------------------------------------------
Class B 4,425,954
--------------------------------------------------------------------------------
Class L 715,139
--------------------------------------------------------------------------------
Net Asset Value:
Class A (and redemption price) $12.00
--------------------------------------------------------------------------------
Class B * $12.00
--------------------------------------------------------------------------------
Class L ** $12.00
--------------------------------------------------------------------------------
Maximum Public Offering Price Per Share:
Class A (net asset value plus 4.17% of net asset value
per share) $12.50
--------------------------------------------------------------------------------
Class L (net asset value plus 1.01% of net asset value
per share) $12.12
================================================================================
* 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 4).
** Redemption price is NAV of Class L shares reduced by a 1.00% CDSC if shares
are redeemed within the first year of purchase.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney New Jersey Municipals Fund Inc. 23
<PAGE>
--------------------------------------------------------------------------------
Statement of Operations (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended September 30, 2000
INVESTMENT INCOME:
Interest $ 6,119,879
--------------------------------------------------------------------------------
EXPENSES:
Distribution fees (Note 4) 305,711
Investment advisory fees (Note 4) 295,484
Administration fees (Note 4) 196,989
Shareholder and system servicing fees 37,233
Shareholder communications 20,295
Audit and legal 19,447
Registration fees 9,974
Pricing service fees 9,473
Directors' fees 7,231
Custody 5,319
Other 6,399
--------------------------------------------------------------------------------
Total Expenses 913,555
--------------------------------------------------------------------------------
Net Investment Income 5,206,324
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 5):
Realized Loss From Security Transactions
(excluding short-term securities):
Proceeds from sales 11,042,558
Cost of securities sold 11,163,152
--------------------------------------------------------------------------------
Net Realized Loss (120,594)
--------------------------------------------------------------------------------
Change in Net Unrealized Depreciation of Investments:
Beginning of period (8,625,915)
End of period (7,740,211)
--------------------------------------------------------------------------------
Decrease in Net Unrealized Depreciation 885,704
--------------------------------------------------------------------------------
Net Gain on Investments 765,110
--------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 5,971,434
================================================================================
See Notes to Financial Statements.
--------------------------------------------------------------------------------
24 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
For the Six Months Ended September 30, 2000 (unaudited)
and the Year Ended March 31, 2000
<TABLE>
<CAPTION>
September 30 March 31
--------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 5,206,324 $ 11,391,496
Net realized loss (120,594) (4,145,394)
(Increase) decrease in net unrealized
depreciation 885,704 (18,554,761)
--------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Operations 5,971,434 (11,308,659)
--------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTE 3):
Net investment income (5,258,958) (11,004,883)
Net realized gains -- (1,749,720)
--------------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (5,258,958) (12,754,603)
--------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares 9,948,937 33,842,730
Net asset value of shares issued for
reinvestment of dividends 2,479,181 7,394,209
Cost of shares reacquired (16,927,435) (65,236,571)
--------------------------------------------------------------------------------------------
Decrease in Net Assets From Fund Share
Transactions (4,499,317) (23,999,632)
--------------------------------------------------------------------------------------------
Decrease in Net Assets (3,786,841) (48,062,894)
NET ASSETS:
Beginning of period 199,959,469 248,022,363
--------------------------------------------------------------------------------------------
End of period* $196,172,628 $199,959,469
============================================================================================
* Includes undistributed net investment income of: $330,641 $383,275
============================================================================================
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
Smith Barney New Jersey Municipals Fund Inc. 25
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
--------------------------------------------------------------------------------
1. Significant Accounting Policies
Smith Barney New Jersey Municipals Fund Inc. ("Fund"), a Maryland corporation,
is registered under the Investment Company Act of 1940, as amended, as a
non-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 the quoted bid and ask 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 for
which market quotations are not available will be valued in good faith at fair
value by or under the direction of the Board of Directors; (d) securities
maturing within 60 days are valued at cost plus accreted discount or minus
amortized premium, which approximates value; (e) gains or losses on the sale of
securities are calculated by using the specific identification method; (f)
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; (g) direct expenses are charged to the
Fund and each class; management fees and general fund expenses are allocated on
the basis of relative net assets by class; (h) dividends and distributions to
shareholders are recorded on the ex-dividend date; (i) 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; (j)
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 (k) 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 any other parameters
used in determining these estimates could cause actual results to differ.
2. Fund Concentration
Since the Fund invests primarily in obligations of issuers within New Jersey, it
is subject to possible concentration risks associated with economic, political
or legal developments or industrial or regional matters specifically affecting
New Jersey.
--------------------------------------------------------------------------------
26 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
3. Exempt-Interest Dividends and Other Distributions
The Fund intends to satisfy conditions that will enable interest from municipal
securities, which is exempt from regular Federal income tax and from designated
state income taxes, to retain such tax-exempt status when distributed to the
shareholders of the Fund.
Capital gains distributions, if any, are taxable to shareholders, and are
declared and paid at least annually.
4. 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 0.30% of the average daily net
assets. 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 and 0.18% of the average daily net assets in excess of $500 million.
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
Fund's sub-transfer agent. CFTC receives account fees and asset-based fees that
vary according to the size and type of account. PFPC is responsible for
shareholder recordkeeping and financial processing for all shareholder accounts
and is paid by CFTC. For the six months ended September 30, 2000, the Fund paid
transfer agent fees of $29,553 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 a contingent deferred sales charge ("CDSC") of
4.50% on Class B shares, which applies if redemption occurs within one year from
initial purchase. This CDSC declines by 0.50% the first year after purchase
--------------------------------------------------------------------------------
Smith Barney New Jersey Municipals Fund Inc. 27
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
and thereafter by 1.00% per year until no CDSC is incurred. Class L shares also
have a 1.00% CDSC, which applies if redemption occurs within the first year of
purchase. In certain cases, 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 aggregate. These purchases do not
incur an initial sales charge.
For the six months ended September 30, 2000, SSB and CFBDS received sales
charges of $61,000 and $8,000 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 $1,000 $24,000 $1,000
================================================================================
Pursuant to a Distribution Plan, the Fund pays a service fee with respect to its
Class A, B and L shares, calculated at the 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 for each class,
respectively. For the six months ended September 30, 2000, total Distribution
Plan fees incurred were:
Class A Class B Class L
================================================================================
Distribution Plan Fees $100,988 $175,039 $29,684
================================================================================
All officers and one Director of the Fund are employees of SSB.
5. Investments
During the six months ended September 30, 2000, the aggregate cost of purchases
and proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
================================================================================
Purchases $ 8,465,381
--------------------------------------------------------------------------------
Sales 11,042,558
================================================================================
At September 30, 2000, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were substantially
as follows:
================================================================================
Gross unrealized appreciation $ 4,897,546
Gross unrealized depreciation (12,637,757)
--------------------------------------------------------------------------------
Net unrealized depreciation $ (7,740,211)
================================================================================
--------------------------------------------------------------------------------
28 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
--------------------------------------------------------------------------------
6. Capital Loss Carryforward
At March 31, 2000, the Fund had, for Federal income tax purposes, approximately
$1,315,000 of unused capital loss carryforwards expiring March 31, 2008 which
are 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.
7. Capital Shares
At September 30, 2000, the Fund had 100 million shares of capital stock
authorized with a par value of $0.001 per share. The Fund has the ability to
issue multiple classes of shares. Each share of a class represents an identical
interest and has the same rights, except that each class bears certain direct
expenses, including those specifically related to the distribution of its
shares.
At September 30, 2000, total paid-in capital amounted to the following for each
class:
Class A Class B Class L
================================================================================
Total Paid-in Capital $138,792,672 $59,472,715 $9,589,645
================================================================================
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
September 30, 2000 March 31, 2000
------------------------ -------------------------
Shares Amount Shares Amount
=================================================================================================
<S> <C> <C> <C> <C>
Class A
Shares sold 552,640 $ 6,607,878 1,907,027 $ 23,527,964
Shares issued on reinvestment 141,910 1,689,602 405,630 4,989,583
Shares reacquired (888,038) (10,606,182) (3,701,369) (45,420,891)
-------------------------------------------------------------------------------------------------
Net Decrease (193,488) $ (2,308,702) (1,388,712) $(16,903,344)
=================================================================================================
Class B
Shares sold 195,728 $ 2,342,155 577,215 $ 7,166,572
Shares issued on reinvestment 56,456 671,948 167,342 2,056,689
Shares reacquired (435,964) (5,205,831) (1,367,865) (16,785,900)
-------------------------------------------------------------------------------------------------
Net Decrease (183,780) $ (2,191,728) (623,308) $ (7,562,639)
=================================================================================================
Class L
Shares sold 83,513 $ 998,904 248,648 $ 3,148,194
Shares issued on reinvestment 9,885 117,631 28,338 347,937
Shares reacquired (93,200) (1,115,422) (248,369) (3,029,780)
-------------------------------------------------------------------------------------------------
Net Increase 198 $ 1,113 28,617 $ 466,351
=================================================================================================
</TABLE>
--------------------------------------------------------------------------------
Smith Barney New Jersey Municipals Fund Inc. 29
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended March 31, except were noted:
<TABLE>
<CAPTION>
Class A Shares 2000(1)(2) 2000(2) 1999(2) 1998 1997 1996
===============================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $11.96 $13.26 $13.44 $12.92 $12.88 $12.62
-----------------------------------------------------------------------------------------------
Income (Loss)
From Operations:
Net investment income 0.33 0.65 0.66 0.70 0.70 0.70
Net realized and
unrealized gain (loss) 0.04 (1.21) 0.05 0.59 0.02 0.26
-----------------------------------------------------------------------------------------------
Total Income (Loss)
From Operations 0.37 (0.56) 0.71 1.29 0.72 0.96
-----------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.33) (0.64) (0.66) (0.71) (0.68) (0.70)
Net realized gains -- (0.10) (0.23) (0.06) -- --
-----------------------------------------------------------------------------------------------
Total Distributions (0.33) (0.74) (0.89) (0.77) (0.68) (0.70)
-----------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $12.00 $11.96 $13.26 $13.44 $12.92 $12.88
-----------------------------------------------------------------------------------------------
Total Return 3.14%++ (4.28)% 5.41% 10.20% 5.74% 7.77%
-----------------------------------------------------------------------------------------------
Net Assets,
End of Period (millions) $134 $136 $170 $158 $148 $154
-----------------------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses 0.76%+ 0.74% 0.75% 0.75% 0.76% 0.84%
Net investment income 5.45+ 5.26 4.89 5.22 5.44 5.41
-----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 4% 21% 52% 55% 36% 22%
===============================================================================================
</TABLE>
(1) For the six months ended September 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
30 2000 Semi-Annual Report to Shareholders
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each
year ended March 31, except where noted:
<TABLE>
<CAPTION>
Class B Shares 2000(1)(2) 2000(2) 1999(2) 1998 1997 1996
===============================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $11.95 $13.25 $13.44 $12.92 $12.88 $12.62
-----------------------------------------------------------------------------------------------
Income (Loss)
From Operations:
Net investment income 0.29 0.59 0.59 0.63 0.64 0.63
Net realized and
unrealized gain (loss) 0.05 (1.22) 0.04 0.59 0.02 0.26
-----------------------------------------------------------------------------------------------
Total Income (Loss)
From Operations 0.34 (0.63) 0.63 1.22 0.66 0.89
-----------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.29) (0.57) (0.59) (0.64) (0.62) (0.63)
Net realized gains -- (0.10) (0.23) (0.06) -- --
-----------------------------------------------------------------------------------------------
Total Distributions (0.29) (0.67) (0.82) (0.70) (0.62) (0.63)
-----------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $12.00 $11.95 $13.25 $13.44 $12.92 $12.88
-----------------------------------------------------------------------------------------------
Total Return 2.93%++ (4.82)% 4.80% 9.66% 5.23% 7.20%
-----------------------------------------------------------------------------------------------
Net Assets,
End of Period (000s) $53,117 $55,108 $69,350 $65,773 $62,249 $63,272
-----------------------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses 1.29%+ 1.26% 1.28% 1.27% 1.28% 1.36%
Net investment income 4.93+ 4.74 4.37 4.70 4.92 4.90
-----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 4% 21% 52% 55% 36% 22%
===============================================================================================
</TABLE>
(1) For the six months ended September 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
Smith Barney New Jersey Municipals Fund Inc. 31
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights (continued)
--------------------------------------------------------------------------------
For a share of each class of capital stock outstanding throughout each year
ended March 31, except where noted:
<TABLE>
<CAPTION>
Class L Shares 2000(1)(2) 2000(2) 1999(2)(3) 1998 1997 1996
===============================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $11.95 $13.25 $13.43 $12.92 $12.88 $12.62
-----------------------------------------------------------------------------------------------
Income (Loss)
From Operations:
Net investment income 0.29 0.59 0.58 0.61 0.63 0.62
Net realized and
unrealized gain (loss) 0.05 (1.23) 0.05 0.59 0.02 0.27
-----------------------------------------------------------------------------------------------
Total Income (Loss)
From Operations 0.34 (0.64) 0.63 1.20 0.65 0.89
-----------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.29) (0.56) (0.58) (0.63) (0.61) (0.63)
Net realized gains -- (0.10) (0.23) (0.06) -- --
-----------------------------------------------------------------------------------------------
Total Distributions (0.29) (0.66) (0.81) (0.69) (0.61) (0.63)
-----------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $12.00 $11.95 $13.25 $13.43 $12.92 $12.88
-----------------------------------------------------------------------------------------------
Total Return 2.91%++ (4.86)% 4.78% 9.50% 5.17% 7.17%
-----------------------------------------------------------------------------------------------
Net Assets,
End of Period (000s) $8,580 $8,544 $9,093 $6,153 $4,861 $3,812
-----------------------------------------------------------------------------------------------
Ratios to Average
Net Assets:
Expenses 1.33%+ 1.32% 1.32% 1.39% 1.32% 1.41%
Net investment income 4.89+ 4.70 4.32 4.58 4.88 4.82
-----------------------------------------------------------------------------------------------
Portfolio Turnover Rate 4% 21% 52% 55% 36% 22%
===============================================================================================
</TABLE>
(1) For the six months ended September 30, 2000 (unaudited).
(2) Per share amounts have been calculated using the monthly average shares
method.
(3) On June 12, 1998, Class C shares were renamed Class L shares.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
--------------------------------------------------------------------------------
32 2000 Semi-Annual Report to Shareholders
<PAGE>
[LOGO OF SALOMON SMITH BARNEY]
Directors Custodian
Herbert Barg PFPC Trust Company
Alfred J. Bianchetti
Martin Brody Transfer Agent
Dwight B. Crane Citi Fiduciary Trust Company
Burt Dorsett 125 Broad Street, 11th Floor
Elliot Jaffe New York, New York 10004
Stephen E. Kaufman
Joseph J. McCann Sub-Transfer Agent
Heath B. McLendon, Chairman PFPC Global Fund Services
Cornelius Rose P.O. Box 9699
Providence, Rhode Island 02940-9699
James J. Crisona, Emeritus
This report is submitted for the general
Officers information of the shareholders of Smith
Heath B. McLendon Barney New Jersey Municipals Fund Inc. It is
President and not authorized for distribution to
Chief Executive Officer prospective investors unless accompanied or
preceded by a current Prospectus for the
Fund, which contains information concerning
Lewis E. Daidone the Fund's investment policies and expenses
Senior Vice President as well as other pertinent information. If
and Treasurer used as sales material after December 31,
2000, this report must be accompanied by
Joseph P. Deane performance information for the most
Vice President recently completed calendar quarter.
and Investment Officer
Salomon Smith Barney is a service mark
Paul A. Brook of Salomon Smith Barney Inc.
Controller
Christina T. Sydor Smith Barney New Jersey
Secretary Municipals Fund Inc.
388 Greenwich Street, MF-2
Investment Adviser New York, New York 10013
and Administrator
SSB Citi Fund Management LLC
Distributor www.smithbarney.com/mutualfunds
Salomon Smith Barney Inc.
FD0450 11/00
