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<PAGE> PAGE 2
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SIGNATURE CHARLES RIZZO
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000859031
<NAME> MANAGED MUNICIPAL FUND ISI CLASS
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR END> 31-Oct-99
<PERIOD-END> 31-Oct-99
<INVESTMENTS-AT-COST> 106,401,265
<INVESTMENTS-AT-VALUE> 103,775,359
<RECEIVABLES> 1,435,082
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<TOTAL-ASSETS> 105,232,282
<PAYABLE-FOR-SECURITIES> 0
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<TOTAL-LIABILITIES> 473,882
<PAID-IN-CAPITAL-COMMON> 73,245,775
<SHARES-COMMON-CURRENT> 6,974,447
<SHARES-COMMON-PRIOR> 7,336,051
<ACCUMULATED-NII-CURRENT> (10,935)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (2,625,906)
<NET-ASSETS> 70,608,799
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,843,480
<OTHER-INCOME> 0
<EXPENSES-NET> 1,025,392
<NET-INVESTMENT-INCOME> 4,818,088
<REALIZED-GAINS-CURRENT> 547,939
<APPREC-INCREASE-CURRENT> (9,251,142)
<NET-CHANGE-FROM-OPS> (3,885,115)
<DISTRIBUTIONS-OF-INCOME> (3,369,957)
<DISTRIBUTIONS-OF-GAINS> 312,768
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 261,822
<NUMBER-OF-SHARES-REDEEMED> 786,574
<SHARES-REINVESTED> 163,148
<NET-CHANGE-IN-ASSETS> (10,140,461)
<ACCUMULATED-NII-PRIOR> 0
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<AVERAGE-NET-ASSETS> 77,134,843
<PER-SHARE-NAV-BEGIN> 11.01
<PER-SHARE-NII> 0.45
<PER-SHARE-GAIN-APPREC> (0.83)
<PER-SHARE-DIVIDEND> (0.51)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.12
<EXPENSE-RATIO> 0.90%
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000859031
<NAME> MANAGED MUNICIPAL FUND CLASS A
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR END> 31-Oct-99
<PERIOD-END> 31-Oct-99
<INVESTMENTS-AT-COST> 106,401,265
<INVESTMENTS-AT-VALUE> 103,775,359
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<APPREC-INCREASE-CURRENT> (9,251,142)
<NET-CHANGE-FROM-OPS> (3,885,115)
<DISTRIBUTIONS-OF-INCOME> (1,600,162)
<DISTRIBUTIONS-OF-GAINS> 151,301
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 490,026
<NUMBER-OF-SHARES-REDEEMED> 590,051
<SHARES-REINVESTED> 92,630
<NET-CHANGE-IN-ASSETS> (3,061,760)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<GROSS-EXPENSE> 1,252,008
<AVERAGE-NET-ASSETS> 36,802,115
<PER-SHARE-NAV-BEGIN> 11.01
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</TABLE>
To the Shareholders and Board of Directors of
Managed Municipal Fund, Inc.
In planning and performing our audit of the
financial statements of Managed Municipal
Fund, Inc. (hereafter referred to as the "Fund")
for the year ended October 31, 1999, we
considered its internal control, including control
activities for safeguarding securities, in order to
determine our auditing procedures for the
purpose of expressing our opinion on the
financial statements and to comply with the
requirements of Form N-SAR, not to provide
assurance on internal control.
The management of the Fund is responsible for
establishing and maintaining internal control. In
fulfilling this responsibility, estimates and
judgments by management are required to assess
the expected benefits and related costs of
controls. Generally, controls that are relevant to
an audit pertain to the entity's objective of
preparing financial statements for external
purposes that are fairly presented in conformity
with generally accepted accounting principles.
Those controls include the safeguarding of
assets against unauthorized acquisition, use or
disposition.
Because of inherent limitations in internal
control, error or fraud may occur and not be
detected. Also, projection of any evaluation of
internal control to future periods is subject to the
risk that it may become inadequate because of
changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of internal control would not
necessarily disclose all matters in internal
control that might be material weaknesses under
standards established by the American Institute
of Certified Public Accountants. A material
weakness is a condition in which the design or
operation of one or more of the internal control
components does not reduce to a relatively low
level the risk that misstatements caused by error
or fraud in amounts that would be material in
relation to the financial statements being audited
may occur and not be detected within a timely
period by employees in the normal course of
performing their assigned functions. However,
we noted no matters involving internal control
and its operation, including controls for
safeguarding securities, that we consider to be
material weaknesses as defined above as of
October 31, 1999.
This report is intended solely for the information
and use of management, the Board of Directors
of Managed Municipal Fund, Inc., and the
Securities and Exchange Commission and is not
intended to be and should not be used by anyone
other than these specified parties.
PricewaterhouseCoopers LLP
Baltimore, Maryland
December 14, 1999
