<PAGE> PAGE 1
000 B000000 10/31/99
000 C000000 0000859031
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 Y
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 MANAGED MUNICIPAL FUND, INC.
001 B000000 811-6023
001 C000000 4108953761
002 A000000 ONE SOUTH STREET
002 B000000 BALTIMORE
002 C000000 MD
002 D010000 21202
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 INTERNATIONAL STRATEGY AND INVESTMENT, INC.
008 B000001 A
008 C000001 801-38408
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10022
010 A000001 INVESTMENT COMPANY CAPITAL CORP.
010 C010001 BALTIMORE
010 C020001 MD
010 C030001 21202
011 A000001 ICC DISTRIBUTORS, INC.
011 B000001 8-48427
011 C010001 PORTLAND
011 C020001 ME
011 C030001 04101
011 A000002 ISI GROUP, INC.
011 B000002 8-43515
011 C010002 NEW YORK
011 C020002 NY
<PAGE> PAGE 2
011 C030002 10022
012 A000001 INVESTMENT COMPANY CAPITAL CORP.
012 B000001 84-5477
012 C010001 BALTIMORE
012 C020001 MD
012 C030001 21202
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 BALTIMORE
013 B020001 MD
013 B030001 21201
015 A000001 BANKERS TRUST
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10286
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 4
019 C000000 ISIGROUPFD
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 GOLDMAN, SACHS & CO.
022 B000001 13-5108880
022 C000001 774000
022 D000001 0
022 A000002 SCOTT & STRINGFELLOW, INC.
022 B000002 54-0957557
022 C000002 3455
022 D000002 2295
022 A000003 MORGAN KEEGAN & COMPANY, INC.
022 B000003 64-0474907
022 C000003 0
022 D000003 5602
022 A000004 EVEREN SECURITIES, INC.
022 B000004 34-1542819
022 C000004 4851
022 D000004 0
022 A000005 CRAIGIE INCORPORATED
022 B000005 54-0294670
022 C000005 0
022 D000005 2990
<PAGE> PAGE 3
022 A000006 BAUM (GEORGE K.) & COMPANY
022 B000006 43-1661917
022 C000006 0
022 D000006 2668
022 A000007 LEGG MASON WOOD WALKER, INC.
022 B000007 52-0902557
022 C000007 0
022 D000007 2013
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 782306
023 D000000 15568
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 908
028 A020000 214
028 A030000 0
028 A040000 2092
028 B010000 1354
028 B020000 212
028 B030000 0
028 B040000 928
028 C010000 533
028 C020000 216
028 C030000 0
028 C040000 1587
028 D010000 290
028 D020000 221
028 D030000 0
028 D040000 1673
<PAGE> PAGE 4
028 E010000 593
028 E020000 214
028 E030000 0
028 E040000 907
028 F010000 98
028 F020000 214
028 F030000 0
028 F040000 874
028 G010000 3776
028 G020000 1291
028 G030000 0
028 G040000 8061
028 H000000 1989
029 000000 Y
030 A000000 27
030 B000000 4.50
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 10
033 000000 17
034 000000 Y
035 000000 0
036 A000000 Y
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 285
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.400
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
<PAGE> PAGE 5
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 2000
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 5.6
062 E000000 0.0
<PAGE> PAGE 6
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 93.5
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 8.7
064 A000000 N
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
<PAGE> PAGE 7
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 8306
071 B000000 16583
071 C000000 110376
071 D000000 8
072 A000000 12
072 B000000 5843
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 456
072 G000000 181
072 H000000 0
072 I000000 44
072 J000000 26
072 K000000 13
072 L000000 25
072 M000000 0
072 N000000 44
072 O000000 0
072 P000000 0
072 Q000000 57
072 R000000 30
072 S000000 71
072 T000000 285
072 U000000 0
072 V000000 0
072 W000000 20
072 X000000 1252
072 Y000000 227
072 Z000000 4818
072AA000000 548
072BB000000 0
072CC010000 0
072CC020000 9251
072DD010000 1600
072DD020000 3370
072EE000000 464
073 A010000 0.4700
073 A020000 0.4700
073 B000000 0.0400
073 C000000 0.0000
074 A000000 0
074 B000000 5852
074 C000000 0
<PAGE> PAGE 8
074 D000000 100549
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 1435
074 M000000 0
074 N000000 107836
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 3078
074 S000000 0
074 T000000 104758
074 U010000 3374
074 U020000 6974
074 V010000 10.12
074 V020000 10.12
074 W000000 0.0000
074 X000000 1565
074 Y000000 0
075 A000000 0
075 B000000 113937
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 K000000 Y
077 Q010000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 C000000 10000
081 A000000 Y
081 B000000 13
082 A000000 Y
082 B000000 100
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
<PAGE> PAGE 9
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
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 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
<RECEIVABLES> 1,435,082
<ASSETS-OTHER> 21,841
<TOTAL-ASSETS> 105,232,282
<PAYABLE-FOR-SECURITIES> 0
<OTHER-ITEMS LIABILITIES> 473,882
<TOTAL-LIABILITIES> 473,882
<PAID-IN-CAPITAL-COMMON> 34,149,466
<SHARES-COMMON-CURRENT> 3,373,894
<SHARES-COMMON-PRIOR> 3,381,290
<ACCUMULATED-NII-CURRENT> (10,935)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (2,625,906)
<NET-ASSETS> 34,149,601
<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> (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
<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 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
<ASSETS-OTHER> 21,841
<TOTAL-ASSETS> 105,232,282
<PAYABLE-FOR-SECURITIES> 0
<OTHER-ITEMS LIABILITIES> 473,882
<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
<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> 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>
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
February 1, 2000
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Commissioners:
We have read the statements made by
Managed Municipal Fund, Inc. (the Fund)
(copy attached), which we understand will
be filed with the Commission, pursuant to
Items 77K and 102J of Form N-SAR, as part
of the Fund's Form N-SAR report dated
October 31, 1999. We agree with the
statements concerning our Firm in such
Form N-SAR.
Very truly yours,
/s/ PricewaterhouseCoopers LLP
January 3, 2000
Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC 20549
Commissioners:
Changes in Fund's Certifying Accountant
Previous independent accountants:
PricewaterhouseCoopers LLP
On December 13, 1999, pursuant to the regular
meetings of the Board of Directors, the
following appointment was resolved. The Audit
and Compliance Committee and the Board of
Directors of Managed Municipal Fund, Inc. (the
Fund) participated in and approved the decision
to change the Fund's independent accountants
from PricewaterhouseCoopers LLP to Deloitte
& Touche LLP.
The reports of PricewaterhouseCoopers LLP on
the financial statements of the Fund for the past
two fiscal years contained no adverse opinion or
disclaimer of opinion and were not qualified or
modified as to uncertainty, audit scope or
accounting principle.
In connection with the Fund's audits for the two
most recent fiscal years and through December
13, 1999, there have been no disagreements with
PricewaterhouseCoopers LLP on any matter of
accounting principles or practices, financial
statement disclosure, or auditing scope or
procedure, which disagreements if not resolved
to the satisfaction of PricewaterhouseCoopers
LLP would have caused them to make reference
thereto in their report on the financial statements
for such years.
During the two most recent fiscal years and
through December 13, 1999, there have been no
reportable events (as defined in Regulation S-K
Item 304(a)(1)(v)).
Note:
The disclosure that there have been no
reportable events is optional; only a description
of reportable events, if applicable, is required.)
The Fund has requested that Deloitte & Touche
LLP furnish it with a letter addressed to the SEC
stating whether or not it agrees with the above
referenced statements. A copy of such letter,
dated February 1, 2000, is filed as an attachment
to the Fund's Form N-SAR.
New Independent Accountants: Deloitte &
Touche LLP
The Fund engaged Deloitte & Touche as its new
independent accountants as of December 13,
1999. During the two most recent fiscal years
and through December 13, 1999, the Fund has
not consulted with Deloitte & Touche LLP
regarding either (i) the application of accounting
principles to a specified transaction, either
completed or proposed; or the type of audit
opinion that might be rendered on the Fund's
financial statements, and either a written report
was provided to the Fund or oral advice was
provided that Deloitte & Touche LLP
concluded was an important factor considered
by the Fund in reaching a decision as to the
accounting, auditing, or financial reporting
issue; or (ii) any matter that was either the
subject of a disagreement, as that term is defined
in Item 304(a)(1)(iv) of Regulation S-K and the
related instructions to Item 304 of Regulation S-
K, or a reportable event, as that term is defined
in Item 304(a)(1)(v) of Regulation S-K.
Note: The disclosure that there have been no
consultations with the new accountant is
optional; only a description of consultations is
required.)
Yours truly,
Charles A. Rizzo
Vice President/Treasurer
Deutsche Asset Management
One South Street
Baltimore, MD 21202
Securities and Exchange Commission
February 1, 2000
Page 2
