<PAGE>
SEMI-ANNUAL REPORT
[GRAPHIC]
Smith Barney
Intermediate
Maturity
California
Municipals Fund
-------------------
May 31, 1996
Smith Barney Mutual Funds
[LOGO] Investing for your future.
Every day.
<PAGE>
Smith Barney Intermediate Maturity California Municipals Fund
Dear Shareholder:
We are pleased to provide you with the semi-annual report for the Smith Barney
Intermediate Maturity California Municipals Fund Inc. for the period ended May
31, 1996. The Fund's total return of -0.03% for the past six month period, was
slightly better than its peer group average total return of -0.10%, as reported
by Lipper Analytical Services Inc. (Lipper Analytical is an independent fund
tracking organization.) The Fund distributed dividends totaling $0.1978 per
share over the past six months; based on a net asset value of $8.33 as of May
31, 1996, this equates to an annualized distribution rate of 4.75%. For a
California State resident in the top combined federal and state income tax
bracket of 45.21%, the tax-free yield of 4.75% is equivalent to a taxable yield
of 8.67%.
For your convenience, we have summarized the period's prevailing economic and
market conditions and outlined the investment strategy employed by the Fund
during this time. A detailed summary of performance and current holdings for the
Fund can be found in the appropriate sections that follow in the semi-annual
report.
Market and Economic Overview
The past year has certainly been an interesting one for the municipal bond
market, characterized by low inflation, somewhat weaker U.S economic growth, and
a modest supply of new issue volume. On the surface, you would think these
conditions would result in a quiet and uneventful bond market. However, the
reality was quite different. The period from June through December 1995 saw an
extension of the year's bond market rally, while the period of January through
May 1996 witnessed a meaningful rise in interest rates and a corresponding
decline in the bond markets.
In our view, the catalyst for increased bond market volatility came primarily
from the U.S. government securities market. By the end of 1995, U.S. Treasuries
were driven to extremely low interest rate levels through purchases by foreign
central banks, leveraged hedge funds, and, in some cases, equity fund managers
seeking investment opportunities outside the stock market. Interest rates have
risen this year because many large investors gradually reversed their positions
as the 1995 year-end bond market euphoria began to fade. More recently, ten-year
municipal yields have approached 5 1/2%, and the ten-year Treasury Note is
yielding approximately 6 3/4%. This is the buying
1
<PAGE>
opportunity we've been waiting for, and we will begin to become more
aggressive at today's lower bond prices.
California Economic Highlights
Throughout 1996, the California economy has continued to show signs of solid
economic growth, especially as measured by strong state employment gains. It is
important to note that there has been a fundamental shift in employment patterns
in California. Jobs that were lost over the past six years have been replaced,
but in a surprising way. Large job layoffs in the aerospace and defense
industries were offset by significant job gains in the import, export and
transportation industries. Furthermore, business services employment such as
computer software companies has also grown significantly. California has been
able to add manufacturing jobs at a time when the U.S. has experienced a net
loss in manufacturing jobs. In our view, employment patterns in California
indicate the state now has a diversified and vibrant economy that should prove
to be beneficial for California's counties and local communities as well.
Fund Strategy Update
The Intermediate Maturity California Municipals Fund was fully invested and was
thus well-positioned for the rally that occurred in 1995. However, when the bond
market continued to rally past levels that we believed represented its maximum
upside potential, we shortened our maturities, raised cash, and became more
conservative by late fall 1995. The Fund's investment philosophy remained the
same until recently, when both taxable and tax-exempt yields retreated by more
than 1%. As we became more positive about the municipal bond market's prospects,
we lowered our cash position and emphasized more high-grade discounts than we
have in several months.
In light of encouraging economic developments within the California economy, we
have reviewed the Fund's investment strategy. Where the Fund once avoided
general obligation bonds as well as bonds that rely on state budget
appropriations to service their debt, these types of issues have begun to be
included in the Fund, assuming they meet our strict investment criteria.
However, despite the dramatic turnaround in California's economy, we still favor
revenue bonds backed by essential services such as water and sewer, and
transportation projects. Furthermore, a percentage of the Fund's portfolio is
now invested in insured securities issued by local community districts and
redevelopment agencies in California. As of May 31, 1996, approximately 97% of
the Fund's portfolio was rated investment grade (BBB/Baa and higher) by either
Standard and Poor's Corporation or Moody's Investors Service, Inc. (Standard and
Poor's and Moody's are two major credit reporting and bond rating agencies.) The
average weighted maturity of the Fund was just over 7 years.
2
<PAGE>
In closing, we believe many investors may have become too pessimistic about the
municipal bond market's prospects over the near term. If the economic and
inflation numbers stay moderate, we expect a gradual decline in intermediate
term interest rates from today's levels. Because of our expectations, we believe
todays municipal bond market represents fair value, and the second half of 1996
should be a more positive environment for municipal bond investors than 1996 has
been so far.
Thank you for investing in the Intermediate Maturity California Municipals Fund.
We look forward to continuing to help you achieve your financial goals.
Sincerely,
/s/ HEATH B. MCLENDON /s/ J. P. DEANE
Heath B. McLendon Joseph P. Deane
Chairman and Chief Vice President and
Executive Officer Investment Officer
July 12, 1996
3
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Smith Barney
Intermediate Maturity California Municipals Fund
Historical Performance--Class A Shares
<TABLE>
<CAPTION>
Net Asset Value
---------------------
Beginning End Income Capital Total
Period Ended of Period of Period Dividends Gains Returns(1)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
5/31/96 $ 8.53 $8.33 $0.20 $0.00 (0.03)%+
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 7.80 8.53 0.40 0.00 14.85
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/94 8.50 7.80 0.39 0.01 (3.65)
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/93 8.04 8.50 0.39 0.00 10.70
- ------------------------------------------------------------------------------------------------------------------------------------
Inception* - 11/30/92 7.90 8.04 0.35 0.00 6.33+
====================================================================================================================================
Total $1.73 $0.01
====================================================================================================================================
Historical Performance--Class C Shares
Net Asset Value
---------------------
Beginning End Income Capital Total
Period Ended of Period of Period Dividends Gains Returns(1)
====================================================================================================================================
5/31/96 $8.52 $8.33 $0.19 $0.00 (0.14)%+
- ------------------------------------------------------------------------------------------------------------------------------------
11/30/95 7.80 8.52 0.38 0.00 14.36
- ------------------------------------------------------------------------------------------------------------------------------------
Inception* - 11/30/94 7.76 7.80 0.02 0.00 0.72+
====================================================================================================================================
Total $0.59 $0.00
====================================================================================================================================
Historical Performance Class Y Shares
Net Asset Value
---------------------
Beginning End Income Capital Total
Period Ended of Period of Period Dividends Gains Returns(1)+
====================================================================================================================================
5/31/96 $8.54 $8.34 $0.20 $0.00 0.04%
- ------------------------------------------------------------------------------------------------------------------------------------
Inception* - 11/30/95 8.39 8.54 0.09 0.00 2.92
====================================================================================================================================
Total $0.29 $0.00
====================================================================================================================================
</TABLE>
It is the Fund's policy to distribute dividends monthly and capital
gains, if any, annually.
4
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Average Annual Total Return
<TABLE>
<CAPTION>
Without Sales Charge(1)
------------------------------
Class A Class C Class Y
====================================================================================================================================
<S> <C> <C> <C>
Six Months Ended 5/31/96+ (0.03)% (0.14)% 0.04%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31/96 4.95 4.56 N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Inception* through 5/31/96 6.16 9.38 2.97
====================================================================================================================================
With Sales Charge(2)
------------------------------
Class A Class C Class Y
====================================================================================================================================
Six Months Ended 5/31/96+ (1.99)% (1.11)% 0.04%
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31/96 2.85 3.56 N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Inception* through 5/31/96 5.67 9.38 2.97
====================================================================================================================================
Cumulative Total Return
Without Sales Charge(1)
====================================================================================================================================
Class A (Inception* through 5/31/96) 30.20%
- ------------------------------------------------------------------------------------------------------------------------------------
Class C (Inception* through 5/31/96) 15.03
- ------------------------------------------------------------------------------------------------------------------------------------
Class Y (Inception* through 5/31/96) 2.97
====================================================================================================================================
</TABLE>
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect deduction of the applicable
sales charge with respect to Class A shares or the applicable contingent
deferred sales charges ("CDSC") with respect to Class C shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class A shares reflect the deduction
of the maximum initial sales charge of 2.00% and Class C shares reflect the
deduction of a 1.00% CDSC, which applies if shares are redeemed within one
year from initial purchase.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
* Inception dates for Class A, C and Y shares are December 31, 1991,
November 8, 1994 and September 8, 1995, respectively.
5
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Historical Performance (unaudited)
Growth of $10,000 Invested in Class A Shares of the
Smith Barney Intermediate Maturity California Municipals Fund
vs. Lehman Brothers 10-Year Municipal Bond Index
and Lipper Analytical Services, Inc. Peer Group Average+
- --------------------------------------------------------------------------------
December 1991 -- May 1996
[CHART APPEARS HERE]
+ Hypothetical illustration of $10,000 invested in Class A shares at inception
on December 31, 1991, assuming deduction of the maximum 2.00% sales charge at
the time of investment and reinvestment of dividends and capital gains, if
any, at net asset value through May 31, 1996. The Lehman Brothers 10-Year
Municipal Bond Index ("Index") is a broad-based index which includes about
5,200 bonds totaling approximately $63 billion in market capitalization. The
Lipper Analytical Services, Inc. Peer Group Average is composed of an average
of the Fund's peer group of mutual funds (32 funds as of May 31, 1996)
investing in intermediate maturity California tax-exempt bonds. 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.
6
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Portfolio Highlights (unaudited) May 31, 1996
Industry Breakdown
[PIE CHART APPEARS HERE]
Summary of Investments by Combined Ratings
Standard & Percentage of
Moody's and/or Poor's Total Investments
- -------------------------------------------------------------------------------
Aaa AAA 33.0%
Aa AA 15.1
A A 29.3
Baa BBB 22.2
VMIG 1 A-1 0.4
------
100.0%
------
7
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Schedule of Investments (unaudited) May 31, 1996
FACE
AMOUNT RATING SECURITY VALUE
================================================================================
Education--8.9%
California Educational Facilities Authority,
Revenue Bonds:
$ 945,000 AAA College of Osteopathic Medicine, 5.550%
due 6/1/06 $ 943,819
320,000 A1* Loyola Marymount University, Series B,
6.300% due 10/1/03 341,200
200,000 A* Mills College, 6.500% due 9/1/02 214,000
500,000 AA University of Southern California, 5.300%
due 10/1/04 506,250
285,000 AAA Kern High School District, Series C,
MBIA-Insured, 8.750% due 8/1/03 350,550
- --------------------------------------------------------------------------------
2,355,819
- --------------------------------------------------------------------------------
General Obligation--0.8%
200,000 A California State GO, 6.000% due 9/1/03 211,000
- --------------------------------------------------------------------------------
Hospital--16.7%
355,000 AAA Arlington Community Hospital Corp., Parkview
Community Hospital First Mortgage Revenue,
(Escrowed to Maturity with U.S.
Government Securities), 8.000% due 6/1/04(a) 393,606
California Health Facilities, Financing
200,000 AAA Authority: Adventist Health System/West Agency,
Series B, MBIA-Insured, 6.150% due 3/1/99 208,250
1,000,000 AAA Mills-Peninsula, CONNIE LEE-Insured, 5.300%
due 1/15/05 988,750
200,000 AA- Sisters of Providence, 6.200% due 10/1/03 211,500
400,000 AAA St. Elizabeth's Hospital Project, (Escrowed
with U.S. Government Securities to 11/5/02
Call @ 102), 5.900% due 11/15/03(a) 427,500
1,200,000 AA California Statewide Community Development
COP, St. Joseph's Health, 5.875% due 7/1/05 1,248,000
345,000 AAA City of Marysville Hospital Revenue Refunding
Bonds, The Fremont-Rideout Health Group 1993
Series A, AMBAC-Insured, 5.100% due 1/1/03(b) 346,725
250,000 A+ Riverside County Asset Leasing Corp., Leasehold
Revenue, Riverside County Hospital (Project A),
6.000% due 6/1/04 255,313
See Notes to Financial Statements.
8
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Schedule of Investments (unaudited)(continued) May 31, 1996
FACE
AMOUNT RATING SECURITY VALUE
================================================================================
Hospital--16.7% (continued)
$ 310,000 BBB Valley Health Systems COP, (Refunding Project),
6.250% due 5/15/99 $ 311,550
- --------------------------------------------------------------------------------
4,391,194
- --------------------------------------------------------------------------------
Housing--9.7%
California Housing Finance Agency Revenue,
Home Mortgage:
5,000 AA- Single-Family Housing Revenue, Series A,
10.000% due 2/1/02 5,007
290,000 AA- Series B1, 5.900% due 8/1/04(c) 296,162
700,000 AA- Series E1, 5.900% due 2/1/05(c) 723,625
700,000 AA- Series E1, 5.900% due 8/1/05 725,375
510,000 AAA City of Santa Rosa Mortgage Revenue Refunding,
(Marlow Apartments Project), FHA-Insured,
5.600% due 9/1/05 504,263
300,000 AAA San Luis Obispo HFA, Multi-Family Housing
Revenue, (Parkwood Apartments Project),
Series A, FNMA-Collateralized, 5.500%
due 8/1/03 300,375
- --------------------------------------------------------------------------------
2,554,807
- --------------------------------------------------------------------------------
Miscellaneous--18.4%
1,200,000 BBB Fresno Joint Powers Financing Authority, Series A,
5.750% due 9/2/98 1,197,000
Irvine Ranch Water District, Joint
Powers Agency,
Local Pool Revenue, Issue II:
800,000 A+ 7.200% due 8/15/96 803,120
480,000 A+ 7.800% due 8/15/01 508,800
345,000 A Mendocino County Public Facilities Authority
Corp., COP 1993, 5.500% due 8/15/03 338,100
155,000 Aaa* Montclair Redevelopment Agency, Residential
Mortgage Revenue, (Escrowed to Maturity with
U.S. Government Securities), 7.750%
due 10/1/11(a) 180,381
San Francisco Downtown Parking, Series R:
450,000 A* 6.000% due 4/1/02 464,625
280,000 A* 6.150% due 4/1/03 290,850
Santa Barbara COP, (Harbor Refunding Project):
270,000 A* 6.400% due 10/1/02 283,838
285,000 A* 6.500% due 10/1/03 300,675
See Notes to Financial Statements.
9
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Schedule of Investments (unaudited)(continued) May 31, 1996
FACE
AMOUNT RATING SECURITY VALUE
================================================================================
Miscellaneous--18.4% (continued)
$ 265,000 AA- Simi Valley Community Development Agency
COP, Simi Valley Business Center, Guaranty
Agreement with New England Mutual Life,
6.050% mandatory put 10/1/99 $ 273,281
205,000 AAA Upland COP, (Police Building Refunding Project),
AMBAC-Insured, 6.200% due 8/1/02 219,350
- --------------------------------------------------------------------------------
4,860,020
- --------------------------------------------------------------------------------
Short-Term(d)--0.4%
100,000 P-1* California PCFA, Series A, 3.950% due 6/1/17 100,000
- --------------------------------------------------------------------------------
Solid Waste--9.5%
Kings County Waste Management, Solid Waste
Revenue Bonds:
400,000 BBB+ 6.500% due 10/1/03 420,500
310,000 BBB+ 6.600% due 10/1/04 326,662
795,000 A* Redding Joint Powers Financing Authority,
Solid Waste and Corporate Yard Revenue Bonds,
Series A, 5.000% due 1/1/04 748,294
1,000,000 Baa1 South Nappa Solid Waste Management Authority,
6.000% due 02/15/04 1,011,250
- --------------------------------------------------------------------------------
2,506,706
- --------------------------------------------------------------------------------
Tax Allocation--16.1%
855,000 A Garden Grove Agency Tax Allocation Revenue,
(Garden Grove Community Project), 5.375%
due 10/1/03 847,519
1,000,000 Baa* Hawthorne Community Redevelopment Agency,
(Tax Allocation Redevelopment Project, Area 2),
6.200% due 9/1/05 1,018,750
630,000 AAA Lynwood Redevelopment Agency Tax Allocation,
(Project Area A), AMBAC-Insured, 5.125%
due 7/1/03 633,937
Orange County Development Agency Tax Allocation,
(Santa Anna Heights Project):
500,000 BBB 5.500% due 9/1/00 493,125
500,000 BBB 5.600% due 9/1/01 491,875
See Notes to Financial Statements.
10
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Schedule of Investments (unaudited)(continued) May 31, 1996
FACE
AMOUNT RATING SECURITY VALUE
================================================================================
Tax Allocation -- 16.1% (continued)
$ 750,000 A- Paramount Redevelopment Agency Tax Allocation
Refunding, (Redevelopment Project Area No. 1),
5.800% due 8/1/03 $ 765,000
- --------------------------------------------------------------------------------
4,250,206
- --------------------------------------------------------------------------------
Transportation -- 13.6%
500,000 A1* Los Angeles County, Transportation Commission
COP, Series B, 6.200% due 7/1/03 526,875
Palm Springs Financing Authority, Airport Revenue,
Palm Springs Regional Airport, MBIA-Insured:
200,000 AAA 5.400% due 1/1/03 204,250
400,000 AAA 5.500% due 1/1/04 409,500
350,000 A1* Sacramento Regional Transportation COP, Series A,
6.400% due 3/1/03 371,875
240,000 AAA San Francisco Airport Improvement Corp., Lease
Revenue, (Escrowed to Maturity with
U.S. Goverment Securities), 8.000%
due 7/1/13(a) 285,300
San Jose, Airport Revenue:
500,000 AAA MBIA-Insured, 5.750% due 3/1/03 520,625
800,000 AAA Series 93, FGIC-Insured, 5.400% due 3/1/04(c) 806,000
450,000 A- Southern California Rapid Transit Authority,
District A2, Special Benefit Assessment,
6.100% due 9/1/03 465,187
- --------------------------------------------------------------------------------
3,589,612
- --------------------------------------------------------------------------------
Water & Sewer -- 5.9%
1,000,000 AAA El Dorado, CA Irrigation, FGIC-Insured,
5.200% due 2/15/07 978,750
Mojave, Water District, California Improvement
District, Morongo Basin:
250,000 BBB+ 6.250% due 9/1/02 268,750
280,000 BBB+ 6.375% due 9/1/03 306,250
- --------------------------------------------------------------------------------
1,553,750
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100%
(Cost--$25,763,056*) $26,373,114
- --------------------------------------------------------------------------------
(a) Pre-Refunded bonds escrowed by U.S. Government Securities and bonds
escrowed to maturity by U.S. Government Securities are considered by the
investment adviser to be triple-A rated even if issuer has not applied for
new ratings.
See Notes to Financial Statements.
11
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
- --------------------------------------------------------------------------------
|Schedule of Investments (unaudited) (continued) May 31, 1996|
- --------------------------------------------------------------------------------
(b) Securities segregated by Custodian for open purchase commitment.
(c) Income from these issues is considered a preference item for purposes of
calculating the alternative minimum tax.
(d) Variable rate obligations payable at par on demand at any time on no more
than seven days notice.
* Aggregate cost for Federal income tax purposes is substantially the same.
+ Fitch Investors Services, Inc.
See below and page 13 for definitions of ratings and certain security
descriptions.
- --------------------------------------------------------------------------------
|Bond Ratings |
- --------------------------------------------------------------------------------
All ratings are by Standard & Poors Corporation ("Standard & Poor's"), except
those identified by an asterisk (*) are rated by Moodys Investors Services
("Moody's"). The definitions of the applicable rating symbols are set forth
below:
Standard & Poor's -- Ratings from "AA" to "BBB" 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.
Moody's -- Numerical modifiers 1, 2 and 3 may be applied to each generic rating
from "Aa" to "Baa", 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
See Notes to Financial Statements.
12
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Bond Ratings (continued)
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.
NR -- Indicates that the bond is not rated by Standard & Poor's or Moody's.
Short-Term Securities Ratings
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 -- Moodys highest rating for commercial paper and for VRDO prior to the
advent of the VMIG 1 rating.
Security Descriptions
ABAG -- Association of Bay Area Governments
AIG -- American International Guaranty
AMBAC -- American Municipal Bond Assurance Corporation
BIG -- Bond Investors Guaranty
CGIC -- Capital Guaranty Insurance Company
CONNIE LEE -- College Construction Loan Insurance Association
COP -- Certificate of Participation
EDA -- Economic Development Authority
FLAIRS -- 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 -- Federal Savings Association
GIC -- Guaranteed Investment Contract
GNMA -- Government National Mortgage Association
GO -- General Obligation
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
PCFA -- Pollution Control Financing Authority
PCR -- Pollution Control Revenue
RIBS -- Residual Interest Bonds
VA -- Veterans Administration
VRDD -- Variable Rate Daily Demand
VRWE -- Variable Rate Wednesday Demand
13
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Statement of Assets and Liabilities (unaudited) May 31, 1996
ASSETS:
Investments, at value (Cost -- $25,763,056) $26,373,114
Cash 83,819
Interest receivable 446,042
Receivable for securities sold 50,000
Deferred organization costs 7,025
Other assets 70,857
- --------------------------------------------------------------------------------
Total Assets 27,030,857
- --------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 109,581
Distribution fees payable 3,790
Investment advisory fees payable 2,061
Administration fees payable 1,177
Accrued expenses 17,423
- --------------------------------------------------------------------------------
Total Liabilities 134,032
- --------------------------------------------------------------------------------
Total Net Assets $26,896,825
================================================================================
NET ASSETS:
Par value of shares of beneficial interest $ 3,230
Capital paid in excess of par value 27,295,019
Undistributed net investment income 136
Accumulated net realized loss on security transactions (1,011,618)
Net unrealized appreciation of investments 610,058
- --------------------------------------------------------------------------------
Total Net Assets $26,896,825
================================================================================
Shares Outstanding:
Class A 2,911,535
- --------------------------------------------------------------------------------
Class C 287,461
- --------------------------------------------------------------------------------
Class Y 31,196
- --------------------------------------------------------------------------------
Net Asset Value:
Class A (and redemption price) $8.33
- --------------------------------------------------------------------------------
Class C* $8.32
- --------------------------------------------------------------------------------
Class Y (and redemption price) $8.34
- --------------------------------------------------------------------------------
Class A Maximum Public Offering Price Per Share
(net asset value plus 2.04% of net asset value per share) $8.50
================================================================================
* Redemption price is NAV of Class C shares reduced by a 1.00% CDSC if shares
are redeemed within the first year of purchase.
See Notes to Financial Statements.
14
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Statement of Operations (unaudited) For the Six Months Ended May 31, 1996
INVESTMENT INCOME:
Interest $ 766,782
- --------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees (Note 3) 42,476
Administration fees (Note 3) 28,318
Distribution fees (Note 3) 23,344
Registration fees 15,041
Audit and legal 13,036
Shareholder communications 10,027
Shareholder and system servicing fees 8,916
Trustees' fees 6,518
Amortization of deferred organization costs 6,021
Pricing service fees 3,610
Custody 1,003
Other 5,062
- --------------------------------------------------------------------------------
Total Expenses 163,372
Less: Investment advisory and administration fee waiver (Note 3) (50,972)
- --------------------------------------------------------------------------------
Net Expenses 112,400
- --------------------------------------------------------------------------------
Net Investment Income 654,382
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS (NOTE 5):
Realized Loss From Security Transactions
(excluding short-term securities):
Proceeds from sales 1,126,572
Cost of securities sold 1,130,156
- --------------------------------------------------------------------------------
Net Realized Loss (3,584)
- --------------------------------------------------------------------------------
Net Change in Unrealized Appreciation of Investments:
Beginning of period 1,288,203
End of period 610,058
- --------------------------------------------------------------------------------
Decrease in Net Unrealized Appreciation (678,145)
- --------------------------------------------------------------------------------
Net Loss on Investments (681,729)
- --------------------------------------------------------------------------------
Decrease in Net Assets From Operations $ (27,347)
================================================================================
See Notes to Financial Statements.
15
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Statements of Changes in Net Assets
For the Six Months Ended May 31, 1996 (unaudited)
and the Year Ended November 30, 1995
<TABLE>
<CAPTION>
1996 1995
====================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income $ 654,382 $ 1,233,544
Net realized loss (3,584) (71,029)
Increase (decrease) in net unrealized appreciation (678,145) 2,337,768
- ------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations (27,347) 3,500,283
- ------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM (NOTE 4):
Net investment income (654,246) (1,233,544)
- ------------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (654,246) (1,233,544)
- ------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares 2,985,081 2,161,490
Net asset value of shares issued in connection
with the transfer of the Smith Barney Muni
Funds: California Limited Term Portfolios
net assets (Note 8) 6,851,373
Net asset value of shares issued for
reinvestment of dividends 383,744 901,975
Cost of shares reacquired (4,516,108) (8,859,955)
- ------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Fund Share Transactions (1,147,283) 1,054,883
- ------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets (1,828,876) 3,321,622
NET ASSETS:
Beginning of period 28,725,701 25,404,079
- ------------------------------------------------------------------------------------
End of period* $26,896,825 $28,725,701
====================================================================================
* Includes undistributed net investment income of: $ 136 --
====================================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Notes to Financial Statements (unaudited)
1. Significant Accounting Policies
Smith Barney Intermediate Maturity California Municipals Fund ("Fund") is a
separate investment fund of the Smith Barney Investment Trust ("Trust"). The
Trust, a Massachusetts business trust, is registered under the Investment
Company Act of 1940, as amended, as a non-diversified, open-end management
investment company and consists of this Fund and one other separate investment
fund, the Smith Barney Intermediate Maturity New York Municipals Fund. The
financial statements and financial highlights for the other fund is presented in
a separate semi-annual report.
The significant accounting policies consistently followed by the
Fund are: (a) security transactions are accounted for on the trade date; (b)
securities are valued at the mean between the quoted bid and asked prices by an
independent pricing service that are based on transactions in municipal
obligations, quotations from municipal bond dealers, market transactions in
comparable securities and various relationships between securities; (c)
securities maturing within 60 days or less are valued at cost plus accreted
discount, or minus amortized premium, as applicable, which approximates value;
(d) gains or losses on the sale of securities are calculated by using the
specific identification method; (e) interest income, adjusted for amortization
of premium and accretion of original issue discount, is recorded on the accrual
basis; market discount is recognized upon the disposition of the security; (f)
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; (g) 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; (h) in accordance with Statement of
Position 93-2, Determination, Disclosure, and Financial Statement Presentation
---------------------------------------------------------------
of Income, Capital Gain, and Return of Capital Distributions by Investment
- --------------------------------------------------------------------------
Companies, book and tax basis differences relating to shareholder distributions
- ---------
and other permanent book and tax differences are reclassified to paid-in
capital. As of November 30, 1995, the cumulative effect of such differences,
totaling $186, was reclassified to paid-in capital from overdistribution of
realized gains. Net investment income, net realized gains, and net assets
17
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Notes to Financial Statements (unaudited) (continued)
were not affected by this change; and (i) 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.
In addition, organization costs have been deferred and are being amortized
on a straight line basis over a five-year period, beginning with the
commencement of the Fund's operations in December 1991.
2. Portfolio Concentration
Since the Fund invests primarily in obligations of issuers within
California, it is subject to possible concentration risks associated with
economic, political, or legal developments or industrial or regional matters
specifically affecting California.
3. Investment Advisory Agreement, Administration
Agreement and Other Transactions
Smith Barney Mutual Funds Management Inc. ("SBMFM"), a subsidiary of Smith
Barney Holdings Inc. ("SBH"), acts as investment adviser to the Fund. The Fund
pays SBMFM 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. For the six
months ended May 31, 1996, SBMFM waived $29,875 of its investment advisory fee.
SBMFM also acts as the Fund's administrator for which the Fund pays a fee
calculated at the annual rate of 0.20% of the average daily net assets. This fee
is calculated daily and paid monthly. For the six months ended May 31, 1996,
SBMFM waived $21,097 of its administration fee.
Smith Barney Inc. ("SB"), another subsidiary of SBH, acts as distributor of
Fund shares. For the six months ended May 31, 1996, SB received sales charges of
approximately $27,000 on sales of the Fund's Class A shares.
18
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Notes to Financial Statements (unaudited) (continued)
Pursuant to a Distribution Plan, the Fund pays a service fee with respect
to its Class A and C shares, calculated at the annual rate of 0.15% of the
average daily net assets for each class. In addition, the Fund pays a
distribution fee with respect to its Class C shares calculated at the annual
rate of 0.20%.
All officers and one Trustee of the Fund are employees of SB.
4. Exempt-Interest Dividends and Other Distributions
The Fund intends to satisfy conditions that will enable interest from
municipal securities, which is exempt from 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.
5. Investments
For the six months ended May 31, 1996, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding short-
term investments) were as follows:
================================================================================
Purchases $ 991,760
- --------------------------------------------------------------------------------
Sales 1,130,156
================================================================================
At May 31, 1996, the net unrealized appreciation of investments for Federal
income tax purposes consisted of the following:
================================================================================
Gross unrealized appreciation $699,738
Gross unrealized depreciation (89,680)
- --------------------------------------------------------------------------------
Net unrealized appreciation $610,058
================================================================================
6. Capital Loss Carryforwards
At November 30, 1995, the Fund had for Federal tax purposes approximately
$1,008,000 of capital loss carryforwards available, subject to certain
limitations, 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.
19
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Notes to Financial Statements (unaudited) (continued)
The amount and year of expiration for each carryforward loss is indicated
below:
11/30/02 11/30/03
================================================================================
Capital Loss Carryforwards $739,000 $269,000
================================================================================
7. Shares of Beneficial Interest
As of May 31, 1996, the Fund had an unlimited number of shares of
beneficial interest 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 May 31, 1996, total paid-in capital amounted to
the following for each class:
<TABLE>
<CAPTION>
Class A Class C Class Y
======================================================================================================
<S> <C> <C> <C>
Total Paid-in Capital $24,648,458 $ 2,427,114 $ 222,677
======================================================================================================
</TABLE>
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
May 31, 1996 November 30, 1995
-------------------- ---------------------
Shares Amount Shares Amount
=================================================================================================================
<S> <C> <C> <C> <C>
Class A
Shares sold 304,330 $ 2,593,047 200,184 $ 1,627,590
Net assets of shares issued
in connection with
transfer of the Smith Barney
Muni Funds: California
Limited Term Portfolios
net assets (Note 8) -- -- 558,469 4,685,557
Shares issued on
reinvestment 40,929 346,626 107,116 875,765
Shares redeemed (505,681) (4,286,430) (1,046,887) (8,539,501)
- ------------------------------------------------------------------------------------------------------------------
Net Decrease (160,422) $(1,346,757) (181,118) $(1,350,589)
==================================================================================================================
</TABLE>
20
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Notes to Financial Statements (unaudited) (continued)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
May 31, 1996 November 30, 1995
--------------------- ----------------------
Shares Amount Shares Amount
==================================================================================================================
<S> <C> <C> <C> <C>
Class C
Shares sold 46,435 $ 392,034 65,405 $ 533,900
Net assets of shares issued
in connection with
transfer of the Smith Barney
Muni Funds: California
Limited Term Portfolios
net assets (Note 8) -- -- 193,073 1,616,289
Shares issued on
reinvestment 3,770 31,905 2,539 21,251
Shares redeemed (27,128) (229,678) (2,432) (20,454)
- ------------------------------------------------------------------------------------------------------------------
Net Increase 23,077 $ 194,261 258,585 $ 2,150,986
==================================================================================================================
Class Y
Shares sold -- $ -- -- $ --
Net assets of shares issued
in connection with
transfer of the Smith Barney
Muni Funds: California
Limited Term Portfolios
net assets (Note 8) -- -- 65,496 549,527
Shares issued on
reinvestment 615 5,213 588 4,959
Shares redeemed (35,503) (300,000)
- ------------------------------------------------------------------------------------------------------------------
Net Increase 615 $ 5,213 30,581 $ 254,486
==================================================================================================================
</TABLE>
21
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Notes to Financial Statements (unaudited) (continued)
8. Transfer of Net Assets
On September 8, 1995, the Fund acquired the net assets and certain
liabilities of the Smith Barney Muni Funds: California Limited Term Portfolio
("California Limited Term") pursuant to a plan of reorganization approved by
California Limited Term shareholders on August 28, 1995. Total shares issued by
the Fund and the total net assets of California Limited Term and the Fund on the
date of the transfer were:
Total Net
Shares Assets of Total Net
Issued by Acquired Assets of
Acquired Portfolio the Fund Portfolio the Fund
==============================================================
California Limited Term 817,038 $6,851,373 $23,045,761
==============================================================
The total net assets of California Limited Term before the acquisition
included unrealized appreciation of $155,851 and a net realized loss of
$181,719. The total net assets of Intermediate Maturity California Municipals
Fund immediately after the acquisition were $29,897,134. The transaction was
structured for tax purposes to qualify as a tax-free reorganization under the
Internal Revenue Code of 1986, as amended.
22
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Financial Highlights
For a share of each class of beneficial interest outstanding throughout each
period:
<TABLE>
<CAPTION>
Class A Shares 1996(1) 1995 1994 1993 1992(2)
========================================================================================
Net Asset Value, Beginning
<S> <C> <C> <C> <C> <C>
of Period $ 8.53 $ 7.80 $ 8.50 $ 8.04 $ 7.90
- ----------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (3) 0.20 0.40 0.39 0.39 0.35
Net realized and unrealized
gain (loss) (0.20) 0.73 (0.69) 0.46 0.14
- ----------------------------------------------------------------------------------------
Total Income (Loss)
From Operations 0.00 1.13 (0.30) 0.85 0.49
- ----------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.20) (0.40) (0.39) (0.39) (0.35)
Net realized gains -- -- (0.01) -- --
- ----------------------------------------------------------------------------------------
Total Distributions (0.20) (0.40) (0.40) (0.39) (0.35)
- ----------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.33 $ 8.53 $ 7.80 $ 8.50 $ 8.04
- ----------------------------------------------------------------------------------------
Total Return (0.03)%++ 14.85% (3.65)% 10.70% 6.33%++
- ----------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $24,246 $26,211 $25,359 $32,514 $10,667
- ----------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses (3) 0.78%+ 0.75% 0.75% 0.72% 0.65%+
Net investment income 4.65+ 4.89 4.73 4.45 4.81+
- ----------------------------------------------------------------------------------------
Portfolio Turnover Rate 4% 8% 39% 16% 46%
========================================================================================
</TABLE>
(1) For the six months ended May 31, 1996 (unaudited).
(2) For the period from December 31, 1991 (inception date) to November 30,
1992.
(3) The investment adviser has waived all or part of its fees for the six
months ended May 31, 1996, the three years ended November 30, 1995 and the
period ended November 30, 1992. If such fees were not waived, the per share
decreases in net investment income and the expense ratios would have been
as follows:
<TABLE>
<CAPTION>
Per Share Decreases Expense Ratios
in Net Investment Income Without Fee Waivers
-------------------------------------- ---------------------------------------
1996 1995 1994 1993 1992 1996 1995 1994 1993 1992
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A $0.02 $0.03 $0.04 $0.07 $0.11 1.14%+ 1.16% 1.24% 1.49% 2.18%+
</TABLE>
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
23
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Financial Highlights (continued)
For a share of each class of beneficial interest outstanding throughout each
period:
Class C Shares 1996(1) 1995 1994(2)
==============================================================================
Net Asset Value, Beginning of Period $ 8.52 $7.80 $7.76
- ------------------------------------------------------------------------------
Income From Operations:
Net investment income (3) 0.19 0.38 0.01
Net realized and unrealized gain (loss) (0.19) 0.72 0.05**
- ------------------------------------------------------------------------------
Total Income From Operations 0.00 1.10 0.06
- ------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.19) (0.38) (0.02)
- ------------------------------------------------------------------------------
Total Distributions (0.19) (0.38) (0.02)
- ------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.33 $8.52 $7.80
- ------------------------------------------------------------------------------
Total Return (0.14)%++ 14.36% 0.72%++
- ------------------------------------------------------------------------------
Net Assets, End of Period (000s) $2,391 $2,254 $45
- ------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses (3) 0.99%+ 0.98% 0.95%+
Net investment income 4.44+ 4.54 4.53+
- ------------------------------------------------------------------------------
Portfolio Turnover Rate 4% 8% 39%
==============================================================================
(1) For the six months ended May 31, 1996 (unaudited).
(2) For the period from November 8, 1994 (inception date) to November 30, 1994.
(3) The investment adviser has waived a part of its fees for the six months
ended May 31, 1996, the year ended November 30, 1995, and the period ended
November 30, 1994. If such fees were not waived, the per share decreases in
net investment income and the expense ratios would have been as follows:
<TABLE>
<CAPTION>
Per Share Decreases Expense Ratios
in Net Investment Income Without Fee Waivers
------------------------ -------------------
1996 1995 1994 1996 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Class C $0.02 $0.03 0.00* 1.36% 1.39% 1.44%+
</TABLE>
* Amount represents less than $0.01 per share.
** The amount in this caption for each share outstanding throughout the period
may not accord with the change in aggregate gains and losses in the
portfolio securities for the period because of the timing of purchases and
withdrawals of shares in relation to the fluctuating market values of the
portfolio.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
24
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Financial Highlights (continued)
For a share of each class of beneficial interest outstanding throughout each
period:
Class Y Shares 1996(1) 1995(2)
==============================================================================
Net Asset Value, Beginning of Period $ 8.54 $ 8.39
- ------------------------------------------------------------------------------
Income From Operations:
Net investment income (3) 0.20 0.09
Net realized and unrealized gain (loss) (0.20) 0.15
- ------------------------------------------------------------------------------
Total Income From Operations 0.00 0.24
- ------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.20) (0.09)
- ------------------------------------------------------------------------------
Total Distributions (0.20) (0.09)
- ------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.34 $ 8.54
- ------------------------------------------------------------------------------
Total Return++ 0.04 2.92%
- ------------------------------------------------------------------------------
Net Assets, End of Period (000s) $ 260 $ 261
- ------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses (3) 0.60%+ 0.58%
Net investment income 4.83 4.74
- ------------------------------------------------------------------------------
Portfolio Turnover Rate 4% 8%
==============================================================================
(1) For the six months ended May 31, 1996 (unaudited).
(2) For the period from September 8, 1995 (inception date) to November 30,
1995.
(3) The investment adviser has waived a part of its fees for the six months
ended May 31, 1996 and the period ended November 30, 1995. If such fees
were not waived, the per share decrease in net investment income and the
expense ratios would have been as follows:
Per Share Decrease Expense Ratio
in Net Investment Income Without Fee Waiver
------------------------ ------------------
1996 1995 1996 1995
---- ---- ---- ----
Class Y $0.02 $0.03 0.97%+ 0.99%+
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
25
<PAGE>
Smith Barney
Intermediate Maturity California Municipals Fund
Additional Information
Change in Independent Auditor: On October 19, 1994, based upon the
recommendation of the Audit Committee of the Fund, the Board of Trustees
determined not to retain Coopers & Lybrand L.L.P ("Coopers & Lybrand") as the
Fund's independent auditor and voted to appoint KPMG Peat Marwick LLP. During
the Fund's two most recent fiscal years, Coopers & Lybrand's audit reports
contained no adverse opinion or disclaimer of opinion; nor were the reports
qualified or modified as to uncertainty, audit scope, or accounting principles.
Further, during this same period there were no disagreements with Coopers &
Lybrand 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 Coopers & Lybrand, would have caused it to make reference
to the subject matter of such disagreements in connection with its audit
reports. The Fund has requested Coopers & Lybrand to provide a letter to the
Securities and Exchange Commission stating whether Coopers & Lybrand agrees with
the foregoing statements, and to provide the Fund with a copy of such letter. A
copy of this letter is available upon request by calling the Fund at (212) 723-
9218.
26
<PAGE>
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<PAGE>
[This page intentionally left blank]
<PAGE>
SMITH BARNEY
INTERMEDIATE
MATURITY
CALIFORNIA
MUNICIPALS
FUND
TRUSTEES
Herbert Barg
Alfred J. Bianchetti
Martin Brody
Dwight B. Crane
Burt N. Dorsett
Elliot S. Jaffe
Stephen E. Kaufman
Joseph J. McCann
Heath B. McLendon, Chairman
Cornelius C. Rose, Jr.
OFFICERS
Heath B. McLendon
Chairman of the Board and
Investment Officer
Jessica M. Bibliowicz
President
Lewis E. Daidone
Senior Vice President
and Treasurer
Joseph P. Deane
Vice President
and Investment Officer
Thomas M. Reynolds
Controller
Christina T. Sydor
Secretary
INVESTMENT ADVISER AND ADMINISTRATOR
Smith Barney Mutual Funds
Management Inc.
DISTRIBUTOR
Smith Barney Inc.
CUSTODIAN
PNC Bank, N.A.
SHAREHOLDER
SERVICING AGENT
First Data Investor Services Group, Inc.
P.O. Box 9134
Boston, MA 02205-9134
This report is submitted for the general information of the shareholders of
Smith Barney Intermediate Maturity California Municipals Fund. It is not
authorized for distribution to prospective investors unless accompanied or
preceded by a current Prospectus for the Fund, which contains information
concerning the Fund's investment policies and expenses as well as other
pertinent information.
SMITH BARNEY
INTERMEDIATE MATURITY
CALIFORNIA
MUNICIPALS FUND
388 Greenwich Street
New York, New York 10013
FD2400 7/96
<PAGE>
SEMI-ANNUAL REPORT
Smith Barney
Intermediate
Maturity
New York
Municipals
Fund
- ---------------------------------
May 31, 1996
[LOGO] Smith Barney Mutual Funds
Investing for your future.
Every day.
<PAGE>
Smith Barney Intermediate Maturity New York Municipals Fund
Dear Shareholder:
We are pleased to provide you with the semi-annual report for the Smith Barney
Intermediate Maturity New York Municipals Fund. For your convenience, we have
summarized the period's prevailing economic and market conditions below and
outlined the investment strategy employed by the Fund during this time. A
detailed summary of performance and current holdings for the Fund can be found
in the appropriate sections that follow in the semi-annual report.
Market and Economic Overview
Interest rates declined steadily over the latter part of 1995 in response to low
inflation and very sluggish economic growth. During the first five months of
1996, however, interest rates rose sharply as economic reports pointed to much
stronger growth than was expected and as concerns over the stalemated federal
budget negotiations continued.
In recent months, the volatility of the municipal bond market has increased and
municipal bond yields have reached their highest levels in over a year.
However, despite continued uncertainty over the direction of short-term interest
rates, there have been some signs of a possible municipal bond market turnaround
as the higher yields offered by municipal bonds have begun to attract a growing
number of individual and institutional investors.
New York Economic Highlights
New York's general obligation debt is rated "A" by both Moody's Investor
Services and Fitch Investors Services, Inc., and "A-" by Standard and Poor's
Corporation with a positive outlook. (Moody's Investor Services, Fitch Investors
Services, Inc. and Standard and Poor's Corporation are major credit reporting
and bond rating agencies.) These ratings reflect a diverse economic base that
continues to recover modestly from a severe and prolonged recession, above-
average income, a rising but manageable debt, and historically weak, but
recently improved financial operations. Despite the fact that New York State's
economy is slowly emerging from the deepest recession in decades, the State
continues to have problems in getting the budget approved on a timely basis.
Governor George Pataki's budget calls for a continued reduction of state
spending still faces inter-party debate, which has once again delayed the
approval of the States budget. Based on realistic revenue assumptions, the
budget seeks to reduce spending in Medicaid and other social service programs.
Much of the reductions will depend on actions taken at the federal level, and
therefore remain at risk.
1
<PAGE>
The effects of the recession continue to linger in New York City as well.
However, despite the sluggish conditions of the past two years, there have
recently been an increasing number of favorable economic indicators which should
aid the City in its efforts to produce balanced budgets over the next several
years. Real estate values are stabilizing; vacancy rates in much of the city
have gone down; new construction is taking place; and although the number of
people on public assistance remains high, the number declined by almost 3% in
1995, and continued to decline during the first half of 1996.
Intermediate Maturity New York Fund's
Performance and Investment Strategy
For the six months ended May 31, 1996, the Smith Barney Intermediate Maturity
New York Municipals Fund produced a total return for Class A shares of -0.59%,
which compares to its Lipper Analytical Services, Inc. peer group average total
return of -0.43% for the same period. (Lipper is a major fund tracking
organization.) The Fund paid dividends totaling $0.2015 over the past six
months; based on an NAV of $8.23 as of May 31, 1996, this equates to an
annualized distribution rate of 4.90%. For a New York State resident in the top
combined federal and state income tax bracket of 43.60%, the tax-free yield of
4.90% is equivalent to a taxable yield of 8.74%. The taxable equivalent yield
is the yield you would need from a fully-taxed investment to produce an after-
tax yield equivalent to that offered by a tax-free investment.
During the period covered by this report, the Fund maintained its high credit
quality. As of May 31, 1996, over 97% of the Fund's holdings were rated
investment grade (BBB/Baa and higher) by either Standard and Poor's or Moody's,
with approximately 38% of the Fund's investments rated triple-A. The Fund's
assets are currently allocated among the following sectors: hospital (14.9%),
transportation (14.5%), general obligation (13.2%), government facilities
(11.7%), and education (13.0%).
During the period covered by this report, the Fund gradually reduced its heavy
concentration in 7- and 8-year paper in favor of more attractively priced
intermediate-term issues. This gradual reduction resulted in an extension of the
Fund's average weighted maturity. As of May 31, 1996, the Funds average weighted
maturity was just over 7 years.
Outlook
While the day-to-day volatility in the fixed income markets is likely to
continue, the sharp increase in interest rates recently has made intermediate-
term municipal bonds more attractive on a relative basis. In our view,
competitive pressures in the global economy and changing demographics should
help to keep inflation in check and keep wages from going up. (Labor costs
constitute roughly two-thirds of the total cost of all finished goods.) With
intermediate-term municipal bonds providing roughly 90% of the yield
2
<PAGE>
available on comparable maturity Treasury securities, we believe investors are
well compensated for the potential risks.
It was not too long ago that the "flat tax" issue was touted as potentially the
biggest issue of the upcoming Presidential election in November. The exit of
Republican candidate Steve Forbes from the Presidential race has caused the flat
tax to recede from the political debate. However, between now and November, tax
reform again could move into the political spotlight as the campaign
intensifies. Nevertheless, we believe there is little chance that radical tax
reforms will be enacted. In our view, the municipal bond market remains quite
attractive and the Intermediate Maturity New York Municipals Fund is well
positioned to meet the challenges presented by the current environment.
In closing, thank you for investing in the Smith Barney Intermediate Maturity
New York Municipals Fund. We look forward to helping you achieve your financial
goals.
Sincerely,
/S/ Heath B. Mclendon /s/ Peter M. Coffey
Heath B. McLendon Peter M. Coffey
Chairman and Vice President and
Chief Executive Officer Investment Officer
June 14, 1996
3
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Historical Performance - Class A Shares
<TABLE>
<CAPTION>
Net Asset Value
--------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
======================================================================================================
<S> <C> <C> <C> <C> <C>
5/31/96 $ 8.48 $ 8.23 $ 0.20 $0.00 (0.59)%+
- ------------------------------------------------------------------------------------------------------
11/30/95 7.80 8.48 0.41 0.00 14.31
- ------------------------------------------------------------------------------------------------------
11/30/94 8.54 7.80 0.40 0.02 (3.97)
- ------------------------------------------------------------------------------------------------------
11/30/93 8.18 8.54 0.40 0.02 9.76
- ------------------------------------------------------------------------------------------------------
Inception* - 11/30/92 7.90 8.18 0.38 0.00 8.59+
======================================================================================================
Total $ 1.79 $ 0.04
======================================================================================================
</TABLE>
Historical Performance - Class C Shares
<TABLE>
<CAPTION>
Net Asset Value
---------------------
Beginning End Income Capital Gain Total
Period Ended of Period of Period Dividends Distributions Returns(1)
======================================================================================================
<S> <C> <C> <C> <C> <C>
5/31/96 $ 8.48 $ 8.23 $ 0.19 $0.00 (0.69)%+
- ------------------------------------------------------------------------------------------------------
Inception* - 11/30/95 7.87 8.48 0.38 0.00 13.01+
======================================================================================================
Total $ 0.57 $ 0.00
======================================================================================================
</TABLE>
It is the Funds policy to distribute dividends monthly and capital gains, if
any, annually.
4
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Average Annual Total Return
Without Sales Charge(1)
---------------------------
Class A Class C
==============================================================================
Six Months Ended 5/31/96 (0.59)% (0.69)%
- ------------------------------------------------------------------------------
Year Ended 5/31/96 3.83 3.64
- ------------------------------------------------------------------------------
Inception* through 5/31/96 6.13 8.02
==============================================================================
With Sales Charge(2)
---------------------------
Class A Class C
==============================================================================
Six Months Ended 5/31/96+ (2.54)% (1.68)%
- ------------------------------------------------------------------------------
Year Ended 5/31/96 1.75 2.64
- ------------------------------------------------------------------------------
Inception* through 5/31/96 5.65 8.02
==============================================================================
Cumulative Total Return
Without Sales Charge(1)
==============================================================================
Class A (Inception* through 5/31/96) 30.07%
- ------------------------------------------------------------------------------
Class C (Inception* through 5/31/96) 12.24
==============================================================================
(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 charge with respect to Class A shares or the applicable
contingent deferred sales charges ("CDSC") with respect to Class C shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class A shares reflect the deduction
of the maximum initial sales charge of 2.00% and Class C shares reflect the
deduction of a 1.00% CDSC, which applies if shares are redeemed within one
year from initial purchase.
+ Total return is not annualized, as it may not be representative of the
total return for the year.
* Inception dates for Class A and C shares are December 31, 1991 and
December 5, 1994, respectively.
5
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Historical Performance (unaudited)
Growth of $10,000 Invested in Class A Shares of the
Smith Barney Intermediate Maturity New York Municipals Fund
vs. Lehman Brothers 10 Year Municipal Bond Index
and Lipper Analytical Services, Inc. Peer Group Average
- --------------------------------------------------------------------------------
December 1991 May 1996
[GRAPH APPEARS HERE]
+ Hypothetical illustration of $10,000 invested in Class A shares at inception
on December 31, 1991, assuming deduction of the maximum 2.00% sales charge at
the time of investment and reinvestment of dividends and capital gains, if
any, at net asset value through May 31, 1996. The Lehman Brothers 10 Year
Municipal Bond Index is a broad-based index comprised of approximately 5,200
bonds totaling approximately $63 billion in market capitalization. The bonds
are all municipal bonds with an average maturity of 9.8 years, an average
yield of 4.93% and a duration of 7.08 years. The index is unmanaged and is
not subject to the same management and trading expenses of a mutual fund. The
Lipper Analytical Services, Inc. Peer Group Average is an average of the
Funds peer group of mutual funds (33 funds as of May 31, 1996) investing in
intermediate maturity New York tax-exempt bonds. The performance of the Funds
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.
6
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Portfolio Highlights (unaudited) May 31, 1996
Industry Breakdown
[PIE CHART APPEARS HERE]
Summary of Investments by Combined Ratings
Standard & Percentage of
Moody's and/or Poors Total Investments
- ----------------------------------------------------
Aaa AAA 38.1%
Aa AA 10.7
A A 17.4
Baa BBB 30.9
B B 0.2
NR NR 2.7
-----
100.0%
=====
7
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Schedule of Investments (unaudited) May 31, 1996
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
====================================================================================================================
<S> <C> <C> <C>
Education -- 13.0%
$ 400,000 AAA Albany City School District, Series B, MBIA-Insured,
6.000% due 12/15/00 $ 422,500
200,000 AAA Canandaigua City School District, AMBAC-Insured,
6.400% due 6/1/99 210,750
200,000 AAA Central Square Central School District, FGIC-Insured,
6.500% due 6/15/99 211,250
2,000,000 AAA New York Educational Construction Fund, Series A,
MBIA-Insured, 6.500% due 4/1/04 2,187,500
New York State Dormitory Authority, Revenue Bonds:
500,000 AAA College and University Educational Loan,
MBIA-Insured, 6.200% due 7/1/01(a) 530,000
1,000,000 Baa1* Conservation City University System, 2nd
Generation A, 5.500% due 7/1/03 998,750
750,000 AA Manhattan College, Asset-Insured,
5.900% due 7/1/02 789,375
985,000 AAA New York State Urban Development, MBIA-Insured,
5.300% due 4/1/04 992,388
100,000 AAA Wappingers Central School District, AMBAC-
Insured, 6.250% due 12/1/99 105,500
- --------------------------------------------------------------------------------------------------------------------
6,448,013
- --------------------------------------------------------------------------------------------------------------------
Escrowed to Maturity -- 0.1% (b)
60,000 AAA New York State Medical Care Facilities Revenue
Bonds, Series B, FHA-Insured, (Escrowed to
Maturity with U.S. Government Securities),
7.250% due 2/15/98
63,150
- --------------------------------------------------------------------------------------------------------------------
General Obligation -- 13.2%
Buffalo GO:
100,000 AAA FGIC-Insured, 5.800% due 2/1/00 103,625
205,000 AAA Series A, MBIA-Insured, 5.900% due 4/1/01 214,481
385,000 AAA Series B, MBIA-Insured, 5.900% due 4/1/01 402,806
250,000 AAA Erie County Public Improvement Project GO,
FGIC-Insured, 5.500% due 1/15/00 256,250
495,000 Baa* Jamestown GO, Series A, 7.000% due 3/15/00 525,319
1,000,000 AAA Nassau County GO, Combined Sewer District,
Series E, MBIA-Insured, 5.400% due 5/1/10 968,750
New York City, GO:
3,000,000 A-+ Series A, 7.000% due 8/1/04 3,195,000
500,000 A-+ Series B, 6.250% due 10/1/01 514,375
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Schedule of Investments (unaudited) (continued) May 31, 1996
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
=========================================================================================================================
<S> <C> <C> <C>
General Obligation 13.2% (continued)
Oyster Bay GO:
$200,000 AAA Series B, FGIC-Insured, 6.400% due 2/1/99 $ 208,750
150,000 AAA Series C, FGIC-Insured, 6.300% due 10/1/99 157,688
- -------------------------------------------------------------------------------------------------------------------------
6,547,044
- -------------------------------------------------------------------------------------------------------------------------
Government Facilities 11.7%
New York State Dormitory Authority Revenue Bonds,
Court Facilities Lease Revenue, Series A:
1,000,000 BBB+ 6.000% due 5/15/03 1,021,250
1,000,000 BBB+ 5.625% due 5/15/13 920,000
New York State Urban Development, Correctional
Facilities:
Series 3:
1,230,000 Baa1* 6.700% due 1/1/99 1,280,738
595,000 Baa1* 6.800% due 1/1/00 626,981
1,900,000 Baa1* Series A, 6.500% due 1/1/09 1,966,500
- -------------------------------------------------------------------------------------------------------------------------
5,815,469
- -------------------------------------------------------------------------------------------------------------------------
Hospital 14.9%
100,000 B1* Monroe County IDA, Series A, (Genesee Hospital),
6.500% due 11/1/99 100,500
New York State Dormitory Authority, Revenue Bonds:
325,000 AA Genesee Valley, Series B, FHA-Insured,
6.300% due 8/1/02 348,563
1,000,000 AAA NY Hospital Medical Care, FHA-Insured,
5.250% due 2/1/07 976,250
500,000 Baa* Nyack Hospital, 6.250% due 7/1/13 484,375
New York State Medical Care Facilities, Revenue Bonds:
725,000 BBB+ Mental Health Services, Facilities Improvement,
Series F, 6.100% due 2/15/02 750,375
600,000 AA Methodist Hospital, Series A, FHA-Insured,
6.000% due 8/15/02 623,250
250,000 Baa* Secured Hospital, Series 1991A,
6.625% due 8/15/98
Series C, FHA-Insured: 258,125
640,000 AA 5.900% due 8/15/02 653,600
175,000 AAA 5.950% due 8/15/09 178,062
Series B, FHA-Insured, (Long Island College),
680,000 AAA 5.650% due 8/15/02 694,450
1,500,000 BBB+ Series F, 6.000% due 2/15/03 1,541,250
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Schedule of Investments (unaudited) (continued) May 31, 1996
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
===========================================================================================================
<S> <C> <C> <C>
Hospital -- 14.9% (continued)
$ 815,000 AAA Hospital and Nursing Home, Series A,
FHA-Insured, 5.500% due 8/15/04 $ 820,094
- -----------------------------------------------------------------------------------------------------------
7,428,894
- -----------------------------------------------------------------------------------------------------------
Housing: Multi-Family -- 7.3%
2,500,000 AA New York Housing Corporation, Senior Revenue
Refunding Bonds, 6.000% due 11/1/03 2,080,000
1,000,000 BBB+ New York State HFA Revenue, Health Facilities New
York City, Series A, 6.000% due 11/1/08 976,250
570,000 Aa* North Tonawanda, New York Housing Development
Corporation Mortgage Revenue, Bishop Gibbons,
Series B, FHA-Insured, 6.350% due 12/15/02 593,513
- -----------------------------------------------------------------------------------------------------------
3,649,763
- -----------------------------------------------------------------------------------------------------------
Industrial Development -- 2.7%
1,345,000 NR Westchester County Industrial Development, (AGR
Realty Company Project), Revenue Bonds,
5.750% due 11/1/02 1,365,175
- -----------------------------------------------------------------------------------------------------------
Life Care Systems -- 1.6%
750,000 AAA New York State Medical Care Facilities, Long-Term
Health Care Facilities, Series D, CGIC-Insured,
5.750% due 11/1/02 780,938
- -----------------------------------------------------------------------------------------------------------
Miscellaneous -- 4.4%
300,000 A+ New York State COP, 6.900% due 3/1/98 310,500
690,000 Baa1* New York State Urban Development Corporation
Revenue, (Pine Barrens Project),
5.100% due 4/1/06 645,150
New York State Municipal Bond Bank Agency,
Special Program Revenue:
925,000 BBB+ Buffalo, Series A, 6.500% due 3/15/00 965,467
250,000 A+ Rochester, Series A, 6.300% due 3/15/00 259,063
- -----------------------------------------------------------------------------------------------------------
2,180,180
- -----------------------------------------------------------------------------------------------------------
Pollution Control -- 6.6%
New York State Environmental Facilities Corporation:
500,000 AAA PCR, State Water Revolving Fund, Series A,
5.950% due 3/15/02 533,125
200,000 Baa1* Resource Recovery Revenue, (Huntington Project),
Series A, 7.375% due 10/1/99 (a) 208,750
1,000,000 AAA New York State Environmental Facilities Corporation
PCR, Revolving Fund-Pooled Loan B,
5.200% due 5/15/14 936,250
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Schedule of Investments (unaudited) (continued) May 31, 1996
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
=========================================================================================================================
<S> <C> <C> <C>
Pollution Control 6.6% (continued)
$ 245,000 Baa* North Country Development Authority, Solid Waste
Management Systems Revenue, Series A,
6.500% due 7/1/01 252,656
Oneida-Herkimer Solid Waste Management Authority:
530,000 Baa* 5.900% due 4/1/98 535,300
800,000 Baa* 6.300% due 4/1/01 819,000
- -------------------------------------------------------------------------------------------------------------------------
3,285,081
- -------------------------------------------------------------------------------------------------------------------------
Pre-Refunded 0.6%
295,000 AAA North Country, New York, Development Authority,
Solid Waste Management Systems Revenue,
Series A, (Escrowed with U.S. Government
Securities to 7/1/99 Call @ 102), 6.500% due
7/1/01(b) 317,863
- -------------------------------------------------------------------------------------------------------------------------
Public Facilities 1.3%
600,000 AAA Puerto Rico Public Buildings Authority, Public
Education and Health Facilities Refunding, Series K,
FGIC-Insured, 6.000% due 7/1/01 636,000
- -------------------------------------------------------------------------------------------------------------------------
Transportation 14.5%
Guam Power Authority Revenue, Series A:
560,000 BBB 5.700% due 10/1/01 561,400
300,000 BBB 5.900% due 10/1/02 302,625
750,000 AAA Government of Guam, Limited Obligation, Highway
Revenue, Series A, CGIC-Insured,
5.900% due 5/1/02 796,875
Metropolitan Transportation Authority, New York
Service Contract Transit Facilities, Series 5:
735,000 Baa1* 6.100% due 7/1/98 756,130
200,000 Baa1* 6.250% due 7/1/99 208,250
1,000,000 Baa1* New York State Thruway Authority, Service Contract
Local Highway and Bridges, 6.000% due 4/1/02 1,030,000
2,000,000 AAA Niagara Frontier Transportation Authority, Greater
Buffalo International Airport, Series B, AMBAC-
Insured, 5.750% due 4/1/04 (a) 2,060,000
920,000 A+ Syracuse COP, Hancock International Airport,
6.300% due 1/1/02 (a) 982,100
500,000 AAA Triborough Bridge & Tunnel Authority, Special
Obligation Refunding, Series A, MBIA-Insured,
6.100% due 1/1/00 524,375
- -------------------------------------------------------------------------------------------------------------------------
7,221,755
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Schedule of Investments (unaudited) (continued) May 31, 1996
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
=========================================================================================================
<S> <C> <C> <C>
Utilities 3.2%
$550,000 AAA Buffalo Municipal Water Finance Authority, Water
Systems Revenue, FSA-Insured,
5.350% due 7/1/02 $ 561,000
750,000 A* New York City Municipal Water Authority, Water
and Sewer Systems Revenue, Series A,
5.700% due 6/15/02 776,250
250,000 Aa* New York State Power Authority Revenue and
General Purpose, Series Z, 5.850% due 1/1/00 259,375
- ---------------------------------------------------------------------------------------------------------
1,596,625
- ---------------------------------------------------------------------------------------------------------
Water & Sewer 4.9%
1,390,000 AAA Suffolk County Southwest Sewer District GO,
MBIA-Insured, 6.000% due 2/1/07 1,462,975
1,000,000 AAA Suffolk County Water Authority, Waterworks
Revenue, 5.100% due 6/1/09 962,500
- ---------------------------------------------------------------------------------------------------------
2,425,475
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost-$48,940,208**) $49,761,425
=========================================================================================================
</TABLE>
(a) Income from these issues is considered a preference item for purposes of
calculating the alternative minimum tax.
(b) Pre-Refunded bonds escrowed by U.S. Government Securities and bonds
escrowed to maturity by U.S. Government Securities are considered by the
investment advisor to be triple-A rated even if issuer has not applied for
new ratings.
+ Fitch Rating
** Aggregate cost for Federal income tax purposes is substantially the same.
See pages 13 and 14 for definition of ratings and certain security
See Notes to Financial Statements.
12
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Bond Ratings
All ratings are by Standard & Poor's Corporation ("Standard & Poor's"), except
those identified by an asterisk (*) are rated by Moody's Investors Services
("Moody's"). The definitions of the applicable rating symbols are set forth
below:
Standard & Poor's - Ratings from "AA" to "BBB" 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.
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.
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.
NR -- Indicates that the bond is not rated by Standard & Poor's or Moody's.
13
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Short-Term Securities Ratings
SP-1 -- Standard & Poors 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 & Poors 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 -- Moodys highest rating for issues having a demand feature -- VRDO.
P-1 -- Moodys highest rating for commercial paper and for VRDO prior to the
advent of the VMIG 1 rating.
Security Descriptions
ABAG -- Association of Bay Area Governments
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
FLAIRS-- 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 -- Federal Savings Association
GIC -- Guaranteed Investment Contract
GNMA -- Government National Mortgage Association
GO -- General Obligation
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
14
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Statement of Assets and Liabilities (unaudited) May 31, 1996
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments, at value (Cost-$48,940,208) $ 49,761,425
Receivable for securities sold 980,665
Interest receivable 814,616
Deferred organization costs 7,025
Receivable for Fund shares sold 6,859
Other assets 57,615
- ----------------------------------------------------------------------------------------------
Total Assets 51,628,205
- ----------------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 212,072
Payable to bank 156,149
Distribution fees payable 6,776
Investment advisory fees payable 6,458
Administration fees payable 3,741
Accrued expenses 32,394
- ----------------------------------------------------------------------------------------------
Total Liabilities 417,590
- ----------------------------------------------------------------------------------------------
Total Net Assets $51,210,615
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Par value of beneficial interest 6,220
Capital paid in excess of par value 52,419,209
Undistributed net investment income 335
Accumulated net realized loss on security transactions (2,036,366)
Net unrealized appreciation of investments 821,217
- ----------------------------------------------------------------------------------------------
Total Net Assets $51,210,615
- ----------------------------------------------------------------------------------------------
Shares Outstanding:
Class A 6,116,483
- ----------------------------------------------------------------------------------------------
Class C 103,382
- ----------------------------------------------------------------------------------------------
Net Asset Value:
Class A (and redemption price) $8.23
- ----------------------------------------------------------------------------------------------
Class C* $8.23
- ----------------------------------------------------------------------------------------------
Class A Maximium Public Offering Price Per Share
(net asset value plus 2.04% of net asset value per share) $8.40
- ----------------------------------------------------------------------------------------------
</TABLE>
* Redemption price is NAV of Class C shares reduced by a 1.00% CDSC if shares
are redeemed within the first year of purchase.
See Notes to Financial Statements.
15
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Statement of Operations (unaudited)
For the Six Months Ended May 31, 1996
<TABLE>
<CAPTION>
INVESTMENT INCOME:
Interest $ 1,442,358
- ----------------------------------------------------------------------------------------------
<S> <C>
EXPENSES:
Investment advisory fees (Note 2) 79,446
Administration fees (Note 2) 52,964
Distribution fees (Note 2) 40,323
Shareholder communications 15,041
Registration fees 15,041
Audit and legal 13,036
Shareholder and system servicing fees 9,649
Trustees' fees 6,518
Amortization of deferred organization costs 6,021
Pricing service fees 4,813
Custody 1,153
Other 5,667
- ----------------------------------------------------------------------------------------------
Total Expenses 249,672
Less: Investment advisory and administration fee waivers (Note 2) (71,502)
- ----------------------------------------------------------------------------------------------
Net Expenses 178,170
- ----------------------------------------------------------------------------------------------
Net Investment Income 1,264,188
- ----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS (NOTE 5):
Realized Loss From Security
Transactions (excluding short-term securities):
Proceeds from sales 18,030,190
Cost of securities sold 18,279,475
- ----------------------------------------------------------------------------------------------
Net Realized Loss (249,285)
- ----------------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation of Investments:
Beginning of period 2,131,894
End of period 821,217
- ----------------------------------------------------------------------------------------------
Decrease in Net Unrealized Appreciation (1,310,677)
- ----------------------------------------------------------------------------------------------
Net Loss on Investments (1,559,962)
- ----------------------------------------------------------------------------------------------
Decrease in Net Assets From Operations $ (295,774)
- ----------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Statements of Changes in Net Assets
For the Six Months Ended May 31, 1996 (unaudited)
and the Year Ended November 30, 1995
<TABLE>
<CAPTION>
1996 1995
===================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income $ 1,264,188 $ 2,841,713
Net realized loss (249,285) (231,580)
Increase (decrease) in net unrealized appreciation (1,310,677) 5,036,766
- -----------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From Operations (295,774) 7,646,899
- -----------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM (NOTE 3):
Net investment income (1,264,313) (2,841,253)
- -----------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (1,264,313) (2,841,253)
- -----------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares 2,858,388 3,982,346
Net asset value of shares issued
for reinvestment of dividends 711,702 1,988,128
Cost of shares reacquired (3,760,223) (19,905,297)
- -----------------------------------------------------------------------------------
Decrease in Net Assets From Fund
Share Transactions (190,133) (13,934,823)
- -----------------------------------------------------------------------------------
Decrease in Net Assets (1,750,220) (9,129,177)
NET ASSETS:
Beginning of period 52,960,835 62,090,012
===================================================================================
End of period* $51,210,615 $ 52,960,835
* Includes undistributed net investment income of: $335 $460
===================================================================================
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Notes to Financial Statements (unaudited)
1. Significant Accounting Policies
Smith Barney Intermediate Maturity New York Municipals Fund ("Fund") is a
separate investment fund of the Smith Barney Investment Trust ("Trust"). The
Trust, a Massachusetts business trust, is registered under the Investment
Company Act of 1940, as amended, as a non-diversified, open-end management
investment company and consists of this Fund and one other separate investment
fund: the Smith Barney Intermediate Maturity California Municipals Fund. The
financial statements and financial highlights for this fund is presented in a
separate semi-annual report.
The significant accounting policies consistently followed by the Fund are:
(a) security transactions are accounted for on the trade date; (b) securities
are valued at the mean between the quoted bid and ask prices by an independent
pricing service that are based on transactions in municipal obligations,
quotations from municipal bond dealers, market transactions in comparable
securities and various relationships between securities; (c) securities maturing
within 60 days or less are valued at cost plus accreted discount, or minus
amortized premium, as applicable, which approximates value; (d) gains or losses
on the sale of securities are calculated by using the specific identification
method; (e) interest income, adjusted for amortization of premium and accretion
of original issue discount, is recorded on the accrual basis; market discount is
recognized upon the disposition of the security; (f) 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; (g) 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; (h) in accordance with Statement of Position 93-2
Determination, Disclosure, and Financial Statement Presentation of Income,
- -------------------------------------------------------------------------
Capital Gain, and Return of Capital Distributions by Investment Companies, book
- -------------------------------------------------------------------------
and tax basis differences relating to shareholder distributions and other
permanent book and tax differences are reclassified to paid-in capital. As of
November 30, 1995, the cumulative effect of such differences, totaling $320, was
reclassified to paid-in capital from accumulated net realized loss. Net
investment income, net realized gains, and net assets
18
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Notes to Financial Statements (unaudited) (continued)
were not affected by this change; and (i) 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.
In addition, organization costs have been deferred and are being amortized
on a straight line basis over a five year period, beginning with the
commencement of the Fund's operations in December 1991.
2. Investment Advisory Agreement, Administration
Agreement and Other Transactions
Smith Barney Mutual Funds Management Inc. ("SBMFM"), a subsidiary of Smith
Barney Holdings Inc. ("SBH"), acts as investment adviser to the Fund. The Fund
pays SBMFM 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. For the six
months ended May 31, 1996, SBMFM waived $40,783 of its investment advisory fees.
SBMFM also acts as the Funds administrator for which the Fund pays a fee
calculated at the annual rate of 0.20% of the average daily net assets. This fee
is calculated daily and paid monthly. For the six months ended May 31, 1996,
SBMFM waived $30,719 of its administration fee.
Smith Barney Inc. ("SB"), another subsidiary of SBH, acts as distributor of
Fund shares. For the six months ended May 31, 1996, SB received sales charges of
approximately $29,000 on purchases of the Funds Class A shares.
There is a contingent deferred sales charge ("CDSC") of 1.00% on Class C
shares, which applies if redemption occurs less than one year from initial
purchase. For the six months ended May 31, 1996, CDSCs paid to SB for Class C
shares were approximately $2,000.
Pursuant to a Distribution Plan, the Fund pays a service fee with respect
to its Class A and C shares, calculated at the annual rate of 0.15% of the
average daily net assets for each class. In addition, the Fund pays a
distribution fee with respect to its Class C shares calculated
19
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Notes to Financial Statements (unaudited) (continued)
at the annual rate of 0.20% of the average daily net assets. For the six months
ended May 31, 1996, total Distribution Plan Fees incurred were:
Class A Class C
===============================================================================
Distribution Plan Fees $39,273 $1,050
===============================================================================
All officers and one Trustee of the Fund are employees of SB.
3. Exempt-Interest Dividends and Other Distributions
The Fund intends to satisfy conditions that will enable interest from
municipal securities, which is exempt from 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. Fund Concentration
Since the Fund invests primarily in obligations of issuers within New York,
it is subject to possible concentration risk, associated with economic,
political or legal developments or industrial or regional matters specifically
affecting New York.
5. Investments
For the six months ended May 31, 1996, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding short-
term investments) of investments were as follows:
===============================================================================
Purchases $16,070,288
- -------------------------------------------------------------------------------
Sales 18,030,190
===============================================================================
20
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Notes to Financial Statements (unaudited) (continued)
At May 31, 1996, the aggregate gross unrealized appreciation and depreciation
of investments for tax purposes were as follows:
=========================================================
Gross unrealized appreciation $996,545
Gross unrealized depreciation (175,328)
- ---------------------------------------------------------
Net unrealized appreciation $821,217
=========================================================
6. Capital Loss Carryforwards
At November 30, 1995, the Fund had for Federal tax purposes $1,787,081 of
loss carryforwards available to offset future capital gains. To the extent that
these carryforward losses are used to offset capital gains, it is probable that
the gains so offset will not be distributed.
The amount and year of the expiration for each carryforward loss is
indicated below:
11/30/02 11/30/03
=========================================================
Carryforward Amount $1,450,416 $336,665
=========================================================
7. Shares of Beneficial Interest
As of May 31, 1996, the Fund had an unlimited number of shares of
beneficial interest 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 May 31, 1996, total paid-in capital amounted to
the following for each class:
Class A Class C
=========================================================
Total Paid-in Capital $51,559,519 $865,910
=========================================================
21
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Notes to Financial Statements (unaudited)(continued)
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
May 31, 1996 November 30, 1995
------------------------- -------------------------
Shares Amount Shares Amount
============================================================================
<S> <C> <C> <C> <C>
Class A
Shares sold 280,047 $ 2,378,178 445,483 $ 3,603,196
Shares issued on
reinvestment 83,415 701,124 241,744 1,981,748
Shares redeemed (447,744) (3,749,836) (2,443,262) (19,905,297)
- ----------------------------------------------------------------------------
Net Decrease (84,282) $ (670,534) (1,756,035) $(14,320,353)
============================================================================
Class C
Shares sold 57,038 $ 480,210 45,901 $ 379,150
Shares issued on
reinvestment 1,261 10,578 426 6,380
Shares redeemed (1,244) (10,387) -- --
- ----------------------------------------------------------------------------
Net Increase 57,055 $ 480,401 46,327 $ 385,530
============================================================================
</TABLE>
22
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Financial Highlights
For a share of each class of beneficial interest outstanding throughout each
period:
<TABLE>
<CAPTION>
Class A Shares 1996(1) 1995 1994 1993 1992(2)
==================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 8.48 $ 7.80 $ 8.54 $ 8.18 $ 7.90
- --------------------------------------------------------------------------------------------------
Income (Loss) From Operations:
Net investment income (3) 0.20 0.41 0.40 0.40 0.38
Net realized and unrealized gain (loss) (0.25) 0.68 (0.72) 0.38 0.28
- --------------------------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.05) 1.09 (0.32) 0.78 0.66
- --------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.20) (0.41) (0.40) (0.40) (0.38)
Net realized gains -- -- (0.02) (0.02) --
- --------------------------------------------------------------------------------------------------
Total Distributions (0.20) (0.41) (0.42) (0.42) (0.38)
- --------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.23 $ 8.48 $ 7.80 $ 8.54 $ 8.18
- --------------------------------------------------------------------------------------------------
Total Return (0.59)%++ 14.31% (3.97)% 9.76% 8.59%++
- --------------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $50,360 $52,568 $62,090 $67,230 $24,543
- --------------------------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses (3) 0.67% 0.65% 0.65% 0.65% 0.65%
Net investment income 4.79 5.01 4.77 4.59 4.95
- --------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 31% -- 68% 22% 68%
==================================================================================================
</TABLE>
(1) For the six months ended May 31, 1996 (unaudited).
(2) For the period from December 31, 1991 (inception date) to November 30,
1992.
(3) The investment adviser has waived all or part of its fees for the six
months ended May 31, 1996, for the three years ended November 30, 1995 and
for the period ended November 30, 1992. If such fees were not waived, the
per share decreases in net investment income and the expense ratios would
have been as follows:
<TABLE>
<CAPTION>
Per Share Decreases Expense Ratios
in Net Investment Income Without Fee Waivers
------------------------------------------------- --------------------------------------------------
1996 1995 1994 1993 1992 1996 1995 1994 1993 1992
---- ---- ---- ---- ---- ---- ---- --- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A $ 0.01 $ 0.03 $ 0.03 $0.04 $0.06 0.94%+ 0.97% 0.98% 1.10% 1.45%+
</TABLE>
++ Total return is not annualized, as it may not be representative
of the total return for the year.
+ Annualized.
23
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Financial Highlights (continued)
For a share of each class of beneficial interest outstanding throughout each
period:
Class C Shares 1996(1) 1995(2)
===============================================================================
Net Asset Value, Beginning of Period $ 8.48 $ 7.87
- -------------------------------------------------------------------------------
Income From Operations:
Net investment income (3) 0.19 0.38
Net realized and unrealized gain (loss) (0.25) 0.61
- -------------------------------------------------------------------------------
Total Income (Loss) From Operations (0.06) 0.99
- -------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.19) (0.38)
- -------------------------------------------------------------------------------
Total Distributions (0.19) (0.38)
- -------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.23 $ 8.48
- -------------------------------------------------------------------------------
Total Return++ (0.69)% 13.01%
- -------------------------------------------------------------------------------
Net Assets, End of Period (000s) $ 851 $ 393
- -------------------------------------------------------------------------------
Ratios to Average Net Assets+:
Expenses (3) 0.88% 0.86%
Net investment income 4.61 4.74
- -------------------------------------------------------------------------------
Portfolio Turnover Rate 31% -
===============================================================================
(1) For the six months ended May 31, 1996 (unaudited).
(2) For the period from December 5, 1994 (inception date) to November 30, 1995.
(3) The investment adviser has waived all or part of its fees for the six
months ended May 31, 1996, and for the period ended November 30, 1995. If
such fees were not waived, the per share decreases in net investment income
and expense ratios would have been as follows:
Per Share Decreases Expense Ratios
in Net Investment Income Without Fee Waivers+
------------------------ ---------------------
1996 1995 1996 1995
---- ---- ---- ----
Class C $0.01 $0.03 1.15% 1.19%
++ Total return is not annualized, as it may not be representative of the total
return for the year.
+ Annualized.
24
<PAGE>
Smith Barney
Intermediate Maturity New York Municipals Fund
Additional Information
Change in Independent Auditor: On October 19, 1994, based upon the
recommendation of the Audit Committee of the Fund, the Board of Trustees
determined not to retain Coopers & Lybrand L.L.P ("Coopers & Lybrand") as the
Fund's independent auditor and voted to appoint KPMG Peat Marwick LLP. During
the Fund's two most recent fiscal years, Coopers & Lybrand's audit reports
contained no adverse opinion or disclaimer of opinion; nor were the reports
qualified or modified as to uncertainty, audit scope, or accounting principles.
Further, during this same period there were no disagreements with Coopers &
Lybrand 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 Coopers & Lybrand, would have caused it to make reference
to the subject matter of such disagreements in connection with its audit
reports. The Fund has requested Coopers & Lybrand to provide a letter to the
Securities and Exchange Commission stating whether Coopers & Lybrand agrees with
the foregoing statements, and to provide the Fund with a copy of such letter. A
copy of this letter is available upon request by calling the Fund at (212) 723-
9218.
25
<PAGE>
SMITH BARNEY
Smith Barney ------------------------------
Intermediate A Member of TravelersGroup[ART]
Maturity New York
Municipals Fund Investment Adviser and
Administrator
Smith Barney Mutual Funds
Management Inc.
Trustees
Herbert Barg Distributor
Alfred J. Bianchetti Smith Barney Inc.
Martin Brody
Dwight B. Crane Custodian
Burt N. Dorsett PNC Bank, N.A.
Elliot S. Jaffe
Stephen E. Kaufman Shareholder
Joseph J. McCann Servicing Agent
Heath B. McLendon, Chairman First Data Investor Services Group, Inc.
Cornelius C. Rose P.O. Box 9134
Boston, MA 02205-9134
Officers
Heath B. McLendon
Chairman of the Board and This report is submitted for the general
Investment Officer information of the shareholders of Smith
Barney Intermediate Maturity New York
Municipals Fund. It is not authorized for
distribution to prospective investors unless
accompanied or preceded by a current
Prospectus for the Fund, which contains
Jessica M. Bibliowicz information concerning the Funds investment
President policies and expenses as well as other
pertinent information.
Lewis E. Daidone
Senior Vice President Smith Barney
and Treasurer Intermediate Maturity
New York
Peter Coffey Municipals Fund
Investment Officer 388 Greenwich Street
New York, New York 10013
Thomas M. Reynolds
Controller
FD2401 7/96
Christina T. Sydor
Secretary
