<PAGE>
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MANAGED MUNICIPALS
PORTFOLIO INC.
QUARTERLY REPORT
August 31, 1994
[LOGO]
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The blue cover has a golden picture of an eagle sitting on top of a shield with
two warriors on either side.
<PAGE>
MANAGED MUNICIPALS
PORTFOLIO INC.
AUGUST 31, 1994
DEAR SHAREHOLDER:
We are pleased to provide the quarterly report for Managed Municipals
Portfolio Inc. for the three-month period ended August 31, 1994. During the
past quarter, the Portfolio paid dividends totaling $0.183 per share,
equivalent to an annualized distribution rate of 5.96% based on the August
31, 1994 net asset value of $12.29 per share and 6.37% based on the New York
Stock Exchange, Inc. closing price on that date of $11.50 per share.
ECONOMIC OVERVIEW
The economy has continued to experience steady, healthy growth during
the past three months. The continued strength in the economy and some very
early signs of an increase in inflation caused the Federal Reserve Board to
raise the Federal funds rate to 4.75% in two separate moves between May and
August of this year. Long-term interest rates also rose, causing a decline
in the price of bonds because of the inverse relationship between yield and
price. Between now and the end of the year, we would not be surprised to see
the Federal Reserve Board raise the Federal funds rate to 5%. Looking out
from where we are right now, we would expect the economy to slow somewhat
over the next three to four months as the effect of this significant rise in
interest rates works its way through the economy. Interest rates, both
taxable and tax-exempt, appear to now represent very fair values. Long-term
rates will probably move lower from where they are right now as the economy
begins to slow.
THE MUNICIPAL MARKET AND PORTFOLIO STRATEGY
In our opinion, the worst of the market volatility is now behind us, and
we believe that volatility will continue to decline as municipal new
issuance declines and investor demand for tax-exempt income continues to
increase. In 1993, there was $300 billion in municipal issuance; in
CONTINUED
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<PAGE>
contrast, new issuance in 1994 is likely to be approximately $140 to $170
billion -- a reduction of nearly 50 percent. Once interest rates began to
rise, issuance virtually disappeared.
Based on our belief that the municipal market is unlikely to encounter
significant market volatility, we continue to invest the Portfolio's
holdings in longer-term issues with an average maturity of approximately 21
years. We are not holding a large cash position in the Portfolio, and
instead have invested its assets in high-quality municipal bonds. As of
August 31, over half of the Portfolio's assets were invested in municipal
bonds rated Aaa/AAA and Aa/AA.
Callable and prerefunded bonds are still an ongoing source of concern
for municipal investors. We are working very hard at keeping low (which we
define as approximately 5%) the number of bonds in the Portfolio that have
call dates within the next 15 to 18 months. A large number of callable bonds
could potentially impact a fund's income stream fairly dramatically if it
loses a lot of its older, higher coupon bonds.
On a final note, we are pleased to tell you that Joseph Deane, your
portfolio manager, continues to be recognized in the national press as one
of the leading municipal bond portfolio managers in the country. In addition
to his frequent appearances in The Wall Street Journal and The Bond Buyer,
Joe recently was profiled in the October 3rd issue of Barron's.
We appreciate your continued confidence in our management skills during
this difficult market environment. We will continue to manage the Portfolio
with the goal of providing investors with a competitive level of tax-free
income consistent with a prudent, conservative approach to credit quality,
and preservation of capital based on a total-return philosophy of managing
assets. If you have any questions or comments about your investment in the
Portfolio, please do not hesitate to contact either us or The Shareholder
Services Group, Inc. at (800) 331-1710.
Sincerely,
Heath B. McLendon Joseph P. Deane
CHAIRMAN OF THE BOARD VICE PRESIDENT AND
INVESTMENT OFFICER
October 24, 1994
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<PAGE>
UNAUDITED FINANCIAL DATA
PER SHARE OF COMMON STOCK
<TABLE>
<CAPTION>
CAPITAL
GAINS DIVIDEND
NYSE NET ASSET DIVIDEND DIVIDEND REINVESTMENT
CLOSING PRICE VALUE PAID PAID PRICE
-------------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
September 30, 1993..... $12.625 $13.50 $0.061 -- $12.80
October 31, 1993....... 12.875 13.47 0.061 -- 12.91
November 30, 1993...... 12.250 13.36 0.061 -- 12.42
December 31, 1993...... 12.500 13.08 -- $0.510 12.93
January 31, 1994....... 12.625 13.07 0.061 -- 12.78
February 28, 1994...... 12.125 12.84 0.061 -- 12.26
March 31, 1994......... 11.375 12.23 0.061 -- 11.91
April 30, 1994......... 11.250 12.23 0.061 -- 11.98
May 31, 1994........... 11.500 12.26 0.061 -- 11.82
June 30, 1994.......... 11.500 12.11 0.061 -- 11.86
July 31, 1994.......... 11.625 12.32 0.061 -- 11.90
August 31, 1994........ 11.500 12.29 0.061 -- 11.64
</TABLE>
DIVIDEND DATA*
FOR THE THREE MONTH PERIOD ENDED AUGUST 31, 1994
<TABLE>
<CAPTION>
EQUIVALENT TAXABLE DISTRIBUTION RATE
--------------------------------------------------------------------
ASSUMING
PER SHARE ANNUALIZED ASSUMING ASSUMING ASSUMING 39.6%
DIVIDEND DISTRIBUTION 28% FEDERAL 31% FEDERAL 36% FEDERAL FEDERAL
DISTRIBUTIONS RATE TAX BRACKET TAX BRACKET TAX BRACKET TAX BRACKET
------------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
$0.061 5.96% 8.28% 8.64% 9.31% 9.87%
<FN>
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* Based on August 31, 1994 net asset value of $12.29 per share.
</TABLE>
Each registered shareholder is considered a participant in the Portfolio's
Dividend Reinvestment Plan, unless the shareholder elects to receive all
dividends and distributions in cash, or unless the shareholder's shares are
registered in the name of a broker, bank or nominee (other than Smith Barney
Inc.) which does not provide the service. Questions and correspondence
concerning the Dividend Reinvestment Plan should be directed to The Shareholder
Services Group, Inc., P.O. Box 1376, Boston, Massachusetts 02104.
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<PAGE>
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
KEY TO INSURANCE ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
CO LEE -- College Construction Loan Association
FGIC -- Federal Guaranty Insurance Corporation
MBIA -- Municipal Bond Investors Assurance
</TABLE>
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
<C> <S> <C> <C> <C>
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MUNICIPAL BONDS AND NOTES--104.3%
ALASKA -- 4.8%
Valdez, Alaska, Marine Terminal Revenue:
$13,000,000 5.650% due 12/1/28 A1 AA- $ 11,391,250
10,000,000 Series A,
5.850% due 8/1/25 A1 AA- 8,937,500
CALIFORNIA -- 11.0%
2,000,000 California Housing Financing Agency Revenue, Series B,
5.700% due 2/1/25 Aa AA- 1,785,000
3,500,000 Contra Costa, California, Water District, Series F,
(FGIC insured),
5.000% due 10/1/20 Aaa AAA 2,909,375
5,000,000 Los Angeles, California, Convention & Exhibition Center
Authority Lease Revenue, (MBIA insured),
5.125% due 8/15/21 Aaa AAA 4,212,500
Los Angeles, California, Regional Airport Improvement
Corporation, (Los Angeles International Airport), Lease
Revenue:
3,500,000 6.800% due 1/1/27 NR A- 3,526,250
3,300,000 6.500% due 1/1/32 NR A- 3,196,875
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
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<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
Los Angeles, California, Waste Water System Revenue,
Series B:
$ 2,600,000 (FGIC insured),
5.200% due 11/1/21 Aaa AAA $ 2,223,000
1,500,000 (MBIA insured),
5.700% due 6/1/23 Aaa AAA 1,396,875
8,000,000 Los Angeles County, California, Metropolitan
Transportation Authority,
Sales Tax Revenue,
(AMBAC insured),
5.250% due 7/1/23 Aaa AAA 6,860,000
5,000,000 San Francisco, California, City Sewer Refunding,
(AMBAC insured),
5.500% due 10/1/15 Aaa AAA 4,587,500
San Joaquin Hills, California, Transportation Authority,
Corridor Agency Toll Road, Sr. Lien Revenue:
16,000,000 Zero Coupon due 1/1/17 NR NR 3,080,000
25,000,000 Zero Coupon due 1/1/18 NR NR 4,468,750
10,000,000 Zero Coupon due 1/1/20 NR NR 1,512,500
15,000,000 Zero Coupon due 1/1/25 NR NR 1,556,250
4,000,000 Santa Margarita, California, Dana Point Authority Revenue,
G.O., Series B,
(MBIA insured),
5.750% due 8/1/20 Aaa AAA 3,775,000
1,700,000 Sonoma County, California, Detention Facilities
Improvement Program, Certificates of Participation,
5.000% due 11/15/13 A1 A+ 1,432,250
COLORADO -- 8.2%
2,000,000 Colorado Springs, Colorado, Airport Revenue, Series A,
7.000% due 1/1/22 NR BBB 2,047,500
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
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<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
COLORADO (CONTINUED)
$100,000,000 Dawson Ridge Metropolitan District #1, Series B,
Zero coupon due 10/1/22 Aaa NR $ 14,125,000
Denver, Colorado, Airport Revenue, Series C:
4,000,000 6.750% due 11/15/22 Baa BB 3,590,000
18,325,000 6.125% due 11/15/25 Baa BB 15,049,406
FLORIDA -- 3.0%
8,550,000 Florida State, Board of Education, Capital Outlay,
5.200% due 6/1/19 Aa AA 7,459,875
Tampa, Florida, Revenue Bonds, (Aquarium Project):
3,000,000 7.550% due 5/1/12 NR NR 3,213,750
2,000,000 7.750% due 5/1/27 NR NR 2,147,500
ILLINOIS -- 0.8%
3,250,000 Illinois Housing Development Revenue, Series A-2,
6.700% due 8/1/25 Aa AA 3,270,313
INDIANA -- 5.1%
18,305,000 Indiana Bond Bank, Revenue Guarantee, State Revolving
Fund, Series A,
6.000% due 2/1/15 NR A 17,527,037
4,000,000 Indiana Port Commission Revenue Refunding Project,
(Cargill Inc. Project),
6.875% due 5/1/12 Aa3 NR 4,225,000
LOUISIANA -- 3.1%
4,500,000 Saint Martin Parish, Louisiana, Industrial Project,
(Cargill Inc. Project),
6.625% due 10/1/12 Aa3 NR 4,674,375
8,500,000 Tangipahoa Parish, Louisiana, District #1, Hospital
Revenue,
(AMBAC insured),
6.250% due 2/1/24 Aaa AAA 8,404,375
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
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<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
MAINE -- 3.0%
Maine State Housing Authority:
$10,000,000 5.700% due 11/15/26 A1 AA- $ 8,875,000
3,815,000 Series B-4,
6.900% due 11/15/26 A1 AA- 3,819,769
MASSACHUSETTS -- 4.5%
7,000,000 Commonwealth of Massachusetts, General Obligation, Series
D,
5.750% due 5/1/12 A A+ 6,711,250
4,385,000 Commonwealth of Massachusetts, Housing Finance Agency,
(AMBAC insured),
6.600% due 7/1/14 Aaa AAA 4,406,925
5,000,000 Commonwealth of Massachusetts, Turnpike Authority,
Turnpike Revenue,
5.000% due 1/1/20 A1 A+ 4,231,250
4,115,000 Massachusetts Bay Transportation Authority, Series B,
5.500% due 3/1/21 A A+ 3,744,650
MICHIGAN -- 5.7%
4,000,000 Michigan State Housing Development Authority, Series D,
6.850% due 6/1/26 NR AA+ 4,020,000
2,000,000 Michigan State Strategic Funding, Ltd., (Blue Water Fiber
Project),
8.000% due 1/1/12 NR NR 1,970,000
16,375,000 Midland County, Michigan, Economic Development
Corporation, Pollution Control Revenue, Series B,
9.500% due 7/23/09 NR NR 18,012,500
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
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<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
MINNESOTA -- 5.0%
$ 2,500,000 Duluth, Minnesota, Seaway Port Authority, Industrial
Development, Dock & Wharf Revenue, (Cargill Inc. Project),
6.800% due 5/1/12 Aa3 NR $ 2,671,875
1,000,000 Minnesota State Housing Development Authority, Series M,
6.700% due 7/1/26 Aa AA+ 1,015,000
15,685,000 St. Paul, Minnesota, Housing Redevelopment Agency,
Hospital Revenue, Series D, (Health East Project),
9.750% due 11/1/17 Baa BBB- 17,586,806
MONTANA -- 1.1%
5,000,000 Montana State Board Investment Resources Recovery,
Yellowstone Energy LP Project,
7.000% due 12/31/19 NR NR 4,831,250
NEW HAMPSHIRE -- 3.7%
New Hampshire Higher Education & Health Revenue, (Mary
Hitchcock Memorial Hospital Project), (FGIC insured):
7,000,000 5.250% due 8/15/21 Aaa AAA 6,063,750
6,655,000 5.750% due 8/15/23 Aaa AAA 6,180,831
3,500,000 New Hampshire State Business Project, (Manchester Airport
Project),
6.500% due 1/1/19 Aa AA 3,596,250
NEW JERSEY -- 2.3%
5,200,000 Hudson County, New Jersey, Improvement Authority,
Essential Purpose-- Remarketed,
6.625% due 8/1/25 NR A+ 5,427,500
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
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<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW JERSEY (CONTINUED)
$ 1,500,000 Middlesex County, New Jersey, Certificates of
Participation,
(MBIA insured),
6.000% due 8/15/14 Aaa AAA $ 1,494,375
2,910,000 South Jersey, New Jersey, Marine Port Terminal Revenue,
Series G,
5.600% due 1/1/23 NR A+ 2,680,838
NEW YORK -- 5.6%
New York State, Local Government Assistance:
8,225,000 Series B,
5.500% due 4/1/21 A A 7,371,656
5,300,000 Series C,
5.500% due 4/1/18 A A 4,809,750
11,940,000 New York State, Thruway Authority, Local Highway & Bridge
Transportation,
(MBIA insured),
5.750% due 4/1/09 Aaa AAA 11,709,558
NORTH CAROLINA -- 2.3%
2,000,000 North Carolina Housing Revenue, Series Z,
6.600% due 9/1/26 Aa A+ 2,002,500
8,325,000 North Carolina Municipal Power Agency 1, (Catawba
Electric), Revenue Bonds,
5.750% due 10/1/15 A A 7,783,875
PENNSYLVANIA -- 3.7%
3,900,000 Doylestown, Pennsylvania, Hospital Authority Revenue,
Series A, (AMBAC insured),
5.000% due 7/1/23 Aaa AAA 3,290,625
5,000,000 Pennsylvania Economic Development Finance Authority,
(Resource Recovery--Northampton Generating Project),
Series A,
6.400% due 1/1/09 NR NR 4,731,250
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
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<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
PENNSYLVANIA (CONTINUED)
$ 5,000,000 Pennsylvania Housing Finance Agency, Series 41-B,
6.650% due 4/1/25 Aa AA $ 5,031,250
2,500,000 Pennsylvania State, Industrial Development Authority
Revenue, (AMBAC insured),
6.000% due 1/1/12 Aaa AAA 2,490,625
RHODE ISLAND -- 4.1%
2,500,000 Rhode Island Housing & Mortgage Finance Authority, Home
Ownership-- Remarketed,
6.650% due 10/1/12 Aa AA+ 2,540,625
12,050,000 Rhode Island State Health & Higher Education Facilities,
Educational Building Corporation Revenue, (Roger Williams
College), (Co Lee insured),
6.500% due 11/15/24 NR AAA 12,155,438
3,000,000 Rhode Island State, Public Building Authority, Series A,
(AMBAC insured),
5.250% due 2/1/10 Aaa AAA 2,745,000
SOUTH CAROLINA -- 2.2%
Myrtle Beach, South Carolina, Certificates of
Participation, (Myrtle Beach Convention Center Project):
2,000,000 6.875% due 7/1/07 Baa1 BBB+ 2,040,000
7,315,000 6.875% due 7/1/17 Baa1 BBB+ 7,397,294
SOUTH DAKOTA -- 0.7%
3,000,000 South Dakota State Housing Authority, (Homeowners Mortgage
Project),
5.800% due 5/1/14 Aa AA+ 2,823,750
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
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<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
TEXAS -- 3.0%
$12,250,000 Sam Rayburn, Texas, Municipal Power Agency, Supply
Systems, Revenue Refunding, Series A,
6.750% due 10/1/14 Baa BB $ 11,897,812
1,000,000 Texas State Veterans Housing Assistance, G.O.,
6.450% due 6/1/23 Aa AA 1,005,000
VIRGINIA -- 4.7%
4,700,000 Harrisonburg, Virginia, Redevelopment and Housing
Authority, Public Facility Lease Revenue, (Jail &
Courthouse Project),
6.500% due 9/1/14 A1 NR 4,788,125
1,755,000 Virginia Beach, Virginia, General Obligation Refunding,
5.450% due 7/15/11 Aa AA 1,660,669
14,000,000 Virginia State Public Building Authority, Series C, G.O.,
5.750% due 8/1/12 Aa AA 13,457,500
WASHINGTON -- 9.2%
4,750,000 Chelan County, Washington, Public Utilities District,
General Obligation, Series 1993A, District 4,--
Remarketed, (mandatory put 7/1/19),
6.750% due 7/1/62 A1 A+ 4,898,438
5,650,000 Chelan County, Washington, Public Utilities District #001,
(Chelan Hydro), Series E,
5.700% due 7/1/08 A1 A+ 5,459,312
18,200,000 Washington State Health Care Facilities, (Sisters of
Providence Hospital),
7.875% due 10/1/10 A1 AA- 19,747,000
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
- ---------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
WASHINGTON (CONTINUED)
Washington State Public Power:
$ 6,250,000 Series B,
5.625% due 7/1/12 Aa AA $ 5,757,813
3,555,000 Series C,
5.375% due 7/1/13 Aa AA 3,109,167
WEST VIRGINIA -- 2.1%
9,000,000 Marion County, West Virginia, County Commission, Solid
Waste, American Power Recycle Project,
7.750% due 12/1/11 NR NR 8,842,500
WISCONSIN -- 5.4%
4,070,000 Wisconsin State, General Obligation, Series B,
6.600% due 1/1/22 Aa AA 4,242,975
Wisconsin State Health and Educational Facilities
Authority:
6,000,000 Aurora, Health Care Obligated Credit,
(MBIA insured),
5.250% due 8/15/23 Aaa AAA 5,122,500
6,770,000 (Marquette University Project), (MBIA insured),
5.500% due 12/1/11 Aaa AAA 6,228,400
8,215,000 Wisconsin State Transportation Revenue, Series A,
5.500% due 7/1/22 A1 AA- 7,352,425
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TOTAL MUNICIPAL BONDS AND NOTES
(COST $442,971,302) $442,417,657
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</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
- ---------------------------------------------------------------------------
<C> <S> <C> <C> <C>
SHORT-TERM TAX-EXEMPT INVESTMENTS -- 2.5%
KENTUCKY -- 0.9%
$ 3,700,000 Daviess County, Kentucky, Solid Waste Revenue, (Scott
Paper Project--A),
3.250% due 12/1/23+ NR A-1+ $ 3,700,000
TEXAS -- 1.6%
6,600,000 Gulf Coast Waste Disposal Authority, (Amoco Oil Project),
3.050% due 10/1/17+ VMIG-1 A-1+ 6,600,000
TOTAL SHORT-TERM TAX-EXEMPT INVESTMENTS
(COST $10,300,000) 10,300,000
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TOTAL INVESTMENTS
(COST $453,271,302*) 106.8% 452,717,657
OTHER ASSETS AND LIABILITIES (NET) (6.8) (28,743,269)
- ---------------------------------------------------------------------------
NET ASSETS 100.0% $423,974,388
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<FN>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand bonds are payable upon not more than one day's notice.
Abbreviation:
G.O. -- General Obligation
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED) (CONTINUED)
SUMMARY OF MUNICIPAL BONDS AND NOTES AND
SHORT-TERM TAX-EXEMPT INVESTMENTS BY COMBINED RATINGS
<TABLE>
<CAPTION>
PERCENT
OF
MOODY'S S&P VALUE
<S> <C> <C> <C>
Aaa or AAA 24.4%
Aa AA 29.7
A A 18.4
Baa BBB 13.2
VMIG-1 A-1 2.3
NR NR 12.0
-------
100.0%
-------
-------
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
NOTES TO PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICY
Managed Municipals Portfolio Inc. (the "Portfolio") was organized as a
corporation under the laws of the State of Maryland on April 9, 1992 and is
registered with the Securities and Exchange Commission as a non-diversified,
closed-end management investment company under the Investment Company Act of
1940, as amended. The policy described below is followed consistently by the
Portfolio in the valuation of its securities.
PORTFOLIO VALUATION: Investments are valued by The Boston Company Advisors,
Inc. after consultation with an independent pricing service (the "Service")
approved by the Portfolio's Board of Directors. When, in the judgment of the
Service, quoted bid prices for investments are readily available and are
representative of the bid side of the market, these investments are valued at
the mean between the quoted bid prices and asked prices. Investments for which,
in the judgment of the Service, no readily obtainable market quotations are
available, are carried at fair value as determined by the Service, based on
methods that include consideration of: yields or prices of municipal obligations
of comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions. The Service may use electronic data
processing techniques and/or a matrix system to determine valuations. Short-term
investments that mature in fewer than 60 days are valued at amortized cost.
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<PAGE>
NOTES TO PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
QUARTERLY RESULTS OF OPERATIONS
NET REALIZED AND NET INCREASE/
UNREALIZED GAIN/ (DECREASE) IN
INVESTMENT NET INVESTMENT (LOSS) ON NET ASSETS RESULTING
INCOME INCOME INVESTMENTS FROM OPERATIONS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------
<CAPTION>
QUARTER PER PER PER PER
ENDED TOTAL SHARE TOTAL SHARE TOTAL SHARE TOTAL SHARE
<S> <C> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------
AUGUST 31,
1992 $4,525,875 $.13 $3,784,459 $.11 $6,021,320 $.18 $9,805,779 $.29
NOVEMBER 30,
1992 6,700,130 .20 5,735,834 .17 (1,009,530) (.03) 4,726,304 .14
FEBRUARY 28,
1993 6,927,436 .20 5,789,926 .17 31,655,970 .93 37,445,896 1.10
MAY 31, 1993 7,247,334 .21 6,223,844 .18 (3,693,473) (.11) 2,530,371 .07
AUGUST 31,
1993 6,954,864 .20 5,796,493 .17 14,702,966 .43 20,499,459 .60
NOVEMBER 30,
1993 6,803,020 .17 5,731,243 .17 (1,381,672) (.08) 4,349,571 .09
FEBRUARY 28,
1994 6,678,467 .19 5,549,454 .16 (4,168,370) (.12) 1,381,084 .04
MAY 31, 1994 7,004,102 .24 5,910,189 .17 (17,312,645) (.46) (11,402,456) (.29)
AUGUST 31,
1994 7,178,807 .21 6,027,342 .18 (782,448) (.02) 5,244,894 .16
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</TABLE>
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<PAGE>
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THIS REPORT IS SENT TO THE SHAREHOLDERS OF
MANAGED MUNICIPALS PORTFOLIO INC.
FOR THEIR INFORMATION. IT IS NOT A PROSPECTUS,
CIRCULAR OR REPRESENTATION INTENDED FOR USE IN THE
PURCHASE OR SALE OF SHARES OF THE PORTFOLIO OR OF ANY
SECURITIES MENTIONED IN THE REPORT.
FD 0776 J4
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