<PAGE>
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MANAGED MUNICIPALS
PORTFOLIO II INC.
QUARTERLY REPORT
May 31, 1994
[LOGO]
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The green cover has a golden picture of an eagle sitting on top of a shield
with
two warriors on either side.
<PAGE>
MANAGED MUNICIPALS
PORTFOLIO II INC.
MAY 31, 1994
DEAR SHAREHOLDER:
We are pleased to provide you with the third quarter report and
portfolio of investments for Managed Municipals Portfolio II for the three
months ended May 31, 1994. During the past quarter the Portfolio continued
to pay a monthly tax-exempt distribution of $0.061 and its net asset value
per share was relatively stable. However, the stock price lagged the net
asset value, reflecting the nervousness and volatility in the financial
markets, and speaks to the emotional reaction of many investors to rising
interest rates.
A TALE OF TWO BOND MARKETS:
"IT WAS THE BEST OF TIMES, IT WAS THE WORST OF TIMES . . ."
After becoming accustomed to the best of times in an extremely bullish
bond market, beginning in November of 1993 investors found themselves
embroiled in a very bearish bond market and facing the winter of despair.
For the first time in close to five years, market participants confronted
a
classic situation that, if in fact was not the worst of times, came very
close. There was a tremendous decline in bond prices, and as important as
it
was during 1993 to be offensively positioned in terms of security
holdings,
it now was equally as important to be defensively positioned.
The Federal Reserve's increase in short-term rates was perhaps the
catalyst for the municipal market decline, but all of the fixed income
markets reacted much more powerfully than could have been anticipated,
perhaps even overreacted. We attribute the market's exaggerated response
on
both the upside and the downside to the winding and unwinding of some very
large leveraged trades that were put on by
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<PAGE>
hedge funds. And it is no secret that some of these trades did not work
out
as anticipated, forcing investors to unwind their trades sooner than
expected and thereby exacerbate the municipal bond market's downturn. Now
that this has passed, the market should once again react to basic
fundamentals more than anything else. As long as the economic numbers
continue to indicate that inflation is still a threat, we believe that the
Federal Reserve will raise short-term interest rates until the American
economy begins to lose some steam. And as strong as the economy looks
right
now, it could be some time before it begins to slow.
IT WAS THE AGE OF WISDOM, IT WAS THE AGE OF FOOLISHNESS . . .
Unlike many other investors who believed the bull market for bonds
seemingly would never end, we took an incredibly cautious stance last fall
towards the marketplace. We shortened the average life of the Portfolio's
holdings, raised the percentage of cash holdings, and made the dramatic
move
of hedging the Portfolio against declining bond prices. In sum, we took
about as defensive a position as we could.
In late March and early April, we removed all of the hedges from the
Portfolio and began buying long-term municipal bonds. During market
declines, the area that usually declines the most is the high-grade area
of
the market because it is the most liquid. So in April, when we decided
that
the market had adjusted enough and consequently presented some good
investment opportunities, we were able to buy AA and AAA-rated securities
at
very attractive prices. Most of our purchases were in the general
obligation
and essential service revenue sectors, because we think they offer the
best
value at this time, defining value as the highest yield relative to their
credit risk. We are still wary of uninsured health care bonds for two
reasons: the 1986 tax act materially changed the way hospitals are
reimbursed by Medicare and Medicaid; and the current health care package
has
too many uncertainties associated with it. We have lengthened the average
maturity of the Portfolio to 22 years, and have kept a fairly small cash
position.
GREAT EXPECTATIONS . . .
By the end of May, the worst of the volatility and downside in the
bond
market was over. Could it go down from here? Yes, but if it does, we doubt
that the decline will be dramatic; it is far more likely to be a minor
correction. We are a little bit more aggressive on the municipal market
right now because it is a much more benign investment climate than it was,
and we think that current interest rates represent very fair value.
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<PAGE>
We also believe that the supply and demand characteristics are very
positive for the municipal market and will moderate its volatility. In
terms
of demand, the Clinton tax package makes tax-exempt income for the
individual investor even more valuable than it was in the past. And there
is
also a great deal of institutional participation in our marketplace, which
we haven't seen for a long time.
In terms of supply, we anticipate a tremendous cutback in the supply
of
municipals coming in the market as a result of the rise in interest rates.
Over the next few years, the supply of municipal bonds could decline by 50
percent below 1993's record level. And because of this, we think that
tax-exempt securities will perform substantially better than taxable
issues.
As for the Portfolio's dividends, at their June meeting, the Board of
Directors approved an amendment to the Portfolio's Dividend Reinvestment
Plan. Under the Plan, a shareholder can elect to have dividends
automatically reinvested in shares of the Portfolio. If the net asset
value
per share of the Portfolio's stock at the time of valuation for purposes
of
the dividend distribution exceeds the market price of the stock, or if the
Portfolio declares a dividend or capital gains distribution payable only
in
cash, the Plan's purchasing agent will buy shares of the Portfolio in the
open market for the plan participants' accounts. Under the current Plan,
these purchases commence on the dividend payment date. The Directors
revised
the Plan to provide that the purchasing agent may commence purchases of
Portfolio shares on the open market as of record date in anticipation of
the
dividend payment. It is hoped that this will decrease the cost of the
repurchased shares by increasing the amount of time over which such
purchases will be made, so that purchases on the open market will not be
compacted into a small window following the payment date. This revision
will
be effective upon the first dividend declaration after September 1, 1994.
In closing, we would like to remind you that the stock price of the
Portfolio is reported in most daily newspapers in the listings for
securities traded on the New York Stock Exchange under the abbreviation
"MgdMUII" or its stock symbol "MTU." The weekly closing price and its net
asset value per share are reported in BARRON'S and the Monday edition of
THE
WALL STREET JOURNAL. If you have any questions
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<PAGE>
or comments about your investment in the Portfolio, please contact The
Shareholder Services Group, Inc. at (800) 331-1710. We look forward to
reporting to you in August in the Portfolio's Annual Report.
Sincerely,
Heath B. McLendon Joseph P. Deane
CHAIRMAN OF THE BOARD VICE PRESIDENT AND
INVESTMENT OFFICER
July 13, 1994
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<PAGE>
UNAUDITED FINANCIAL DATA
PER SHARE OF COMMON STOCK
<TABLE>
<CAPTION>
NYSE NET ASSET DIVIDEND CAPITAL
GAINS
CLOSING PRICE VALUE PAID DIVIDEND
PAID
------------- --------- --------- -----------
- - --
<S> <C> <C> <C> <C>
September 30, 1993..... $12.500 $13.44 $0.061 --
October 31, 1993....... 12.375 13.49 0.061 --
November 30, 1993...... 12.500 13.29 0.061 --
December 31, 1993...... 12.125 12.95 -- $0.59
January 31, 1994....... 12.375 12.95 0.061 --
February 28, 1994...... 12.000 12.71 0.061 --
March 31, 1994......... 11.375 12.08 0.061 --
April 30, 1994......... 11.500 12.08 0.061 --
May 31, 1994........... 11.250 12.07 0.061 --
</TABLE>
DIVIDEND DATA*
MAY 31, 1994
<TABLE>
<CAPTION>
EQUIVALENT TAXABLE DISTRIBUTION RATE
-----------------------------------------------
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PER SHARE ANNUALIZED ASSUMING ASSUMING ASSUMING
ASSUMING
DIVIDEND DISTRIBUTION 28% FEDERAL 31% FEDERAL 36% FEDERAL 39.6%
FEDERAL
DISTRIBUTIONS RATE** TAX BRACKET TAX BRACKET TAX BRACKET TAX
BRACKET
------------- ------------ ----------- ----------- ----------- --------
- - -----
<S> <C> <C> <C> <C> <C>
$0.061 6.06% 8.42% 8.78% 9.47%
10.03%
<FN>
------------
* Based on May 31, 1994 net asset value of $12.07 per share.
** Does not include capital gains dividend of $0.59 per share.
</TABLE>
Each registered shareholder is considered a participant in the Fund'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
MAY 31, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
KEY TO INSURANCE ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance 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--100.7%
ALASKA -- 5.6%
$ 3,145,000 Alaska Industrial Development & Exploration, Series A,
6.500% due 4/1/14
A A- $ 3,125,344
5,000,000 Valdez, Alaska, Marine Terminal Revenue, Series C, 5.650%
due 12/1/28
A1 AA- 4,456,250
CALIFORNIA -- 4.4%
2,000,000 Los Angeles County, California, Metropolitan District
Sales Tax Revenue, 5.250% due 7/1/23
Aaa AAA 1,707,500
835,000 Redding, California, Joint Powers Filing, Solid Waste and
Corporation Yard, Series A, 5.000% due 1/1/05
A BBB+ 764,025
10,000,000 San Joaquin Hills, California, Transportation Corridor
Agency, Toll Road Revenue, Senior Lien,
Zero Coupon due 1/1/20
NR NR 1,575,000
1,850,000 Torrance, California, (Little Company of Mary Hospital),
6.875% due 7/1/15
NR A 1,884,687
COLORADO -- 9.7%
4,000,000 Colorado Springs, Colorado, Airport Revenue, Series A,
7.000% due 1/1/22
NR BBB 4,085,000
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
MAY 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)
$30,000,000 Dawson Ridge, Colorado, Metropolitan District #1,
Zero Coupon due 10/1/22
Aaa NR $ 3,900,000
6,250,000 Denver, Colorado, Airport Revenue, Series C, 6.125% due
11/15/25
Baa BBB 5,109,375
CONNECTICUT -- 4.2%
6,000,000 Connecticut State, Resource Recovery Project, (American
Fuel Company Project), Series A, 6.450% due 11/15/22
A2 A+ 5,640,000
FLORIDA -- 3.2%
4,000,000 Tampa, Florida, Revenue Bonds, (Aquarium Project), 7.750%
due 5/1/27
NR NR 4,270,000
GEORGIA -- 4.3%
6,000,000 Atlanta, Georgia, Airport Facilities Revenue, Series B,
6.000% due 1/1/21
Aaa AAA 5,782,500
HAWAII -- 1.4%
2,000,000 Honolulu, Hawaii, City & County Refunding, Series B,
5.500% due 10/1/11
Aa AA 1,892,500
ILLINOIS -- 1.3%
2,000,000 Illinois Educational Facilities Authority Revenue, 5.700%
due 12/1/25
Aaa AA 1,817,500
IOWA -- 1.1%
1,500,000 Dawson City, Iowa, Industrial Development Revenue,
(Cargill Inc., Project), 6.500% due 7/15/12
NR NR 1,539,375
MAINE -- 3.5%
5,000,000 Maine Municipal Bond Bank, Refunding Revenue, Series A,
5.500% due 11/1/09
Aa A+ 4,706,250
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
MAY 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)
MARYLAND -- 4.8%
$ 2,720,000 Anne Arundel County, Maryland, Water and Sewer Revenue,
5.250% due 4/15/11
Aa1 AA+ $ 2,502,400
500,000 Baltimore County, Maryland, Mortgage Revenue, Finance
Housing Authority, 5.750% due 11/1/20
NR AAA 460,625
2,140,000 Maryland State Community Development Administration,
Housing Department, 6.450% due 4/1/14
Aa NR 2,148,025
1,650,000 Prince George's County, Maryland, Refunding Revenue,
5.300% due 7/1/24
A NR 1,348,875
MASSACHUSETTS -- 1.4%
2,000,000 Commonwealth of Massachusetts, Conservation Loan, Series
D, 5.750% due 5/1/12
A A+ 1,930,000
MICHIGAN -- 7.4%
1,000,000 Michigan State Strategic Funding, Limited Obligation
Revenue, (Blue Water Fiber Project),
8.000% due 1/1/12
NR NR 980,000
5,600,000 Midland County, Michigan, Economic Development
Corporation, Pollution Control Revenue, Limited
Obligation, Series B, 9.500% due 7/23/09
NR NR 6,181,000
3,000,000 University of Michigan, Hospital Revenue, Series A, 5.750%
due 12/1/12
Aa AA 2,910,000
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
MAY 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)
MONTANA -- 1.4%
$ 2,000,000 Montana State Board Investment Resources Recovery,
(Yellowstone Energy Project),
7.000% due 12/31/19
NR NR $ 1,922,500
NEVADA -- 3.6%
4,650,000 Clark County, Nevada, Industrial Development Revenue,
(Southwest Gas Corporation), 7.500% due 9/1/32
Ba1 BBB- 4,859,250
NEW HAMPSHIRE -- 1.9%
3,000,000 New Hampshire Higher Education & Health Revenue, (Mary
Hitchcock Memorial Hospital), 5.250% due 8/15/21
Aaa AAA 2,583,750
NEW JERSEY -- 1.1%
1,500,000 Union County, New Jersey, Utilities Authority, Solid Waste
Revenue, Series A, 7.200% due 6/15/14
NR A- 1,539,375
NEW YORK -- 12.2%
New York State Dormitory Authority Revenue:
1,880,000 (City University), 5.750% due 7/1/06
Baa1 BBB 1,851,800
5,000,000 (State University Educational Facilities), Series A,
5.500% due 5/15/06
Baa1 BBB+ 4,843,750
1,000,000 New York State Housing Finance Authority, Mortgage
Revenue, Multifamily Housing, Series A, 6.250% due 8/15/25
Aa NR 956,250
6,555,000 New York State Local Government Assistance, Series C,
5.500% due 4/1/22
A A 5,842,144
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
MAY 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)
NEW YORK (CONTINUED)
$ 3,000,000 New York State Medical Care Facilities, Financing Agency
Revenue,
6.500% due 2/15/34
Aa AA $ 3,015,000
NORTH CAROLINA -- 2.5%
2,000,000 Charlotte, North Carolina, Certificates of Participation,
(Convention Facilities Project), Series C, (AMBAC
insured), 5.250% due 12/1/13
Aaa AAA 1,800,000
1,500,000 Coastal Regional Solid Waste Management Disposal
Authority, North Carolina, Solid Waste Revenue, 6.500% due
6/1/08
A BBB 1,524,375
OHIO -- 0.7%
1,000,000 Franklin County, Ohio, Tax & Leasing Revenue, Convention
Facilities, (MBIA insured), 5.850% due 12/1/19
Aaa AAA 968,750
PENNSYLVANIA -- 2.4%
3,500,000 Pennsylvania State, Economic Development Financing
Authority, Recovery Revenue, (Northampton Generating),
6.600% due 1/1/19
NR NR 3,298,750
RHODE ISLAND -- 6.4%
Rhode Island Housing & Mortgage Finance Agency, Home
Ownership Revenue:
850,000 5.850% due 4/1/13
Aa AA+ 786,250
3,000,000 6.750% due 10/1/25
Aa AA+ 3,033,750
5,250,000 Rhode Island State, Public Buildings Authority, (AMBAC
insured),
5.250% due 2/1/09
Aaa AAA 4,823,437
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
MAY 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)
SOUTH CAROLINA -- 4.6%
Myrtle Beach, South Carolina, (Myrtle Beach Convention
Center), Certificates of Participation:
$ 2,120,000 6.875% due 7/1/07
Baa1 BBB+ $ 2,154,450
4,000,000 6.875% due 7/1/17
Baa1 BBB+ 4,025,000
TEXAS -- 5.8%
3,000,000 Port Arthur, Texas, Navigation District,
6.000% due 3/1/15
Aaa AAA 2,962,500
5,000,000 Sam Rayburn, Texas, Municipal Power Agency, 6.750% due
10/1/14
Baa BB 4,862,500
VIRGINIA -- 0.9%
1,265,000 Virginia State, Resource Authority, Solid Waste Disposal,
Series B, 5.500% due 5/1/06
NR AA 1,238,119
WEST VIRGINIA -- 2.2%
3,000,000 Marion County, West Virginia, Community Solid Waste
Disposal Facilities Revenue, 7.750% due 12/1/11
NR NR 2,936,250
WISCONSIN -- 2.7%
2,000,000 Wisconsin Housing & Economic Development Authority, Home
Ownership, Series A,
6.450% due 3/1/17
Aa AA 2,005,000
2,000,000 Wisconsin State Health and Educational Facilities, Aurora,
Healthcare Obligation Revenue,
5.250% due 8/15/23
Aaa AAA 1,705,000
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TOTAL MUNICIPAL BONDS AND NOTES
(COST $137,814,603)
$136,254,181
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</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
MAY 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>
SHORT-TERM TAX-EXEMPT INVESTMENTS -- 2.2%
ARIZONA -- 0.1%
$ 200,000 Phoenix, Arizona, Series 2, 3.000% due 6/1/18+
VMIG-1 A-1+ $ 200,000
DELAWARE -- 0.4%
500,000 Wilmington, Delaware, Hospital Revenue, Series A, 2.850%
due 7/1/11+
VMIG-1 A-1+ 500,000
LOUISIANA -- 0.1%
200,000 East Baton Rouge Parish, Louisiana, Revenue Bonds, 3.200%
due 6/1/98+
Aaa NR 200,000
NEW YORK -- 1.5%
2,000,000 New York City, New York, Adjustable Rate, General
Obligation Bonds, Sub-Series A-4, 3.200% due 8/1/21+
VMIG-1 A-1+ 2,000,000
TEXAS -- 0.1%
100,000 Gulf Coast Waste Disposal Authority, (Amoco Project),
3.100% due 8/1/23+
VMIG-1 A-1+ 100,000
TOTAL SHORT-TERM TAX-EXEMPT INVESTMENTS
(COST $3,000,000)
$ 3,000,000
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TOTAL INVESTMENTS
(COST $140,814,603*)
102.9% 139,254,181
OTHER ASSETS AND LIABILITIES (NET)
(2.9) (3,874,244)
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NET ASSETS
100.0% $135,379,937
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<FN>
* Aggregate cost for Federal tax purposes.
+ Variable rate municipal bonds and notes are payable upon not more than one
business day's notice.
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
PORTFOLIO OF INVESTMENTS
MAY 31, 1994 (UNAUDITED) (CONTINUED)
SUMMARY OF MUNICIPAL BONDS BY COMBINED RATINGS
<TABLE>
<CAPTION>
PERCENT
MOODY'S S & P OF VALUE
<S> <C> <C> <C>
Aaa or AAA 21.2 %
Aa AA 21.3
A A 16.9
Baa BBB 21.8
VMIG-1 A-1 2.0
NR NR 16.8
---------
100.0 %
---------
---------
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
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<PAGE>
NOTES TO PORTFOLIO OF INVESTMENTS
MAY 31, 1994 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES.
Managed Municipals Portfolio II Inc. (the "Portfolio") was organized as a
corporation under the laws of the State of Maryland on July 23, 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 policies described below are followed consistently by
the
Portfolio in the valuation of its portfolio.
PORTFOLIO VALUATION: Investments are valued by The Boston Company Advisors,
Inc. ("Boston Advisors") 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.
FUTURES CONTRACTS: Upon entering into a futures contract, the Portfolio is
required to deposit with the broker an amount of cash or cash equivalents
equal
to a certain percentage of the contract amount. This is known as the "initial
margin." Subsequent payments ("variation margin") are made or received by the
Portfolio each day, depending on the daily fluctuation of the value of the
contract.
For financial statement purposes, an amount equal to the settlement amount
of
the contract is included in its Statement of Assets and Liabilities as an
asset
and as an equivalent liability. For long futures positions, the asset is
marked-to-market daily. For short futures positions, the liability is
marked-to-market daily. The daily changes in the contract are recorded as
unrealized gains or losses. The Portfolio recognizes a realized gain or loss
when the contract is closed.
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<PAGE>
NOTES TO PORTFOLIO OF INVESTMENTS
MAY 31, 1994 (UNAUDITED) (CONTINUED)
There are several risks in connection with the use of futures contracts as
a
hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with
the
change in value of the hedged investments. In addition, there is the risk the
Portfolio may not be able to enter into a closing transaction because of an
illiquid secondary market.
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<PAGE>
NOTES TO PORTFOLIO OF INVESTMENTS
MAY 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>
------------------------------------------------------------------
- - ---------
NOVEMBER 30,
1992* $1,569,794 $.14 $1,322,744 $.12 $136,467 $.01
$1,459,211 $.13
FEBRUARY 28,
1993 2,224,608 .20 1,853,650 .16 11,113,679 .99
12,967,329 1.15
MAY 31, 1993 2,293,737 .20 1,954,811 .17 (896,302) (.08)
1,058,509 .09
AUGUST 31,
1993 2,259,898 .20 1,762,090 .16 4,727,465 .42
6,489,555 .58
NOVEMBER 30,
1993 2,192,534 .20 1,765,112 .16 2,478,339 .22
4,243,451 .38
FEBRUARY 28,
1994 2,185,398 .19 1,776,196 .16 (3,377,219) (.30)
(1,601,023) (.14)
MAY 31, 1994 2,214,185 .20 1,821,700 .16 11,695,051 1.04
13,516,751 1.20
- - ---------------------------------------------------------------------------
* The Portfolio commenced operations on September 24, 1992.
</TABLE>
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<PAGE>
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THIS REPORT IS SENT TO THE SHAREHOLDERS OF
MANAGED MUNICIPALS PORTFOLIO II 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 2247 G4
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