[TEXT]
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Managed Municipals
Portfolio II Inc.
Quarterly Report
May 31, 1998
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Managed Municipals
Portfolio II Inc.
May 31, 1998
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Dear Shareholder:
We are pleased to provide the quarterly report for the Managed Municipal
Portfolio II Inc. ("Fund") for the period ended May 31, 1998. Over the nine
months covered by this report, the Fund distributed income dividends totaling
$0.43 per share. The table below shows the annualized distribution rate and
nine-month total return based on the Fund's May 31, 1998 net asset value ("NAV")
per share and its New York Stock Exchange ("NYSE") closing price.
<TABLE>
<CAPTION>
Price Annualized Nine-Month
Per Share Distribution Rate* Total Return
--------- ------------------ ------------
<S> <C> <C> <C>
$12.41(NAV) 4.83% 7.52%
$11.063(NYSE) 5.42% (0.37)%
</TABLE>
In comparison, general closed-end municipal bond funds posted an average
total return on NAV of 8.20% for the same time period, as reported by Lipper
Analytical Services, Inc. (Lipper is a major fund-tracking organization.)
Municipal Bond Market Update
The past year under review has seen a clear dichotomy develop between
domestic and international pressures on the bond markets. Recently, the weakness
in Southeast Asia has kept inflationary pressures low and has provided a soft
economic backdrop, which in turn has helped to support bond prices. With respect
to the U.S. economy, the data has been quite different and indicates powerful
economic growth, tight labor markets and some signs of higher inflationary
pressures. These conditions would normally point to a Federal Reserve Board
("Fed") tightening of short-term interest rates and weakening bond prices.
However, Asia's problems have put Fed monetary policy temporarily on hold and
have
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* This distribution assumes that the current monthly income dividend rate of
$0.05 per share will be paid for twelve months.
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created a classic standoff between the bulls and the bears. Some investors may
perceive this standoff as relative calm in a market that is actually more
turbulent than it may appear. While the market may seem calm on the surface,
pressures from both viewpoints are building. We expect that one side will
ultimately prevail and become dominant, probably before the end of the year. In
our opinion, current domestic concerns should outweigh foreign considerations
among Fed policy-makers.
Investment Strategy
The yield curve has become extremely flat in the last few months. (The
yield curve shows the difference between short- and long-term yields.) That
means there is little extra yield being offered by owning longer maturity bonds
and taking on the added risks of higher interest rate volatility.
We have attempted to increase the Fund's coupon and decrease its average
maturity from where we were last year. (Coupon is the interest rate on a debt
security the issuer promises to pay to the holder until maturity, expressed as
an annual percentage of face value. Average maturity is a dollar weighted
average maturity of bonds contained in the portfolio.) While this may be a more
conservative investment strategy, for us this appears to be a rare opportunity
to come in shorter on the yield curve in the municipal bond market without any
appreciable sacrifice in the income stream. With today's low interest rates, we
think our strategy is prudent.
As of May 31, 1998, approximately 82% of the Fund's holdings were rated
investment grade (BBB/Baa and higher) by either Standard & Poor's Ratings Group
or Moody's Investor Service Inc., with about 49% of the Fund invested in AAA/Aaa
bonds, the highest rating. (Investment-grade bonds are those rated in one of the
four highest ratings categories by nationally recognized statistical rating
organization, or determined by the manager to be of equivalent quality.) The
Fund's largest holdings are concentrated in general obligation bonds (11.5%),
transportation bonds (10.6%) and water and sewer bonds (9.7%).
Municipal Bond Market Outlook
Municipal bonds today trade at approximately 90% of 30-year U.S. Treasury
bonds, which is an extremely attractive after-tax spread. U.S. Treasury bond
rates have been pushed down by several forces, but most recently by foreign
capital exiting Asia in a "flight to quality." Because these foreign investors
do not gain any benefit from tax-exempt income, municipal bonds have not
appreciated as much as U.S.
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Treasurys of late. It also means that when the tide turns, the Fund's currently
more defensive investment strategy should hold us in good stead in any future
market sell-off.
We have also seen a significant increase in the volume of new issues in the
municipal bond market taking advantage of historically low interest rates. We
believe the municipal market is comparatively inexpensive and provides us with a
broad spectrum of securities to choose from. For us, that means the issues we
will consider will probably remain high in credit quality and somewhat shorter
in maturity than in past market cycles.
In closing, thank you for investing in the Managed Municipals Portfolio II
Inc. We look forward to continuing to help you pursue your financial goals.
Sincerely,
/s/ HEATH B. MCLENDON /s/ J.P. DEANE
Heath B. McLendon Joseph P. Deane
Chairman Vice President and
Investment Officer
June 30, 1998
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Take Advantage of the Fund's Dividend Reinvestment Plan!
Did you know that fund investors who reinvest their dividends are taking
advantage of one of the most effective wealth-building tools available today?
Systematic investments put time to work for you through the strength of
compounding.
As an investor in the Fund, you can participate in its Dividend Reinvestment
Plan ("Plan"), a convenient, simple and efficient way to reinvest your dividends
and capital gains, if any, in additional shares of the Fund. The Fund's complete
Plan begins on page 23. Below is a short summary of how the Plan works.
Plan Summary
If you are a Plan participant who has not elected to receive your dividends in
the form of a cash payment, then your dividend and capital gain distributions
will be reinvested automatically in additional shares of the Fund.
The number of common stock shares in the Fund you will receive in lieu of a cash
dividend is determined in the following manner. If the market price of the
common stock is equal to or exceeds the net asset value ("NAV") per share on the
date of valuation, you will be issued shares for the equivalent of the most
recently determined NAV per share or 95% of the market price, whichever is
greater.
If the NAV per share at the time of valuation is greater than the market price
of the common stock, or if the Fund declares a dividend or capital gains
distribution payable only in cash, the Fund will buy common stock for your
account in the open market or on the New York Stock Exchange.
If the Fund begins to purchase additional shares in the open market and the
market price of the shares subsequently rises above the NAV before the purchases
are completed, the Fund will attempt to cancel any remaining orders and issue
the remaining dividend or distribution in shares at the Fund's NAV per share. In
that case, the number of Fund shares you receive will be based on the weighted
average of prices paid for shares purchased in the open market and the price at
which the Fund issues the remaining shares.
To find out more detailed information about the Dividend Reinvestment Plan and
about how you can participate, please call First Data Investors Services Group
at (800) 331-1710.
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Schedule of Investments
May 31, 1998 (unaudited)
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<TABLE>
<CAPTION>
Face
Amount Ratings Security Value
===================================================================================
<S> <C> <C> <C>
Alaska -- 2.2%
$ 2,895,000 A2* Alaska Industrial Development & Export
Authority, Series A, 6.500% due 4/1/14(a) $ 3,075,937
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California -- 11.8%
2,500,000 Baa3* California Educational Facilities Authority
Revenue, (Pooled College & University
Projects), Series A, 5.625% due 7/1/23 2,528,125
1,000,000 AAA California Health Facilities Finance Authority
Revenue, UCSF-Stanford Health Care,
Series A, FSA-Insured, 5.000% due 11/15/18 985,000
5,105,000 AAA Los Angeles, CA Metropolitan Transportation
Authority, Sales Tax Revenue, Series A,
MBIA-Insured, 5.250% due 7/1/18 5,168,812
1,000,000 AAA Los Angeles, CA Public Works Finance
Authority Revenue, Series A, Multiple
Capital Facilities, (Project V),
AMBAC-Insured, 5.125% due 6/1/17 1,003,750
Metropolitan Water District, Southern
California Water Works:
1,465,000 AA Series A, 5.000% due 7/1/16 1,457,675
2,500,000 AAA Series B, MBIA-Insured,
4.750% due 7/1/21 2,368,750
2,200,000 AAA Roseville, CA Water Utility Revenue, COP,
FGIC-Insured, 5.200% due 12/1/18 2,211,000
1,000,000 AAA San Jose, CA Redevelopment Agency,
(Tax Revenue Project), MBIA-Insured,
5.250% due 8/1/16 1,015,000
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16,738,112
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Colorado -- 15.8%
1,000,000 Aaa* Arapahoe County, CO Capital Improvement
Transportation Fund, Highway Revenue,
(Pre-Refunded -- Escrowed with
U.S. government securities to 8/31/05
Call @ 103), 7.000% due 8/31/26 1,192,500
4,000,000 BBB+ Colorado Springs, CO Airport Revenue,
Series A, 7.000% due 1/1/22(a)(b) 4,375,000
30,000,000 Aaa* Dawson Ridge, CO Metropolitan District
No. 1, Series A, (Escrowed to maturity
with REFCO Strips), zero coupon bond
to yield 6.644% due 10/1/22 8,175,000
</TABLE>
See Notes to
Financial Statements.
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Schedule of Investments
May 31, 1998 (unaudited)(continued)
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<TABLE>
<CAPTION>
Face
Amount Ratings Security Value
===================================================================================
<S> <C> <C> <C>
Colorado -- 15.8% (continued)
Denver, CO Airport Revenue, Series C:
$ 3,465,000 Baa1* 6.125% due 11/15/25(a)(b) $ 3,620,925
2,785,000 NR Partially Escrowed to maturity
with U.S. government securities,
6.125% due 11/15/25(a)(b) 3,147,050
2,000,000 AAA E-470 Public Highway Authority,
CO Revenue, Series A, MBIA-Insured,
5.000% due 9/1/15 1,987,500
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22,497,975
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District of Columbia -- 0.7%
1,000,000 AAA District of Columbia Revenue, American
Association for the Advancement of Science,
AMBAC-Insured, 5.125% due 1/1/27 990,000
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Florida -- 4.5%
1,500,000 BBB- Martin County, FL IDA, Indiantown
Cogeneration, Series A, 7.875%
due 12/15/25(a) 1,745,625
4,000,000 NR Tampa, FL Revenue Bonds, (Florida Aquarium
Inc. Project), (Pre-Refunded -- Escrowed
with U.S. government securities to 5/1/02,
Call @ 102), 7.750% due 5/1/27(b)(c) 4,585,000
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6,330,625
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Hawaii -- 1.4%
2,000,000 AAA Hawaii State GO, Series CP, FGIC-Insured,
5.000% due 10/1/16 1,975,000
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Illinois -- 3.0%
1,000,000 Aaa* Illinois Health Facilities Authority,
Memorial Health System, MBIA-Insured,
5.250% due 10/1/18 1,007,500
Kane County, IL GO School District No. 129,
Aurora West Side, FGIC-Insured:
590,000 Aaa* 5.500% due 2/1/11 620,975
675,000 Aaa* 5.500% due 2/1/12 707,062
1,000,000 Aaa* 5.125% due 2/1/14 1,007,500
1,000,000 Aaa* 5.000% due 2/1/16 990,000
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4,333,037
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Iowa -- 1.2%
1,500,000 AA- Dawson, IA IDR, (Cargill Inc. Project),
6.500% due 7/15/12 1,631,250
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</TABLE>
See Notes to
Financial Statements.
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Schedule of Investments
May 31, 1998 (unaudited)(continued)
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<TABLE>
<CAPTION>
Face
Amount Ratings Security Value
===================================================================================
<S> <C> <C> <C>
Maryland -- 0.9%
$ 4,000,000 NR Maryland State Energy Financing
Administration, Solid Waste Disposal
Revenue, (Hagerstown Recycling Project),
9.000% due 10/15/16(a)(d) $ 1,240,000
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Massachusetts -- 3.2%
4,000,000 NR Massachusetts Solid Waste Disposal Revenue,
Massachusetts Recycling Association,
Series A, 9.000% due 8/1/16(a)(d) 1,500,000
1,000,000 AAA Massachusetts State Housing Finance Agency,
Housing Development, Series B,
MBIA-Insured, 5.300% due 12/1/17 1,007,500
Massachusetts State Water Resource Authority,
MBIA-Insured:
1,000,000 AAA Series B, 5.000% due 12/1/25 975,000
1,000,000 AAA Series C, 5.250% due 12/1/20 1,005,000
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4,487,500
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Michigan -- 7.1%
4,000,000 NR Michigan State Strategic Fund Resource
Recovery, Central Wayne Energy, Series A,
7.000% due 7/1/27 4,015,000
5,600,000 NR Midland County, MI Economic Development
Corp., PCR, Limited Obligation, Series B,
9.500% due 7/23/09(a)(b) 6,160,000
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10,175,000
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Missouri -- 1.4%
1,000,000 AAA Fenton, MO COP (Capital Improvements
Project), MBIA-Insured, 5.125% due 9/1/17 1,001,250
1,000,000 AAA St. Louis, MO Board of Education, GO,
Missouri Direct Deposit Program, Series B,
FGIC-Insured, 5.000% due 4/1/16 993,750
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1,995,000
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Montana -- 1.4%
2,000,000 NR Montana State Board of Investments Resource
Recovery, (Yellowstone Energy Project),
7.000% due 12/31/19(a) 2,032,500
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Nevada -- 3.6%
4,650,000 Baa2* Clark County, NV IDR, Southwest Gas
Corporation, 7.500% due 9/1/32(a)(b) 5,167,312
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</TABLE>
See Notes to
Financial Statements.
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================================================================================
Schedule of Investments
May 31, 1998 (unaudited)(continued)
================================================================================
<TABLE>
<CAPTION>
Face
Amount Ratings Security Value
===================================================================================
<S> <C> <C> <C>
New Jersey -- 2.3%
$ 780,000 AAA Essex County, NJ Improvement Authority
Revenue, Utility System (Orange Franchise),
Series A, MBIA-Insured, 5.375% due 7/1/18 $ 803,400
1,000,000 AAA Middlesex County, NJ COP, MBIA-Insured,
5.200% due 6/15/18 1,013,750
1,500,000 BB Union County, NJ Utilities Authority,
Solid Waste Revenue, Series A,
7.200% due 6/15/14(a) 1,503,750
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3,320,900
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New York -- 7.1%
Long Island Power Authority, NY Electric
System Revenue, Series A:
2,000,000 A- 5.500% due 12/1/29 2,020,000
1,000,000 AAA FSA-Insured, 5.000% due 12/1/18 982,500
New York State Dormitory Authority Revenue:
1,135,000 AAA Barnard College, AMBAC-Insured,
5.250% due 7/1/16 1,150,606
1,000,000 AAA City University System, Series A,
FGIC-Insured, 5.000% due 7/1/16 990,000
1,500,000 AAA Mental Health Services Facilities,
FSA-Insured, 5.125% due 8/15/17 1,503,750
1,000,000 AAA Montefiore Medical Center, AMBAC/FHA-
Insured, 5.250% due 2/1/15 1,016,250
1,000,000 AAA Municipal Health Facility Improvement,
Series A, FSA-Insured, 5.500% due 5/15/16 1,043,750
1,500,000 AAA New York State Local Government Assistance
Corp., Series B, MBIA-Insured,
4.875% due 4/1/20 1,453,125
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10,159,981
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North Carolina -- 1.1%
1,500,000 A* Coastal Regional Solid Waste Management
Disposal Authority, North Carolina Solid
Waste Revenue, 6.500% due 6/1/08 1,616,250
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Ohio -- 0.9%
1,220,000 AAA Ohio State Higher Educational Facility
Community Revenue, University of Dayton,
AMBAC-Insured, 5.350% due 12/1/17 1,261,175
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</TABLE>
See Notes to
Financial Statements.
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================================================================================
Schedule of Investments
May 31, 1998 (unaudited)(continued)
================================================================================
<TABLE>
<CAPTION>
Face
Amount Ratings Security Value
===================================================================================
<S> <C> <C> <C>
Pennsylvania -- 1.7%
$ 2,500,000 AAA Altoona, PA City Authority Water Revenue,
FGIC-Insured, 5.000% due 11/1/19 $2,456,250
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Puerto Rico -- 0.7%
1,000,000 AAA Puerto Rico Commonwealth Infrastructure
Financing Authority, Series A,
AMBAC-Insured, 5.000% due 7/1/16 1,003,750
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South Carolina -- 4.5%
2,000,000 AAA Lexington County, SC Health Services District,
Hospital Revenue, FSA-Insured,
5.250% due 11/1/17 2,030,000
2,120,000 A3* Myrtle Beach, SC COP, Myrtle Beach
Convention Center, 6.875% due 7/1/07 2,371,750
2,000,000 AAA Piedmont Municipal Power Agency, South
Carolina Electric Revenue, Series A,
MBIA-Insured, 4.875% due 1/1/16 1,945,000
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6,346,750
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Tennessee -- 0.7%
1,000,000 AA Metropolitan Government Nashville & Davidson
County, TN Electrical Revenue, Series A,
5.125% due 5/15/15 1,006,250
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Texas -- 8.4%
2,000,000 Aaa* Amarillo, TX Health Facilities Corp., Baptist
St. Anthony's Hospital Corp., FSA-Insured,
5.000% due 1/1/22 1,937,500
1,000,000 Aaa* Azle, TX ISD, PSFG, Series C,
5.000% due 2/15/22 980,000
Burleson, TX ISD, GO, PSFG:
435,000 Aaa* 6.750% due 8/1/24 488,287
1,065,000 Aaa* Pre-Refunded -- Escrowed with
U.S. government securities to 8/1/06,
Call @ 100, 6.750% due 8/1/24(c) 1,239,394
1,000,000 AA Harris County, TX GO, (Toll Road Sub Lien),
5.125% due 8/15/17 1,003,750
1,500,000 AAA Leander, TX ISD, PSFG, 5.625% due 8/15/16 1,530,900
1,830,000 AA Texas State GO, Water Development, Series D,
5.000% due 8/1/16 1,818,563
1,500,000 AAA Texas Water Development Board Revenue,
State Revolving Fund, Senior Lien-B,
5.000% due 7/15/15 1,507,500
</TABLE>
See Notes to
Financial Statements.
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================================================================================
Schedule of Investments
May 31, 1998 (unaudited)(continued)
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<TABLE>
<CAPTION>
Face
Amount Ratings Security Value
===================================================================================
<S> <C> <C> <C>
Texas -- 8.4% (continued)
$ 1,510,000 AAA West Texas Municipal Power Agency Revenue,
MBIA-Insured, 5.000% due 2/15/16 $ 1,493,013
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11,998,907
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Virgin Islands -- 0.7%
1,000,000 BBB- Virgin Islands Public Finance Authority Revenue,
Series A, 5.500% due 10/1/22 1,013,750
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Virginia -- 8.5%
2,000,000 AAA Riverside, VA Regional Jail Facility,
Revenue Bonds, MBIA-Insured,
6.000% due 7/1/25 2,175,000
2,000,000 AA Virginia College Building Authority,
VA Educational Facilities Revenue,
(21st Century College Program),
5.125% due 8/1/11 2,075,000
Virginia State Housing Development Authority:
1,245,000 AA+ Commonwealth Mortgage, Series D,
5.700% due 7/1/09 1,316,588
1,000,000 AAA Mortgage Housing Revenue, MBIA-Insured,
5.600% due 7/1/12 1,062,500
4,210,000 AA+ Series F, 6.400% due 7/1/17 4,478,388
925,000 AA+ Series K, 5.900% due 11/1/11 979,344
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12,086,820
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Washington -- 0.7%
1,000,000 AAA Washington State Public Power Supply System,
(Nuclear Project No. 2), Series A,
FSA-Insured, 5.125% due 7/1/11 1,020,000
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West Virginia -- 1.3%
Marion County, WV County Commissioner,
Solid Waste Disposal Facilities Revenue,
Adirondak Recycling, Series A:
1,645,517 NR 8.000% due 12/1/25(a) 1,645,517
229,975 NR 10.000% due 12/1/25(a) 229,975
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1,875,492
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Wisconsin -- 3.2%
Wisconsin Housing & Economic Development
Authority, Series A:
2,000,000 AA Home Ownership Revenue,
6.450% due 3/1/17 2,142,500
</TABLE>
See Notes to
Financial Statements.
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================================================================================
Schedule of Investments
May 31, 1998 (unaudited)(continued)
================================================================================
<TABLE>
<CAPTION>
Face
Amount Ratings Security Value
===================================================================================
<S> <C> <C> <C>
Adirondak Recycling,Wisconsin -- 3.2% (continued)
$ 1,370,000 A1* Housing Revenue, 5.650% due 11/1/23 $ 1,392,263
1,000,000 AAA Wisconsin State Health & Educational
Facilities, The Medical College of Wisconsin,
MBIA-Insured, 5.400% due 12/1/16 1,025,000
- -----------------------------------------------------------------------------------
4,559,763
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $137,963,997**) $142,395,286
============
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</TABLE>
(a) Income from this issue is considered a preference item for purposes of
calculating the alternative minimum tax.
(b) Security segregated by Custodian for open purchase commitment.
(c) Pre-Refunded bonds escrowed with U.S. government securities are considered
by the investment adviser to be triple-A rated even if issuer has not
applied for new ratings.
(d) Security is in default.
** Aggregate cost for Federal income tax purposes is substantially the same.
See pages 12 and 13 for definition of ratings and certain security
descriptions.
<TABLE>
<CAPTION>
================================================================================
Summary of Investments by Combined Ratings
May 31, 1998 (unaudited)
================================================================================
================================================================================
Percent of
Moody's and/or Standard & Poor's Total Investments
================================================================================
<S> <C> <C>
Aaa AAA 48.8%
Aa AA 12.6
A A 7.4
Baa BBB 13.0
BB BB 1.0
NR NR 17.2
-----
100.0%
=====
================================================================================
</TABLE>
See Notes to
Financial Statements.
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================================================================================
Bond Ratings
(unaudited)
================================================================================
All ratings are by Standard & Poor's Ratings Service ("Standard & Poor's"),
except those identified by an asterisk (*) are rated by Moody's Investors
Service, Inc. ("Moody's"). The definitions of the applicable rating symbols are
set forth below:
Standard & Poor's -- Ratings from "AA" to "BB" 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 to a debt obligation. 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 they are somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than bonds
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 bonds in this category than in higher
rated categories.
BB -- Bonds rated "BB" have less near-term vulnerability to default than
other speculative issues. However, it faces major ongoing
uncertainties or exposure to adverse business, financial, or economic
conditions which could lead to inadequate capacity to meet timely
interest and principal payments.
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 is the lowest ranking within
its generic category.
Aaa -- Bonds 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 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 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 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.
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================================================================================
Short-Term Security Ratings
(unaudited)
================================================================================
SP-1 -- Standard & Poor's highest rating indicating very strong or strong
capacity to pay principal and interest; those issued determined
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.
A-2 -- Standard & Poor's second highest commercial paper and 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 -- Moody's highest rating for commercial paper and for VRDO prior to the
advent of the VMIG-1 rating.
================================================================================
Security Descriptions
(unaudited)
================================================================================
ABAG -- Association of Bay Area Governments
AIG -- American International Guaranty
AMBAC -- AMBAC Indemnity Corporation
BAN -- Bond Anticipation Notes
BIG -- Bond Investors Guaranty
CGIC -- Capital Guaranty Insurance Company
CHFCLI -- California Health Facility
Construction Loan Insurance
COP -- Certificate of Participation
EDA -- Economic Development Authority
FAIRS -- 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
FRTC -- Floating Rate Trust Certificates
FSA -- Financial Security Assurance
GIC -- Guaranteed Investment Contract
GNMA -- Government National Mortgage
Association
GO -- General Obligation
HDC -- Housing Development Corporation
HFA -- Housing Finance Authority
IDA -- Industrial Development Authority
IDB -- Industrial Development Board
IDR -- Industrial Development Revenue
IFA -- Industrial Finance Agency
INFLOS -- Inverse Floaters
ISD -- Independent School District
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance Corporation
MVRICS -- Municipal Variable Rate Inverse Coupon Security
PCR -- Pollution Control Revenue
PSFG -- Permanent School Fund Guaranty
RAN -- Revenue Anticipation Notes
RIBS -- Residual Interest Bonds
RITES -- Residual Interest Tax-Exempt Securities
SYCC -- Structured Yield Curve Certificate
TAN -- Tax Anticipation Notes
TECP -- Tax Exempt Commercial Paper
TOB -- Tender Option Bonds
TRAN -- Tax and Revenue Anticipation Notes
VA -- Veterans Administration
VRDD -- Variable Rate Daily Demand
VRWE -- Variable Rate Wednesday Demand
- -------------------------------------[LOGO]-------------------------------------
13
<PAGE>
<TABLE>
<CAPTION>
================================================================================
Statement of Assets and Liabilities
(unaudited)
================================================================================
May 31, 1998
================================================================================
<S> <C>
ASSETS:
Investments, at value (Cost -- $137,963,997) $ 142,395,286
Interest receivable 2,130,477
- --------------------------------------------------------------------------------
Total Assets 144,525,763
- --------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 4,366,918
Dividends payable 278,106
Payable to bank 229,566
Investment advisory fees payable 79,948
Administration fees payable 22,514
Accrued expenses 145,909
- --------------------------------------------------------------------------------
Total Liabilities 5,122,961
- --------------------------------------------------------------------------------
Total Net Assets $ 139,402,802
================================================================================
NET ASSETS:
Par value of capital shares $ 11,235
Capital paid in excess of par value 134,234,852
Overdistributed net investment income (74,897)
Accumulated net realized gain from security transactions 800,323
Net unrealized appreciation of investments 4,431,289
- --------------------------------------------------------------------------------
Total Net Assets
(Equivalent to $12.41 a share on 11,234,706 shares of $0.001
par value outstanding; 500,000,000 shares authorized) $ 139,402,802
================================================================================
</TABLE>
See Notes to
Financial Statements.
- -------------------------------------[LOGO]-------------------------------------
14
<PAGE>
<TABLE>
<CAPTION>
================================================================================
Statement of Operations
(unaudited)
================================================================================
Nine Months
Ended
5/31/98
================================================================================
<S> <C>
INVESTMENt INCOME:
Interest $ 5,729,272
- --------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees (Note 3) 721,986
Administration fees (Note 3) 206,282
Shareholder communications 96,174
Registration fees 40,358
Directors' fees 31,165
Audit and legal 22,977
Shareholder and system servicing fees 14,461
Pricing service fees 6,584
Custody 5,157
Other 5,438
- --------------------------------------------------------------------------------
Total Expenses 1,150,582
- --------------------------------------------------------------------------------
Net Investment Income 4,578,690
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTE 4):
Realized Gain From Security Transactions
(excluding short-term securities):
Proceeds from sales 87,069,680
Cost of securities sold 86,255,112
- --------------------------------------------------------------------------------
Net Realized Gain 814,568
- --------------------------------------------------------------------------------
Change in Net Unrealized Appreciation of Investments:
Beginning of period 197,972
End of period 4,431,289
- --------------------------------------------------------------------------------
Increase in Net Unrealized Appreciation 4,233,317
- --------------------------------------------------------------------------------
Net Gain on Investments 5,047,885
- --------------------------------------------------------------------------------
Increase in Net Assets From Operations $ 9,626,575
================================================================================
</TABLE>
See Notes to
Financial Statements.
- -------------------------------------[LOGO]-------------------------------------
15
<PAGE>
<TABLE>
<CAPTION>
================================================================================
Statements of Changes in Net Assets
================================================================================
Nine Months
Ended
5/31/98 Year Ended
(unaudited) 8/31/97
================================================================================
<S> <C> <C>
OPERATIONS:
Net investment income $ 4,578,690 $ 7,070,019
Net realized gain 814,568 2,550,959
Increase in net unrealized appreciation 4,233,317 2,730,988
- --------------------------------------------------------------------------------
Increase in Net Assets From Operations 9,626,575 12,351,966
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM (NOTE 2):
Net investment income (4,830,923) (7,353,773)
Net realized gains (1,909,900) (3,125,168)
- --------------------------------------------------------------------------------
Decrease in Net Assets From
Distributions to Shareholders (6,740,823) (10,478,941)
- --------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Net asset value of shares issued
for reinvestment of dividends -- 214,541
- --------------------------------------------------------------------------------
Increase in Net Assets From
Fund Share Transactions -- 214,541
- --------------------------------------------------------------------------------
Increase in Net Assets 2,885,752 2,087,566
NET ASSETS:
Beginning of period 136,517,050 134,429,484
- --------------------------------------------------------------------------------
End of period* $139,402,802 $136,517,050
================================================================================
* Includes undistributed (overdistributed)
net investment income of: $(74,897) $177,336
================================================================================
</TABLE>
See Notes to
Financial Statements.
- -------------------------------------[LOGO]-------------------------------------
16
<PAGE>
================================================================================
Notes to Financial Statements
(unaudited)
================================================================================
1. Significant Accounting Policies
Managed Municipals Portfolio II Inc. ("Fund"), a Maryland corporation, is
registered under the Investment Company Act of 1940, as amended, as a
non-diversified, closed-end management investment company.
The significant accounting policies consistently followed by the Fund are:
(a) security transactions are accounted for on trade date; (b) securities are
valued at the mean between bid and asked prices provided 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 are valued at cost plus accreted discount, or minus amortized
premium, 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 an accrual basis; market discount is recognized upon the
disposition of the security; (f) dividends and distributions to shareholders are
recorded on the ex-dividend date; (g) the character of income and gains to be
distributed are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. At August 31, 1997,
reclassifications were made to undistributed net investment income and
accumulated net realized gains to reflect permanent book/tax differences and
income and gains available for distributions under income tax regulations. Net
investment income, net realized gains and net assets were not affected by this
change; (h) 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; 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.
- -------------------------------------[LOGO]-------------------------------------
17
<PAGE>
================================================================================
Notes to Financial Statements
(unaudited)(continued)
================================================================================
2. Exempt-Interest Dividends and Other Distributions
The Fund intends to satisfy conditions that will enable interest from
municipal securities, which is exempt from regular 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.
3. Investment Advisory Agreement, Administration Agreement and Other
Transactions
Mutual Management Corp. ("MMC"), a subsidiary of Salomon Smith Barney
Holdings Inc. ("SSBH"), acts as investment adviser to the Fund. The Fund pays
MMC an advisory fee calculated at an annual rate of 0.70% of the average daily
net assets of the Fund. This fee is calculated daily and paid monthly.
MMC also acts as the Fund's administrator for which the Fund pays a fee
calculated at an annual rate of 0.20% of the average daily net assets. This fee
is calculated daily and paid monthly.
All officers and one Director of the Fund are employees of Smith Barney
Inc., another subsidiary of SSBH.
4. Investments
For the nine months ended May 31, 1998, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
<TABLE>
================================================================================
<S> <C>
Purchases $87,339,939
- --------------------------------------------------------------------------------
Sales 87,069,680
================================================================================
</TABLE>
At May 31, 1998, aggregate gross unrealized appreciation and depreciation
of investments for Federal income tax purposes were substantially as follows:
<TABLE>
================================================================================
<S> <C>
Gross unrealized appreciation $ 9,738,487
Gross unrealized depreciation (5,307,198)
- --------------------------------------------------------------------------------
Net unrealized appreciation $ 4,431,289
================================================================================
</TABLE>
- -------------------------------------[LOGO]-------------------------------------
18
<PAGE>
================================================================================
Notes to Financial Statements
(unaudited)(continued)
================================================================================
5. Futures Contracts
Initial margin deposits made upon entering into futures contracts are
recognized as assets. Securities equal to the initial margin amount are
segregated by the custodian in the name of the broker. Additional securities are
also segregated up to the current market value of the futures contracts. During
the period the futures contract is open, changes in the value of the contract
are recognized as unrealized gains or losses by "marking-to-market" on a daily
basis to reflect the market value of the contract at the end of each day's
trading. Variation margin payments are made or received and recognized as assets
due from or liabilities due to broker, depending upon whether unrealized gains
or losses are incurred. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the proceeds from (or cost of) the
closing transactions and the Fund's basis in the contract.
The Fund enters into such contracts to hedge a portion of its portfolio.
The Fund bears the market risk that arises from changes in the value of the
financial instruments and securities indices (futures contracts).
At May 31, 1998, the Fund had no open futures contracts.
6. Repurchase Agreements
The Fund purchases (and its custodian takes possession of) U.S. government
securities from banks and securities dealers subject to agreements to resell the
securities to the sellers at a future date (generally, the next business day) at
an agreed-upon higher repurchase price. The Fund requires continual maintenance
of the market value of the collateral in amounts at least equal to the
repurchase price.
7. Capital Shares
During the year ended August 31, 1997, capital stock transactions were as
follows:
<TABLE>
<CAPTION>
Shares Amount
================================================================================
<S> <C> <C>
Shares issued on reinvestment 18,038 $214,541
================================================================================
</TABLE>
- -------------------------------------[LOGO]-------------------------------------
19
<PAGE>
================================================================================
Financial Highlights
================================================================================
For a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
1998(1) 1997 1996 1995 1994 1993(2)
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $12.15 $11.98 $12.36 $12.15 $13.37 $12.00
- -----------------------------------------------------------------------------------------------------------------------------
Income From Operations:
Net investment income 0.41 0.63 0.66 0.69 0.64 0.62
Net realized and
unrealized gain (loss) 0.45 0.48 (0.21) 0.32 (0.61) 1.34
- -----------------------------------------------------------------------------------------------------------------------------
Total Income From Operations 0.86 1.11 0.45 1.01 0.03 1.96
- -----------------------------------------------------------------------------------------------------------------------------
Offering Costs Credited
(Charged) to Paid-In Capital -- -- -- -- 0.01 (0.04)
- -----------------------------------------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.43) (0.66) (0.67) (0.68) (0.67) (0.55)
Net realized gains (0.17) (0.28) (0.16) (0.12) (0.59) --
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.60) (0.94) (0.83) (0.80) (1.26) (0.55)
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $12.41 $12.15 $11.98 $12.36 $12.15 $13.37
- -----------------------------------------------------------------------------------------------------------------------------
Total Return, Based on
Market Value (0.37)%++ 7.75% 7.35% 8.86% 0.72% 9.97%++
- -----------------------------------------------------------------------------------------------------------------------------
Total Return, Based on
Net Asset Value* 7.52%++ 9.86% 4.01% 9.20% 0.48% 16.46%++
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets,
End of Period (000s) $139,403 $136,517 $134,429 $138,649 $136,248 $149,970
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses 1.12%+ 1.10% 1.09% 1.14% 1.12% 1.10%+
Net investment income 4.44+ 5.23 5.31 5.80 5.08 5.21+
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 61% 97% 63% 95% 85% 163%
- -----------------------------------------------------------------------------------------------------------------------------
Market Value, End of Period $11.063 $11.688 $11.750 $11.625 $11.500 $12.625
=============================================================================================================================
</TABLE>
(1) For the nine months ended May 31, 1998 (unaudited).
(2) For the period from September 24, 1992 (commencement of operations) to
August 31, 1993.
* The total return assumes that dividends are reinvested in accordance with
the Fund's dividend reinvestment plan.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
- -------------------------------------[LOGO]-------------------------------------
20
<PAGE>
================================================================================
Quarterly Results of Operations
(unaudited)
================================================================================
<TABLE>
<CAPTION>
Net Realized Net Increase
and Unrealized (Decrease) in
Investment Net Investment Gain (Loss) on Net Assets From
Income Income Investments Operations
- ----------------------------------------------------------------------------------------------------------------------------
Per Per Per Per
Quarter Ended Total Share Total Share Total Share Total Share
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
November 30,
1995 $2,247,062 $0.20 $1,848,446 $0.17 $4,293,829 $0.38 $6,142,275 $0.55
February 29,
1996 2,168,432 0.19 1,762,535 0.16 356,980 0.03 2,119,515 0.19
May 31,
1996 2,248,001 0.20 1,874,744 0.16 (5,875,854) (0.52) (4,001,110) (0.36)
August 31,
1996 2,271,619 0.20 1,922,889 0.17 (1,101,944) (0.10) 820,945 0.07
November 30,
1996 2,227,411 0.20 1,879,304 0.17 5,753,327 0.51 7,632,631 0.68
February 28,
1997 2,180,922 0.19 1,839,607 0.16 (3,515,568) (0.31) (1,675,961) (0.15)
May 31,
1997 2,225,788 0.20 1,860,549 0.17 (1,006,118) (0.08) 854,431 0.09
August 31,
1997 1,927,002 0.17 1,490,559 0.13 4,050,306 0.36 5,540,865 0.49
November 30,
1997 1,867,638 0.17 1,459,739 0.13 2,741,066 0.25 4,200,805 0.38
February 28,
1998 1,928,672 0.17 1,555,286 0.14 2,311,045 0.20 3,866,331 0.34
May 31,
1998 1,932,962 0.17 1,563,665 0.14 (4,226) (0.00) 1,559,439 0.14
============================================================================================================================
</TABLE>
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21
<PAGE>
================================================================================
Financial Data
(unaudited)
================================================================================
For a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
NYSE Net Dividend
Record Payable Closing Asset Dividend Reinvestment
Date Date Price+ Value+ Paid Price
===================================================================================
<S> <C> <C> <C> <C> <C>
9/26/95 9/29/95 $11.563 $12.34 $0.063 $11.61
10/24/95 10/27/95 11.750 12.51 0.063 11.83
11/20/95 11/24/95 11.625 12.60 0.063 11.85
12/26/95 12/29/95 12.000 12.72 0.063 12.19
12/26/95* 12/29/95 12.000 12.72 0.036 12.19
1/23/96 1/26/96 12.125 12.69 0.063 12.35
2/20/96 2/23/96 12.125 12.61 0.063 12.09
3/26/96 3/29/96 11.625 12.50 0.059 11.60
4/23/96 4/26/96 11.250 12.27 0.059 11.42
5/28/96 5/31/96 11.500 12.30 0.059 11.48
6/25/96 6/28/96 11.313 12.09 0.059 11.52
7/23/96 7/26/96 11.375 12.07 0.059 11.52
8/27/96* 8/30/96 11.688 12.09 0.120 11.69
9/24/96 9/27/96 11.625 12.09 0.059 11.66
10/22/96 10/25/96 11.500 12.20 0.059 11.63
11/25/96 11/29/96 11.438 12.49 0.059 11.50
12/23/96* 12/27/96 11.375 12.11 0.285++ 11.56
1/28/97 1/31/97 11.500 11.85 0.059 11.52
2/25/97 2/28/97 11.500 12.01 0.059 11.53
3/24/97 3/27/97 11.375 11.68 0.059 11.32
4/22/97 4/25/97 11.375 11.56 0.059 11.38
5/27/97 5/30/97 11.375 11.76 0.059 11.58
6/24/97 6/27/97 11.875 11.99 0.059 11.94
7/22/97 7/25/97 12.000 12.34 0.059 12.06
8/26/97 8/29/97 11.688 12.11 0.059 11.75
9/23/97 9/26/97 11.563 12.25 0.056 11.71
10/28/97 10/31/97 11.438 12.27 0.056 11.47
11/24/97 11/28/97 11.500 12.36 0.056 11.55
12/22/97* 12/26/97 11.625 12.41 0.170 11.57
1/27/98 1/30/98 12.188 12.44 0.056 12.12
2/24/98 2/27/98 11.875 12.42 0.056 11.62
3/24/98 3/27/98 11.250 12.40 0.050 11.37
4/21/98 4/24/98 11.125 12.28 0.050 11.10
5/26/98 5/29/98 10.813 12.38 0.050 11.14
===================================================================================
</TABLE>
+ As of record date.
++ Includes market discount.
* Capital gain distribution.
- -------------------------------------[LOGO]-------------------------------------
22
<PAGE>
================================================================================
Dividend Reinvestment Plan
(unaudited)
================================================================================
Under the Fund's Dividend Reinvestment Plan ("Plan"), a shareholder whose
shares of Common Stock are registered in his or her own name will have all
distributions from the Fund reinvested automatically by First Data Investor
Services Group, Inc. ("First Data") as purchasing agent under the Plan, unless
the shareholder elects to receive cash. Distributions with respect to shares
registered in the name of a broker-dealer or other nominee (that is, in "street
name") will be reinvested by the broker or nominee in additional shares under
the Plan, unless the service is not provided by the broker or nominee or the
shareholder elects to receive distributions in cash. Investors who own Common
Stock registered in street name should consult their broker-dealers for details
regarding reinvestment. All distributions to Fund shareholders who do not
participate in the Plan will be paid by check mailed directly to the record
holder by or under the direction of First Data as dividend-paying agent.
The number of shares of Common Stock distributed to participants in the
Plan in lieu of a cash dividend is determined in the following manner. Whenever
the market price of the Common Stock is equal to or exceeds the net asset value
per share on the date of valuation, Plan participants will be issued shares of
Common Stock at a price equal to the greater of (1) the net asset value per
share most recently determined or (2) 95% of the market price.
If the net asset value per share of Common Stock at the time of valuation
exceeds the market price of the Common Stock, or if the Fund declares a dividend
or capital gains distribution payable only in cash, First Data will buy Common
Stock in the open market, on the NYSE or elsewhere, for the participants'
accounts. If, following the commencement of the purchases and before First Data
has completed its purchases, and the market price exceeds the net asset value of
the Common Stock, First Data will attempt to terminate purchases in the open
market and cause the Fund to issue the remaining portion of the dividend or
distribution by issuing shares at a price equal to the greater of (a) net asset
value or (b) 95% of the then current market price. In this case, the number of
shares of Common Stock received by a Plan participant will be based on the
weighted average of prices paid for shares purchased in the open market and the
price at which the Fund issues the remaining shares. To the extent First Data is
unable to stop open market purchases and cause the Fund to issue the remaining
shares, the average per share purchase price paid by First Data may exceed the
net asset value of the Common Stock, resulting in the acquisition of fewer
shares than if the dividend or capital gains distribution had been paid in
Common Stock issued by the Fund at net asset value. First Data will begin to
purchase Common Stock on the open market as soon as practicable after the
payment date of the dividend or capital gains distribution, but in no event
shall such purchases
- -------------------------------------[LOGO]-------------------------------------
23
<PAGE>
================================================================================
Dividend Reinvestment Plan
(unaudited)(continued)
================================================================================
continue later than 30 days after that date, except when necessary to comply
with applicable provisions of the Federal securities laws.
First Data maintains all shareholder accounts in the Plan and furnishes
written confirmations of all transactions in each account, including information
needed by a shareholder for personal and tax records. The automatic reinvestment
of dividends and capital gains distributions will not relieve Plan participants
of any income tax that may be payable on the dividends or capital gains
distributions. Common Stock in the account of each Plan participant, will be
held by First Data in uncertificated form in the name of each Plan participant.
Plan participants are subject to no charge for reinvesting dividends and
capital gains distributions under the Plan. First Data's fees for handling the
reinvestment of dividends and capital gains distributions will be paid by the
Fund. No brokerage charges apply with respect to shares of Common Stock issued
directly by the Fund under the Plan. Each Plan participant will, however, bear a
proportionate share of brokerage commissions incurred with respect to any open
market purchases made under the plan.
Experience under the Plan may indicate that changes to it are desirable.
The Fund reserves the right to amend or terminate the Plan as applied to any
dividend or capital gains distribution paid subsequent to written notice of the
change sent to participants at least 30 days before the record date for the
dividend or capital gains distribution. The Plan also may be amended or
terminated by First Data, with the Fund's prior written consent, on at least 30
days' written notice to Plan participants. All correspondence concerning the
Plan should be directed by mail to First Data Investor Services Group, P.O. Box
8030, Boston, Massachusetts 02266-8030 or by telephone at 1-800-331-1710.
------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that from time to time the Fund may purchase
shares of its common stock in the open market.
- -------------------------------------[LOGO]-------------------------------------
24
<PAGE>
Managed Municipals
Portfolio II Inc.
Directors Investment Adviser
Allan J. Bloostein Mutual Management Corp.
Martin Brody 388 Greenwich Street
Dwight B. Crane New York, New York 10013
Robert A. Frankel
William R. Hutchinson Transfer Agent
Heath B. McLendon, Chairman First Data Investor Services
Group, Inc.
Charles F. Barber, Emeritus P.O. Box 8030
Boston, Massachusetts 02266-8030
Officers
Heath B. McLendon Custodian
President and PNC Bank, N.A.
Chief Executive Officer 17th and Chestnut Streets
Philadelphia, Pennsylvania 19103
Lewis E. Daidone
Senior Vice President
and Treasurer
Joseph P. Deane
Vice President and
Investment Officer
David Fare
Investment Officer
Thomas M. Reynolds
Controller
Christina T. Sydor
Secretary
