UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

 

 

 

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-7812

 

Salomon Brothers Municipal Partners Fund II Inc.

(Exact name of registrant as specified in charter)

125 Broad Street, New York, NY

 

10004

(Address of principal executive offices)

 

(Zip code)

 

 

 

Robert I. Frenkel, Esq.

Smith Barney Fund Management LLC

300 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

 

Registrant's telephone number, including area code:

1-800-451-2010

 

 

Date of fiscal year end:

June 30

 

 

 

 

Date of reporting period:

March 31, 2005

 

 



ITEM 1.                             SCHEDULE OF INVESTMENTS

 



SALOMON BROTHERS MUNICIPAL

PARTNERS FUND II INC.

 

FORM N-Q

MARCH 31, 2005

 



 

SALOMON BROTHERS MUNICIPAL PARTNERS FUND II INC.

 

Schedule of Investments (unaudited)

 

March 31, 2005

 

FACE
AMOUNT

 

RATINGS (a)

 

SECURITY

 

VALUE

 

LONG-INVESTMENTS - 96.9%

 

 

 

 

 

Alabama - 0.2%

 

 

 

 

 

 

 

$

250,000

 

AAA

 

Huntsville, Alabama GO, Series A, FSA-Insured,
5.750% due 2/1/15

 

$

285,200

 

California - 7.1%

 

 

 

 

 

 

 

 

 

 

 

California State GO:

 

 

 

1,500,000

 

A

 

5.125% due 6/1/24

 

1,545,015

 

2,400,000

 

AAA

 

FSA-Insured, 6.000% due 2/1/16

 

2,797,800

 

2,500,000

 

AAA

 

Huntington Beach California Union High School District GO,
Election 2004, FSA-Insured, 5.000% due 8/1/29

 

2,592,325

 

2,500,000

 

AAA

 

Napa Valley, California Community College District GO,
Election of 2002, Series B, MBIA-Insured, 5.000% due 8/1/23

 

2,623,325

 

 

 

 

 

 

 

9,558,465

 

Colorado - 1.3%

 

 

 

 

 

 

 

1,750,000

 

BBB+

 

Colorado Health Facilities Authority Revenue,
(Poudre Valley Health Care), Series F, 5.000% due 3/1/25

 

1,736,192

 

Connecticut - 2.3%

 

 

 

 

 

 

 

3,000,000

 

AAA

 

Connecticut State Special Tax Obligation Revenue,
Transportation Infrastructure, Series A,

AMBAC-Insured, 5.000% due 7/1/23

 

3,154,620

 

District of Columbia - 1.6%

 

 

 

 

 

2,000,000

 

AAA

 

District of Columbia Revenue, (American University),
AMBAC-Insured, 5.625% due 10/1/26

 

2,085,360

 

Florida - 0.8%

 

 

 

 

 

 

 

1,000,000

 

AAA

 

St. Johns County, FL Water and Sewer Revenue,
MBIA-Insured, 5.500% due 6/1/11

 

1,107,680

 

Georgia - 1.7%

 

 

 

 

 

 

 

10,000

 

AAA

 

Fulton County, GA Housing Authority Revenue, Single-Family
Mortgage, Series A, GNMA-Collateralized, 6.600% due 3/1/28 (b)

 

10,117

 

2,000,000

 

AAA

 

Georgia State, GO, Series C, 5.500% due 7/1/15

 

2,246,360

 

 

 

 

 

 

 

2,256,477

 

Illinois - 12.0%

 

 

 

 

 

 

 

 

 

 

 

Chicago, IL Board of Education GO, (Chicago School Reform),
AMBAC-Insured:

 

 

 

100,000

 

AAA

 

5.750% due 12/1/27

 

107,432

 

900,000

 

AAA

 

5.750% due 12/1/27 Pre-Refunded - Escrowed with state
& local government securities to 12/1/07 (Call @ 102)

 

981,189

 

500,000

 

AAA

 

Chicago, IL GO, Series A, FSA-Insured, 5.250% due 1/1/16

 

542,655

 

1,750,000

 

AAA

 

Chicago, IL Midway Airport Revenue, Series B, MBIA-Insured,
5.625% due 1/1/29 (b)

 

1,816,517

 

1,000,000

 

AAA

 

Chicago, IL Public Building Commission, Building Revenue,
(Chicago School Reform), Series B, FGIC-Insured,

5.250% due 12/1/18

 

1,102,800

 

250,000

 

AAA

 

Cook County, IL Refunding GO, Series A, MBIA-Insured,
5.625% due 11/15/16

 

267,070

 

2,000,000

 

Aaa *

 

Illinois Development Finance Authority, Revolving Fund
Revenue, 5.250% due 9/1/12

 

2,183,540

 

 

See Notes to Schedule of Investments.

 

1



 

SALOMON BROTHERS MUNICIPAL PARTNERS FUND II INC.

 

Schedule of Investments (unaudited)(continued)

 

March 31, 2005

 

FACE
AMOUNT

 

RATINGS (a)

 

SECURITY

 

VALUE

 

Illinois - 12.0% (continued)

 

 

 

 

 

$

1,000,000

 

AA+

 

Illinois Educational Facilities Authority Revenue,
(Northwestern University), 5.500% due 12/1/13

 

$

1,096,530

 

 

 

 

 

Illinois Health Facilities Authority Revenue:

 

 

 

1,850,000

 

AAA

 

Refunding, (SSM Health Care), MBIA-Insured, 6.550% due 6/1/13

 

2,169,736

 

2,000,000

 

AAA

 

Servantcor Project, Series A, Escrowed to maturity with U.S.
government securities, FSA-Insured, 6.000% due 8/15/12

 

2,264,680

 

605,000

 

A

 

South Suburban Hospital Project, Escrowed to maturity with
U.S. government securities, 7.000% due 2/15/18

 

733,024

 

2,645,000

 

AAA

 

Illinois State, Sales Tax Revenue, 5.500% due 6/15/16

 

2,889,821

 

 

 

 

 

 

 

16,154,994

 

Indiana - 1.8%

 

 

 

 

 

 

 

2,000,000

 

BBB+

 

Indiana State Development Finance Authority, Environmental
Revenue, (USX Corp. Project), 5.250% due 12/1/22

 

2,205,120

 

250,000

 

AAA

 

Indiana State Revolving Fund Revenue, Series B,
5.000% due 8/1/23

 

257,222

 

 

 

 

 

 

 

2,462,342

 

Louisiana - 3.7%

 

 

 

 

 

 

 

5,000,000

 

BBB+

 

Louisiana Public Facilities Authority, Hospital Revenue,
(Touro Infirmary Project), Series A, 6.125% due 8/15/23

 

5,021,400

 

Maryland - 4.4%

 

 

 

 

 

 

 

 

 

 

 

Maryland State Health & Higher Educational Facilities

 

 

 

 

 

 

 

Authority Revenue:

 

 

 

1,500,000

 

Baa1 *

 

Carroll County General Hospital, 6.000% due 7/1/37

 

1,571,850

 

1,500,000

 

A

 

Suburban Hospital, Series A, 5.500% due 7/1/16

 

1,615,890

 

500,000

 

A

 

University of Maryland Medical Systems, 6.000% due 7/1/32

 

538,550

 

2,000,000

 

Aaa *

 

Northeast Maryland Waste Disposal Authority, Solid Waste
Revenue, AMBAC-Insured, 5.500% due 4/1/16 (b)

 

2,148,420

 

 

 

 

 

 

 

5,874,710

 

Massachusetts - 2.9%

 

 

 

 

 

 

1,000,000

 

A

 

Massachusetts State Health & Educational Facilities Authority
Revenue, (Dana Farber Cancer Project), Series G-1,

6.250% due 12/1/22 Pre-refunded - Escrowed with state &
local government securities to 12/1/05 (Call @ 102)

 

1,044,650

 

 

 

 

 

Massachusetts State Water Pollution Abatement Trust Revenue,
(MWRA Program), Series A:

 

 

 

2,125,000

 

AAA

 

5.750% due 8/1/29

 

2,326,684

 

525,000

 

AAA

 

5.750% due 8/1/29 Pre-Refunded - Escrowed with state & local
government securities to 8/1/09 (Call @ 101)

 

582,866

 

 

 

 

 

 

 

3,954,200

 

Michigan - 2.0%

 

 

 

 

 

 

 

1,000,000

 

AAA

 

Detroit, MI City School District GO, (School Building & Site
Improvement), Series A, FGIC-Insured, 5.500% due 5/1/17

 

1,101,220

 

1,500,000

 

AA-

 

Michigan State Hospital Finance Authority Revenue,
(Trinity Health), Series C, 5.375% due 12/1/30

 

1,555,650

 

 

 

 

 

 

 

2,656,870

 

 

See Notes to Schedule of Investments.

 

2



 

SALOMON BROTHERS MUNICIPAL PARTNERS FUND II INC.

 

Schedule of Investments (unaudited)(continued)

 

March 31, 2005

 

FACE
AMOUNT

 

RATINGS (a)

 

SECURITY

 

VALUE

 

Missouri - 2.8%

 

 

 

 

 

 

 

 

 

 

 

Missouri State Environmental Improvement & Energy Research

 

 

 

 

 

 

 

Authority:

 

 

 

$

2,500,000

 

AA

 

PCR Refunding Revenue, (Associated Electric Co-op
Thomas Hill), 5.500% due 12/1/10

 

$

2,627,475

 

1,000,000

 

Aaa *

 

Water Pollution Refunding Revenue, State Revolving Funds,
Program A, 5.000% due 7/1/20

 

1,088,180

 

 

 

 

 

 

 

3,715,655

 

Nevada - 3.1%

 

 

 

 

 

 

 

 

 

 

 

Clark County, NV:

 

 

 

3,000,000

 

AAA

 

IDR Refunding Revenue, (Nevada Power Co. Project),
Series C, AMBAC-Insured, 7.200% due 10/1/22

 

3,090,000

 

1,000,000

 

AAA

 

Passenger Facility Revenue, (McCarran International Airport),
Series A, MBIA-Insured, 5.750% due 7/1/23 (b)

 

1,025,610

 

35,000

 

AAA

 

Nevada Housing Division Revenue, Single-Family Program,
Series C, AMBAC-Insured, 6.350% due 10/1/12 (b)

 

35,731

 

 

 

 

 

 

 

4,151,341

 

New Jersey - 5.8%

 

 

 

 

 

 

 

 

 

 

 

New Jersey EDA:

 

 

 

3,750,000

 

A+

 

School Facilities Construction Revenue, Series G,
5.000% due 9/1/11

 

4,033,388

 

2,500,000

 

AAA

 

Motor Vehicle Surcharges Revenue, Series A, MBIA-Insured,
5.250% due 7/1/16

 

2,729,375

 

1,000,000

 

AAA

 

Water Facilities Revenue, (New Jersey American Water Co., Inc.
Project), Series A, FGIC-Insured, 6.875% due 11/1/34 (b)

 

1,023,270

 

 

 

 

 

 

 

7,786,033

 

New York - 12.4%

 

 

 

 

 

 

 

 

 

 

 

New York City, NY GO:

 

 

 

 

 

 

 

Series A:

 

 

 

180,000

 

A1*

 

6.000% due 5/15/30

 

198,513

 

820,000

 

A1*

 

6.000% due 5/15/30 Pre-Refunded - Escrowed with U.S.
government securities to 5/15/10 (Call @ 101)

 

930,913

 

1,500,000

 

A1*

 

Series G, 5.000% due 12/1/33

 

1,528,815

 

1,600,000

 

AA+

 

New York City, NY Municipal Water Finance Authority, Water &
Sewer System Revenue, Series A, 5.500% due 6/15/23

 

1,610,496

 

4,500,000

 

AAA

 

New York City, NY Transitional Finance Authority Revenue,
Series A, 5.500% due 11/15/17

 

4,954,995

 

3,500,000

 

AAA

 

New York State Dormitory Authority Revenue, Income Tax
Revenue, Series B, AMBAC-Insured,

5.500% due 3/15/21

 

3,985,590

 

2,000,000

 

AAA

 

New York State Thruway Authority, Income Tax Revenue,
Series A, AMBAC-Insured, 5.000% due 3/15/16

 

2,151,240

 

1,300,000

 

AAA

 

New York State Urban Development Corp. Revenue, Correctional

 

 

 

 

 

 

 

Facilities, FSA-Insured, 5.375% due 1/1/25 Pre-Refunded

 

 

 

 

 

 

 

- Escrowed with U.S. government securities to 1/1/06
(Call @ 102)

 

1,353,170

 

 

 

 

 

 

 

16,713,732

 

 

See Notes to Schedule of Investments.

 

3



 

SALOMON BROTHERS MUNICIPAL PARTNERS FUND II INC.

 

Schedule of Investments (unaudited)(continued)

 

March 31, 2005

 

FACE
AMOUNT

 

RATINGS (a)

 

SECURITY

 

VALUE

 

Ohio - 4.5%

 

 

 

 

 

 

 

$

2,500,000

 

AA-

 

Franklin County, OH Hospital Revenue, (Holy Cross Health
Systems Corp.), 5.875% due 6/1/21

 

$

2,622,275

 

3,300,000

 

A+

 

Ohio State Water Development Authority, Solid Waste Disposal
Revenue, (Broken Hill Proprietary Co., Ltd.), 6.450% due 9/1/20 (b)

 

3,389,958

 

 

 

 

 

 

 

6,012,233

 

Pennsylvania - 0.2%

 

 

 

 

 

 

250,000

 

AAA

 

Philadelphia, PA School District GO, Series A, FSA-Insured,
5.500% due 2/1/31

 

277,623

 

Puerto Rico - 4.6%

 

 

 

 

 

 

 

1,600,000

 

AAA

 

Puerto Rico Commonwealth Highway & Transportation Authority,
Highway Revenue, Series X, FSA-Insured, 5.500% due 7/1/15

 

1,813,040

 

 

 

 

 

Puerto Rico Electric Power Authority, Power Revenue:

 

 

 

2,750,000

 

AAA

 

Series LL, MBIA-Insured, 5.500% due 7/1/17

 

3,146,220

 

1,155,000

 

AAA

 

Series OO, FGIC-Insured, 5.000% due 7/1/14

 

1,261,237

 

 

 

 

 

 

 

6,220,497

 

Tennessee - 2.9%

 

 

 

 

 

 

 

1,950,000

 

AA-

 

Humphreys County, TN IDB, Solid Waste Disposal Revenue,
(E.I. Du Pont de Nemours & Co. Project), 6.700% due 5/1/24 (b)

 

1,993,933

 

1,200,000

 

AAA

 

Memphis-Shelby County, TN Airport Authority Revenue, Series D,

AMBAC-Insured, 6.000% due 3/1/24 (b)

 

1,311,420

 

565,000

 

AA

 

Tennessee Housing Development Agency Revenue,
(Homeownership Program), Series 2C, 6.350% due 1/1/31 (b)

 

579,526

 

 

 

 

 

 

 

3,884,879

 

Texas - 13.3%

 

 

 

 

 

 

 

 

 

 

 

Austin, TX Airport System Revenue, Series A, MBIA-Insured:

 

 

 

3,475,000

 

AAA

 

6.200% due 11/15/15 (b)

 

3,610,664

 

330,000

 

AAA

 

6.200% due 11/15/15 Pre-Refunded - Escrowed with state & local
government securities to 11/15/07 (Call @ 100) (b)

 

354,351

 

4,265,000

 

AAA

 

Lower Colorado River Authority, TX Transmission Contract
Revenue, AMBAC-Insured, 5.250% due 5/15/14

 

4,639,126

 

1,380,000

 

AAA

 

North Harris Montgomery Community College District, TX GO,
FGIC-Insured, 5.375% due 2/15/16

 

1,489,517

 

1,000,000

 

AAA

 

North Texas Municipal Water District, Water System Revenue,
MBIA-Insured, 5.000% due 9/1/15

 

1,070,250

 

2,225,000

 

Aaa*

 

Northwest Texas Independent School District GO, PSF-Insured,
5.250% due 8/15/18

 

2,409,964

 

1,485,000

 

AAA

 

South San Antonio Texas Independent School District GO,
PSF-Insured, 5.000% due 8/15/15

 

1,591,890

 

1,500,000

 

AAA

 

Texas State Turnpike Authority Revenue, First Tier, Series A,
AMBAC-Insured, 5.500% due 8/15/39

 

1,607,955

 

1,000,000

 

AAA

 

Williamson County, TX GO, MBIA-Insured,
5.250% due 2/15/21

 

1,081,750

 

 

 

 

 

 

 

17,855,467

 

Utah - 0.3%

 

 

 

 

 

 

 

370,000

 

AAA

 

Utah State Housing Finance Agency, Single-Family Mortgage
Revenue, Issue H-2, FHA-Insured, 6.250% due 7/1/22 (b)

 

380,597

 

 

See Notes to Schedule of Investments.

 

4



 

SALOMON BROTHERS MUNICIPAL PARTNERS FUND II INC.

 

Schedule of Investments (unaudited)(continued)

 

March 31, 2005

 

FACE
AMOUNT

 

RATINGS (a)

 

SECURITY

 

VALUE

 

Virginia - 2.5%

 

 

 

 

 

 

 

$

2,915,000

 

A

 

Greater Richmond Convention Center Authority, VA Hotel Tax
Revenue, (Convention Center Expansion Project),

 

 

 

 

 

 

 

6.125% due 6/15/20

 

$

3,308,904

 

Washington - 2.7%

 

 

 

 

 

 

1,900,000

 

AAA

 

Chelan County, WA Public Utility District, (Chelan Hydro System
No. 1), Construction Revenue, Series A, AMBAC-Insured,

 

 

 

 

 

 

 

5.450% due 7/1/37 (b)

 

1,984,645

 

400,000

 

AAA

 

Seattle, WA GO, Series B, FSA-Insured, 5.750% due 12/1/28

 

446,160

 

1,200,000

 

AAA

 

Washington State Public Power Supply System Revenue,
(Nuclear Project No. 1), Series A, MBIA-Insured,

 

 

 

 

 

 

 

5.125% due 7/1/17

 

1,264,164

 

 

 

 

 

 

 

3,694,969

 

 

 

 

 

TOTAL LONG-TERM INVESTMENTS

 

 

 

 

 

 

 

(Cost - $126,327,676)

 

130,310,440

 

SHORT-TERM INVESTMENTS - 3.1%

 

 

 

Missouri - 3.1%

 

 

 

 

 

 

 

3,300,000

 

A-1+

 

Kansas City, Missouri Industrial Development Authority Revenue,
(Ewing Marion Kaufman Foundation), VRDD, 2.290% due 4/1/27

 

3,300,000

 

900,000

 

A-1+

 

Missouri State Health & Educational Facilities Authority, Educational
Facilities Revenue, (Saint Louis University), Series B, VRDD,

 

 

 

 

 

 

 

2.340% due 10/1/24

 

900,000

 

 

 

 

 

TOTAL SHORT-TERM INVESTMENTS

 

 

 

 

 

 

 

(Cost - $4,200,000)

 

4,200,000

 

 

 

 

 

TOTAL INVESTMENTS - 100.0% (Cost - $130,527,676**)

 

$

134,510,440

 

 


(a) All ratings are by Standard & Poor’s Ratings Service, except those
identified by an asterisk (*), which are rated by Moody’s Investors Service, Inc.

(b) Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax.

** Aggregate cost for federal income tax purposes is substantially the same.

 

See pages 6 through 8 for definitions of ratings and abbreviations.

 

Summary of Investments by Industry and Pre-Refunded***

 

 

 

Education

 

18.7

%

General Revenue

 

17.1

 

Healthcare

 

12.5

 

Industrial Development

 

10.9

 

Transportation

 

9.9

 

General Obligation

 

8.1

 

Power

 

8.0

 

Pre-Refunded

 

5.3

 

Water

 

4.1

 

Tax Revenue

 

2.5

 

Escrowed to Maturity

 

2.2

 

Housing

 

0.7

 

Total

 

100.0

%

 


*** As a percentage of total investments.  Please note that Fund holdings are as of  March 31, 2005 and are subject to change.

 

See Notes to Schedule of Investments.

 

5



Bond Ratings (unaudited)

 

The definitions of the applicable rating symbols are set forth below:

 

Standard & Poor’s Ratings Service (“Standard & Poor’s’’) — Ratings from “AA’’ to “CCC’’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standings within the major rating categories.

 

AAA — Bonds rated “AAA’’ have the highest rating assigned by Standard & Poor’s. Capacity to pay interest and repay principal is extremely strong.

 

AA — Bonds rated “AA’’ have a very strong capacity to pay interest and repay principal and differs 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 debt in higher rated categories.

 

BBB — Bonds rated “BBB’’ are regarded as having an adequate capacity to pay interest and repay principal. Whereas they normally exhibit adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher rated categories.

 

BB, B, CCC, CC and C — Bonds rated “BB”, “B”, “CCC”, “CC” and “C” are regarded, on balance, as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. “BB” represents the lowest degree of speculation and “C” the highest degree of speculation. While such bonds will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.

 

Moody’s Investors Service (“Moody’s’’) — Numerical modifiers 1, 2 and 3 may be applied to each generic rating from “Aa’’ to “Caa,’’ where 1 is the highest and 3 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.

 

6



 

Bond Ratings (unaudited) (continued)

 

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.

 

B — Bonds that are rated “B” generally lack characteristics of desirable investments. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small.

 

Caa — Bonds rated “Caa” are of poor standing. These issues may be in default, or present elements of danger may exist with respect to principal or interest.

 

NR — Indicates that the bond is not rated by Moody’s or Standard & Poor’s.

 

Short-Term Security Ratings (unaudited)

 

SP-1 — Standard & Poor’s highest rating indicating very strong or strong capacity to pay principal and interest; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign.

 

A-1 — Standard & Poor’s highest commercial paper and variable rate demand obligation (VRDO) rating indicating that the degree of safety regarding timely payment is either overwhelming or very strong; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign.

 

MIG1 — Moody’s highest rating for short-term municipal obligations.

 

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.

 

Abbreviations* (unaudited)

 

ABAG – Association of Bay Area Governments

AIG – American International Guaranty

AMBAC – Ambac Assurance Corporation

AMT – Alternative Minimum Tax

BAN – Bond Anticipation Notes

BIG – Bond Investors Guaranty

 

7



 

Abbreviations* (unaudited) (continued)

 

CDA – Community Development Authority

CGIC – Capital Guaranty Insurance Company

CHFCLI – California Health Facility Construction Loan Insurance

CONNIE LEE – College Construction Loan Insurance Association

COP – Certificate of Participation

CSD – Central School District

CTFS – Certificates

DFA – Development Finance Authority

EDA – Economic Development Authority

EFA – Educational Facilities Authority

ETM – Escrowed to Maturity

FGIC – Financial Guaranty Insurance Company

FHA – Federal Housing Administration

FHLMC – Federal Home Loan Mortgage Corporation

FLAIRS – Floating Adjustable Interest Rate Securities

FNMA – Federal National Mortgage Association

FRTC – Floating Rate Trust Certificates

FSA – Federal Savings Association

GIC – Guaranteed Investment Contract

GNMA – Government National Mortgage Association

GO – General Obligation

HDC – Housing Development Corporation

HEFA – Health & Educational Facilities

HFA – Housing Finance Authority

IBC – Insured Bond Certificates

IDA – Industrial Development Authority

IDB – Industrial Development Board

IDR – Industrial Development Revenue

IFA – Industrial Finance Agency

INFLOS – Inverse Floaters

ISD – Independent School District

ISO – Independent System Operator

LOC – Letter of Credit

MBIA – Municipal Bond Investors Assurance

MERLOT– Municipal Exempt Receipts Liquidity

MFH – Multi–Family Housing

MSTC – Municipal Securities Trust

MUD – Municipal Utilities District

MVRICS – Municipal Variable Rate Inverse Coupon Security

COP – Certificate of Participation Coupon Security

PART – Partnership Structure

PCFA – Pollution Control Finance Authority

PCR – Pollution Control Revenue

PFA – Public Finance Authority

 

8



 

Abbreviations* (unaudited) (continued)

 

PFC – Public Finance Corporation

PSFG – Permanent School Fund Guaranty

Q-SBLF – Qualified School Bond Loan Fund

Radian – Radian Asset Assurance

RAN – Revenue Anticipation Notes

RDA – Redevelopment Agency

RIBS – Residual Interest Bonds

RITES – Residual Interest Tax-Exempt Securities

SPA – Standby Bond Purchase Agreement

SWAP – Swap Structure

SYCC – Structured Yield Curve Certificate

TAN – Tax Anticipation Notes

TCRS – Transferable Custodial Receipts

TECP – Tax Exempt Commercial Paper

TFA – Transitional Finance Authority

TOB – Tender Option Bond Structure

TRAN – Tax and Revenue Anticipation Notes

UFSD – Unified Free School District

UHSD – Unified High School District

USD – Unified School District

VA – Veterans Administration

VRDD – Variable Rate Daily Demand

VRDO – Variable Rate Demand Obligation

VRWE – Variable Rate Wednesday Demand

XLCA – XL Capital Assurance

 


* Abbreviations may or may not appear in the Schedule of Investments.

 

9



 

Notes to Financial Statements (unaudited)

 

Note 1. Organization and Significant Accounting Policies

 

Salomon Brothers Municipals Partners Fund II Inc. (“Fund”), was incorporated in Maryland on June 21, 1993 and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended.

 

The following are significant accounting policies consistently followed by the Fund. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”).

 

(a) Investment Valuation. Tax-exempt securities are valued by independent pricing services which use prices provided by market-makers or estimates of market values obtained from yield data relating to instruments or securities with similar characteristics. Securities for which reliable quotations are not readily available are valued at fair value as determined in good faith by, or under procedures established by, the Board of Directors. Short-term investments having a maturity of 60 days or less are valued at amortized cost, which approximates value.

 

(b) Investment Transactions. Investment transactions are recorded on the trade date.

 

Note 2. Investments

 

At March 31, 2005, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

 

$

4,732,984

 

Gross unrealized depreciation

 

(750,220

)

Net unrealized appreciation

 

$

3,982,764

 

 

Note 3. Concentration of Risk

 

Since the Fund invests a portion of its assets in issuers located in a single state, it may be affected by economic and political developments in a specific state or region. Certain debt obligations held by the Fund are entitled to the benefit of insurance, standby letters of credit or other guarantees of banks or other financial institutions.

 

10



ITEM 2.                                                     CONTROLS AND PROCEDURES.

 

(a)                                  The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934

 

(b)                                 There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

 

ITEM 3.                                                     EXHIBITS.

 

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

 


 


SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Salomon Brothers Municipal Partners Fund II Inc.

 

 

By

/s/ R. Jay Gerken

 

R. Jay Gerken

Chief Executive Officer

 

 

Date:  May 27, 2005

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By

/s/ R. Jay Gerken

 

R. Jay Gerken

Chief Executive Officer

 

 

Date: May 27, 2005

 

 

By

/s/ Frances M. Guggino

 

Frances M. Guggino

Chief Financial Officer

 

 

Date: May 27, 2005