UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT
INVESTMENT COMPANY
Salomon Brothers Municipal Partners Fund Inc.
Registrant's telephone number, including area code: 1-800-725-6666
SALOMON BROTHERS MUNICIPAL
PARTNERS FUND INC.
FORM N-Q
SEPTEMBER 30,
2005
SALOMON BROTHERS MUNICIPAL PARTNERS FUND INC.
Schedule of Investments (unaudited) | September 30, 2005 |
FACE
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AMOUNT
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MUNICIPAL BONDS 98.8%
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|||||
California 4.5%
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|||||
$ |
1,000,000 |
|
California Health Facilities Financing Authority Revenue, Cedars-Sinai | ||
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Medical Center, 5.000% due 11/15/34 | $
|
1,017,760 |
||
1,575,000
|
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California State, GO, 5.125% due 6/1/24 |
1,635,653
|
||
1,250,000
|
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Huntington Beach, CA, Union High School District, GO, Election 2004, | |||
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FSA-Insured, 5.000% due 8/1/29 |
1,308,075
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|||
1,370,000
|
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Pleasant Valley, CA, GO, School District, Ventura County, Series A, MBIA- | |||
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Insured, 5.850% due 2/1/17 |
1,601,284
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Total California |
5,562,772
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Colorado 1.4%
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|||||
600,000
|
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Colorado Health Facilities Authority Revenue, Poudre Valley Health Care, | |||
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Series F, 5.000% due 3/1/25 |
610,350
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|||
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Colorado Springs, CO, Hospital Revenue: | ||||
505,000
|
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6.375% due 12/15/30 |
552,000
|
||
495,000
|
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Call 12/15/10 @101, 6.375% due 12/15/30 (b) |
566,830
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Total Colorado |
1,729,180
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District of Columbia 1.6%
|
|||||
2,000,000
|
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District of Columbia Revenue, American University, AMBAC-Insured, | |||
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5.625% due 10/1/26 |
2,061,900
|
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Hawaii 1.8%
|
|||||
2,000,000
|
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Hawaii State Airport System Revenue, Series B, FGIC-Insured, 6.000% due | |||
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7/1/19 (c) |
2,193,460
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|
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Illinois 13.5%
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|||||
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Chicago, IL, Board of Education, GO, Chicago School Reform, AMBAC- | ||||
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Insured: | ||||
390,000
|
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5.750% due 12/1/27 (b) |
419,375
|
||
3,360,000
|
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Call 12/1/07 @ 102, 5.750% due 12/1/27 (b) |
3,613,075
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Chicago, IL, GO, Series A, FSA-Insured: | ||||
145,000
|
|
5.250% due 1/1/16 |
158,476
|
||
355,000
|
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Call 1/1/14 @ 100, 5.250% due 1/1/16 (b) |
393,805
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||
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Chicago, IL, Midway Airport Revenue: | ||||
2,000,000
|
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Series A, MBIA-Insured, 5.500% due 1/1/29 |
2,066,640
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||
2,000,000
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Series B, MBIA-Insured, 5.625% due 1/1/29 (c) |
2,062,200
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1,250,000
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Chicago, IL, Sales Tax Revenue, FSA-Insured, 5.000% due 1/1/22 |
1,324,138
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2,000,000
|
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Illinois DFA, Revolving Fund Revenue, 5.250% due 9/1/12 |
2,196,620
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1,000,000
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Illinois EFA Revenue, Northwestern University, 5.500% due 12/1/13 |
1,103,210
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1,500,000
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Illinois Health Facilities Authority Revenue, Refunding, Lutheran General | |||
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Health System, Series C, 7.000% due 4/1/14 |
1,806,645
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|||
1,500,000
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Illinois State, GO, First Series, FSA-Insured, 5.500% due 5/1/16 |
1,696,740
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Total Illinois |
16,840,924
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Indiana 3.3%
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|||||
1,195,000
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Indiana Health Facility Financing Authority, Hospital Revenue, Community | |||
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Hospital Project, Series A, AMBAC-Insured, 5.000% due 5/1/35 |
1,241,067
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|||
1,000,000
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Indiana State DFA Environment Improvement Revenue, USX Corp. Project, | |||
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5.250% due 12/1/22 |
1,078,770
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1,750,000
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Indiana State Revolving Fund Revenue, Series B, 5.000% due 8/1/23 |
1,810,708
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Total Indiana |
4,130,545
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Iowa 0.9%
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|||||
1,000,000
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Iowa Finance Authority, Hospital Facility Revenue, 6.750% due 2/15/16 |
1,145,890
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1
SALOMON BROTHERS MUNICIPAL PARTNERS FUND INC.
Schedule of Investments (unaudited) (continued) | September 30, 2005 |
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Kansas 1.3%
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|||||
$ |
1,430,000 |
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Kansas State Development Finance Authority, Health Facilities Revenue, | ||
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Sisters of Charity, Series J, 6.250% due 12/1/28 | $ |
1,578,877 |
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Maryland 5.6%
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|||||
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Maryland State Health & Higher Educational Facilities Authority Revenue: | ||||
1,500,000
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Carroll County General Hospital, 6.000% due 7/1/37 |
1,596,510
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1,000,000
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Suburban Hospital, Series A, 5.500% due 7/1/16 |
1,093,560
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University of Maryland Medical Systems: | ||||
1,000,000
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6.750% due 7/1/30 |
1,112,840
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500,000
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6.000% due 7/1/32 |
543,220
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2,500,000
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Northeast Maryland Waste Disposal Authority, Solid Waste Revenue, | |||
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AMBAC-Insured, 5.500% due 4/1/15 (c) |
2,710,650
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|||
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Total Maryland |
7,056,780
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Massachusetts 5.0%
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|||||
2,500,000
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Massachusetts State Health & EFA Revenue, Partners Healthcare System, | |||
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Series C, 5.750% due 7/1/32 |
2,748,000
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Massachusetts State Water Pollution Abatement Trust Revenue, MWRA | ||||
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Program, Series A: | ||||
2,540,000
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5.750% due 8/1/29 |
2,765,578
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630,000
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Call 8/1/09 @101, 5.750% due 8/1/29 (b) |
691,261
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||
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Total Massachusetts |
6,204,839
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|||
Michigan 1.3%
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|||||
1,500,000
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Michigan State, Hospital Finance Authority Revenue, Trinity Health, Series | |||
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C, 5.375% due 12/1/30 |
1,571,145
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Nevada 1.0%
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|||||
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Nevada Housing Division Revenue, Single-Family Program, Series B-2: | ||||
1,200,000
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6.400% due 10/1/25 (c) |
1,207,356
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70,000
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6.950% due 10/1/26 (c) |
70,225
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Total Nevada |
1,277,581
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New Hampshire 0.1%
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|||||
125,000
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New Hampshire State HFA, Single-Family Residential Revenue, Series A, | |||
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6.800% due 7/1/15 (c) |
128,295
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New Jersey 12.2%
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New Jersey EDA: | ||||
5,150,000
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PCR, Revenue, Public Service Electric and Gas Co. Project, Series A,
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MBIA-Insured, 6.400% due 5/1/32 (c)
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5,230,752
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2,500,000
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School Facilities Construction, Revenue, Series O, 5.125% due 3/1/28
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2,628,600
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4,450,000
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Water Facilities
Revenue, New Jersey American Water Co. Inc. Project,
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|||
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Series A, FGIC-Insured, 6.875% due 11/1/34 (c)
|
4,552,127
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|||
1,000,000
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New Jersey Health Care Facilities Financing Authority Revenue, Hackensack
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|||
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University Medical Center, 6.000% due 1/1/25
|
1,068,470
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|||
1,695,000
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New Jersey State, EFA Revenue, Princeton University, Series A, 5.000% due | |||
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7/1/21 |
1,824,990
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|||
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Total New Jersey |
15,304,939
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New York 11.9%
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|||||
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New York City, NY, GO: | ||||
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Series A: | ||||
110,000
|
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6.000% due 5/15/30 |
121,385
|
||
890,000
|
|
Call 5/15/10 @101, 6.000% due 5/15/30 (b) |
1,002,968
|
||
500,000
|
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Series G, 5.000% due 12/1/33 |
517,100
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New York City, NY, Municipal Water Finance Authority, Water & Sewer |
See Notes to Schedule of Investments.
2
SALOMON BROTHERS MUNICIPAL PARTNERS FUND INC.
Schedule of Investments (unaudited) (continued) | September 30, 2005 |
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New York 11.9% (continued) |
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Systems Revenue: | ||||
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Series B: | ||||
$ |
1,000,000 |
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5.125% due 6/15/31 | $ |
1,034,100 |
1,175,000
|
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Call 6/15/07 @ 101, 5.750% due 6/15/29 (b) |
1,240,236
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2,000,000
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Series D, 5.000% due 6/15/37 |
2,083,900
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1,250,000
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New York City, NY, TFA Revenue, Series A, 5.500% due 11/15/17 |
1,385,612
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New York State Dormitory Authority Revenue, Court Facilities Lease, | ||||
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NYC Issue, Non State Supported Debt, Series A,
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||||
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AMBAC-Insured: | ||||
1,000,000 |
5.500% due 5/15/28 | 1,172,430 |
|||
5,365,000
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5.500% due 5/15/30 |
6,282,522
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Total New York |
14,840,253
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|||
Ohio 7.1%
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|||||
2,000,000
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Miami County, OH, Hospital Facilities Revenue, Upper Valley Medical | |||
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Center, Series C, 6.250% due 5/15/13 |
2,065,520
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|||
6,700,000
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Ohio State Water Development Authority, Solid Waste Disposal Revenue, | |||
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North Star BHP Steel, Cargill Inc., 6.300% due 9/1/20 (c) |
6,844,050
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|||
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Total Ohio |
8,909,570
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|||
Pennsylvania 0.2%
|
|||||
250,000
|
|
Philadelphia, PA, School District GO, Series A, FSA-Insured, Call 2/1/12 @ | |||
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100, 5.500% due 2/1/31 (b) |
277,775
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|||
Puerto Rico 2.8%
|
|||||
3,000,000
|
|
Puerto Rico Commonwealth Infrastructure Financing Authority, Series C, | |||
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AMBAC-Insured, 5.500% due 7/1/25 |
3,510,930
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Tennessee 5.9%
|
|||||
2,900,000
|
|
Humphreys County, TN, IDB, Solid Waste Disposal Revenue, E.I. du Pont de | |||
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Nemours & Co. Project, 6.700% due 5/1/24 (c) |
2,972,790
|
|||
3,500,000
|
|
Memphis-Shelby County, TN, Airport Authority Revenue, Series D, | |||
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AMBAC-Insured, 6.000% due 3/1/24 (c) |
3,810,240
|
|||
590,000
|
|
Tennessee Housing Development Agency Revenue, Homeownership | |||
|
Program, Series 2B, 6.350% due 1/1/31 (c) |
596,773
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|||
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Total Tennessee |
7,379,803
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|||
Texas 11.8%
|
|||||
2,500,000
|
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Aledo, TX, GO, ISD, School Building, Series A, PSF-Insured, 5.000% due | |||
|
2/15/30 |
2,600,450
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|||
1,000,000
|
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Edgewood, TX, ISD, PSFG-Insured, 5.250% due 2/15/18 |
1,091,970
|
||
1,500,000
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Gulf Coast Waste Disposal Authority, TX, Revenue, Series A, 6.100% due | |||
|
8/1/24 (c) |
1,601,130
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|||
1,165,000
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Harris County, TX, Health Facilities Development Corp. Hospital Revenue,
|
|||
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Memorial Hermann Healthcare System, Series A, 5.250% due 12/1/17
|
1,238,080
|
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1,500,000
|
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Houston, TX, Utility System Revenue, Combined First Lien, FSA-Insured,
|
|||
|
5.000% due 11/15/35 |
1,564,095
|
|||
1,600,000
|
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Lake Dallas, TX, GO, ISD, School Building, PSF-Insured, 5.000% due | |||
|
8/15/34 |
1,656,736
|
|||
100,000
|
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North Harris Montgomery Community College District, TX, GO, FGIC- | |||
|
Insured, 5.375% due 2/15/16 |
109,134
|
|||
3,500,000
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Texas State Turnpike Authority Revenue, First Tier, Series A, AMBAC- | |||
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Insured, 5.500% due 8/15/39 |
3,828,545
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1,000,000
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Williamson County, TX, GO, MBIA-Insured, 5.250% due 2/15/21 |
1,096,890
|
||
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Total Texas |
14,787,030
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Washington 5.6%
|
|||||
1,000,000
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Chelan County, WA, Public Utility District, Chelan Hydro System No.1, | |||
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Construction Revenue, Series A, AMBAC-Insured, 5.450% due 7/1/37 (c)
|
1,059,250
|
See Notes to Schedule of Investments.
3
SALOMON BROTHERS MUNICIPAL PARTNERS FUND INC.
Schedule of Investments (unaudited) (continued) | September 30, 2005 |
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Washington 5.6% (continued)
|
|||||
$ | 4,250,000 |
|
Seattle, WA, GO, Series B, FSA-Insured, Call 12/1/09 @ 101, 5.750% due
|
||
|
12/1/28
(b)
|
$ | 4,703,900 | ||
1,200,000 |
|
Washington State Public Power Supply System Revenue, Nuclear Project No.
|
|||
|
1, Series A, MBIA-Insured
, 5.125% due 7/1/17
|
1,272,828 | |||
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Total Washington | 7,035,978 | |||
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TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
|
||||
|
(Cost $117,995,385)
|
123,528,466 | |||
SHORT-TERM INVESTMENTS(d) 1.2% | |||||
Nevada 1.0% |
|||||
1,300,000 | Clark County, NV, Improvement District, Special Assessment, Series 128-A, |
||||
LOC-Bayerische Hypo-und Vereinsbank, 2.980%, 10/5/05 |
1,300,000 | ||||
Texas 0.2%
|
|||||
190,000 |
|
Bell County, TX, Health Facilities Development Corp. Revenue, Scott and
|
|||
|
White Memorial Hospital, Series 2001-2, MBIA-Insured, 2.810%, 10/3/05
|
190,000 | |||
|
TOTAL SHORT-TERM INVESTMENTS (Cost $1,490,000) | 1,490,000 | |||
|
TOTAL INVESTMENTS 100.0% (Cost $119,485,385#) | $ |
125,018,466 | ||
|
| All ratings are by Standard & Poors Ratings Service, unless otherwise footnoted. | |
(a) | Rating by Moody's Investors Service. | |
(b) | Pre-Refunded bonds are escrowed with government securities and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings. | |
(c) | Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (AMT). | |
(d) | Variable rate demand obligations have a demand feature under which the fund could tender them back to the issuer on no more than 7 days notice. Date shown is the date of the next interest rate change. | |
# | Aggregate cost for federal income tax purposes is substantially the same. | |
Abbreviations used in this schedule: AMBAC - Ambac Assurance Corporation DFA - Development Finance Agency EDA - Economic Development Authority EFA - Educational Facilities Authority FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance GO - General Obligation HFA - Housing Finance Authority IDB - Industrial Development Board ISD - Independent School District LOC - Letter of Credit MBIA - Municipal Bond Investors Assurance Corporation PCR - Pollution Control Revenue PSFG - Permanent School Fund Guaranty TFA - Transitional Finance Authority VRDO - Variable Rate Demand Obligation |
See Notes to Schedule of Investments.
4
SALOMON BROTHERS MUNICIPAL PARTNERS FUND INC.
Summary of Investments by Industry* (unaudited) | September 30, 2005 |
Education | 16.6
|
% |
Pollution | 16.4
|
|
Healthcare | 16.0
|
|
Pre-Refunded | 11.2
|
|
Transportation | 11.2
|
|
Utilities | 5.9
|
|
General Obligation | 4.3
|
|
Industrial Development | 3.9
|
|
Water | 3.6
|
|
General Development | 3.2
|
|
Facilities | 2.8
|
|
Power | 1.9
|
|
Housing | 1.6
|
|
Bond Bank | 1.4
|
|
100.0
|
% |
|
* As a percentage of total investments. |
Bond Ratings
(unaudited)
The definitions of the applicable rating symbols are set forth below:
Standard & Poors Ratings Service (Standard & Poors)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 & Poors. 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 issues 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 bonds 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. |
D | | Bonds rated D are in default and payment of interest and/or repayment of principal is in arrears. |
Moodys Investors Service (Moodys)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 as 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. |
Ba | | Bonds rated Ba are judged to have speculative elements; their future cannot be considered as well assured. Often the protection of interest and principal payments may be very moderate and therefore not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class. |
B | | Bonds rated B are 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 may be in default, or present elements of danger may exist with respect to principal or interest. |
Ca | | Bonds rated Ca represent obligations which are speculative in a high degree. Such issues are often in default or have other marked short-comings. |
C | | Bonds rated C are the lowest class of bonds and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing. |
NR | | Indicates that the bond is not rated by Standard & Poors or Moodys. |
Short-Term Security Ratings
(unaudited)
SP-1 |
| Standard & Poors highest rating indicating very strong or strong capacity to pay principal and interest; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign. |
A-1 |
| Standard & Poors highest commercial paper and variable-rate demand obligation (VRDO) rating indicating that the degree of safety regarding timely payment is either overwhelming or very strong; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign. |
VMIG 1 |
| Moodys highest rating for issues having a demand feature VRDO. |
P-1 |
| Moodys highest rating for commercial paper and for VRDO prior to the advent of the VMIG 1 rating. |
1. Organization and Significant Accounting Policies
The Salomon Brothers Municipal Partners Fund Inc. (the Fund) was incorporated in Maryland on November 24, 1992 and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940 ("1940 Act"), as amended.
The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (GAAP).
(a) Investment Valuation. Securities are valued at the mean between the 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. Securities for which market quotations are not readily available or where market quotations are determined not to reflect fair value, will be valued in good faith by or under the direction of the Funds Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates value.
(b) Security Transactions. Security Transactions are accounted for on a trade date basis.
2. InvestmentsAt September 30, 2005, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
Gross unrealized appreciation | $ | 5,973,926 | |
Gross unrealized depreciation | (440,845 | ) | |
|
|||
Net unrealized appreciation | $ | 5,533,081 | |
|
ITEM 2.
|
CONTROLS AND PROCEDURES. | |
|
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(a) |
The registrants principal executive officer and principal financial officer have
concluded
that the registrants 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 registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants last fiscal quarter that have materially affected, or are likely to materially affect the registrants internal control over financial reporting. | |
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ITEM 3.
|
EXHIBITS. | |
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Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto. |
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 Inc.By | ||
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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.
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By | ||
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