AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 15, 1999. SECURITIES ACT FILE NO. 333-88929 - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ___________________ FORM N-14 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X] PRE-EFFECTIVE AMENDMENT NO. 2 [X] POST-EFFECTIVE AMENDMENT NO. [_] SMITH BARNEY MUNI FUNDS (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER) 388 Greenwich Street, New York, New York 10013 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) (212) 816-6474 (REGISTRANT'S AREA CODE AND TELEPHONE NUMBER) CHRISTINA T. SYDOR, ESQ. Smith Barney Muni Funds 388 Greenwich Street, New York, New York 10013 (NAME AND ADDRESS OF AGENT FOR SERVICE) WITH COPIES TO: BURTON M. LEIBERT, ESQ. DAVID M. CARTER, ESQ. Willkie Farr & Gallagher Hunton & Williams 787 Seventh Avenue 600 Peachtree Street, N.E., Suite 4100 New York, NY 10019-6099 Atlanta, Georgia 30308-2216 APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: As soon as practicable after this Registration Statement becomes effective. TITLE OF SECURITIES BEING REGISTERED: Shares of Beneficial Interest ($.001 par value) of the Georgia Portfolio, a Series of the Registrant ___________________ The Registrant has registered an indefinite amount of securities under the Securities Act of 1933 pursuant to Section 24(f) under the Investment Company Act of 1940, as amended; accordingly, no fee is payable herewith because of reliance upon Section 24(f). - -------------------------------------------------------------------------------- PART A INFORMATION REQUIRED IN THE PROXY STATEMENT/PROSPECTUS Part A of this Registration Statement on Form N-14 (the "Registration Statement") is incorporated by reference into this Pre-Effective Amendment No. 2 to the Registration Statement from the initial filing of the Registration Statement with the Securities and Exchange Commission on October 13, 1999. PART B INFORMATION REQUIRED IN THE STATEMENT OF ADDITIONAL INFORMATION STATEMENT OF ADDITIONAL INFORMATION DATED NOVEMBER 15, 1999 Acquisition of the Assets of ALTERMAN INVESTMENT FUND, INC. ("Alterman") 182 Hilderbrand Drive, Suite 102 Atlanta, Georgia 30328 (404) 237-9891 By and in Exchange for Shares of THE GEORGIA PORTFOLIO ("Georgia Portfolio") a series of SMITH BARNEY MUNI FUNDS 388 Greenwich Street New York, New York 10013 (212) 816-6474 This Statement of Additional Information, relating specifically to the proposed transfer of all or substantially all of the assets of Alterman to the Georgia Portfolio, a series of Muni Funds, in exchange for Class A shares of the Georgia Portfolio and the assumption by the Georgia Portfolio of stated liabilities of Alterman, consists of this cover page and the following described documents, each of which accompanies this Statement of Additional Information and is incorporated herein by reference. 1. Statement of Additional Information for the Georgia Portfolio, dated July 29, 1999. 2. Annual Report of the Georgia Portfolio for the year ended March 31, 1999. 3. Annual Report of Alterman for the year ended April 30, 1999. This Statement of Additional Information is not a prospectus. A combined Prospectus/Proxy Statement, dated November 15, 1999, relating to the above- referenced matter may be obtained without charge by calling or writing Alterman or the Georgia Portfolio at the applicable telephone number or address set forth above. This Statement of Additional Information should be read in conjunction with the combined Prospectus/Proxy Statement. B-1 FINANCIAL STATEMENTS The Annual Report of the Georgia Portfolio for the year ended March 31, 1999 and the Annual Report of Alterman for the year ended April 30, 1999, each including audited financial statements, notes to the financial statements and report of the independent auditors, are incorporated by reference herein. To obtain a copy of the Annual Reports without charge, please call Alterman at (800) 861-1844 or the Georgia Portfolio at (800) 451-2010, as applicable. PRO FORMA FINANCIAL STATEMENTS (UNAUDITED) The following tables set forth the unaudited pro forma condensed Statement of Assets and Liabilities as of April 30, 1999, and the unaudited pro forma condensed Statement of Operations for the twelve month period ended April 30, 1999 for the Georgia Portfolio and Alterman as adjusted giving effect to the Reorganization. PRO FORMA CONDENSED STATEMENT OF ASSETS AND LIABILITIES AS OF APRIL 30, 1999 (UNAUDITED) Georgia Portfolio Alterman Pro forma Georgia Portfolio (Actual) (Actual) Adjustments (As adjusted) ------------------ -------------- ------------------- ------------------- Investments, at value $ 55,926,942 $ 22,174,734 $ -- $ 78,101,676 Cash 16,283 16,283 Other assets less liabilities 251,853 134,755 $ 208,748 595,356 ----------------- -------------- ------------------- ------------------- Net assets $ 56,178,795 $ 22,325,772 $ 208,748 $ 78,713,315 ================= ============== =================== =================== Shares outstanding 4,196,035 787,769 879,544 5,863,348 Net asset value per share $ 13.39 $ 28.34 $ 13.42 _________________________ B-2 COMBINED ASSETS AND LIABILITIES AT APRIL 30, 1999 (UNAUDITED) Georgia Portfolio Alterman Pro forma Georgia Portfolio (Actual) (Actual) Adjustments (As adjusted) ------------------ --------------- --------------- ------------------- Assets: Investments, at value $ 55,926,941.90 $ 22,174,734.00 $ -- $ 78,101,675.90 Cash (283,128.32) 16,283.00 -- (266,845.32) Receivable for Fund shares sold 23,459.94 -- -- 23,459.94 Receivable for securities sold -- -- -- -- Interest receivable 909,114.59 343,231.00 -- 1,252,345.59 Prepaid Expenses -- 272.00 -- 272.00 ----------------- --------------- -------------- ------------------- Total Assets $ 56,576,388.11 $ 22,534,520.00 $ 79,110,908.11 Liabilities: Payable for fund shares purchased 23,192.11 -- -- 23,192.11 Payable for securities purchased 186,056.72 -- -- 186,056.72 Management fees payable 129,506.69 3,928.00 (3,928.00) 129,506.69 Distribution fees payable 6,483.10 -- -- 6,483.10 Servicing fees payable 991.39 -- -- 991.39 Dividend payable 208,262.03 204,820.00 (204,820.00) 208,262.03 Accrued expenses and other liabilities (156,899.24) -- -- (156,899.24) ----------------- --------------- -------------- ------------------- Total Liabilities 397,592.80 208,748.00 (208,748.00) 397,592.80 Total Net Assets $ 56,178,795.31 $ 22,325,772.00 $ 78,713,315.31 Net assets: Par value of shares of beneficial interest $ 4,196.29 $ 1,969,423.00 -- $ 1,973,619.29 Capital paid in excess of par 54,009,203.26 389,555.00 -- 54,398,758.26 Net Assets transferred at 1980 Reorg. -- 17,957,417.00 -- 17,957,417.00 Undistributed/Overdistributed NII (11,825.24) 596,364.00 208,748 793,238.76 Accumulated net realized gain/(loss) (104,287.00) 705,937.00 -- 601,650.00 Net unrealized appreciation of investments 2,281,508.00 707,076.00 -- 2,988,584.00 ----------------- --------------- -------------- ------------------- Total Net Assets $ 56,178,795.31 $ 22,325,722.00 $ 78,713,315.31 Outstanding Shares: 4,196,034.74 787,769.00 A 2,612,166.01 787,769.000 879,544.089 4,279,479.09 B 1,037,740.44 -- -- 1,037,740.44 L 546,128.29 -- -- 546,128.29 Y -- -- -- -- NAV: A $ 13.39 $ 28.34 2.11650 B $ 13.39 -- -- L $ 13.38 -- -- Y -- -- -- B-3 PRO FORMA CONDENSED STATEMENT OF OPERATIONS FOR THE TWELVE MONTH PERIOD ENDED APRIL 30, 1999 (UNAUDITED) Georgia Portfolio Alterman Pro Forma Georgia (actual) (actual) Adjustments Portfolio --------------------------------------------------------------------------- Investment Income Interest Income 2,431,531 1,095,629 3,527,160 Total Investment Income Expenses: Management Fee $221,437 $24,858 $80,144 $326,439 (2) Distribution 175,473 0 102,594 278,067 Custody, Accounting, Legal & Auditing 19,964 70,061 (60,025) 30,000 Shareholder Servicing 25,897 8,220 (11,337) 22,780 Shareholder Communications 12,190 0 0 12,190 Pricing Service 7,418 0 0 7,418 Registration 3,976 0 0 3,976 Trustees\Directors 1,766 14,000 (14,000) 1,766 Taxes & licenses 9,799 (9,799) 0 Office Rent & Expenses 14,916 (14,916) 0 Other 3,606 7,775 (5,000) 6,381 --------------------------------------------------------------------------- Total Expenses 471,727 149,629 67,661 689,017 Management Fee Waivers (48,063) 0 48,063 0 --------------------------------------------------------------------------- Net Expenses $423,664 $149,629 $115,724 $689,017 --------------------------------------------------------------------------- Net investment income (loss) $2,007,867 $946,000 $115,724 $2,838,143 Net Realized and Unrealized Gain (Loss) on Investments: Net realized gain (loss) from Investments 26,950 26,978 53,928 Net unrealized appreciation (depreciation) 2,281,508 161,626 2,443,134 --------------------------------------------------------------------------- Net increase in assets from operations $4,316,325 $1,134,604 $5,335,205 =========================================================================== Assumptions for projected expenses: (1) For asset based expenses, the net assets of Alterman Investment Fund at 4/30/99 are assumed to be average net assets for the year ended 4/30/99. (2) Based on combined net assets at an annual rate of .45%. (3) Based on combined net assets at an annual rate of .15%, .65%, .70% for Class A, B, and L, respectively. Assumes assets of Alterman to be merged into Class A (4) Assumes combined entity's expense will equal current Georgia plus approximately $10,000. (5) Based on combined net assets at an annual rate of .024%, .045%, and .038% for Class A, B, and L, respectively. (6) The fund currently discontinued waivers. (7) Assuming 65 bps expense cap, management fees taken would be approximately 40 bps. B-4 - -------------------------------------------------------------------------------- Combined Schedule of Investments April 30, 1999 - -------------------------------------------------------------------------------- GEORGIA PRO FORMA GEORGIA ALTERMAN COMBINED FACE FACE FACE SECURITY AMOUNT VALUE AMOUNT VALUE AMOUNT VALUE - --------------------------------------------------------------------------------------------------------------------------------- Acworth Housing Authority Revenue, 6.125% due 3/1/17 $500,000 $532,500 $500,000 $532,500 Albany Dougherty County, Inner City Authority, 5.100% due 1/1/07 $200,000 $208,630 200,000 208,630 Albany Dougherty Payroll Development Authority, 5.200% due 5/15/28 1,000,000 997,500 1,000,000 997,500 Athens Water & Sewer Revenue, 10.000% due 7/1/01 140,000 141,445 140,000 141,445 Atlanta Ad Valorem Property Tax Refunding, 5.000% due 12/1/20 500,000 495,625 500,000 495,625 Atlanta Urban Residential Finance Authority, Multi-Family Housing Revenue: Cascade Pines Housing Project, 6.250% due 9/1/10 1,180,000 1,268,500 1,180,000 1,268,500 New Community, Series A-1, 5.450% due 11/20/17 1,000,000 1,028,750 1,000,000 1,028,750 Shamrock Garden Apartments Project, 6.250% due 4/1/19 500,000 500,625 500,000 500,625 Atlanta Water Revenue, 5.500% due 11/1/19 1,000,000 1,068,750 1,000,000 1,068,750 Bartow County School District, 5.200 % due 5/1/07 250,000 267,295 250,000 267,295 Bibb County Development Authority Revenue, 5.000% due 10/1/08 1,000,000 990,000 1,000,000 990,000 Burke County Development Authority PCR, 7.500% due 1/1/03 285,000 305,663 285,000 305,663 Butts County COP, 6.750% due 12/1/14 250,000 286,250 250,000 286,250 Camden County Joint Development Authority PCR, 5.000% due 1/1/12 200,000 197,750 200,000 197,750 Carroll County School District, 3.850% due 4/1/03 300,000 301,311 300,000 301,311 Carroll County Water Authority, Water & Sewer Revenue, 5.250% due 7/1/18 1,015,000 1,035,300 1,015,000 1,035,300 Cartersville Development Authority Revenue Refunding, 6.125% due 5/1/27 500,000 543,750 500,000 543,750 Clayton County Water Authority Revenue 5.100% due 5/1/16 1,000,000 1,027,500 1,000,000 1,027,500 Chatam County School District, 4.500% due 8/1/05 500,000 512,395 500,000 512,395 Chatam County School District, 5.300% due 8/1/09 200,000 211,910 200,000 211,910 Clarke County Hospital Authority, 5.500% due 1/1/00 500,000 507,640 500,000 507,640 Clayton County Hospital Authority, 6.800% due 8/1/04 505,000 549,480 505,000 549,480 Clayton County Water and Sewer Authority, 6.100% due 5/1/00 310,000 318,519 310,000 318,519 Clayton County Water and Sewer AuthorIty, 6.100% due 5/1/01 175,000 182,665 175,000 182,665 Cobb-Marietta Counties Coliseum and Exhibit Hall Authority, 10.250% due 2/1/02 135,000 145,125 135,000 145,125 Cobb-Marietta Counties Coliseum and Exhibit Hall Authority, 5.625% due 10/1/26 1,100,000 1,205,875 1,100,000 1,205,875 Cobb-Marietta Counties Coliseum and Exhibit Hail Authority, 7.750% due 2/1/07 680,000 777,750 680,000 777,750 Cobb County Housing Authority Refunding, 6.875% due 10/1/17 240,000 254,700 240,000 254,700 Colquitt County Development Authority Revenue, zero coupon due 12/1/21 1,875,000 527,344 1,875,000 527,344 Columbia County Courthouse, 5.625% due 2/1/17 1,000,000 1,061,250 1,000,000 1,061,250 Cobb County Hospital Authority, 5.500% due 4/1/04 500,000 529,730 500,000 529,730 Cobb County Hospital Authority, 3.900% due 4/1/06 400,000 392,308 400,000 392,308 Cobb County School District, 5.000% due 2/1/03 300,000 313,356 300,000 313,356 Cobb County Water & Sewer Revenue, 4.600% due 7/1/00 200,000 203,110 200,000 203,110 Columbia County School District, 4.500% due 4/1/02 385,000 393,485 385,000 393,485 Columbus Hospital Authority, 5.200% due 6/1/04 320,000 337,270 320,000 337,270 Columbus Water and Sewer Revenue, 8.000% due 5/1/00 300,000 306,936 300,000 306,936 Columbus Water and Sewer Revenue, 6.300% due 5/1/07 505,000 555,081 505,000 555,081 Coweta County Board of Education, 5.250% due 8/1/99 200,000 200,980 200,000 200,980 Coweta County School District, 5.100% due 2/1/00 300,000 304,350 300,000 304,350 De Kalb County, 5.300% due 1/1/01 395,000 406,246 395,000 406,246 De Kalb County, 5.800% due 1/1/02 150,000 158,427 150,000 158,427 De Kalb County, 5.000% due 11/1/06 755,000 793,716 755,000 793,716 De Kalb County, 7.150% due 1/1/07 310,000 323,907 310,000 323,907 B-5 - -------------------------------------------------------------------------------- Combined Schedule of Investments April 30, 1999 - -------------------------------------------------------------------------------- GEORGIA PRO FORMA GEORGIA ALTERMAN COMBINED FACE FACE FACE SECURITY AMOUNT VALUE AMOUNT VALUE AMOUNT VALUE - ---------------------------------------------------------------------------------------------------------------------------------- De Kalb County Housing Authority, Multi-Family Housing Revenue, 7.050% due 1/1/39 $1,000,000 $1,127,500 $1,000,000 $1,127,500 De Kalb County Housing Authority, Multi-Family Housing Revenue, 7.750% due 1/1/26 300,000 318,366 300,000 318,366 De Kalb County School District, 4.500% due 7/1/99 $ 400,000 $ 400,866 400,000 400,868 De Kalb County School District, 5.600% due 7/1/09 300,000 322,122 300,000 322,122 Douglas County School District, 5.000% due 1/1/05 195,000 208,262 195,000 208,262 Douglasville-Douglas County Water & Sewer Authority Revenue, 5.625% due 6/1/15 625,000 682,031 625,000 682,031 Downtown Savannah Development Authority, 4.000% due 8/1/00 760,000 783,507 760,000 783,507 Downtown Savannah GO, 4.500% due 8/1/07 250,000 252,963 250,000 252,963 Effingham County Development Authority, 5.625% due 7/1/18 1,000,000 1,015,000 1,000,000 1,015,000 Fayette County Water Revenue, 5.000% due 10/1/08 255,000 268,273 255,000 268,273 Federated Georgia Municipal, Cash Trust 530,442 530,442 530,442 530,442 Floyd County Hospital Authority, 5.100% due 7/1/06 475,000 497,539 475,000 497,539 Forsyth County School District, 5.250% due 7/1/09 200,000 216,630 200,000 216,630 Forsyth County School District Refunding, 5.100% due 7/1/11 500,000 525,625 500,000 525,625 Fulco Hospital Authority Revenue, 4.875% due 11/15/15 1,000,000 988,750 1,000,000 988,750 Fulton County Multi-Family Housing Authority Revenue, 6.300 due 7/1/16 1,000,000 1,070,000 1,000,000 1,070,000 Fulton County Hospital Authority, 4.600% due 10/1/02 250,000 256,003 250,000 256,003 Fulton County Housing Authority, 6.600% due 3/1/28 155,000 163,912 155,000 163,912 Fulton County School District, 5.375% due 1/1/18 1,000,000 1,062,500 1,000,000 1,062,500 Fulton County Water & Sewer Revenue: 6.375% due 1/1/14 290,000 338,938 290,000 338,938 6.375% due 1/1/14 10,000 11,626 10,000 11,626 5.000% due 1/1/18 1,000,000 990,000 1,000,000 990,000 Georgia Local Government, 4.750% due 6/1/28 2,000,000 1,887,500 2,000,000 1,887,500 Georgia Municipal Electric Authority Revenue, 7.250% due 1/1/24 600,000 783,000 600,000 783,000 Georgia Municipal Electric Authority Revenue, 5.500% due 1/1/20 1,000,000 1,051,250 1,000,000 1,051,250 Georgia Municipal Gas Authority Revenue, 5.000% due 11/1/13 500,000 506,875 500,000 506,875 Georgia Municipal Gas Authority Revenue, 6.300% due 7/1/09 500,000 544,375 500,000 544,375 Georgia State General Obligation, 4.400% due 7/1/01 270,000 275,319 270,000 275,319 Georgia State General Obligation, 6.800% due 11/1/04 200,000 213,654 200,000 213,654 Georgia State HFA: 4.300% due 12/1/05 185,000 185,289 185,000 185,289 4.450% due 12/1/07 250,000 250,700 250,000 250,700 Series A, 6.600% due 12/1/23 350,000 368,812 350,000 368,812 Series A-1, 5.300% due 6/1/17 1,000,000 1,018,750 1,000,000 1,018,750 Series A-2, 6.550% due 12/1/27 500,000 530,625 500,000 530,625 Georgia State Public Improvements, Series D, 5.250% due 10/1/14 500,000 532,500 500,000 532,500 Georgia State Residential Finance Authority, 7.250% due 12/1/21 285,000 302,812 285,000 302,812 Georgia State Tollway Authority Revenue Refunding, 5.000% due 7/1/10 1,000,000 1,055,000 1,000,000 1,055,000 Griffin - Spalding County School District, 5.050% due 2/1/07 250,000 260,325 250,000 260,325 Gwinnett County Recreational Authority, 5.1 00% due 2/1/00 200,000 202,806 200,000 202,806 Gwinnett County Water & Sewer Revenue, 5.050% due 8/1/04 225,000 237,150 225,000 237,150 Hall County School District, 6.000% due 12/1/03 150,000 163,175 150,000 163,175 Henry County School District, 5.500% due 8/1/02 750,000 792,953 750,000 792,953 Hogansville Combined Public Utility System, 5.850% due 10/1/15 1000,000 1,097,500 1,000,000 1,097,500 Houston County School District, 5.050% due 3/1/08 250,000 259,675 250,000 259,675 B-6 - -------------------------------------------------------------------------------- Combined Schedule of Investments April 30, 1999 - -------------------------------------------------------------------------------- GEORGIA PRO FORMA GEORGIA ALTERMAN COMBINED FACE FACE FACE SECURITY AMOUNT VALUE AMOUNT VALUE AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LaGrange Water & Sewer Revenue, 6.900% due 1/1/01 $ 400,000 $ 417,304 $400,000 $417,304 Lawrenceville Housing Authority, 6.250% due 12/1/29 $1,000,000 $1,086,250 1,000,000 1,086,250 Macon Water Authority, Water & Sewer Revenue, 4.500% due 10/01/02 250,000 255,483 250,000 255,483 Macon Water Authority, Water & Sewer Revenue, 5.250% due 10/1/15 500,000 516,875 500,000 516,875 Marietta General Obligations, 5.000% due 1/1/00 275,000 278,240 275,000 278,240 Marietta General Obligations, 5.000% due 1/1/01 235,000 240,903 235,000 240,903 Marietta General Obligations School Buildings, 9.300% due 1/1/01 300,000 327,252 300,000 327,252 Metro Atlanta Rapid Transit Authority Revenue, 5.600% due 7/1/00 180,000 184,802 180,000 184,802 Metro Atlanta Rapid Transit Authority Revenue, 6.250% due 7/1/20 250,000 289,375 250,000 289,375 Milledgeville Water & Sewer Revenue, FSA-Insured, 6.000% due 12/1/21 500,000 565,625 500,000 565,625 Monroe County Development Authority PCR, 6.800% due 1/1/12 500,000 585,000 500,000 585,000 Monroe County Development Authority PCR, 5.250% due 1/1/15 1,080,000 1,127,250 1,080,000 1,127,250 Muni Gas Authority, 4.200% due 6/1/08 300,000 298,050 300,000 298,050 Muscogee County School District, 4.250% due 11/1/99 300,000 301,557 300,000 301,557 Paulding County, 5.550% due 8/1/09 300,000 317,235 300,000 317,235 Peachtree City Water & Sewer Authority, 5.375% due 3/1/22 1,000,000 1,027,500 1,000,000 1,027,500 Private Colleges & Universities Authority Revenue, 5.750% due 10/1/02 200,000 213,214 200,000 213,214 Private Colleges & Universities Authority Revenue: Agnes Scott College Project, 4.750% due 6/1/28 1,000,000 936,250 1,000,000 936,250 Emory University Project, Series A, 5.000% due 11/1/15 1,000,000 1,002,500 1,000,000 1,002,500 Emory University Project, 4.250% due 11/1/05 200,000 201,722 200,000 201,722 Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue, 10.250% 7/1/09 485,000 650,506 485,000 650,506 Puerto Rico Commonwealth Highway & Transportation Authority 5.000% due 7/1/36 1,500,000 1,471,875 1,500,000 1,471,875 Puerto Rico Commonwealth, Public Improvement, 4.500% due 7/1/23 2,290,000 2,115,388 2,290,000 2,115,388 Puerto Rico Electric Power Authority Revenue, 4.500% due 7/1/18 2,200,000 2,079,000 2,200,000 2,079,000 Puerto Rico Housing Bank and Finance Agency, 7.500% due 12/1/06 500,000 583,750 500,000 583,750 Puerto Rico Housing Bank and Finance Agency, 6.250% due 4/1/29 330,000 352,275 330,000 352,275 Puerto Rico Industrial Tourist Educational, Medical & Environmental Control Facility Finance Authority, 5.625% due 7/1/27 750,000 754,688 750,000 754,688 Puerto Rico Industrial Tourist Educational, Medical & Environmental Control Facility Finance Authority, 6.700% due 5/1/24 500,000 541,250 500,000 541,250 Richmond County Development Authority, 5.400% due 2/1/33 2,000,000 2,007,500 2,000,000 2,007,500 Richmond County Water and Sewer Revenue, 9.875% due 4/1/02 145,000 160,588 145,000 160,588 Richmond County Water and Sewer Revenue, 4.900% due 10/1/08 250,000 260,815 250,000 260,815 Rockdale County Development Authority, 7.500% due 1/1/26 1,000,000 1,063,750 1,000,000 1,063,750 Rockdale County School District 4,750% due 1/1/01 225,000 229,754 225,000 229,754 Rockdale County School District 6.000% due 1/1/04 250,000 272,220 250,000 272,220 Rockdale County Water and Sewer Revenue, 4.700% due 7/1/06 250,000 259,690 250,000 259,690 Savannah EDA, 6,200% due 9/1/04 500,000 524,355 500,000 524,355 Savannah Hospital Authority Revenue, 7.000% due 1/1/11 500,000 561,875 500,000 561,875 Savannah Hospital Authority Revenue, 5.250 due 7/1/14 725,000 747,656 725,000 747,656 Savannah EDA, PCR, 6.150% due 3/1/17 500,000 557,500 500,000 557,500 Savannah EDA. 5.850% due 1/1/09 515,000 559,058 515,000 559,058 Savannah EDA, zero coupon due 12/1/21 1,000,000 292,500 1,000,000 292,500 Savannah Water and Sewer Authority, 4.650% due 12/1/08 500,000 509,535 500,000 509,535 South Fulton Jail Authority, 5.550% due 12/1110 225,000 244,771 225,000 244,771 Tift County Development Authority, 5.250% due 2/1/08 300,000 312,645 300,000 312,645 Tri City Hospital Authority Revenue. South Fulton Hospital 10.250% due 7/1/06 620.000 796.700 620,000 796,700 B-7 - -------------------------------------------------------------------------------- Combined Schedule of Investments April 30, 1999 - -------------------------------------------------------------------------------- GEORGIA PRO FORMA GEORGIA ALTERMAN COMBINED FACE FACE FACE SECURITY AMOUNT VALUE AMOUNT VALUE AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- Troup County School District, 5.125% due 7/1/03 $500,000 $526,535 $500,000 $526,535 Virgin Islands HFA, 6.450% due 3/1/16 $235,000 $248,512 235,000 248,512 Virgin Islands Public Financing Authority Revenue, 5.500% due 10/1/18 1,000,000 1,018,750 1,000,000 1,018,750 Warner Robins Water & Sewer Authority, 5.600% due 711/99 440,000 441,747 440,000 441,747 Washington Wilkes Payroll Development, zero coupon due 12/1/21 2,000,000 562,500 2,000,000 562,500 ------------------------ ----------------------- ----------------------- TOTAL INVESTMENTS $57,185,000 $55,926,942 $21,340,442 $22,174,734 $78,525,442 $78,101,676 ======================== ======================= ======================= It is not currently anticipated that there would be a significant rebalancing of the Alterman portfolio securities following the consummation of the Reorganization. B-8 THE ANNUAL REPORT AND STATEMENT OF ADDITIONAL INFORMATION OF THE GEORGIA PORTFOLIO DATED MARCH 31, 1999 AND JULY 29, 1999, RESPECTIVELY, ARE INCORPORATED BY REFERENCE TO THE MOST RECENT FILINGS THEREOF BY SMITH BARNEY MUNI FUNDS B-9 THE ANNUAL REPORT AND PROSPECTUS OF ALTERMAN DATED APRIL 30, 1999 AND AUGUST 14, 1992, RESPECTIVELY, ARE INCORPORATED BY REFERENCE TO THE MOST RECENT FILINGS THEREOF BY ALTERMAN Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Proxy Statement/ Prospectus to the extent that a statement contained herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Proxy Statement/Prospectus. B-10 PART C OTHER INFORMATION Part C of this Registration Statement is incorporated by reference into this Pre-Effective Amendment No. 2 to the Registration Statement from Pre- Effective Amendment No. 1 to the Registration Statement filed with the Securities and Exchange Commission on November 10, 1999, and the initial filing of the Registration Statement on October 13, 1999. C-1 SIGNATURES Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has duly caused this amendment to the Registration Statement on Form N-14 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York and State of New York on the 15th day of November, 1999. SMITH BARNEY MUNI FUNDS By: /s/ Heath B. McLendon -------------------------------------- Heath B. McLendon President and Chief Executive Officer Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated. SIGNATURE TITLE DATE --------- ----- ---- /s/ Heath B. McLendon President, Chief Executive November 15, 1999 - ------------------------------------- Officer and Trustee Heath B. McLendon /s/ Lee Abraham* Trustee November 15, 1999 - ------------------------------------- Lee Abraham /s/ Allan J. Bloostein* Trustee November 15, 1999 - ------------------------------------- Allan J. Bloostein /s/ Jane F. Dasher* Trustee November 15, 1999 - ------------------------------------- Jane F. Dasher /s/ Donald R. Foley* Trustee November 15, 1999 - ------------------------------------- Donald R. Foley /s/ Paul Hardin III* Trustee November 15, 1999 - ------------------------------------- Paul Hardin III /s/ Richard E. Hanson* Trustee November 15, 1999 - ------------------------------------- Richard E. Hanson C-2 SIGNATURE TITLE DATE --------- ----- ---- /s/ Roderick C. Rasmussen* Trustee November 15, 1999 - ------------------------------------- Roderick C. Rasmussen /s/ John P. Toolan* Trustee November 15, 1999 - ------------------------------------- John P. Toolan /s/ Lewis E. Daidone Senior Vice President November 15, 1999 - ------------------------------------- and Treasurer Lewis E. Daidone *By: /s/ Christina T. Sydor Secretary November 15, 1999 -------------------------------- Christina T. Sydor Pursuant to Power of Attorney C-3