Citigroup Closed-End Funds Issue Statement
23 July 2004 - 9:45AM
PR Newswire (US)
Citigroup Closed-End Funds Issue Statement NEW YORK, July 22
/PRNewswire-FirstCall/ -- The following Citigroup closed-end funds
-- Citigroup Investments Corporate Loan Fund Inc., High Income
Opportunity Fund Inc., Intermediate Muni Fund, Inc., Managed High
Income Portfolio Inc., Managed Municipals Portfolio Inc., Municipal
High Income Fund Inc., Real Estate Income Fund Inc., Zenix Income
Fund Inc., Salomon Brothers Capital and Income Fund Inc., Salomon
Brothers Emerging Markets Debt Fund Inc., Salomon Brothers Emerging
Markets Floating Rate Fund Inc., Salomon Brothers Emerging Markets
Income Fund Inc., Salomon Brothers Emerging Markets Income Fund II
Inc., Salomon Brothers Global High Income Fund Inc., Salomon
Brothers Global Partners Fund Inc., Salomon Brothers Inflation
Management Fund Inc., Salomon Brothers Municipal Partners Fund
Inc., Salomon Brothers Municipal Partners Fund II Inc., The Salomon
Brothers Fund Inc., Salomon Brothers High Income Fund Inc., Salomon
Brothers High Income Fund II Inc., Salomon Brothers 2008 Worldwide
Dollar Government Term Trust Inc., and Salomon Brothers Worldwide
Income Fund Inc. -- today issued the following statement: Citigroup
has been notified by the Staff of the Securities and Exchange
Commission (SEC) that the Staff is considering recommending a civil
injunctive action and/or an administrative proceeding against
Citigroup Asset Management (CAM), including its applicable
investment advisory companies and Citicorp Trust Bank (CTB), an
internal transfer agent, relating to the creation and operation of
the internal transfer agent unit to serve certain CAM-managed
funds. CTB did not provide services to the Funds whose symbols are
listed below. This notification arises out of a previously
disclosed investigation by the SEC and the U.S. Attorney and
relates to CTB's entry in 1999 into the transfer agency business,
CAM's retention of, and agreements with an unaffiliated sub
transfer agent, the adequacy of the disclosures made to the fund
boards that approved the transfer agency arrangements, (including
CAM's failure to disclose a related revenue guarantee agreement
benefiting CAM and its affiliates), and CAM's operation of and
compensation for the transfer agency business. The revenue
guarantee described above was terminated in 1999 and CAM will be
paying the applicable funds, primarily through fee waivers, a total
of approximately $17 million (plus interest) that is the amount of
the revenue received by Citigroup relating to the revenue
guarantee. Citigroup is cooperating fully in the investigation and
will seek to resolve the matter in discussions with the SEC Staff.
Although there can be no assurance, Citigroup Asset Management does
not believe that this matter will have a material adverse affect on
the Funds whose symbols are listed below. Symbols: EDF, EFL, EHI,
EMD, ESD, HIF, HIO, HIX, GDF, IMF, MHF, MHY, MMU, MNP, MPT, RIT,
SBF, SBG, SBI, SBW, SCD, TLI, ZIF (EDF EFL EHI EMD ESD HIF HIO HIX
GDF IMF MHF MHY MMU MNP MPT RIT SBF SBG SBI SBW SCD TLI ZIF)
DATASOURCE: Citigroup Asset Management CONTACT: Brenda Grandell,
Director, Closed-End Funds, +1-212-291-3775, or Edward Giltenan,
Head of Public Relations, +1-212-559-6746, both of Citigroup Asset
Management
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