UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

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: (800) 451-2010

Date of fiscal year end: June 30
Date of reporting period: December 31, 2004

ITEM 1. REPORT TO STOCKHOLDERS.

The Semi-Annual Report to Stockholders is filed herewith.

S A L O M O N   B R O T H E R S   M U N I C I P A L   P A R T N E R S   F U N D   I I   I N C .

Letter from the Chairman

 

Dear Shareholder,

Despite rising interest rates, higher oil prices, threats of terrorism, geopolitical concerns and uncertainties surrounding the Presidential election, the U.S. economy continued to expand during the period. Following a 3.3% gain in the second quarter of 2004, gross domestic product (“GDP”)i was a robust 4.0% in the third quarter. While fourth quarter GDP figures have not yet been released, continued strong growth is expected.

Given the overall strength of the economy, Federal Reserve Board (“Fed”)ii monetary policy was seen as highly accommodative and expectations were that it would start raising rates to ward off the threat of inflation. As expected, the Fed raised its target for the federal funds rateiii by 0.25% to 1.25% on June 30, 2004—the first rate increase in four years. The Fed again raised rates in 0.25% increments during August, September, November, and December, bringing the target for the federal funds rate to 2.25% . After the end of the fund’s reporting period, at their February meeting, the Fed once again raised the target rate by 0.25% to 2.50% . Regardless of the economic expansion and higher interest rates, the overall bond market generated relatively strong returns during the reporting period.

  
R. Jay Gerken, CFA
Chairman and
Chief Executive Officer

For the six months ended December 31, 2004, the Salomon Brothers Municipal Partners Fund II Inc. returned 7.94%, based on its New York Stock Exchange (“NYSE”) market price and 6.05% based on its net asset value (“NAV”)iv per share. In comparison, the fund’s unmanaged benchmark, the Lehman Brothers Municipal Bond Indexv, returned 5.19% for the same time frame. The fund’s Lipper General Municipal Debt closed-end funds category averagevi was 8.04% . Please note that Lipper performance returns are based on each fund’s NAV.

Certain investors may be subject to the federal Alternative Minimum Tax, and state and local taxes apply. Capital gains, if any, are fully taxable. Please consult your personal tax advisor.

During this six-month period, the fund distributed dividends to shareholders totaling $0.4080 per share. The performance table shows the fund’s 30-day SEC yield as well as its six-month total return based on its NAV and market price as of December 31, 2004. Past performance is no guarantee of future results. The fund’s yields will vary.

FUND PERFORMANCE
AS OF DECEMBER 31, 2004
(unaudited)

    30-Day   6-Month
Price Per Share    SEC Yield   Total Return
$ 14.95 (NAV)    5.48 %    6.05 % 
$ 13.01 (Market Price)    6.30 %    7.94 % 

All figures represent past performance and are not a guarantee of future results. The fund’s yields will vary.

Total returns are based on changes in NAV or market price, respectively. Total returns assume the reinvestment of all dividends and/or capital gains distributions, if any, in additional shares. The “SEC yield” is a return figure often quoted by bond and other fixed-income mutual funds. This quotation is based on the most recent 30-day (or one-month) period covered by the fund’s filings with the SEC. The yield figure reflects the dividends and interest earned during the period after deduction of the fund’s expenses for the period. These yields are as of December 31, 2004 and are subject to change.

 

S A L O M O N   B R O T H E R S   M U N I C I P A L   P A R T N E R S   F U N D   I I   I N C .

Information About Your Fund

As you may be aware several issues in the mutual fund industry have recently come under the scrutiny of federal and state regulators. The fund’s Adviser and some of its affiliates have received requests for information from various government regulators regarding market timing, late trading, fees, and other mutual fund issues in connection with various investigations. The fund has been informed that the Adviser and its affiliates are responding to those information requests, but are not in a position to predict the outcome of these requests and investigations.

As previously disclosed by Citigroup, the Staff of the Securities and Exchange Commission (“SEC”) has notified Citigroup Asset Management (“CAM”) and Citicorp Trust Bank (“CTB”), an affiliate of CAM, that the Staff is considering recommending a civil injunctive action and/or an administrative proceeding against CAM, CTB, the former CEO of CAM, two former employees and a current employee of CAM, relating to the creation, operation and fees of an internal transfer agent unit that serves various CAM-managed funds. Citigroup is cooperating with the SEC and will seek to resolve this matter in discussion with the SEC Staff. Although there can be no assurance, Citigroup does not believe that this matter will have a material adverse effect on the fund. For further information, please see the “Additional Information” note in the Notes to the Financial Statements included in this report.

Looking for Additional Information?

The fund is traded under the symbol “MPT” and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available on-line under symbol XMPTX. Barron’s and The Wall Street Journal’s Monday editions carry closed-end fund tables that will provide additional information. In addition, the fund issues a quarterly press release that can be found on most major financial websites as well as www.sbam.com.

In a continuing effort to provide information concerning the fund, shareholders may call 1-888-777-0102 or 1-800-SALOMON (toll free), Monday through Friday from 8:00 a.m. to 6:00 p.m. Eastern Time, for the fund’s current NAV, market price, and other information.

As always, thank you for your confidence in our stewardship of your assets. We look forward to helping you continue to meet your financial goals.

Sincerely,


R. Jay Gerken, CFA
Chairman and Chief Executive Officer
February 3, 2005

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The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

RISKS: Investors could lose money by investing in the fund. As interest rates rise, bond prices fall, reducing the value of the fund’s share price. Certain investors may be subject to the Federal Alternative Minimum Tax (AMT) and state and local taxes will apply. Capital gains, if any, are fully taxable.

All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

i      Gross domestic product is the market value of goods and services produced by labor and property in a given country.
 
ii      Source: U.S. Federal Reserve Board. The Fed is responsible for the formulation of a policy designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments.
 
iii      The federal funds rate is the interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight loans.
 
iv      NAV is calculated by subtracting total liabilities and outstanding preferred stock from the closing value of all securities held by the fund (plus all other assets) and dividing the result (total net assets) by the total number of the common shares outstanding. The NAV fluctuates with changes in the market prices of securities in which the fund has invested. However, the price at which an investor may buy or sell shares of the fund is at the fund’s market price as determined by supply of and demand for the fund’s shares.
 
v      The Lehman Brothers Municipal Bond Index is a broad measure of the municipal bond market with maturities of at least one year.
 
vi      Lipper, Inc. is a major independent mutual-fund tracking organization. Returns are based on the 6-month period ended December 31, 2004, including the reinvestment of dividends and capital gains, if any, calculated among the 66 funds in the fund’s Lipper category, and excluding sales charges.
 

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Fund at a Glance (unaudited)

 

Investment Breakdown

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Schedule of Investments (unaudited)
December 31, 2004

 

Face           
Amount  Ratings(a)                                                                       Security  Value 
Long-Term Investments — 99.9%   
California — 3.3%         
        California State GO:   
 
$1,500,000 
  A      5.125% due 6/1/24 
$
1,559,310 
2,400,000 
  AAA      FSA-Insured, 6.000% due 2/1/16  2,866,680 
            4,425,990 
Connecticut — 2.4%         
3,000,000 
  AAA    Connecticut State Special Tax Obligation Revenue, Transportation Infrastructure,   
          Series A, AMBAC-Insured, 5.000% due 7/1/23  3,199,470 
District of Columbia — 1.6%   
2,000,000 
  AAA    District of Columbia Revenue, (American University), AMBAC-Insured,   
          5.625% due 10/1/26  2,107,200 
Florida — 0.9%         
1,000,000 
  AAA    St. Johns County, FL Water and Sewer Revenue, MBIA-Insured,   
          5.500% due 6/1/11  1,137,530 
Georgia — 1.7%         
20,000 
  AAA    Fulton County, GA Housing Authority, Single-Family Mortgage, Series A,   
          GNMA-Collateralized, 6.600% due 3/1/28  20,263 
2,000,000 
  AAA    Georgia State, GO, Series C, 5.500% due 7/1/15  2,303,460 
            2,323,723 
Illinois — 13.3%         
        Chicago, IL Board of Education GO, (Chicago School Reform),   
          AMBAC-Insured:   
100,000 
  AAA         5.750% due 12/1/27  109,604 
900,000 
  AAA         5.750% due 12/1/27 Pre-Refunded — Escrowed with state   
               & local government securities to 12/1/07 (Call @ 102),  1,003,383 
500,000 
  AAA    Chicago, IL GO, Series A, FSA-Insured, 5.250% due 1/1/16  554,825 
1,750,000 
  AAA    Chicago, IL Midway Airport Revenue, Series B, MBIA-Insured,   
        5.625% due 1/1/29 (b)  1,831,602 
1,000,000 
  AAA    Chicago, IL Public Building Commission, Building Revenue,   
          (Chicago School Reform), Series B, FGIC-Insured, 5.250% due 12/1/18  1,135,820 
250,000 
  AAA    Cook County, IL Refunding GO, Series A, MBIA-Insured,   
        5.625% due 11/15/16  273,112 
2,000,000 
  Aaa*    Illinois Development Finance Authority, Revolving Fund Revenue,   
        5.250% due 9/1/12  2,240,040 
1,000,000 
  AA+    Illinois Educational Facilities Authority Revenue, (Northwestern University),   
        5.500% due 12/1/13  1,121,510 
      Illinois Health Facilities Authority Revenue:   
1,850,000 
  AAA      Refunding, (SSM Health Care), MBIA-Insured, 6.550% due 6/1/13  2,226,493 
2,000,000 
  AAA      Servantcor Project, Series A, Escrowed to maturity with U.S.   
           government securities, FSA-Insured, 6.000% due 8/15/12  2,337,760 
605,000 
  A      South Suburban Hospital Project, Escrowed to maturity with U.S.   
           government securities, 7.000% due 2/15/18  753,134 

See Notes to Financial Statements.

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Schedule of Investments (unaudited) (continued)
December 31, 2004

 

Face           
Amount  Ratings(a)                                                                       Security   
Value 
Illinois — 13.3% (continued)   
 
$1,000,000 
  AAA    Illinois State GO, First Series, MBIA-Insured, 5.625% due 6/1/25 Pre-Refunded 
        — Escrowed with U.S. government securities to 6/1/10 (Call @ 100) 
$ 
1,134,370 
2,645,000 
  AAA    Illinois State, Sales Tax Revenue, 5.500% due 6/15/16   
2,949,863 
             
17,671,516 
Indiana — 1.9%         
2,000,000 
  BBB+    Indiana State Development Finance Authority, Environmental Revenue,   
        (USX Corp. Project), 5.250% due 12/1/22   
2,209,640 
250,000 
  AAA    Indiana State Revolving Fund Revenue, Series B, 5.000% due 8/1/23   
259,788 
             
2,469,428 
Louisiana — 3.8%         
5,000,000 
  BBB+    Louisiana Public Facilities Authority, Hospital Revenue,   
          (Touro Infirmary Project), Series A, 6.125% due 8/15/23   
5,040,550 
Maryland — 4.5%         
        Maryland State Health & Higher Educational Facilities   
          Authority Revenue:   
1,500,000 
  Baa1*         Carroll County General Hospital, 6.000% due 7/1/37   
1,585,470 
1,500,000 
  A         Suburban Hospital, Series A, 5.500% due 7/1/16   
1,647,150 
500,000 
  A         University of Maryland Medical Systems, 6.000% due 7/1/32   
535,795 
2,000,000 
  Aaa*    Northeast Maryland Waste Disposal Authority, Solid Waste   
          Revenue Refunding, AMBAC-Insured, 5.500% due 4/1/16 (b)   
2,188,320 
             
5,956,735 
Massachusetts — 5.1%     
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)   
1,057,620 
2,500,000 
  Aaa *    Massachusetts State Special Obligation Revenue, (Federal Highway Grant Antic), 
        Series A, FSA-Insured, 5.000% due 12/15/10   
2,754,175 
      Massachusetts State Water Pollution Abatement Trust, (MWRA Program), Series A: 
2,125,000 
  AAA      5.750% due 8/1/29   
2,355,329 
525,000 
  AAA      5.750% due 8/1/29 Pre-Refunded — Escrowed with state & local   
             government securities to 8/1/09 (Call @ 101)   
599,130 
             
6,766,254 
Michigan — 2.0%         
1,000,000 
  AAA    Detroit, MI City School District, GO, (School Building & Site Improvement),   
        Series A, FGIC-Insured, 5.50% due 5/1/17   
1,125,110 
1,500,000 
  AA-    Michigan State Hospital Finance Authority Revenue,   
          (Trinity Health), Series C, 5.375% due 12/1/30   
1,551,195 
             
2,676,305 

 

See Notes to Financial Statements.

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Schedule of Investments (unaudited) (continued)
December 31, 2004

 

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 
$
2,667,175 
1,000,000    Aaa*           Water Pollution Refunding Revenue, State Revolving Funds, Program A,   
                  5.000% due 7/1/20 1,114,690 
            3,781,865 
Nevada — 3.2%         
        Clark County, NV:   
3,000,000    AAA      IDR Refunding Revenue, (Nevada Power Co. Project), Series C,   
             AMBAC-Insured, 7.200% due 10/1/22  3,120,150 
1,000,000    AAA      Passenger Facility Revenue, (McCarran International Airport), Series A,   
             MBIA-Insured, 5.750% due 7/1/23 (b)  1,032,490 
60,000    AAA    Nevada Housing Division Revenue, Single-Family Program, Series C,   
          AMBAC-Insured, 6.350% due 10/1/12 (b)  61,415 
            4,214,055 
New Jersey — 7.0%         
        New Jersey EDA:   
3,750,000    A+      School Facilities Construction Revenue, Series G, 5.000% due 9/1/11  4,136,325 
2,500,000    AAA      Motor Vehicle Surcharges Revenue, Series A, MBIA-Insured,   
             5.250% due 7/1/16  2,788,925 
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)  1,023,680 
1,265,000    A+    New Jersey State Educational Facilities Authority Revenue, Higher Education   
          Capital Improvement Fund, Series A, 5.250% due 9/1/12  1,412,309 
            9,361,239 
New Mexico — 4.6%         
5,400,000    AAA    New Mexico Finance Authority Revenue, (Public Project Revolving Fund),   
          Series C, AMBAC-Insured, 5.250% due 6/1/14  6,097,842 
New York — 8.9%         
        New York City, NY GO:   
          Series A:   
180,000    A         6.000% due 5/15/30  201,519 
820,000    A     
   6.000% due 5/15/30 Pre-Refunded — Escrowed with U.S. government 
 
                 securities to 5/15/10 (Call @ 101)  955,546 
1,500,000    A      Series G, 5.000% due 12/1/33  1,519,845 
1,600,000    AA+    New York City, NY Municipal Water Finance Authority, Water & Sewer System   
          Revenue, Series A, 5.500% due 6/15/23  1,626,048 
4,500,000    AA+    New York City, NY Transitional Finance Authority Revenue, Series A,   
          5.500% due 11/15/17  5,030,055 
1,000,000    AAA    New York State Dormitory Authority Revenue, City University System   
           
Consolidated 2nd General Resolution, Series A, AMBAC-Insured,
   
             6.125% due 7/1/12  1,152,380 


See Notes to Financial Statements.

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Schedule of Investments (unaudited) (continued)
December 31, 2004

 

Face           
Amount  Ratings(a)                                                                       Security  Value 
New York — 8.9% (continued)   
 
$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) 
$
1,367,249 
            11,852,642 
Ohio — 4.6% 
           
2,500,000 
  AA-    Franklin County, OH Hospital Revenue, (Holy Cross Health Systems Corp.),   
        5.875% due 6/1/21  2,639,275 
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)  3,408,273 
            6,047,548 
Pennsylvania — 1.1%         
1,090,000 
  AAA    Philadelphia, PA GO, Series A, XLCA-Insured, 5.250% due 2/15/14  1,204,167 
250,000 
  AAA    Philadelphia, PA School District, GO, Series A, FSA-Insured, 5.500% due 2/1/31  285,718 
            1,489,885 
Puerto Rico — 7.5%         
1,125,000 
  AAA    Puerto Rico Commonwealth Revenue, FGIC-Insured,   
        5.500% due 7/1/13  1,299,926 
      Puerto Rico Commonwealth Highway & Transportation Authority,   
        Highway Revenue:   
2,100,000 
  AAA         Series J, MBIA-Insured, 5.000% due 7/1/11  2,338,497 
1,600,000 
  AAA         Series X, FSA-Insured, 5.500% due 7/1/15  1,863,856 
      Puerto Rico Electric Power Authority Revenue:   
2,750,000 
  AAA      Series LL, MBIA-Insured, 5.500% due 7/1/17  3,214,750 
1,155,000 
  AAA      Series OO, FGIC-Insured, 5.000% due 7/1/14  1,294,986 
            10,012,015 
Tennessee — 3.1%         
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)  1,994,733 
1,200,000 
  AAA    Memphis-Shelby County, TN Airport Authority Revenue, Series D,   
        AMBAC-Insured, 6.000% due 3/1/24 (b)  1,322,796 
755,000 
  AA    Tennessee Housing Development Agency Revenue, (Homeownership Program),   
        Series 2C, 6.350% due 1/1/31 (b)  783,373 
            4,100,902 
Texas — 11.0%         
        Austin, TX Airport System Revenue, Series A, MBIA-Insured:   
3,475,000 
  AAA      6.200% due 11/15/15(b)  3,650,036 
330,000 
  AAA      6.200% due 11/15/15 Pre-Refunded — Escrowed with state   
           & local government securities to 11/15/07 (Call @ 100)(b)  362,277 
4,265,000 
  AAA    Lower Colorado River Authority, TX Transmission Contract Revenue,   
        AMBAC-Insured, 5.250% due 5/15/14  4,757,522 
1,380,000 
  AAA    North Harris Montgomery Community College District, TX GO,   
          FGIC-Insured, 5.375% due 2/15/16  1,527,149 
See Notes to Financial Statements.

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Schedule of Investments (unaudited) (continued)
December 31, 2004

 

Face 
       
Amount 
Ratings(a)
    
Security 
Value 
Texas — 11.0% (continued)   
 
$1,000,000 
 
AAA
    North Texas Municipal Water District, Water System Revenue,   
 
       MBIA-Insured, 5.000% due 9/1/15 
$
1,101,120 
1,485,000 
 
AAA
    South San Antonio Texas Independent School District GO, PSF-Insured,   
 
   
   5.000% due 8/15/15 
1,621,531 
1,500,000 
 
AAA
    Texas State Turnpike Authority Revenue, First Tier, Series A,   
 
       AMBAC-Insured, 5.500% due 8/15/39  1,618,605 
   
      14,638,240 
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)  382,014 
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 
3,276,839 
Washington — 2.8%        
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) 
1,978,964 
400,000 
 
AAA
    Seattle, WA GO, Series B, FSA-Insured, 5.750% due 12/1/28  445,608 
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  1,291,344 
   
      3,715,916 
   
   
       Total Long-Term Investments (Cost — $126,687,301) 
132,745,703 
 
Short-Term Investments — 0.1%   
New York — 0.1%
       
120,000 
 
A-1+
    New York City, NY Municipal Water Finance Authority, Water & Sewer System   
   
       Revenue, Series F, VRDD, 2.180% due 6/15/35 (Cost — $120,000)  120,000 
 
   
           Total Investments — 100.0% (Cost — $126,807,301**) 
$
132,865,703 
 

(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 11 and 12 for definitions of ratings and abbreviations. 

 

See Notes to Financial Statements.

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Schedule of Investments (unaudited) (continued)
December 31, 2004

 

Summary of Investments by Industry and Pre-Refunded*** 
   
   General Revenue    24.3 % 
   Healthcare    11.5  
   Industrial Development    10.9  
   Education    10.8  
   Transportation    10.3  
   General Obligation    9.2  
   Pre-Refunded    6.3  
   Power    5.9  
   Water    4.2  
   Tax Revenue    2.5  
   Escrowed to Maturity    2.3  
   Housing    1.8  
 
    100.0 % 
 


*** As a percentage of total investments. Please note that Fund holdings are as of December 31, 2004 and are subject to change.

 

 

 

 

See Notes to Financial Statements.

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Long-Term Security Ratings (unaudited)

Standard & Poor’s Ratings Service (“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. 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 some- 
 
  what 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 
—
 
Bonds rated “BB” have less near-term vulnerability to default than other speculative issues. How- 
 
  ever, they face 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 Investors Service (“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 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 pro- 
 
 
tective 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 pro- 
 
 
tected 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 Moody’s or Standard & Poor’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 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. 
 
   
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 Governors    HFA    – Housing Finance Authority 
AIG    – American International Guaranty    IDA    – Industrial Development Authority 
AMBAC    – Ambac Assurance Corporation    IDB    – Industrial Development Board 
BAN    – Bond Anticipation Notes    IDR    – Industrial Development Revenue 
BIG    – Bond Investors Guaranty    INFLOS    – Inverse Floaters 
CGIC    – Capital Guaranty Insurance Company    ISD    – Independent School District 
CHFCLI   – California Health Facility    LEVRRS    – Leveraged Reverse Rate Securities 
   
         Construction Loan Insurance 
  LOC    – Letter of Credit 
CONNIE    MBIA    – Municipal Bond Investors Assurance 
   LEE 
  – College Construction Loan Association                 Corporation 
COP    – Certificate of Participation    MVRICS    – Municipal Variable Rate Inverse 
EDA    – Economic Development Authority                 Coupon Security 
EDR    – Economic Development Revenue    PCR    – Pollution Control Revenue 
FGIC    – Financial Guaranty Insurance Company    PSFG    – Permanent School Fund Guaranty 
FHA    – Federal Housing Administration    RAN    – Revenue Anticipation Notes 
FHLMC    – Federal Home Loan Mortgage    RIBS    – Residual Interest Bonds 
             Corporation    RITES    – Residual Interest Tax-Exempt 
FLAIRS    – Floating Adjustable Interest Rate    SYCC    – Structured Yield Curve Certificate 
             Securities    TAN    – Tax Anticipation Notes 
FNMA    – Federal National Mortgage Association    TECP    – Tax Exempt Commercial Paper 
FRTC    – Floating Rate Trust Certificates    TOB    – Tender Option Bonds 
FSA    – Financial Security Assurance    TRAN    – Tax and Revenue Anticipation Notes 
GIC    – Guaranteed Investment Contract    VA    – Veterans Administration 
GNMA    – Government National Mortgage    VRDD    – Variable Rate Daily Demand 
             Association    VRWE    – Variable Rate Wednesday Demand 
GO    – General Obligation Bonds    XLCA    – XL Capital Assurance 
HDC    – Housing Development Corporation         

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

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Statement of Assets and Liabilities (unaudited)
December 31, 2004

ASSETS:     
   Investments, at value (Cost — $126,807,301)  $  132,865,703  
   Cash    82,077  
   Receivable for securities sold    150,000  
   Interest receivable    1,885,217  
   Total Assets    134,982,997  
 
LIABILITIES:     
   Management fee payable    62,783  
   Dividends payable to Auction Rate Preferred Stockholders    9,864  
   Accrued expenses    99,337  
   Total Liabilities    171,984  
   Series M Auction Rate Preferred Stock     
       (900 shares authorized and issued at $50,000 per share) (Note 4) 
  45,000,000  
Total Net Assets  $  89,811,013  
 
NET ASSETS:     
   Par value of common stock ($0.001 par value, 100,000,000 shares authorized;     
       6,007,094 shares outstanding)  $  6,007  
   Capital paid in excess of par value    83,244,145  
   Undistributed net investment income    1,404,731  
   Accumulated net realized loss from investment transactions    (902,272 ) 
   Net unrealized appreciation of investments    6,058,402  
Total Net Assets  $  89,811,013  
Net Asset Value, per share ($89,811,013 ÷ 6,007,094 shares outstanding) 
  $14.95  

See Notes to Financial Statements.

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Statement of Operations (unaudited)
For the Six Months Ended December 31, 2004
INCOME:   
   Interest 
$
3,189,316  
 
EXPENSES:   
   Management fee (Note 2)  372,451  
   Auction agent fees (Note 4)  60,740  
   Audit and tax fees  37,904  
   Shareholder communications  31,464  
   Legal  28,547  
   Directors’ fees  25,020  
   Custody  12,144  
   Stock exchange listing fees  10,691  
   Transfer agency services  11,108  
   Insurance  2,102  
   Other  8,486  
   Total Expenses  600,657  
Net Investment Income  2,588,659  
 
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTES 1 AND 3): 
 
   Net Realized Gain from Investment Transactions  132,928  
   Net Change in Unrealized Appreciation/Depreciation of Investments  2,838,539  
Net Gain on Investments  2,971,467  
Distributions Paid to Auction Rate Preferred Stockholders From   
   Net Investment Income  (335,572 ) 
Increase in Net Assets from Operations 
$
5,224,554  

See Notes to Financial Statements.

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Statements of Changes in Net Assets
For the Six Months Ended December 31, 2004 (unaudited)
and the Year Ended June 30, 2004
 
December 31
June 30
OPERATIONS:     
   Net investment income 
$
2,588,659  
$
5,536,436  
   Net realized gain  132,928   2,165,244  
   Net change in unrealized appreciation/depreciation  2,838,539   (7,379,443 ) 
   Distributions paid to Auction Rate Preferred Stockholders     
       from net investment income  (335,572 )  (471,367 ) 
 
 
   Increase (Decrease) in Net Assets From Operations  5,224,554   (149,130 ) 
   
 
 
DISTRIBUTIONS PAID TO COMMON STOCK SHAREHOLDERS FROM: 
   
   Net investment income  (2,450,894 )  (4,901,788 ) 
 
 
   Decrease in Net Assets From Distributions Paid to     
       Common Stock Shareholders  (2,450,894 )  (4,901,788 ) 
 
 
Increase (Decrease) in Net Assets  2,773,660   (5,050,918 ) 
 
NET ASSETS:     
   Beginning of period  87,037,353   92,088,271  
 
 
   End of period* 
$
89,811,013  
$
87,037,353  
 
 
* Includes undistributed net investment income of: 
$
1,404,731  
$
1,602,538  
 
 

 

See Notes to Financial Statements.

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Financial Highlights

Data for a share of common stock outstanding throughout each year ended June 30, unless otherwise noted:

   
2004 (1)   
2004    
2003    
2002    
2001    
2000  
Net Asset Value, Beginning of Period   
$
14.49    
$
15.33    
$
14.34    
$
13.94    
$
13.09    
$
13.71  
   
   
   
   
   
 
Income (Loss) From Operations:   
   
   
   
   
   
 
   Net investment income   
0.43    
0.92    
0.94    
1.00    
1.04    
1.04  
   Net realized and unrealized gain (loss)   
0.50    
(0.86 )   
0.95    
0.29    
0.86    
(0.60 ) 
   Distributions paid to Auction Rate Preferred 
 
   
   
   
   
   
 
       Stockholders from net investment income 
 
(0.06 )   
(0.08 )   
(0.09 )   
(0.14 )   
(0.30 )   
(0.31 ) 
   
   
   
   
   
 
Total Income (Loss) From Operations   
0.87    
(0.02 )   
1.80    
1.15    
1.60    
0.13  
   
   
   
   
   
 
Distributions Paid to Common Stock   
   
   
   
   
   
 
Shareholders From:   
   
   
   
   
   
 
   Net investment income   
(0.41 )   
(0.82 )   
(0.81 )   
(0.75 )   
(0.75 )   
(0.75 ) 
   
   
   
   
   
 
Total Distributions Paid to Common   
   
   
   
   
   
 
   Stock Shareholders   
(0.41 )   
(0.82 )   
(0.81 )   
(0.75 )   
(0.75 )   
(0.75 ) 
   
   
   
   
   
 
Net Asset Value, End of Period   
$
14.95    
$
14.49    
$
15.33    
$
14.34    
$
13.94    
$
13.09  
   
   
   
   
   
 
Per Share Market Value, End of Period   
$
13.01    
$
12.43    
$
13.92    
$
13.00    
$
12.52
    $
11.5625
  
   
   
   
   
   
 
Total Return, Based on Market Price(2)   
7.94 %‡   
(5.11 )%   
13.78 %   
10.11 %   
15.14 %   
0.26 % 
Ratios to Average Net Assets of   
   
   
   
   
   
 
Common Shareholders(3):   
   
   
   
   
   
 
   Operating expenses   
1.33 %†   
1.31 %   
1.39 %   
1.35 %   
1.38 %   
1.39 % 
   Net investment income   
5.75 %†   
6.18 %   
6.30 %   
7.02 %   
7.63 %   
7.95 % 
Net Assets of Common Shareholders,   
   
   
   
   
   
 
   End of Period (000s)   
$
89,811    
$
87,037    
$
92,088    
$
86,122    
$
83,747    
$
78,617  
Portfolio Turnover Rate   
31 %   
48 %   
67 %   
52 %   
15 %   
40 % 
Auction Rate Preferred Stock:   
   
   
   
   
   
 
   Total Amount Outstanding (000s)   
$
45,000    
$
45,000    
$
45,000    
$
45,000    
$
45,000    
$
45,000  
   Asset Coverage Per Share   
149,790    
146,708    
152,320    
145,691    
143,052    
137,352  
   Involuntary Liquidating Preference Per Share 
 
50,000    
50,000    
50,000    
50,000    
50,000    
50,000  
   Average Market Value Per Share   
50,000    
50,000    
50,000    
50,000    
50,000    
50,000  

(1 )  For the six months ended December 31, 2004 (unaudited). 
(2 )  For purposes of this calculation, distributions on common shares are assumed to be reinvested at prices obtained under the 
  Fund’s dividend reinvestment plan and the broker commission paid to purchase or sell a share is excluded. 
(3 )  Ratios calculated on the basis of income and expenses relative to the average net assets of common shares and excludes the effect 
  of dividend payments to preferred stockholders. 
‡   Total return is not annualized, as it may not be representative of the total return for the year. 
†   Annualized. 

 

See Notes to Financial Statements.

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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 Board of Directors authorized 100 million shares of $0.001 par value common stock. The Fund’s primary investment objective is to seek a high level of current income which is exempt from regular federal income taxes, consistent with the preservation of capital. As a secondary investment objective, the Fund intends to enhance portfolio value by purchasing tax exempt securities that, in the opinion of Salomon Brothers Asset Management Inc (“SBAM”), an indirect wholly-owned subsidary of Citigroup Inc. (“Citigroup”), may appreciate in value relative to other similar obligations in the marketplace.

The following are significant accounting policies consistently followed by the Fund. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). 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. Actual amounts could differ from these estimates.

(a) SECURITY 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. Short-term investments having a maturity of 60 days or less are valued at amortized cost, which approximates value. 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.

(b) INVESTMENT TRANSACTIONS AND INVESTMENT INCOME. Investment transactions are recorded on the trade date. Realized gains and losses on sales of securities are calculated on the identified cost basis. Interest income is accrued on a daily basis. The Fund amortizes premiums and accretes discounts on securities purchased using the effective interest method.

(c) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. The Fund declares and pays dividends to common shareholders monthly from net investment income. Net realized gains, if any, in excess of loss carryovers are expected to be distributed, at least, annually. Dividends and distributions to common shareholders are recorded on the ex-dividend date. Dividends and distributions to preferred shareholders are accrued and paid on a weekly basis and are determined as described in Note 4. The amounts of dividends and distributions from net investment income and net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP.

(d) FEDERAL AND OTHER TAXES. It is the Fund’s policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute substantially all of its taxable income and net realized gains on investments, if any, to shareholders each year. Therefore, no federal income tax provision is required.

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Notes to Financial Statements (unaudited) (continued)

(e) RECLASSIFICATION. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share.

Note 2. Management and Advisory Fees and Other Transactions with Affiliates

SBAM is the Fund’s investment manager and administrator and as such provides management, advisory and administrative services for the Fund. SBAM has delegated certain administrative services to Smith Barney Fund Management LLC (“SBFM”), another indirect wholly-owned subsidiary of Citigroup, pursuant to a Sub-Administration Agreement between SBAM and SBFM. SBFM is compensated by SBAM, and not the Fund, for its services.

The Fund pays SBAM a monthly fee at an annual rate of 0.55% of the Fund’s average weekly net assets for its services. For purposes of calculating the fees, the liquidation value of any outstanding preferred stock of the Fund is not deducted in determining the Fund’s average weekly net assets. This fee is calculated daily and paid monthly.

Certain officers and/or directors of the Fund are also officers and/or directors of SBAM and do not receive compensation from the Fund.

Note 3. Investments

For the six months ended December 31, 2004, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:

Purchases    $40,978,110 
Sales    $40,947,066 

At December 31, 2004, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation    $6,137,279  
Gross unrealized depreciation    (78,877 ) 
Net unrealized appreciation    $6,058,402  

Note 4. Preferred Stock

On October 1, 1993, the Fund closed its public offering of 900 shares of $0.001 par value Auction Rate Preferred Stock (“Preferred Stock”) at an offering price of $50,000 per share. The Preferred Stock has a liquidation preference of $50,000 per share plus an amount equal to accumulated but unpaid dividends (whether or not earned or declared) and, subject to certain restrictions, are redeemable in whole or in part.

Dividend rates generally reset every 7 days and are determined by auction procedures. The dividend rates on the Preferred Stock during the six months ended December 31, 2004 ranged from 0.850% to 2.000% . The weighted average dividend rate for the period ended December 31, 2004 was 1.483% .

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Notes to Financial Statements (unaudited) (continued)

The Fund is subject to certain restrictions relating to the Preferred Stock. The Fund may not declare dividends or make other distributions on shares of common stock or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Stock would be less than 200%. The Preferred Stock is also subject to mandatory redemption at $50,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of the Fund as set forth in its Articles Supplementary are not satisfied.

The Preferred Shares, which are entitled to one vote per share, generally vote with the common shares but vote separately as a class to elect two directors and on certain matters affecting the rights of the Preferred Shares.

The issuance of preferred stock poses certain risks to holders of common stock, including, among others the possibility of greater market price volatility and in certain market conditions, the yield to holders of common stock may be adversely affected.

The Fund is required to maintain certain asset coverages with respect to the Preferred Stock. If the Fund fails to maintain these coverages and does not cure any such failure within the required time period, the Fund is required to redeem a requisite number of the Preferred Stock in order to meet the applicable requirement. Additionally, failure to meet the foregoing asset requirements would restrict the Fund’s ability to pay dividends.

Note 5. 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.

Note 6. Events Subsequent to December 31, 2004

Common Stock Dividends. On October 22, 2004, the Board of Directors of the Fund declared two common share dividends from net investment income, each in the amount of $0.0680 per share, payable on January 28, and February 25, 2005 to shareholders of record on January 19, and February 15, 2005, respectively.

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Notes to Financial Statements (unaudited) (continued)

Note 7. Additional Information

In connection with an investigation previously disclosed by Citigroup, the Staff of the Securities and Exchange Commission (“SEC”) has notified Citigroup Asset Management (“CAM”), the Citigroup business unit that includes the funds’ investment manager and other investment advisory companies; Citicorp Trust Bank (“CTB”), an affiliate of CAM; Thomas W. Jones, the former CEO of CAM; and three other individuals, one of whom is an employee and two of whom are former employees of CAM, that the SEC Staff is considering recommending a civil injunctive action and/or an administrative proceeding against each of them relating to the creation and operation of an internal transfer agent unit to serve various CAM-managed funds.

In 1999, CTB entered the transfer agent business. CTB hired an unaffiliated subcontractor to perform some of the transfer agent services. The subcontractor, in exchange, had signed a separate agreement with CAM in 1998 that guaranteed investment management revenue to CAM and investment banking revenue to a CAM affiliate. The subcontractor’s business was later taken over by PFPC Inc., and at that time the revenue guarantee was eliminated and a one-time payment was made by the subcontractor to a CAM affiliate.

CAM did not disclose the revenue guarantee when the boards of various CAM-managed funds hired CTB as transfer agent. Nor did CAM disclose to the boards of the various CAM-managed funds the one-time payment received by the CAM affiliate when it was made. As previously disclosed, CAM has already paid the applicable funds, primarily through voluntary fee waivers, a total of approximately $17 million (plus interest), which is the amount of the revenue received by Citigroup relating to the revenue guarantee.

In addition, the SEC Staff has indicated that it is considering recommending action based on the adequacy of the disclosures made to the fund boards that approved the transfer agency arrangement, CAM’s initiation and operation of, and compensation for, the transfer agent business and CAM’s retention of, and agreements with, the subcontractor.

Citigroup is cooperating fully in the SEC’s investigation and is seeking to resolve the matter in discussions with the SEC Staff. On January 20, 2005, Citigroup stated that it had established an aggregate reserve of $196 million ($25 million in the third quarter of 2004 and $171 million in the fourth quarter of 2004) related to its discussions with the SEC Staff. Settlement negotiations are ongoing and any settlement of this matter with the SEC will require approval by the Citigroup Board and acceptance by the Commission.

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S A L O M O N   B R O T H E R S   M U N I C I P A L   P A R T N E R S   F U N D   I I   I N C .

Notes to Financial Statements (unaudited) (continued)

Unless and until any settlement is consummated, there can be no assurance that any amount reserved by Citigroup will be distributed. Nor is there at this time any certainty as to how the proceeds of any settlement would be distributed, to whom any such distribution would be made, the methodology by which such distribution would be allocated, and when such distribution would be made.

Although there can be no assurance, Citigroup does not believe that this matter will have a material adverse effect on the funds. The Fund did not implement the contractual arrangement described above and will not receive any payments.

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S A L O M O N   B R O T H E R S   M U N I C I P A L   P A R T N E R S   F U N D   I I   I N C .

Additional Information (unaudited) (continued)

Result of Annual Meeting of Shareholders

The Annual Meeting of Shareholders of Salomon Brothers Municipal Partners Fund II Inc. was held on October 8, 2004, for the purpose of considering and voting upon the election of Directors. The following table provides information concerning the matter voted upon the Meeting:

Election of Directors                 
    Common        Preferred     
    Shares Voted    Common    Shares Voted    Preferred 
Name    For Election    Shares Withheld    For Election    Shares Withheld 
Daniel Cronin    5,222,589    398,495    644    0 
Jeswald Salacuse    5,218,436    402,648    644    0 

At December 31, 2004, in addition to Dan Cronin and Jeswald Salacuse, the other Directors of the Fund were:

Carol L. Colman
Leslie H. Gelb
A. Jay Gerken
William R. Hutchinson
Riordan Roett

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S A L O M O N   B R O T H E R S   M U N I C I P A L   P A R T N E R S   F U N D   I I   I N C .

Dividend Reinvestment Plan (unaudited)

Pursuant to certain rules of the Securities and Exchange Commission, the following additional disclosure is provided.

Pursuant to the Fund’s Dividend Reinvestment Plan (“Plan”), holders of Common Stock whose shares of Common Stock are registered in their own names will be deemed to have elected to have all distributions automatically reinvested by EquiServe Trust Company, N.A. (“Plan Agent”) in Fund shares pursuant to the Plan, unless they elect to receive distributions in cash. Holders of Common Stock who elect to receive distributions in cash will receive all distributions in cash by check in dollars mailed directly to the holder by the Plan Agent as dividend-paying agent. Holders of Common Stock who do not wish to have distributions automatically reinvested should notify the Plan Agent at the address below. Distributions with respect to Common Stock registered in the name of a bank, broker-dealer or other nominee (i.e., in “street name”) will be reinvested under the Plan unless the service is not provided by the bank, broker-dealer or other nominee or the holder elects to receive dividends and distributions in cash. Investors who own shares registered in the name of a bank, broker-dealer or other nominee should consult with such nominee as to participation in the Plan through such nominee, and may be required to have their shares registered in their own names in order to participate in the Plan.

The Plan Agent serves as agent for the holders of Common Stock in administering the Plan. After the Fund declares a dividend on the Common Stock or determines to make a capital gain distribution, the Plan Agent will, as agent for the participants, receive the cash payment and use it to buy the Fund’s Common Stock in the open market, on the New York Stock Exchange or elsewhere, for the participants’ accounts. The Fund will not issue any new shares of Common Stock in connection with the Plan.

Participants have the option of making additional cash payments to the Plan Agent, monthly, in a minimum amount of $250, for investment in the Fund’s Common Stock. The Plan Agent will use all such funds received from participants to purchase shares of Common Stock in the open market on or about the first business day of each month. To avoid unnecessary cash accumulations, and also to allow ample time for receipt and processing by the Plan Agent, it is suggested that participants send in voluntary cash payments to be received by the Plan Agent approximately ten days before an applicable purchase date specified above. A participant may withdraw a voluntary cash payment by written notice, if the notice is received by the Plan Agent not less than 48 hours before such payment is to be invested.

The Plan Agent maintains all shareholder accounts in the Plan and furnishes written confirmations of all transactions in an account, including information needed by shareholders for personal and tax records. Shares of Common Stock in the account of each Plan participant will be held by the Plan Agent in the name of the participant, and each shareholder’s proxy will include those shares purchased pursuant to the Plan.

In the case of holders of Common Stock, such as banks, broker-dealers or other nominees, who hold shares for others who are beneficial owners, the Plan Agent will administer the Plan on the basis of the number of shares of Common Stock certified from time to time by the holders as representing the total amount registered in such holders’ names and held for the account of beneficial owners that have not elected to receive distributions in cash.

There is no charge to participants for reinvesting dividends or capital gains distributions or voluntary cash payments. The Plan Agent’s fees for the reinvestment of dividends and capital gains distributions

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S A L O M O N   B R O T H E R S   M U N I C I P A L   P A R T N E R S   F U N D   I I   I N C .

Dividend Reinvestment Plan (unaudited) (continued)

and voluntary cash payments will be paid by the Fund. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions and voluntary cash payments made by the participant. The receipt of dividends and distributions under the Plan will not relieve participants of any income tax which may be payable on such dividends or distributions.

Participants may terminate their accounts under the Plan by notifying the Plan Agent in writing. Such termination will be effective immediately if notice in writing is received by the Plan Agent not less than ten days prior to any dividend or distribution record date. Upon termination, the Plan Agent will send the participant a certificate for the full shares held in the account and a cash adjustment for any fractional shares or, upon written instruction from the participant, the Plan Agent will sell part or all of the participant’s shares and remit the proceeds to the participant, less a $2.50 fee plus brokerage commission for the transaction.

Experience under the Plan may indicate that changes in the Plan are desirable. Accordingly, the Fund and the Plan Agent reserve the right to terminate the Plan as applied to any voluntary cash payments made and any dividend or distribution paid subsequent to notice of the termination sent to all participants in the Plan at least 30 days before the record date for the dividend or distribution. The Plan also may be amended by the Fund or the Plan Agent upon at least 30 days’ written notice to participants in the Plan.

All correspondence concerning the Plan should be directed to the Plan Agent, P.O. Box 43010, Providence, Rhode Island 02940-3010.

This report is transmitted to the shareholders of Salomon Brothers Municipal Partners Fund II Inc. for their information. This is not a prospectus, circular or representation intended for use in the purchase of shares of the Fund or any securities mentioned in this report.

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may purchase at market prices from time to time shares of its common stock in the open market.

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange

Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Funds Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C., and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. To obtain information on Form N-Q from the Fund, shareholders can call 1-800-446-1013.

Information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 and a description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is avialable (1) without charge, upon request, by calling 1-800-446-1013, (2) on the Fund’s website at www.citigroupAM.com and (3) on the SEC’s website at www.sec.gov.

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S A L O M O N   B R O T H E R S   M U N I C I P A L   P A R T N E R S   F U N D   I I   I N C .

Directors       
Salomon Brothers Municipal Partners 
                Fund II Inc. 
C A R O L  L. C O L M A N          
                   125 Broad Street 
D A N I E L  P. C R O N I N                          10th Floor, MF-2 
               New York, New York 10004 
L E S L I E  H.  G E L B               Telephone 1-888-777-0102 
     
R.  J AY  G E R K E N , CFA    I N V E S T M E N T  M A N A G E R  A N D  A D M I N I S T R AT O R 
               Salomon Brothers Asset Management Inc 
W I L L I A M  R.  H U T C H I N S O N               399 Park Avenue 
                           New York, New York 10022 
R I O R D A N  R O E T T     
    A U C T I O N  A G E N T 
J E S WA L D  W. S A L A C U S E               Deutsche Bank 
                           60 Wall Street 
                           New York, New York 10005 
 
Officers            C U S T O D I A N 
                           State Street Bank and Trust Company 
R. J AY  G E R K E N , CFA               225 Franklin Street 
           Chairman and Chief Executive Officer 
             Boston, Massachusetts 02110 
     
P E T E R  J.  W I L B Y, CFA   
D I V I D E N D  D I S B U R S I N G  A N D  T R A N S E R  A G E N T 
           President               EquiServe Trust Company, N.A. 
                           P.O. Box 43010 
A N D R E W  B.  S H O U P               Providence, Rhode Island 02940-3010 
           Senior Vice President and     
           Chief Administrative Officer 
  I N D E P E N D E N T  R E G I S T E R E D  P U B L I C 
    A C C O U N T I N G  F I R M 
F R A N C E S  M.  G U G G I N O               PricewaterhouseCoopers LLP 
           Chief Financial Officer               300 Madison Avenue 
           and Treasurer 
             New York, New York 10017 
     
R O B E R T   E.  A M O D E O    L E G A L   C O U N S E L 
           Executive Vice President               Simpson Thacher & Bartlett LLP 
                           425 Lexington Avenue 
A N D R E W  B E A G L E Y               New York, New York 10017 
           Chief Compliance Officer     
    N E W  Y O R K  S T O C K  E X C H A N G E  S Y M B O L 
W E N D Y   S.  S E T N I C K A               MPT 
           Controller     
     
R O B E R T   I.  F R E N K E L     
           Secretary and 
   
           Chief Legal Officer     

S A L O M O N   B R O T H E R S   M U N I C I P A L   P A R T N E R S   F U N D   I I   I N C .

 

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Salomon Brothers
Municipal Partners
Fund II Inc.

 

Semi-Annual Report

D E C E M B E R  3 1 ,  2 0 0 4

 

 

 

 

 

 

 

Equiserve Trust Company, N.A.
P.O. Box 43010
Providence, Rhode Island 02940-3010

 

MPTANN 3/05
05-7848

ITEM 2. 
CODE OF ETHICS. 
Not Applicable. 
ITEM 3. 
AUDIT COMMITTEE FINANCIAL EXPERT. 
Not Applicable. 
ITEM 4. 
PRINCIPAL ACCOUNTANT FEES AND SERVICES. 
Not applicable. 
ITEM 5. 
AUDIT COMMITTEE OF LISTED REGISTRANTS. 
Not applicable. 
ITEM 6. 
[RESERVED] 
ITEM 7. 
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END 
MANAGEMENT INVESTMENT COMPANIES. 
The Board of Directors of the Fund has delegated the authority to 
develop policies and procedures relating to proxy voting to the 
Manager. The Manager is part of Citigroup Asset Management (“CAM”), 
a group of investment adviser affiliates of Citigroup, Inc. 
(“Citigroup”). Along with the other investment advisers that 
comprise CAM, the Manager has adopted a set of proxy voting policies 
and procedures (the “Policies”) to ensure that the Manager votes 
proxies relating to equity securities in the best interest of 
clients. 
In voting proxies, the Manager is guided by general fiduciary 
principles and seeks to act prudently and solely in the best 
interest of clients. The Manager attempts to consider all factors 
that could affect the value of the investment and will vote proxies 
in the manner that it believes will be consistent with efforts to 
maximize shareholder values. The Manager may utilize an external 
service provider to provide it with information and/or a
recommendation with regard to proxy votes. However, such
recommendations do not relieve the Manager of its responsibility for 
the proxy vote. 
In the case of a proxy issue for which there is a stated position in 
the Policies, CAM generally votes in accordance with such stated 
position. In the case of a proxy issue for which there is a list of 
factors set forth in the Policies that CAM considers in voting on 
such issue, CAM votes on a case-by-case basis in accordance with the 
general principles set forth above and considering such enumerated 
factors. In the case of a proxy issue for which there is no stated 
position or list of factors that CAM considers in voting on such 
issue, CAM votes on a case-by-case basis in accordance with the 
general principles set forth above. Issues for which there is a 
stated position set forth in the Policies or for which there is a 
list of factors set forth in the Policies that CAM considers in 
voting on such issues fall into a variety of categories, including 
election of directors, ratification of auditors, proxy and tender 
offer defenses, capital structure issues, executive and director 

  compensation, mergers and corporate restructurings, and social and 
  environmental issues. The stated position on an issue set forth in 
  the Policies can always be superseded, subject to the duty to act 
  solely in the best interest of the beneficial owners of accounts, by 
  the investment management professionals responsible for the account 
  whose shares are being voted. Issues applicable to a particular 
  industry may cause CAM to abandon a policy that would have otherwise 
  applied to issuers generally. As a result of the independent 
  investment advisory services provided by distinct CAM business 
  units, there may be occasions when different business units or 
  different portfolio managers within the same business unit vote 
  differently on the same issue. 
   
  In furtherance of the Manager’s goal to vote proxies in the best 
  interest of clients, the Manager follows procedures designed to 
  identify and address material conflicts that may arise between the 
  Manager’s interests and those of its clients before voting proxies 
  on behalf of such clients. To seek to identify conflicts of 
  interest, CAM periodically notifies CAM employees (including 
  employees of the Manager) in writing that they are under an 
  obligation (i) to be aware of the potential for conflicts of 
  interest with respect to voting proxies on behalf of client accounts 
  both as a result of their personal relationships and due to special 
  circumstances that may arise during the conduct of CAM’s and the 
  Manager’s business, and (ii) to bring conflicts of interest of which 
  they become aware to the attention of compliance personnel. The 
  Manager also maintains and considers a list of significant 
  relationships that could present a conflict of interest for the 
  Manager in voting proxies. The Manager is also sensitive to the 
  fact that a significant, publicized relationship between an issuer 
  and a non-CAM affiliate might appear to the public to influence the 
  manner in which the Manager decides to vote a proxy with respect to 
  such issuer. Absent special circumstances or a significant, 
  publicized non-CAM affiliate relationship that CAM or the Manager 
  for prudential reasons treats as a potential conflict of interest 
  because such relationship might appear to the public to influence 
  the manner in which the Manager decides to vote a proxy, the Manager 
  generally takes the position that non-CAM relationships between 
  Citigroup and an issuer (e.g. investment banking or banking) do not 
  present a conflict of interest for the Manager in voting proxies 
  with respect to such issuer. Such position is based on the fact 
  that the Manager is operated as an independent business unit from 
  other Citigroup business units as well as on the existence of 
  information barriers between the Manager and certain other Citigroup 
  business units. 
   
  CAM maintains a Proxy Voting Committee, of which the Manager 
  personnel are members, to review and address conflicts of interest 
  brought to its attention by compliance personnel. A proxy issue 
  that will be voted in accordance with a stated position on an issue 
  or in accordance with the recommendation of an independent third 
  party is not brought to the attention of the Proxy Voting Committee 
  for a conflict of interest review because the Manager’s position is 
  that to the extent a conflict of interest issue exists, it is 
  resolved by voting in accordance with a pre-determined policy or in 
  accordance with the recommendation of an independent third party. 
  With respect to a conflict of interest brought to its attention, the 

  Proxy Voting Committee first determines whether such conflict of 
  interest is material.  A conflict of interest is considered material 
  to the extent that it is determined that such conflict is likely to 
  influence, or appear to influence, the Manager’s decision-making in 
  voting proxies. If it is determined by the Proxy Voting Committee 
  that a conflict of interest is not material, the Manager may vote 
  proxies notwithstanding the existence of the conflict. 
 
  If it is determined by the Proxy Voting Committee that a conflict of 
  interest is material, the Proxy Voting Committee is responsible for 
  determining an appropriate method to resolve such conflict of 
  interest before the proxy affected by the conflict of interest is 
  voted. Such determination is based on the particular facts and 
  circumstances, including the importance of the proxy issue and the 
  nature of the conflict of interest. Methods of resolving a material 
  conflict of interest may include, but are not limited to, disclosing 
  the conflict to clients and obtaining their consent before voting, 
  or suggesting to clients that they engage another party to vote the 
  proxy on their behalf.   
 
ITEM 8.  [RESERVED]   
 
ITEM 9.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
   
  Not applicable. 
   
ITEM 10.  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 half-year (the registrant’s second fiscal half-year in 
    the case of an annual report) that have materially affected, 
    or are likely to materially affect the registrant’s internal 
    control over financial reporting. 
 
 
 
ITEM 11.  EXHIBITS.   
 
  (a)  Not applicable.   
 
  (b)  Attached hereto.   
 
  Exhibit 99.CERT 
Certifications pursuant to section 302 of 
     
the Sarbanes-Oxley Act of 2002 
 
  Exhibit 99.906CERT 
Certifications pursuant to Section 906 of 
     
the Sarbanes-Oxley Act of 2002 

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, there unto duly authorized. 
 
Salomon Brothers Municipal Partners Fund II Inc. 
 
 
By:     /s/ R. Jay Gerken 
     R. Jay Gerken 
     Chief Executive Officer of 
     Salomon Brothers Municipal Partners Fund II Inc. 
 
Date:    March 9, 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 of 
     Salomon Brothers Municipal Partners Fund II Inc. 
 
Date:    March 9, 2005
 
By:     /s/ Frances M. Guggino 
     Frances M. Guggino 
     Chief Financial Officer of 
     Salomon Brothers Municipal Partners Fund II Inc. 
 
Date:    March 9, 2005