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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-6506

Intermediate Muni Fund, 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.
c/o Citigroup Asset Management
300 First Stamford Place, 4th Floor
Stamford, CT 06902
(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-451-2010

Date of fiscal year end: December 31
Date of reporting period: September 30, 2005


ITEM 1. SCHEDULE OF INVESTMENTS










INTERMEDIATE MUNI FUND, INC.

FORM N-Q
SEPTEMBER 30, 2005

















INTERMEDIATE MUNI FUND, INC.

 Schedule of Investments (unaudited)

 

September 30, 2005 


FACE
AMOUNT		 RATING‡ SECURITY VALUE
MUNICIPAL BONDS — 97.3%
Alabama — 3.1%
$ 3,000,000   AAA     Alabama State Public School & College Authority, FSA-Insured, 5.125% due 11/1/15 (a)     $ 3,166,800  
  1,225,000   AAA     Baldwin County, AL, Board of Education, Capital Outlay School Warrants, AMBAC-Insured, 5.000% due 6/1/20       1,300,913  
  259,127   AAA     Birmingham, AL, Medical Clinic Board Revenue, Baptist Medical Center, 8.300% due 7/1/08 (b)       280,399  
  1,000,000   AAA     Saraland, AL, GO, MBIA-Insured, 5.250% due 1/1/15       1,077,930  
          Total Alabama       5,826,042  
Alaska — 0.9%
  1,000,000   NR     Alaska Industrial Development & Export Authority Revenue, Williams Lynxs Alaska Cargo Port LLC, 8.000% due 5/1/23 (c)       1,004,810  
  500,000   AAA     Anchorage, AK, GO, Refunding, FGIC-Insured, 6.000% due 10/1/14       583,925  
            Total Alaska       1,588,735  
Arizona — 0.5%
  Maricopa County, AZ Hospital Revenue:
  130,000   AAA     Samaritan Health Service, 7.625% due 1/1/08 (b)       135,228  
  684,000   AAA     St. Lukes Medical Center, 8.750% due 2/1/10 (b)       767,318  
  90,000   AAA     Pima County, AZ, IDA, Single-Family Housing Authority Revenue, Series A, GNMA/FNMA-Insured, FHLMC-Collateralized, 7.100% due 11/1/29 (c)(d)       91,669  
            Total Arizona       994,215  
Arkansas — 1.5%
  1,500,000   BBB     Arkansas State Development Finance Authority Hospital Revenue, Washington Regional Medical Center, Call 2/1/10 @ 100, 7.000% due 2/1/15 (e)       1,719,165  
  1,000,000   BB+     Warren County, AR, Solid Waste Disposal Revenue, Potlatch Corp. Project, 7.000% due 4/1/12 (c)(d)       1,104,420  
            Total Arkansas       2,823,585  
California — 5.3%
  1,500,000   NR     Barona, CA, Band of Mission Indians, GO, 8.250% due 1/1/20       1,572,525  
  3,000,000   AA-     California State Economic Recovery, Series A, 5.000% due
7/1/17 (a)		       3,177,540  
  410,000   NR     California Statewide COP Community Development Revenue, Refunding Hospital Triad Healthcare, 6.250% due 8/1/06 (b)       420,922  
  15,000   NR     Loma Linda, CA, Community Hospital Corp. Revenue, First Mortgage, 8.000% due 12/1/08 (b)       17,081  
  Los Angeles, CA:
  1,115,000   NR     COP, Hollywood Presbyterian Medical Center, INDLC-Insured, 9.625% due 7/1/13 (b)       1,395,512  
  1,000,000   AAA     Union School District, Series A, MBIA-Insured, 5.375% due 7/1/18       1,106,100  
  1,450,000   AAA     Morgan Hill, CA, USD, FGIC-Insured, 5.750% due 8/1/17       1,630,539  
  365,000   AAA     San Francisco, CA, Airport Improvement Corp. Lease Revenue, United Airlines, Inc., 8.000% due 7/1/13 (b)       432,839  
  120,000   AAA     San Leandro, CA, Hospital Revenue, Vesper Memorial Hospital, 11.500% due 5/1/11 (b)       150,438  
            Total California       9,903,496  
Colorado — 5.4%
  1,860,000   Aaa(f)     Broomfield, CO, COP, Open Space Park & Recreation Facilities, AMBAC-Insured, 5.500% due 12/1/20 (b)       2,017,561  
  Colorado Educational & Cultural Facilities Authority Revenue Charter School:
  1,000,000   BBB-     Bromley East Project, Series A, Call 9/15/11 @ 100, 7.000% due 9/15/20 (e)       1,187,530  
  1,155,000   AAA     Bromley School Project, XLCA-Insured, 5.125% due 9/15/20       1,244,986  


See Notes to Schedule of Investments.

1



INTERMEDIATE MUNI FUND, INC.

 Schedule of Investments (unaudited) (continued)

 

September 30, 2005 


FACE
AMOUNT		 RATING‡ SECURITY VALUE
Colorado — 5.4% (continued)
$ 1,350,000   AAA         Refunding & Improvement, University Lab School,
    XLCA-Insured, 5.250% due 6/1/24		     $ 1,451,898  
  500,000   Baa2(f)         University Lab School Project, Call 6/1/11 @100, 6.125%
    due 6/1/21 (e)		       568,710  
  710,000   BBB     Denver, CO, Health & Hospital Authority, Series A, 6.250% due 12/1/16       777,308  
  1,765,000   AAA     Pueblo, CO, Bridge Waterworks Water Revenue, Improvement
Series A, FSA-Insured, Call 11/1/10 @100, 6.000%
due 11/1/14 (a)(e)		       1,984,972  
  750,000   A     SBC Metropolitan District, CO, GO, ACA-Insured, 5.000% due 12/1/25       764,925  
            Total Colorado       9,997,890  
Connecticut — 3.2%
  2,000,000   AA     Connecticut State HEFA Revenue, Bristol Hospital, Series B, 5.500% due 7/1/21 (a)       2,188,380  
  1,855,000   A     Connecticut State Special Obligation Parking Revenue, Bradley International Airport, Series A, ACA-Insured, 6.375%
due 7/1/12 (a)(c)		       2,019,297  
  1,500,000   AAA     Connecticut State Special Tax Obligation Revenue, RITES, Series A, FSA-Insured, 7.800% due 10/1/09 (g)       1,774,440  
            Total Connecticut       5,982,117  
Florida — 4.8%
  195,000   AAA     Lee County, FL, Southwest Florida Regional Airport Revenue, MBIA-Insured, 8.625% due 10/1/09 (b)       214,681  
  3,250,000   AAA     Lee, FL, Memorial Health System, Hospital Revenue, Series A, FSA-Insured, 5.750% due 4/1/14 (a)       3,621,313  
  1,810,000   NR     Old Palm Community Development District, FL, Palm Beach Gardens, Series B, 5.375% due 5/1/14       1,822,525  
            Orange County, FL, Health Facilities Authority Revenue:  
  700,000   NR     First Mortgage Healthcare Facilities, 8.750% due 7/1/11       734,559  
  1,500,000   A+     Hospital Adventist Health Systems, 6.250% due 11/15/24       1,684,335  
  455,000   AAA     Southern Adventist Hospital, Adventist Health Systems, 8.750% due 10/1/09       502,147  
  310,000   NR     Sanford, FL, Airport Authority Industrial Development Revenue, Central Florida Terminals Inc. Project A, 7.500% due 5/1/06 (c)       309,985  
            Total Florida       8,889,545  
Georgia — 3.7%
  970,000   Aaa(f)     Athens, GA, Housing Authority Student Housing Lease Revenue, University of Georgia East Campus, AMBAC-Insured, 5.250% due 12/1/23       1,040,383  
  650,000   A-     Chatham County, GA, Hospital Authority Revenue, Hospital Memorial Health Medical Center, Series A, 6.000% due 1/1/17       708,286  
  1,000,000   AAA     Gainesville, GA, Water & Sewer Revenue, FSA-Insured, 5.375% due 11/15/20       1,091,970  
  500,000   A     Georgia Municipal Electric Authority, Power System Revenue, Series X, 6.500% due 1/1/12       556,550  
  1,000,000   AAA     Griffin, GA, Combined Public Utilities Revenue, Refunding & Improvement, AMBAC-Insured, 5.000% due 1/1/21       1,069,370  
  2,120,000   AAA     Metropolitan Atlanta Rapid Transit Georgia Sales Tax Revenue, Series E, 7.000% due 7/1/11 (a)(b)       2,445,038  
            Total Georgia       6,911,597  
Illinois — 5.0%
  535,000   NR     Bourbonnais, IL, Industrial Development Revenue, Refunding Kmart Corp. Project, 6.600% due 10/1/06 (h)       5,350  
  1,500,000   AAA     Chicago, IL, O’Hare International Airport Revenue, Refunding Bonds, Lien A-2, FSA-Insured, 5.750% due 1/1/19 (c)       1,674,795  
  1,000,000   AAA     Cicero, IL, Tax Increment, Series A, XLCA-Insured, 5.250% due 1/1/21       1,076,480  
  1,080,000   AAA     Glendale Heights, IL, Hospital Revenue, Refunding Glendale Heights Project, Series B, 7.100% due 12/1/15 (b)       1,271,506  
  1,000,000   AA     Harvey, IL, GO, Radian-Insured, 6.700% due 2/1/09       1,013,720  


See Notes to Schedule of Investments.

2



INTERMEDIATE MUNI FUND, INC.

 Schedule of Investments (unaudited) (continued)

 

September 30, 2005 


FACE
AMOUNT		 RATING‡ SECURITY VALUE
Illinois — 5.0% (continued)
            Illinois Development Finance Authority:          
$ 500,000   BBB     Chicago Charter School Foundation Project A, 5.250% due 12/1/12     $ 518,670  
  380,000   A     Debt Restructure-East St. Louis, 6.875% due 11/15/05       381,748  
            Illinois Health Facilities Authority Revenue:          
  440,000   AAA     Methodist Medical Center of Illinois Project, 9.000%
due 10/1/10 (b)		       494,850  
  265,000   AAA     Ravenswood Hospital Medical Center Project, 7.250%
due 8/1/06 (b)		       274,415  
  1,310,000   AAA     Kane County, IL, GO, FGIC-Insured, 5.500% due 1/1/14       1,455,908  
            Mount Veron, IL, Elderly Housing Corp., First Lien Revenue:          
  235,000   Ba3(f)     7.875% due 4/1/06       235,139  
  250,000   Ba3(f)     7.875% due 4/1/07       250,483  
  270,000   Ba3(f)     7.875% due 4/1/08       270,410  
  1,000,000   Aaa(f)     Will County, IL, GO, School District North 122 New Lenox, Capital Appreciation Refunding School, Series D, FSA-Insured, zero coupon bond to yield 5.188% due 11/1/24       410,760  
            Total Illinois       9,334,234  
Indiana — 0.6%
  800,000   AAA     Ball State University, Indiana University Revenue, Student Fee, Series K, FGIC-Insured, 5.750% due 7/1/20       877,960  
  285,000   AAA     Madison County, IN, Hospital Authority Facilities Revenue, Community Hospital of Anderson Project, 9.250% due 1/1/10 (b)       322,036  
            Total Indiana       1,199,996  
Iowa — 1.3%
  1,000,000   A1(f)     Iowa Finance Authority, Health Care Facilities Revenue, Genesis Medical Center, 6.250% due 7/1/20       1,080,490  
  1,035,000   AAA     Muscatinem, IA, Electric Revenue, 9.700% due 1/1/13 (b)       1,272,222  
            Total Iowa       2,352,712  
Kansas — 1.8%
  1,000,000   BBB     Burlington, KS, Environmental Improvement Revenue, Kansas City Power & Light Project, Refunding, 4.750% due 10/1/07 (d)       1,023,230  
  2,245,000   AA     Johnson County, KS, Union School District, Series A, Call 10/1/09 @ 100, 5.125% due 10/1/20 (a)(e)       2,409,985  
            Total Kansas       3,433,215  
Louisiana — 1.5%
  650,000   AAA     Calcasieu Parish, LA, Memorial Hospital Service District Hospital Revenue, Lake Charles Memorial Hospital Project, Series A, CONNIE LEE-Insured, 7.500% due 12/1/05       654,283  
  320,000   AAA     Louisiana Public Facilities Authority Hospital Revenue,
Southern Baptist Hospital Inc. Project, Aetna-Insured, 8.000%
due 5/15/12 (b)		       367,338  
  1,690,000   AAA     Monroe, LA, Sales & Use Tax Revenue, FGIC-Insured, 5.625% due 7/1/25       1,857,597  
            Total Louisiana       2,879,218  
Maryland — 1.8%
  1,000,000   AAA     Maryland State Health & Higher EFA Revenue, Refunding Mercy Medical Center, FSA-Insured, 6.500% due 7/1/13       1,145,370  
  2,000,000   AAA     Montgomery County, MD, GO, 5.250% due 10/1/14 (a)       2,187,980  
            Total Maryland       3,333,350  
Massachusetts — 7.1%
  875,000   AAA     Boston, MA, Water & Sewer Commission Revenue, 10.875% due 1/1/09 (b)       989,362  
  1,130,000   Aaa(f)     Lancaster, MA, GO, AMBAC-Insured, 5.375% due 4/15/17       1,246,379  
            Massachusetts State DFA Revenue:          
  500,000   A     Curry College, Series A, ACA-Insured, 6.000% due 3/1/20       530,310  
  370,000   AAA     VOA Concord, Series A, GNMA-Collateralized, 6.700% due 10/20/21       424,198  
            Massachusetts State HEFA Revenue:          
  1,000,000   AAA     Berkshire Health Systems, Series F, 5.000% due 10/1/19       1,054,690  


See Notes to Schedule of Investments.

3



INTERMEDIATE MUNI FUND, INC.

 Schedule of Investments (unaudited) (continued)

 

September 30, 2005 


FACE
AMOUNT		 RATING‡ SECURITY VALUE
Massachusetts — 7.1% (continued)
            Caritas Christi Obligation, Series B:          
$ 2,000,000   BBB     6.500% due 7/1/12 (a)     $ 2,202,060  
  835,000   BBB     6.750% due 7/1/16       940,978  
  1,000,000   BBB-     Milford-Whitinsville Regional Hospital, Series D, 6.500%
due 7/15/23		       1,084,000  
  1,000,000   NR     Winchester Hospital, Series E, Call 7/1/10 @ 101, 6.750%
due 7/1/30 (e)		       1,144,150  
  1,130,000   AAA     Massachusetts State Industrial Finance Agency Assisted Living Facility Revenue, Arbors at Amherst Project, GNMA-Collateralized, 5.750% due 6/20/17 (c)       1,219,055  
  1,500,000   AAA     Massachusetts State, GO, RITES, Series PA 993-R, MBIA-Insured, 8.021% due 11/1/11 (g)       1,810,050  
  500,000   A3(f)     New England Education Loan Marketing Corp. Massachusetts Student Loan Revenue, Sub-Issue H, 6.900% due 11/1/09 (c)       531,560  
            Total Massachusetts       13,176,792  
Michigan — 3.3%
  1,775,000   AAA     Carrier Creek, MI, Drain District No. 326, AMBAC-Insured, 5.000% due 6/1/24       1,875,110  
  1,000,000   AAA     Jenison, MI, Public Schools GO, Building and Site, FGIC-Insured, 5.500% due 5/1/20       1,095,580  
  1,000,000   Aaa(f)     Memphis, MI, Community Schools GO, 5.150% due 5/1/19       1,041,950  
  1,000,000   A     Michigan State Hospital Finance Authority Revenue, Oakwood Obligated Group, 5.500% due 11/1/18       1,077,190  
  1,000,000   AAA     Walled Lake, MI, Consolidated School District, MBIA-Insured, 5.000% due 5/1/22       1,060,870  
            Total Michigan       6,150,700  
Missouri — 1.1%
  1,000,000   AAA     Hazelwood, MO, School District, Missouri Direct Deposit Program, Series A, FGIC-Insured, 5.000% due 3/1/23       1,064,790  
  405,000   A-(i)     Lees Summit, MO, IDA Health Facilities Revenue, John Knox Village, 5.750% due 8/15/11       433,601  
  45,000   AAA     Missouri State Housing Development Community Mortgage Revenue, Series C, GNMA/FNMA-Collateralized, 7.450% due 9/1/27 (c)       46,222  
  345,000   AAA     Nevada, MO, Waterworks Systems Revenue, AMBAC-Insured, 10.000% due 10/1/10 (b)       403,937  
  5,000   AAA     St. Louis County, MO, Single Family Mortgage Revenue, MBIA Insured, 6.750% due 4/1/10 (d)       5,213  
            Total Missouri       1,953,763  
Nebraska — 1.5%
            NebHELP Inc. Nebraska Revenue:          
  1,600,000   AAA     Series A-5A, MBIA-Insured, 6.200% due 6/1/13 (c)       1,660,864  
  1,000,000   AAA     Series A-6, MBIA-Insured, 6.450% due 6/1/18 (c)       1,053,020  
            Total Nebraska       2,713,884  
Nevada — 0.6%
  1,005,000   A-     Henderson Nevada Health Care Facilities Revenue, Catholic Health Care West, Series A, 6.200% due 7/1/09       1,087,531  
New Hampshire — 0.5%
  865,000   A     New Hampshire HEFA Revenue, Covenant Healthcare System, 6.500% due 7/1/17       981,334  
New Jersey — 1.3%
  1,855,000   AAA     Delaware River Port Authority Pennsylvania and New Jersey, RITES, FSA-Insured, 8.030% due 1/1/10 (a)(g)       2,245,552  
  170,000   AAA     Ringwood Borough, NJ, Sewer Authority Special Obligation, 9.875% due 7/1/13 (b)       211,543  
            Total New Jersey       2,457,095  


See Notes to Schedule of Investments.

4



INTERMEDIATE MUNI FUND, INC.

 Schedule of Investments (unaudited) (continued)

 

September 30, 2005 


FACE
AMOUNT		 RATING‡ SECURITY VALUE
New Mexico — 0.8%
$ 1,100,000   AAA     Bernalillo County, NM, Gross Receipts Tax Revenue, AMBAC-Insured, 5.250% due 10/1/18     $ 1,228,766  
  335,000   A(i)     New Mexico Educational Assistance Foundation Student Loan Revenue, First Sub-Series A2, 5.950% due 11/1/07 (c)       341,911  
            Total New Mexico       1,570,677  
New York — 2.7%
  1,015,000   NR     New York City, NY, IDA, Civic Facility Revenue, Community Hospital Brooklyn, 6.875% due 11/1/10       1,048,454  
  1,760,000   AAA     New York State Dormitory Authority Revenue, Mental Health Services Facilities, 5.000% due 2/15/18 (a)       1,886,280  
  2,000,000   AA-     Tobacco Settlement Financing Corp., New York, Asset-Backed, Series C-1, 5.500% due 6/1/14 (a)       2,138,160  
            Total New York       5,072,894  
North Carolina — 1.6%
  210,000   AAA     Charlotte North Carolina Mortgage Revenue, Refunding Double Oaks Apartments, Series A, FNMA-Collateralized, 7.300% due 11/15/07       218,310  
  1,000,000   BBB     North Carolina Eastern Municipal Power Agency, Power System Revenue, Series D, 6.450% due 1/1/14       1,107,570  
  1,405,000   AAA     North Carolina Municipal Power Agency No. 1, Catawba Electricity Revenue, 10.500% due 1/1/10 (b)       1,633,045  
            Total North Carolina       2,958,925  
Ohio — 7.8%
  1,370,000   AAA     Cleveland, OH, Waterworks Revenue, Series K, Call 1/1/12 @ 100, 5.250% due 1/1/21 (e)       1,504,863  
  1,520,000   BBB     Cuyahoga County, OH, Hospital Facilities Revenue, Canton, Inc. Project, 6.750% due 1/1/10       1,616,687  
  1,855,000   Aaa(f)     Highland, OH, Local School District, School Improvement, FSA-Insured, 5.750% due 12/1/19 (a)       2,088,600  
  1,000,000   Aaa(f)     Kettering, OH, City School District, School Improvement, FSA-Insured, 5.000% due 12/1/19       1,073,600  
            Lake County, OH, Hospital Improvement Revenue:          
  255,000   AAA     Lake County Memorial Hospital Project, 8.625% due 11/1/09 (b)       281,321  
  115,000   NR     Ridgecliff Hospital Project, 8.000% due 10/1/09       125,096  
  180,000   AAA     Lima, OH, Hospital Revenue, St. Rita Hospital of Lima, 7.500% due 11/1/06 (b)       184,291  
  1,500,000   BB+     Ohio State Air Quality Development Authority Revenue, Cleveland Pollution Control, Series A, 6.000% due 12/1/13       1,581,420  
  3,010,000   AA+     Ohio State GO, Conservation Project, Series A, 5.250%
due 9/1/13 (a)		       3,254,954  
            Ohio State Water Development Authority Revenue:          
  2,315,000   AAA     9.375% due 12/1/10 (b)(j)       2,581,572  
  290,000   AAA     Safe Water, Series 3, 9.000% due 12/1/10 (b)       323,130  
            Total Ohio       14,615,534  
Oklahoma — 0.7%
  55,000   AAA     Oklahoma State Industries Authority Revenue, Hospital Oklahoma Health Care Corp., Series A, Call 5/1/07 @ 100, 9.125% due 11/1/08 (e)       58,725  
  305,000   NR     Tulsa, OK, Housing Assistance Corp. MFH Revenue, 7.250% due 10/1/07 (c)       306,556  
            Tulsa, OK, Municipal Airport Trust Revenue, Refunding American Airlines, Series B:          
  500,000   B-     5.650% due 12/1/08 (c)(d)       474,775  
  500,000   B-     6.000% due 12/1/08 (c)(d)       479,615  
            Total Oklahoma       1,319,671  


See Notes to Schedule of Investments.

5



INTERMEDIATE MUNI FUND, INC.

 Schedule of Investments (unaudited) (continued)

 

September 30, 2005 


FACE
AMOUNT		 RATING‡ SECURITY VALUE
Oregon — 1.3%
$ 935,000   BBB(i)     Klamath Falls, OR, International Community Hospital Authority Revenue, Merle West Medical Center Project, 8.000% due
9/1/08 (b)		     $ 1,013,175  
  1,355,000   NR     Wasco County, OR, Solid Waste Disposal Revenue, Waste Connections Inc. Project, 7.000% due 3/1/12 (c)       1,447,750  
            Total Oregon       2,460,925  
Pennsylvania — 5.2%
  865,000   AAA     Conneaut, PA, School District GO, AMBAC-Insured, 9.500% due 5/1/12 (b)       1,025,051  
  1,000,000   Aaa(f)     Harrisburg, PA, Parking Authority Parking Revenue, FSA-Insured, 5.500% due 5/15/20       1,094,240  
  1,365,000   AA     Northampton County, PA, IDA Revenue, Mortgage Moravian Hall Square Project, Radian-Insured, 5.500% due 7/1/19       1,470,009  
  1,000,000   AAA     Pennsylvania State IDA Revenue, Economic Development, AMBAC-Insured, 5.500% due 7/1/21       1,101,040  
  100,000   AAA     Philadelphia, PA, Hospital Authority Revenue, Thomas Jefferson University Hospital, 7.000% due 7/1/08 (b)       106,037  
  1,000,000   AAA     Philadelphia, PA, School District, Series A, FSA-Insured, Call 2/1/12 @ 100, 5.500% due 2/1/23 (e)       1,110,700  
  2,000,000   AAA     Philadelphia, PA, Water & Wastewater, Series B, FGIC-Insured, 5.250% due 11/1/14 (a)       2,191,300  
  1,350,000   AAA     Pittsburgh, PA, School District GO, FSA-Insured, 5.375% due 9/1/16       1,525,460  
            Total Pennsylvania       9,623,837  
Puerto Rico — 0.8%
  1,500,000   BBB-     Puerto Rico Housing Bank & Finance Agency, 7.500% due 12/1/06       1,562,745  
Rhode Island — 0.6%
  1,000,000   AA     Central Falls, RI, GO, Radian-Insured, 5.875% due 5/15/15       1,098,950  
South Carolina — 3.4%
  95,000   AAA     Anderson County, SC, Hospital Facilities Revenue, 7.125% due 8/1/07 (b)       99,677  
  1,445,000   AA-     Charleston, SC, Waterworks & Sewer Revenue, 5.250% due 1/1/16       1,569,819  
            Greenville County, SC, School District Installment Purchase Revenue, Building Equity Sooner for Tomorrow:          
  900,000   AA-     6.000% due 12/1/21       1,000,548  
            Call 12/1/12 @ 101:          
  2,000,000   AA-     5.875% due 12/1/19 (a)(e)       2,301,540  
  1,100,000   AA-     6.000% due 12/1/21 (e)       1,274,449  
            Total South Carolina       6,246,033  
South Dakota — 1.8%
  2,400,000   Aa2(f)     Minnehana County, SD, GO, Limited Tax Certificates, Call 12/1/10 @ 100, 5.625% due 12/1/20 (a)(e)       2,621,976  
  795,000   A     South Dakota Economic Development Finance Authority,
Economic Development Revenue, APA Optics, Series A, 6.750% due 4/1/16 (c)		       822,173  
            Total South Dakota       3,444,149  
Tennessee — 0.5%
  530,000   AAA     Jackson, TN, Water & Sewer Revenue, 7.200% due 7/1/12 (b)       597,559  
  400,000   A2(f)     McMinnville, TN, Housing Authority Revenue, Refunding First Mortgage Beersheba Heights, 6.000% due 10/1/09       416,620  
            Total Tennessee       1,014,179  
Texas — 9.3%
  1,000,000   Baa3(f)     Bexar County, TX, Housing Finance Corp. MFH Revenue, Series A, American Opportunity For Housing-Nob Hill Apartments LLC, 6.000% due 6/1/21       981,480  


See Notes to Schedule of Investments.

6



INTERMEDIATE MUNI FUND, INC.

 Schedule of Investments (unaudited) (continued)

 

September 30, 2005 


FACE
AMOUNT		 RATING‡ SECURITY VALUE
Texas — 9.3% (continued)
$ 2,000,000   Aa3(f)     Brazos River, TX, Harbor Navigation District, BASF Corp. Project, 6.750% due 2/1/10 (a)     $ 2,255,940  
  2,000,000   AAA     Dallas, TX, Area Rapid Transit Sales Tax Revenue, Senior Lien, AMBAC-Insured, 5.375% due 12/1/16 (a)       2,171,340  
            Dallas-Fort Worth, TX:          
  1,500,000   CCC     International Airport Facility, Improvement Corp. Revenue, Refunding, American Airlines, Series C, 6.150%
due 11/1/07 (c)(d)		       1,419,060  
  1,000,000   AAA     International Airport Revenue, Refunding, Series B, FSA-Insured, 5.500% due 11/1/20 (c)       1,079,960  
            El Paso County, TX, Housing Finance Corp.:          
  275,000   Baa3(f)     La Plaza Apartments, Sub-Series C, 8.000% due 7/1/30       281,174  
  360,000   A3(f)     MFH Revenue, Series A, American Village Communities, 6.250% due 12/1/24       370,829  
            El Paso, TX, Water & Sewer Revenue, Refunding & Improvement, Series A, FSA-Insured:          
  45,000   AAA     6.000% due 3/1/15       50,826  
  955,000   AAA     Call 3/1/12 @ 100, 6.000% due 3/1/15 (e)       1,086,207  
  2,000,000   AA     Fort Worth, TX, Water & Sewer Revenue, Call 2/15/12 @ 100, 5.625% due 2/15/17 (a)(e)       2,236,760  
  585,000   AAA     Grand Prairie, TX, Housing Finance Corp., MFH Revenue, Landings of Carrier Project, Series A, GNMA-Collateralized, 6.650% due 9/20/22       654,241  
  1,000,000   AAA     Harris County, TX, Hospital District Revenue, MBIA-Insured, 6.000% due 2/15/15       1,109,400  
  1,900,000   NR     IAH Public Facilities Corp. Project Revenue, 7.000% due 5/1/15 (a)       1,886,814  
  1,000,000   AAA     Southwest Higher Education Authority Inc., Southern Methodist University Project, AMBAC-Insured, 5.500% due 10/1/19       1,105,420  
  275,000   Aaa(f)     Tarrant County, TX, Hospital Authority Revenue, Adventist Health System-Sunbelt, 10.250% due 10/1/10 (b)       322,525  
  225,000   AAA     Texas State Department Housing Community Affairs Home Mortgage Revenue, RIBS Series C-2, GNMA/FNMA/FHLMC-Collateralized, 11.296% due 7/2/24 (c)(d)(k)       224,883  
  130,000   NR     Tom Green County, TX, Hospital Authority, 7.875% due 2/1/06 (b)       132,064  
            Total Texas       17,368,923  
Utah — 1.8%
  1,580,000   Aaa(f)     Salt Lake & Sandy, UT, Metropolitan Water District Revenue, Series A, AMBAC-Insured, 5.000% due 7/1/24       1,673,599  
            Spanish Fork City, UT, Water Revenue, FSA-Insured:          
  1,135,000   Aaa(f)     5.500% due 6/1/16       1,247,467  
  350,000   Aaa(f)     Call 6/1/12 @ 100, 5.500% due 6/1/16 (e)       390,782  
            Total Utah       3,311,848  
Washington — 1.9%
  1,250,000   Aaa(f)     Cowlitz County, WA, School District, No. 122 Longview, FSA-Insured, 5.500% due 12/1/19       1,362,013  
  2,000,000   AAA     Energy Northwest Washington Electric Revenue, Project No. 3, Series A, FSA-Insured, 5.500% due 7/1/18 (a)       2,184,420  
          Total Washington       3,546,433  
West Virginia — 0.1%
  115,000   AAA     Cabell Putnam & Wayne Counties, WV, Single – Family Residence Mortgage Revenue, FGIC-Insured, 7.375% due 4/1/10 (b)       124,742  
Wisconsin — 1.2%
  2,000,000   BBB     La Crosse, WI, Resource Recovery Revenue, Refunding Bonds, Northern States Power Co. Project, Series A, 6.000%
due 11/1/21 (b)(c)		       2,150,100  
            TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $173,968,541)       181,461,611


See Notes to Schedule of Investments.

7



INTERMEDIATE MUNI FUND, INC.

 Schedule of Investments (unaudited) (continued)

 

September 30, 2005 


FACE
AMOUNT		 RATING‡ SECURITY VALUE
SHORT-TERM INVESTMENTS(l) — 1.7%
Alaska — 0.5%
$ 900,000   A-1+     Valdez, AK, Marine Terminal, BP Pipelines Inc. Project, Series B, 2.830%, 10/3/05     $ 900,000  
Colorado — 0.1%
  300,000   VMIG1(f)     Colorado Educational & Cultural Facilities Authority Revenue, National Jewish Federal Bond Program, LOC-Bank of America NA, 2.810%, 10/3/05       300,000  
New York — 0.2%
  300,000   A-1+     Long Island Power Authority, NY, Electric System Revenue, Subordinated Series 2, 2B, LOC-Bayerische Landesbank, 2.790%, 10/3/05       300,000  
Pennsylvania — 0.2%
  300,000   A-1+     Pennsylvania State Higher EFA, Carnegie Mellon University, Series B, SPA-JPMorgan Chase Bank, 2.800%, 10/3/05       300,000  
Texas — 0.7%
            Bell County, TX, Health Facilities Development Corp. Revenue, Scott and White Memorial Hospital:          
  785,000   A-1+     Series 2001-1, MBIA-Insured, SPA-JPMorgan Chase, 2.810%, 10/3/05       785,000  
  600,000   A-1+     Series 2001-2, MBIA-Insured, 2.810%, 10/3/05       600,000  
            Total Texas       1,385,000  
            TOTAL SHORT-TERM INVESTMENTS
(Cost — $3,185,000)		       3,185,000  
            TOTAL INVESTMENTS — 99.0% (Cost — $177,153,541#)       184,646,611  
            Other Assets in Excess of Liabilities — 1.0%       1,909,779  
            TOTAL NET ASSETS — 100.0%     $ 186,556,390  
‡ All ratings are by Standard & Poor’s Ratings Service, unless otherwise footnoted. All ratings are unaudited.
(a) All or a portion of this security is segregated for open futures contracts and extended settlements.
(b) Bonds are escrowed to maturity by government securities and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings.
(c) Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (AMT).
(d) Variable rate securities. Coupon rates disclosed are those which are in effect at September 30, 2005.
(e) Pre-Refunded bonds are escrowed with government securities and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings.
(f) Rating by Moody’s Investors Service Inc. All ratings are unaudited.
(g) Residual interest tax-exempt securities--coupon varies inversely with level of short-term tax-exempt interest rates.
(h) Security is currently in default.
(i) Rating by Fitch Rating Service. All ratings are unaudited.
(j) All or a portion of this security is held at the broker as collateral for open futures contracts.
(k) Residual interest bonds-coupon varies inversely with level of short-term tax-exempt interest rates.
(l) Variable rate demand obligations have a demand feature under which the fund could tender them back to the issuer on no more than 7 days notice. Date shown is the date of the next interest rate change.
# Aggregate cost for federal income tax purposes is substantially the same.



See Notes to Schedule of Investments.

8



INTERMEDIATE MUNI FUND, INC.

 Schedule of Investments (unaudited) (continued)

 

September 30, 2005 


  Abbreviations used in this schedule:
  ACA — American Capital Assurance
 AMBAC— Ambac Assurance Corporation
  CONNIE LEE — College Construction Loan Insurance Association
  COP — Certificate of Participation
  DFA — Development Finance Agency
  EFA — Educational Facilities Authority
  FGIC — Financial Guaranty Insurance Company
  FHLMC — Federal Home Loan Mortgage Corporation
  FNMA — Federal National Mortgage Association
  FSA — Financial Security Assurance
  GNMA — Government National Mortgage Association
  GO — General Obligation
  HEFA — Health & Educational Facilities Authority
  IDA — Industrial Development Authority
  INDLC — Industrial Indemnity Authority
  LOC — Letter of Credit
  MBIA — Municipal Bond Investors Assurance Corporation
  MFH — Multi-Family Housing
  Radian — Radian Assets Assurance
  RIBS — Residual Interest Bonds
  RITES — Residual Interest Tax-Exempt Securities
  SPA — Standby Bond Purchase Agreement
  USD — Unified School District
  XLCA — XL Capital Assurance





Summary of Investments by Industry * (unaudited)

Hospitals 14.8 %
Education 14.0  
Pre-Refunded 12.7  
Escrowed to Maturity 11.3  
Transportation 8.0  
General Obligation 7.7  
Miscellaneous 5.3  
Utilities 5.3  
Pollution Control 4.3  
Tax Allocation 4.0  
Water and Sewer 3.3  
Other 9.3  
  100.0 %

* As a percent of total investments. Please note that Fund holdings are as of September 30, 2005 and are subject to change.



See Notes to Schedule of Investments.

9



INTERMEDIATE MUNI FUND, INC.

 Bond Ratings (unaudited)

 

 


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

Standard & Poor’s Ratings Service (“Standard & Poor’s”) — Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (-) sign to show relative standings within the major rating categories.
AAA — Bonds rated “AAA” have the highest rating assigned by Standard & Poor’s. Capacity to pay interest and repay principal is extremely strong.

AA — Bonds rated “AA” have a very strong capacity to pay interest and repay principal and differ from the highest rated issues only in a small degree.

A — Bonds rated “A” have a strong capacity to pay interest and repay principal although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.

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

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

D — Bonds rated “D” are in default and payment of interest and/or repayment of principal is in arrears.

Moody’s Investors Service (“Moody’s”) — Numerical modifiers 1, 2 and 3 may be applied to each generic rating from “Aa” to “Caa,” where 1 is the highest and 3 the lowest ranking within its generic category.
Aaa — Bonds rated “Aaa” are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as “gilt edge.” Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues.

Aa — Bonds rated “Aa” are judged to be of high quality by all standards. Together with the “Aaa” group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in “Aaa” securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in “Aaa” securities.

A — Bonds rated “A” possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate but elements may be present which suggest a susceptibility to impairment some time in the future.

Baa — Bonds rated “Baa” are considered as medium grade obligations, i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well.



10



INTERMEDIATE MUNI FUND, INC.

 Bond Ratings (unaudited) (continued)

 

 


Ba — Bonds rated “Ba” are judged to have speculative elements; their future cannot be considered as well assured. Often the protection of interest and principal payments may be very moderate and therefore not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class.

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

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

Ca — Bonds rated “Ca” represent obligations which are speculative in a high degree. Such issues are often in default or have other marked short-comings.

C — Bonds rated “C” are the lowest class of bonds and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing.

Fitch Rating Service (“Fitch”) — Ratings from “AAA” to “CC” 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 Fitch. Capacity to pay interest and repay principal is extremely strong.

AA — Bonds rated “AA” have a very strong capacity to pay interest and repay principal and differ from the highest rated issues only in a small degree.

A — Bonds rated “A” have a strong capacity to pay interest and repay principal although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.

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

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

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

 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.

F-1 — Fitch’s highest rating indicating the strongest capacity for timely payment of financial commitments; those issues determined to possess overwhelming strong credit feature are denoted with a plus (+) sign.



11


 Notes to Schedule of Investments (unaudited)

 

 


1. Organization and Significant Accounting Policies

The Intermediate Muni Fund, Inc. (the “Fund”) was incorporated in Maryland and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940 (“1940 Act”), as amended.

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

(a) Investment Valuation. Securities are valued at the mean between the bid and asked prices provided by an independent pricing service that are based on transactions in municipal obligations, quotations from municipal bond dealers, market transactions in comparable securities and various relationships between securities. Securities for which market quotations are not readily available or are determined not to reflect fair value, will be valued in good faith by or under the direction of the Fund’s Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates value.

(b) Financial Futures Contracts. The Fund may enter into financial futures contracts for hedging purposes. Upon entering into a financial futures contract, the Fund is required to deposit cash or securities as initial margin. Additional securities are also segregated up to the current market value of the financial futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund each day, depending on the daily fluctuation in the value of the underlying financial instruments. The Fund recognizes an unrealized gain or loss equal to the daily variation margin. When the financial futures contracts are closed, a realized gain or loss is recognized equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contracts.

The risks associated with entering into financial futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. In addition, investing in financial futures contracts involves the risk that the Fund could lose more than the original margin deposit and subsequent payments required for a futures transaction. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(c) Security Transactions. Security transactions are accounted for on a trade date basis.

2. Investments

At September 30, 2005, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation     $ 8,436,409  
Gross unrealized depreciation    (943,339 )
Net unrealized appreciation   $ 7,493,070  

At September 30, 2005, the Fund had the following open futures contracts:

Number of
Contracts		 Expiration
Date		 Basis
Value		 Market
Value		 Unrealized
Gain
Contracts to Sell:
U.S. Treasury Bond
500
12/05
$58,521,406
$57,203,125
$1,318,281


12


ITEM 2. CONTROLS AND PROCEDURES.

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

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

ITEM 3. EXHIBITS.

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




SIGNATURES

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

Intermediate Muni Fund, Inc.

By /s/ R. Jay Gerken            
R. Jay Gerken
Chief Executive Officer

Date: November 29, 2005


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

By /s/ R. Jay Gerken            
R. Jay Gerken
Chief Executive Officer

Date: November 29, 2005


By /s/ Robert J. Brault            
Robert J. Brault
Chief Financial Officer

Date: November 29, 2005