Business Context and Reporting Period
This Form 8-K is a current report filed by Salomon Brothers Capital and Income Fund Inc. (the "Fund") on June 2, 2005. The report discloses a regulatory settlement involving affiliates of the Fund's Investment Manager.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses on a regulatory disclosure rather than financial performance data.
Material Changes
On May 31, 2005, the U.S. Securities and Exchange Commission (SEC) issued an order settling an administrative proceeding against Smith Barney Fund Management LLC and Citigroup Global Markets Inc. These entities are affiliates of the Fund's Investment Manager. The proceeding related to the appointment of an affiliated transfer agent for the Smith Barney family of mutual funds. The SEC's investigation into this matter was originally disclosed in December 2003.
Guidance, Outlook, and Risks
The Fund issued a press release on June 2, 2005, detailing the settlement. The filing notes that the information contained in the press release (Exhibit 99.1) is furnished pursuant to Item 7.01 (Regulation FD Disclosure) and is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor is it incorporated by reference into other filings. No specific forward-looking guidance or new risk factors beyond the disclosed settlement are provided in this text.
Investor Verification Checklist
- Verify the specific terms and financial penalties of the SEC settlement order issued on May 31, 2005, by reviewing the attached press release (Exhibit 99.1).
- Confirm the ongoing status of the SEC investigation that began in December 2003 regarding the affiliated transfer agent appointment.
- Assess the potential impact of the settlement on the Fund's relationship with its Investment Manager and affiliates.