FUND OBJECTIVE
The Franklin New York Tax-Free Income Fund is managed to provide investors
with a high level of income exempt from regular federal, New York state and
New York City personal income taxes through a diversified portfolio of
municipal securities.*
January 20, 1995
Dear Shareholder:
We are pleased to bring you the semi-annual report for the Franklin New York
Tax-Free Income Fund for the period ended November 30, 1994.
A sharp and persistent increase in interest rates was the primary factor
affecting fixed-income investments throughout 1994. Although economic data has
yet to show a significant increase in inflation, the Federal Reserve Board
raised short-term interest rates in order to control the increases in inflation
that usually accompany economic recoveries. During the 1994 calendar year, the
Federal Reserve Board raised short-term rates six times, from 3.00% to 5.50%.
The first six months of 1994 were generally unfavorable to the bond markets.
Uncertainty surrounding the weakness of the dollar, renewed fears of inflation,
and rising interest rates created significant price volatility across all bond
markets. Since bond prices generally fall when interest rates rise, the
downturn in municipal bond prices was not unexpected. However, two factors
helped to buoy prices. First, actual reported inflation in the U.S. remained
relatively low, causing the fundamental value of bonds to appear very
attractive. Second, the municipal supply was low, approximately 60% of last
year's issuance, according to Bond Buyer. This lack of supply, coupled with a
constant level of demand, enabled the municipal bond market to outperform the
20- and 30-year U.S. Treasury bond market over the reporting period.**
New York's economic recovery has been slower than the nation's rate of recovery
as a whole. The state lost more than 560,000 jobs during the recession, and
employment is not expected to reach pre-recession levels until 1998.+
Nonetheless, the state's economy remains diverse, with services and trade
sectors accounting for 31% and 20%, respectively, of all employment. New York
City and Nassau County account for 60% of the state's total employment, and are
the largest contributors to New York's downstate economy. Despite the
recession's negative effects on the state, financial performance has shown
signs of improvement and management believes the outlook for New York municipal
bonds remains
*For investors subject to the federal alternative minimum tax, a small portion
of these dividends may be subject to such tax. Distributions of capital gains
and of ordinary income from accrued market discount, if any, are generally
taxable.
**Source: Bond Buyer. Principal invested in U.S. Treasuries is guaranteed if
held to maturity, and interest is fixed.
+Source: Standard & Poor's Creditweek Municipal, December 5, 1994.
<PAGE>
positive. Additionally, economic reforms proposed by newly elected Governor
George Pataki should have a positive effect on the New York municipal market in
the second half of the fund's upcoming fiscal year.
Franklin takes a conservative approach in the management of your fund. National
rating services such as Standard & Poor's, Moody's, and our own in-house rating
system, provide the fund's analysts with an evaluation of each bond issuer's
credit quality. As of November 30, 1994, over 71% of the fund's assets were
invested in municipal securities rated A or better, or in securities judged by
Franklin to be of comparable quality. Over 39% were rated AAA or equivalent,
the highest rating available. These ratings, while not guaranteeing the fund's
market value or signifying approval of the shares by national ratings agencies,
reflect the quality of the bonds as described in the fund's prospectus and are
subject to change.
Franklin's professional management team draws from its extensive experience to
perform a thorough analysis of the municipal market. This allows the fund's
managers to choose municipal issues they believe offer shareholders the
strongest potential for income. On November 30, 1994, your fund held over 397
positions, diversified across the state and among various municipal bond
sectors such as housing, utilities, transportation and hospitals.
This broad diversification can lower the risks associated with investing
directly in municipal bonds by spreading the fund's investments over a variety
of issues and industries.
[GRAPHIC MATERIAL (1) OMITTED - SEE APPENDIX]
In March of this year, immediately after what proved to be the high point in
the municipal market, management began to sell the lowest coupon bonds in the
fund's portfolio and to move into higher coupons. As the market continued to
decline, management accelerated this program, which had, and continues to have,
several positive influences on the fund. First, it has improved the income
generated by the fund. Second, higher coupon bonds tend to be less volatile
than those with lower coupons. Third, the resulting realized losses can be
carried forward for eight years. This enables the portfolio manager to sell
prerefunded and other high coupon bonds at a premium without creating the need
for a capital gains distribution, which is taxable to shareholders and may
erode the fund's value.
We are pleased to report that the results of this investment approach earned
the Franklin New York Tax-Free Income Fund a 5-star rating -- the highest
available -- from Morningstar, a well-
2
<PAGE>
known mutual fund rating organization.* In addition, the fund was ranked #3
out of 69 funds for total return by Lipper Analytical Services, Inc., for the
one-year period ended November 30, 1994.+
The Franklin New York Tax-Free Income Fund invests solely in municipal
securities within the top four quality ratings categories, or in securities
judged internally to be of comparable credit quality. Investing in municipal
bonds, however, is more complex today than in the past. Various investment
vehicles have been derived from municipal securities in an attempt to increase
yield to investors. Exotic derivative issues such as inverse floaters and other
customized contracts are structured to the specifications of the issuer, and
may exhibit extreme interest rate sensitivity and/or illiquidity. Many of these
derivative securities are fairly new to the marketplace and have no long-term
performance records. THEREFORE, THE MANAGERS OF YOUR FUND DO NOT PURCHASE AND
HAVE NEVER PURCHASED THESE TYPES OF DERIVATIVES. It is important to remember,
however, that price fluctuations are unavoidable and your account's value will
vary with market conditions, so that you may have a gain or loss when you sell
your shares.
As a Franklin shareholder, you receive the benefits of diversification,
professional management and dedicated service. We appreciate your participation
in the Franklin New York Tax-Free Income Fund and look forward to serving your
investment needs in the future.
Sincerely,
CHARLES B. JOHNSON
Charles B. Johnson
President
*Source: Morningstar, 11/30/94. Morningstar proprietary ratings reflect
historical risk-adjusted performance and are subject to change every month.
Funds' returns are adjusted for fees and sales loads. Morningstar ratings are
calculated from the fund's three-, five- and ten-year average annual total
returns in excess of 90-Day Treasury bill returns with appropriate fee
adjustments, and a risk factor that reflects fund performance below 90-Day
T-bill returns. Ten percent of the funds in an investment category receive five
stars. The fund was rated 5 stars for the three-, five- and ten-year periods
ended November 30, 1994. 609 municipal funds were rated for the three-year
period, while 436 and 135 funds were rated for the five- and ten-year periods,
respectively, ended November 30, 1994. Past performance cannot guarantee future
results.
+The fund was ranked #3 out of 69 New York municipal funds in total return for
the one-year period, #1 out of 35 funds for the five-year period, and #2 out of
14 funds for the ten-year period ended November 30, 1994, as measured by Lipper
Analytical Services, Inc., a nationally recognized mutual fund rating
organization. Lipper rankings do not include sales charges, and may have been
different if such charges had been considered. Past performance is not
predictive of future results.
3
<PAGE>
PERFORMANCE SUMMARY
The Franklin New York Tax-Free Income Fund's share price, as measured by net
asset value, declined from $11.72 on May 31, 1994, to $10.97 on November 30,
1994. This decline was largely due to rising interest rates, as discussed in
the shareholder letter.
The fund continued to meet its investment objective of providing high current
income to shareholders. For the six-month period ended November 30, 1994, your
fund paid income distributions totaling 37.8 cents ($0.378) per share.
Dividends will vary based on the earnings of the fund's portfolio, and past
distributions are not necessarily predictive of future results.
[GRAPHIC MATERIAL (2) OMITTED - SEE APPENDIX]
At the end of the reporting period, your fund's distribution rate was 6.60%,
based on an annualization of the current monthly dividend of 6.3 cents ($0.063)
per share and the maximum offering price of $11.46 on November 30, 1994. This
tax-free rate is generally higher than the after-tax return on a comparable
taxable investment. As the chart to the left illustrates, if you are in the
maximum 46.9% combined federal, New York state and New York City income tax
bracket, you would have to earn 12.43% from a taxable investment to match your
fund's tax-free distribution rate.
Based on this dividend income and change in share price, the fund posted a
cumulative total return of -3.29% for the six-month period ended November 30,
1994, and a one-year total return of -3.88%. Total return measures the change
in value of an investment over the periods indicated, assuming the reinvestment
of dividends and capital gains, if any, at net asset value. This calculation
does not include the initial sales charge, and past performance is not
predictive of future results.
We have always maintained a long-term investment perspective, and we encourage
our shareholders to do the same. While the fund may experience share price
fluctuation from time to time, management believes that its performance will
be satisfactory over the long term. In fact, for the ten-year period ended
November 30, 1994, a period of widely fluctuating interest rates, your fund
delivered an average annual total return of 8.96%.
4
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND
Periods ended November 30, 1994
<TABLE>
<CAPTION>
SINCE
INCEPTION
ONE-YEAR FIVE-YEAR TEN-YEAR (09/13/82)
-------- --------- -------- ----------
<S> <C> <C> <C> <C>
Cumulative Total Return:(1) -3.88% 40.52% 146.36% 189.90%
Average Annual Total Return:(2) -7.96% 6.11% 8.96% 8.71%
<S> <C>
Distribution Rate:(3) 6.60%
Taxable Equivalent Distribution Rate:(4) 12.43%
30-Day Standardized Yield:(5) 5.52%
Taxable Equivalent Yield:(4) 10.40%
</TABLE>
1. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the maximum 4.25% initial sales
charge stated in the prospectus. See note below.
2. Average annual total return represents the average annual change in value
of an investment over the specified periods and reflects the current maximum
4.25% initial sales charge stated in the prospectus. See note below.
3. Distribution rate is based on an annualization of the fund's current 6.3
cent per share monthly dividend and the maximum offering price of $11.46
on November 30, 1994.
4. Taxable equivalent distribution rate and yield assume the 1994 maximum
46.9% combined federal, New York state and New York City income tax bracket,
based on the 39.6% federal income tax rate.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended November 30, 1994.
Note: Prior to July 1, 1994, fund shares were offered at a lower initial sales
charge, with dividends reinvested at the public offering price. Thus, actual
total returns for purchasers during that period would have been different than
noted above. Effective May 1, 1994, the fund implemented a plan of
distribution under Rule 12b-1 and eliminated the sales charge on reinvested
dividends, which will affect future performance. All total return calculations
assume reinvestment of dividends and capital gains at net asset value.
Investment return and principal value will fluctuate with market conditions,
and you may have a gain or loss when you sell your shares. Past performance
is not predictive of future results.
5
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
------------ -----------
<S> <C> <C>
LONG TERM INVESTMENTS 97.6%
BONDS 96.4%
$ 1,610,000 Albany Parking Authority, Parking Revenue, Refunding, Series A, 6.85%,
11/01/12 .................................................................... $ 1,539,627
6,100,000 Auburn IDA, MFR, Auburn Memorial Home, 6.50%, 02/01/34 ........................ 5,471,090
Babylon IDA, Resource Recovery Revenue, Ogden Martin System, Inc.,
8,090,000 Series A, 8.50%, 01/01/19 ................................................... 8,611,480
4,290,000 Series B, 8.50%, 01/01/19 ................................................... 4,566,533
2,845,000 Series C, 8.50%, 01/01/19 ................................................... 3,028,389
10,750,000 Babylon IDA, Waste Facilities Revenue, Community Waste Management,
Series A, Pre-Refunded, 7.875%, 07/01/06 .................................... 11,821,345
1,000,000 Batavia Housing Authority Mortgage Revenue, Refunding, Washington Towers,
Series A, 6.50%, 07/01/23 ................................................... 910,500
2,500,000 Battery Park City Authority Revenue, Pre-Refunded, 7.70%, 05/01/15 ............ 2,725,900
8,160,000 (a)Bethany Retirement Home, Inc., Mortgage Loan Revenue, 7.50%, 02/01/34 ......... 8,202,840
1,440,000 Cattaraugus County COP, Olean Project Facility, Series A, Pre-Refunded,
8.50%, 08/01/09 ............................................................. 1,600,517
5,375,000 Clinton County COP, Correctional Facilities Project, 8.125%, 08/01/17 ......... 5,652,888
6,400,000 Cortland County IDA, Civic Facilities Revenue, Cortland Memorial Hospital, Inc.
Project, 6.25%, 07/01/24 .................................................... 5,297,984
1,000,000 Erie County GO, Public Improvement, Series A, Pre-Refunded, 9.50%, 02/01/99.... 1,037,610
5,730,000 Franklin County COP, Court House Redevelopment Project, 8.125%, 08/01/06 ...... 6,232,120
2,000,000 Franklin County IDA, Lease Revenue, County Correctional Facilities Project,....
6.75%, 11/01/12 ............................................................. 1,887,060
Glen Cove, Refunding,
200,000 Series 1993, 5.90%, 01/15/07 ................................................ 180,404
190,000 Series 1993, 5.95%, 01/15/08 ................................................ 169,754
185,000 Series 1993, 6.00%, 01/15/09 ................................................ 165,066
4,000,000 Government of Guam Limited Obligation, Highway Bonds, USF & G Insured,
Series A, Pre-Refunded, 9.25%, 05/01/05 ..................................... 4,164,120
Guam Power Authority Revenue,
15,725,000 Series A, 6.30%, 10/01/22 ................................................... 13,828,251
14,500,000 Series A, 6.75%, 10/01/24 ................................................... 13,468,180
1,425,000 Hamilton Elderly Housing Corp. Mortgage Revenue, Hamilton Apartments Project,
11.25%, 01/01/15 ............................................................ 1,520,717
1,915,000 Ilion Elderly Housing Corp. Mortgage Revenue, Section 8, Housing Assistance
Revenue, 7.25%, 07/01/09 .................................................... 1,812,969
1,400,000 Lincoln Towers Housing Corp. Mortgage Revenue, Lincoln Towers Project,
11.25%, 01/01/15 ............................................................ 1,494,038
5,045,000 Livingston County IDA, PCR, General Foods Manufacturing Corp., 8.875%,
08/01/05 .................................................................... 5,287,715
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
------------ ------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Metropolitan Transportation Authority, Commuter Facilities Revenue,
$ 33,120,000 Series A, 6.50%, 07/01/24 ................................................. $ 29,237,674
525,000 Series G, Pre-Refunded, 8.50%, 07/01/11 ................................... 563,036
17,450,000 Series H, Pre-Refunded, 8.50%, 07/01/11 ................................... 18,714,253
Metropolitan Transportation Authority, Service Contract Revenue,
7,255,000 Commuter Facilities, 6.00%, 07/01/21 ...................................... 6,066,486
2,750,000 Commuter Facilities, Series 3, Pre-Refunded, 7.50%, 07/01/16 .............. 3,009,545
2,790,000 Commuter Facilities, Series 4, Pre-Refunded, 8.00%, 07/01/08 .............. 3,104,489
5,490,000 Commuter Facilities, Series 4, Pre-Refunded, 7.50%, 07/01/19 .............. 5,988,163
23,130,000 Commuter Facilities, Series 5, 7.00%, 07/01/12 ............................ 22,358,846
24,160,000 Refunding, Commuter Facilities, Series N, 7.125%, 07/01/09 ................ 24,017,698
18,350,000 Refunding, Transit Facilities, Series 5, 7.00%, 07/01/12 .................. 17,738,211
16,470,000 Refunding, Transit Facilities, Series 5, 6.50%, 07/01/16 .................. 14,998,735
7,725,000 Refunding, Transit Facilities, Series 5, 6.00%, 07/01/18 .................. 6,549,332
7,625,000 Refunding, Transit Facilities, Series N, 7.125%, 07/01/09 ................. 7,580,089
2,050,000 Transit Facilities, Series 4, Pre-Refunded, 8.00%, 07/01/08 ............... 2,281,076
9,300,000 Transit Facilities, Series 4, Pre-Refunded, 7.50%, 07/01/19 ............... 10,143,882
2,000,000 Transit Facilities, Series 6, 7.00%, 07/01/09 ............................. 1,965,880
13,000,000 Transit Facilities, Series 6, 6.00%, 07/01/21 ............................. 10,870,340
Metropolitan Transportation Authority, Transit Facilities Revenue,
35,695,000 Refunding, Series 5, 6.50%, 07/01/16 ...................................... 32,506,366
8,460,000 Refunding, Series 5, 6.00%, 07/01/18 ...................................... 7,172,473
7,230,000 Series E, Pre-Refunded, 9.125%, 07/01/04 .................................. 7,573,353
22,000,000 Series E, Pre-Refunded, 9.125%, 07/01/11 .................................. 23,006,060
750,000 Series F, Pre-Refunded, 8.375%, 07/01/05 .................................. 802,943
54,190,000 Series F, Pre-Refunded, 8.375%, 07/01/16 .................................. 58,015,272
11,300,000 Series H, Pre-Refunded, 8.50%, 07/01/05 ................................... 12,118,685
28,540,000 Series H, Pre-Refunded, 8.50%, 07/01/11 ................................... 30,607,723
1,285,000 Monroe County IDAR, Civic Facilities, De Paul Community Facilities, 6.50%,
02/01/24 .................................................................. 1,153,223
New York City GO,
11,400,000 Refunding, Series 1991-A, 6.25%, 08/01/17 ................................. 9,957,330
2,000,000 Refunding, Series 1992-A, 6.25%, 08/01/19 ................................. 1,742,800
12,875,000 Refunding, Series 1992-A, 6.25%, 08/01/20 ................................. 11,196,100
4,775,000 Refunding, Series 1992-A, 6.25%, 08/01/21 ................................. 4,144,318
2,420,000 Series 1985-B, Pre-Refunded, 9.625%, 10/01/08 ............................. 2,566,144
1,570,000 Series 1986-D, 8.50%, 08/01/11 ............................................ 1,685,285
5,000,000 Series 1986-D, 7.00%, 02/01/12 ............................................ 4,820,850
6,305,000 Series 1986-D, 8.50%, 08/01/13 ............................................ 6,767,976
125,000 Series 1986-D, 8.50%, 08/01/14 ............................................ 130,186
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
----------- -----------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
New York City GO, (cont.)
$ 730,000 Series 1986-D, 8.50%, 08/01/15 .......................................... $ 759,010
3,220,000 Series 1986-D, 8.50%, 08/01/16 .......................................... 3,456,445
1,035,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/02 ............................ 1,104,288
80,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/11 ............................ 83,421
345,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/13 ............................ 359,314
2,375,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/14 ............................ 2,549,396
13,970,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/15 ............................ 14,995,817
175,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/16 ............................ 181,871
740,000 Series 1987-A, Pre-Refunded, 8.50%, 11/01/08 ............................ 810,685
12,805,000 Series 1987-A, Pre-Refunded, 8.50%, 11/01/09 ............................ 14,009,692
4,410,000 Series 1987-A, Pre-Refunded, 8.50%, 11/01/11 ............................ 4,831,243
2,900,000 Series 1987-A, Pre-Refunded, 8.50%, 11/01/12 ............................ 3,168,830
2,115,000 Series 1987-A, Pre-Refunded, 8.75%, 11/01/14 ............................ 2,325,041
1,180,000 Series 1987-D, 8.50%, 08/01/08 .......................................... 1,263,804
1,055,000 Series 1987-D, 8.50%, 08/01/09 .......................................... 1,110,883
5,720,000 Series 1987-D, Pre-Refunded, 8.50%, 08/01/08 ............................ 6,246,583
8,210,000 Series 1987-D, Pre-Refunded, 8.50%, 08/01/10 ............................ 8,908,171
4,000,000 Series 1990-B, 7.00%, 06/01/13 .......................................... 3,844,000
6,725,000 Series 1990-B, 7.00%, 06/01/14 .......................................... 6,462,927
4,250,000 Series 1990-B, 7.00%, 06/01/15 .......................................... 4,059,133
2,000,000 Series 1991-A, 7.75%, 08/15/13 .......................................... 2,040,100
10,000,000 Series 1991-A, 7.75%, 08/15/14 .......................................... 10,200,500
1,400,000 Series 1991-A, 7.75%, 08/15/15 .......................................... 1,423,590
2,000,000 Series 1991-B, 7.75%, 02/01/10 .......................................... 2,057,660
5,000,000 Series 1991-B, 7.75%, 02/01/11 .......................................... 5,161,000
500,000 Series 1991-B, 7.75%, 02/01/12 .......................................... 514,415
1,875,000 Series 1991-B, 7.75%, 02/01/13 .......................................... 1,914,038
4,820,000 Series 1991-B, 8.25%, 08/01/13 .......................................... 5,120,287
10,950,000 Series 1991-B, 7.75%, 02/01/14 .......................................... 11,177,979
22,610,000 Series 1991-B, 7.75%, 02/01/15 .......................................... 23,080,740
1,485,000 Series 1991-B, 7.00%, 02/01/18 .......................................... 1,419,452
3,615,000 Series 1991-B, Pre-Refunded, 8.00%, 08/01/17 ............................ 4,036,509
65,000 Series 1991-D, 8.00%, 08/01/17 .......................................... 67,870
7,500,000 Series 1991-F, 8.40%, 11/15/08 .......................................... 8,147,250
3,350,000 Series 1991-F, 8.40%, 11/15/09 .......................................... 3,612,272
12,625,000 Series 1992-B, 7.00%, 10/01/13 .......................................... 12,126,818
1,500,000 Series 1992-B, 6.75%, 10/01/15 .......................................... 1,397,055
4,500,000 Series 1992-C, Sub-Series C, 7.00%, 08/01/16 ............................ 4,306,590
2,500,000 Series 1992-D, 7.50%, 02/01/18 .......................................... 2,522,650
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
------------ -----------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
New York City GO, (cont.)
$ 4,000,000 Series 1992-H, 7.20%, 02/01/14 .............................................. $ 3,934,280
4,600,000 Series 1992-H, 7.20%, 02/01/15 .............................................. 4,522,674
6,500,000 Series 1992-H, 7.00%, 02/01/17 .............................................. 6,218,030
4,225,000 Series 1992-H, 7.00%, 02/01/18 .............................................. 4,038,509
4,650,000 Series 1993-E, 6.00%, 05/15/20 .............................................. 3,899,258
5,825,000 Series 1993-E, 6.00%, 05/15/21 .............................................. 4,872,263
10,000,000 Series 1994-B, Sub-Series B-1, 7.50%, 08/15/20 .............................. 10,114,700
New York City HDC, MFMR,
10,000,000 Series A, 6.55%, 04/01/18 ................................................... 9,164,300
51,500,000 Series A, 6.60%, 04/01/30 ................................................... 46,352,574
1,500,000 Series I, FGIC Insured, 8.50%, 05/01/07 ..................................... 1,568,535
114,635,000 New York City Health & Hospital Authority, Local Government Revenue,
Refunding, Series A, 6.30%, 02/15/20 ........................................ 95,454,272
New York City IDA, Civic Facilities Revenue,
6,570,000 American Society, Prevention Cruelty Project, 7.625%, 10/15/09 .............. 6,818,609
9,270,000 American Society, Prevention Cruelty Project, 7.70%, 10/15/19 ............... 9,658,135
2,765,000 Federation Protestant Welfare, 6.95%, 11/01/11............................... 2,703,036
4,000,000 New York Blood Center, Inc. Project, 7.20%, 05/01/12 ........................ 3,906,720
7,000,000 New York Blood Center, Inc. Project, 7.25%, 05/01/22 ........................ 6,876,730
2,500,000 St. Christopher Ottilie Project, 7.50%, 07/01/21 ............................ 2,556,225
8,000,000 The Lighthouse, Inc. Project, 6.50%, 07/01/22 ............................... 7,413,120
New York City Municipal Water Finance Authority, Water & Sewer
System Revenue,
6,660,000 Series 1987-A, Pre-Refunded, 8.75%, 06/15/10 ................................ 7,307,419
37,135,000 Series 1987-A, Pre-Refunded, 9.00%, 06/15/17 ................................ 40,961,390
1,475,000 Series 1989-A, Pre-Refunded, 7.375%, 06/15/09 ............................... 1,586,348
2,185,000 Series 1991-A, 7.00%, 06/15/15 .............................................. 2,154,563
3,010,000 Series 1991-A, 6.75%, 06/15/16 .............................................. 2,874,189
15,000,000 Series 1991-A, 6.75%, 06/15/17 .............................................. 14,310,300
33,485,000 Series 1991-A, Pre-Refunded, 7.10%, 06/15/12 ................................ 34,609,461
1,570,000 Series 1991-A, Pre-Refunded, 7.00%, 06/15/15 ................................ 1,664,356
4,210,000 Series 1991-C, AMBAC Insured, 6.50%, 06/15/21 ............................... 3,957,653
4,650,000 Series 1991-C, Pre-Refunded, 7.75%, 06/15/20 ................................ 5,157,780
19,310,000 Series 1992-B, 6.50%, 06/15/20 .............................................. 17,567,852
23,960,000 Series 1992-B, 6.375%, 06/15/22 ............................................. 21,391,728
2,215,000 Series 1994-A, Pre-Refunded, 7.10%, 06/15/12 ................................ 2,359,927
690,000 Series 1994-A, Pre-Refunded, 7.00%, 06/15/15 ................................ 731,469
New York Housing Corp. Revenue,
5,000,000 Series A, MBIA Insured, Pre-Refunded, 8.625%, 11/01/06 ...................... 5,515,600
70,065,000 Series A, Pre-Refunded, 9.00%, 11/01/17 ..................................... 77,786,163
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
----------- -----------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
New York State COP,
$ 3,800,000 City University, John Jay College, 7.25%, 08/15/07 ...................... $ 3,938,548
2,500,000 Commissioner Office Mental Health, 8.25%, 09/01/07 ...................... 2,656,625
1,750,000 Commissioner Office Mental Health, 8.30%, 09/01/12 ...................... 1,858,185
6,575,000 Hanson Redevelopment Project, 8.25%, 11/01/01 ........................... 6,908,090
18,045,000 Hanson Redevelopment Project, 8.375%, 05/01/08 .......................... 18,819,311
New York State Dormitory Authority Revenue,
5,790,000 City University System Consolidated, Series A, 6.50%, 07/01/16 .......... 5,249,561
33,795,000 City University System Consolidated, Series A, Pre-Refunded, 7.625%,
07/01/20 .............................................................. 37,013,974
3,430,000 City University System Consolidated, Series D, 7.00%, 07/01/09 .......... 3,371,484
10,970,000 City University System Consolidated, Series E, 7.75%, 07/01/17 .......... 11,090,341
18,920,000 City University System, Series A, Pre-Refunded, 7.625%, 07/01/13 ........ 20,023,413
14,900,000 City University System, Series C, 7.50%, 07/01/10 ....................... 15,355,493
6,505,000 City University System, Series F, Pre-Refunded, 7.875%, 07/01/07 ........ 7,200,775
73,320,000 City University System, Series F, Pre-Refunded, 7.875%, 04/01/17 ........ 81,162,307
1,000,000 Crouse Irving Memorial Hospital, HIBI Insured, 10.50%, 07/01/17 ......... 1,023,360
2,530,000 Department of Education, 7.75%, 07/01/21 ................................ 2,675,627
14,725,000 Department of Health, 6.20%, 07/01/17 ................................... 12,901,162
19,790,000 Department of Health, Pre-Refunded, 7.70%, 07/01/20 ..................... 21,843,806
3,190,000 Department of Health, Veterans Home, 7.25%, 07/01/11 .................... 3,168,499
8,480,000 Department of Health, Veterans Home, 6.25%, 07/01/20 .................... 7,341,221
9,775,000 Department of Health, Veterans Home, 7.25%, 07/01/21 .................... 9,582,530
2,115,000 Fashion Institute of Technology, 7.50%, 07/01/20 ........................ 2,146,429
2,460,000 Heritage House Nursing Center, 7.00%, 08/01/31 .......................... 2,424,551
14,355,000 Long Island Jewish Medical Center, Series A, 7.75%, 08/15/27 ............ 15,207,113
5,835,000 Our Lady of Mercy, FHA Insured, Mortgage Revenue, 6.30%, 08/01/32 ....... 5,252,259
5,000,000 Refunding, City University, 7.625%, 07/01/14 ............................ 5,291,600
2,000,000 Refunding, City University, Series C, 8.20%, 07/01/14 ................... 2,200,100
2,500,000 Refunding, City University, Series U, 6.375%, 07/01/08 .................. 2,337,425
5,405,000 Refunding, City University, Series U, 6.70%, 07/01/09 ................... 5,196,097
16,000,000 Refunding, Manhattan College, 6.50%, 07/01/19 ........................... 14,734,080
2,565,000 State University Athletic Facilities, 7.25%, 07/01/12 ................... 2,566,411
4,750,000 State University Athletic Facilities, 7.25%, 07/01/21 ................... 4,683,594
30,445,000 State University Educational Facilities, Series A, 7.125%, 05/15/17 ..... 32,536,267
39,540,000 State University Educational Facilities, Series A, 7.25%, 05/15/18 ...... 42,730,087
55,190,000 State University Educational Facilities, Series A, Pre-Refunded, 7.70%,
05/15/12 .............................................................. 60,827,107
14,460,000 State University Educational Facilities, Series A, Pre-Refunded, 7.125%,
05/15/17 .............................................................. 15,453,257
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
----------- -----------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
New York State Dormitory Authority Revenue, (cont.)
$ 5,110,000 State University Educational Facilities, Series A, Pre-Refunded, 7.25%,
05/15/18 .................................................................. $ 5,522,275
7,025,000 State University Educational Facilities, Series B, 7.35%, 05/15/14 .......... 7,094,337
7,995,000 State University Educational Facilities, Series B, 7.00%, 05/15/16 .......... 7,694,708
2,000,000 State University Educational Facilities, Series C, 6.125%, 05/15/20 ......... 1,715,620
4,000,000 The Highlands Living, 6.60%, 02/01/34 ....................................... 3,615,520
6,500,000 The Society of New York Hospital, 9.75%, 07/01/15 ........................... 6,643,975
3,250,000 Upstate Community Colleges, Series A, Pre-Refunded, 7.60%, 07/01/20 ......... 3,572,010
1,000,000 Upstate Community Colleges, Series B, Pre-Refunded, 7.20%, 07/01/21 ......... 1,077,840
New York State Energy Research & Development Authority, Gas Facilities Revenue,
24,135,000 Brooklyn Union Gas Co. Project, 9.00%, 05/15/15 ............................. 24,950,039
4,010,000 Brooklyn Union Gas Co. Project, 8.75%, 07/01/15 ............................. 4,156,004
2,390,000 Brooklyn Union Gas Co. Project, Series 1, 7.125%, 12/01/20 .................. 2,382,926
New York State Energy Research & Development Authority, PCR,
3,300,000 Long Island Projects, 7.80%, 12/01/09 ....................................... 3,314,619
5,000,000 Long Island Projects, Series A, 7.50%, 12/01/06 ............................. 5,017,000
38,145,000 Niagara Mohawk Power Corp. Project, Series 1, 8.875%, 11/01/25 .............. 39,883,268
11,420,000 Orange & Rockland Utilities, Inc. Project, 9.00%, 08/01/15 .................. 11,889,247
New York State Environmental Facilities Corp., Special Obligation,
4,000,000 Riverbank State Park, 7.25%, 04/01/07 ....................................... 3,916,720
4,300,000 Riverbank State Park, 7.25%, 04/01/12 ....................................... 4,191,984
28,525,000 Riverbank State Park, 7.375%, 04/01/22 ...................................... 28,076,017
4,500,000 New York State Environmental Facilities Corp., Water Facilities Revenue,
Jamaica Water Supply Co. Project, 10.875%, 12/01/14 ....................... 4,679,595
New York State HFA,
2,445,000 Henry Phipps Plaza, West Urban Project, Section 236, 8.00%, 05/01/18 ........ 2,501,088
1,295,000 Urban Rentals, Series A, 8.25%, 11/01/19 .................................... 1,335,028
New York State HFA, Service Contract Obligation Revenue,
2,500,000 Refunding, Series C, 6.30%, 09/15/12 ........................................ 2,269,075
22,590,000 Refunding, Series C, 6.00%, 09/15/21 ........................................ 18,765,513
3,995,000 Series 1990-A, Pre-Refunded, 7.80%, 09/15/10 ................................ 4,418,350
24,000,000 Series 1990-A, Pre-Refunded, 7.80%, 09/15/20 ................................ 26,667,840
10,250,000 Series 1991-A, Pre-Refunded, 7.80%, 09/15/11 ................................ 11,342,650
37,310,000 Series 1991-A, Pre-Refunded, 7.80%, 09/15/20 ................................ 41,494,690
14,400,000 Series 1991-C, Pre-Refunded, 7.30%, 03/15/21 ................................ 15,704,496
2,375,000 Series 1992-A, 7.25%, 09/15/12 .............................................. 2,367,566
9,625,000 Series 1992-A, Pre-Refunded, 7.375%, 09/15/21 ............................... 10,519,644
27,870,000 Series 1992-C, 6.30%, 03/15/22 .............................................. 24,206,767
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
----------- ------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
New York State HFA, Service Contract Obligation Revenue, (cont.)
$57,540,000 Series 1993-C, 6.125%, 03/15/20 ............................................ $ 48,795,071
28,330,000 Series 1994-A, 6.50%, 03/15/24 .......................................... 25,076,866
New York State HFAR,
5,285,000 Children's Rescue Fund Housing, Series A, 7.625%, 05/01/18 .............. 5,388,480
2,050,000 FHA Insured, Adult Care Center, Series A, 7.85%, 02/15/30 ............... 2,195,919
4,245,000 MF Housing, Second Mortgage, Series A, 7.00%, 08/15/23 .................. 4,057,965
2,500,000 MF Housing, Second Mortgage, Series D, 6.25%, 08/15/23 .................. 2,117,975
2,500,000 MF Housing, Second Mortgage, Series D, 6.60%, 08/15/27 .................. 2,215,675
4,250,000 MF Housing, Second Mortgage, Series E, 6.75%, 08/15/25 .................. 3,849,990
1,820,000 MF Mortgage, AMBAC Insured, Series 1994-A, 6.35%, 02/15/23 .............. 1,648,283
30,515,000 MF Mortgage, AMBAC Insured, Series 1994-B, 6.35%, 08/15/23 .............. 27,620,042
12,575,000 MF Mortgage, FHA Insured, Series 1985-B, 8.50%, 05/15/28 ................ 12,962,059
6,130,000 MF Mortgage, FHA Insured, Series 1991-A, 7.10%, 08/15/35 ................ 5,840,787
6,870,000 MF Mortgage, FHA Insured, Series 1992-C, 6.50%, 08/15/24 ................ 6,026,708
96,650,000 Refunding, New York City Health Facilities, Series A, 8.00%, 11/01/08 ... 104,383,933
New York State Local Government Assistance Corp.,
10,120,000 Series 1991-B, 6.50%, 04/01/20 .......................................... 9,365,048
31,000,000 Series 1991-B, Pre-Refunded, 7.50%, 04/01/20 ............................ 34,009,480
39,935,000 Series 1991-C, 6.50%, 04/01/15 .......................................... 37,413,105
5,000,000 Series 1992-A, 6.875%, 04/01/19 ......................................... 4,847,400
925,000 Series 1992-A, Pre-Refunded, 7.00%, 04/01/21 ............................ 977,902
New York State Medical Care Facilities Finance Agency,
43,465,000 Albany Medical Center, Alice Hyde Project, FHA Insured, Mortgage Revenue,
Series A, 8.00%, 02/15/28 ............................................. 45,901,213
10,525,000 Brooklyn, Caldonia & Long Island College Hospitals, FHA Insured,
Mortgage Revenue, Series A, Pre-Refunded, 8.50%, 01/15/22 ............. 11,140,607
3,500,000 Buffalo General Hospital, FHA Insured, Mortgage Revenue, Series C,
Pre-Refunded, 7.70%, 02/15/22 ......................................... 3,816,925
22,150,000 Catholic Medical Center of Brooklyn & Queens, Inc., FHA Insured,
Mortgage Revenue, Series A, Pre-Refunded, 8.30%, 02/15/22 ............. 24,290,576
4,330,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series A,
6.20%, 02/15/21 ....................................................... 3,705,484
6,000,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series A,
6.30%, 08/15/23 ....................................................... 5,282,340
8,150,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series A,
6.25%, 02/15/27 ....................................................... 6,883,246
28,750,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series A,
7.45%, 08/15/31 ....................................................... 29,055,900
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
----------- -----------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
New York State Medical Care Facilities Finance Agency, (cont.)
$ 7,940,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series A,
6.375%, 08/15/33 .......................................................... $ 6,905,180
7,650,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series B,
10.50%, 01/15/24 .......................................................... 7,694,064
12,470,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series B,
8.875%, 08/15/27 .......................................................... 13,317,835
33,220,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series B,
8.00%, 02/15/28 ........................................................... 35,171,343
16,000,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series B,
6.95%, 02/15/32 ........................................................... 15,166,880
4,235,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series B,
Pre-Refunded, 9.125%, 02/15/25 ............................................ 4,346,931
8,000,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series C,
6.50%, 08/15/21 ........................................................... 7,123,520
5,000,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series C,
9.00%, 02/15/26 ........................................................... 5,123,450
47,430,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series C,
6.375%, 08/15/29 .......................................................... 40,913,592
15,000,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series C,
6.65%, 08/15/32 ........................................................... 13,575,750
13,375,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series D,
6.60%, 02/15/31 ........................................................... 12,155,066
55,500,000 Hospital & Nursing Home, FHA Insured, Mortgage Revenue, Series D,
6.45%, 02/15/32 ........................................................... 48,844,995
11,670,000 Hospital & Nursing Home, FSA Insured, Mortgage Revenue, Series A,
6.50%, 02/15/34 ........................................................... 10,358,059
4,000,000 Huntington Hospital Mortgage, Refunding, Project A, 6.50%, 11/01/14 ......... 3,544,400
68,050,000 Long Island College Hospital, FHA Insured, Mortgage Revenue, Series B,
Pre-Refunded, 8.10%, 02/15/22 ............................................. 74,233,704
2,670,000 Medina Memorial Hospital Project, Series A, 7.30%, 05/01/11 ................. 2,652,084
8,270,000 Mental Health Services, Facilities Improvement Revenue, Series A,
Pre-Refunded, 7.70%, 02/15/18 ............................................. 8,958,974
64,110,000 Mental Health Services Facilities, Series A, 8.875%, 08/15/07 ............... 69,775,400
57,100,000 Mental Health Services Facilities, Series A, Pre-Refunded, 8.875%, 08/15/07.. 63,092,074
7,405,000 Mental Health Services Facilities, Series A, 7.70%, 02/15/18 ................ 7,577,759
2,210,000 Mercy Community Hospital Project, Sisters of Mercy, Series A,
9.80%, 11/01/16 ........................................................... 2,239,371
17,285,000 Mortgage Project, Series B, 6.60%, 08/15/34 ................................. 15,518,300
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
----------- -----------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
New York State Medical Care Facilities Finance Agency, (cont.)
$74,455,000 Mt. Sinai Hospital, FHA Insured, Mortgage Revenue, Series C,
Pre-Refunded, 8.875%, 01/15/26 ........................................ $79,106,948
5,380,000 North General Hospital, Series 1989-A, 7.35%, 08/15/09 .................. 5,345,783
32,450,000 St. Vincent's Hospital, FHA Insured, Mortgage Revenue, Series A,
Pre-Refunded, 8.00%, 02/15/27 ......................................... 34,109,169
1,665,000 Saranac Lake General Hospital Project Revenue, Series A,
7.875%, 11/01/10 ...................................................... 1,705,909
1,500,000 Second Mortgage Health Care Project Revenue, Series B, 6.35%, 11/01/14 .. 1,376,460
61,535,000 Secured Hospital Revenue, Bronx, Lebanon & The Jamaica Hospital,
Series A, 7.10%, 02/15/27.............................................. 57,634,296
72,180,000 Secured Hospital Revenue, North General Hospital, Series A,
7.40%, 02/15/19 70,894,474
22,150,000 Secured Hospital Revenue, Series A, 7.35%, 08/15/11 ..................... 21,586,726
55,225,000 Secured Hospital Revenue, Series A, 7.40%, 08/15/21 ..................... 52,870,206
15,780,000 Secured Hospital Revenue, Series A, 6.25%, 02/15/24 ..................... 12,931,868
34,810,000 The Hospital for Special Surgery Revenue, Series A, 6.45%, 08/15/34 ..... 30,586,155
9,145,000 Refunding, Beth Israel Medical Center Project, Series A,
7.20%, 11/01/14 ....................................................... 8,726,799
72,200,000 Refunding, Columbia Presbyterian Hospital, FHA Insured, Mortgage
Revenue, Series A, Pre-Refunded, 8.00%, 02/15/25 ...................... 78,025,818
10,730,000 Refunding, FHA Insured, Mortgage Hospital, Series A, 7.25%, 02/15/12 .... 10,778,929
1,185,000 Refunding, Good Samaritan Hospital Project Revenue, Series A,
8.00%, 11/01/13 ....................................................... 1,250,542
5,050,000 Refunding, Hospital & Nursing Home, FHA Insured, Mortgage Revenue,
Series A, 6.20%, 05/15/23 ............................................. 4,383,804
8,000,000 Refunding, Huntington Hospital Project Revenue, Series A, Pre-Refunded,
8.125%, 11/01/14 ...................................................... 8,696,320
4,005,000 Refunding, John T. Mather Memorial Hospital Project, 7.00%, 11/01/15 .... 3,815,122
6,400,000 Refunding, Nyack Hospital Project Revenue, Series A, 8.30%, 11/01/13 .... 6,740,992
9,900,000 Refunding, Vassar Brothers Hospital Project Revenue, Series A,
8.25%, 11/01/13 ....................................................... 10,383,417
New York State Mortgage Agency, HMR,
285,000 5th Series, 9.75%, 10/01/10 ............................................. 293,148
70,000 7th Series, 8.50%, 10/01/04 ............................................. 71,483
815,000 7th Series, 8.625%, 04/01/11 ............................................ 835,228
9,670,000 8th Series C, 8.40%, 10/01/17 ........................................... 9,881,966
6,235,000 8th Series D, 8.375%, 10/01/17 .......................................... 6,422,923
4,885,000 8th Series E, 8.10%, 10/01/17 ........................................... 4,966,384
4,535,000 10th Series A, 8.10%, 04/01/14 .......................................... 4,734,224
14,400,000 29th Series B, 6.45%, 04/01/15 .......................................... 13,240,080
14,055,000 37th Series A, 6.375%, 10/01/14 ......................................... 12,825,328
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
----------- -----------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
New York State Mortgage Agency, HMR, (cont.)
$ 9,000,000 37th Series A, 6.45%, 10/01/14 .............................................. $ 8,191,890
1,000,000 Series 39, 6.00%, 10/01/17 .................................................. 860,420
6,560,000 Series BB-2, 7.95%, 10/01/15 ................................................ 6,700,187
3,405,000 Series EE-1, 8.05%, 04/01/16 ................................................ 3,513,449
2,835,000 Series FF, 7.95%, 10/01/14 .................................................. 2,899,723
14,510,000 Series OO, 8.05%, 10/01/11 .................................................. 15,376,973
14,650,000 Series RR, 7.75%, 10/01/17 .................................................. 14,778,627
New York State Mortgage Agency Revenue,
34,155,000 Homeowners Mortgage, Series 43, 6.45%, 10/01/17 ............................. 31,088,222
23,730,000 Homeowners Mortgage, Series 45, 7.20%, 10/01/17 ............................. 23,491,276
2,500,000 Series 41-A, 6.45%, 10/01/14 ................................................ 2,269,175
9,880,000 Series 41-A, 6.50%, 10/01/17 ................................................ 9,047,610
New York State Tollway Authority, Service Contract Revenue,
1,300,000 Local Highway & Bridge, 7.25%, 01/01/10 ................................... 1,315,691
12,630,000 Local Highway & Bridge, 6.20%, 04/01/10 ................................... 11,489,637
21,865,000 Local Highway & Bridge, 6.375%, 04/01/12 .................................. 20,255,517
New York State Urban Development Corp. Revenue,
12,500,000 Correctional Facilities, Series B, Pre-Refunded, 8.00%, 01/01/06 .......... 13,137,375
28,335,000 Correctional Facilities, Series B, Pre-Refunded, 8.00%, 01/01/15 .......... 29,779,802
2,000,000 Refunding, Correctional Facilities, Pre-Refunded, 8.00%, 01/01/06 ......... 2,101,980
51,935,000 Refunding, Correctional Facilities, Pre-Refunded, 8.00%, 01/01/15 ......... 54,583,166
1,500,000 Syracuse University Center, 7.875%, 01/01/17 .............................. 1,535,865
Niagara Falls GO, Public Improvement,
805,000 Refunding, Pre-Refunded, 8.15%, 04/01/04 .................................. 873,296
790,000 Refunding, Pre-Refunded, 8.15%, 04/01/05 .................................. 857,024
775,000 Refunding, Pre-Refunded, 8.15%, 04/01/06 .................................. 840,751
755,000 Refunding, Pre-Refunded, 8.15%, 04/01/07 .................................. 819,054
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/04 ................................... 1,098,080
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/05 ................................... 1,098,080
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/06 ................................... 1,098,080
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/07 ................................... 1,098,080
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/08 ................................... 1,098,080
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/09 ................................... 1,098,080
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/10 ................................... 1,098,080
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/11 ................................... 1,098,080
3,500,000 North County, Development Authority, Solid Waste Management Systems
Revenue, Series A, 6.75%, 07/01/12 ........................................ 3,354,190
2,155,000 Oneida Health Care Corp., Mortgage Revenue, Oneida Health Care, Series A,
7.20%, 08/01/31 ........................................................... 2,008,719
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
----------- ------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Oneida-Herkimer, Solid Waste Management Authority,
$ 1,390,000 Solid Waste Systems Revenue, 6.20%, 04/01/00 ................................ $ 1,345,326
1,035,000 Solid Waste Systems Revenue, 6.30%, 04/01/01 ................................ 994,314
1,930,000 Solid Waste Systems Revenue, 6.40%, 04/01/02 ................................ 1,845,215
2,075,000 Solid Waste Systems Revenue, 6.50%, 04/01/03 ................................ 1,975,047
1,115,000 Solid Waste Systems Revenue, 6.65%, 04/01/05 ................................ 1,052,170
4,380,000 Solid Waste Systems Revenue, 6.75%, 04/01/14 ................................ 3,944,278
4,225,000 Onondaga County IDA, Civic Facilities Revenue, Community General Hospital,
Greater Syracuse, Series B, 6.625%, 01/01/18 ................................ 3,746,308
8,000,000 Port Authority of New York and New Jersey, Consolidated 53rd Series Revenue,
8.70%, 07/15/20 ............................................................. 8,368,560
17,000,000 Port Authority of New York and New Jersey, Delta Air Lines Special Project,
Series 1, 6.95%, 06/01/08 ................................................... 16,036,440
14,645,000 Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue, Series A,
7.875%, 07/01/17 ............................................................ 15,375,345
10,000,000 Puerto Rico Commonwealth GO, 6.50%, 07/01/23 .................................. 9,350,100
29,455,000 Puerto Rico Commonwealth Highway Authority Revenue, Series P,
Pre-Refunded, 8.125%, 07/01/13 .............................................. 32,482,385
2,155,000 Puerto Rico Commonwealth Highway & Transportation Authority Revenue,
Series T, 6.625%, 07/01/18 .................................................. 2,050,310
8,000,000 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax
Revenue, Series A, 7.90%, 07/01/07 .......................................... 8,504,480
8,100,000 Puerto Rico Commonwealth Urban Renewal & Housing Corp., Refunding,
7.875%, 10/01/04 ............................................................ 8,727,993
Puerto Rico Electric Power Authority Revenue,
28,435,000 Refunding, Series 1987-K, Pre-Refunded, 9.375%, 07/01/17 .................... 31,691,376
6,500,000 Refunding, Series 1987-L, Pre-Refunded, 8.375%, 07/01/07 .................... 7,090,330
12,695,000 Refunding, Series 1988-M, Pre-Refunded, 8.00%, 07/01/08 ..................... 13,949,013
19,065,000 Series 1994-T, 6.375%, 07/01/24 ............................................. 17,170,320
Puerto Rico Industrial, Medical & Environmental Facilities, PCFA,
1,000,000 Baxter Travenol Labs., Series A, 8.00%, 09/01/12 ............................ 1,082,210
1,660,000 San Pablo Hospital Project, Series A, FHA Insured, Mortgage Revenue,
Pre-Refunded, 10.125%, 08/01/23 ............................................... 1,707,542
21,015,000 Special Facilities, American Airlines Corp., Series A, 8.75%, 12/01/25 ...... 21,975,596
Puerto Rico Municipal Finance Agency,
14,760,000 Series A, 8.25%, 07/01/08 ................................................... 15,892,387
11,000,000 Series A, 8.25%, 07/01/08 ................................................... 10,177,200
Puerto Rico PBA, Guaranteed, Public Education & Health Facilities,
1,255,000 Refunding, Pre-Refunded, 7.875%, 07/01/16 ................................... 1,355,048
3,370,000 Series F, Pre-Refunded, 8.05%, 07/01/04 ..................................... 3,625,480
16,070,000 Series F, Pre-Refunded, 8.00%, 07/01/12 ..................................... 17,276,214
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
----------- --------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
BONDS (CONT.)
Rensselaer Municipal Leasing Corp., Leasehold Mortgage Revenue, Rensselaer
County Nursing Home,
$10,000,000 Series A, 6.90%, 06/01/24 ............................................. $ 8,680,700
3,345,000 Series B, 6.90%, 06/01/24 ............................................. 2,903,694
4,230,000 Schenectady Municipal Housing Authority Housing Revenue, Annie Schaffer
Senior Center, Inc. Project, 6.45%, 05/01/24 ............................ 3,820,367
Suffolk County GO, Southwest Sewer District, Refunding,
3,000,000 Pre-Refunded, 10.80%, 02/01/97 .......................................... 3,089,130
6,200,000 Pre-Refunded, 10.90%, 02/01/98 .......................................... 6,385,131
6,200,000 Pre-Refunded, 10.90%, 02/01/99 .......................................... 6,385,131
Suffolk County IDA, Civic Facilities Revenue,
4,800,000 Dowling College Civic Facilities, 8.25%, 12/01/20 ....................... 5,132,544
2,000,000 Dowling College Civic Facilities, 6.625%, 06/01/24 ...................... 1,797,580
1,345,000 Sunnybrook Elderly Housing Corp. Mortgage Revenue, Sunnybrook Apartments
Project, 11.25%, 12/01/14 ............................................... 1,400,386
2,000,000 Syracuse IDA, Civic Facility Revenue, St. Joseph's Hospital
Health Center Project, 7.50%, 06/01/18 .................................. 1,939,960
United Nations Development Corp. Revenue, Refunding,
1,430,000 Phase 2 & 3, Senior Lien, Series A, Pre-Refunded, 7.875%, 07/01/06 ...... 1,520,962
60,385,000 Phase 2 & 3, Senior Lien, Series A, Pre-Refunded, 7.875%, 07/01/26 ...... 64,226,090
3,480,000 Phase 2 & 3, Sub-Lien, Series B, Pre-Refunded, 8.125%, 07/01/06 ......... 3,712,673
7,445,000 Phase 2 & 3, Sub-Lien, Series B, Pre-Refunded, 8.25%, 07/01/26 .......... 7,956,620
10,975,000 Sub-Lien, Series A, 6.00%, 07/01/26 ..................................... 9,597,527
15,370,000 Sub-Lien, Series B, 6.25%, 07/01/26 ..................................... 13,927,833
3,100,000 Virgin Islands Water & Power Authority Electric System, Series A,
7.40%, 07/01/11 ......................................................... 3,061,095
41,000,000 Warren & Washington Counties IDAR, Refunding, Adirondack Resource
Recovery Project, Series A, 7.90%, 12/15/07 ............................. 39,591,240
Yonkers GO,
500,000 Series A, 9.20%, 02/01/01 ............................................... 563,965
1,090,000 Series A, 9.20%, 02/01/03 ............................................... 1,245,587
1,095,000 Series A, 9.20%, 02/01/04 ............................................... 1,257,180
1,095,000 Series A, 9.20%, 02/01/05 ............................................... 1,265,185
--------------
TOTAL BONDS (COST $4,157,452,337).......................................... 4,190,038,553
--------------
(b)ZERO COUPON/STEP-UP BONDS 1.2%
1,120,000 Erie County Water Authority, Water Revenue, Refunding, Fourth Resolution,
AMBAC Insured, Pre-Refunded, (original accretion rate 7.30%), 12/01/17 .. 215,532
Metropolitan Transportation Authority, Transit Facilities Revenue,
3,500,000 Refunding, Commuter Facilities, Series 7, (original accretion
rate 5.546%), 07/01/14 ................................................ 808,640
8,205,000 Refunding, Series 7, (original accretion rate 5.75%), 07/01/09 .......... 2,815,136
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
----------- -------------
<S> <C> <C>
LONG TERM INVESTMENTS (CONT.)
(b)ZERO COUPON/STEP-UP BONDS (CONT.)
Metropolitan Transportation Authority, Transit Facilities Revenue, (cont.)
$16,500,000 Refunding, Series 7, (original accretion rate 5.80%), 07/01/10 .......... $ 5,221,095
21,200,000 Refunding, Series 7, (original accretion rate 5.80%), 07/01/11 .......... 6,180,860
7,000,000 Refunding, Series 7, (original accretion rate 5.85%), 07/01/12 .......... 1,894,480
5,160,000 Series E, (original accretion rate 6.40%), 05/15/19 ..................... 863,577
7,935,000 Transit Facilities, Series 7, (original accretion rate 5.85%), 07/01/13 . 1,968,752
New York City GO,
8,875,000 Citysavers, Series B, (original accretion rate 8.25%), 08/01/09 ......... 3,117,610
1,030,000 Citysavers, Series B, (original accretion rate 8.66%), 06/01/12 ......... 291,088
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/12 ......... 280,757
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/13 ......... 269,829
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/13 ......... 260,230
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/14 ......... 250,970
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/14 ......... 242,040
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/15 ......... 233,419
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/15 ......... 225,117
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/16 ......... 216,207
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/16 ......... 208,493
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/17 ......... 201,056
1,030,000 Citysavers, Series B, (origianl accretion rate 8.50%), 12/01/17 ......... 193,877
1,030,000 Citysavers, Series B, (original accretion rate 2.706%), 06/01/18 ........ 186,955
1,005,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/18 ......... 175,915
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/19 ......... 173,854
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/19 ......... 167,653
10,000,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/20 ......... 1,569,600
2,500,000 M-Raes, Series 29, zero coupon to 03/15/00, (original accretion
rate 8.50%), 8.00% thereafter, 03/15/12 ............................... 1,702,924
3,875,000 M-Raes, Series 30, zero coupon to 03/15/00, (original accretion
rate 8.50%), 8.00% thereafter, 03/15/13 ............................... 2,645,036
20,400,000 M-Raes, Series 36, zero coupon to 10/01/02, (original accretion
rate 3.048%), 7.00% thereafter, 10/01/14 .............................. 10,838,520
2,690,000 Series A-2, (original accretion rate 5.95%), 08/01/10 ................... 867,955
21,625,000 Triborough Bridge and Tunnel Authority, Convention Center Project,
Series E, (original accretion rate 7.50%), 01/01/12 ..................... 6,154,907
--------------
TOTAL ZERO COUPON/STEP-UP BONDS (COST $58,112,442)......................... 50,442,084
--------------
TOTAL LONG TERM INVESTMENTS (COST $4,215,564,779).......................... 4,240,480,637
==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, NOVEMBER 30, 1994
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
---------- --------------
<S> <C>
(c)SHORT TERM INVESTMENTS
$2,500,000 New York City Municipal Water Finance Authority, Water & Sewer System
Revenue, FGIC Insured, Series G, Daily VRDN and Put, 2.90%, 06/15/23
(COST $2,500,000) ...................................................... $ 2,500,000
--------------
TOTAL INVESTMENTS (COST $4,218,064,779) 97.6%.................... 4,242,980,637
--------------
OTHER ASSETS AND LIABILITIES, NET 2.4% ........................... 103,348,549
--------------
NET ASSETS 100.0% .............................................. $4,346,329,186
==============
At November 30, 1994, the net unrealized appreciation based on
the cost of investments for income tax purposes of $4,219,217,087 was as
follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost............................ $ 176,235,486
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value............................ (152,471,936)
--------------
Net unrealized appreciation............................................. $ 23,763,550
==============
</TABLE>
PORTFOLIO ABBREVIATIONS:
<TABLE>
<S> <C>
AMBAC - American Municipal Bond Assurance Corp.
COP - Certificate of Participation
FGIC - Financial Guaranty Insurance Corp.
FHA - Federal Housing Authority/Agency
FSA - Financial Security Assistance
GO - General Obligation
HDC - Housing Development Corp.
HFA - Housing Finance Authority/Agency
HFAR - Housing Finance Authority/Agency Revenue
HIBI - Health Industry Bond Insurance
HMR - Home Mortgage Revenue
IDA - Industrial Development Authority/Agency
IDAR - Industrial Development Authority/Agency Revenue
MBIA - Municipal Bond Investors Assurance Corp.
MF - Multi-Family
MFMR - Multi-Family Mortgage Revenue
MFR - Multi-Family Revenue
PBA - Public Building Authority
PCFA - Pollution Control Financing Authority
PCR - Pollution Control Revenue
USF&G - United States Fidelity & Guaranty Co.
</TABLE>
(a) See Note 1 regarding securities purchased on a when-issued basis.
(b) Zero coupon/Step-up bonds. The current effective yield may vary. The
original accretion rate by security will remain constant.
(c) Variable rate demand notes (VRDN's) are tax-exempt obligations which
contain a floating or variable interest rate adjustment formula and an
unconditional right of demand to receive payment of the principal balance plus
accrued interest upon short notice prior to specified dates. The interest rate
may change on specified dates in relationship with changes in a designated
rate (such as the prime interest rate or U.S. Treasury bills rate).
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1994 (UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investment in securities, at value
(at identified cost $4,218,064,779) $4,242,980,637
Cash 13,030,723
Receivables:
Interest 93,568,511
Investment securities sold 12,131,669
Capital shares sold 3,890,258
Prepaid Expenses 31,868
--------------
Total assets 4,365,633,666
--------------
Liabilities:
Payables:
Investment securities purchased:
Regular delivery 5,531,135
When-issued basis (Note 1) 8,217,800
Capital shares repurchased 2,856,135
Management fees 1,648,454
Distribution fees 721,596
Shareholder servicing costs 47,039
Accrued expenses and other liabilities 282,321
--------------
Total liabilities 19,304,480
--------------
Net assets, at value $4,346,329,186
==============
Net assets consist of:
Undistributed net investment income $ 11,570,847
Unrealized appreciation on investments 24,915,858
Accumulated net realized loss (65,756,873)
Capital shares 3,960,830
Additional paid-in capital 4,371,638,524
--------------
Net assets, at value $4,346,329,186
==============
Shares outstanding 396,083,021
--------------
Net asset value per share $10.97
==============
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1994 (UNAUDITED)
<S> <C>
Investment income:
Interest (Note 1) $159,404,871
Expenses:
Management fees (Note 5) $10,381,989
Distribution fees (Note 5) 1,725,177
Shareholder servicing costs
(Note 5) 347,043
Reports to shareholders 466,702
Custodian fees 238,140
Professional fees (Note 5) 58,514
Directors' fees and expenses 32,224
Registration fees 5,590
Other 81,293
-------
Total expenses 13,336,672
--------------
Net investment income 146,068,199
--------------
Realized and unrealized loss
from investments:
Net realized loss (13,024,230)
--------------
Net unrealized depreciation
during the period (279,997,345)
--------------
Net realized and unrealized
loss on investments (293,021,575)
--------------
Net decrease in net assets
resulting from operations $(146,953,376)
==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
FINANCIAL STATEMENTS (CONT.)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED NOVEMBER 30,1994 (UNAUDITED)
AND THE YEAR ENDED MAY 31, 1994
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
NOVEMBER 30, 1994 MAY 31,1994
----------------- -------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income..................................................... $ 146,068,199 $ 286,246,889
Net realized loss from security transactions.............................. (13,024,230) (24,088,876)
Net unrealized depreciation during the period............................. (279,997,345) (114,464,524)
-------------- --------------
Net increase (decrease) in net assets resulting from operations....... (146,953,376) 147,693,489
Distributions to shareholders from undistributed net investment income..... (150,061,713) (289,819,098)
Increase in net assets from capital shares transactions (Note 3)........... 33,345,502 412,874,905
-------------- --------------
Net increase (decrease) in net assets................................. (263,669,587) 270,749,296
Net assets:
Beginning of period ....................................................... 4,609,998,773 4,339,249,477
-------------- --------------
End of period (including undistributed net investment income of
$11,570,847 - 11/30/94 and $15,564,361 - 5/31/94) ......................... $4,346,329,186 $4,609,998,773
============== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Franklin New York Tax-Free Income Fund, Inc. (the Fund) is an open-end
diversified management investment company (mutual fund), registered under the
Investment Company Act of 1940 as amended.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
A. SECURITY VALUATIONS: Tax-free bonds generally trade in the over-the-counter
market rather than on a national securities exchange. Often there are no
transactions in a particular security on any given day. In the absence of a
recorded sale or reported bid and asked prices, information with respect to
bond and note transactions, quotations from bond dealers, market transactions
in comparable securities, and various relationships between securities are used
to determine the value of the security. The Fund may also utilize a pricing
service, bank or broker/dealer experienced in such matters to perform any of
the pricing functions, under procedures approved by the Board of Directors.
Short-term securities and similar investments with remaining maturities of 60
days or less are valued at amortized cost, which approximates value.
B. INCOME TAXES: The Fund intends to continue to qualify for the tax treatment
applicable to regulated investment companies under the Internal Revenue Code
and to make the requisite distributions to its shareholders which will be
sufficient to relieve it from income and excise taxes. Therefore, no income
tax provision is required.
C. SECURITY TRANSACTIONS: Security transactions are accounted for on the date
the securities are purchased or sold (trade date). Realized gains and losses on
security transactions are determined on the basis of specific identification
for both financial statement and income tax purposes.
D. INVESTMENT INCOME, EXPENSE AND DISTRIBUTIONS: Distributions to shareholders
are recorded on the ex-dividend date. Interest income and estimated expenses
are accrued daily. Bond discounts and premiums are amortized as required by the
Internal Revenue Code.
Net realized capital losses differ for financial statement and tax purposes
primarily due to differing treatment of wash sale transactions.
E. SECURITIES TRADED ON A WHEN-ISSUED BASIS: The Fund may trade securities on a
when-issued or delayed delivery basis, with payment and delivery scheduled for
a future date. These transactions are subject to market fluctuations and are
subject to the risk that the value at delivery may be more or less than the
trade date purchase price. Although the Fund will generally purchase these
securities with the intention of acquiring such securities, they may sell such
securities before the settlement date. These securities are identified on the
accompanying statement of investments in securities and net assets. The Fund
has set aside sufficient investment securities as collateral for these purchase
commitments.
2. DISTRIBUTIONS AND CAPITAL LOSS CARRYOVERS
At May 31, 1994, for tax purposes, the Fund had capital loss carryovers as
follows:
<TABLE>
<S> <C> <C>
Expiring in: 1996 $22,797,232
1997 5,574,301
2002 23,907,476
-----------
$52,279,009
===========
</TABLE>
For tax purposes, the aggregate cost of securities is higher (and unrealized
appreciation is lower) than for financial reporting purposes at November 30,
1994 by $1,152,308.
22
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)
3. CAPITAL STOCK
At November 30, 1994, there were 5,000,000,000 shares of $.01 par value capital
stock authorized, and paid-in capital aggregated $4,375,599,354. Transactions
in the Fund's shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, 1994 MAY 31, 1994
---------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Shares sold...................................... 16,959,991 $195,557,479 51,458,903 $ 624,610,727
Shares issued in reinvestment of distributions... 5,702,171 65,698,984 9,616,839 115,957,302
Shares redeemed.................................. (17,659,512) (201,444,256) (24,059,238) (289,963,825)
Changes from exercise of exchange privilege:
Shares sold..................................... 6,125,801 69,958,425 7,296,444 87,461,565
Shares redeemed................................. (8,436,279) (96,425,130) (10,421,181) (125,190,864)
----------- ------------ ----------- -------------
Net increase..................................... 2,692,172 $ 33,345,502 33,891,767 $ 412,874,905
=========== ============ =========== =============
</TABLE>
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding purchases and sales of short-term
securities) for the six months ended November 30, 1994 aggregated $692,715,949
and $672,297,372 respectively.
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Franklin Advisers, Inc., under the terms of an agreement, provides investment
advice, administrative services, office space and facilities to the Fund, and
receives fees computed monthly on the net assets of the Fund at the last day of
each month, at an annualized rate of 5/8 of 1% of the first $100 million of net
assets, 1/2 of 1% of net assets in excess of $100 million up to $250 million
and 45/100 of 1% of net assets in excess of $250 million up to $10 billion. Fees
are reduced further on net assets over $10 billion. Fees incurred by the Fund
under the agreement aggregated $10,381,989 for the six months ended November
30, 1994. The terms of the management agreement provide that aggregate annual
expenses of the Fund be limited to the extent necessary to comply with the
limitations set forth in the laws, regulations and administrative
interpretations of the states in which the Fund's shares are registered.
There were no reimbursements to the Fund under this provision for the six
months ended November 30, 1994.
Under the terms of a Distribution Agreement to Rule 12b-1 of the Investment
Company Act of 1940, the Fund will reimburse Franklin/Templeton Distributors,
Inc. in an amount up to .10% per annum of the Fund's average daily net assets
for costs incurred in the promotion, offering and marketing of the Fund's
shares. Costs incurred by the Fund under the agreement aggregated $1,725,177
for the six months ended November 30, 1994.
In its capacity as underwriter for the capital stock of the Fund,
Franklin/Templeton Distributors, Inc. received commissions on sales of the
Fund's capital stock for the six months ended November 30, 1994 totaling
$6,832,506 of which $6,479,532 was subsequently paid to other dealers.
Commissions are deducted from the gross proceeds received from the sale of the
capital stock of the Fund and as such are not expenses of the Fund.
Pursuant to a shareholder servicing agreement with Franklin/Templeton Investor
Services, Inc., the Fund pays costs on a per shareholder account basis. Such
costs incurred for the six months ended November 30, 1994 aggregated $347,043
of which $314,747 was paid to Franklin/Templeton Investor Services, Inc.
During the six months ended November 30, 1994, legal fees of $22,995 were
incurred to a law firm in which Brian E. Lorenz, Secretary of the Fund, is a
partner.
23
<PAGE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONT.)
Certain officers and directors of the Fund are also officers and/or directors
of Franklin/Templeton Distributors, Inc., Franklin Advisers, Inc., and
Franklin/Templeton Investor Services, Inc., all wholly-owned subsidiaries of
Franklin Resources, Inc.
6. CREDIT RISK
Although the Fund has a diversified investment portfolio, substantially all of
its investments are in the securities of issuers in New York. Such manner of
investments may subject the Fund to economic and fiscal changes occurring
within that state.
7. FINANCIAL HIGHLIGHTS
Selected data for each share of capital stock outstanding throughout each
period are as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED MAY 31,
ENDED ----------------------------------------------------------------
NOVEMBER 30, 1994 1994 1993 1992 1991 1990
----------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value at beginning
of period..................... $11.72 $12.07 $11.45 $10.94 $10.85 $11.05
---------- ---------- ---------- ---------- ---------- ----------
Net investment income......... .37 .75 .77 .78 .80 .80
Net realized and unrealized
gain (loss) on securities.... (.742) (.338) .630 .523 .086 (.208)
---------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations.................... (.372) .412 1.400 1.303 .886 .592
---------- ---------- ---------- ---------- ---------- ----------
Distributions from net
investment income............. (.378) (.762) (.780) (.793) (.796) (.792)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value at end
of period..................... $10.97 $11.72 $12.07 $11.45 $10.94 $10.85
========== ========== ========== ========== ========== ==========
TOTAL RETURN*.................. (3.29)% 3.18% 12.35% 12.05% 8.20% 5.25%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of period
(in 000's).................... $4,346,329 $4,609,999 $4,339,249 $3,570,851 $3,108,151 $2,914,840
Ratio of expenses to average
net assets.................... .58%+ .52% .52% .51% .50% .50%
Ratio of net investment income
to average net assets........ 6.40%+ 6.19% 6.56% 7.01% 7.34% 7.30%
Portfolio turnover rate........ 14.97% 25.67% 12.28% 19.37% 18.62% 15.47%
</TABLE>
*Total return measures the change in value of an investment over the periods
indicated. It does not include the maximum initial sales charge, and assumes
reinvestment of dividends at the offering price and capital gains, if any, at
net asset value and is not annualized. Effective May 1, 1994, with the
implementation of the Rule 12b-1 distribution plan, as discussed in Note 5, the
existing sales charge on reinvested income dividends has been eliminated.
+Annualized
24
<PAGE>
FRANKLIN DEPOSIT SLIP
Please deposit the attached check for $____________ into the following
Franklin account number: ___________________________________
Name(s): ___________________________________________________
(Please print as shown on account registration)
Mail to:
Franklin/Templeton Group
777 Mariners Island Blvd. [LOGO]
P.O. Box 7777
San Mateo, CA 94403-7777
Checks should be made payable to the applicable fund.
You have previously received a prospectus for the fund
in which you are a shareholder.
- - --------------------------------------------------------------------------------
FRANKLIN DEPOSIT SLIP
Please deposit the attached check for $____________ into the following
Franklin account number: ___________________________________
Name(s): ___________________________________________________
(Please print as shown on account registration)
Mail to:
Franklin/Templeton Group
777 Mariners Island Blvd. [LOGO]
P.O. Box 7777
San Mateo, CA 94403-7777
Checks should be made payable to the applicable fund.
You have previously received a prospectus for the fund
in which you are a shareholder.
- - --------------------------------------------------------------------------------
FRANKLIN DEPOSIT SLIP
Please deposit the attached check for $____________ into the following
Franklin account number: ___________________________________
Name(s): ___________________________________________________
(Please print as shown on account registration)
Mail to:
Franklin/Templeton Group
777 Mariners Island Blvd. [LOGO]
P.O. Box 7777
San Mateo, CA 94403-7777
Checks should be made payable to the applicable fund.
You have previously received a prospectus for the fund
in which you are a shareholder.
<PAGE>
THE FRANKLIN/TEMPLETON GROUP
For a free brochure and prospectus, which contain more complete information,
including charges and expenses, call Franklin Fund Information, toll free, at
1-800/DIAL BEN (1-800/342-5236). Please read the prospectus carefully before
you invest or send money. To ensure the highest quality of service, telephone
calls to or from our service departments may be monitored, recorded and
accessed. These calls can be determined by the presence of a regular beeping
tone.
TEMPLETON GROUP OF FUNDS
Americas Government Securities Fund
Developing Markets Trust
Foreign Fund
Global Infrastructure Fund
Global Opportunities Trust
Global Rising Dividends Fund
Growth Fund
Income Fund
Real Estate Securities Fund
Smaller Companies Growth Fund
World Fund
FRANKLIN FUNDS SEEKING TAX-FREE INCOME
Federal Tax-Free Income Fund
Federal Intermediate-Term Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund(***)
Puerto Rico Tax-Free Income Fund
FRANKLIN STATE-SPECIFIC FUNDS SEEKING TAX-FREE INCOME
Alabama
Arizona(*)
Arkansas(**)
California(*)
Colorado
Connecticut
Florida(*)
Georgia
Hawaii(**)
Indiana
Kentucky
Lousiana
Maryland
Massachusetts(***)
Michigan(***)
Minnesota(***)
Missouri
New Jersey
New York(*)
North Carolina
Ohio(***)
Oregon
Pennsylvania
Tennessee(**)
Texas
Virginia
Washington(**)
FRANKLIN FUNDS SEEKING CAPITAL GROWTH
California Growth Fund
DynaTech Fund
Equity Fund
Global Health Care Fund
Gold Fund
Growth Fund
International Equity Fund
Japan Fund
Pacific Growth Fund
Real Estate Securities Fund
Small Cap Growth Fund
FRANKLIN FUNDS SEEKING GROWTH AND INCOME
Balance Sheet Investment Fund
Convertible Securities Fund
Equity Income Fund
Global Utilities Fund
Income Fund
Premier Return Fund
Rising Dividends Fund
Utilities Fund
FRANKLIN FUNDS SEEKING HIGH CURRENT INCOME
AGE High Income Fund
German Government Bond Fund
Global Government Income Fund
Investment Grade Income Fund
U.S. Government Securities Fund
FRANKLIN FUNDS SEEKING HIGH CURRENT INCOME AND STABILITY OF PRINCIPAL
Adjustable Rate Securities Fund
Adjustable U.S. Government Securities Fund
Short-Intermediate U.S. Government Securities Fund
FRANKLIN FUNDS FOR NON-U.S. INVESTORS
Tax-Advantaged High Yield Securities Fund
Tax-Advantaged International Bond Fund
Tax-Advantaged U.S. Government Securities Fund
FRANKLIN/TEMPLETON GLOBAL CURRENCY FUNDS
Global Currency Fund
High Income Currency Fund
Hard Currency Fund
FRANKLIN MONEY MARKET FUNDS
Money Fund
Federal Money Fund
Tax-Exempt Money Fund
California Tax-Exempt Money Fund
New York Tax-Exempt Money Fund
IFT U.S. Treasury Money Market Portfolio
FRANKLIN FUND FOR CORPORATIONS
Corporate Qualified Dividend Fund
FRANKLIN TAX-DEFERRED ANNUITY
Valuemark
(*) Two or more fund options available: long-term portfolio, intermediate-term
portfolio, a portfolio of insured municipal securities, and a high yield
portfolio (CA).
(**) The fund may invest up to 100% of its assets in bonds that pay interest
subject to the federal alternative minimum tax.
(***) Portfolio of insured municipal securities. 12/94
<PAGE>
<TABLE>
<S> <C>
FRANKLIN NEW YORK TAX-FREE INCOME FUND ---------------------------------
777 Mariners Island Blvd., P.O. Box 7777 Bulk Rate
San Mateo, CA 94403-7777 U.S. Postage
PAID
So. San Francisco, CA
ADDRESS CORRECTION REQUESTED Permit No. 655
---------------------------------
</TABLE>
SEMI-ANNUAL REPORT
INVESTMENT ADVISER
Franklin Advisers, Inc.
777 Mariners Island Blvd.
San Mateo, CA 94404-1585
415/570-3000
DISTRIBUTOR
Franklin/Templeton Distributors, Inc.
777 Mariners Island Blvd.
San Mateo, CA 94404-1585
415/570-3000
SHAREHOLDER SERVICES AGENT
Franklin/Templeton Investor Services, Inc.
San Mateo, CA 94404-1585
This report is intended for distribution to existing shareholders of the Fund
or Trust, who previously received a prospectus.
15 S94 01/95
FRANKLIN
NEW YORK
TAX-FREE
INCOME FUND
SEMI-ANNUAL REPORT
NOVEMBER 30, 1994
[FRANKLIN TEMPLETON LOGO]
APPENDIX
- - ----------
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PURSUANT TO ITEM 304(a) OF REGULATION S-T)
GRAPHIC MATERIAL (1) -
<TABLE>
<CAPTION>
SECTOR BREAKDOWN ON 11/30/94
AS A PERCENTAGE OF TOTAL NET ASSETS
<S> <C>
HOUSING 10.5%
EDUCATION 2.5%
UTILITIES 8.0%
HOSPITALS 21.1%
HEALTH CARE 6.7%
TRANSPORTATION 6.3%
GENERAL OBLIGATIONS 5.5%
OTHER 5.5%
PREREFUNDED 33.9%
TOTAL 100.0%
</TABLE>
GRAPHIC MATERIAL (2) -
THIS BAR CHART SHOWS THE COMPARISON BETWEEN THE FUND'S DISTRIBUTION RATE OF
6.60% AND THE TAXABLE EQUIVALENT RATE OF 12.43%.
<PAGE>
