CONTENTS
<TABLE>
<S> <C>
MESSAGE FROM THE PRESIDENT 1
MANAGER'S DISCUSSION 3
PERFORMANCE SUMMARY 6
RESULTS OF
SHAREHOLDER MEETING 8
STATEMENT OF INVESTMENTS 9
FINANCIAL STATEMENTS 17
NOTES TO FINANCIAL
STATEMENTS 19
REPORT OF INDEPENDENT AUDITORS 22
</TABLE>
Mutual funds, annuities, and other investment products:
- - are not FDIC insured;
- - are not deposits or obligations of, or guaranteed by, any financial
institution;
- - are subject to investment risks, including possible loss of the principal
amount invested.
Charles B. Johnson
President
July 20, 1995
Dear Shareholders:
We're pleased to bring you the annual report of the Franklin New York Tax-Free
Income Fund for the period ended May 31, 1995.
Calendar year 1994 was the worst for fixed-income securities since the fund's
inception in 1983. In fact, the 20-year U.S. Treasury bond recorded its poorest
performance since 1967.(1) Following this disappointing year, 1995 to date has
been a welcome change. Stock and bond markets enjoyed strong performance through
the first four months of the year. In February, the Dow Jones Industrial Average
broke the 4000 mark for the first time, and finished the period above 4300. The
bond market, as measured by the Lehman Brothers Municipal Bond Index, rose to
$10,286 on May 31, 1995, from $9,890 on June 30, 1994.
Of more importance to shareholders of the Franklin New York Tax-Free Income Fund
is the recent strength of the municipal bond market. Although the rally was
sidetracked in early December by the municipal bankruptcy filing of Orange
County, California, the municipal market has recovered nicely. Through May 31,
1995, municipal bond prices, as measured by the Bond Buyer 40 Index, had risen
5.17% since the beginning of 1995. Of course, there's no guarantee that these
markets will continue to rise as they have recently. In fact, current debate
regarding a national flat tax has caused the municipal market to pause in recent
months.
There has been a tremendous amount of press discussing various tax reform
issues, including a "flat tax" proposal, consumption tax, a national sales tax,
and a "Super IRA." Each of these proposals carry a variety of underlying
questions -- Will there be any allowed deductions? Will I lose the benefit of
investing in tax-free municipal bonds? As you can imagine, a number of details
need to be fully considered. Such news coverage has understandably caused some
concern among investors; however, it is probably too early to draw clear-cut
conclusions on how any of the proposed tax reform plans could impact the
municipal bond market. We will continue to monitor this situation and keep our
shareholders apprised of any changes that may affect their investments.
As you know, markets experience both ups and downs, which is a normal part of
investing. That's why we've always encouraged our shareholders to focus on their
long-term investment goals. History has shown that, over the long term, stocks
and bonds have delivered impressive results.(2) By concentrating on long-term
investment goals, you need not be unduly concerned with short-term market
fluctuations.
(1.) Source: Ibbotson Associates. Based on one-year total returns of long-term
government bonds from January 1926 to December 1994.
(2.) Past performance cannot guarantee future results.
1
Furthermore, many financial experts agree that a technique known as "dollar cost
averaging" may be one of the best ways to take advantage of market downturns and
rallies. With dollar cost averaging, you invest a fixed dollar amount at regular
intervals, regardless of the market's direction. Using this method, you
auto-matically purchase more shares when prices are low, and fewer shares when
prices are high, which can significantly reduce your average cost per share. Of
course, no investment technique can assure a profit or protect against loss.
Dollar cost averaging can, however, provide you with a simple investment
strategy that can minimize the effects of market volatility and help you make
the most of your investment dollars.(3) For more information on dollar cost
averaging, please see your investment advisor or call Franklin Templeton Fund
Information, toll free, at 1-800/DIAL BEN.
You can also help minimize the effects of market fluctuations by diversifying
your investments. Mutual funds offer a level of diversification that would be
almost impossible for individual investors to achieve on their own. For example,
the Franklin New York Tax-Free Income Fund's $4.7 billion in assets are spread
over 400 issues and a variety of cities and counties, which helps safeguard the
fund from losses experienced by any one issuer.
Mutual funds also provide full-time, professional management, and Franklin's
Municipal Bond Research Department is one of the largest in the industry.(4) Our
analysts frequently make site visits to obtain invaluable first-hand information
about issuers and specific municipal projects.
As always, we welcome your questions, appreciate your trust and support, and
look forward to serving you in the years to come.
Sincerely,
Charles B. Johnson
President
(3.) When using this strategy, you should consider your financial ability to
continue purchases through periods of low price levels or changing economic
conditions.
(4.) Source: Research and Ratings Review, Vol. II. Issue 8, November 14, 1994.
Franklin's municipal research team ranks second out of 1,000 investment advisory
firms, in terms of municipal bond analysts, in a survey by TMS Holdings, Inc.
2
MANAGER'S DISCUSSION
Fund Objective:
Seeks to provide high current income exempt from regular federal, New York
state and New York City personal income taxes through a diversified
portfolio consisting primarily of municipal securities.*
Nineteen ninety-four reminded all of us that volatility is a fundamental market
condition. Not only did we see an unprecedented six interest rate increases in
federal funds during the calendar year, we also witnessed the largest municipal
bankruptcy filing in history by Orange County, California. As a result, the
municipal market experienced higher yields, which translated into lower
securities prices.
The bond market decline of 1994 affected your fund's share price through the
first half of its fiscal year, with the fund's net asset value price bottoming
in late November 1994. During the first six months of the reporting period, your
fund's net asset value price declined 75 cents per share to $10.97 on November
30, 1994, after starting the reporting period at $11.72 per share. Shortly after
the Fed raised the federal funds rate for the sixth time in November, bond
markets experienced a rally and the fund's share price rebounded. This recovery,
while not yet reaching the highs of early 1994, has resulted in an 8% gain in
the fund's net asset value price per share from the lows of November 1994. In
fact, the fund's Class I share price finished the fiscal year at $11.75,
slightly higher than the price of $11.72 on May 31, 1994.
The municipal bond market recovery can be attributed to a couple of factors.
First, the perception is that the seven increases in the federal funds rate
since February 1994 have finally slowed economic growth to a more sustainable
level. This perception is further strengthened by the indications that certain
banking institutions are currently contemplating reductions in their prime
lending rates. Second, the dramatically curtailed supply of municipal issuance,
together with continued strong demand, has played an important role in the
recovery. For example, during the first four months of 1994, 170 municipal
issues came to market in New York, having a total value of $7.8 billion. During
the first four months of 1995, municipal issuance declined 42% to 99 issues, and
total value declined 45% to $4.3 billion.**
*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: The Bond Buyer.
3
We used this period of extreme volatility to further strengthen the long-term
prospects of the fund. When the municipal market began its decline in 1994, we
took the opportunity to sell our lowest coupon bonds and move into higher
coupons. As the decline continued, we stayed with this program. This benefited
your fund in several ways. First, it improved the income generated by the fund.
Second, higher coupon bonds exhibited greater price stability than those with
lower coupons, and this helped to decrease the fund's volatility. With these
sales, we funded purchases of current coupon bonds during that recovery.
The majority of the pre-refunded bonds we sold were due to be called by their
issuers within the next few years. We chose to sell these bonds prior to their
call dates (the date on which a bond issuer may redeem an outstanding bond) as
we felt that the risk -- that the supply of new issues and secondary bonds might
be insufficient to satisfy demand on the call dates, resulting in higher bond
prices -- was too great to be left to chance. Additionally, the majority of the
proceeds from these sales were reinvested during the early stages of the
recovery, when interest rates were higher than those currently available.
As always, we purchased only investment-grade bonds for the fund; that is, bonds
whose credit quality ratings at the time of purchase fell within Standard &
Poor's and Moody's four highest categories. As the chart to the left indicates,
over 60% of the securities held in the fund's portfolio were rated A or better.
We evaluate each issue on an individual basis, favoring highly rated "essential
service" bonds. These securities have a reliable income stream generated from
hospitals, utilities, and transportation projects, to name a few. As a result,
these bonds tend to be less affected by budgetary and political changes, and are
believed to be very attractive in a municipal cost-cutting environment. Like all
mutual funds, however, the principal value of the fund's holdings, which
directly affects the price of its shares, will vary with market conditions.
4
FRANKLIN NEW YORK
TAX-FREE INCOME FUND
Portfolio Breakdown on May 31, 1995
As a percentage of total net assets
<TABLE>
<CAPTION>
SECTOR % OF TOTAL NET ASSETS
- ------------------------------------------------------------------------------
<S> <C>
Hospitals 23.0%
- ------------------------------------------------------------------------------
Pre-Refunded 16.1%
- ------------------------------------------------------------------------------
Housing 14.2%
- ------------------------------------------------------------------------------
Utilities 11.6%
- ------------------------------------------------------------------------------
Transportation 8.9%
- ------------------------------------------------------------------------------
Health Care 6.6%
- ------------------------------------------------------------------------------
General Obligations 5.1%
- ------------------------------------------------------------------------------
Education 4.8%
- ------------------------------------------------------------------------------
Other Revenue 3.9%
- ------------------------------------------------------------------------------
Sales Tax 3.3%
- ------------------------------------------------------------------------------
Certificates of Participation 1.9%
- ------------------------------------------------------------------------------
Industrial 0.4%
- ------------------------------------------------------------------------------
Miscellaneous 0.2%
- ------------------------------------------------------------------------------
For a complete list of portfolio holdings, please see page 9 of this report.
We also seek to reduce the fund's risk through diversification. On May 31, 1995,
the fund held over 400 issues, spanning a broad range of cities and counties
throughout New York. Furthermore, we purchase securities from a variety of
municipal investment sectors, as the table to the left illustrates.
Our outlook for the fund is positive. While New York entered the recession
earlier than the rest of the nation and, in the opinion of some analysts, is
rebounding more slowly, we are optimistic about the state's long-term prospects.
This outlook reflects positive fiscal debt reforms over the past two years, and
an anticipation that the trends will continue in 1995 and beyond. Further, the
state has demonstrated its ability to address revenue shortfalls by reducing
expenditures.(7) These factors, coupled with the fact that new issuance is
likely to remain low relative to the last few years, lead us to believe that the
modest restructuring put into place during the past fiscal year will be
beneficial to the long-term health of the fund.
(7.) Source: Standard & Poor's Creditweek Municipal, 12/04/94.
5
PERFORMANCE SUMMARY
As of May 1, 1995, your fund now offers two classes of shares, designated as
"Class I" and "Class II." Class I shares will continue to have the same pricing
structure, which is the standard front-end sales charge (with breakpoints) and
annual 12b-1 fees. Class II shares have a different pricing structure, with a
lower initial sales charge than Class I shares; however, they have higher annual
12b-1 Plan fees. Also, with certain exceptions, a contingent deferred sales
charge (back-end sales charge) will generally be assessed on Class II shares
redeemed within 18 months of a purchase. The different expenses borne by each
class of shares will result in different net asset values, dividends and,
ultimately, different total performance. Please see the prospectus for more
details regarding Class I and Class II shares.
The Franklin New York Tax-Free Income Fund's Class I share price, as measured by
net asset value, increased to $11.75 on May 31, 1995, from $11.72 on May 31,
1994. The fund's Class II share price, as measured by net asset value, was
$11.50 on May 1, 1995, the Class II share inception date, and ended the
reporting period at $11.73 on May 31, 1995.++
The fund continued to meet its investment objective of providing high current
income to its shareholders. For the one-year period ended May 31, 1995, your
fund's Class I shares paid monthly income distributions totaling 75.6 cents
($0.756) per share. The fund's Class II shares began distributing income on May
1, 1995, with a distribution totaling 6.3 cents ($0.063) 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 1 OMITTED - SEE APPENDIX AT END OF DOCUMENT
At the end of the reporting period, your fund's Class I shares distribution rate
was 6.16%, based on an annualization of the current monthly dividend of 6.3
cents ($0.063) per share and the maximum offering price of $12.27 on May 31,
1995. The Class II shares reported a distribution rate of 5.77%, based on the
annualization of the current monthly dividend of 5.7 cents per share and the
maximum offering price of $11.85 on May 31, 1995. These tax-free rates are
generally higher than the after-tax return on a comparable taxable investment.
For example, if you are in the maximum combined federal, New York state and New
York City personal income tax bracket of 46.9%, you would have to earn 11.60%
from a taxable investment to match your fund's Class I shares tax-free
distribution rate, and 10.87% to match your fund's Class II shares tax-free
distribution rate.
GRAPHIC MATERIAL 2 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Since 1985, your fund's performance has exceeded the Consumer Price Index (CPI),
keeping your purchasing power well ahead of inflation -- a primary goal of any
investment. The fund, however, has slightly underperformed the unmanaged
Lehman Brothers Municipal Bond Index, as illustrated by the chart to the right.
++ The fund paid a dividend to shareholders of record at the beginning of
business on May 1, 1995, in the amount of 6.3 cents ($0.063) per share. The
$11.50 net asset value price includes this dividend.
6
The index has some inherent performance differentials over any fund as it holds
no cash in its portfolio and involves no sales charges or management expenses.
In addition, the index includes municipal securities from across the country
while your fund is composed primarily of New York municipal bonds. Please
remember that an index is simply a measure of performance and cannot be invested
in directly.
Your fund's managers maintain a long-term investment perspective, and we
encourage our shareholders to view their investments in a similar manner. While
the fund may experience volatility from time to time, we believe that its
performance will be rewarding over the long term. For example, as the table to
the right illustrates, the fund provided a total return of over 221% since its
inception in 1982.
FRANKLIN NEW YORK TAX-FREE INCOME FUND
Periods ended May 31, 1995
</TABLE>
<TABLE>
<CAPTION>
Since Since
Inception Inception
1-Year 5-Year 10-Year (09/13/82) (05/01/95)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cumulative
Total Return(1)
Class I Shares 7.10% 52.13% 140.88% 221.04% ---
Class II Shares --- --- --- --- 2.56%
Average Annual
Total Return(2)
Class I Shares 2.55% 7.82% 8.71% 9.23% ---
Class II Shares --- --- --- --- 0.51%
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
Taxable Equivalent
Distribution Rate(3) Distribution Rate(4)
Class I Shares 6.16% Class I Shares 11.60%
Class II Shares 5.77% Class II Shares 10.87%
30-Day
Standardized Yield(5) Taxable Equivalent Yield(4)
Class I Shares 5.15% Class I Shares 9.70%
Class II Shares 4.93% Class II Shares 9.28%
- --------------------------------------------------------------------------------
</TABLE>
*This performance graph assumes an initial $10,000 investment and includes the
maximum 4.25% initial sales charge, all fund expenses and account fees. It also
assumes that your dividends and capital gains were reinvested at net asset
value. The Lehman Brothers Municipal Bond Index includes price appreciation or
depreciation as part of the original investment. Due to their recent inception,
Class II shares are not represented in the above illustration. Per SEC
guidelines, their performance is not yet sufficient for demonstration. Past
performance cannot guarantee future results.
(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 for Class I Shares, or the maximum 1.00% initial sales charge and 1.00%
Contingent Deferred Sales Charge (CDSC) for Class II Shares, applicable to
shares redeemed within the first 18 months of investment. See note below.
(2.) Average annual total return represents the average annual change in value
of an investment over the specified periods. The figures have been restated to
reflect the maximum 4.25% initial sales charge for Class I Shares, and the
maximum 1.00% initial sales charge and 1.00% CDSC for Class II Shares, assuming
redemption of shares within the first 18 months of investment. See note below.
(3.) Class I shares 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
$12.27 on May 31, 1995. Class II shares distribution rate is based on an
annualization of the fund's current 5.7 cent per share monthly dividend and the
maximum offering price of $11.85 on May 31, 1995.
(4.) Taxable equivalent distribution rate and yield assume the 1995 maximum
combined federal, New York state and New York City tax bracket of 46.9%, 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 5/31/95.
Note: Prior to July 1, 1994, fund shares were offered at a lower initial sales
charge, with dividends reinvested at the offering price. Thus, actual total
return for purchasers of shares during that period would have been different
than noted above. Effective May 1, 1994, the fund eliminated the sales charge on
reinvested dividends and implemented a plan of distribution under Rule 12b-1,
which will affect future performance. Class II shares, which the fund began
offering on May 1, 1995, are subject to different fees and expenses, which will
affect their performance. Please see the prospectus for more details regarding
Class I and Class II shares.
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 cannot guarantee future results.
7
ANNUAL MEETING OF SHAREHOLDERS
Franklin New York Tax-Free Income Fund, Inc., May 31, 1995
At an annual meeting of shareholders of the Fund held on March 7, 1995,
shareholders of the Fund voted as follows: Regarding the election of the
nominees for directors, shareholders of the Fund voted as follows:
<TABLE>
<CAPTION>
Director For Withhold
<S> <C> <C>
Harris J. Ashton 254,369,273 10,058,798
S. Joseph Fortunato 254,317,735 10,110,335
Charles B. Johnson 254,302,620 10,125,450
Rupert H. Johnson, Jr. 254,261,605 10,166,465
Gordon S. Macklin 254,353,439 10,074,632
</TABLE>
Regarding the selection of Coopers & Lybrand L.L.P., Certified Public
Accountants, as the independent auditors for the Fund for the fiscal year ending
May 31, 1995, the proposal was approved by the shareholders and the vote was as
follows:
<TABLE>
<CAPTION>
For Against Abstain
<C> <C> <C>
252,746,844 1,823,432 9,857,794
</TABLE>
Regarding an amendment to the Fund's Articles of Incorporation to permit the
issuance of additional classes of shares and to make other conforming changes,
the proposal was approved by shareholders and the vote was as follows:
<TABLE>
<CAPTION>
Broker
For Against Abstain Non-Vote
<C> <C> <C> <C>
205,443,811 12,127,212 16,701,220 30,155,827
</TABLE>
8
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC., MAY 31, 1995
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS 96.6%
$ 1,610,000 Albany Parking Authority Revenue, Refunding, Series A, 6.85%, 11/01/12 ................... $ 1,696,377
6,100,000 Auburn IDA, MFR, Auburn Memorial Home, 6.50%, 02/01/34 ................................... 6,235,237
Babylon IDA, Resource Recovery Revenue, Ogden Martin System, Inc.,
8,090,000 Series A, 8.50%, 01/01/19 ............................................................. 8,879,503
4,290,000 Series B, 8.50%, 01/01/19 ............................................................. 4,708,661
2,845,000 Series C, 8.50%, 01/01/19 ............................................................. 3,122,644
10,750,000 Babylon IDA, Waste Facilities Revenue, Community Waste Management, Series A, Pre-Refunded,
7.875%, 07/01/06 ....................................................................... 12,241,885
1,000,000 Batavia Housing Authority Mortgage Revenue, Refunding, Washington Towers, Series A, 6.50%,
01/01/23................................................................................ 1,020,660
89,045,000 Battery Park City Authority Revenue, Refunding, Series A, 5.80%, 11/01/22 ................ 85,962,262
8,160,000 Bethany Retirement Home, Inc., Mortgage Loan Revenue, 7.50%, 02/01/34 .................... 9,317,904
1,440,000 Cattaraugus County COP, Olean Project Facility, Series A, Pre-Refunded, 8.50%, 08/01/09 .. 1,635,494
5,375,000 Clinton County COP, Correctional Facilities Project, 8.125%, 08/01/17 .................... 6,456,826
6,400,000 Cortland County IDA, Civic Facilities Revenue, Cortland Memorial Hospital, Inc. Project,
6.25%, 07/01/24 ........................................................................ 6,348,736
5,730,000 Franklin County COP, Court House Redevelopment Project, 8.125%, 08/01/06 ................. 6,396,856
4,790,000 Franklin County IDA, Lease Revenue, County Correctional Facilities Project, 6.75%,
11/01/12................................................................................ 5,002,868
Glen Cove, Refunding,
200,000 Series 1993, 5.90%, 01/15/07 .......................................................... 198,824
190,000 Series 1993, 5.95%, 01/15/08 .......................................................... 188,822
185,000 Series 1993, 6.00%, 01/15/09 .......................................................... 183,629
Guam Power Authority Revenue,
4,550,000 Series A, 6.30%, 10/01/12 ............................................................. 4,590,905
2,900,000 Series A, 6.625%, 10/01/14 ............................................................ 2,994,047
45,340,000 Series A, 6.30%, 10/01/22 ............................................................. 45,429,773
25,500,000 Series A, 6.75%, 10/01/24 ............................................................. 26,373,630
1,405,000 Hamilton Elderly Housing Corp. Mortgage Revenue, Hamilton Apartments Project, 11.25%,
01/01/15 .............................................................................. 1,503,111
1,915,000 Ilion Elderly Housing Corp. Mortgage Revenue, Section 8, Housing Assistance Revenue,
7.25%, 07/01/09 ....................................................................... 1,915,364
1,380,000 Lincoln Towers Housing Corp. Mortgage Revenue, Lincoln Towers Project, 11.25%, 01/01/15 .. 1,459,571
5,045,000 Livingston County IDA, PCR, General Foods Manufacturing Corp., 8.875%, 08/01/05 .......... 5,227,074
Metropolitan Transportation Authority, Commuter Facilities Revenue,
33,120,000 Series A, 6.50%, 07/01/24 ............................................................. 34,092,403
525,000 Series G, Pre-Refunded, 8.50%, 07/01/11 ............................................... 559,298
17,450,000 Series H, Pre-Refunded, 8.50%, 07/01/11 ............................................... 18,590,009
Metropolitan Transportation Authority, Service Contract Revenue,
12,255,000 Commuter Facilities, 6.00%, 07/01/21 .................................................. 12,222,278
4,235,000 Commuter Facilities, Series 3, 6.00%, 07/01/19 ........................................ 4,202,814
2,790,000 Commuter Facilities, Series 4, Pre-Refunded, 8.00%, 07/01/08 .......................... 3,250,238
31,605,000 Commuter Facilities, Series 5, 7.00%, 07/01/12 ........................................ 34,016,778
12,950,000 (a)Commuter Facilities, Series 6, 6.00%, 07/01/21 ........................................ 12,781,262
8,825,000 Commuter Facilities, Series O, 5.75%, 07/01/13 ........................................ 8,630,762
3,000,000 Commuter Facilities, Series O, 5.75%, 07/01/13 ........................................ 2,933,970
6,000,000 Commuter Facilities, Series P, 5.75%, 07/01/15 ........................................ 5,785,380
24,160,000 Refunding, Commuter Facilities, Series N, 7.125%, 07/01/09 ............................ 26,403,981
35,695,000 Refunding, Series 5, 6.50%, 07/01/16 .................................................. 36,752,286
1,000,000 Refunding, Series 5, 6.00%, 07/01/18 .................................................. 992,540
30,935,000 Refunding, Transit Facilities, Series 5, 7.00%, 07/01/12 .............................. 33,295,650
17,470,000 Refunding, Transit Facilities, Series 5, 6.50%, 07/01/16 .............................. 17,987,461
7,725,000 Refunding, Transit Facilities, Series 5, 6.00%, 07/01/18 .............................. 7,667,372
12,625,000 Refunding, Transit Facilities, Series N, 7.125%, 07/01/09 ............................. 13,797,610
11,250,000 Refunding, Transit Facilities, Series N, 6.00%, 07/01/11 .............................. 11,274,975
2,050,000 Transit Facilities, Series 4, Pre-Refunded, 8.00%, 07/01/08 ........................... 2,388,168
2,000,000 Transit Facilities, Series 6, 7.00%, 07/01/09 ......................................... 2,152,620
Metropolitan Transportation Authority, Transit Facilities Revenue,
750,000 Series F, Pre-Refunded, 8.375%, 07/01/05 .............................................. 798,030
10,650,000 Series H, Pre-Refunded, 8.50%, 07/01/05 ............................................... 11,345,765
28,540,000 Series H, Pre-Refunded, 8.50%, 07/01/11 ............................................... 30,404,517
6,400,000 Series O, MBIA Insured, 6.00%, 07/01/24 ............................................... 6,482,240
Monroe County IDAR, Civic Facilities,
1,285,000 De Paul Community Facilities, 6.50%, 02/01/24 ......................................... 1,345,189
6,125,000 Genesee Hospital, Series A, 7.00%, 11/01/18 ........................................... 6,229,186
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS CONTINUED
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC., MAY 31, 1995
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
NEW YORK CITY GO,
$ 2,420,000 Series 1985-B, Pre-Refunded, 9.625%, 10/01/08 ......................................... $ 2,510,363
335,000 Series 1986-D, 8.50%, 08/01/02 ........................................................ 353,542
5,000,000 Series 1986-D, 7.00%, 02/01/12 ........................................................ 5,127,100
125,000 Series 1986-D, 8.50%, 08/01/14 ........................................................ 131,185
730,000 Series 1986-D, 8.50%, 08/01/15 ........................................................ 765,201
360,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/02 .......................................... 384,329
340,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/02 .......................................... 362,977
1,570,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/11 .......................................... 1,676,101
80,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/11 .......................................... 83,930
345,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/13 .......................................... 362,071
2,375,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/14 .......................................... 2,535,503
3,220,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/16 .......................................... 3,437,608
175,000 Series 1986-D, Pre-Refunded, 8.50%, 08/01/16 .......................................... 183,439
2,900,000 Series 1987-A, Pre-Refunded, 8.50%, 11/01/12 .......................................... 3,218,913
2,115,000 Series 1987-A, Pre-Refunded, 8.75%, 11/01/14 .......................................... 2,354,397
1,180,000 Series 1987-D, 8.50%, 08/01/08 ........................................................ 1,264,252
1,055,000 Series 1987-D, 8.50%, 08/01/09 ........................................................ 1,131,434
1,395,000 Series 1987-D, 8.50%, 08/01/10 ........................................................ 1,496,068
5,720,000 Series 1987-D, Pre-Refunded, 8.50%, 08/01/08 .......................................... 6,314,708
5,330,000 Series 1987-D, Pre-Refunded, 8.50%, 08/01/09 .......................................... 5,884,160
6,815,000 Series 1987-D, Pre-Refunded, 8.50%, 08/01/10 .......................................... 7,523,556
4,000,000 Series 1990-B, 7.00%, 06/01/13 ........................................................ 4,148,120
6,725,000 Series 1990-B, 7.00%, 06/01/14 ........................................................ 6,974,027
4,250,000 Series 1990-B, 7.00%, 06/01/15 ........................................................ 4,472,870
2,000,000 Series 1991-A, 7.75%, 08/15/13 ........................................................ 2,156,220
10,000,000 Series 1991-A, 7.75%, 08/15/14 ........................................................ 10,781,100
1,400,000 Series 1991-A, 7.75%, 08/15/15 ........................................................ 1,509,354
2,000,000 Series 1991-B, 7.75%, 02/01/10 ........................................................ 2,171,780
5,000,000 Series 1991-B, 7.75%, 02/01/11 ........................................................ 5,429,450
500,000 Series 1991-B, 7.75%, 02/01/12 ........................................................ 542,945
1,875,000 Series 1991-B, 7.75%, 02/01/13 ........................................................ 2,028,619
10,950,000 Series 1991-B, 7.75%, 02/01/14 ........................................................ 11,847,134
22,610,000 Series 1991-B, 7.75%, 02/01/15 ........................................................ 24,462,437
1,485,000 Series 1991-B, 7.00%, 02/01/18 ........................................................ 1,543,301
3,615,000 Series 1991-B, Pre-Refunded, 8.00%, 08/01/17 .......................................... 4,279,762
110,000 Series 1991-D, 8.25%, 08/01/13 ........................................................ 121,910
65,000 Series 1991-D, 8.00%, 08/01/17 ........................................................ 71,220
4,710,000 Series 1991-D, Pre-Refunded, 8.25%, 08/01/13 .......................................... 5,638,340
7,500,000 Series 1991-F, 8.40%, 11/15/08 ........................................................ 8,470,350
3,350,000 Series 1991-F, 8.40%, 11/15/09 ........................................................ 3,770,090
1,500,000 Series 1992-B, 6.75%, 10/01/15 ........................................................ 1,536,225
4,500,000 Series 1992-C, Sub-Series C, 7.00%, 08/01/16 .......................................... 4,684,275
2,500,000 Series 1992-D, 7.50%, 02/01/18 ........................................................ 2,671,400
10,000,000 Series 1992-H, 7.20%, 02/01/13 ........................................................ 10,523,900
4,000,000 Series 1992-H, 7.20%, 02/01/14 ........................................................ 4,209,560
4,600,000 Series 1992-H, 7.20%, 02/01/15 ........................................................ 4,840,994
2,500,000 Series 1992-H, 7.00%, 02/01/16 ........................................................ 2,598,150
6,500,000 Series 1992-H, 7.00%, 02/01/17 ........................................................ 6,755,190
4,225,000 Series 1992-H, 7.00%, 02/01/18 ........................................................ 4,390,874
12,750,000 Series 1992, Rite-1, 7.00%, 10/01/11 .................................................. 13,342,748
2,000,000 Series 1994-B, Sub-Series B-1, 7.00%, 08/15/16 ........................................ 2,093,340
10,000,000 Series 1994-B, Sub-Series B-1, 7.50%, 08/15/20 ........................................ 10,810,000
4,000,000 Series 1995-C, 7.20%, 08/15/14 ........................................................ 4,160,880
22,745,000 Series 1995-C, 7.25%, 08/15/24 ........................................................ 23,681,867
5,000,000 Series 1995-F, 6.25%, 02/15/25 ........................................................ 5,078,650
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS CONTINUED
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC., MAY 31, 1995
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
NEW YORK CITY HDC, MFMR,
$ 19,450,000 Series A, 6.55%, 10/01/15 ............................................................ $ 19,971,455
10,000,000 Series A, 6.55%, 04/01/18 ............................................................. 10,231,200
26,795,000 Series A, 5.85%, 05/01/26 ............................................................. 26,084,128
51,500,000 Series A, 6.60%, 04/01/30 ............................................................. 52,498,585
1,500,000 Series I, FGIC Insured, 8.50%, 05/01/07 ............................................... 1,551,045
114,635,000 New York City Health and Hospital Authority, Local Government Revenue, Refunding,
Series A, 6.30%, 02/15/20 ............................................................. 109,121,057
New York City IDA, Civic Facilities Revenue,
2,765,000 Federation Protestant Welfare, 6.95%, 11/01/11 ........................................ 2,897,112
4,000,000 New York Blood Center, Inc. Project, 7.20%, 05/01/12 .................................. 4,297,280
7,000,000 New York Blood Center, Inc. Project, 7.25%, 05/01/22 .................................. 7,535,640
2,500,000 St. Christopher Ottilie Project, 7.50%, 07/01/21 ...................................... 2,564,000
8,000,000 The Lighthouse, Inc. Project, 6.50%, 07/01/22 ......................................... 8,197,520
New York City Municipal Water Finance Authority, Water and Sewer System Revenue,
74,215,000 Refunding, Series A, 6.00%, 06/15/17 .................................................. 74,985,352
10,610,000 Refunding, Series A, 5.50%, 06/15/20 .................................................. 10,124,911
6,660,000 Series 1987-A, BIG Insured, Pre-Refunded, 8.75%, 06/15/10 ............................. 7,366,693
5,000,000 Series 1989-A, 6.00%, 06/15/19 ........................................................ 5,017,550
2,185,000 Series 1991-A, 7.00%, 06/15/15 ........................................................ 2,364,476
3,010,000 Series 1991-A, 6.75%, 06/15/16 ........................................................ 3,195,326
36,850,000 Series 1991-A, 6.75%, 06/15/17 ........................................................ 39,118,855
15,700,000 Series 1991-A, Pre-Refunded, 7.10%, 06/15/12 .......................................... 17,774,755
1,570,000 Series 1991-A, Pre-Refunded, 7.00%, 06/15/15 .......................................... 1,769,326
4,210,000 Series 1991-C, AMBAC Insured, 6.50%, 06/15/21 ......................................... 4,330,574
13,185,000 Series 1992-B, 6.50%, 06/15/20 ........................................................ 13,838,053
37,250,000 Series 1992-B, 6.375%, 06/15/22 ....................................................... 38,719,513
17,785,000 Series 1994-A, 7.10%, 06/15/12 ........................................................ 19,383,516
2,215,000 Series 1994-A, Pre-Refunded, 7.10%, 06/15/12 .......................................... 2,507,712
690,000 Series 1994-A, Pre-Refunded, 7.00%, 06/15/15 .......................................... 777,602
New York Housing Corp. Revenue,
5,000,000 Series A, MBIA Insured, Pre-Refunded, 8.625%, 11/01/06 ................................ 5,586,600
70,065,000 Series A, Pre-Refunded, 9.00%, 11/01/17 ............................................... 78,878,476
New York State COP,
3,800,000 City University, John Jay College, 7.25%, 08/15/07 .................................... 3,974,610
2,500,000 Commissioner Office Mental Health, 8.25%, 09/01/07 .................................... 2,709,150
1,750,000 Commissioner Office Mental Health, 8.30%, 09/01/12 .................................... 1,900,955
6,575,000 Hanson Redevelopment Project, 8.25%, 11/01/01 ......................................... 7,328,890
18,045,000 Hanson Redevelopment Project, 8.375%, 05/01/08 ........................................ 20,778,818
New York State Dormitory Authority Revenue,
1,650,000 City University System Consolidated, Series A, 6.50%, 07/01/14 ........................ 1,658,811
26,605,000 City University System Consolidated, Series A, 6.50%, 07/01/15 ........................ 26,733,502
8,200,000 City University System Consolidated, Series A, 6.00%, 07/01/16 ........................ 8,160,722
13,040,000 City University System Consolidated, Series A, 6.50%, 07/01/16 ........................ 13,102,983
14,900,000 City University System Consolidated, Series C, 7.50%, 07/01/10 ........................ 17,371,463
3,430,000 City University System Consolidated, Series D, 7.00%, 07/01/09 ........................ 3,821,911
10,970,000 City University System Consolidated, Series E, 7.75%, 07/01/17 ........................ 11,202,235
73,320,000 City University System Consolidated, Series F, Pre-Refunded, 7.875%, 07/01/17 ......... 85,043,135
1,000,000 Crouse Irving Memorial Hospital, HIBI Insured, 10.50%, 07/01/17 ....................... 1,021,990
11,520,000 Court Facilities Lease, Series A, 5.70%, 05/15/22 ..................................... 10,928,218
2,530,000 Department of Education, 7.75%, 07/01/21 .............................................. 2,839,799
14,725,000 Department of Health, 6.20%, 07/01/17 ................................................. 14,865,035
5,355,000 Department of Health, Rosewell Park Cancer, 6.625%, 07/01/15 .......................... 5,620,394
9,175,000 Department of Health, Rosewell Park Cancer, 6.625%, 07/01/24 .......................... 9,629,713
3,190,000 Department of Health, Veterans Home, 7.25%, 07/01/11 .................................. 3,487,499
8,480,000 Department of Health, Veterans Home, 6.25%, 07/01/20 .................................. 8,580,742
9,775,000 Department of Health, Veterans Home, 7.25%, 07/01/21 .................................. 10,592,190
2,115,000 Fashion Institute of Technology, 7.50%, 07/01/20 ...................................... 2,298,540
2,355,000 Genessee Valley, Series A, 6.90%, 02/01/32 ............................................ 2,519,096
2,445,000 Heritage House Nursing Center, 7.00%, 08/01/31 ........................................ 2,678,375
14,355,000 Long Island Jewish Medical Center, Series A, 7.75%, 08/15/27 .......................... 15,484,595
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS CONTINUED
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC., MAY 31, 1995
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
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<S> <C> <C>
BONDS (CONT.)
New York State Dormitory Authority Revenue, (cont.)
$ 5,375,000 New York Medical College, Asset Guaranty, 6.875%, 07/01/21 ............................ $ 5,742,489
5,835,000 Our Lady of Mercy, FHA Insured, Mortgage Revenue, 6.30%, 08/01/32 ..................... 6,018,452
5,000,000 Refunding, City University, 7.625%, 07/01/14 .......................................... 5,277,650
2,000,000 Refunding, City University, Series C, 8.20%, 07/01/14 ................................. 2,248,860
2,885,000 Refunding, City University, Series U, 6.375%, 07/01/08 ................................ 2,973,886
5,405,000 Refunding, City University, Series U, 6.70%, 07/01/09 ................................. 5,712,707
19,390,000 Refunding, Manhattan College, 6.50%, 07/01/19 ......................................... 20,031,809
2,970,000 Refunding, State University Educational Facilities, Series B, 6.00%, 05/15/17 ......... 2,955,506
2,565,000 State University Athletic Facilities, 7.25%, 07/01/12 ................................. 2,800,057
4,750,000 State University Athletic Facilities, 7.25%, 07/01/21 ................................. 5,159,830
4,000,000 State University Educational Facilities, Series A, Pre-Refunded, 7.125%, 05/15/17 ..... 4,449,800
7,025,000 State University Educational Facilities, Series B, 7.35%, 05/15/14 .................... 7,663,151
7,995,000 State University Educational Facilities, Series B, 7.00%, 05/15/16 .................... 8,500,764
18,190,000 State University Educational Facilities, Series B, 6.25%, 05/15/20 .................... 18,375,538
3,500,000 State University Educational Facilities, Series B, 5.75%, 05/15/24 .................... 3,334,275
2,000,000 State University Educational Facilities, Series C, 6.125%, 05/15/20 ................... 2,002,840
4,000,000 The Highlands Living, 6.60%, 02/01/34 ................................................. 4,146,560
3,250,000 Upstate Community Colleges, Series A, Pre-Refunded, 7.60%, 07/01/20 ................... 3,729,700
1,000,000 Upstate Community Colleges, Series B, Pre-Refunded, 7.20%, 07/01/21 ................... 1,145,670
New York State Energy Research and Development Authority, Gas Facilities Revenue,
24,135,000 Brooklyn Union Gas Co. Project, 9.00%, 05/15/15 ....................................... 25,061,060
4,010,000 Brooklyn Union Gas Co. Project, 8.75%, 07/01/15 ....................................... 4,100,506
2,390,000 Brooklyn Union Gas Co. Project, Series 1, 7.125%, 12/01/20 ............................ 2,511,388
8,400,000 Brooklyn Union Gas Co. Project, Series II, 7.00%, 12/01/20 ............................ 8,811,852
New York State Energy Research and Development Authority, PCR,
3,300,000 Long Island Projects, 7.80%, 12/01/09 ................................................. 3,321,515
5,000,000 Long Island Projects, Series A, 7.50%, 12/01/06 ....................................... 5,013,550
38,145,000 Niagara Mohawk Power Corp. Project, Series 1, 8.875%, 11/01/25 ........................ 39,545,684
11,420,000 Orange and Rockland Utilities, Inc. Project, 9.00%, 08/01/15 .......................... 11,715,892
New York State Environmental Facilities Corp., Special Obligation,
3,000,000 PCR, New York City Municipal Water Finance Authority Project, Series E, 6.875%,
06/15/14 ............................................................................ 3,324,600
4,000,000 Riverbank State Park, 7.25%, 04/01/07 ................................................. 4,306,040
4,300,000 Riverbank State Park, 7.25%, 04/01/12 ................................................. 4,616,523
28,525,000 Riverbank State Park, 7.375%, 04/01/22 ................................................ 30,655,532
4,500,000 Water Facilities Revenue, Jamaica Water Supply Co. Project, 10.875%, 12/01/14 ......... 4,657,185
New York State HFA,
2,425,000 Henry Phipps Plaza, West Urban Project, Section 236, 8.00%, 05/01/18 .................. 2,486,838
1,295,000 Urban Rentals, Series A, 8.25%, 11/01/19 .............................................. 1,338,318
New York State HFA, Service Contract Obligation Revenue,
2,500,000 Refunding, Series C, 6.30%, 09/15/12 .................................................. 2,552,450
43,275,000 Refunding, Series C, 5.875%, 09/15/14 ................................................. 42,415,126
12,590,000 Refunding, Series C, 6.00%, 09/15/21 .................................................. 12,424,693
24,000,000 Series 1990-A, Pre-Refunded, 7.80%, 09/15/20 .......................................... 27,996,000
37,310,000 Series 1991-A, Pre-Refunded, 7.80%, 09/15/20 .......................................... 43,872,083
2,375,000 Series 1992-A, 7.25%, 09/15/12 ........................................................ 2,612,999
28,370,000 Series 1992-C, 6.30%, 03/15/22 ........................................................ 28,663,913
8,890,000 Series 1993-A, 5.875%, 09/15/14 ....................................................... 8,713,355
93,260,000 Series 1993-C, 6.125%, 03/15/20 ....................................................... 93,425,070
28,330,000 Series 1994-A, 6.50%, 03/15/24 ........................................................ 29,124,090
New York State HFAR,
5,285,000 Children's Rescue Fund Housing, Series A, 7.625%, 05/01/18 ............................ 5,598,083
2,045,000 FHA Insured, Adult Care Center, Series A, 7.85%, 02/15/30 ............................. 2,242,343
4,245,000 MF Housing, Second Mortgage, Series A, 7.00%, 08/15/23 ................................ 4,457,208
2,500,000 MF Housing, Second Mortgage, Series D, 6.25%, 08/15/23 ................................ 2,506,625
5,500,000 MF Housing, Second Mortgage, Series D, 6.60%, 08/15/27 ................................ 5,643,440
7,250,000 MF Housing, Second Mortgage, Series E, 6.75%, 08/15/25 ................................ 7,520,135
1,820,000 MF Mortgage, AMBAC Insured, Series 1994-A, 6.35%, 02/15/23 ............................ 1,853,342
34,515,000 MF Mortgage, AMBAC Insured, Series 1994-B, 6.35%, 08/15/23 ............................ 35,147,315
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS CONTINUED
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC., MAY 31, 1995
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
New York State Hfar, (cont.)
$ 2,760,000 MF Mortgage, AMBAC Insured, Series B, 6.25%, 08/15/14 ................................. $ 2,810,839
12,575,000 MF Mortgage, FHA Insured, Series 1985-B, 8.50%, 05/15/28 .............................. 12,924,459
8,630,000 MF Mortgage, FHA Insured, Series 1991-A, 7.10%, 08/15/35 .............................. 9,031,640
4,885,000 MF Mortgage, FHA Insured, Series 1992-A, 7.00%, 08/15/22 .............................. 5,151,526
6,870,000 MF Mortgage, FHA Insured, Series 1992-C, 6.50%, 08/15/24 .............................. 7,007,057
1,000,000 Refunding, MF Mortgage, FHA Insured, Series 1992-C, 6.45%, 08/15/14 ................... 1,023,520
96,650,000 Refunding, New York City Health Facilities, Series A, 8.00%, 11/01/08 ................. 109,434,862
New York State Local Government Assistance Corp.,
10,120,000 Series 1991-B, 6.50%, 04/01/20 ........................................................ 10,669,516
39,935,000 Series 1991-C, 6.50%, 04/01/15 ........................................................ 41,633,835
8,750,000 Series 1992-A, 6.875%, 04/01/19 ....................................................... 9,582,913
11,195,000 Series 1992-B, 6.00%, 04/01/18 ........................................................ 11,323,630
20,125,000 Series 1992-B, 6.25%, 04/01/21 ........................................................ 20,629,333
42,260,000 Series 1992-C, 6.25%, 04/01/18 ........................................................ 43,319,036
16,000,000 Series 1995-A, 6.00%, 04/01/24 ........................................................ 16,228,320
New York State Medical Care Facilities Finance Agency,
43,465,000 Albany Medical Center, Alice Hyde Project, FHA Insured, Mortgage Revenue, Pre-
Refunded, Series A, 8.00%, 02/15/28 ................................................. 49,131,532
3,500,000 Buffalo General Hospital, FHA Insured, Mortgage Revenue, Series C, Pre-Refunded,
7.70%, 02/15/22 ..................................................................... 3,928,645
22,150,000 Catholic Medical Center of Brooklyn and Queens, Inc., FHA Insured, Mortgage Revenue,
Series A, Pre-Refunded, 8.30%, 2/15/22 ............................................. 24,782,085
9,060,000 FHA Insured, Mortgage Revenue, Series B, 6.15%, 02/15/25 .............................. 9,233,046
4,900,000 FHA Insured, Mortgage Revenue, Series B, 6.15%, 02/15/35 .............................. 4,972,912
6,415,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series A, 6.125%, 02/15/15 .. 6,524,119
8,330,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series A, 6.20%, 02/15/21 ... 8,565,073
9,000,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series A, 6.30%, 08/15/23 ... 9,356,040
12,235,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series A, 6.25%, 02/15/27 ... 12,579,415
25,160,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series A, 6.20%, 02/15/28 ... 25,745,473
28,750,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series A, 7.45%, 08/15/31 ... 31,493,038
7,940,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series A, 6.375%, 08/15/33 .. 8,178,994
7,650,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series B, 10.50%, 01/15/24 .. 7,732,467
12,405,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series B, 8.875%, 08/15/27 .. 13,680,481
24,000,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series B, 6.95%, 02/15/32 ... 25,623,840
1,805,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series B, Pre-Refunded,
9.125%, 02/15/25..................................................................... 1,856,912
33,220,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series B, Pre-Refunded,
8.00%, 02/15/28...................................................................... 36,687,836
8,000,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series C, 6.50%, 08/15/21 ... 8,435,120
2,610,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series C, 9.00%, 02/15/26 ... 2,684,359
78,865,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series C, 6.375%, 08/15/29 .. 81,427,324
15,000,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series C, 6.65%, 08/15/32 ... 15,700,800
13,375,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series D, 6.60%, 02/15/31 ... 14,056,858
55,500,000 Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series D, 6.45%, 02/15/32 ... 58,013,595
11,670,000 Hospital and Nursing Home, FSA Insured, Mortgage Revenue, Series A, 6.50%, 02/15/34 ... 12,161,540
5,500,000 Hospital and Nursing Home, Methodist Medical Center, FHA Insured, Series A, 6.70%,
08/15/23............................................................................. 5,852,165
3,200,000 Hospital Mortgage, AMBAC Insured, Series A, 6.80%, 08/15/24 ........................... 3,474,208
5,125,000 Hospital Mortgage, AMBAC Insured, Series A, 6.50%, 08/15/29 ........................... 5,412,513
31,210,000 Hospital Mortgage, AMBAC Insured, Series A, 6.90%, 08/15/34 ........................... 33,870,340
4,000,000 Huntington Hospital Mortgage, Refunding, Project A, 6.50%, 11/01/14 ................... 4,057,520
68,050,000 Long Island College Hospital, FHA Insured, Mortgage Revenue, Series B, Pre-Refunded,
8.10%, 02/15/22...................................................................... 75,794,090
2,670,000 Medina Memorial Hospital Project, Series A, 7.30%, 05/01/11 ........................... 2,910,914
64,110,000 Mental Health Services Facilities, Series A, 8.875%, 08/15/07.......................... 70,512,024
7,405,000 Mental Health Services Facilities, Series A, 7.70%, 02/15/18 .......................... 7,955,340
57,100,000 Mental Health Services Facilities, Series A, Pre-Refunded, 8.875%, 08/15/07............ 63,689,340
2,210,000 Mercy Community Hospital Project, Sisters of Mercy, Series A, 9.80%, 11/01/16 ......... 2,253,206
7,185,000 Montefiore Medical Center, AMBAC Insured, Series A, 5.75%, 02/15/25 ................... 7,083,620
9,000,000 Montefiore Medical Center, AMBAC Insured, Series A, 6.00%, 02/15/35 ................... 9,089,370
3,800,000 Mortgage Revenue Project, Series A, 6.50%, 02/15/35 ................................... 3,928,820
23,775,000 Mortgage Revenue Project, Series B, 6.60%, 08/15/34 ................................... 24,942,353
10,200,000 Mortgage Revenue Project, Series C, 6.375%, 08/15/29 .................................. 10,405,224
5,380,000 North General Hospital, Series 1989-A, 7.35%, 08/15/09 ................................ 5,704,145
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS CONTINUED
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC., MAY 31, 1995
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
New York State Medical Care Facilities Finance Agency,
$ 9,145,000 Refunding, Beth Israel Medical Center Project, Series A, 7.20%, 11/01/14 .............. $ 9,406,638
72,200,000 Refunding, Columbia Presbyterian Hospital, FHA Insured, Mortgage Revenue, Series A,
Pre-Refunded, 8.00%, 02/15/25 ....................................................... 79,223,615
10,730,000 Refunding, FHA Insured, Mortgage Hospital, Series A, 7.25%, 02/15/12 .................. 11,328,949
1,185,000 Refunding, Good Samaritan Hospital Project Revenue, Series A, 8.00%, 11/01/13 ......... 1,279,539
5,050,000 Refunding, Hospital and Nursing Home, FHA Insured, Mortgage Revenue, Series A, 6.20%,
02/15/23 ............................................................................ 5,182,512
17,700,000 Refunding, Hospital and Nursing Home, Series B, 6.20%, 08/15/22 ....................... 18,146,217
5,000,000 Refunding, Hospital and Nursing Home, Series B, 6.125%, 08/15/24 ...................... 5,086,550
4,005,000 Refunding, John T. Mather Memorial Hospital Project, 7.00%, 11/01/15 .................. 4,120,024
6,400,000 Refunding, Nyack Hospital Project Revenue, Series A, 8.30%, 11/01/13 .................. 6,979,648
9,900,000 Refunding, Vassar Brothers Hospital Project Revenue, Series A, 8.25%, 11/01/13 ........ 10,656,360
1,665,000 Saranac Lake General Hospital Project Revenue, Series A, 7.875%, 11/01/10 ............. 1,847,800
1,500,000 Second Mortgage, Health Care Project Revenue, Series B, 6.35%, 11/01/14 ............... 1,566,150
62,770,000 Secured Hospital Revenue, Bronx, Lebanon and The Jamaica Hospital, Series A, 7.10%,
02/15/27 ............................................................................ 64,516,261
72,180,000 Secured Hospital Revenue, North General Hospital, Series A, 7.40%, 02/15/19 ........... 76,276,215
22,150,000 Secured Hospital Revenue, Series A, 7.35%, 08/15/11 ................................... 23,587,978
55,225,000 Secured Hospital Revenue, Series A, 7.40%, 08/15/21 ................................... 58,912,373
15,780,000 Secured Hospital Revenue, Series A, 6.25%, 02/15/24 ................................... 15,208,448
32,450,000 St. Vincent's Hospital, FHA Insured, Mortgage Revenue, Series A, Pre-Refunded, 8.00%,
02/15/27 ............................................................................ 35,535,022
36,650,000 The Hospital for Special Surgery Revenue, Series A, 6.45%, 08/15/34 ................... 38,006,050
New York State Mortgage Agency, HMR,
285,000 5th Series, 9.75%, 10/01/10 ........................................................... 295,086
70,000 7th Series, 8.50%, 10/01/04 ........................................................... 71,597
815,000 7th Series, 8.625%, 04/01/11 .......................................................... 834,258
9,670,000 8th Series C, 8.40%, 10/01/17 ......................................................... 10,139,382
6,235,000 8th Series D, 8.375%, 10/01/17 ........................................................ 6,582,352
4,885,000 8th Series E, 8.10%, 10/01/17 ......................................................... 5,162,810
3,975,000 10th Series A, 8.10%, 04/01/14 ........................................................ 4,214,732
17,250,000 29th Series B, 6.45%, 04/01/15 ........................................................ 17,737,140
6,225,000 37th Series A, 6.375%, 10/01/14 ....................................................... 6,380,501
9,000,000 37th Series A, 6.45%, 10/01/17 ........................................................ 9,242,010
6,560,000 Series BB-2, 7.95%, 10/01/15 .......................................................... 6,883,802
3,405,000 Series EE-1, 8.05%, 04/01/16 .......................................................... 3,649,240
2,835,000 Series FF, 7.95%, 10/01/14 ............................................................ 2,983,696
13,890,000 Series OO, 8.05%, 10/01/11 ............................................................ 15,078,428
14,650,000 Series RR, 7.75%, 10/01/17 ............................................................ 15,723,259
New York State Mortgage Agency Revenue,
13,685,000 8th Series A, 6.875%, 04/01/17 ........................................................ 13,964,585
5,000,000 Homeowners Mortgage, Series 27, 6.90%, 04/01/15 ....................................... 5,276,050
8,945,000 Homeowners Mortgage, Series 39, 6.00%, 10/01/17 ....................................... 8,933,103
9,880,000 Homeowners Mortgage, Series 41-A, 6.50%, 10/01/17 ..................................... 10,184,798
3,800,000 Homeowners Mortgage, Series 43, MBIA Insured, 6.45%, 10/01/17 ......................... 3,900,320
23,730,000 Homeowners Mortgage, Series 45, 7.20%, 10/01/17 ....................................... 25,586,635
27,060,000 Homeowners Mortgage, Series 47, 6.375%, 10/01/17 ...................................... 27,650,990
5,000,000 New York State Tollway Authority, Highway and Bridge Trust Fund, Series A, 6.00%,
04/01/14 .............................................................................. 5,051,000
New York State Tollway Authority, Service Contract Revenue,
1,300,000 Local Highway and Bridge, 7.25%, 01/01/10 ............................................. 1,405,482
12,630,000 Local Highway and Bridge, 6.20%, 04/01/10 ............................................. 12,887,905
23,700,000 Local Highway and Bridge, 6.00%, 01/01/11 ............................................. 23,720,856
21,865,000 Local Highway and Bridge, 6.375%, 04/01/12 ............................................ 22,327,226
3,000,000 Local Highway and Bridge, 5.875%, 04/01/14 ............................................ 2,931,300
1,500,000 New York State Urban Development Corp. Revenue, Syracuse University Center, 7.875%,
01/01/17 .............................................................................. 1,612,065
Niagara Falls GO, Public Improvement,
805,000 Refunding, Pre-Refunded, 8.15%, 04/01/04 .............................................. 881,176
790,000 Refunding, Pre-Refunded, 8.15%, 04/01/05 .............................................. 864,758
775,000 Refunding, Pre-Refunded, 8.15%, 04/01/06 .............................................. 848,338
755,000 Refunding, Pre-Refunded, 8.15%, 04/01/07 .............................................. 826,446
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/04 ............................................... 1,115,980
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/05 ............................................... 1,115,980
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS CONTINUED
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC., MAY 31, 1995
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS (CONT.)
Niagara Falls GO, Public Improvement,
$ 1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/06 ............................................... $ 1,115,980
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/07 ............................................... 1,115,980
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/08 ............................................... 1,115,980
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/09 ............................................... 1,115,980
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/10 ............................................... 1,115,980
1,000,000 Series A, Pre-Refunded, 8.15%, 12/01/11 ............................................... 1,115,980
11,530,000 North County, Development Authority, Solid Waste Management Systems Revenue, Series A,
6.75%, 07/01/12 ....................................................................... 11,828,281
2,155,000 Oneida Health Care Corp., Mortgage Revenue, Oneida Health Care, Series A, 7.20%, 08/01/31 2,267,082
Oneida-Herkimer, Solid Waste Management Authority,
1,390,000 Solid Waste Systems Revenue, 6.20%, 04/01/00 .......................................... 1,438,261
1,035,000 Solid Waste Systems Revenue, 6.30%, 04/01/01 .......................................... 1,071,991
1,930,000 Solid Waste Systems Revenue, 6.40%, 04/01/02 .......................................... 2,008,532
2,075,000 Solid Waste Systems Revenue, 6.50%, 04/01/03 .......................................... 2,168,998
1,115,000 Solid Waste Systems Revenue, 6.65%, 04/01/05 .......................................... 1,169,735
17,330,000 Solid Waste Systems Revenue, 6.75%, 04/01/14 .......................................... 18,033,944
Port Authority of New York and New Jersey,
8,000,000 Consolidated 53rd Series Revenue, 8.70%, 07/15/20 ..................................... 8,272,640
1,675,000 Consolidated 67th Series Revenue, 6.875%, 01/01/25 .................................... 1,761,196
4,400,000 Consolidated 74th Series Revenue, 6.75%, 08/01/26 ..................................... 4,641,824
17,000,000 Port Authority of New York and New Jersey, Delta Air Lines, Inc. Special Project,
Series 1, 6.95%, 06/01/08.............................................................. 17,903,720
14,645,000 Puerto Rico Commonwealth Aqueduct and Sewer Authority Revenue, Series A, 7.875%, 07/01/17 16,088,118
29,455,000 Puerto Rico Commonwealth Highway Authority Revenue, Series P, Pre-Refunded, 8.125%,
07/01/13............................................................................... 33,284,445
8,000,000 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax Revenue,
Series A, 7.90%, 07/01/07.............................................................. 8,743,600
8,100,000 Puerto Rico Commonwealth Urban Renewal and Housing Corp., Refunding, 7.875%, 10/01/04 .... 9,090,468
Puerto Rico Electric Power Authority Revenue,
28,435,000 Refunding, Series 1987-K, Pre-Refunded, 9.375%, 07/01/17 .............................. 31,942,173
6,500,000 Refunding, Series 1987-L, Pre-Refunded, 8.375%, 07/01/07 .............................. 7,174,050
4,740,000 Series 1992-R, 6.25%, 07/01/17 ........................................................ 4,848,262
12,565,000 Series 1994-T, 6.375%, 07/01/24 ....................................................... 13,023,623
Puerto Rico Industrial, Medical and Environmental Facilities, PCFA,
1,000,000 Baxter Travenol Labs., Series A, 8.00%, 09/01/12 ...................................... 1,116,230
21,015,000 Special Facilities, American Airlines Corp., Series A, 8.75%, 12/01/25 ................ 21,836,687
Puerto Rico Municipal Finance Agency,
14,760,000 Series A, 8.25%, 07/01/08 ............................................................. 16,316,590
11,000,000 Series A, 6.50%, 07/01/19 ............................................................. 11,621,830
2,615,000 Puerto Rico PBA, Guaranteed Public Education and Health Facilities, Refunding,
Series I, 6.00%, 07/01/12............................................................. 2,627,943
2,500,000 Puerto Rico PBA, Guaranteed Revenue, Refunding, Series L, 5.75%, 07/01/16 ................ 2,452,025
Rensselaer Municipal Leasing Corp., Leasehold Mortgage Revenue, Rensselaer County
Nursing Home,
10,000,000 Series A, 6.90%, 06/01/24 ............................................................. 10,184,600
3,345,000 Series B, 6.90%, 06/01/24 ............................................................. 3,406,749
4,230,000 Schenectady Municipal Housing Authority Housing Revenue, Annie Schaffer Senior Center,
Inc. Project, 6.45%, 05/01/24 ......................................................... 4,456,517
Suffolk County IDA, Civic Facilities Revenue,
4,750,000 Dowling College Civic Facilities, 8.25%, 12/01/20 ..................................... 5,271,740
2,000,000 Dowling College Civic Facilities, 6.625%, 06/01/24 .................................... 2,055,720
1,345,000 Sunnybrook Elderly Housing Corp. Mortgage Revenue, Sunnybrook Apartments Project,
11.25%, 12/01/14....................................................................... 1,414,644
2,000,000 Syracuse IDA, Civic Facility Revenue, St. Joseph's Hospital Health Center Project,
7.50%, 06/01/18........................................................................ 2,136,380
United Nations Development Corp. Revenue, Refunding,
27,325,000 Sub-Lien, Series A, 6.00%, 07/01/26 ................................................... 27,590,599
15,370,000 Sub-Lien, Series B, 6.25%, 07/01/26 ................................................... 15,808,352
3,100,000 Virgin Islands Water and Power Authority Electric System, Series A, 7.40%, 07/01/11 ...... 3,321,340
41,000,000 Warren and Washington Counties IDAR, Refunding, Adirondack Resource Recovery Project,
Series A, 7.90%, 12/15/07 ............................................................. 42,157,430
Yonkers GO,
500,000 Series A, 9.20%, 02/01/01 ............................................................. 587,945
1,090,000 Series A, 9.20%, 02/01/03 ............................................................. 1,322,988
1,095,000 Series A, 9.20%, 02/01/04 ............................................................. 1,351,174
1,095,000 Series A, 9.20%, 02/01/05 ............................................................. 1,371,663
--------------
TOTAL BONDS (COST $4,290,819,494) .............................................. 4,564,950,130
==============
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS CONTINUED
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC., MAY 31, 1995
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
(b)ZERO COUPON/STEP-UP BONDS 1.4%
$ 1,120,000 Erie County Water Authority, Water Revenue, Refunding, Fourth Resolution, AMBAC
Insured, Pre-Refunded,
(original accretion rate 7.30%), 12/01/17 ............................................. $ 223,418
Metropolitan Transportation Authority, Transit Facilities Revenue,
8,205,000 Refunding, Series 7, (original accretion rate 5.75%), 07/01/09 ...................... 3,557,442
9,000,000 Refunding, Series 7, (original accretion rate 5.80%), 07/01/10 ...................... 3,677,040
7,500,000 Refunding, Series 7, (original accretion rate 5.80%), 07/01/10 ...................... 3,064,200
21,200,000 Refunding, Series 7, (original accretion rate 5.80%), 07/01/11 ...................... 8,098,612
8,490,000 Refunding, Series 7, (original accretion rate 5.85%), 07/01/12 ...................... 3,029,487
7,935,000 Refunding, Series 7, (original accretion rate 5.85%), 07/01/13 ...................... 2,665,525
3,500,000 Refunding, Series 7, (original accretion rate 5.546%), 07/01/14 ..................... 1,100,715
5,160,000 Series E, (original accretion rate 6.40%), 05/15/19 ................................. 1,115,850
New York City GO,
8,875,000 Citysavers, Series B, (original accretion rate 8.25%), 08/01/09 ..................... 3,624,461
1,030,000 Citysavers, Series B, (original accretion rate 8.66%), 06/01/12 ..................... 351,591
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/12 ..................... 340,631
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/13 ..................... 326,026
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/13 ..................... 315,767
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/14 ..................... 305,827
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/14 ..................... 296,197
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/15 ..................... 286,876
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/15 ..................... 277,843
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/16 ..................... 269,098
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/16 ..................... 260,631
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/17 ..................... 252,422
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/17 ..................... 244,481
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/18 ..................... 236,787
1,005,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/18 ..................... 223,763
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/19 ..................... 222,109
1,030,000 Citysavers, Series B, (original accretion rate 8.50%), 12/01/19 ..................... 215,116
10,000,000 Citysavers, Series B, (original accretion rate 8.50%), 06/01/20 ..................... 2,022,800
2,500,000 M-Raes, Series 29, zero coupon to 03/15/00, (original accretion rate 8.50%), 8.00%
thereafter,03/15/12................................................................ 1,893,450
3,875,000 M-Raes, Series 30, zero coupon to 03/15/00, (original accretion rate 8.50%), 8.00%
thereafter,03/15/13................................................................ 2,925,354
20,400,000 M-Raes, Series 36, zero coupon to 10/01/02, (original accretion rate 7.00%), 7.00%
thereafter, 10/01/14............................................................... 13,008,875
2,690,000 Series A-2, (original accretion rate 5.95%), 08/01/10 ............................... 1,031,184
21,170,000 Orangetown Housing Authority, Housing Facilities Revenue, Refunding, Orangetown Senior
Housing Center Project, MBIA Insured, (original accretion rate 6.60%), 04/01/30 ..... 2,616,400
21,625,000 Triborough Bridge and Tunnel Authority, Convention Center Project, Series E, (original
accretion rate 7.50%), 01/01/12 ..................................................... 8,055,960
--------------
TOTAL ZERO COUPON/STEP-UP BONDS (COST $62,904,345) ............................... 66,135,938
--------------
TOTAL INVESTMENTS (COST $4,353,723,839) 98.0% ............................... 4,631,086,068
OTHER ASSETS AND LIABILITIES, NET 2.0% ...................................... 95,882,612
--------------
NET ASSETS 100.0% .......................................................... $4,726,968,680
==============
At May 31, 1995, the net unrealized appreciation based on the cost of investments
for income tax purposes of $4,354,718,498 was as follows:
Aggregate gross unrealized appreciation for all investments in which there was an
excess of value over tax cost.................................................... $ 281,589,850
Aggregate gross unrealized depreciation for all investments in which there was an
excess of tax cost over value.................................................... (5,222,280)
--------------
Net unrealized appreciation ....................................................... $ 276,367,570
==============
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS CONTINUED
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC., MAY 31, 1995
- -------------------------------------------------------------------------------
PORTFOLIO ABBREVIATIONS:
AMBAC - American Municipal Bond Assurance Corp.
BIG - Bond Investors Guaranty Insurane Co.
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
(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 will remain constant.
The accompanying notes are an integral part of these financial statements. 17
FINANCIAL STATEMENTS
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1995
<TABLE>
<S> <C> <C>
Assets:
Investment in securities, at value
(identified cost $4,353,723,839) $4,631,086,068
Cash 6,610,160
Receivables:
Interest 88,967,111
Investment securities sold 22,881,184
Capital shares sold 7,439,016
--------------
Total assets 4,756,983,539
--------------
Liabilities:
Payables:
Investment securities purchased:
Regular delivery 15,408,132
When-issued basis (Note 1) 10,043,367
Capital shares repurchased 2,134,217
Management fees 1,791,394
Distribution fees 271,336
Shareholder servicing costs 56,017
Accrued expenses and other liabilities 310,396
--------------
Total liabilities 30,014,859
--------------
Net assets, at value $4,726,968,680
==============
Net assets consist of:
Undistributed net investment income $ 6,864,571
Unrealized appreciation on investments 277,362,229
Accumulated net realized loss (6,823,522)
Class I capital shares 4,022,950
Class II capital shares 1,630
Additional paid-in capital 4,445,540,822
--------------
$4,726,968,680
==============
Computation of net asset value and offering
price per share:
Class I
Net asset value* per share ($4,725,055,811
/ 402,295,032 shares outstanding) $11.75
==============
Maximum offering price (100/95.75 of $11.75) $12.27
==============
Class II
Net asset value* per share ($1,912,869
/ 163,023 shares outstanding) $11.73
==============
Maximum offering price (100/99.00 of $11.73) $11.85
==============
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MAY 31, 1995
Investment income:
Interest income (Note 1) $ 317,384,816
Expenses:
Management fees (Note 5) $ 20,769,558
Distribution fees-Class I (Note 5) 2,799,576
Distribution fees-Class II (Note 5) 303
Shareholder servicing costs (Note 5) 725,433
Reports to shareholders 937,464
Custodian fees 429,831
Professional fees (Note 5) 110,125
Directors' fees and expenses 58,929
Registration and filing fees 24,142
Other 144,574
Total expenses 25,999,935
--------------
Net investment income 291,384,881
--------------
Realized and unrealized gain (loss) on investments:
Net realized gain 45,909,121
Net unrealized depreciation (27,550,974)
--------------
Net realized and unrealized gain on investments 18,358,147
--------------
Net increase in net assets resulting from operations $ 309,743,028
==============
</TABLE>
*Redemption price per share is equal to net asset value less
any applicable contingent deferred sales charge.
18 The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS CONTINUED
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED MAY 31, 1995 AND 1994
<TABLE>
<CAPTION>
1995 1994
-------------- --------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ............................................................... $ 291,384,881 $ 286,246,889
Net realized gain (loss) from security transactions ................................. 45,909,121 (24,088,876)
Net unrealized depreciation on investments........................................... (27,550,974) (114,464,524)
-------------- --------------
Net increase in net assets resulting from operations............................. 309,743,028 147,693,489
Distributions to shareholders from undistributed net investment income (Note 8):
Class I............................................................................. (300,084,670) (289,819,098)
Class II............................................................................ (1) --
Increase in net assets from capital share transactions (Note 3)...................... 107,311,550 412,874,905
-------------- --------------
Net increase in net assets....................................................... 116,969,907 270,749,296
Net assets:
Beginning of year .................................................................... 4,609,998,773 4,339,249,477
-------------- --------------
End of year (including undistributed net investment income of $6,864,571 - 1995 and
$15,564,361 - 1994)................................................................... $4,726,968,680 $4,609,998,773
============== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
NOTES TO FINANCIAL STATEMENTS
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
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 Fund offers two classes of shares, Class I and Class II. Class I shares are
sold with a higher front-end sales charge. Class II shares are sold with a lower
front-end sales charge, but may be subject to a contingent deferred sales
charge. Each class of shares has the same rights, except with respect to the
effect of the respective sales charges, the distribution fees borne by each
class, voting rights on matters affecting a single class, and the exchange
privilege of each class.
The offering of Class II shares began May 1, 1995, at which time all previously
outstanding shares became Class I shares. Realized and unrealized gains or
losses and net investment income, other than class specific expenses, are
allocated daily to each class of shares based upon the relative proportion of
net assets of each class.
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 ask 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 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.
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
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 discount and premium, if any, are amortized as required by
the Internal Revenue Code.
Net realized capital gains and losses differ for financial statement and tax
purposes primarily due to differing treatment of wash sale transactions.
E. SECURITIES PURCHASED ON A WHEN-ISSUED OR DELAYED DELIVERY 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, it
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, 1995, for tax purposes, the Fund had capital loss carryover of
$5,828,863 expiring in 2002.
For tax purposes, the aggregate cost of securities is higher (and unrealized
appreciation is lower) than for financial reporting purposes at May 31, 1995 by
$994,659.
3. CAPITAL STOCK
At May 31, 1995, there were 2,500,000,000 Class I shares and 2,500,000,000 Class
II shares of $0.01 par value capital stock authorized, and paid-in capital
aggregated $4,447,667,790 and $1,897,612, respectively. Transactions in the
Fund's Class I and Class II shares for the year ended May 31, 1995 and 1994 were
as follows:
<TABLE>
<CAPTION>
CLASS I SHARES YEAR ENDED MAY 31,
--------------------------------------------------------------
1995 1994
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold.................................................... 34,595,936 $ 397,060,751 51,458,903 $ 624,610,727
Shares issued in reinvestment of distributions................. 11,609,779 132,502,096 9,616,839 115,957,302
Shares redeemed................................................ (33,675,983) (383,309,501) (24,059,238) (289,963,825)
Changes from exercise of exchange privilege:
Shares sold................................................... 11,664,593 132,914,323 7,296,444 87,461,565
Shares redeemed............................................... (15,290,142) (173,753,731) (10,421,181) (125,190,864)
----------- ------------- ----------- -------------
Net increase................................................... 8,904,183 $ 105,413,938 33,891,767 $ 412,874,905
=========== ============= =========== =============
</TABLE>
20
NOTES TO FINANCIAL STATEMENTS CONTINUED
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
3. CAPITAL STOCK (CONT.)
<TABLE>
<CAPTION>
CLASS II SHARES PERIOD ENDED
MAY 31, 1995*
-----------------------
SHARES AMOUNT
-------- ----------
<S> <C> <C>
Shares sold.................................................... 163,023 $1,897,611
Shares issued in reinvestment of distributions................. -- 1
-------- ----------
Net increase................................................... 163,023 $1,897,612
======== ==========
</TABLE>
*For the period May 1, 1995 (effective date) to May 31, 1995.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding purchases and sales of short-term
securities) for the year ended May 31, 1995 aggregated $1,919,560,416 and
$1,821,267,656, 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 on the last day 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 and including $250 million and
45/100 of 1% of net assets in excess of $250 million up to and including $10
billion. Fees are reduced further on net assets over $10 billion. Fees incurred
by the Fund aggregated $20,769,558 for the year ended May 31, 1995. 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. For the year ended May 31, 1995, the Fund's
expenses did not exceed these limitations.
Under the terms of a Distribution plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940, which was effective May 1, 1994 for Class I shares, and
which became effective on May 1, 1995 for Class II shares. Class I and II shares
will reimburse Franklin/Templeton Distributors, Inc., in an amount up to a
maximum of 0.10% and 0.65% per annum, respectively, of the average daily net
assets of each class for costs incurred in the promotion, offering and marketing
of the Class I and II shares. Fees incurred by the classes under the agreement
aggregated $2,799,879 for the year ended May 31, 1995.
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. 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. Franklin/Templeton Distributors, Inc. may also make payments, out of
its own resources, to dealers for certain sales of Class I and Class II shares.
Commissions received by Franklin/Templeton, Distributors, Inc. and the amounts
paid to other dealers for the year ended May 31, 1995 were as follows:
<TABLE>
<CAPTION>
CLASS I CLASS II
----------- --------
<S> <C> <C>
Total commissions received ........................ $13,714,510 $19,562
=========== =======
Paid to other dealers ............................. $12,948,469 $38,342
=========== =======
</TABLE>
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 year ended May 31, 1995 aggregated $725,433 of which
$627,409 was paid to Franklin/Templeton Investor Services, Inc.
During the year ended May 31, 1995, legal fees of $27,791 were incurred to a law
firm in which Brian E. Lorenz, Secretary of the Fund, is a partner.
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. SUBSEQUENT EVENTS
On May 16, 1995 and June 20, 1995, the Board of Directors declared distributions
per share as follows:
<TABLE>
<CAPTION>
From
Undistributed
Record Payment Net Investment
Date Date Income
------ ------- --------------
<S> <C> <C> <C>
Class I ................. 5/31 6/15 $0.063
Class II ................ 5/31 6/15 0.057
Class I ................. 6/30 7/14 0.063
Class II ................ 6/30 7/14 0.057
</TABLE>
7. CREDIT RISK
Although the Fund has a diversified portfolio, substantially all of its
investments are in the securities of issuers in Guam, New York and Puerto Rico.
Such concentration may subject the Fund more significantly to economic changes
occurring within that state and territories.
21
NOTES TO FINANCIAL STATEMENTS CONTINUED
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
8. FINANCIAL HIGHLIGHTS
Selected data for each share of capital stock outstanding throughout the year
are as follows:
<TABLE>
<CAPTION> Year Ended May 31,
--------------------------------------------------------
CLASS I SHARES: 1995 1994 1993 1992 1991
-------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value at beginning of year........................ $11.72 $12.07 $11.45 $10.94 $10.85
-------- ------- -------- -------- --------
Net investment income...................................... 0.73 0.75 0.77 0.78 0.80
Net realized and unrealized gain (loss)
on securities............................................. 0.056 (0.338) 0.630 0.523 0.086
-------- ------- -------- -------- --------
Total from investment operations............................ 0.786 0.412 1.400 1.303 0.886
-------- ------- -------- -------- --------
Distributions from net investment income.................... (0.756) (0.762) (0.780) (0.793) (0.796)
-------- ------- -------- -------- --------
Net asset value at end of year.............................. $11.75 $11.72 $12.07 $11.45 $10.94
======== ======= ======== ======== ========
Total return*............................................... 7.10% 3.18% 12.35% 12.05% 8.20%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of year (in 000's)........................ $4,725,056 $4,609,999 $4,339,249 $3,570,851 $3,108,151
Ratio of expenses to average net assets..................... 0.57% 0.52% 0.52% 0.51% 0.50%
Ratio of net investment income to average
net assets................................................. 6.39% 6.19% 6.56% 7.01% 7.34%
Portfolio turnover rate..................................... 40.56% 25.67% 12.28% 19.37% 18.62%
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
CLASS II SHARES: MAY 31, 1995+
------------
<S> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value at beginning of period...................... $11.50+++
Net investment income...................................... 0.05
Net realized and unrealized gain
on securities............................................. 0.243
Total from investment operations............................ 0.293
Distributions from net investment income.................... (0.063)
Net asset value at end of period............................ $11.73
TOTAL RETURN*............................................... 2.56%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of year (in 000's)........................ $1,913
Ratio of expenses to average net assets..................... 1.09%++
Ratio of net investment income to average
net assets................................................. 5.32%++
Portfolio turnover rate..................................... 40.56%
</TABLE>
*Total return measures the change in value of an investment over the periods
indicated. It is not annualized. It does not include the maximum initial sales
charge or the deferred contingent sales charge. The total return for Class I
shares also assumes reinvestment of dividends at the offering price and capital
gains, if any, at net asset value. Effective May 1, 1994, with the
implementation of the Rule 12b-1 distribution plan for Class I shares, as
discussed in Note 5, the existing sales charge on reinvested dividends has been
eliminated.
**Per share amounts have been calculated using the daily average shares
outstanding during the period.
+ For the period May 1, 1995 (effective date) to May 31, 1995.
++ Annualized.
+++The Fund paid a dividend to shareholders of record on the beginning of
business, May 1, 1995 in the amount of $0.063 per share. The net asset value
per share at beginning of period includes this dividend.
During the year ended May 31, 1995, the Fund paid distributions from
undistributed net investment income in the amounts shown in the Statement of
Changes in Net Assets. The Fund hereby designates the total amount of these
distributions as exempt-interest dividends under Section 852 (b) (5) of the
Internal Revenue Code.
22
REPORT OF INDEPENDENT AUDITORS
FRANKLIN NEW YORK TAX-FREE INCOME FUND, INC.
To the Shareholders and Board of Directors of Franklin New York Tax-Free Income
Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of Franklin
New York Tax-Free Income Fund, Inc. (the Fund), including the statement of
investments in securities and net assets, as of May 31, 1995, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of May
31, 1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significiant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Franklin New York Tax-Free Income Fund Inc. as of May 31, 1995, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the five years in the period then ended in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
San Francisco, California
June 30, 1995
23
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PURSUANT TO ITEM 304 (a) of REGULATION S-T)
GRAPHIC MATERIAL (1)
This bar chart shows the comparison between the fund's distribution rate of
6.16% and the taxable equivalent rate of 11.60%.
GRAPHIC MATERIAL (2)
The following line graph hypothetically compares the performances of the
Franklin New York Tax-Free Income Fund to that of the Lehman Brothers Municipal
Bond Index and the Consumer Price Index (CPI), based on a $10,000 investment
from 6/1/85 to 5/31/95.
<TABLE>
<CAPTION>
Period Ending New York Tax-FreLB Muni Index CPI
<S> <C> <C> <C>
6/1/85 9,571 10,000 10,000
6/30/85 9,699 10,105 10,028
7/31/85 9,736 10,125 10,047
8/31/85 9,848 10,054 10,066
9/30/85 9,613 9,954 10,094
10/31/85 9,935 10,295 10,132
11/30/85 10,211 10,665 10,160
12/31/85 10,509 10,759 10,188
1/31/86 10,847 11,392 10,216
2/28/86 11,306 11,845 10,188
3/31/86 11,570 11,848 10,142
4/30/86 11,373 11,858 10,123
5/31/86 11,154 11,664 10,152
6/30/86 11,244 11,775 10,207
7/31/86 11,305 11,847 10,207
8/31/86 11,814 12,378 10,226
9/30/86 11,845 12,409 10,273
10/31/86 12,175 12,623 10,282
11/30/86 12,310 12,873 10,291
12/31/86 12,372 12,837 10,301
1/31/87 12,642 13,224 10,366
2/28/87 11,770 12,425 10,543
6/30/87 11,984 12,790 10,580
7/31/87 12,109 12,921 10,607
8/31/87 12,205 12,949 10,663
9/30/87 11,510 12,472 10,719
10/31/87 11,555 12,515 10,747
11/30/87 11,925 12,842 10,756
12/31/87 12,135 13,028 10,756
1/31/88 12,639 13,492 10,784
2/29/88 12,839 13,635 10,812
3/31/88 12,553 13,477 10,859
4/30/88 12,613 13,579 10,915
5/31/88 12,673 13,540 10,953
6/30/88 12,915 13,737 11,000
7/31/88 12,964 13,827 11,046
8/31/88 13,050 13,839 11,092
9/30/88 13,321 14,090 11,167
10/31/88 13,607 14,338 11,203
11/30/88 13,477 14,206 11,212
12/31/88 13,636 14,351 11,231
1/31/89 13,846 14,648 11,288
2/28/89 13,752 14,481 11,334
3/31/89 13,747 14,446 11,400
4/30/89 14,064 14,788 11,474
5/31/89 14,358 15,096 11,539
6/30/89 14,535 15,301 11,567
7/31/89 14,675 15,509 11,595
8/31/89 14,616 15,357 11,613
9/30/89 14,544 15,311 11,650
10/31/89 14,619 15,498 11,706
11/30/89 14,816 15,769 11,734
12/31/89 14,946 15,899 11,753
1/31/90 14,845 15,824 11,874
2/28/90 15,045 15,965 11,930
3/31/90 14,998 15,969 11,996
4/30/90 14,923 15,854 12,015
5/31/90 15,155 16,200 12,042
6/30/90 15,355 16,354 12,368
10/31/90 15,421 16,650 12,442
11/30/90 15,690 16,984 12,470
12/31/90 15,655 17,059 12,470
1/31/91 15,884 17,288 12,545
2/28/91 16,026 17,438 12,563
3/31/91 16,140 17,445 12,582
4/30/91 16,345 17,679 12,601
5/31/91 16,445 17,836 12,639
6/30/91 16,532 17,818 12,676
7/31/91 16,785 18,036 12,695
8/31/91 17,026 18,274 12,731
9/30/91 17,344 18,511 12,788
10/31/91 17,479 18,678 12,807
11/30/91 17,583 18,730 12,844
12/31/91 17,782 19,133 12,853
1/31/92 17,778 19,177 12,872
2/29/92 17,800 19,183 12,918
3/31/92 17,950 19,191 12,984
4/30/92 18,197 19,361 13,002
5/31/92 18,479 19,590 13,021
6/30/92 18,812 19,919 13,068
7/31/92 19,423 20,516 13,095
8/31/92 19,234 20,315 13,132
9/30/92 19,325 20,447 13,168
10/31/92 19,034 20,247 13,215
11/30/92 19,493 20,609 13,233
12/31/92 19,753 20,820 13,224
1/31/93 20,014 21,061 13,289
2/28/93 20,531 21,824 13,335
3/31/93 20,454 21,592 13,382
4/30/93 20,566 21,810 13,419
5/31/93 20,815 21,933 13,438
6/30/93 21,153 22,299 13,457
7/31/93 21,162 22,328 13,457
8/31/93 21,556 22,792 13,495
9/30/93 21,790 23,052 13,523
10/31/93 21,831 23,096 13,578
11/30/93 21,659 22,893 13,588
12/31/93 22,111 23,376 13,588
1/31/94 22,314 23,642 13,624
2/28/94 21,922 23,030 13,671
3/31/94 21,293 22,092 13,717
4/30/94 21,337 22,280 13,736
5/31/94 21,526 22,474 13,746
6/30/94 21,475 22,337 13,793
7/31/94 21,759 22,746 13,830
8/31/94 21,877 22,825 13,885
9/30/94 21,620 22,490 13,923
10/31/94 21,305 22,090 13,933
11/30/94 20,819 21,690 13,951
12/31/94 21,319 22,167 13,951
1/31/95 21,766 22,801 14,007
2/28/95 22,235 23,464 14,063
3/31/95 22,396 23,734 14,109
4/30/95 22,441 23,763 14,156
5/31/95 23,055 24,521 14,183
</TABLE>
