Semi
Annual
Report
November 30, 1997
Franklin New York Tax-Free Income Fund
Thank you for investing with Franklin Templeton. We encourage our investors to
maintain a long-term perspective, and to expect that mixed in with the good
years can be some bad years. It's important to remember that all securities
markets move both up and down, as do mutual fund share prices. We appreciate
your past support and look forward to serving your investment needs in the years
ahead.
GRAPHIC PICTURE OMITTED
Charles B. Johnson
President
Thomas J. Kenny
Director
Franklin Municipal
Bond Department
CONTENTS
Shareholder Letter 1
Manager's Discussion 4
Performance Summary
Class I 7
Class II 9
Financial Highlights &
Statement of Investments 11
Financial Statements 24
Notes to
Financial Statements 27
SHAREHOLDER LETTER
Dear Shareholder:
It's a pleasure to bring you the Franklin New York Tax-Free Income Fund's
semi-annual report for the period ended November 30, 1997.
A Glimpse at the Economy
During the six months under review, the U.S. economy continued its expansion.
Just prior to the beginning of the period, in March, the Federal Reserve Board
(the Fed) raised short- term interest rates from 5.25% to 5.50%. This 25 basis
point increase was the Fed's response to tightening labor markets and an overall
concern that possible wage demands could lead to increased inflationary
pressures. The rate hike had its desired effect. Economic growth slowed slightly
and interest rates stabilized, reversing their general rising trend and ending
the period down from where they began. The 30-year U.S. Treasury bond started
the six-month period yielding 6.92%, and finished at 6.04% on November 30,
1997.1
Even with continued strong economic growth, there have been remarkably few signs
of increased inflation. This low inflation, combined with a balanced budget
agreement between the President and Congress, greatly contributed to a
beneficial environment of falling interest rates throughout the majority of the
reporting period. However, consumer spending strengthened toward the end of the
period and the stock market -- despite a stumble at the end of October --
remained near all-time highs. As a result, we believe the economy's growth rate
is showing signs of acceleration -- which potentially could bring about Fed
action.
1. Source: Federal Reserve H15 Report, 30-year Constant Maturity Index,
11/30/97.
The Tale of the Tortoise and the Hare
We can't promise that a positive economic environment will continue. It is
important to remember, then, that markets correct -- in our opinion, it is
desirable for them to do so. Consequently, investor concern about volatility and
the market's direction prompts us to comment on the importance of having your
own long-term investment strategy. And when you consider your investment
strategy, are you a tortoise or a hare?
We all know that familiar story: The tortoise won the race because he had a plan
and stuck to it, not allowing the hare's fast start to distract him. Much like
the tortoise, successful investors historically have achieved good results
through setting goals, diversifying their assets, and having patience. Wise
investors think like the tortoise. They know mutual fund investments are long
term, so daily market fluctuations and short-term volatility have minimal impact
on their overall investment goals. They understand that patience and discipline
are keys to successful investing. Remember, it's time -- not timing -- that
makes the difference.
We encourage you to discuss your financial goals with your investment
representative. He or she can address concerns about volatility and help you
diversify your investments and stay focused on the long term. Mutual funds offer
a level of diversification that is almost impossible for individual investors to
achieve on their own.
Regardless of the market's direction, Franklin Templeton's disciplined
investment strategy remains the same: All of our portfolio managers are
dedicated to providing shareholders like you with careful selection and constant
professional supervision. As always, we appreciate your support, welcome your
questions and comments, and look forward to serving your investment needs in the
years ahead.
Sincerely,
Charles B. Johnson
President
Franklin New York Tax-Free Income Fund
Thomas J. Kenny
Director
Franklin Municipal Bond Department
MANAGER'S DISCUSSION
Your Fund's 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.1
New York state municipal bond prices, and fixed-income securities in general,
moved erratically higher over the six-month reporting period. This general rise
was the result of a U.S. economy that enjoyed moderate growth, low unemployment
(in October, the rate dropped to a 24-year low of 4.7%2), and inflation levels
below expectations. In this environment, New York's financial performance
improved sufficiently, prompting Standard & Poor's(R) to upgrade the state's
general obligation (GO) debt rating from "A-" to "A." A major reason for the
favorable result was the performance of the financial (in particular the Wall
Street component), insurance, retail and entertainment sectors -- a sector
combination known as F.I.R.E. New York City benefited even more from the
F.I.R.E. sectors' contributions, although New York City's GO (NYC GO) bonds have
yet to be upgraded.
1. For investors subject to the federal alternative minimum tax, a small portion
of this income may be subject to such tax. Distributions of capital gains and of
ordinary income from accrued market discounts, if any, are generally taxable.
2. Source: U.S. Bureau of Labor Statistics.
As NYC GOs were among the higher yielding investment-grade securities in the
state, we generally kept our exposure as close as possible to the 5% maximum. In
late May and early June of this year, we added almost $20 million of New York
City GOs to the portfolio (a move made possible by the prerefunding of some of
our NYC GO bonds), bringing the percentage to 4.99% on June 11, 1997. On May 31,
1997, we purchased GO bonds at a price of $99.172. The yield on the bonds at
that price was 6.06%. Despite the fact that these bonds soon rose in price to
well over par (or face) value, which tends to cause them to move more slowly,
they were valued at $103.339 on November 30, 1997 -- a 4.20% price appreciation.
However, bond yields usually drop when bond prices move higher, and these bonds
were no exception to the rule: on November 30, 1997, they yielded 5.574%.
It is worth noting that, on May 31, 1997, 53.6% of the portfolio's holdings were
rated "A" or higher. On November 30, 1997, that portion had increased to 67.6%.
This resulted from our focus on higher-grade issues during a period in which
quality spreads narrowed, allowing us to buy A- and AA-rated bonds while giving
up less yield than would usually occur.
During the reporting period, we tried to reduce the number of prerefunded bonds
held in the portfolio in an effort to retain -- for our shareholders -- the
price appreciation which results from prerefunding. Despite our sales of over
$345 million during the six months, we were unable to keep ahead of new
prerefundings and ended the reporting period with 16% of our total long-term
investments in that category, up from 14.1% on May 31, 1997. The overall
strength in the municipal markets made prerefundings intelligent moves for
issuers, enabling them to lower their interest costs. In that strong interest
rate environment, we were unable to take sufficient losses to offset the profits
that resulted from the aforementioned sales of relatively short-lived
prerefunded bonds. As a result, the fund will distribute a long-term capital
gain in the amount of 3.53 cents ($0.0353) per share on December 15, 1997.
GRAPHIC MATERIAL 1 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Portfolio Breakdown
11/30/97
% of Total
Long-Term
SECTOR INVESTMENTS
- -------------------------------
Hospitals 19.4%
Prerefunded 16.0%
Housing 15.9%
Utilities 10.2%
Transportation 8.3%
Education 7.8%
Health Care 7.6%
Other Revenue 6.5%
General Obligations 4.8%
Sales Tax 2.3%
Certificates of
Participation 0.9%
Industrial 0.3%
For a complete list of portfolio holdings, please see page 13 of this report.
In general, we don't manage for maximum price appreciation, but rather to
maximize income for our shareholders. We tend to purchase current coupons (and
those at small discounts to par), as they provide higher income and lower
volatility. Although deeper discount bonds generally outperform other bonds as
interest rates decline, they tend to underperform dramatically when rates rise.
Therefore, we shall stay with Franklin's long-term objectives of high, tax-free
income and preservation of capital.
Please remember, this discussion reflects our views and opinions as of November
30, 1997, the end of the reporting period. However, market and economic
conditions are changing constantly, which may affect our strategies and
portfolio holdings. Although historic performance is no guarantee of future
results, these insights may help you understand our investment and management
philosophy.
PERFORMANCE SUMMARY
Class I
The share price of Franklin New York Tax-Free Income Fund - Class I, as measured
by net asset value, increased 30 cents from $11.66 on May 31, 1997, to $11.96 on
November 30, 1997. During the six-month reporting period, the fund paid monthly
income distributions totaling 33 cents ($0.33) per share. Distributions will
vary based on the earnings of the fund's portfolio, and past distributions are
not predictive of future trends.
Based on an annualization of November's monthly per share dividend of 5.5 cents
($0.055) and the maximum offering price of $12.49 on November 30, 1997, your
fund's distribution rate was 5.28%. This tax-free rate is generally higher than
the after-tax return on a comparable taxable investment. As the chart on page 8
illustrates, an investor in the maximum combined federal, New York state and New
York City personal income tax bracket would need to earn 9.74% from a taxable
investment to match the fund's tax-free distribution rate. Likewise, an investor
in the maximum combined federal and New York state personal income tax bracket
would need to earn 9.39% from a taxable investment to match the fund's tax-free
distribution rate.
Class I
Dividend Distributions
6/1/97 - 11/30/97
Dividend
MONTH PER SHARE
- -------------------------------
June 5.5 cents
July 5.5 cents
August 5.5 cents
September 5.5 cents
October 5.5 cents
NOVEMBER 5.5 CENTS
- -------------------------------
Total 33 cents
GRAPHIC MATERIAL 2 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Class I
Periods ended 11/30/97
Since
Inception
1-YEAR 5-YEAR 10-YEAR (9/13/82)
- -------------------------------------------------------------------------
Cumulative Total Return1 7.81% 39.86% 128.60% 279.62%
Average Annual Total Return2 3.24 % 6.01% 8.15% 8.86%
Distribution Rate3 5.28%
Taxable Equivalent
Distribution Rate4 9.74%
30-Day Standardized Yield5 4.60%
Taxable Equivalent Yield4 8.49%
1. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the initial sales charge.
2. Average annual total return represents the average annual change in value of
an investment over the periods indicated and includes the current, maximum 4.25%
initial sales charge.
3. Based on an annualization of November's 5.5 cent per share monthly dividend
and the maximum offering price of $12.49 on November 30, 1997.
4. Taxable equivalent distribution rate and yield assume the 1997 maximum
combined federal, New York state and New York City personal income tax bracket
of 45.791%, based on the federal income tax rate of 39.6%.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended November 30, 1997.
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 returns
would differ. Effective May 1, 1994, the fund eliminated the sales charge on
reinvested dividends and implemented a Rule 12b-1 plan, which affects subsequent
performance.
All total return calculations assume reinvestment of dividends and any capital
gains at net asset value. Your investment return and principal value will
fluctuate with market conditions, and you may have a gain or loss when you sell
your shares.
Class II
The share price of Franklin New York Tax-Free Income Fund - Class II, as
measured by net asset value, increased 30 cents, from $11.65 on May 31, 1997, to
$11.95 on November 30, 1997. During the six-month reporting period, the fund
paid monthly income distributions totaling 29.60 cents ($0.2960) per share.
Distributions vary based on the earnings of the fund's portfolio, and past
distributions are not predictive of future trends.
Based on an annualization of November's monthly per share dividend of 4.92 cents
($0.0492) and the maximum offering price of $12.07 on November 30, 1997, your
fund's distribution rate was 4.89%. This tax-free rate is generally higher than
the after-tax return on a comparable taxable investment. As the chart on page 10
illustrates, an investor in the maximum combined federal, New York state and New
York City personal income tax bracket would need to earn 9.02% from a taxable
investment to match the fund's tax-free distribution rate. Likewise, an investor
in the maximum combined federal and New York state personal income tax bracket
would need to earn 8.69% from a taxable investment to match the fund's tax-free
distribution rate.
Class II
Dividend Distributions
6/1/97 - 11/30/97
Dividend
MONTH PER SHARE
- --------------------------------
June 4.92 cents
July 4.95 cents
August 4.94 cents
September 4.95 cents
October 4.92 cents
NOVEMBER 4.92 CENTS
- --------------------------------
Total 29.60 cents
GRAPHIC MATERIAL 3 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Class II
Periods ended 11/30/97
Since
Inception
1-YEAR (5/1/95)
- -----------------------------------------------------
Cumulative Total Return1 7.18% 19.60%
Average Annual Total Return2 5.10% 6.74%
Distribution Rate3 4.89%
Taxable Equivalent
Distribution Rate4 9.02%
30-Day Standardized Yield5 4.23%
Taxable Equivalent Yield4 7.80%
1. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the sales charges.
2. Average annual total return represents the average annual change in value of
an investment over the periods indicated and includes the1.0% initial sales
charge and 1.0% contingent deferred sales charge applicable to shares redeemed
within 18 months of investment.
3. Based on an annualization of November's 4.92 cent per share monthly dividend
and the maximum offering price of $12.07 on November 30, 1997.
4. Taxable equivalent distribution rate and yield assume the 1997 maximum
combined federal, New York state and New York City personal income tax bracket
of 45.791%, based on the federal income tax rate of 39.6%.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended November 30, 1997.
All total return calculations assume reinvestment of dividends and any capital
gains at net asset value. Your investment return and principal value will
fluctuate with market conditions, and you may have a gain or loss when you sell
your shares.
<TABLE>
<CAPTION>
FRANKLIN NEW YORK TAX-FREE INCOME FUND
Financial Highlights
CLASS I
-------------------------------------------------------------------------------
Six Months Ended
November 30, 1997 YEAR ENDED MAY 31,
-----------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
--------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.66 $11.46 $11.75 $11.72 $12.07 $11.45
--------------------------------------------------------------------------------
Income from investment operations:
Net investment income .33 .68 .70 .73 .75 .77
Net realized and unrealized gains (losses) .30 .23 (.28) .06 (.34) .63
--------------------------------------------------------------------------------
Total from investment operations .63 .91 .42 .79 .41 1.40
--------------------------------------------------------------------------------
Less distributions from:
Net investment income (.33) (.68) (.71) (.76) (.76) (.78)
Net realized gains -- (.03) -- -- -- --
--------------------------------------------------------------------------------
Total distributions (.33) (.71) (.71) (.76) (.76) (.78)
--------------------------------------------------------------------------------
Net asset value, end of period $11.96 $11.66 $11.46 $11.75 $11.72 $12.07
================================================================================
Total return* 5.48% 8.16% 3.65% 7.10% 3.18% 12.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $4,777,151 $4,704,745 $4,709,483 $4,725,056 $4,609,999 $4,339,249
Ratios to average net assets:
Expenses .60%** .59% .58% .57% .52% .52%
Net investment income 5.65%** 5.87% 5.99% 6.39% 6.19% 6.56%
Portfolio turnover rate 8.00% 11.18% 28.34% 40.56% 25.67% 12.28%
*Total return does not reflect sales commissions or the contingent deferred
sales charge, and is not annualized. Prior to May 1, 1994, dividends from net
investment income were reinvested at the offering price.
**Annualized.
</TABLE>
<TABLE>
<CAPTION>
CLASS II
----------------------------------------------------
Six Months Ended
November 30, 1997 YEAR ENDED MAY 31,
-------------------------------
(UNAUDITED) 1997 1996 19951,2
----------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $11.65 $11.45 $11.73 $11.50
----------------------------------------------------
Income from investment operations:
Net investment income .30 .63 .65 .05
Net realized and unrealized gains (losses) .30 .21 (.29) .24
----------------------------------------------------
Total from investment operations .60 .84 .36 .29
====================================================
Less distributions from:
Net investment income (.30) (.61) (.64) (.06)
Net realized gains -- (.03) -- --
----------------------------------------------------
Total distributions (.30) (.64) (.64) (.06)
-----------------------------------------------------
Net asset value, end of period $11.95 $11.65 $11.45 $11.73
====================================================
Total return* 5.18% 7.52% 3.14% 2.56%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $90,754 $74,195 $39,047 $1,913
Ratios to average net assets:
Expenses 1.18%** 1.17% 1.16% 1.09%**
Net investment income 5.07%** 5.30% 5.43% 5.32%**
Portfolio turnover rate 8.00% 11.18% 28.34% 40.56%
*Total return does not reflect sales commissions or the contingent deferred
sales charge, and is not annualized.
**Annualized.
1Per share amounts have been calculated using the daily average shares
outstanding during the period.
2For the period May 1, 1995 (effective date) to May 31, 1995, 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.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN NEW YORK TAX-FREE INCOME FUND
Statement of Investments, November 30, 1997 (unaudited)
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------------------------------------------------
bLong Term Investments 98.4%
Bonds 96.6%
<S> <C> <C>
Albany Housing Authority, Limited Obligation, Refunding, 6.25%, 10/01/12 $ 5,250,000 $ 5,569,935
Albany Parking Authority Revenue, Refunding, Series A, 6.85%, 11/01/12 1,610,000 1,731,378
Auburn, IDA, MFR, Auburn Memorial Home, 6.50%, 02/01/34 5,935,000 6,326,354
Babylon IDA, Resource Recovery Revenue, Ogden Martin System, Inc., Pre-Refunded,
Series A, 8.50%, 01/01/19 8,090,000 8,543,283
Series C, 8.50%, 01/01/19 2,845,000 3,004,405
Babylon IDA, Waste Facilities Revenue, Community Waste Management, Series A, Pre-Refunded, 7.875%,
07/01/06 10,750,000 11,576,998
Batavia Housing Authority Mortgage Revenue, Refunding, Washington Towers, Series
A, 6.50%, 01/01/23 1,000,000 1,048,390
Battery Park City Authority Revenue, Refunding, Junior Lien, Series A, 5.80%, 11/01/22 68,795,000 70,100,041
Bethany Retirement Home, Inc., Mortgage Loan Revenue, 7.50%, 02/01/34 8,160,000 9,470,822
Cattaraugus County COP, Olean Project Facility, Series A, Pre-Refunded, 8.50%, 08/01/09 1,440,000 1,511,928
Clinton County COP, Correctional Facilities Project, 8.125%, 08/01/17 5,375,000 6,903,650
Cortland County IDA, Civic Facilities Revenue, Cortland Memorial Hospital, Inc.
Project, 6.25%, 07/01/24 6,400,000 6,583,360
Franklin County COP, Court House Redevelopment Project, 8.125%, 08/01/06 4,915,000 5,450,686
Franklin County IDA, Lease Revenue, County Correctional Facilities Project,
6.75%, 11/01/12 4,790,000 5,117,684
Guam Airport Authority Revenue, Series A, 6.50%, 10/01/23 5,385,000 5,874,981
Guam Power Authority Revenue, Series A,
6.30%, 10/01/12 5,075,000 5,335,398
6.625%, 10/01/14 2,900,000 3,159,782
6.30%, 10/01/22 45,340,000 47,534,456
6.75%, 10/01/24 25,500,000 27,887,820
Hamilton Elderly Housing Corp. Mortgage Revenue, Hamilton Apartments Project,
11.25%, 01/01/15 1,355,000 1,408,482
Ilion Elderly Housing Corp. Mortgage Revenue, Section 8, Housing Assistance Revenue,
7.25%, 07/01/09 1,915,000 1,918,007
Lincoln Towers Housing Corp. Mortgage Revenue, Lincoln Towers Project, 11.25%, 01/01/15 1,325,000 1,384,095
Metropolitan Transportation Authority, Commuter Facilities Revenue, Series A,
6.50%, 07/01/24 35,620,000 39,969,202
Metropolitan Transportation Authority, Commuter Facilities Revenue, Series A,
5.625%, 07/01/27 8,000,000 8,229,440
bMetropolitan Transportation Authority, Commuter Facilities Revenue, Series R,
5.50%, 07/01/17 2,000,000 1,941,600
Metropolitan Transportation Authority, Commuter Facilities Revenue, Series 8,
5.50%, 07/01/21 5,000,000 4,967,050
Metropolitan Transportation Authority, Service Contract Revenue,
Commuter Facilities, Series 3, 6.00%, 07/01/19 4,235,000 4,416,046
Commuter Facilities, Series 5, 7.00%, 07/01/12 31,605,000 34,245,282
Commuter Facilities, Series 6, 6.00%, 07/01/21 10,255,000 10,833,895
Refunding, Commuter Facilities, Series N, 7.125%, 07/01/09 24,160,000 26,632,051
Refunding, Commuter Facilities, Series 5, 6.50%, 07/01/16 17,470,000 18,357,825
Refunding, Commuter Facilities, Series 5, 6.00%, 07/01/18 2,740,000 2,779,346
Refunding, Transit Facilities, Series 5, 7.00%, 07/01/12 30,935,000 33,519,310
Refunding, Transit Facilities, Series 5, 6.50%, 07/01/16 40,495,000 42,552,956
Refunding, Transit Facilities, Series 5, 6.00%, 07/01/18 7,725,000 7,830,987
Refunding, Transit Facilities, Series N, 7.125%, 07/01/09 12,625,000 13,916,790
Transit Facilities, Series 6, 7.00%, 07/01/09 2,000,000 2,212,960
Metropolitan Transportation Authority, Transit Facilities Revenue, Series A, FSA Insured,
6.10%, 07/01/21 16,940,000 18,181,871
6.10%, 07/01/26 18,725,000 19,987,627
5.625%, 07/01/26 8,000,000 8,229,440
5.5%, 07/01/22 6,480,000 6,453,691
5.625%,07/01/27 14,465,000 14,482,503
Monroe County IDA Revenue, Civic Facilities, De Paul Community Facilities, 6.50%,
02/01/24 $ 1,285,000 $ 1,406,407
New York City GO,
Series 1991-A, 7.75%, 08/15/01 1,400,000 1,587,572
Series 1996-F, 5.876%, 08/01/24 7,000,000 7,186,270
Series 1990-B, 7.00%, 06/01/15 1,255,000 1,359,215
Series 1990-B, Pre-Refunded, 7.00%, 06/01/15 2,995,000 3,305,821
Series 1991-A, 7.75%, 08/15/13 135,000 150,818
Series 1991-A, Pre-Refunded, 7.75%, 08/15/13 1,865,000 2,118,323
Series 1997-G, 6.0%, 10/15/26 9,900,000 10,256,499
Series 1991-B, 7.75%, 02/01/10 2,000,000 2,248,620
Series 1991-B, 7.75%, 02/01/11 5,000,000 5,621,550
Series 1991-B, 7.75%, 02/01/12 500,000 562,355
Series 1991-B, 7.75%, 02/01/13 1,875,000 2,108,831
Series 1991-B, 7.75%, 02/01/14 10,950,000 12,315,575
Series 1991-B, 7.75%, 02/01/15 22,610,000 25,384,021
Series 1991-B, 7.00%, 02/01/18 1,485,000 1,619,764
Series 1991-D, 8.25%, 08/01/13 110,000 124,614
Series 1991-D, 8.00%, 08/01/17 65,000 73,094
Series 1991-D, Pre-Refunded, 8.25%, 08/01/13 4,710,000 5,414,804
Series 1991-D, Pre-Refunded, 8.00%, 08/01/17 3,615,000 4,125,583
Series 1992, Rite 1, 7.00%, 10/01/11 12,750,000 13,809,908
Series 1992-B, 6.75%, 10/01/15 1,500,000 1,643,145
Series 1992-C, Sub-Series C, Pre-Refunded, 7.00%, 08/01/16 4,500,000 5,033,203
Series 1992-H, 7.00%, 02/01/18 4,225,000 4,608,419
Series 1994-B, Sub-series B-1, Pre-Refunded, 7.50%, 08/15/20 10,000,000 11,772,900
Series 1995-C, 7.25%, 08/15/24 15,960,000 17,331,443
Series 1995-C, Pre-Refunded, 7.25%, 08/15/24 6,785,000 7,491,590
Series 1995-F, 6.625%, 02/15/25 11,240,000 12,346,353
Series A, 7.75%, 08/15/14 800,000 893,736
Series A, 6.25%, 08/01/17 2,675,000 2,834,965
Series A, Pre-Refunded, 7.75%, 08/15/01 9,200,000 10,432,616
Series A-1, 6.625%, 08/01/25 17,000,000 18,752,530
Series B, 7.00%, 06/01/13 360,000 391,716
Series B, 7.00%, 06/01/14 4,565,000 4,967,177
Series B, 6.00%, 08/15/26 7,695,000 7,951,936
Series B, Pre-Refunded, 7.00%, 06/01/14 2,160,000 2,380,450
Series B, Sub-series B-1, Pre-Refunded, 7.00%, 08/15/16 325,000 375,359
Series B, Sub-series B-1, 7.00%, 08/15/16 1,675,000 1,876,603
Series C, 7.20%, 08/15/14 2,840,000 3,064,275
Series C, Pre-Refunded, 7.20%, 08/15/14 1,160,000 1,278,842
Series D, 7.50%, 02/01/18 200,000 222,272
Series F, 8.40%, 11/15/09 265,000 303,788
Series F, Pre-Refunded, 8.40%, 11/15/08 7,500,000 8,725,563
Series F, Pre-Refunded, 8.40%, 11/15/09 3,085,000 3,593,686
Series 1986-C, 7.0%, 02/01/12 710,000 720,423
Series 1992-H, 7.2%, 02/01/14 4,000,000 4,465,840
Series 1992-H, 7.2%, 02/01/15 3,385,000 3,786,630
New York City GO, (cont.)
Series 1992-H, 7.2%, 02/01/15 $ 1,215,000 $ 1,339,137
Series 1986-D, 8.5%, 08/01/15 35,000 35,735
Series 1992-H, 7.0%, 02/01/16 1,400,000 1,558,396
Series 1992-H, 7.0%, 02/01/16 1,100,000 1,201,563
Series 1997-C, 5.5%, 11/15/37 8,545,000 8,342,313
Series H, 7.20%, 02/01/13 1,200,000 1,325,004
Series H, 7.00%, 02/01/17 3,215,000 3,515,667
Series H, Pre-Refunded, 7.20%, 02/01/13 8,800,000 9,844,120
Series H, Pre-Refunded, 7.00%, 02/01/17 3,285,000 3,650,029
Series I, 6.25%, 04/15/27 9,500,000 10,079,595
Series K, 6.25%, 04/01/26 9,000,000 9,467,640
New York City HDC, MFMR, Series A,
6.55%, 10/01/15 19,450,000 20,678,073
6.55%, 04/01/18 10,000,000 10,600,500
6.60%, 04/01/30 51,500,000 54,428,805
New York City Health & Hospital Authority, Local Government Revenue, Refunding,
Series A, 6.30%, 02/15/20 114,635,000 120,014,821
New York City IDA, Civic Facilities Revenue,
Federation Protestant Welfare, 6.95%, 11/01/11 2,520,000 2,630,603
New York Blood Center, Inc. Project, Pre-Refunded, 7.20%, 05/01/12 4,000,000 4,588,280
New York Blood Center, Inc. Project, Pre-Refunded, 7.25%, 05/01/22 7,000,000 8,048,740
St. Christopher Ottilie Project, 7.50%, 07/01/21 2,500,000 2,761,525
The Lighthouse, Inc. Project, 6.50%, 07/01/22 8,000,000 8,524,640
College of New Rochelle, 5.75%, 09/01/17 1,500,000 1,520,310
College of New Rochelle. 5.8%, 09/01/26 1,500,000 1,523,985
New York City Municipal Water Finance Authority, Water & Sewer System Revenue,
Series 1991-A, 6.75%, 06/15/16 1,400,000 1,483,650
Series 1991-A, 6.75%, 06/15/17 18,100,000 19,163,375
Series 1991-A, Pre-Refunded, 7.10%, 06/15/12 15,700,000 17,299,516
Series 1992-B, 6.375%, 06/15/22 38,250,000 41,752,553
Series 1994-A, 7.10%, 06/15/12 17,785,000 19,498,763
Series 1994-A, Pre-Refunded, 7.10%, 06/15/12 2,215,000 2,440,664
Series 1994-A, Pre-Refunded, 7.00%, 06/15/15 2,875,000 3,142,764
Series A, 6.125%, 06/15/20 39,015,000 41,130,783
Series A, 6.00%, 06/15/25 17,225,000 18,037,848
Series B, 6.25%, 06/15/20 41,190,000 44,087,717
Series B, 5.875%, 06/15/26 10,250,000 10,655,285
Series 1996-A, 5.5%, 06/15/24 25,625,000 26,003,994
6.25%,06/15/21 1,010,000 1,076,286
Series 1991-A, 6.25%, 06/15/21 990,000 1,020,561
Series C, AMBAC Insured, 6.20%, 06/15/21 3,075,000 3,353,933
New York Housing Corp. Revenue, Series A, Pre-Refunded, 5.5%,11/01/20 2,200,000 2,199,868
New York State COP,
Hanson Redevelopment Project, 8.25%, 11/01/01 6,575,000 7,234,538
Hanson Redevelopment Project, 8.375%, 05/01/08 18,045,000 21,480,948
New York State Dormitory Authority Revenue,
Bishop Henry N. Hucles Nursing Home, 6.00%, 07/01/24 2,545,000 2,675,075
5.25%, 05/15/21 6,000,000 5,697,480
New York State Dormitory Authority Revenue, (cont.)
City University System, Third General, 6.00%, 07/01/20 $ 13,000,000 $ 13,452,010
City University System, Third General, 6.20%, 07/01/22 28,555,000 30,187,204
City University System Consolidated, Series C, 7.50%, 07/01/10 14,900,000 18,080,405
City University System Consolidated, Series C, 6.00%, 07/01/16 13,010,000 13,185,375
City University System Consolidated, Series D, 7.00%, 07/01/09 3,430,000 4,004,182
City University System, Series F, Pre-Refunded, 7.875%, 07/01/17 40,000,000 44,345,200
Department of Education, Pre-Refunded, 7.75%, 07/01/21 2,530,000 2,866,237
Department of Health, 6.20%, 07/01/17 14,725,000 15,390,717
Department of Health, 5.50%, 07/01/25 33,800,000 33,466,732
Department of Health, Rosewell Park Cancer Center, 6.625%, 07/01/15 5,355,000 5,812,317
Department of Health, Rosewell Park Cancer Center, 6.625%, 07/01/24 9,175,000 10,006,347
Department of Health, Veterans Home, 6.25%, 07/01/20 8,480,000 8,903,915
Department of Health, Veterans Home, Pre-Refunded, 7.25%, 07/01/11 3,190,000 3,561,507
Department of Health, Veterans Home, Pre-Refunded, 7.25%, 07/01/21 9,775,000 10,913,397
Fashion Institute of Technology, 7.50%, 07/01/20 2,115,000 2,284,940
Genessee Valley, Series A, 6.90%, 02/01/32 2,355,000 2,529,882
Heritage House Nursing Center, 7.00%, 08/01/31 2,375,000 2,591,576
Long Island Jewish Medical Center, Series A, 7.75%, 08/15/27 14,355,000 14,745,456
Long Island University, 6.25%, 09/01/23 12,995,000 13,772,231
Mental Health Services Facilities, Series A, 5.75%, 08/15/22 1,390,000 1,422,137
Mental Health Services Facilities, Series A, 5.75%, 02/15/27 9,370,000 9,523,855
New York Medical College, Asset Guaranty, 6.875%, 07/01/21 5,375,000 5,912,393
Nursing Home, Wesley Garden, 6.125%, 08/01/35 2,000,000 2,112,860
Nyack Hospital, 6.25%, 07/01/13 3,000,000 3,205,770
Our Lady of Mercy, Mortgage Revenue, FHA Insured, 6.30%, 08/01/32 5,835,000 6,236,623
Refunding, City University, 6.00%, 07/01/26 17,320,000 17,936,246
Refunding, City University, Series C, 8.20%, 07/01/14 2,000,000 2,082,940
Refunding, City University, Series U, 6.375%, 07/01/08 2,885,000 3,108,616
Refunding, City University, Series U, 6.70%, 07/01/09 5,405,000 6,008,414
Refunding, City University Systems - Consolidated, Second General, Series A,
6.00%, 07/01/17 10,215,000 10,613,896
Refunding, City University Systems - Consolidated, Third General, Series A,
6.00%, 07/01/16 23,185,000 24,160,625
Refunding, Manhattan College, 6.50%, 07/01/19 19,390,000 20,669,740
Refunding, Mental Health Services Facilities, 6.00%, 08/15/21 1,800,000 1,874,340
Refunding, Mental Health Services Facilities, Series B, 5.75%, 08/15/12 2,165,000 2,242,594
Refunding, Nursing Home, St. John's Health Care Corp., 6.25%, 02/01/36 34,265,000 36,105,373
Refunding, State University Educational Facilities, Series A, 6.25%, 05/15/19 17,670,000 18,649,095
St. Lukes Home Residential Health, 6.375%, 08/01/35 5,200,000 5,613,868
State University Athletic Facilities, 7.25%, 07/01/12 2,565,000 2,793,875
State University Athletic Facilities, 7.25%, 07/01/21 4,750,000 5,203,388
State University Educational Facilities, Series B, 6.25%, 05/15/14 27,730,000 30,869,036
State University Educational Facilities, Series B, 7.375%, 05/15/14 7,025,000 7,598,943
State University Educational Facilities, Series B, 7.00%, 05/15/16 7,995,000 8,552,491
State University Educational Facilities, Series B, 6.25%, 05/15/20 60,795,000 67,676,994
State University Educational Facilities, Series B, 5.75%, 05/15/24 7,890,000 8,090,169
State University Educational Facilities, Series C, 6.125%, 05/15/20 2,690,000 2,813,740
The Highlands Living, 6.60%, 02/01/34 3,915,000 4,234,033
Upstate Community Colleges, Series A, 6.20%, 07/01/15 12,910,000 13,594,746
New York State Dormitory Authority Revenue, (cont.)
Upstate Community Colleges, Series A, 6.00%, 07/01/22 $ 7,000,000 $ 7,302,540
Upstate Community Colleges, Series A, 6.25%, 07/01/25 42,310,000 44,581,201
Upstate Community Colleges, Series A, 6.125%, 07/01/27 11,845,000 12,420,312
Upstate Community Colleges, Series A, Pre-Refunded, 7.60%, 07/01/20 3,250,000 3,577,210
Upstate Community Colleges, Series B, Pre-Refunded, 7.20%, 07/01/21 1,000,000 1,114,820
Arden Hill Nursing Home, 5.58%, 08/01/26 5,000,000 5,153,050
W.K. Nursing Home Corp, 6.05%, 02/01/26 6,800,000 7,188,008
University Edl, 5.75%, 05/15/16 3,000,000 3,075,690
University Edl, 5.5%, 05/15/26 31,750,000 31,823,978
Mental Health Services Facilitites, 5.625%, 05/15/21 2,780,000 2,817,780
City University System, 5.625%, 07/01/19 10,000,000 9,987,000
Schervier Home Asset Guaranty, 5.5%, 07/01/17 5,520,000 5,533,745
Schervier Home Asset Guaranty, 5.5%, 07/01/27 5,250,000 5,234,513
Niagara Insured Mtg Nursing Home MBIA, 5.45%, 08/01/17 2,500,000 2,516,950
Niagara Insured Mtg Nursing Home MBIA, 5.55%, 08/01/27 2,000,000 2,022,080
New York State Energy Research & Development Authority, Facilities Revenue, Refunding, Cons Edison Co.,
Series A, 6.10%, 08/15/20 11,820,000 12,606,976
New York State Energy Research & Development Authority, PCR,
Long Island Projects, 7.80%, 12/01/09 3,300,000 3,351,975
Long Island Projects, Series A, 7.50%, 12/01/06 5,000,000 5,071,500
Niagara Mohawk Power Corp. Project, Series 1, 8.875%, 11/01/25 38,145,000 39,022,335
New York State Environmental Facilities Corp., Special Obligation,
PCR, New York City Municipal Water Finance Authority Project, 6.875%, 06/15/14 1,810,000 2,073,464
PCR, New York City Municipal Water Finance Authority Project, 6.875%, 06/15/14 1,190,000 1,342,284
Riverbank State Park, Pre-Refunded, 7.25%, 04/01/07 4,000,000 4,531,040
Riverbank State Park, Pre-Refunded, 7.25%, 04/01/12 4,300,000 4,870,868
Riverbank State Park, Pre-Refunded, 7.375%, 04/01/22 5,000,000 5,688,250
New York State HFA, Service Contract Obligation Revenue,
Refunding, Series C, 6.30%, 09/15/12 5,000,000 5,255,150
Refunding, Series C, 6.00%, 09/15/21 19,310,000 19,900,307
Series 1990-A, Pre-Refunded, 7.80%, 09/15/20 14,000,000 15,586,340
Series 1991-A, Pre-Refunded, 7.80%, 09/15/20 10,000,000 11,273,500
Series 1992-A, 7.25%, 09/15/12 2,375,000 2,611,146
Series 1992-C, 6.30%, 03/15/22 30,320,000 31,762,019
Series 1993-C, 6.125%, 03/15/20 99,760,000 103,017,164
Series 1994-A, 6.50%, 03/15/24 28,330,000 30,238,875
Series A, 6.375%, 09/15/15 5,000,000 5,334,850
Series A, 5.50%, 09/15/22 3,000,000 2,987,640
Series A, 6.50%, 03/15/25 11,270,000 12,095,077
Series A, 6.00%, 03/15/26 16,725,000 17,327,769
bSeries C, 5.5%, 09/15/22 5,200,000 5,130,268
bSeries C, 5.5%, 03/15/25 5,860,000 5,761,904
New York State HFA Revenue,
Children's Rescue Fund Housing, Series A, 7.625%, 05/01/18 5,285,000 5,633,387
FHA Insured, Adult Care, Series A, 7.85%, 02/15/30 2,000,000 2,220,600
MF Housing, Second Mortgage, Series A, 7.00%, 08/15/23 4,245,000 4,548,135
MF Housing, Second Mortgage, Series D, 6.25%, 08/15/23 2,500,000 2,625,050
New York State HFA Revenue, (cont.)
MF Housing, Second Mortgage, Series C, 6.60%, 08/15/27 $ 5,500,000 $ 5,910,245
MF Housing, Second Mortgage, Series E, 6.75%, 08/15/25 7,005,000 7,465,088
MF Mortgage, AMBAC Insured, Series 1984-B, 6.35%, 08/15/23 34,515,000 36,690,135
MF Mortgage, AMBAC Insured, Series B, 6.25%, 08/15/14 2,760,000 2,944,561
MF Mortgage, Series 1985-B, FHA Insured, 8.50%, 05/15/28 12,575,000 12,582,545
MF Mortgage, Series 1991-A, FHA Insured, 7.10%, 08/15/35 8,630,000 9,259,817
MF Mortgage, Series 1992-A, FHA Insured, 7.00%, 08/15/22 4,885,000 5,245,269
MF Mortgage, Series 1992-C, FHA Insured, 6.50%, 08/15/24 6,870,000 7,315,726
Refunding, Health Facilities of New York City, Series A, 6.00%, 05/01/07 11,200,000 11,850,944
Refunding, Health Facilities of New York City, Series A, 6.00%, 11/01/08 2,400,000 2,530,992
Refunding, Health Facilities of New York City, Series A, Pre-Refunded, 8.00%,
11/01/08 80,410,000 90,285,956
Refunding, Health Facilities of New York City, Series A, 8.00%, 11/01/08 16,240,000 17,964,850
Refunding, Housing Project Mortgage, Series A, 6.10%, 11/01/15 26,150,000 27,634,274
Refunding, Housing Project Mortgage, Series A, 6.125%, 11/01/20 31,300,000 33,010,858
Refunding, MF Mortgage, Series 1992-C, FHA Insured, 6.45%, 08/15/14 1,000,000 1,064,980
New York State Local Government Assistance Corp.,
Series 1991-B, 6.50%, 04/01/20 10,120,000 10,854,105
Series 1991-C, 6.50%, 04/01/15 10,000,000 10,697,000
Series 1992-B, 6.25%, 04/01/21 38,535,000 40,806,638
Series 1992-C, 6.25%, 04/01/18 42,260,000 44,751,227
Series A, 6.00%, 04/01/24 12,200,000 12,702,518
New York State Medical Care Facilities Finance Agency,
Albany Medical Center, Alice Hyde Project, Mortgage Revenue, Series A, FHA Insured,
8.00%, 02/15/28 43,465,000 45,500,901
Buffalo General Hospital, Mortgage Revenue, Series C, FHA Insured, Pre-Refunded,
7.70%, 02/15/22 3,500,000 3,663,030
Catholic Medical Center of Brooklyn & Queens, Inc., Mortgage Revenue, Series A,
FHA Insured, Pre-Refunded, 8.30%, 02/15/22 22,150,000 22,788,806
Hospital & Nursing Home, Methodist Medical Center, Series A, FHA Insured,
6.70%, 08/15/23 5,500,000 5,930,705
Hospital & Nursing Home, Mortgage Revenue, Series A, FHA Insured, 6.125%, 02/15/15 6,415,000 6,839,096
Hospital & Nursing Home, Mortgage Revenue, Series A, FHA Insured, 6.20%, 02/15/21 8,330,000 8,896,773
Hospital & Nursing Home, Mortgage Revenue, Series A, FHA Insured, 6.30%, 08/15/23 9,000,000 9,493,470
Hospital & Nursing Home, Mortgage Revenue, Series A, FHA Insured, 6.25%, 02/15/27 12,235,000 13,074,199
Hospital & Nursing Home, Mortgage Revenue, Series A, FHA Insured, 6.20%, 02/15/28 26,910,000 28,693,057
Hospital & Nursing Home, Mortgage Revenue, Series A, FHA Insured, 7.45%, 08/15/31 28,750,000 31,960,513
Hospital & Nursing Home, Mortgage Revenue, Series A, FHA Insured, 6.375%, 08/15/33 7,940,000 8,338,032
Hospital & Nursing Home, Mortgage Revenue, Series A, FHA Insured, 6.50%, 02/15/34 11,525,000 12,375,199
Hospital & Nursing Home, Mortgage Revenue, Series B, FHA Insured, 8.875%, 08/15/27 12,045,000 12,386,837
Hospital & Nursing Home, Mortgage Revenue, Series B, FHA Insured, 6.95%, 02/15/32 24,000,000 26,036,160
Hospital & Nursing Home, Mortgage Revenue, Series B, FHA Insured, Pre-Refunded,
8.00%, 02/15/28 33,220,000 34,797,286
Hospital & Nursing Home, Mortgage Revenue, Series C, FHA Insured, 6.50%, 08/15/21 8,000,000 8,751,840
Hospital & Nursing Home, Mortgage Revenue, Series C, FHA Insured, 9.00%, 02/15/26 1,795,000 1,813,937
Hospital & Nursing Home, Mortgage Revenue, Series C, FHA Insured, 6.375%, 08/15/29 86,865,000 92,428,703
Hospital & Nursing Home, Mortgage Revenue, Series C, FHA Insured, 6.65%, 08/15/32 15,000,000 16,130,700
Hospital & Nursing Home, Mortgage Revenue, Series C, FHA Insured, Pre-Refunded,
6.20%, 08/15/23 21,540,000 22,945,270
Hospital & Nursing Home, Mortgage Revenue, Series D, FHA Insured, 6.60%, 02/15/31 13,375,000 14,390,296
Hospital & Nursing Home, Mortgage Revenue, Series D, FHA Insured, 6.45%, 02/15/32 55,500,000 61,672,155
Hospital Mortgage, Series A, AMBAC Insured, 6.80%, 08/15/24 3,200,000 3,609,984
Hospital Mortgage, Series A, AMBAC Insured, 6.50%, 08/15/29 5,125,000 5,672,811
New York State Medical Care Facilities Finance Agency, (cont.)
Hospital Mortgage, Series A, AMBAC Insured, 6.90%, 08/15/34 $ 31,210,000 $ 35,396,197
Huntington Hospital Mortgage, Refunding, Project A, 6.50%, 11/01/14 4,000,000 4,325,400
Medina Memorial Hospital Project, Series A, 7.30%, 05/01/11 2,670,000 2,905,681
Mental Health Services Facilities, Series A, 8.875%, 08/15/07 25,960,000 26,568,502
Mental Health Services Facilities, Series A, 7.70%, 02/15/18 3,405,000 3,495,982
Mental Health Services Facilities, Series A, Pre-Refunded, 7.70%, 02/15/18 4,000,000 4,110,640
Mortgage Revenue Project, Series A, 6.50%, 02/15/35 3,800,000 4,131,284
Mortgage Revenue Project, Series B, 6.60%, 08/15/34 23,775,000 25,761,164
Mortgage Revenue Project, Series C, 6.375%, 08/15/29 10,200,000 11,007,330
Mortgage Revenue Project, Series D, FHA Insured, 6.20%, 02/15/35 6,250,000 6,686,375
Mortgage Revenue Project, Series E, FHA Insured, 6.375%, 02/15/35 13,200,000 14,232,900
Mortgage Revenue Project, Series F, FHA Insured, 6.30%, 08/15/25 16,400,000 17,784,652
Mortgage Revenue Project, Series F, FHA Insured, 6.375%, 08/15/34 21,050,000 22,713,792
Mortgage Revenue, Series B, FHA Insured, 6.15%, 02/15/25 9,060,000 9,620,905
Mortgage Revenue, Series B, FHA Insured, 6.15%, 02/15/35 2,200,000 2,327,996
North General Hospital, Series 1989-A, 7.35%, 08/15/09 5,380,000 5,671,973
Refunding, Beth Israel Medical Center Project, Series A, 7.20%, 11/01/14 9,145,000 9,326,894
Refunding, Hospital and Nursing Home, Mortgage Revenue, Series A,
FHA Insured, 6.20%, 02/15/23 5,050,000 5,343,355
Refunding, Hospital and Nursing Home, Mortgage Revenue, Series B, 6.25%, 02/15/25 2,635,000 2,841,347
Refunding, Hospital and Nursing Home, Mortgage Revenue, Series B,
FHA Insured, 6.25%, 02/15/35 4,745,000 5,060,732
Refunding, Hospital and Nursing Home, Series B, 6.125%, 08/15/24 30,000,000 31,854,600
Refunding, Hospital Mortgage, Series A, FHA Insured, 7.25%, 02/15/12 10,730,000 11,016,384
Refunding, Nyack Hospital Project Revenue, Series A, Pre-Refunded, 8.30%, 11/01/13 6,400,000 6,774,016
Refunding, Vassar Brothers Hospital Project Revenue, Series A, 8.25%, 11/01/13 9,900,000 10,115,721
Saranac Lake General Hospital Project Revenue, Series A, 7.875%, 11/01/10 1,545,000 1,701,447
Second Mortgage, Health Care Project Revenue, Series B, 6.35%, 11/01/14 1,410,000 1,497,307
Secured Hospital Revenue, Bronx, Lebanon and The Jamaica Hospital, Series A,
7.10%, 02/15/27 61,770,000 62,654,546
Secured Hospital Revenue, North General Hospital, Series A, 7.40%, 02/15/19 72,180,000 76,691,972
Secured Hospital Revenue, Series A, 7.35%, 08/15/11 22,150,000 24,168,530
Secured Hospital Revenue, Series A, 7.40%, 08/15/21 55,225,000 60,329,999
Secured Hospital Revenue, Series A, 6.25%, 02/15/24 16,770,000 17,805,380
Security Mortgage Program Revenue, Adult Day Care, 6.375%, 11/15/20 19,550,000 21,222,698
The Hospital for Special Surgery Revenue, Series A, 6.375%, 08/15/24 6,025,000 6,513,146
The Hospital for Special Surgery Revenue, Series A, 6.45%, 08/15/34 36,650,000 39,405,714
New York State Mortgage Agency, HMR,
8th Series C, 8.40%, 10/01/17 9,670,000 9,923,451
8th Series D, 8.375%, 10/01/17 1,730,000 1,767,264
8th Series E, 8.10%, 10/01/17 4,885,000 5,014,746
10th Series A, 8.10%, 04/01/14 3,975,000 4,082,285
29th Series B, 6.45%, 04/01/15 17,250,000 18,248,085
37th Series A, 6.375%, 10/01/14 6,225,000 6,705,757
37th Series A, 6.45%, 10/01/17 9,000,000 9,680,220
Series 51, 6.40%, 10/01/17 9,945,000 10,750,843
Series BB-2, 7.95%, 10/01/15 6,560,000 6,819,579
Series FF, 7.95%, 10/01/14 2,835,000 2,913,416
New York State Mortgage Agency, HMR, (cont.)
Series OO, 8.05%, 10/01/11 $ 1,765,000 $ 1,869,488
Series RR, 7.75%, 10/01/17 14,650,000 15,518,306
New York State Mortgage Agency Revenue,
8th Series A, 6.875%, 04/01/17 13,685,000 13,841,967
Homeowners Mortgage, Series 27, 6.90%, 04/01/15 5,000,000 5,468,000
Homeowners Mortgage, Series 41-A, 6.50%, 10/01/17 9,880,000 10,653,604
Homeowners Mortgage, Series 43, MBIA Insured, 6.45%, 10/01/17 3,800,000 4,047,532
Homeowners Mortgage, Series 45, 7.20%, 10/01/17 23,730,000 26,074,287
Homeowners Mortgage, Series 47, 6.375%, 10/01/17 26,780,000 28,819,297
Homeowners Mortgage, Series 57, 6.25%, 10/01/15 10,000,000 10,727,600
Homeowners Mortgage, Series 57, 6.30%, 10/01/17 7,330,000 7,904,965
Homeowners Mortgage, Series 57, 6.375%, 10/01/27 8,590,000 9,243,355
Homeowners Mortgage, Series 61, 5.90%, 04/01/27 4,040,000 4,192,874
New York State Tollway Authority, Service Contract Revenue, Local Highway & Bridge,
6.20%, 04/01/10 12,630,000 13,577,250
6.375%, 04/01/12 21,865,000 23,747,358
6.25%, 04/01/14 23,970,000 25,717,892
Pre-Refunded, 7.25%, 01/01/10 1,300,000 1,434,979
New York State Urban Development Corp. Revenue,
5.6%, 07/01/26 9,750,000 9,865,830
Cornell Center Project, 6.00%, 01/01/14 4,500,000 4,643,505
Correctional Capital Facilities, Series 5, 6.25%, 01/01/20 81,350,000 85,481,767
Refunding, Onondaga County Convention Project, 6.25%, 01/01/20 28,325,000 29,882,875
Syracruse University Center, Pre-Refunded, 7.875%, 01/01/17 1,500,000 1,534,590
Youth Facilities, 6.00%, 04/01/15 8,500,000 8,843,825
Correctional Capital Facilities, Series 4, 5.375%, 01/01/23 11,210,000 10,784,132
Correctional Capital Facilities, Series 6, 5.375%, 01/01/25 7,150,000 6,936,430
Correctional Capital Facilities, Series 6, 5.625%, 01/01/17 3,255,000 3,278,469
Correctional Capital Facilities, Series 7, 5.7%, 01/01/16 3,000,000 3,054,090
Correctional Capital Facilities, Series 7, 5.7%, 01/01/27 56,950,000 57,487,039
Niagara Falls GO, Public Improvement, Pre-Refunded,
Series A, 8.15%, 12/01/04 1,000,000 1,030,000
Series A, 8.15%, 12/01/05 1,000,000 1,030,000
Series A, 8.15%, 12/01/06 1,000,000 1,030,000
Series A, 8.15%, 12/01/07 1,000,000 1,030,000
Series A, 8.15%, 12/01/08 1,000,000 1,030,000
Series A, 8.15%, 12/01/09 1,000,000 1,030,000
Series A, 8.15%, 12/01/10 1,000,000 1,030,000
Series A, 8.15%, 12/01/11 1,000,000 1,030,000
North County Development Authority, Solid Waste Systems Revenue, Pre-Refunded, 6.75%,
07/01/12 5,145,000 5,449,172
Oneida Health Care Corp., Mortgage Revenue, Oneida Health Care,Series A,7.20%, 08/01/31 2,155,000 2,301,949
Oneida-Herkimer, Solid Waste Management Authority, Solid Waste Systems Revenue,
6.20%, 04/01/00 1,390,000 1,433,187
6.30%, 04/01/01 1,035,000 1,073,119
6.40%, 04/01/02 1,930,000 2,016,271
6.50%, 04/01/03 2,075,000 2,191,034
Oneida-Herkimer, Solid Waste Management Authority, Solid Waste Systems Revenue, (cont.)
6.65%, 04/01/05 $ 1,115,000 $ 1,193,318
6.75%, 04/01/14 20,755,000 21,941,563
Port Authority of New York and New Jersey Revenue,
Consolidated 67th Series, 6.875%, 01/01/25 1,675,000 1,770,643
Consolidated 74th Series, 6.75%, 08/01/26 4,400,000 4,739,944
Port Authority of New York and New Jersey, Delta Air Lines Special Project,
Series 1, 6.95%, 06/01/08 17,000,000 18,649,510
Puerto Rico Commonwealth Aqueduct and Sewer Authority Revenue, Series A, Pre-Refunded,
7.875%, 07/01/17 14,645,000 15,281,618
Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue,
Series Y, 5.00%, 07/01/36 4,000,000 3,797,200
Puerto Rico Commonwealth Urban Renewal and Housing Corp., Refunding, 7.875%, 10/01/04 8,100,000 8,723,052
Puerto Rico Electric Power Authority Revenue,
Series 1992-R, 6.25%, 07/01/17 7,740,000 8,236,753
Series 1994-T, 6.375%, 07/01/24 15,565,000 16,994,645
Series T, 6.00%, 07/01/16 5,575,000 5,848,733
Puerto Rico Industrial, Medical & Environmental Facilities, PCFA,
Baxter Travenol Labs, Series A, 8.00%, 09/01/12 1,000,000 1,058,540
Special Facilities, American Airlines Corp., Series A, 6.45%, 12/01/25 21,015,000 22,765,129
Puerto Rico Municipal Finance Agency, Series A,
Pre-Refunding, 8.25%, 07/01/08 14,760,000 15,433,056
6.50%, 07/01/19 11,000,000 12,111,990
Rensselaer Municipal Leasing Corp., Leasehold Mortgage Revenue, Rensselaer County Nursing Home,
Series A, 6.90%, 06/01/24 10,000,000 10,799,500
Series B, 6.90%, 06/01/24 3,345,000 3,612,433
Schenectady Municipal Housing Authority Revenue, Annie Schaffer Senior Center, Inc.
Project, 6.45%, 05/01/24 4,230,000 4,636,503
Suffolk County IDA, Civic Facilities Revenue, Dowling College, Pre-Refunded, 8.25%,
12/01/20 4,635,000 5,242,695
Sunnybrook Elderly Housing Corp., Mortgage Revenue, Sunnybrook Apartments Project,
11.25%, 12/01/14 1,300,000 1,349,127
Syracuse IDA, Civic Facility Revenue, St. Joseph's Hospital Health Center Project,
Pre-Refunded, 7.50%, 06/01/18 2,000,000 2,241,460
Ulster County Resource Recovery Agency, Solid Waste Systems Revenue, 6.00%, 03/01/14 8,620,000 8,957,214
Virgin Islands Water and Power Authority Electric System, Series A, 7.40%, 07/01/11 2,985,000 3,212,875
Warren and Washington Counties IDA Revenue, Refunding, Adirondack Resource Recovery Project, Series A,
7.90%, 12/15/07 39,150,000 40,665,497
Yonkers GO, Series A,
9.20%, 02/01/01 500,000 562,350
9.20%, 02/01/03 1,090,000 1,283,933
9.20%, 02/01/04 1,095,000 1,315,566
9.20%, 02/01/05 1,095,000 1,341,463
------------
Total Bonds (Cost $4,373,685,692) 4,703,375,216
------------
Zero Coupon/Step-Up Bonds 1.8%
Erie County Water Authority, Water Revenue, Refunding, Fourth Resolution, AMBAC Insured, (original accretion
rate 7.30%), 12/01/17 1,120,000 267,120
Metropolitan Transportation Authority, Refunding,
Commuter Facilities Revenue, Series 7, (original accretion rate 5.80%), 07/01/10 7,500,000 3,874,800
Commuter Facilities Revenue, Series 7, (original accretion rate 5.80%), 07/01/11 7,590,000 3,696,254
Commuter Facilities Revenue, Series 7, (original accretion rate 5.85%), 07/01/13 2,065,000 890,882
Transit Facilities Revenue, Series 7, (original accretion rate 5.75%), 07/01/09 13,125,000 7,219,406
Transit Facilities Revenue, Series 7, (original accretion rate 5.80%), 07/01/10 9,000,000 4,649,760
Transit Facilities Revenue, Series 7, (original accretion rate 5.80%), 07/01/11 21,200,000 10,324,188
Metropolitan Transportation Authority, Refunding, (cont.)
Transit Facilities Revenue, Series 7, (original accretion rate 5.85%), 07/01/12 $ 15,380,000 $ 7,033,120
Transit Facilities Revenue, Series 7, (original accretion rate 5.85%), 07/01/13 7,935,000 3,423,318
New York City GO,
Citysavers, Series B, (original accretion rate 8.25%), 08/01/09 8,875,000 4,811,315
Citysavers, Series B, (original accretion rate 8.66%), 06/01/12 1,030,000 473,110
Citysavers, Series B, (original accretion rate 8.50%), 12/01/12 1,030,000 460,585
Citysavers, Series B, (original accretion rate 8.50%), 06/01/13 1,030,000 445,022
Citysavers, Series B, (original accretion rate 8.50%), 12/01/13 1,030,000 433,136
Citysavers, Series B, (original accretion rate 8.50%), 06/01/14 1,030,000 415,512
Citysavers, Series B, (original accretion rate 8.50%), 12/01/14 1,030,000 404,234
Citysavers, Series B, (original accretion rate 8.50%), 06/01/15 1,030,000 391,925
Citysavers, Series B, (original accretion rate 8.50%), 12/01/15 1,030,000 381,255
Citysavers, Series B, (original accretion rate 8.50%), 06/01/16 1,030,000 371,531
Citysavers, Series B, (original accretion rate 8.50%), 12/01/16 1,030,000 361,437
Citysavers, Series B, (original accretion rate 8.50%), 06/01/17 1,030,000 345,658
Citysavers, Series B, (original accretion rate 8.50%), 12/01/17 1,030,000 336,110
Citysavers, Series B, (original accretion rate 8.50%), 06/01/18 1,030,000 328,137
Citysavers, Series B, (original accretion rate 8.50%), 12/01/18 1,005,000 311,359
Citysavers, Series B, (original accretion rate 8.50%), 06/01/19 1,030,000 307,733
Citysavers, Series B, (original accretion rate 8.50%), 12/01/19 1,030,000 299,215
Citysavers, Series B, (original accretion rate 8.50%), 06/01/20 10,000,000 2,824,500
M-Raes, Series 29, zero coupon to 03/15/00, 8.00% thereafter, 03/15/12 2,500,000 2,301,050
M-Raes, Series 30, zero coupon to 03/15/00, 8.00% thereafter, 03/15/13 3,875,000 3,566,628
M-Raes, Series 36, zero coupon to 10/01/02, 7.00% thereafter, 10/01/14 17,400,000 13,506,750
Series A-2, (original accretion rate 5.95%), 08/01/10 2,690,000 1,378,598
Orangetown New York Housing Authority Facilities Revenue, Refunding, Orangetown
Senior Housing Center
Project, MBIA Insured, (original accretion rate 6.60%), 04/01/30 21,170,000 3,429,740
Triborough Bridge and Tunnel Authority, Convention Center Project, Series E, (original accretion rate 7.50%),
01/01/12 21,625,000 10,340,426
------------
Total Zero Coupon/Step-Up Bonds (Cost $77,098,718) 89,603,814
------------
Total Long Term Investments (Cost $4,450,784,410) 4,792,979,030
------------
aShort Term Investments 0.3%
New York City Municipal Water Finance Authority, Water and Sewer System Revenue, Daily VRDN and Put,
4.0%, 06/15/24 7,900,000 7,900,000
3.95%, 02/01/29 4,300,000 4,300,000
------------
Total Short Term Investments (Cost $12,200,000) 12,200,000
------------
Total Investments (Cost $4,462,984,410) 98.7% 4,805,179,030
Other Assets less Liabilities 1.3% 62,726,012
Net Assets 100.0% $4,867,905,042
============
See glossary of terms on page 23.
AMBAC - American Municipal Bond Assurance Corp.
COP - Certificate of Participation
FHA - Federal Housing Authority/Agency
FSA - Financial Security Assistance (some of the securities shown as FSA Insured were originally insured by Capital
Guaranty Insurance Co. (CGIC) which was acquired by FSA in 1995 and no longer does business under this name).
GO - General Obligation
HDC - Housing Development Corp.
HFA - Housing Finance Authority/Agency
HMR - Home Mortgage Revenue
IDA - Industrial Development Authority/Agency
MBIA - Municipal Bond Investors Assurance Corp.
MF - Multi-Family
MFR - Multi-Family Revenue
MFMR - Multi-Family Mortgage Revenue
PCFA - Pollution Control Financing Authority
PCR - Pollution Control Revenue
aVariable rate demand notes (VRDN's) are tax-exempt obligations which contain a
floating or variable interest rate adjustment formula and an unconditional right
of demand to receive payment of the principal balance plus accrued interest at
specified dates.
bSufficient collateral has been segregated for securities traded on a
when-issued or delayed delivery basis.
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN NEW YORK TAX-FREE INCOME FUND
Financial Statements
Statement of Assets and Liabilities
November 30, 1997 (unaudited)
Assets:
<S> <C>
Investments in securities, at value (cost $4,462,984,410) $4,805,179,030
Cash 1,199,582
Receivables:
Capital shares sold 2,217,603
Interest 83,908,416
--------------
Total assets 4,892,504,631
--------------
Liabilities:
Payables:
Investment securities purchased 16,831,262
Capital shares redeemed 767,844
Affiliates 2,515,440
Shareholders 3,907,191
Other liabilities 577,852
--------------
Total liabilities 24,599,589
--------------
Net assets, at value $4,867,905,042
==============
Net assets consist of:
Undistributed net investment income $ 3,772,347
Net unrealized appreciation 342,194,620
Accumulated net realized gain 18,050,788
Capital shares 4,503,887,287
--------------
Net assets, at value $4,867,905,042
--------------
Class I:
Net asset value per share ($4,777,150,693 / 399,504,897 shares outstanding)* $11.96
==============
Maximum offering price per share ($11.96 / 95.75%) $12.49
==============
Class II:
Net asset value per share ($90,754,349 / 7,593,615 shares outstanding)* $11.95
==============
Maximum offering price per share ($11.95 / 99.00%) $12.07
==============
*Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN NEW YORK TAX-FREE INCOME FUND
Financial Statements (continued)
Statement of Operations
for the six months ended November 30, 1997 (unaudited)
Investment income:
Interest $151,065,618
<S> <C>
Expenses:
Management fees (Note 5) $11,035,147
Distribution fees (Note 5)
Class I 1,609,176
Class II 269,670
Transfer agent fees (Note 5) 873,329
Custodian fees 26,204
Reports to shareholders 658,391
Registration and filing fees 17,396
Professional fees (Note 5) 51,367
Trustees' fees and expenses 32,212
Other 98,377
-------------
Total expenses 14,671,269
-------------
Net investment income 136,394,349
-------------
Realized and unrealized gains:
Net realized gain from investments 22,177,123
Net unrealized appreciation on investments 99,335,964
-------------
Net realized and unrealized gain 121,513,087
-------------
Net increase in net assets resulting from operations $257,907,436
=============
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN NEW YORK TAX-FREE INCOME FUND
Financial Statements (continued)
Statements of Changes in Net Assets
for the six months ended November 30, 1997 (unaudited)
and the year ended May 31, 1997
Six Months Ended Year Ended
NOVEMBER 30, 1997 MAY 31, 1997
--------------------------------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C>
Net investment income $ 136,394,349 $ 281,045,314
Net realized gain (loss) from investments 22,177,123 (2,607,119)
Net unrealized appreciation on investments 99,335,964 95,305,025
--------------------------------------
Net increase in net assets resulting from operations 257,907,436 373,743,220
Distributions to shareholders from:
Net investment income:
Class I (132,613,520) (278,715,300)
Class II (2,041,980) (2,919,445)
Net realized gains:
Class I -- (10,650,658)
Class II -- (126,948)
Total distributions to shareholders (134,655,500) (292,412,351)
Capital share transactions (Note 2)
Class I (48,777,268) (85,103,028)
Class II 14,490,021 34,182,724
--------------------------------------
Total capital share transactions (Note 2) (34,287,247) (50,920,304)
Net increase in net assets 88,964,689 30,410,565
Net assets:
Beginning of period $4,778,940,353 $4,748,529,788
--------------------------------------
End of period $4,867,905,042 $4,778,940,353
======================================
Undistributed net investment income included in net assets:
End of period $ 3,772,347 $ 2,033,498
======================================
</TABLE>
FRANKLIN NEW YORK TAX-FREE INCOME FUND
Notes to Financial Statements (unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Franklin New York Tax-Free Income Fund (the Fund) is registered under the
Investment Company Act of 1940 as a diversified, open-end investment company.
The Fund seeks to provide investors with as high a level of income exempt from
federal income taxes as is consistent with prudent investing, while seeking
preservation of shareholders' capital.
The following summarizes the Fund's significant accounting policies.
a. Security Valuation
Tax-free bonds generally trade in the over-the-counter market and are valued
within the range of the latest quoted bid and asked prices. In the absence of a
sale or reported bid and asked prices, information with respect to bond and note
transactions, quotations from bond dealers, market transactions in comparable
securities, and various relationships between securities are used to determine
the value of the security. The Fund may 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 Trustees. Securities for
which market quotations are not readily available are valued at fair value as
determined by management in accordance with procedures established by the Board
of Trustees.
b. Income Taxes
No provision has been made for income taxes because the Fund's policy is to
qualify as a regulated investment company under the Internal Revenue Code and
distribute all of its taxable income.
c. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Interest income and estimated expenses are accrued daily. Bond discount and
premium are amortized on an income tax basis. Distributions to shareholders are
recorded on the ex-dividend date.
Realized and unrealized gains and 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.
d. Accounting Estimates
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the amounts of income and expense during the reporting
period. Actual results could differ from those estimates.
2. CAPITAL STOCK
The Fund offers two classes of shares: Class I and Class II. The shares have the
same rights except for their initial sales load, distribution fees, voting
rights on matters affecting a single class and the exchange privilege of each
class.
At November 30, 1997, there were 2,500,000,000 shares authorized ($0.01 par
value) for each class. Transactions in the Fund's shares were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
NOVEMBER 30, 1997 MAY 31, 1997
-----------------------------------------------------------
Shares Amount Shares Amount
-----------------------------------------------------------
Class I Shares:
<S> <C> <C> <C> <C>
Shares sold 14,458,712 $171,039,922 32,064,194 $370,632,540
Shares issued in reinvestment of distributions 5,113,895 60,224,993 11,481,161 132,524,371
Shares redeemed (23,689,901) (280,042,183) (50,892,502) (588,259,939)
-----------------------------------------------------------
Net decrease (4,117,294) $ (48,777,268) (7,347,147) $ (85,103,028)
===========================================================
Class II Shares:
Shares sold 1,506,066 $ 17,813,585 3,577,561 $ 41,341,369
Shares issued in reinvestment of distributions 108,169 1,274,163 159,659 1,843,398
Shares redeemed (389,179) (4,597,727) (778,579) (9,002,043)
-----------------------------------------------------------
Net increase 1,225,056 $ 14,490,021 2,958,641 $ 34,182,724
===========================================================
</TABLE>
3. INCOME TAXES
At May 31, 1997, the Fund had tax basis capital losses of $2,873,500 which may
be carried over to offset future capital gains. Such losses expire in 2005.
At November 30, 1997, the net unrealized appreciation based on the cost of
investments for income tax purposes of $4,464,162,134 was as follows:
Unrealized appreciation $ 341,048,478
Unrealized depreciation (31,582)
-------------
Net unrealized appreciation $ 341,016,896
=============
Net realized capital gains differ for financial statement and tax purposes
primarily due to differing treatment of wash sales.
4. INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding short-term securities) for the
period ended November 30, 1997 aggregated $381,230,547 and $413,380,377,
respectively.
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Certain officers and trustees of the Fund are also officers and/or directors of
Franklin Investment Advisory Services, Inc. (Investment Advisory), Franklin
Templeton Services, Inc. (FT Services), Franklin/Templeton Distributors Inc.
(Distributors), and Franklin/Templeton Investor Services, Inc. (Investor
Services), the Fund's investment manager, administrative manager, principal
underwriter, and transfer agent, respectively.
The Fund pays an investment management fee to Investment Advisory based on the
average net assets of the Fund as follows:
Annualized
FEE RATE MONTH-END NET ASSETS
---------------------------------------------------------------------------
0.625% First $100 million
0.50% Over $100 million up to and including $250 million
0.45% Over $250 million up to and including $10 billion
Fees are further reduced on net assets over $10 billion.
Under an agreement with Investment Advisory, FT Services provides administrative
services to the Fund. The fee is paid by Investment Advisory based on average
daily net assets, and is not an additional expense of the Fund.
The Fund reimburses Distributors up to 0.10% and 0.65% per year of the average
daily net assets of Class I and Class II, respectively, for costs incurred in
marketing the Fund's shares.
Distributors paid net commissions on sales of the Fund's shares, and received
contingent deferred sales charges for the period of $85,327 and $15,262
respectively.
The Fund paid shareholder servicing fees of $873,329, of which $796,674 was paid
to Investor Services.
During the period ended November 30, 1997, legal fees of $29,662 were paid to a
law firm in which an officer of the Fund is a partner.
6. CREDIT RISK
The Fund has investments in excess of 10% of its total net assets in the state
of New York. Such concentration may subject the Fund more significantly to
economic changes occurring within that state.
FRANKLIN NEW YORK TAX-FREE INCOME FUND SEMI-ANNUAL REPORT NOVEMBER 30, 1997
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING (PURSUANT TO ITEM
304(a) OF REGULATION S-T)
GRAPHIC MATERIAL (1)
This chart shows in pie format the credit quality breakdown of the fund's
portfolio on 11/30/97, based on total long-term investments.
<TABLE>
<CAPTION>
<S> <C>
AAA 29.0%
AA 15.1%
A 23.5%
BBB 30.6%
Below Investment Grade 1.8%
</TABLE>
GRAPHIC MATERIAL (2)
This chart shows in bar format the comparison between the fund's Class I shares
distribution rate of 5.28%, the New York State taxable equivalent rate of 9.39%,
and the New York City taxable equivalent rate of 9.74%.
GRAPHIC MATERIAL (3)
This chart shows in bar format the comparison between the fund's Class II shares
distribution rate of 4.89%, the New York State taxable equivalent rate of 8.69%,
and the New York City taxable equivalent rate of 9.02%.
