<PAGE> 1
- -------------------------------------------------------------------------------
PROVIDENT
- -------------------------------------------------------------------------------
INSTITUTIONAL 400 Bellevue Parkway, Wilmington, DE 19809
FUNDS Phone: 302-792-2555 Fax: 302-792-5876
Thomas A. Melfe
Chairman
MUNICIPAL FUND FOR NEW YORK INVESTORS, INC.
March 4, 1997
Dear Shareholder:
We are pleased to present the Semi-Annual Report to Shareholders of
Municipal Fund for New York Investors, Inc., for the period ended January 31,
1997.
The enclosed Investment Adviser's Report provides a summary of the economic
and tax situations in the State and City of New York. The expertise of our
Adviser's fixed income research group in dealing with these factors is very
beneficial to our shareholders.
Please call your Provident Distributors, Inc. account representative or our
Client Service Center at (800) 821-7432 if you have any questions. We welcome
the opportunity to serve you.
Sincerely,
/s/ Thomas A. Melfe
Thomas A. Melfe
Chairman
<PAGE> 2
MUNICIPAL FUND FOR NEW YORK INVESTORS, INC.
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
New York State's economy, while still tracking below the national average,
showed continued growth through the end of 1996, raising revenues and putting
the operating budget into surplus. Standard & Poor's maintained its "positive"
outlook on the State and prospects for a future upgrade of the State's general
obligation debt were modestly increased. While Governor Pataki's program of
spending cuts and tax relief has produced positive results, structural problems
remain and the budget battle for the upcoming fiscal year should prove no less
difficult than those that have caused late budgets for the last twelve
consecutive years. Particular dangers this time around include overly optimistic
economic assumptions leading to overstated revenue projections and the pressures
for additional spending as legislators begin to prepare for upcoming re-election
campaigns. Recommendations for further tax cuts for both individuals and
business are part of the new budget proposal; a small increase in overall
spending is also envisioned.
Rising profits for the financial services industry, fueled by a surging
stock market, helped to keep New York City's finances in balance this year. The
relief is temporary, however, and the City's budget continues to be plagued by
thorny structural problems and vulnerable to any weakening in the economy. Mayor
Giuliani has made steady progress in creating a business environment more
favorable to growth, resulting in job creation and rising treasury receipts, but
the large and growing demand for social services on the part of City residents
and potential cost pressures arising from the changes in federal welfare
programs make expenditures difficult to control. In addition, the City is
rapidly approaching its limit of allowable issuance of general obligation debt.
Nevertheless, the City has vast resources and manages, year after year, to
successfully, if inelegantly, close its budget gaps. There is no reason to
believe that the upcoming year will prove to be an exception.
The short-term tax-exempt market saw an increase in note issuance over the
recent past including two substantial offerings by New York City. An $800
million tax anticipation note issue came to market in August 1996 with a
February 1997 maturity and $1.6 billion of revenue anticipation notes comprised
of two series were marketed in October with maturities in April and June of
1997. Both deals were well received despite being aggressively priced due to a
significant inflow of cash into tax-exempt money market funds. Investors,
nervous about the level of the stock market, appeared reluctant to commit
inflows to equities at the same rate as in the recent past and some cash backed
up into the money markets, at least temporarily, pushing overall money market
assets to new highs.
One of the advantages that the New York Money Fund enjoys is the support of
a highly experienced fixed income research group whose credit analysis is both
methodical and thorough. This expertise benefitted the portfolio the past six
months when general market notes that the Fund normally uses to extend its
average maturity failed to provide attractive yields. With the support of credit
research, the Fund was able to avoid the larger, more expensive deals and move
into smaller note offerings that required more detailed credit analysis; thereby
extending the average maturity and locking in yields at levels providing good
relative value without added risk. Consequently, the average weighted maturity
was extended to the 50-day range during the third quarter, taking advantage of
opportunities, before gradually shortening as the supply of issues diminished.
We are pleased to report that in the Lipper Analytical Services, Inc.
rankings our Fund earned a #1 ranking for one year among 42 New York State
tax-exempt money market funds and for ten years among 13 New York State
tax-exempt money market funds for periods ended December 31, 1996. The purchase
of quality securities selected for safety and liquidity remains the primary
focus of the Fund.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
2
<PAGE> 3
NEW YORK MONEY FUND
MUNICIPAL FUND FOR NEW YORK INVESTORS
Statement of Net Assets
January 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
INVESTMENTS IN PAR
SECURITIES MATURITY (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
NEW YORK -- 90.4%
Beacon City School District TAN
4.25%................. 06/26/97 $ 2,700 $ 2,703,609
Brewster Central School
District BAN
4.375%................ 06/26/97 4,000 4,007,351
City of New York GO DN
(Toronto Dominion LOC)
(A-1+, VMIG-1)**
3.75%................. 02/01/97 500 500,000
City of New York GO DN
(Chemical Bank LOC)
(A-1, VMIG-1)**
3.70%................. 02/01/97 5,600 5,600,000
City of New York GO DN
(Sumitomo Bank LOC)
(A-1+, VMIG-1)**
3.65%................. 02/01/97 700 700,000
City of New York GO Series B DN
(FGIC Insurance)
(A1+, VMIG-1)**
3.75%................. 02/01/97 300 300,000
City of New York GO Series C-4
DN (Fuji Bank LOC)
(A-1+, VMIG-1)**
3.70%................. 02/01/97 400 400,000
City of New York GO Series E-4
DN (State Street Bank & Trust
Co. LOC) (A-1+, VMIG-1)**
3.65%................. 02/01/97 300 300,000
City of New York GO Series F-5
DN (Mitsubishi Bank LOC)
(A-1+, VMIG-1)**
3.55%................. 02/07/97 6,500 6,500,000
City of New York GO
Series 1994E-2 DN (Industrial
Bank of Japan LOC) (A-1, VMIG-
1)**
3.65%................. 02/01/97 1,000 1,000,000
City of New York GO
Series 1995F DN (Union Bank of
Switzerland LOC) (A-1+, P-1)**
3.55%................. 02/07/97 4,100 4,100,000
City of New York GO
Series 1995F-3 DN (Industrial
Bank of Japan LOC)
(A-1, VMIG-1)**
3.55%................. 02/07/97 2,200 2,200,000
City of New York Housing
Development Corporation
(Columbus Gardens Project)
Series 1993A DN
(Citibank LOC) (A-1)**
3.45%................. 02/07/97 2,185 2,185,000
<CAPTION>
INVESTMENTS IN PAR
SECURITIES MATURITY (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
NEW YORK (CONTINUED)
City of New York Housing
Development Corporation (East
96th St. Project) DN
(Mitsubishi Bank LOC) (A-1+,
VMIG-1)**
3.45%................. 02/07/97 $ 2,000 $ 2,000,000
City of New York Housing
Development Corporation
(Parkgate Tower) Resolution
One Series 1985 DN (Citibank
LOC) (A-1, VMIG-1)**
3.45%................. 02/07/97 2,300 2,300,000
City of New York Housing
Development Corporation
(Queenswood Apartment Project)
DN (Sumitomo Bank LOC)
(VMIG-1)**
3.65%................. 02/07/97 2,525 2,525,000
City of New York IDA (Columbia
Grammar & Preparatory School)
Civic Facility RB Series 1994
DN (Chemical Bank LOC) (A-1)**
3.40%................. 02/07/97 300 300,000
City of New York IDA Tender
Notes (La Guardia Associates)
Series 1985 DN (Banque
Indosuez LOC) (P-1)**
3.55%................. 02/05/97 10,200 10,200,000
City of New York IDA Tender
Notes Field Hotel Association
(JFK Project) DN (Banque
Indosuez LOC) (P-1)**
3.55%................. 02/07/97 12,450 12,450,000
City of New York Municipal
Water & Sewer System Finance
Authority RB Series 1995A DN
(FGIC Insurance)
(A-1+, VMIG-1)**
3.75%................. 02/01/97 8,900 8,900,000
City of New York Tender Option
Bond DN (MBIA Insurance)
(VMIG-1)**
3.67%................. 02/07/97 7,000 7,000,000
City of New York Trust For
Cultural Resources (American
Museum of Natural History) DN
(MBIA Insurance) (A-1+,
VMIG-1)**
3.35%................. 02/07/97 400 400,000
City of New York Trust For
Cultural Resources (Carnegie
Hall)
Series 1985 DN (WestDeutsche
LandesBank Girozentrale LOC)
(A-1, VMIG-1)**
3.35%................. 02/07/97 8,250 8,250,000
</TABLE>
3
<PAGE> 4
NEW YORK MONEY FUND
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN PAR
SECURITIES MATURITY (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
NEW YORK (CONTINUED)
City of New York Trust For
Cultural Resources (Carnegie
Hall)
Series 1990 DN (WestDeutsche
LandesBank Girozentrale LOC)
(A-1, VMIG-1)**
3.35%................. 02/07/97 $ 4,400 $ 4,400,000
City of New York Trust For
Cultural Resources (The Museum
of Broadcasting) Series 1989
DN (Sumitomo Bank LOC)
(A-1+, VMIG-1)**
3.45%................. 02/07/97 9,100 9,100,000
City of Syracuse IDA Syracuse
University (Eggers Hall)
Series 1993 DN (Morgan
Guaranty LOC) (A-1+)**
3.50%................. 02/01/97 3,500 3,500,000
Dormitory Authority of The
State of New York (Beverwyck,
Inc.) DN (Banque Paribas LOC)
(P-1)**
3.60%................. 02/07/97 6,100 6,100,000
Dormitory Authority of The
State of New York (Cornell
University) Series 1990B DN
(SP-1+, VMIG-1)**
3.50%................. 02/01/97 1,700 1,700,000
Dormitory Authority of The
State of New York
(Metropolitan Museum of Art)
Series 1993A DN
(A-1+, VMIG-1)**
3.40%................. 02/07/97 1,720 1,720,000
Dormitory Authority of The
State of New York RB (Memorial
Sloan-Kettering Cancer Center)
MB (Chemical Bank LOC)
(A-1, VMIG-1)
3.35%................. 02/14/97 600 600,000
3.50%................. 03/06/97 1,035 1,035,000
3.50%................. 05/15/97 2,140 2,140,000
Dormitory Authority of The
State of New York Series 1989A
TECP (Dai-Ichi Kangyo LOC)
(A-1, P-1)
3.45%................. 02/13/97 3,125 3,125,000
3.65%................. 03/06/97 1,562 1,562,000
East Irondequiot Central School
District BAN Series 1997
4.125%................ 01/21/98 1,260 1,264,412
Erie County RAN Series 1996A
(Union Bank of Switzerland
LOC) (MIG-1)
4.25%................. 04/17/97 3,000 3,003,863
<CAPTION>
INVESTMENTS IN PAR
SECURITIES MATURITY (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
NEW YORK (CONTINUED)
Erie County Water Authority
Water Works System Series
1993A DN (AMBAC Insurance)
(A-1+, VMIG-1)**
3.35%................. 02/07/97 $ 600 $ 600,000
Erie County Water Authority
Water Works System Series
1993B DN (AMBAC Insurance)
(A-1+, VMIG-1)**
3.35%................. 02/07/97 2,100 2,100,000
Glens Falls School District RAN
Series 1996
4.25%................. 06/30/97 3,550 3,554,881
Huntington Union Free School
District TAN Series 1996
(MIG-1)
4.15%................. 06/24/97 2,000 2,002,259
Kenmore -- Town of Tonawanda
Union Free School District BAN
4.00%................. 05/08/97 1,410 1,410,535
Metropolitan Transportation
Authority Commuter Facilities
Series 1991 DN (Morgan
Guaranty LOC)
(A-1+, VMIG-1)**
3.50%................. 02/07/97 5,900 5,900,000
Monroe County IDA (Canal Ponds
Business Park Project)
Series 1995D DN
(Fleet Bank LOC)
(A-1, VMIG-1)**
3.55%................. 02/07/97 5,150 5,150,000
Monroe County IDRB (Emerson
Electric) MB
3.85%................. 07/01/97 2,290 2,290,000
Montgomery County IDRB (Service
Merchandise Company) DN
(Barclays Bank LOC)
(A-1+, VMIG-1)**
3.55%................. 02/18/97 4,700 4,700,000
Nassau County IDA (Cold Spring
Harbor Laboratory Project)
Series 1989 DN (Morgan
Guaranty LOC) (A-1+)**
3.60%................. 02/01/97 900 900,000
Nassau County IDA (Cold Spring
Harbor Laboratory Project)
Series 1993 DN (Morgan
Guaranty LOC) (A-1+)**
3.60%................. 02/01/97 600 600,000
New York City GO Series 1995F-2
DN (Toronto Dominion LOC)
(A-1+, VMIG-1)**
3.45%................. 02/07/97 500 500,000
</TABLE>
4
<PAGE> 5
NEW YORK MONEY FUND
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN PAR
SECURITIES MATURITY (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
NEW YORK (CONTINUED)
New York City GO Series 1995F-4
DN (LandesBank Hessen LOC) (A-1+,
VMIG-1)**
3.55%................. 02/07/97 $ 1,100 $ 1,100,000
New York City GO TECP
(A-1+, VMIG-1)
3.60%................. 06/13/97 4,100 4,100,000
New York City Housing
Development Corporation DN
(Federal National Mortgage
Association) (A-1+)**
3.35%................. 02/07/97 200 200,000
New York City Municipal Water
TECP (Canadian Imperial Bank
LOC) (A-1+, P-1)
3.40%................. 02/21/97 6,000 6,000,000
New York Local Government
Assistance Corporation Bonds
Series 1995F DN (Toronto
Dominion LOC)
(A-1+, VMIG-1)**
3.40%................. 02/07/97 3,200 3,200,000
New York State Energy, Research
& Development Authority PCRB
MB (Union Bank of Switzerland
LOC) (A-1+, VMIG-1)
3.60%................. 12/01/97 2,065 2,065,000
New York State Energy, Research
& Development Authority
(Brooklyn Gas Facilities
Project) RB Series 1997A DN
(MBIA Insurance) (A-1+,
VMIG-1)**
3.40%................. 02/07/97 5,000 5,000,000
New York State Energy, Research
& Development Authority PCRB
(Central-Hudson Gas & Electric
Corporation) Series A DN
(Bankers Trust LOC)
(A-1+, VMIG-1)**
3.25%................. 02/06/97 2,000 2,000,000
New York State Energy, Research
& Development Authority PCRB
(New York State Electric &
Gas) Series 1985A MB (Morgan
Guaranty LOC) (A-1+)
3.25%................. 03/15/97 1,000 1,000,000
New York State Energy, Research
& Development Authority PCRB
(New York State Electric &
Gas) Series 1985B MB (Union
Bank of Switzerland LOC)
3.75%................. 10/15/97 2,000 2,000,000
<CAPTION>
INVESTMENTS IN PAR
SECURITIES MATURITY (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
NEW YORK (CONTINUED)
New York State Energy, Research
& Development Authority PCRB
(Niagara Mohawk Power) DN
(Westpac Banking Corp LOC)
(P-1)**
3.70%................. 02/01/97 $ 5,300 $ 5,300,000
New York State Energy, Research
& Development Authority PCRB
(Niagara Mohawk Power)
Series 1985C DN (Canadian
Imperial Bank LOC) (P-1)**
3.70%................. 02/01/97 5,350 5,350,000
New York State Energy, Research
& Development Authority PCRB
(Rochester Gas & Electric) DN
(Bank of New York LOC)
(A-1, VMIG-1)**
3.25%................. 02/03/97 11,500 11,500,000
New York State Energy, Research
& Development Authority PCRB
MB (Deutsche Bank LOC)
(MIG-1)
3.25%................. 03/01/97 4,000 4,000,000
New York State Housing Finance
Agency (Mount Sinai School of
Medicine) Series A DN (Sanwa
Bank LOC) (A-1+, VMIG-1)**
3.25%................. 02/07/97 3,200 3,200,000
New York State Housing Finance
Agency, Multi-Family Housing
RB Series 1988A DN (AMBAC
Insurance) (A-1+, VMIG-1)**
3.45%................. 02/07/97 700 700,000
New York State Housing Finance
Authority (Normandie Court I)
Series 1991A DN (Societe
Generale LOC)
(A-1+, VMIG-1)**
3.45%................. 02/07/97 15,500 15,500,000
New York State IDA Civic
Facilities (National Audubon
Society) Series 1989 DN (Swiss
Bank LOC) (VMIG-1)**
3.50%................. 02/01/97 100 100,000
New York State Job Development
Authority Series A DN
(Sumitomo Bank LOC) (A-1,
VMIG-1)**
3.45%................. 02/03/97 865 865,000
New York State Job Development
Authority Special Purpose
Bonds Series 1984C DN
(Sumitomo Bank LOC) (A-1,
VMIG-1)**
3.50%................. 02/03/97 6,970 6,970,000
</TABLE>
5
<PAGE> 6
NEW YORK MONEY FUND
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN PAR
SECURITIES MATURITY (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
NEW YORK (CONTINUED)
New York State Job Development
Authority Special Purpose Bonds
Series 1984D DN (Sumitomo Bank
LOC) (A-1, VMIG-1)**
3.50%................. 02/03/97 $ 335 $ 335,000
New York State Job Development
Authority Special Purpose
Bonds Series 1984E DN
(Sumitomo Bank LOC) (A-1,
VMIG-1)**
3.50%................. 02/03/97 1,525 1,525,000
New York State Job Development
Authority Special Purpose
Bonds Series 1984F DN
(Sumitomo Bank LOC) (A-1,
VMIG-1)**
3.50%................. 02/03/97 2,075 2,075,000
New York State Job Development
Authority Special Purpose
Bonds Series 1984G DN
(Sumitomo Bank LOC) (A-1,
VMIG-1)**
3.50%................. 02/03/97 2,795 2,795,000
New York State Job Development
Authority Special Purpose
Bonds Series 1984H DN
(Sumitomo Bank LOC) (A-1,
VMIG-1)**
3.50%................. 02/03/97 1,620 1,620,000
New York State Local Assistance
Corporation DN (Multiple
Credit Enhancements)
(A-1+, VMIG-1)**
3.45%................. 02/07/97 4,500 4,500,000
New York State Power Authority
Revenue & General Purpose
Bonds MB (A-1, VMIG-1)
3.70%................. 03/01/97 15,300 15,300,000
New York State Power Authority
TECP (A-1, P-1)
3.55%................. 03/10/97 1,500 1,500,000
New York State Solid Waste
Management Authority (North
Hempstead) DN (National
Westminster LOC)
(A-1+, VMIG-1)**
3.45%................. 02/07/97 50 50,000
New York Thruway Authority
General Revenue DN (FGIC
Insurance) (VMIG-1)**
3.65%................. 02/01/97 4,500 4,500,000
Niagara Falls Toll Bridge
Series 1993A DN
(FGIC Insurance)
(A-1+, VMIG-1)**
3.35%................. 02/07/97 300 300,000
<CAPTION>
INVESTMENTS IN PAR
SECURITIES MATURITY (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
NEW YORK (CONTINUED)
Sachem Central School District
at Holbrook Suffolk County TAN
Series 1996-97 (MIG-1)
4.125%................ 06/26/97 $ 2,000 $ 2,002,295
Smithtown Central School
District Suffolk County TAN
4.50%................. 06/26/97 6,800 6,816,883
South Glens Falls GO RAN
4.25%................. 06/27/97 4,775 4,781,419
Suffolk County Water Authority
BAN DN (Bank of Nova Scotia
LOC) (VMIG-1)**
3.45%................. 02/07/97 2,200 2,200,000
Triborough Bridge & Tunnel
Authority DN (FGIC Insurance)
(A-1+, VMIG-1)**
3.40%................. 02/07/97 400 400,000
Yonkers IDA Civic Facility RB
(Consumers Union Facility)
Series 1994 DN (AMBAC
Insurance) (A-1+, VMIG-1)**
3.40%................. 02/07/97 1,000 1,000,000
------------
285,629,507
------------
PUERTO RICO -- 9.3%
Puerto Rico Government
Development Bank Series 1985
DN (Credit Suisse LOC)
(A-1+, VMIG-1)**
3.20%................. 02/07/97 3,500 3,500,000
Puerto Rico Government
Development Bank TECP (A-1)
3.35%................. 02/21/97 6,500 6,500,000
3.50%................. 05/09/97 2,900 2,900,000
Puerto Rico Highway &
Transportation Authority RB
Series X DN (Landesbank
Hessen-Thuringen LOC)
(A-1+, VMIG-1)**
3.20%................. 02/07/97 5,600 5,600,000
Puerto Rico Industrial, Medical
& Higher Education RB
(Inter American University of
Puerto Rico) Series 1988 MB
(Bank of Tokyo LOC) (VMIG-1)
3.55%................. 02/06/97 3,900 3,900,000
Puerto Rico Medical Higher
Education & Environmental PCRB
(Ana G. Mendez Educational
Foundation Project) DN (Bank
of Tokyo LOC) (A-1+, VMIG-1)**
3.55%................. 02/07/97 7,100 7,100,000
------------
29,500,000
------------
</TABLE>
6
<PAGE> 7
NEW YORK MONEY FUND
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $315,129,507*)........... 99.7% $315,129,507
OTHER ASSETS IN EXCESS OF
LIABILITIES.................... 0.3% 997,045
--
------------
NET ASSETS (Equivalent to $1.00
per share based on 312,073,259
Money Shares and 4,082,032
Dollar Shares of capital stock
outstanding)................... 100.0% $316,126,552
===== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($316,126,552 / 316,155,291)............. $1.00
=====
</TABLE>
- ---------------
* Aggregate cost for federal income tax purposes is
substantially the same.
** Variable rate demand notes -- the interest rate shown
is as of January 31, 1997, and the maturity date shown
is the longer of (i) the next interest readjustment
date or (ii) the date on which the principal amount
owed can be recovered through demand.
The Moody's Investors Service, Inc. and Standard &
Poor's Ratings Group ratings indicated are believed to
be the most recent ratings available at January 31,
1997.
- ---------------------------------------------------------
NEW YORK MONEY FUND
SUPPLEMENTARY INFORMATION
Maturity Schedule of Portfolio
January 31, 1997
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
-------------- ------------ ----------
<S> <C> <C>
1-30 Days $262,990,000 83.5%
31-60 Days 5,097,000 1.6%
61-90 Days 5,000,000 1.6%
91-120 Days 6,450,000 2.0%
121-150 Days 29,925,000 9.5%
Over 150 Days 5,615,000 1.8%
</TABLE>
Average Weighted Maturity of Portfolio -- 29 days
- ---------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT ABBREVIATIONS:
<S> <C>
BAN Bond Anticipation Note
DN Demand Note
GO General Obligation
IDA Industrial Development Authority
IDRB Industrial Development Revenue Bond
LOC Letter of Credit
MB Municipal Bond
PCRB Pollution Control Revenue Bond
RAN Revenue Anticipation Note
RB Revenue Bond
TAN Tax Anticipation Note
TECP Tax-Exempt Commercial Paper
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 8
NEW YORK MONEY FUND
MUNICIPAL FUND FOR NEW YORK INVESTORS, INC.
Statement of Operations
Six Months Ended January 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Investment income:
Interest income......................................................... $4,937,578
----------
Expenses:
Investment advisory fees................................................ 283,974
Administration fees..................................................... 283,974
Service Organization fees: Dollar Shares................................ 3,759
Legal and audit fees.................................................... 35,597
Directors' and officer's fees and expenses.............................. 17,010
Custodian fees.......................................................... 35,900
Transfer agent fees..................................................... 15,083
Printing................................................................ 6,781
Shareholder computer access program..................................... 12,516
Miscellaneous........................................................... 10,773
----------
705,367
Fees waived by Investment Adviser and Administrators.................... (417,686)
----------
Total expenses....................................................... 287,681
----------
Net investment income................................................ 4,649,897
Realized gain on investments:
Net realized gain on investments sold................................... 2,689
----------
Net increase in net assets resulting from operations...................... $4,652,586
==========
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 9
NEW YORK MONEY FUND
MUNICIPAL FUND FOR NEW YORK INVESTORS, INC.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JANUARY 31, 1997 JULY 31, 1996
---------------- -------------
(Unaudited)
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income................................. $ 4,649,897 $ 8,839,249
Net realized gain on investments sold................. 2,689 4
------------ ------------
Net increase in net assets resulting from
operations.......................................... 4,652,586 8,839,253
------------ ------------
Dividends to shareholders from net investment income:
Money Shares.......................................... (4,604,639) (8,838,972)
Dollar Shares......................................... (45,258) (277)
Plus Shares........................................... -- --
------------ ------------
Total dividends to shareholders....................... (4,649,897) (8,839,249)
------------ ------------
Increase in net assets from Fund share transactions...... 43,959,064 25,514,513
------------ ------------
Net increase in net assets............................ 43,961,753 25,514,517
Net assets:
Beginning of period...................................... 272,164,799 246,650,282
------------ ------------
End of period............................................ $316,126,552 $ 272,164,799
============ ============
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 10
NEW YORK MONEY FUND
MUNICIPAL FUND FOR NEW YORK INVESTORS, INC.
Financial Highlights
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MONEY SHARES
------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JANUARY 31, 1997 JULY 31, 1996 JULY 31, 1995 JULY 31, 1994 JULY 31, 1993 JULY 31, 1992
---------------- ------------- ------------- ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income..... 0.0165 0.0339 0.0338 0.0226 0.0230 0.0321
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
from
Net Investment Income... (0.0165) (0.0339) (0.0338) (0.0226) (0.0230) (0.0321)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return................... 3.36%(2) 3.44% 3.43% 2.29% 2.33% 3.26%
Ratios/Supplemental Data:
Net Assets, End of Period
$(000).................. 312,045 272,145 246,650 279,483 204,670 267,655
Ratio of Expenses to
Average Daily
Net Assets(1)........... 0.20%(2) 0.20% 0.20% 0.20% 0.25% 0.30%
Ratio of Net Investment
Income to
Average Daily Net
Assets............... 3.28%(2) 3.37% 3.36% 2.28% 2.31% 3.20%
</TABLE>
- ---------------
(1) Operating expense ratios before waivers of fees by the Investment Adviser
and Administrators for Money Shares for the six months ended January 31,
1997 and the years ended July 31, 1996, 1995, 1994, 1993 and 1992 were
.49%(annualized), .50%, .49%, .48%, .51% and .49% , respectively.
(2) Annualized.
See Notes to Financial Statements.
10
<PAGE> 11
NEW YORK MONEY FUND
MUNICIPAL FUND FOR NEW YORK INVESTORS, INC.
Financial Highlights
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
DOLLAR SHARES
---------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED YEAR ENDED YEAR ENDED
ENDED JULY 31, JULY 31, JULY 31, YEAR ENDED YEAR ENDED
JANUARY 31,1997 1996(3) 1995(3) 1994(3) JULY 31, 1993 JULY 31, 1992
---------------- -------------- -------------- -------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment
Income............... 0.0153 0.0089 0.00 0.0127 0.0205 0.0296
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends to
Shareholders from
Net Investment
Income............ (0.0153) (0.0089) 0.00 (0.0127) (0.0205) (0.0296)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return................ 3.11%(2) 3.05%(2) -- 1.96%(2) 2.08% 3.01%
Ratios/Supplemental Data:
Net Assets, End of
Period $(000)........ 4,082 20 -- -- 46,509 50,094
Ratio of Expenses to
Average Daily
Net Assets(1)........ .45%(2) .45%(2) -- 0.45%(2) 0.50% 0.55%
Ratio of Net Investment
Income to
Average Daily Net
Assets............ 3.03%(2) 3.07%(2) -- 1.94%(2) 2.06% 2.95%
</TABLE>
- ---------------
(1) Operating expense ratios before waivers of fees by the Investment Adviser
and Administrators for Dollar Shares for the six months ended January 31,
1997 and the years ended July 31, 1996, 1994, 1993 and 1992 were .74%
(annualized), .75% (annualized), .73% (annualized), .76% and .74%,
respectively.
(2) Annualized.
(3) There were no Dollar Shares outstanding during the period from March 28,
1994 to April 14, 1996.
See Notes to Financial Statements.
11
<PAGE> 12
NEW YORK MONEY FUND
MUNICIPAL FUND FOR NEW YORK INVESTORS, INC.
Financial Highlights
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
PLUS SHARES
---------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
JANUARY 31, JULY 31, JULY 31, YEAR ENDED YEAR ENDED YEAR ENDED
1997(3) 1996(3) 1995(3) JULY 31, 1994 JULY 31, 1993 JULY 31, 1992
----------------- -------------- -------------- ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment
Operations:
Net Investment
Income............... 0.00 0.00 0.0090 0.0201 0.0205 0.0296
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends to
Shareholders from Net
Investment Income.... 0.00 0.00 (0.0090) (0.0201) (0.0205) (0.0296)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return................ -- -- 2.69%(2) 2.04% 2.08% 3.01%
Ratios/Supplemental Data:
Net Assets, End of
Period $(000)........ -- -- -- 435 1,481 243
Ratio of Expenses to
Average Daily
Net Assets(1)........ -- -- 0.45%(2) 0.45% 0.50% 0.55%
Ratio of Net Investment
Income to
Average Daily Net
Assets............ -- -- 2.64%(2) 2.03% 2.06% 2.95%
</TABLE>
- ---------------
(1) Operating expense ratios before waivers of fees by the Investment Adviser
and Administrators for Plus Shares for the years ended July 31, 1995, 1994,
1993 and 1992 were .73% (annualized), .73%, .76% and .74%, respectively.
(2) Annualized.
(3) There were no Plus Shares outstanding during the period from December 2,
1994 to January 31, 1997.
See Notes to Financial Statements.
12
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Municipal Fund for New York Investors, Inc. (the "Company") is a no-load,
non-diversified, open-end management investment company registered under the
Investment Company Act of 1940, as amended. The Company offers three series of
shares--New York Money ("Money"), New York Money Dollar ("Dollar"), and New York
Money Plus ("Plus"). Shares of each series represent equal pro rata interests in
a single investment portfolio of the Company and are identical in all respects
except that the Dollar and Plus Shares bear the service fees described below and
are entitled to vote separately on matters relating to these fees.
Dollar Shares are sold pursuant to a non-12b-1 Shareholder Services Plan to
institutions other than broker/dealers, and Plus Shares are sold pursuant to a
12b-1 Services Plan only to broker/dealers which enter into agreements with the
Company requiring them to provide certain support services to their customers in
consideration of the Company's payment of .25% (on an annualized basis) of the
average daily net asset value of such shares held by the institutions on behalf
of their customers. Dividends paid to Dollar and Plus shareholders are reduced
by such fees. In addition, broker/dealers purchasing Plus Shares may be
requested to provide assistance in connection with the distribution of such
shares. Money Shares are sold to institutional investors who choose not to enter
into such servicing agreements with the Company.
Certain New York municipal obligations in the Company's portfolio may be
obligations of issuers which rely in whole or in part on New York State
revenues, real property taxes, revenues from health care institutions, or
obligations secured by mortgages on real property. Consequently, the possible
effect of economic conditions in New York State and of New York law on these
obligations must be considered.
2. Significant Accounting Policies
The preparation of financial statements in conformity 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 statement and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates. The
following is a summary of significant accounting policies consistently followed
by the Company in the preparation of its financial statements.
Portfolio valuation--Portfolio securities of the Company are valued at
amortized cost which approximates market value. Amortized cost valuation
involves valuing an instrument at its cost initially and, thereafter, assuming a
constant amortization to maturity of any discount or premium.
Securities transactions and investment income--Securities transactions are
recorded on the trade date. Realized gains and losses on investments sold are
recorded on the identified cost basis. Interest income is recorded on the
accrual basis.
Dividends and distributions to shareholders--It is the policy of the Company
to declare dividends from net investment income daily and to pay such dividends
within five business days of the end of each month. Net realized capital gains,
if any, are distributed at least annually.
Federal taxes--No provision is made for federal income or excise taxes since
the Company intends to continue to qualify as a regulated investment company by
complying with the applicable requirements of the Internal Revenue Code of 1986,
as amended, and by distributing all of its earnings to its shareholders.
13
<PAGE> 14
3. Investment Advisory Fee, Administration Fee and Other Related Party
Transactions
The Company has entered into an Investment Advisory Agreement with PNC
Institutional Management Corporation (the "Investment Adviser"), an indirect
wholly-owned subsidiary of PNC Bank, National Association ("PNC Bank"). PNC Bank
serves as the Company's subinvestment adviser pursuant to a Sub-Advisory
Agreement. Under the Investment Advisory Agreement, the Investment Adviser is
entitled to receive a fee from the Company, computed daily and payable monthly,
at an annual rate of .20% of the Company's average daily net assets.
Provident Distributors, Inc. ("PDI") is the Company's distributor. No
compensation is payable by the Company to PDI for its distribution services.
The Company has entered into an Administration Agreement with PFPC Inc.
("PFPC"), an indirect wholly-owned subsidiary of PNC Bank, and PDI (the
"Administrators"), for certain administrative services. Pursuant to their
administrative agreement with the Company, PFPC and PDI jointly are entitled to
receive a fee at an annual rate of .20% of the Company's average daily net
assets.
The Investment Adviser and Administrators have agreed to reduce the advisory
and administration fees otherwise payable to them and to reimburse the Company
for its operating expenses to the extent necessary to ensure that its annual
operating expense ratio (excluding fees paid to Service Organizations pursuant
to Servicing Agreements) does not exceed .20% of the Company's average daily net
assets.
For the six months ended January 31, 1997, the Investment Adviser and
Administrators voluntarily waived fees totaling $417,686.
Expenses include legal fees amounting to $19,500 paid to counsel to the
Company, a partner of which is secretary of the Company.
PNC Bank is the Company's custodian and PFPC is transfer agent.
Service Organization fees of $3,736 were paid to affiliates of PNC Bank for
the six months ended January 31, 1997.
4. Fund Shares
Since the Company has sold, issued as reinvestments of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares is the same as the following amounts for such transactions.
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1997 JULY 31, 1996
---------------- ---------------
(Unaudited)
<S> <C> <C>
Sold
Money shares....... $ 722,947,375 $ 1,050,446,668
Dollar shares...... 32,083,297 40,000
Plus shares........ -- --
Issued as
reinvestments of
dividends
Money shares....... 125,885 143,673
Dollar shares...... -- --
Plus shares........ -- --
Redeemed
Money shares....... (683,176,228) (1,025,095,828)
Dollar shares...... (28,021,265) (20,000)
Plus shares........ -- --
------------- ---------------
Net increase......... $ 43,959,064 $ 25,514,513
============= ===============
</TABLE>
The authorized capital of the Company consists of 1.4 billion Money Shares,
300 million Dollar Shares and 300 million Plus Shares, each with a par value of
$.001 per share.
5. Capital Loss Carryover
At July 31, 1996, a capital loss carryover of $31,428, expiring at various
times from 1997-2003, was available to offset possible future capital gains.
6. Net Assets
At January 31, 1997, net assets consisted of the following:
<TABLE>
<S> <C>
Paid-in capital.............. $316,155,291
Accumulated net realized
losses on investments...... (28,739)
------------
$316,126,552
============
</TABLE>
14
<PAGE> 15
Directors
Thomas A. Melfe
Chairman
Francis E. Drake, Jr.
Rodney D. Johnson
Anthony M. Santomero
Officers
Edward J. Roach
President and Treasurer
Morgan R. Jones
Secretary
Investment Adviser
PNC Institutional Management
Corporation
400 Bellevue Parkway
Wilmington, DE 19809
Co-Administrators
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
Provident Distributors, Inc.
Four Falls Corporate Center
6th Floor
West Conshohocken, PA 19428
Distributor
Provident Distributors, Inc.
Four Falls Corporate Center
6th Floor
West Conshohocken, PA 19428
Transfer Agent
PFPC Inc.
P.O. Box 8950
Wilmington, DE 19885-9628
This report is submitted for
the general information of the
shareholders of the Company.
It is not authorized for
distribution to prospective
investors unless accompanied
or preceded by an effective
prospectus for the Company,
which contains information
concerning its investment
policies as well as other
pertinent information.
PIF-T-012
NEW YORK MONEY FUND
An Investment Portfolio
Offered by
Municipal Fund for
New York Investors, Inc.
Provident Institutional Funds LOGO
Semi-Annual Report
to Shareholders
January 31, 1997
