SEMI-
ANNUAL
REPORT
(PHOTO OF EMPIRE STATE BUILDING APPEARS
HERE)
Smith Barney Shearson
NEW YORK MUNICIPALS
FUND INC.
..............................
JUNE 30, 1994
(LOGO OF SMITH BARNEY APPEARS HERE)
New York Municipals Fund
DEAR SHAREHOLDER:
We are pleased to provide you with the Semi-Annual Report, which
includes the portfolio of investments for Smith Barney Shearson
New York Municipals Fund Inc., for the six-month period ended
June 30, 1994. During the past six months, in response to de-
clining prices for municipal bonds, the Fund's net asset value
declined to $16.29 from $17.68 per Class A share. Investors own-
ing Class A shares received triple tax-exempt distributions of
$.52 per share; investors owning Class B shares received triple
tax-exempt distributions of $.46 per share. The total return for
this six-month period was (5.01)% for Class A shares and (5.31)%
for Class B shares. Further information about the performance of
your investment during this and previous fiscal periods is
available from the "Financial Highlights" section of this re-
port.
MUNICIPAL MARKET AND ECONOMIC OVERVIEW
After a very strong market and rising valuations during most of the Fund's
last
fiscal year, municipal securities experienced increased volatility and declin-
ing prices beginning last November that continued during the first half of the
current fiscal year. The catalyst for this reversal was the Federal Reserve's
aggressive attempt to control inflation by increasing the Federal funds rate
in
four separate moves between February 4, 1994 and May 17, 1994 and the discount
rate, two very sensitive indicators of the direction of interest rates. The
textbook result of an increase in short-term rates is slower economic growth
and low long-term interest rates. However, at the time there were many
leveraged investments in the marketplace based on short-term interest rates
staying low. As short-term rates rose, investors met liquidity demands by
sell-
ing long-term U.S. Treasuries which caused an unintended and unwarranted rise
in long-term interest rates. Interest rates on municipal securities followed
suit as dealers sold their municipal inventory in order to meet the selling
de-
mands of Treasury investors. This uncertain investment environment caused many
investors to purchase shorter maturities which are generally less volatile
than
longer-term issues.
It's clear to us from the Federal Reserve's actions of the last few months
that
they will continue to raise interest rates as long as they see inflation
build-
ing into the economy. But we believe that it will be later in the year before
we see any further movement in rates by the Federal Reserve. We think that the
slowdown in mortgage refinancings, new construction and sales of single family
homes will translate into a slowdown in economic growth. In addition, job
growth and wage growth have not been contributing much strength to the
economy.
The real issue is whether or not the economy reaches the equilibrium state of
growth with low inflation that the Federal Reserve is striving for.
1
The increase in economic growth has been a boon to the tax receipts for both
New York State and New York City. New York State ended its fiscal year with a
fairly sizable budget surplus. However, as this is an election year, the Demo-
cratic governor and the Republican legislature appeared to be using this
budget
surplus as a bargaining chip. This unfortunately delayed the enactment of the
state budget by almost fifty days, which also set a new record for lateness,
and caused a fair amount of uneasiness in the investment community. Putting
po-
litical posturing aside, the good news is that the budget surplus is real and
a
new budget has been passed. The bad news is that personal income taxes have
not
been reduced, keeping New York residents among the most highly taxed in the
na-
tion.
New York City is still in a period of retrenchment. Although the new mayor's
cost-containment and bureaucracy-reducing policies are encouraging, the jury
is
still out. Mayor Giuliani has been in office only six months, and we think
that
it will take another six months before we can reasonably ascertain the success
of his Administration's policies.
PORTFOLIO STRATEGY
The differing prospects for New York City and New York State naturally have
in-
fluenced our investment decisions for the Fund. We have not been avoiding New
York City paper or reduced our positions in it because of our cautiously-opti-
mistic confidence in Mayor Giuliani. New York City bonds were 96.2% of the
Fund's assets as of June 30, 1994 which is consistent with the way we have
man-
aged the portfolio for the past two years. We are impressed with New York
State's almost $400 million surplus, and of the opinion that we might see a
move by the rating agencies before the end of 1994 to raise the ratings on New
York State and state agency debt. The agencies are always rated one notch
below
the State's general obligation debt, and if we see an upgrade in the New York
State debt, the agencies' debt would be increased accordingly. Consequently,
we
are looking very favorably on New York State and state agency debt and have
been concentrating the Fund's assets in state agency debt.
As the interest rate rise continued through the first quarter of 1994, we
shortened the Fund's average maturity to avoid some of the volatility of the
long-term bond market. More recently, believing that the worst of the interest
rate rise is behind us, we have begun extending the average maturity of the
Fund, currently at approximately 23 years, to try and capture a little bit
more
yield. This higher yield will be important to maintaining the Fund's income
stream which has been reduced by the bond calls and refinancings of the past
year and will continue to be challenged by bond calls during the rest of 1994.
As we recently wrote to you, this situation is responsible for the reduction
in
the Fund's monthly distribution to shareholders. The longer average maturity
also reflects the improvement in the state budget and our belief
2
that New York State debt will be upgraded sometime in 1994. We have invested
the Fund's holdings in hospital issues, housing, general obligations and
educa-
tion issues.
The past six months were a difficult investment environment, but we believe we
have been successful in meeting our stated investment objective of providing
investors with a high level of dividend income exempt from Federal income
taxes
and New York State and City personal income taxes consistent with the
preserva-
tion of capital. During the next six months we will endeavor to do the same,
and look forward to reporting to you in the Fund's Annual Report.
Sincerely,
/s/ Heath B. McLendon /s/ Lawrence T. McDermott
Heath B. McLendon Lawrence T. McDermott
Chairman of the Board Vice President and Invest-
ment Officer
August 22, 1994
3
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio Highlights (unaudited) June 30, 1994
Industry Breakdown
Pie chart depicting the allocation of the New York Municipals Fund's
investment
securities held at June 30, 1994 by industry classification. The pie is broken
in pieces representing industries in the following percentages:
Industry Percentage
Industrial Control 3.9%
Housing 17.1%
Transportation 7.4%
Pollution Control 5.8%
Hospital 20.9%
Net Other Assets and Liabilities 0.3%
Utility Revenue 7.1%
General Obligations 16.5%
Other 10.3%
Education 10.7%
Summary of Municipal Bonds and Short-Term Tax-Exempt Investments by Combined
Ratings
<TABLE>
<CAPTION>
Standard &
Percent
Moody's Poor's
of Value
- ------------------------------------------------------------------------------
- -----------------------------
<S> <C> <C>
<C>
Aaa or AAA
24.1%
- ------------------------------------------------------------------------------
- -----------------------------
Aa AA
16.0
- ------------------------------------------------------------------------------
- -----------------------------
A A
26.2
- ------------------------------------------------------------------------------
- -----------------------------
Baa BBB
26.8
- ------------------------------------------------------------------------------
- -----------------------------
Ba BB
2.5
- ------------------------------------------------------------------------------
- -----------------------------
B B
0.3
- ------------------------------------------------------------------------------
- -----------------------------
NR NR
2.9
- ------------------------------------------------------------------------------
- -----------------------------
VMIG1 A1
1.2
- ------------------------------------------------------------------------------
- -----------------------------
100.0%
- ------------------------------------------------------------------------------
- -----------------------------
</TABLE>
Average Maturity: 22.99 years
4
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) June 30, 1994
Key to Insurance Abbreviations
----------------------------------------------------------------------
AMBAC -- American Municipal Bond Assurance Corporation
CAPGTY-- Capital Guaranty
FGIC -- Federal Guaranty Insurance Corporation
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- 98.5%
New York -- 95.6%
$3,795,000 Babylon, New York, Industrial
Development Agency, Recycling Facilities
Revenue, (Babylon Recycling Center,
Inc.), Series A, (in default),
8.875% due 3/1/2011 NR NR $
1,897,500
Babylon, New York, Industrial
Development Agency, Resource Recovery
Revenue, (Odgen Martin Systems, Babylon,
Inc.):
2,995,000 Series B,
8.500% due 1/1/2019 Baa1 NR
3,279,525
2,950,000 Series C,
8.500% due 1/1/2019 Baa1 NR
3,230,250
2,000,000 Babylon, New York, Industrial
Development Agency, Waste Facilities
Revenue, (Babylon Community Waste
Management), Series A, 7.875% due
7/1/2006 (Prerefunded 7/1/1999) Baa1 NR
2,277,500
Battery Park City Authority, New York,
Housing Revenue:
Refunding, Series A:
5,000,000 FHA Insured, Mortgage Loan,
5.750% due 6/1/2023 NR AAA
4,500,000
4,850,000 Junior Note,
5.800% due 11/1/2022 A A
4,340,750
5,000,000 Senior Note,
5.700% due 11/1/2020 A1 AA
4,518,750
35,000 Battery Park City Authority, New York,
POD Housing Revenue, (FHA Insured),
8.625% due 6/1/2023 (Prerefunded
6/1/2005) NR NR
41,956
</TABLE>
See Notes to Financial Statements.
5
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
$1,300,000 Buffalo, New York, Municipal Water
Finance Authority Water Systems Revenue,
(FSA Insured),
5.750% due 7/1/2019 Aaa AAA $
1,231,750
500,000 Buffalo, New York, Refunding Bonds,
(FGIC Insured),
6.250% due 1/1/2116 Aaa AAA
508,750
700,000 Central Square, New York, Central School
District (FGIC Insured),
6.500% due 6/15/2000 Aaa AAA
756,000
250,000 Chautauqua County, New York, Industrial
Development Agency, Industrial
Development Revenue Bonds, (Ralston
Purina Company Project),
9.800% due 2/1/2001 Baa1 NR
265,313
3,500,000 Dutchess County, New York, Resource
Recovery Agency, Revenue Bonds, (Solid
Waste Management), Series A (FGIC
Insured),
7.500% due 1/1/2009 Aaa AAA
3,871,875
1,000,000 Erie County, New York, Industrial
Development Agency, Industrial
Development Bonds,
(Peter J. Schmitt Company Project),
10.750% due 12/1/2014 NR NR
1,058,750
Green Island, New York, General
Obligation Bonds:
100,000 9.375% due 11/1/2001 Baa NR
118,875
125,000 9.375% due 11/1/2002 Baa NR
150,156
4,000,000 Hempstead Town, New York, Industrial
Development Agency, Resource Recovery
Revenue Bonds, (American Fuel Company),
7.400% due 12/1/2010 Baa1 A-
4,185,000
500,000 Huntington, New York, Refunding Bonds,
(FGIC Insured),
5.500% due 4/1/2017 Aaa AAA
461,875
1,000,000 Islip, New York, Community Development
Agency, (New York Institute of
Technology), (Demonstration Project),
Revenue Bonds, 7.125% due 10/1/2006 Aa3 AA
1,048,750
</TABLE>
See Notes to Financial Statements.
6
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
$1,875,000 Lincoln Towers, New York, Housing
Corporation, Mortgage Revenue Bonds,
(Lincoln Towers Project),
11.250% due 1/1/2015 NR NR $
2,015,625
Lockport Town, New York, Refunding
Bonds, (MBIA Insured):
435,000 5.400% due 3/1/2012 Aaa AAA
405,638
430,000 5.400% due 3/1/2013 Aaa AAA
400,438
425,000 5.400% due 3/1/2014 Aaa AAA
394,719
415,000 5.400% due 3/1/2015 Aaa AAA
384,913
Metropolitan Transportation Authority,
New York, Transit Facilities Revenue:
3,700,000 Series J, (FGIC Insured),
6.500% due 7/1/2018 Aaa AAA
3,774,000
8,500,000 Series K, (AMBAC Insured),
6.000% due 7/1/2016 Aaa AAA
8,276,875
3,630,000 Series M,
6.000% due 7/1/2014 Baa BBB+
3,398,588
5,440,000 Service Contract, Series N,
7.125% due 7/1/2009 Baa1 BBB
5,691,600
Service Contract, Series P:
1,575,000 Commuter Facility,
5.750% due 7/1/2015 Baa1 BBB
1,427,344
4,000,000 Transportation Facility,
5.75% due 7/1/2015 Baa1 BBB
3,625,000
4,800,000 Service Contract, Series 5,
6.500% due 7/1/2016 Baa1 BBB
4,754,400
1,250,000 Monroe County, New York, Airport
Authority, Airport Revenue, (Greater
Rochester International Airport), (MBIA
Insured),
7.250% due 1/1/2019 Aaa AAA
1,356,250
Monroe County, New York, Industrial
Development Agency, Revenue Bonds:
2,700,000 Civic Facility, (Al Sigl Center),
Series A, 8.000% due 12/15/2003 NR A
2,902,500
990,000 Civic Facility, (Genesee Hospital),
Series A, 6.500% due 11/1/1999 A NR
1,013,513
</TABLE>
See Notes to Financial Statements.
7
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
$3,405,000 Nassau County, New York, Combined Sewer
Districts, General Obligation Bonds,
Refunding Bonds, Series G, (MBIA
Insured),
5.400% due 1/15/2010 Aaa AAA $ 3,226,238
New York City, New York, General
Obligation Bonds:
5,000,000 6.600% due 8/1/2009 Baa1 A- 5,031,250
3,000,000 Series A,
6.250% due 8/1/2018 Baa1 A- 2,865,000
3,000,000 Series B,
5.850% due 10/1/2007 Baa1 A- 3,048,750
Series C:
1,000,000 7.750% due 9/1/2006 Baa1 A- 1,058,750
4,000,000 6.500% due 8/1/2007 Baa1 A- 4,030,000
Series D:
255,000 8.000% due 8/1/2004 Aaa AAA 279,225
1,245,000 (MBIA Insured),
8.000% due 8/1/2004 (Prerefunded
8/1/1997) Aaa AAA 1,385,063
5,500,000 Series H,
7.000% due 2/1/2021 Baa1 A- 5,768,125
Series I, (AMBAC Insured):
1,850,000 7.250% due 8/15/2014 Aaa AAA 2,002,625
555,000 7.250% due 8/15/2015 Aaa AAA 600,788
Series I, (Escrowed to Maturity),
(AMBAC Insured):
3,150,000 7.250% due 8/15/2014 Aaa AAA 3,567,375
945,000 7.250% due 8/15/2015 Aaa AAA 1,050,131
4,000,000 Subseries H-1,
6.125% due 08/01/2011 Baa1 A- 3,805,000
6,115,000 New York City, New York, Health
Corporation, Series A,
6.300% due 2/15/2020 Baa BBB 5,885,688
New York City, New York, Housing
Development Corporation, Multifamily
Housing, Pass-Through Certificates:
1,667,247 (Cadman Project),
6.500% due 11/15/2018 NR NR 1,650,574
1,058,034 (Heywood Project),
6.500% due 8/15/2017 NR NR 1,042,163
</TABLE>
See Notes to Financial Statements.
8
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
New York City, New York, Housing
Development Corporation, Multifamily
Housing, Pass-Through Certificates --
(continued)
$ 1,340,344 (Kelly Project),
6.500% due 2/15/2018 NR NR $ 1,326,941
1,724,900 (Riverbend Project),
6.500% due 11/15/2018 NR NR 1,636,499
Series A:
2,313,586 (AMBAC Insured),
6.500% due 12/20/2001 Aaa AAA 2,365,642
(FHA Insured):
5,000,000 7.350% due 6/1/2019 NR AAA 5,306,250
4,000,000 6.600% due 4/1/2030 NR AAA 3,990,000
7,650,000 Series B,
5.850% due 5/1/2026 Aa AA 6,971,063
New York City, New York, Industrial
Development Agency:
1,965,000 Civil Facility Revenue, International
Center, (Integrated Student Dormitory
Project),
(in Default),
9.000% due 3/1/2009 NR NR 393,000
2,250,000 Civil Facility Refunding Bond, (The
Lighthouse Inc. Project),
6.500% due 7/1/2022 Aa2 AA 2,258,438
New York City, New York, Municipal Water
Finance Authority, Water & Sewer System
Revenue:
6,100,000 Series A,
6.000% due 6/15/2017 A A- 5,749,250
3,270,000 Series A, (FSA Insured),
7.000% due 6/15/2015 Aaa AAA 3,507,075
2,390,000 Series B,
6.375% due 6/15/2022 A A- 2,339,213
5,000,000 Series F,
5.500% due 6/15/2015 Aaa AAA 4,525,000
2,810,000 New York City, New York, Transportation
Authority Project, Transportation
Facilities Revenue, (Livingston Plaza
Project),
(FSA Insured)
7.500% due 1/1/2020 Aaa AAA 3,171,788
</TABLE>
See Notes to Financial Statements.
9
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
$10,200,000 New York State Housing Corporation
Revenue Bonds, Refunding-Senior Note,
5.500% due 11/01/2020 A1 AA $ 9,014,250
New York State, Refunding Bonds:
6,485,000 7.000% due 11/15/2002 A A- 7,125,394
1,000,000 12.000% due 11/15/2003 A A- 1,455,000
2,750,000 9.875% due 11/15/2005 A A- 3,643,750
New York State Dormitory Authority,
Revenue Bonds:
(City University), Series A:
2,500,000 7.500% due 7/1/2006 Baa1 BBB 2,690,625
2,000,000 5.750% due 7/1/2018 Baa1 BBB 1,810,000
7,000,000 (City University), Series B,
6.000% due 7/1/2014 Baa1 BBB 6,658,750
(City University), Series C:
3,000,000 7.625% due 7/1/2014 Baa1 BBB 3,236,250
2,000,000 8.200% due 7/1/2014 Baa1 BBB 2,270,000
140,000 (City University), Series R,
10.875% due 7/1/2014 Baa1 BBB 143,325
2,200,000 (City University), Series T,
10.250% due 7/1/2012 Baa1 BBB 2,362,250
1,250,000 (City University), Series U,
6.25% due 7/1/2002 Baa1 BBB 1,289,063
3,000,000 (Cooper Union), (FSA Insured),
7.200% due 7/1/2020 Aaa AAA 3,262,500
1,000,000 (Cornell University), Series A,
7.375% due 7/1/2030 Aa AA 1,107,500
250,000 (Court Facilities Lease),
5.625% due 5/15/2013 Baa1 BBB+ 223,125
1,230,000 (Crouse Community Center), (FHA
Insured), 7.500% due 8/1/2029 NR AAA 1,345,313
1,600,000 (Crouse Irving Memorial Hospital),
10.500% due 7/1/2017 NR A 1,676,000
5,000,000 Department of Education,
State of New York Issue,
7.750% due 7/1/2021 Baa1 BBB+ 5,568,750
</TABLE>
See Notes to Financial Statements.
10
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
New York State Dormitory Authority, Revenue Bonds -- (continued)
Department of Health, State of New
York Issue:
$ 200,000 7.250% due 7/1/2002 Baa1 BBB $
217,750
3,150,000 5.500% due 7/1/2020 Baa1 BBB
2,716,875
3,500,000 (Episcopal Health), (FHA Insured),
5.900% due 8/1/2020 NR AA
3,311,875
3,400,000 (Fordham University), (FGIC Insured),
5.75% due 7/1/2015 Aaa AAA
3,204,500
Genessee Valley, (FHA Insured), Series
B:
685,000 6.850% due 8/1/2016 NR AA
718,394
1,000,000 6.900% due 8/1/2032 NR AA
1,048,750
1,255,000 Group 1 Optional -- Supplemental
Higher Education,
7.250% due 10/1/2003 NR AAA
1,378,931
1,365,000 (Heritage House Nursing Center),
(FHA Insured),
7.000% due 8/1/2031 NR AAA
1,438,369
2,450,000 (Iroquois Nursing), (FHA Insured),
7.050% due 2/1/2031 NR AA-
2,584,750
3,000,000 (Leake & Watts Services Inc.), (MBIA
Insured),
6.000% due 7/1/2014 Aaa AAA
2,962,500
2,000,000 (Long Island Medical Center), Series
A,
(FHA Insured),
7.750% due 8/15/2027 Aa AAA
2,177,500
2,700,000 (Manhattan College),
6.500% due 7/1/2019 NR AA
2,666,250
490,000 (Manhattan Eye, Ear & Throat
Hospital), 11.500% due 7/1/2009 Baa BBB+
499,800
1,500,000 (New Hope Community),
5.700% due 7/1/2017 Aa NR
1,368,750
220,000 (New York Medical Center),
6.700% due 7/1/2001 NR AA
235,400
2,000,000 (New York Medical College, Long Island
Medical Center),
7.375% due 7/1/2020 Aa AA
2,215,000
4,800,000 (NY Catholic), (FHA Insured),
5.875% due 2/1/2033 NR AAA
4,386,000
</TABLE>
See Notes to Financial Statements.
11
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
New York State Dormitory Authority, Revenue Bonds -- (continued)
$ 1,000,000 (Society of New York Hospital),
9.750% due 7/1/2015 Baa1 BBB+ $
1,043,750
2,450,000 (St. Vincent's Hospital and Medical
Center), (FHA Insured),
7.400% due 8/1/2030 Aa AAA
2,624,563
(State University Educational
Facility),
Series A:
1,500,000 6.625% due 5/15/1999 Baa1 BBB+
1,580,625
6,000,000 6.375% due 5/15/2014 Baa1 BBB+
5,902,500
11,940,000 5.875% due 5/15/2017 Baa1 BBB+
10,969,875
1,330,000 (Thomas S. Clarkson Memorial College),
9.200% due 7/1/2009 NR AAA
1,389,850
2,000,000 (Upstate Community College),
5.750% due 7/1/2022 NR AAA
1,842,500
(Upstate Community College), Series A:
2,000,000 7.250% due 7/1/2010 A BBB
2,110,000
5,850,000 7.750% due 7/1/2018 (Prerefunded
7/1/1998) Baa1 NR
6,552,000
2,750,000 8.000% due 7/1/2019 (Prerefunded
7/1/1999) Baa1 NR
3,141,875
8,550,000 5.700% due 7/1/2021 Baa1 BBB-
7,598,813
2,000,000 5.750% due 7/1/2022 NR AAA
1,895,000
285,000 (Upstate Community College), Series B,
7.100% due 7/1/2001 Baa1 BBB-
309,581
(University of Rochester):
1,125,000 Series A,
5.625% due 7/1/2012 A1 A+
1,072,969
5,260,000 (Strong Memorial Hospital),
5.750% due 7/1/2014 A1 A+
4,852,350
3,150,000 (Wartburg Home Project), (FHA
Insured), 5.800% due 2/1/2028 NR AA
2,823,187
New York State Energy, Research &
Development Authority, Electric
Facilities Revenue Bonds:
(Long Island Lighting Company
Project):
3,000,000 7.150% due 2/1/2022 Ba1 BB+
2,992,500
1,000,000 6.900% due 8/1/2022 Ba1 BB+
977,500
</TABLE>
See Notes to Financial Statements.
12
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
New York State Energy, Research &
Development Authority, Electric
Facilities Revenue Bonds --
(continued)
$ 4,900,000 Series A,
7.150% due 12/1/2020 Ba1 BB+ $
4,887,750
2,250,000 (Consolidated Edison Company), Series
A, 7.125% due 3/15/2022 Aa3 A+
2,359,687
New York State Energy, Research &
Development Authority, Pollution
Control Revenue Bonds:
(Brooklyn Union Gas Company):
3,000,000 6.950% due 7/1/2026 A1 A
3,105,000
3,000,000 5.950% due 12/1/2027 Baa1 BBB
2,681,250
5,000,000 Series 1,
7.125% due 12/1/2020 A1 A
5,262,500
1,500,000 (Corning National Gas Corporation),
Series A,
8.250% due 12/1/2018 Baa2 NR
1,676,250
1,000,000 (Central Hudson Gas and Electric
Company), 8.375% due 12/1/2028 A3 A-
1,131,250
3,500,000 (Niagara Mohawk Power Corporation
Project),
Series A,
11.250% due 7/1/2014 Baa2 BBB-
3,570,000
500,000 (New York Electric & Gas Corp), Series
C, 12.300% due 7/1/2014 Baa1 BBB
532,500
(Orange & Rockland Utilities Project):
5,500,000 10.250% due 10/1/2014 Baa1 A-
5,678,750
2,500,000 9.000% due 8/1/2015 Baa1 A-
2,656,250
2,660,000 (Rochester Gas & Electric Company),
(FSA Insured),
8.375% due 12/1/2028 Aaa AAA
3,029,075
6,000,000 Solid Waste Disposal Revenue Project,
Series A, (MBIA Insured),
5.700% due 12/1/2028 Aaa AAA
5,467,500
</TABLE>
See Notes to Financial Statements.
13
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
New York State Environmental
Facilities Corporation, Pollution
Control Revenue,
State Water Revolving Fund:
Series A:
$ 8,250,000 7.250% due 6/15/2010 Aa A $
9,023,438
1,950,000 7.500% due 6/15/2012 Aa A
2,166,938
1,000,000 Series E,
6.200% due 6/15/2001 Aa A
1,047,500
5,765,000 Resource Recovery Revenue, Huntington
Project, Series A,
7.375% due 10/1/1999 Baa NR
5,995,600
Environmental Elements New York Inc:
665,000 8.400% due 12/1/2006 NR BBB+
704,900
690,000 8.400% due 12/1/2007 NR BBB+
731,400
3,000,000 Occidental Petroleum Corporation,
Solid Waste Disposal Revenue, Series
A,
5.700% due 9/1/2028 Baa3 BBB
2,580,000
New York State Housing Finance Agency:
MultiFamily Housing:
1,750,000 6.600% due 8/15/2027 Aa NR
1,771,875
2,905,000 Series A, (FSA Insured),
10.000% due 11/15/2025 Aa AA-
3,028,463
1,500,000 Series C, (FSA Insured),
6.500% due 8/15/2024 Aa AAA
1,494,375
1,250,000 Series D,
6.250% due 8/15/2023 Aa NR
1,225,000
1,355,000 Risley Dent Towers, Section 8, (FHA
Insured),
10.125% due 5/1/2021 Aa NR
1,377,019
Service Contract Obligations:
10,500,000 Series C,
6.125% due 3/15/2020 Baa1 BBB
10,027,500
5,555,000 Series D,
5.625% due 9/15/2013 Baa1 BBB
5,048,106
4,230,000 New York State Highway Authority,
Emergency Highway Construction and
Reconstruction, Series A, (FSA
Insured),
6.600% due 3/1/2001 Aaa AAA
4,552,537
</TABLE>
See Notes to Financial Statements.
14
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
New York State Local Government
Assistance Corporation:
$ 1,000,000 Series A,
6.875% due 4/1/2019 A A $ 1,043,750
Series B:
2,450,000 6.000% due 4/1/2012 A A 2,342,812
13,345,000 6.250% due 4/1/2021 A A 13,078,100
3,400,000 Series C,
6.000% due 4/1/2012 A A 3,289,500
3,285,000 Series E,
6.000% due 4/1/2014 A A 3,170,025
New York State Medical Care Facilities
Finance Agency Revenue Bonds:
3,000,000 (Beth Israel Medical Center),
Series A, (MBIA Insured),
7.500% due 11/1/2010 Aaa AAA 3,330,000
2,500,000 (Central Suffolk Hospital Project),
Series A, 6.125% due 11/1/2016 NR BBB 2,271,875
Hospital and Nursing Home, (FHA
Insured):
Series A:
235,000 6.100% due 2/15/2002 Aa AA 241,462
840,000 8.750% due 2/15/2015 Aa AA- 875,700
11,805,000 6.200% due 2/15/2021 NR AAA 11,391,825
6,000,000 8.000% due 2/15/2027 Aa AA 6,600,000
7,965,000 8.000% due 2/15/2028 Aa AAA 8,761,500
4,100,000 7.450% due 8/15/2031 Aa AA 4,422,875
3,000,000 6.375% due 8/15/2033 Aa AA 2,932,500
4,000,000 Series B,
6.000% due 8/15/2014 NR AAA 3,900,000
Series C:
605,000 5.950% due 8/15/2009 NR AAA 623,150
2,500,000 5.750% due 8/15/2019 NR AAA 2,281,250
1,700,000 7.700% due 2/15/2022
(Prerefunded 8/15/1998) Aa AAA 1,910,375
6,300,000 6.375% due 8/15/2029 NR AAA 6,126,750
2,500,000 6.650% due 8/15/2032 Aa AA 2,518,750
</TABLE>
See Notes to Financial Statements.
15
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
New York State Medical Care Facilities
Finance Agency Revenue Bonds --
(continued)
Series D:
$ 5,000,000 6.450% due 2/15/2032 Aa AA $
4,950,000
10,370,000 5.400% due 8/15/2033 Aa AAA
8,749,687
5,300,000 (Methodist Hospital), (FHA Insured),
Series A,
6.700% due 8/15/2023 NR AA
5,419,250
Insured Hospital Mortgage (FHA
Insured):
5,100,000 5.500% due 8/15/2024 Aa AAA
4,430,625
370,000 Series B,
10.125% due 1/15/2024 Aa AA
384,800
Long Term Healthcare, (CAPGTY
Insured):
2,000,000 Series B,
6.450% due 11/1/2014 Aaa AAA
2,030,000
150,000 Series C,
6.400% due 11/1/2014 Aaa AAA
151,687
Mental Health Service Facilities:
6,450,000 Series A, (AMBAC Insured),
5.700% due 8/15/2014 Aaa AAA
6,006,562
Series A, (Unrefunded Balance):
5,075,000 8.875% due 8/15/2007 Baa1 BBB+
5,652,281
1,185,000 7.700% due 2/15/2018 Baa1 BBB+
1,272,394
1,840,000 7.750% due 2/15/2020 Baa1 BBB+
1,948,100
1,860,000 Series D, (AMBAC Insured),
5.900% due 8/15/2022 Aaa AAA
1,748,400
6,500,000 Series F,
5.375% due 2/15/2014 Baa1 BBB+
5,655,000
Nursing Home Insured Mortgage,
(FHA Insured):
1,225,000 9.500% due 1/15/2024 NR NR
1,274,000
500,000 10.500% due 1/15/2024 Aa A-
510,000
1,640,000 (St. Mary's Hospital Project), Series
A, (AMBAC Insured),
6.200% due 11/1/2014 Aaa AAA
1,609,250
6,000,000 Second Mortgage Healthcare Project,
Series A,
5.850% due 2/15/2033 Aa NR
5,377,500
</TABLE>
See Notes to Financial Statements.
16
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
New York State Medical Care Facilities
Finance Agency Revenue Bonds --
(continued)
$ 5,000,000 Secured Hospital Revenue Bonds,
Series 91-A,
7.400% due 8/15/2021 Baa BBB $
5,400,000
New York State Mortgage Agency
Revenue:
2,625,000 Series 37-A,
6.375% due 10/1/2014 Aa NR
2,631,562
1,000,000 Series 41-A,
6.450% due 10/1/2014 Aa NR
1,008,750
1,385,000 9th Series A,
7.300% due 4/1/2017 Aa NR
1,440,400
1,720,000 Series GG, Homeowner Mortgage,
8.125% due 4/1/2020 Aa NR
1,803,850
New York State Municipal Bond Bank
Agency:
Special Revenue Program:
1,000,000 Buffalo, Series A,
6.875% due 3/15/2006 NR BBB+
1,075,000
1,500,000 Rochester, Series A,
6.750% due 3/15/2011 NR A+
1,610,625
2,000,000 New York State Power Authority,
Revenue & General Purpose Bonds,
Series V,
7.875% due 1/1/2013 Aaa AAA
2,207,500
1,500,000 New York, 34th Street Partnership
Inc., Capital Improvement,
5.500% due 1/1/2023 A1 NR
1,346,250
New York State, Urban Development:
1,650,000 Applied Technology Project,
5.625% due 4/1/2014 Aaa AAA
1,532,437
Correctional Facilities Revenue Bonds:
2,900,000 5.625% due 1/1/2007 Baa1 BBB
2,722,375
1,100,000 5.500% due 1/1/2015 Baa1 BBB
955,625
(Newark--Wayne Community Hospital):
2,970,000 Series A,
7.600% due 9/1/2015 NR NR
2,921,737
2,400,000 Series B, (FHA Insured),
5.875% due 1/15/2033 NR AAA
2,193,000
</TABLE>
See Notes to Financial Statements.
17
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
New York State, Urban Development --
(continued)
$ 850,000 Series 1, (FSA Insured),
7.500% due 1/1/2020 Aaa AAA $ 959,437
6,100,000 Youth Facilities, (MBIA Insured),
5.700% due 4/1/2014 Aaa AAA 5,749,250
2,250,000 Oneida, New York, Health Care
Corporation, Mortgage Revenue Bonds,
(FHA Insured), (Oneida Healthcare),
Series A,
7.200% due 8/1/2031 NR A 2,320,312
2,200,000 Oneida-Herkimer, New York, Solid Waste
Management Authority, Solid Waste
System Revenue Bonds,
6.750% due 4/1/2014 Baa BBB 2,186,250
Port Authority of New York & New
Jersey:
3,000,000 53rd Series,
8.700% due 7/15/2020 A1 AA- 3,191,250
2,000,000 61st Series,
8.125% due 8/15/2023 A1 AA- 2,107,500
8,000,000 Delta Airlines, Series 1R,
6.950% due 6/1/2008 Ba1 BB 7,840,000
State of New York, Certificates of
Participation:
6,000,000 City University of New York,
(John Jay College),
7.250% due 8/15/2007 Baa1 BBB 6,315,000
(Hanson Redevelopment Project),
915,000 8.375% due 5/1/2008 NR BBB 1,006,500
State of New York, General Obligation
Bonds,
1,000,000 Suffolk County, New York, Series F,
(FGIC Insured)
5.400% due 7/15/2014 Aaa AAA 928,750
Syracuse, New York, General Obligation
Bonds:
1,800,000 6.700% due 2/15/2008 NR NR 1,968,750
500,000 Industrial Development Agency, (James
Square Association), (FHA Insured),
7.000% due 8/1/2025 NR AAA 508,750
</TABLE>
See Notes to Financial Statements.
18
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
New York -- (continued)
Triborough Bridge & Tunnel Authority,
New York, Revenue Bonds:
General Purpose Revenue:
$ 250,000 Series R,
7.375% due 1/1/2016 (Prerefunded
1/1/2000) Aaa AAA $
279,687
3,470,000 Series X,
6.000% due 1/1/2014 Aa A+
3,309,513
3,000,000 Series Z,
6.000% due 1/1/2018 Aa A+
2,831,250
4,325,000 Special Obligation, (AMBAC Insured),
6.250% due 1/1/2012 Aaa AAA
4,341,218
United Nations Development Corporation,
New York, Revenue Bonds, Senior Lien,
Series A:
1,490,000 6.000% due 7/1/2007 A NR
1,473,237
1,170,000 6.000% due 7/1/2012 A NR
1,124,662
9,000,000 6.000% due 7/1/2026 A NR
8,426,250
730,000 Valley Health Development Corporation,
New York, Revenue Bonds, (FHA Insured),
Mortgage Loan,
11.300% due 2/1/2023 NR A
863,225
2,500,000 Warren & Washington Counties, New York,
Industrial Development Agency, Resource
Recovery, Revenue Bonds, Series A,
7.900% due 12/15/2007 B NR
2,312,500
2,310,000 Westchester County, New York,
Industrial Development Authority, SCM
Corporation, (HRCC Projects),
11.750% due 5/25/2004 NR NR
2,240,700
285,000 White Plains, New York, Battle Hill
Housing Development Corporation,
Housing Revenue Bonds, Section 8, (FHA
Insured),
9.875% due 4/1/2025 NR A
294,975
2,000,000 Yonkers, New York, General Obligation
Bonds, Series C, (FGIC Insured),
5.500% due 9/1/2009 Aaa AAA
1,935,000
</TABLE>
See Notes to Financial Statements.
19
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
Puerto Rico -- 2.6%
$ 1,495,000 Commonwealth of Puerto Rico, Aqueduct
and Sewer Authority Revenue Bonds,
(Escrowed to Maturity),
10.250% due 7/1/2009 Aaa AAA $
2,055,625
1,350,000 Commonwealth of Puerto Rico, General
Obligation Bonds,
8.000% due 7/1/2008 Baa1 A
1,503,562
6,470,000 Commonwealth of Puerto Rico, Urban
Renewal and Housing Corporation,
Revenue Bonds, 7.875% due 10/1/2004 Baa BBB
7,189,787
Puerto Rico Electric Power Authority,
Refunding Bonds:
2,500,000 Series L,
8.375% due 7/1/2007 Baa1 A-
2,806,250
250,000 Series M,
8.000% due 7/1/2008 Baa A-
282,500
Puerto Rico, Industrial, Medical &
Environmental Revenue Bonds:
2,085,000 (American Airlines), Series A,
8.750% due 12/1/2025 Baa1 A+
2,223,131
535,000 (St. Luke's Hospital Project), Series
A,
6.100% due 6/1/2001 NR A-
537,006
860,000 Puerto Rico Municipal Finance Agency,
Series A,
8.250% due 7/1/2008 Baa1 A-
951,375
Guam -- 0.2%
750,000 Guam Government Limited Obligation
Highway Bonds, Series A, (CAPGTY
Insured),
5.900% due 5/1/2002 Aaa AAA
780,000
500,000 Guam Power Authority Revenue, Series A,
6.300% due 10/1/2022 NR BBB
479,375
</TABLE>
See Notes to Financial Statements.
20
Smith Barney Shearson
New York Municipals Fund Inc.
Portfolio of Investments (unaudited) (continued) June 30, 1994
<TABLE>
<CAPTION>
Ratings Market
Value
Face Value Moody's S&P (Note 1)
- ------------------------------------------------------------------------------
- -
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- (continued)
Virgin Islands -- 0.1%
$ 500,000 Virgin Islands Public Finance Authority
Revenue, Matching Fund Loan Note,
Series B,
7.250% due 10/1/2007
(Prerefunded 10/1/2000) Aaa AAA $
561,875
- ------------------------------------------------------------------------------
- -
TOTAL LONG-TERM MUNICIPAL BONDS AND
NOTES (Cost $658,568,073)
658,922,019
- ------------------------------------------------------------------------------
- -
SHORT-TERM MUNICIPAL BONDS AND NOTES -- 1.2%
New York -- 0.6%
New York City, New York, General
Obligation Bonds:
3,700,000 Subseries E3,
2.75% due 8/1/2023+ VMIG1 A1+
3,700,000
300,000 Subseries E4,
2.75% due 8/1/2021+ VMIG1 A1+
300,000
Puerto Rico -- 0.6%
3,700,000 Puerto Rico, Government Development
Bank, 2.25% due 12/1/2015++ VMIG1 A1
3,700,000
- ------------------------------------------------------------------------------
- -
TOTAL SHORT-TERM MUNICIPAL BONDS AND
NOTES (Cost $7,700,000)
7,700,000
- ------------------------------------------------------------------------------
- -
TOTAL INVESTMENTS (Cost $666,268,073*) 99.7%
666,622,019
OTHER ASSETS AND LIABILITIES (Net) 0.3
2,310,582
- ------------------------------------------------------------------------------
- -
NET ASSETS 100.0%
$668,932,601
- ------------------------------------------------------------------------------
- -
</TABLE>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand notes are payable upon not more than one business
day's
notice.
++ Variable rate demand notes are payable upon not more than seven business
days' notice.
See Notes to Financial Statements.
21
Smith Barney Shearson
New York Municipals Fund Inc.
Statement of Assets and Liabilities (unaudited) June 30, 1994
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Cost $666,263,073)(Note 1)
See accompanying schedule $666,622,019
Cash 27,844
Interest receivable 13,970,715
Receivable for Fund shares sold 1,442,409
- ----------------------------------------------------------------------------
Total Assets 682,062,987
- ----------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities purchased $11,677,933
Dividends payable 564,060
Payable for Fund shares redeemed 325,633
Investment advisory fee payable (Note 2) 191,236
Administration fee payable (Note 2) 108,855
Service fee payable (Note 3) 83,863
Distribution fee payable (Note 3) 63,289
Transfer agent fees payable (Note 2) 35,400
Custodian fees payable (Note 2) 16,500
Accrued Directors' fees and expenses (Note 2) 1,000
Accrued expenses and other payables 62,617
- ----------------------------------------------------------------------------
Total Liabilities 13,130,386
- ----------------------------------------------------------------------------
NET ASSETS $668,932,601
- ----------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
22
Smith Barney Shearson
New York Municipals Fund Inc.
Statement of Assets and Liabilities (unaudited) (continued)
January 31, 1994
<TABLE>
<S> <C>
NET ASSETS consist of:
Distributions in excess of net investment income earned to
date $ (1,066,508)
Accumulated net realized gain on investments sold 3,287,224
Unrealized appreciation of investments 358,946
Par value 410,595
Paid-in capital in excess of par value 665,942,344
- ------------------------------------------------------------------------------
Total Net Assets $668,932,601
- ------------------------------------------------------------------------------
NET ASSETS:
CLASS A SHARES:
NET ASSET VALUE and redemption price per share
($515,508,159 / 31,643,658 shares of common stock outstanding) $16.29
- ------------------------------------------------------------------------------
Maximum offering price per share ($16.29 / .955)
(based on sales charge of 4.5% of the offering price on June
30, 1994) $17.06
- ------------------------------------------------------------------------------
CLASS B SHARES:
NET ASSET VALUE and offering price per share+
($153,424,442 / 9,415,829 shares of common stock outstanding) $16.29
- ------------------------------------------------------------------------------
</TABLE>
+ Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
See Notes to Financial Statements.
23
Smith Barney Shearson
New York Municipals Fund Inc.
Statement of Operations (unaudited)
For the six months ended June 30, 1994
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 22,557,118
- -----------------------------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 2) $ 1,169,552
Administration fee (Note 2) 665,621
Service fee (Note 3) 513,360
Distribution fee (Note 3) 364,496
Transfer agent fees (Notes 2 and 4) 115,481
Legal and audit fees 50,730
Custodian fees (Note 2) 48,331
Directors' fees and expenses (Note 2) 19,252
Other 99,820
- -----------------------------------------------------------------------------
Total Expenses 3,046,643
- -----------------------------------------------------------------------------
NET INVESTMENT INCOME 19,510,475
- -----------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
(Notes 1 and 5):
Net realized loss on investments sold during the
period (654,772)
Net unrealized depreciation of investments during
the period (54,864,986)
- -----------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS (55,519,758)
- -----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS $(36,009,283)
- -----------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
24
Smith Barney Shearson
New York Municipals Fund Inc.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended Year
6/30/94 Ended
(unaudited) 12/31/93
<S> <C> <C>
Net investment income $ 19,510,475 $ 37,182,733
Net realized gain/(loss) on investments sold
during the period (654,772) 11,090,806
Net unrealized appreciation/(depreciation) on
investments during the period (54,864,986) 16,938,786
- ------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting
from operations (36,009,283) 65,212,325
Distributions to shareholders from net investment
income:
Class A (16,584,434) (33,113,806)
Class B (3,992,549) (4,116,599)
Distribution to shareholders from net realized
gain on investments:
Class A -- (7,531,725)
Class B -- (1,641,245)
Net increase/(decrease) in net assets from Fund
share transactions (Note 6):
Class A (15,046,399) 21,895,581
Class B 28,273,591 117,947,400
- ------------------------------------------------------------------------------
Net increase/(decrease) in net assets (43,359,074) 158,651,931
NET ASSETS:
Beginning of period 712,291,675 553,639,744
- ------------------------------------------------------------------------------
End of period (including distributions in excess
net investment income earned to date of
$1,066,508 at June 30, 1994) $668,932,601 $712,291,675
- ------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
25
Smith Barney Shearson
New York Municipals Fund Inc.
Financial Highlights
For a Class A share outstanding throughout each period.
<TABLE>
<CAPTION>
Six Months Year Year
Ended Ended Ended
6/30/94 12/31/93# 12/31/92*
(Unaudited)
<S> <C> <C> <C>
Net asset value, beginning of period $ 17.68 $ 17.12 $ 16.77
- ------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.49 1.02 1.12
Net realized and unrealized gain/(loss) on
investments (1.36) 0.80 0.39
- ------------------------------------------------------------------------------
Total from investment operations (0.87) 1.82 1.51
- ------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.52) (1.03) (1.12)
Distributions from realized capital gains -- (0.23) (0.03)
Distributions from capital -- -- (0.01)
- ------------------------------------------------------------------------------
Total distributions: (0.52) (1.26) (1.16)
- ------------------------------------------------------------------------------
Net asset value, end of period $ 16.29 $ 17.68 $ 17.12
- ------------------------------------------------------------------------------
Total return++ (5.01)% 10.93% 9.36%
- ------------------------------------------------------------------------------
Ratios to average net assets/Supplemental
Data:
Net assets, end of period (in 000's) $515,508 $575,166 $535,514
Ratio of operating expenses to average net
assets 0.78%** 0.78% 0.67%
Ratio of net investment income to average
net assets 5.81%** 5.83% 6.56%
Portfolio turnover rate 22% 20% 30%
- ------------------------------------------------------------------------------
</TABLE>
*The Fund commenced operations on January 23, 1984. Any shares outstanding
prior to November 6, 1992 were designated as Class A shares.
**Annualized.
+Annualized expense ratio before waiver of fees by investment adviser and
sub-
investment adviser and administrator was 0.82%.
++Total return represents aggregate total return for the periods indicated
and
does not reflect any applicable sales charges.
+++Net investment income before waiver of fees by investment adviser and sub-
investment adviser and administrator was $1.15.
# Per share amounts have been calculated using the monthly average share
meth-
od, which more appropriately presents the per share data for this year
since
use of the undistributed method did not accord with results of operations.
See Notes to Financial Statements.
26
Smith Barney Shearson
New York Municipals Fund Inc.
<TABLE>
<CAPTION>
Year Year Year Year Year Year Year Period
Ended Ended Ended Ended Ended Ended Ended Ended
12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
12/31/84*
<S> <C> <C> <C> <C> <C> <C> <C>
$ 15.94 $ 16.26 $ 15.97 $ 15.37 $ 16.71 $ 15.48 $ 13.90 $
14.25
- ------------------------------------------------------------------------------
- -----
1.15 1.16 1.16 1.15 1.14 1.20 1.24
1.16+++
0.84 (0.32) 0.26 0.61 (1.33) 1.52 1.58
(0.35)
- ------------------------------------------------------------------------------
- -----
1.99 0.84 1.42 1.76 (0.19) 2.72 2.82
0.81
- ------------------------------------------------------------------------------
- -----
(1.16) (1.16) (1.13) (1.16) (1.14) (1.20) (1.24)
(1.16)
-- -- -- -- (0.01) (0.29) -- --
-- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------
- -----
(1.16) (1.16) (1.13) (1.16) (1.15) (1.49) (1.24)
(1.16)
- ------------------------------------------------------------------------------
- -----
$ 16.77 $ 15.94 $ 16.26 $ 15.97 $ 15.37 $ 16.71 $ 15.48 $
13.90
- ------------------------------------------------------------------------------
- -----
12.98% 5.41% 9.18% 11.82% (1.09%) 18.13% 21.03%
6.90%
- ------------------------------------------------------------------------------
- -----
$469,139 $428,304 $442,563 $429,703 $202,265 $218,980 $125,365
$54,182
0.64% 0.64% 0.66% 0.64% 0.68% 0.68% 0.81%
0.77%+**
7.04% 7.31% 7.17% 7.50% 7.22% 7.25% 8.20%
8.94%**
31% 18% 7% 27% 22% 11% 20%
45%
- ------------------------------------------------------------------------------
- -----
</TABLE>
See Notes to Financial Statements.
27
Smith Barney Shearson
New York Municipals Fund Inc.
Financial Highlights
For a Class B share outstanding throughout each period.
<TABLE>
<CAPTION>
Six Months Year Period
Ended Ended Ended
6/30/94 12/31/93# 12/31/92*
(Unaudited)
<S> <C> <C> <C>
Net asset value, beginning of period $ 17.68 $ 17.12 $ 16.93
- ------------------------------------------------------------------------------
- -
Income from investment operations:
Net investment income 0.45 0.94 0.17
Net realized and unrealized gain on
investments (1.38) 0.80 0.20
- ------------------------------------------------------------------------------
- -
Total from investment operations (0.93) 1.74 0.37
- ------------------------------------------------------------------------------
- -
Less distributions:
Dividends from net investment income (0.46) (0.95) (0.15)
Distributions from realized capital gains -- (0.23) (0.03)
Distributions from capital -- -- 0.00 +
- ------------------------------------------------------------------------------
- -
Total distributions: (0.46) (1.18) (0.18)
- ------------------------------------------------------------------------------
- -
Net asset value, end of period $ 16.29 $ 17.68 $ 17.12
- ------------------------------------------------------------------------------
- -
Total return++ (5.31)% 10.33% 2.23%
- ------------------------------------------------------------------------------
- -
Ratios to average net assets/Supplemental
Data:
Net assets, end of period (in 000's) $153,424 $137,126 $18,125
Ratio of operating expenses to average
net assets 1.30%** 1.31%
1.30%**
Ratio of net investment income to average
net assets 5.29%** 5.31%
5.94%**
Portfolio turnover rate 22% 20% 30%
- ------------------------------------------------------------------------------
- -
</TABLE>
* On November 6, 1992, the Fund commenced selling class B shares.
** Annualized.
+ Amount represents less than $0.01 per class B share.
++ Total return represents aggregate total return for the periods indicated
and
does not reflect any applicable sales charges.
# Per share amounts have been calculated using the monthly average share
meth-
od, which more appropriately presents the per share data for this year
since
use of the undistributed method did not accord with results of operations.
See Notes to Financial Statements.
28
Smith Barney Shearson
New York Municipals Fund Inc.
Notes to Financial Statements (unaudited)
1. Significant Accounting Policies
Smith Barney Shearson New York Municipals Fund Inc. (the "Fund") was incorpo-
rated under the laws of the State of Maryland on October 6, 1983. The Fund is
a
non-diversified, open-end management investment company registered with the
Se-
curities and Exchange Commission under the Investment Company Act of 1940, as
amended (the "1940 Act"). As of November 6, 1992, the Fund offered two classes
of shares: Class A shares and Class B shares. Class A shares are sold with a
front-end sales charge. Class B shares may be subject to a contingent deferred
sales charge ("CDSC"). Class B shares will convert automatically into Class A
shares eight years after the date of original purchase. Both classes of shares
have identical rights and privileges except with respect to the effect of the
respective sales charges, the distribution and/or service fees borne by each
class, expenses allocable exclusively to each class, voting rights on matters
affecting a single class, the exchange privilege of each class and the conver-
sion feature of Class B shares. The following is a summary of significant ac-
counting policies consistently followed by the Fund in the preparation of its
financial statements.
Portfolio valuation: Securities are valued by The Boston Company Advisors,
Inc.
("Boston Advisors") after consultation with an independent pricing service
(the
"Service") approved by the Fund's Board of Directors. When, in the judgment of
the Service, quoted bid prices for securities are readily available and are
representative of the bid side of the market, these investments are valued at
the mean between the quoted bid prices and asked prices (as obtained by the
Service from dealers in such securities). Securities for which, in the
judgment
of the Service, there are no readily obtainable market quotations (which may
constitute a majority of the Fund's portfolio securities) are carried at fair
value as determined by the Service, based on methods which include considera-
tion of: yields or prices of municipal securities of comparable quality, cou-
pon, maturity and type; indications as to values from dealers; and general
mar-
ket conditions. Securities for which representative prices are not available
from the Fund's pricing service are valued at fair value as determined in good
faith by the Fund's Board of Directors. Short-term investments that mature in
60 days or less are valued at amortized cost.
Securities transactions and investment income: Securities transactions are re-
corded as of the trade date. Interest income is recorded on the accrual basis.
Realized gains and losses from securities sold are recorded on the identified
cost basis. In-
29
Smith Barney Shearson
New York Municipals Fund Inc.
Notes to Financial Statements (unaudited) (continued)
vestment income and realized and unrealized gains and losses are allocated
based upon relative net assets of each class.
Dividends and distributions to shareholders: Dividends from net investment in-
come are determined on a class level. It is the policy of the Fund to declare
dividends from net investment income daily and to pay such dividends on the
last business day of the Smith Barney Inc. ("Smith Barney") statement month.
Distributions from net realized capital gains, on a Fund level, are declared
and paid annually, after the end of the fiscal year in which earned. Addi-
tional dividends may be paid and additional distributions of capital gains may
be made at the discretion of the Board of Directors to avoid the application
of the 4% nondeductible excise tax on certain undistributed amounts of ordi-
nary income and capital gains. Income distributions and capital gain distribu-
tions on a Fund level are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These differ-
ences are primarily due to differing treatments of income and gains on various
investment securities held by the Fund, timing differences and differing char-
acterization of distributions made by the Fund as a whole.
Federal income taxes: It is policy of the Fund to qualify as a regulated in-
vestment company, which distributes exempt-interest dividends, by complying
with the requirements of the Internal Revenue Code, applicable to regulated
investment companies and by distributing substantially all of its earnings to
its shareholders. Therefore, no Federal income tax provision is required.
2. Investment Advisory Fee, Administration Fee and Other Transactions
The Fund has entered into an investment advisory agreement (the "Advisory
Agreement") with Greenwich Street Advisors, a division of Mutual Management
Corp., which is controlled by Smith Barney Holdings Inc. ("Holdings"). Hold-
ings is a wholly owned subsidiary of The Travelers Inc. Under the Advisory
Agreement, the Fund pays a monthly fee based on the following annual rates:
.35% of the value of the Fund's average daily net assets up to $500 million
and .32% of the value of its average daily net assets in excess of $500 mil-
lion.
Prior to April 20, 1994, the Fund was party to an administration agreement
with Boston Advisors, an indirect wholly owned subsidiary of Mellon Bank Cor-
poration
30
Smith Barney Shearson
New York Municipals Fund Inc.
Notes to Financial Statements (unaudited) (continued)
("Mellon"). Under this agreement, the Fund paid a monthly fee based on the
fol-
lowing annual rates: .20% of the value of the Fund's average daily net assets
up to $500 million and .18% of the value of its average daily net assets in
ex-
cess of $500 million.
As of the close of business on April 20, 1994, Smith, Barney Advisers, Inc.
("SBA"), which is controlled by Holdings, succeeded Boston Advisors as the
Fund's administrator. The new administration agreement contains substantially
the same terms and conditions, including the level of fees, as the predecessor
agreement.
As of the close of business on April 20, 1994, the Fund also entered into a
sub-administration agreement (the "Sub-Administration Agreement") with Boston
Advisors. Under the Sub-Administration Agreement, Boston Advisors is paid a
portion of the fee paid by the Fund to SBA at a rate agreed upon from time to
time between SBA and Boston Advisors.
No officer, director or employee of Smith Barney or of any parent or
subsidiary
of Smith Barney receives any compensation from the Fund for serving as a
Direc-
tor or officer of the Fund. The Fund pays each Director who is not an officer,
director, or employee of Smith Barney or any of its affiliates $2,000 per
annum
plus $500 per meeting attended and reimburses each such Director for travel
and
out-of- pocket-expenses.
For the six months ended June 30, 1994, Smith Barney received $412,564 from
in-
vestors representing commissions (sales charges) on sales of Class A shares.
A CDSC is generally payable by a shareholder in connection with the redemption
of Class B shares within five years after the date of purchase. In circum-
stances in which the CDSC is imposed, the amount of the charge ranges between
4.5% and 1% of net asset value depending on the number of years since the date
of purchase. For the six months ended June 30, 1994, Smith Barney received
$137,454 from investors in CDSCs on the redemption of Class B shares.
Boston Safe Deposit and Trust Company, an indirect wholly owned subsidiary of
Mellon, serves as the Fund's custodian. The Shareholder Services Group, Inc.,
a
subsidiary of First Data Corporation, serves as the Fund's transfer agent.
31
Smith Barney Shearson
New York Municipals Fund Inc.
Notes to Financial Statements (unaudited) (continued)
3. Distribution Plan
Smith Barney acts as distributor of the Fund's shares pursuant to a distribu-
tion agreement with the Fund, and sells shares of the Fund through Smith
Barney
or its affiliates.
Pursuant to Rule 12b-1 under the 1940 Act, the Fund has adopted a services and
distribution plan (the "Plan"). Under this Plan, the Fund compensates Smith
Barney for servicing shareholder accounts for both Class A and Class B share-
holders, and covers expenses incurred in distributing Class B shares. Smith
Barney is paid an annual service fee with respect to Class A and Class B
shares
of the Fund at the rate of .15% of the value of the average daily net assets
of
each respective class of shares. Smith Barney is also paid an annual distribu-
tion fee with respect to Class B shares at the rate of .50% of the value of
the
average daily net assets attributable to those shares. During the six months
ended June 30, 1994, the Fund incurred $404,011 in service fees for Class A
shares. During the six months ended June 30, 1994, the Fund incurred $109,349
and $364,496 in service fees and distribution fees, respectively, for Class B
shares.
4. Expense Allocation
Expenses of the Fund not directly attributable to the operations of any class
of shares are prorated between the classes based upon the relative net assets
of each class. Operating expenses directly attributable to a class of shares
are charged to that class' operations. In addition to the above service and
distribution fees, class specific operating expenses include transfer agent
fees of $79,648 and $35,833 for Class A and Class B shares, respectively.
5. Purchases and Sales of Securities
Cost of purchases and proceeds from sales of investment securities, excluding
short-term investments, during the six months ended June 30, 1994, amounted to
$151,233,049 and $147,611,719, respectively.
At June 30, 1994, the aggregate gross unrealized appreciation for all securi-
ties in which there was an excess of value over tax cost amounted to
$22,078,153 and the aggregate gross unrealized depreciation for all securities
in which there was an excess of tax cost over value amounted to $21,719,207.
32
Smith Barney Shearson
New York Municipals Fund Inc.
Notes to Financial Statements (unaudited) (continued)
6. Common Stock
At June 30, 1994, 500 million shares of $.01 par value common stock divided
into two classes (Class A and Class B) were authorized. Changes in the common
stock for the Fund were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
6/30/94 12/31/94
Class A shares: Shares Amount Shares Amount
- ------------------------------------------------------------------------------
- -
<S> <C> <C> <C> <C>
Sold 2,653,290 $ 44,470,402 3,707,118 $ 65,187,847
Issued as reinvestment of
dividends 636,449 10,725,871 1,542,419 27,192,839
Redeemed (4,181,076) (70,242,672) (3,991,942)
(70,485,105)
- ------------------------------------------------------------------------------
- -
Net increase/(decrease) (891,337) $ (15,046,399) 1,257,595 $ 21,895,581
- ------------------------------------------------------------------------------
- -
<CAPTION>
Six Months Ended Year Ended
6/30/94 12/31/93
Class B shares: Shares Amount Shares Amount
- ------------------------------------------------------------------------------
- -
<S> <C> <C> <C> <C>
Sold 1,887,904 $ 32,129,309 6,705,247 $118,061,679
Issued as reinvestment of
dividends 150,250 2,527,600 232,704 4,113,260
Redeemed (380,518) (6,383,318) (238,451)
(4,227,539)
- ------------------------------------------------------------------------------
- -
Net increase 1,657,636 $ 28,273,591 6,699,500 $117,947,400
- ------------------------------------------------------------------------------
- -
</TABLE>
7. Concentration of Credit
The Fund primarily invests in debt obligations issued by the State of New York
and its political subdivisions, agencies and public authorities to obtain
funds
for various public purposes. The Fund is more susceptible to factors adversely
affecting issuers of New York municipal securities than is a municipal bond
fund that is not concentrated in these issuers to the same extent.
8. Line of Credit
The Fund and several affiliated entities participate in a $50 million line of
credit provided by Continental Bank N.A. under an Amended and Restated Line of
Credit Agreement (the "Agreement") dated April 30, 1992 and renewed effective
May 31, 1994, primarily for temporary or emergency purposes, including the
meeting of redemption requests that otherwise might require the untimely
dispo-
sition of securities. The Fund may borrow up to the lesser of $25 million or
10% of its net assets. Interest is payable either at the bank's Money Market
Rate or the London
33
Smith Barney Shearson
New York Municipals Fund Inc.
Notes to Financial Statements (unaudited) (continued)
Interbank Offered Rate plus .375% on an annualized basis. Under the terms of
the Agreement, as amended, the Fund and the other affiliated entities are
charged an aggregate commitment fee of $100,000 which is allocated equally
among each of the participants. The Agreement requires, among other
provisions,
each participating fund to maintain a ratio of net assets (not including funds
borrowed pursuant to the Agreement) to aggregate amount of indebtedness pursu-
ant to the Agreement of no less than 5 to 1. During the six months ended June
30, 1994, the Fund had an average outstanding daily balance of $111,050 with
interest rates ranging from 3.69% to 4.69%. Interest expense totalled $2,423
for the six months ended June 30, 1994.
34
Smith Barney Shearson
New York Municipals Fund Inc.
Participants
Distributor
Smith Barney Inc.
388 Greenwich Street
New York, New York 10013
Investment Adviser
Greenwich Street Advisors
Two World Trade Center
New York, New York 10048
Administrator
Smith, Barney Advisers, Inc.
1345 Avenue of the Americas
New York, New York 10105
Sub-Administrator
The Boston Company Advisors, Inc.
One Boston Place
Boston, Massachusetts 02108
Auditors and Counsel
Coopers & Lybrand
One Post Office Square
Boston, Massachusetts 02109
Willkie Farr & Gallagher
153 East 53rd Street
New York, New York 10022
Transfer Agent
The Shareholder Services Group, Inc.
Exchange Place
Boston, Massachusetts 02109
Custodian
Boston Safe Deposit
and Trust Company
One Boston Place
Boston, Massachusetts 02108
35
Smith Barney Shearson
New York Municipals Fund Inc.
Investor Benefits
Monthly Distributions
It's your fund's policy to distribute dividend income monthly.
Automatic Reinvestment
You may reinvest your dividends and/or capital gains automatically in
additional shares of your fund at the current net asset value.
Unlimited Exchanges
If your investment goals change, you may exchange into another Smith Barney
Shearson mutual fund with the same sales charge structure without incurring a
sales charge.*
Systematic Investment Plan
This program allows you to invest equal dollar amounts automatically on a
regular basis, monthly or quarterly.
Automatic Cash Withdrawal Plan
With this plan, you may withdraw money on a regular basis while maintaining
your investment.
Mutual Fund Evaluation Service
Through your Financial Consultant, you may obtain a free personalized analysis
of how your fund has performed for you, taking into account the effect of
every
transaction. The analysis is based upon month-end data from CDA Investment
Technologies, Inc., a widely recognized mutual fund information service. An
evaluation also gives you other important facts and figures about your
investment.
For more information about these benefits, or if you have any other questions,
please call your Financial Consultant or write:
Mutual Fund Policy Group
Smith Barney Inc.
388 Greenwich Street 37th Floor
New York, NY 10013
* After written notification, exchange privilege may be modified or terminated
at any time.
36
NEW YORK MUNICIPALS FUND INC.
DIRECTORS
Herbert Barg
Alfred J. Bianchetti
Martin Brody
Dwight B. Crane
James. J. Crisona
Robert A. Frankel
Dr. Paul H. Hardin
Stephen E. Kaufman
Joseph J. McCann
Heath B. McLendon
OFFICERS
Heath B. McLendon
Chairman of the Board and Investment Officer
Stephen J. Treadway
President
Richard P. Roelofs
Executive Vice President
Lawrence T. McDermott
Vice President and Investment Officer
Karen L. Mahoney-Malcomson
Investment Officer
Lewis E. Daidone
Treasurer
Christina T. Sydor
Secretary
[RECYCLING SYMBOL APPEARS HERE]
This report is submitted for the general information of the shareholders of
Smith Barney Shearson New York Municipals Fund Inc. It is not authorized for
distribution to prospective investors unless accompanied or preceded by an
effective Prospectus for the Fund, which contains information concerning the
Fund's investment policies, fees and expenses as well as other pertinent
information.
(LOGO OF SMITH BARNEY APPEARS HERE)
SMITH BARNEY SHEARSON MUTUAL FUNDS
Two World Trade Center
New York, New York 10048
Fund 13,194
FD0403 H4
