[GRAPHIC]
Small box above fund name
showing a map, chain and steel
girders used for industrial production
<PAGE>
NEW YORK MUNICIPALS FUND INC.
DEAR SHAREHOLDER:
We are pleased to provide the Annual Report for Smith Barney Shearson
New York Municipals Fund for the fiscal year ended December 31, 1993. In this
report we will provide you with a review of the Fund's performance, the market
environment and portfolio activities during the past twelve months. In
addition, we have taken this opportunity to simplify the report by separating
the historical performance information for A and B classes of shares into two
distinct sections. Our goal is to give you clear, concise information that
makes it easier for you to follow your investment. We have done this because
Smith Barney Shearson believes that an informed investor and an experienced
Financial Consultant form the most productive partnerships.
THE MUNICIPAL MARKET AND THE ECONOMIC ENVIRONMENT
By the end of 1993, the tax-exempt market set a record for bond issuance of
approximately $300 billion. Municipalities, like individuals, took advantage
of
the low level of interest rates and used it as an opportunity to refinance
higher interest rate debt. About 75% of these new issues will be used to
retire
the higher interest rate debt that was issued in the early 1980s.
Investors consequently have faced a high rate of bond calls during the past
year, and we anticipate that this is something they will have to contend with
in 1994 as well. We expect that in 1994 the volume of new issuance will once
again be in the more traditional of $150 to $175 billion.
Although the supply of municipal securities was very high during the past
year,
demand was equally high. Investors whose bonds were called or retired sought
to
replace them with new issues, and the passage of a retroactive tax increase in
August buoyed demand for tax-exempt issues.
The market suffered from some periodic weakness throughout the year, and
especially at the end of the year, but we are optimistic that it will regain
its
strength in early 1994. We think this will likely begin in earnest once the
higher withholding rates go into effect, and again when people begin preparing
their 1993 income taxes. We don't anticipate a surge in the inflation rate
because the increase in economic growth and consumer confidence should be
offset
by higher Federal tax rates and uncertainty over the cost of health care
reform.
Some refinancings took place in the market for New York tax-exempts, but at a
slower pace than the overall market because of changes in the comptroller's
office. In August, Ned Regan resigned to enter the private sector and was
replaced by Carl McCall. This changing of the guard slowed the bond issuance
schedule while
1
<PAGE>
the new comptroller put his staff in place. We expect that over the next six
months New York State and its agencies will aggressively re-enter the market.
The economy of New York State has improved thanks to a strong year for the
financial community and a rebound in consumer spending. Both contributed to
increased tax receipts which will give the State a budget surplus for the
first
time in many years. If tax revenues continue to increase in 1994, New York
State
could receive an upgrade in its bond rating. A higher bond rating benefits New
York State taxpayers in a very tangible way: higher-rated bonds generally are
required to pay investors lower interest rates. For New York City, the picture
is quite different. New York City is faced with a budget deficit in the
neighborhood of $1.7 billion as a result of higher welfare and Medicaid costs.
Its budget problems are compounded by the loss of businesses lured to New
Jersey
and Connecticut by attractive economic development packages. While the State's
economy is clearly rebounding, we are waiting for Mayor Giuliani's response to
the City's budget problems.
- ------------------------------------------------------------------------------
- --
DIVIDEND POLICY
Although not explicitly stated in the prospectus, the Fund's policy is to pay
a
level monthly dividend based on our projections for the municipal bond market
and the general direction of interest rates. This policy has no appreciable
affect on the Fund's investment strategies or net asset value per share since
it
is guided by market conditions. It means that we do not invest in more
speculative securities that may undermine the Fund's net asset value per share
in order to maintain an unrealistically high dividend policy. We continually
monitor both the market and the Fund's income stream to see that our dividend
projections are realistic.
PORTFOLIO STRATEGY
As investment managers, our goal is to provide investors with tax-free income
and stability of principal through investments in securities exempt from
Federal
and New York income taxes. Rather than attempting to time the market, we, like
most investors, take a longer-term approach to tax-exempt investing.
Consequently, we have not changed our strategy significantly to accommodate
the
temporary market blips of the past twelve months; instead, we remained fully
invested in longer-term issues and simply rode out the market fluctuations.
To help us achieve our goal, we continue to invest the Fund's holdings in high
quality investments. The additional yield available from lower-rated
securities
is simply not sufficient to justify their additional risk. At the end of its
fiscal year, 95% of the Fund was invested in issues rated BBB or higher
(investment grade) by either Standard & Poor's Corporation or Moody's
Investors
Service, Inc. We
2
<PAGE>
have concentrated the Fund's investments in general obligation issues,
hospital
issues which are secured by additional insurance, and utility issues. The
average maturity of the issues in the portfolio is 26 years. It is our opinion
that this diversified, high quality approach to the long-term municipal market
best serves the interests of the Fund's investors.
We thank you for your support of the Smith Barney Shearson New York Municipals
Fund. As we have since the Fund's inception a decade ago, we will continue to
strive to help you meet your investment goals.
Sincerely,
Heath B. McLendon Lawrence T. McDermott
Chairman of the Board Vice President and
Investment Officer
February 18, 1994
3
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
<TABLE>
- ------------------------------------------------------------------------------
- --
HISTORICAL PERFORMANCE - CLASS A SHARES
<CAPTION>
Year Ended Net Asset Value Capital Dividends Total
12/31 Beginning Ending Gains+ Paid+ Return*
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------
1/23/84 -
12/31/84 $ 14.25 $13.90 $-- $ 1.16 6.09%
- --------------------------------------------------------------------------
1985 $ 13.90 $15.48 $-- $ 1.24 21.03%
- --------------------------------------------------------------------------
1986 $ 15.48 $16.71 $0.29 $ 1.20 18.13%
- --------------------------------------------------------------------------
1987 $ 16.71 $15.37 $0.01 $ 1.14 -1.09%
- --------------------------------------------------------------------------
1988 $ 15.37 $15.97 $-- $ 1.16 11.82%
- --------------------------------------------------------------------------
1989 $ 15.97 $16.26 $-- $ 1.13 9.18%
- --------------------------------------------------------------------------
1990 $ 16.26 $15.94 $-- $ 1.16 5.41%
- --------------------------------------------------------------------------
1991 $ 15.94 $16.77 $-- $ 1.16 12.98%
- --------------------------------------------------------------------------
1992 $ 16.77 $17.12 $0.03 $ 1.13 9.36%
- --------------------------------------------------------------------------
1993 $ 17.12 $17.68 $0.19 $ 1.07 10.93%
- --------------------------------------------------------------------------
Total $0.52 $ 11.55
- --------------------------------------------------------------------------
Cumulative Total Return - (1/23/84 through 12/31/93) 164.62%
- --------------------------------------------------------------------------
<FN>
* Figures assume reinvestment of all dividends and capital gains
distributions at net asset value and do not assume deduction of the
sales charge (maximum 4.5% as of November 6, 1992).
+ The above distributions may differ from those cited in the Financial
Highlights contained elsewhere in this report. These differences result
from accounting rules requiring the redesignation of distributions to
the tax characterization of such distributions.
</TABLE>
THE FUND'S POLICY IS TO DISTRIBUTE DIVIDENDS MONTHLY
AND CAPITAL GAINS, IF ANY, ANNUALLY.
<TABLE>
- ------------------------------------------------------------------------------
- --
AVERAGE ANNUAL TOTAL RETURN** - CLASS A SHARES
<CAPTION>
Without Sales Charge With Sales
Charge
Without
Without
Actual Fee Waiver Actual Fee
Waiver
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
- ----
Year Ended 12/31/93 10.93% -- 5.94% --
- ------------------------------------------------------------------------------
- ----
Five Years Ended 12/31/93 9.54% -- 8.54% --
- ------------------------------------------------------------------------------
- ----
Inception 1/23/84 through
12/31/93 10.29% 10.28% 9.78%
9.77%
- ------------------------------------------------------------------------------
- ----
<FN>
** All average annual total return figures shown reflect reinvestment of
dividends and capital gains at net asset value. Average annual total return
figures shown assume the deduction of the maximum 4.5% sales charge. The
Fund
commenced operations on January 23, 1984. The Fund waived fees and
reimbursed
expenses from January 1984 to December 1984. A shareholder's actual return
for periods during which waivers and reimbursements were in effect would be
the higher of the two numbers shown.
NOTE: As of November 6, 1992, shares of the Fund were designated as Class A -
- -
subject to a maximum 4.5% front-end sales charge and an annual service fee of
0.15% of average daily net assets attributable to that class. The Fund's
average
annual rates of return would have been lower had service fees been in effect
prior to November 6, 1992.
</TABLE>
4
<PAGE>
GROWTH OF $10,000 INVESTED IN CLASS A SHARES
OF SMITH BARNEY SHEARSON NEW YORK MUNICIPALS FUND INC.+
- ------------------------------------------------------------------------------
- --
January 23, 1984 - December 31, 1993
<TABLE>
DESCRIPTION OF MOUNTAIN CHART IN SHEARSON COVERS (CLASS A)
A line graph depicting the total growth (including reinvestment of dividends
and capital gains) of a hypothetical investment of $10,000 in New York
Municipals Fund's Class A shares on January 23, 1984 through December 31, 1993
as compared with the growth of a $10,000 investment in the Lehman Brothers
Municipal Bond Index and Lipper New York Municipal Fund Average. The plot
points used to draw the line graph were as follows:
<CAPTION>
Growth of $10,000 Growth of
$10,000
Investment in the Investment in
the
Growth of $10,000 Lehman Brothers Lipper New
York
Invested in Class A shares Municipal Bond Municipal
Fund
Month Ended of the Fund Index Average
<S> <C> <C> <C>
01/23/84 $ 9,550
01/84 $ 9,582 $10,000
$10,000
02/84 $ 9,514 $ 9,899 $
9,981
03/84 $ 9,562 $ 9,911
$10,108
06/84 $ 9,249 $ 9,540 $
9,879
09/84 $ 9,740 $10,189
$10,330
12/84 $10,132 $10,665
$10,718
03/85 $10,571 $11,095
$11,155
06/85 $11,430 $12,025
$12,022
09/85 $11,340 $11,844
$11,955
12/85 $12,263 $12,802
$12,839
03/86 $13,402 $14,098
$13,874
06/86 $13,209 $14,011
$13,798
09/86 $13,874 $14,764
$14,416
12/86 $14,486 $15,274
$15,024
03/87 $14,837 $15,644
$15,394
06/87 $14,137 $15,220
$14,507
09/87 $13,732 $14,841
$14,018
12/87 $14,328 $15,504
$14,777
03/88 $14,740 $16,037
$15,175
06/88 $15,101 $16,348
$15,495
09/88 $15,562 $16,768
$15,946
12/88 $16,022 $17,080
$16,352
03/89 $16,068 $17,193
$16,415
06/89 $17,027 $18,211
$17,380
09/89 $17,011 $18,224
$17,311
12/89 $17,492 $18,923
$17,870
03/90 $17,510 $19,007
$17,788
06/90 $17,898 $19,451
$18,230
09/90 $17,849 $19,462
$18,112
12/90 $18,438 $20,302
$18,770
03/91 $18,893 $20,761
$19,209
06/91 $19,364 $21,204
$19,658
09/91 $20,190 $22,029
$20,601
12/91 $20,831 $22,767
$21,263
03/92 $20,967 $22,835
$21,286
06/92 $21,768 $23,700
$22,308
09/92 $22,353 $24,331
$22,850
12/92 $22,781 $24,774
$23,315
03/93 $23,580 $25,694
$24,289
06/93 $24,268 $26,535
$25,148
09/93 $24,988 $27,432
$25,979
12/93 $25,271 $27,817
$26,275
<FN>
+ Illustration of $10,000 invested in Class A shares on January 23, 1984
assuming deduction of the maximum 4.5% sales charge and reinvestment of
dividends and capital gains at net asset value through December 31, 1993.
The Lehman Brothers Municipal Bond Index is comprised of approximately
21,000 bonds. The bonds are all investment grade, fixed rate, long term
(greater than two years) and are selected from issues larger than $50
million dated since January 1984. Index information is available at
month-end only; therefore, the closest month-end to inception date of the
Fund has been used.
The Lipper New York Municipal Fund Average is composed of the Fund's peer
group of mutual funds.
NOTE: All figures cited here and on the other pages represent past
performance of the Fund and do not guarantee future results of Class A
shares.
</TABLE>
FOR A GLOSSARY OF TERMS, PLEASE TURN TO THE END OF THIS REPORT.
5
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
<TABLE>
- ------------------------------------------------------------------------------
- ------
HISTORICAL PERFORMANCE - CLASS B SHARES
<CAPTION>
Year Ended Net Asset Value Capital Gains Dividends
Total
December 31 Beginning Ending Distributed Paid
Return*
<S> <C> <C> <C> <C>
<C>
- ------------------------------------------------------------------------------
- -------
11/6/92 - 12/31/92 $ 16.93 $17.12 $0.03 $0.15
2.23%
- ------------------------------------------------------------------------------
- -------
1993 $ 17.12 $17.68 $0.19 $0.98
10.33%
- ------------------------------------------------------------------------------
- -------
Total $0.22 $1.13
- ------------------------------------------------------------------------------
- -------
Cumulative Total Return from 11/06/92 through 12/31/93
12.79%
- ------------------------------------------------------------------------------
- -------
<FN>
* Figures assume reinvestment of all dividends and capital gains
distributions at net asset value and do not assume deduction of the
contingent deferred sales charge ("CDSC").
</TABLE>
THE FUND'S POLICY IS TO DISTRIBUTE DIVIDENDS MONTHLY
AND CAPITAL GAINS, IF ANY, ANNUALLY.
- ------------------------------------------------------------------------------
- --
<TABLE>
AVERAGE ANNUAL TOTAL RETURN** - CLASS B SHARES
<CAPTION>
Without CDSC With CDSC
Actual Actual
<S> <C> <C>
- ------------------------------------------------------------------------------
Year Ended 12/31/93 10.33% 5.83%
- ------------------------------------------------------------------------------
Inception 11/06/92 through 12/31/93 11.03% 7.60%
- ------------------------------------------------------------------------------
<FN>
** All average annual total return figures shown reflect the reinvestment
of dividends and capital gains at net asset value. Average annual total
return figures shown assume the deduction of the maximum applicable
CDSC which is described in the prospectus. The Fund waived fees and
reimbursed expenses from November 6, 1992 to the present. A
shareholder's actual return for periods during which waivers and
reimbursements were in effect would be the higher of the two numbers
shown.
NOTE: The Fund began offering Class B shares on November 6, 1992 subject to a
maximum 4.5% CDSC and annual service and distribution fees of 0.15% and 0.50%,
respectively, of average daily net assets attributable to that class.
</TABLE>
6
<PAGE>
GROWTH OF $10,000 INVESTED IN CLASS B SHARES
OF SMITH BARNEY SHEARSON NEW YORK MUNICIPALS FUND INC.+
- ------------------------------------------------------------------------------
- --
November 6, 1992 -- December 31, 1993
DESCRIPTION OF MOUNTAIN CHART IN SHEARSON COVERS (CLASS B)
A line graph depicting the total growth (including reinvestment of
dividends and capital gains) of a hypothetical investment of $10,000 in New
York Municipals Fund's Class B shares on November 6, 1992 through December 31,
1993 as compared with the growth of a $10,000 investment in the Lehman
Brothers
Municipal Bond Index and Lipper New York Municipal Fund Average. The plot
points
used to draw the line graph were as follows:
<TABLE>
GROWTH OF $10,000 GROWTH
OF $10,000
INVESTMENT IN THE
INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LIPPER
NEW YORK
INVESTED IN CLASS B SHARES MUNICIPAL BOND
MUNICIPAL FUND
MONTH ENDED OF THE FUND INDEX
AVERAGE
<S> <C> <C> <C>
10/31/92 -- $10,000
$10,000
11/06/92 $10,000 --
- --
11/92 $10,108 $10,179 $
9,833
12/92 $10,223 $10,283
$10,074
03/93 $10,569 $10,665
$10,739
06/93 $10,858 $11,014
$10,822
09/93 $11,169 $11,386
$11,245
12/93 $10,879 $11,546
$11,262
[SET ON MAC -- CHART B]
<FN>
+ Illustration of $10,000 invested in Class B shares on November 6, 1992
assuming deduction of the maximum applicable CDSC at the time of
redemption and reinvestment of dividends and capital gains at net asset
value through December 31, 1993.
The Lehman Brothers Municipal Bond Index is comprised of approximately
21,000 bonds. The bonds are all investment grade, fixed rate, long term
(greater than two years) and are selected from issues larger than $50
million dated since January 1984. Index information available at
month-end only; therefore, the closest month-end to inception date of the
Fund has been used.
The Lipper New York Municipal Fund Average is composed of the Fund's peer
group of mutual funds.
NOTE: All figures cited here and on the other pages represent past
performance of the Fund and do not guarantee future results of Class B
shares.
* Value does not assume deduction of applicable CDSC.
** Value assumes deduction of applicable CDSC (assuming redemption on
December 31, 1993).
</TABLE>
FOR A GLOSSARY OF TERMS, PLEASE TURN TO THE END OF THIS REPORT.
7
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO HIGHLIGHTS (UNAUDITED) DECEMBER 31, 1993
INDUSTRY BREAKDOWN
Pie chart depicting the allocation of the New York Municipals Fund's
investment securities held at December 31, 1993 by industry classification.
The pie is broken in pieces representing industries in the following
percentages:
INDUSTRY PERCENTAGE
<S> <C>
Utility Revenue 9.1%
Education 9.0%
Housing 14.8%
Hospital 19.3%
Transportation 8.6%
Short Term Investments and Net
Other Assets 0.2%
Pollution Control 6.5%
Industrial Control 4.4%
Other 9.1%
General Obligations 19.0%
</TABLE>
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 26.5%
AA AA 22.6
A A 20.0
BAA BBB 26.3
BA BB 1.5
NR NR 3.1
-------
100.0%
-------
</TABLE>
AVERAGE MATURITY: 26 YEARS
8
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1993
- ------------------------------------------------------------------------------
- --
KEY TO INSURANCE ABBREVIATIONS
- ------------------------------------------------------------------------------
- --
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Federal Guaranty Insurance Corporation
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
- ------------------------------------------------------------------------------
- ---------------
MUNICIPAL BONDS AND NOTES - 99.8 %
NEW YORK - 96.6 %
$3,900,000 Babylon, New York, Industrial Development
Agency, Recycling Facilities Revenue,
(Babylon Recycling Center, Inc.), Series A,
8.875% due 3/1/2011 NR NR
$ 3,939,000
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
3,440,506
2,950,000 Series C,
8.500% due 1/1/2019 Baa1 BBB+
3,388,813
2,000,000 Babylon, New York, Industrial Development
Agency, Waste Facilities Revenue, (Babylon
Community Waste Management), Series A,
7.875% due 7/1/2006 Baa1 BBB+
2,395,000
Battery Park City Authority, New York,
Housing Revenue:
8,045,000 5.250% due 11/1/2017 A1 AA
7,843,875
4,850,000 5.800% due 11/1/2022 A A
4,910,625
35,000 8.625% INVESTMENTS (CONTINUED) DECEMBER 31,
1993
<Ca
tion>
RATINGS MARKET
(
naudited) VALUE
FACE VALUE
MOODY'S S&P (
O
E 1)
<
>
<S>
<C> <C> <C>
-----------------------------------------------------
- -
- --------
- -
- ----------------INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
<S> <C> <C>
<C>
$ 500,000 Buffalo, New York, Refunding Bonds, (FGIC
insured),
6.250% due 2/1/2016 Aaa AAA
$ 538,125
1,300,000 Buffalo, New York, Municipal Water Finance
Authority Water Systems Revenue, (FSA
Insured),
5.750% due 7/1/2019 Aaa AAA
1,363,375
700,000 Central Square, New York, Central School
District, (FGIC insured),
6.500% due 6/15/2000 Aaa AAA
791,000
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
275,000
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
4,068,750
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
1,083,750
Green Island, New York, General Obligation
Bonds:
100,000 9.375% due 11/1/2001 Baa1 NR
125,750
125,000 9.375% due 11/1/2002 Baa1 NR
159,375
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-
4,405,000
500,000 Huntington, New York, Refunding Bonds,
(FGIC insured),
5.500% due 4/1/2017 Aaa AAA
511,875
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
<S> <C> <C> <C>
<C>
$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
$ 1,068,750
1,895,000 Lincoln Towers, New York, Housing
Corporation, Mortgage Revenue Bonds,
(Lincoln Towers Project),
11.250% due 1/1/2015 NR NR
2,001,593
Lockport Town, New York, Refunding Bonds:
(MBIA insured):
435,000 5.400% due 3/1/2012 Aaa AAA
445,331
430,000 5.400% due 3/1/2013 Aaa AAA
440,212
425,000 5.400% due 3/1/2014 Aaa AAA
435,093
415,000 5.400% due 3/1/2015 Aaa AAA
424,856
Metropolitan Transportation Authority, New
York, Transit Facilities Revenue:
3,700,000 Series J, (FGIC insured),
6.500% due 7/1/2018 Aaa AAA
4,097,750
8,500,000 Series K, (AMBAC Insured),
6.000% due 7/1/2016 Aaa AAA
8,946,250
3,630,000 Series M,
6.000% due 7/1/2014 Baa BBB+
3,752,512
5,440,000 Service Contract, Series N,
7.125% due 7/1/2009 Baa1 BBB
6,147,200
Service Contract, Series P,
1,575,000 5.750% due 7/1/2015 Baa1 BBB
1,580,906
4,000,000 5.570% due 7/1/2015 Baa1 BBB
4,015,000
1,220,000 Service Contract, Series 5,
6.250% due 7/1/1999 Baa1 BBB
1,303,875
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
1,426,562
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
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-
$ 3,007,125
990,000 Civic Facility, (Genesee Hospital), Series
A,
6.500% due 11/1/1999 A NR
1,056,825
3,405,000 Nassau County, New York, Combined Sewer
Districts, General Obligation Bonds,
Refunding Bonds, (MBIA insured), Series G,
5.400% due 1/15/2010 Aaa AAA
3,532,687
New York City, New York, General Obligation
Bonds:
3,000,000 Series A,
6.250% due 8/1/2018 Baa1 A-
3,123,750
Series C:
1,000,000 7.750% due 9/1/2006 Baa1 A-
1,123,750
4,000,000 6.500% due 8/1/2007 Baa1 A-
4,255,000
Series D: (MBIA insured),
1,500,000 8.000% due 8/1/2004 Aaa AAA
1,704,375
2,250,000 6.000% due 8/1/2009 Baa1 A-
2,309,062
900,000 Series E,
6.000% due 5/15/2021 Baa1 A-
915,750
5,500,000 Series H,
7.000% due 2/1/2021 Baa1 A-
6,070,625
Series I: (AMBAC insured):
3,150,000 7.250% due 8/15/2014 Aaa AAA
3,969,000
1,850,000 7.250% due 8/15/2014 Aaa AAA
2,109,000
945,000 7.250% due 8/15/2015 AAA AAA
1,100,925
555,000 7.250% due 8/15/2015 Aaa AAA
632,700
5,115,000 New York City, New York, Health
Corporation,
Series A,
6.300% due 2/15/2020 Baa BBB
5,389,931
New York City, New York, Housing
Development Corporation, Multifamily
Housing, Pass-Through Certificates,
5,900,000 5.500% due 11/1/2020 A1 AA
5,855,750
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York City, New York, Housing
Development Corporation, Multifamily
Housing, Pass-Through Certificates
(continued):
$1,679,472 (Cadman Project),
6.500% due 11/15/2018 NR NR
$ 1,706,763
1,064,405 (Heywood Project),
6.500% due 8/15/2017 NR NR
1,075,049
1,342,193 (Kelly Project),
6.500% due 2/15/2018 NR NR
1,364,004
1,728,125 (Riverbend Project),
6.500% due 11/15/2018 NR NR
1,777,808
Series A: (AMBAC insured),
2,425,035 6.500% due 12/20/2001 Aaa AAA
2,503,848
4,000,000 6.600% due 4/1/2030 NR AAA
4,380,000
Series 1991 A,
5,000,000 7.350% due 6/1/2019 NR AAA
5,393,750
7,650,000 5.850% due 5/1/2026 AA AA
7,764,750
New York City, New York, Industrial
Development Agency:
1,965,000 Civil Facility Revenue, International
Center, (Integrated Student Dormitory
Project),
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
2,438,438
3,000,000 New York City, New York, Inverse Floaters,
Series B, (FSA insured),
8.441% due 10/1/2007 Aaa AAA
3,303,750
New York City, New York, Municipal Water
Finance Authority, Water & Sewer System
Revenue:
Series A:
3,270,000 (FSA Insured), 7.000% due 6/15/2015 Aaa AAA
3,695,100
3,650,000 (MBIA Insured), 7.250% due 6/15/2015 Aaa AAA
4,316,125
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
$5,000,000 New York City, New York, (Short/Rite),
6.600% due 8/1/2009 Baa1 A-
$ 5,718,750
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
3,347,412
New York State Dormitory Authority, Revenue
Bonds:
(City University), Series A:
2,500,000 7.500% due 7/1/2006 Baa1 BBB
2,784,375
1,040,000 7.625% due 7/1/2013 Baa1 BBB
1,162,200
(City University), Series C:
3,000,000 7.625% due 7/1/2014 Baa1 BBB
3,352,500
2,000,000 8.200% due 7/1/2014 Baa1 BBB
2,390,000
140,000 (City University), Series R,
10.875% due 7/1/2014 NR BBB
148,750
2,200,000 (City University), Series T,
10.250% due 7/1/2012 BAA1 BBB
2,447,500
1,250,000 (City University), Series U,
6.250% due 7/1/2002 BAA1 BBB
1,353,125
3,000,000 (Cooper Union), (FSA insured),
7.200% due 7/1/2020 Aaa AAA
3,472,500
1,000,000 (Cornell University), Series A,
7.375% due 7/1/2030 Aa AA
1,170,000
250,000 (Court Facilities Lease), Revenue,
5.625% due 5/15/2013 Baa1 BBB+
249,687
1,230,000 (Crouse Community Center), (FHA insured),
7.500% due 8/1/2029 NR AAA
1,409,888
1,600,000 (Crouse Irving Memorial Hospital),
10.500% due 7/1/2017 NR A+
1,682,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenue
Bonds (continued):
$2,000,000 (Culinary Institute of America),
6.000% due 7/1/2022 NR AAA
$ 2,120,000
5,000,000 Department of Education, State of New York
Issue,
7.750% due 7/1/2021 BAA1 BBB+
5,918,750
200,000 Department of Health,
7.250% due 7/1/2002 Baa1 BBB
226,500
Genessee Valley, (FHA Insured), Series B:
685,000 6.850% due 8/1/2016 NR AA
756,925
1,000,000 6.900% due 8/1/2032 NR AA
1,128,750
1,280,000 Group 1 Optional - Supplemental Higher
Education,
7.250% due 10/1/2003 NR AAA
1,523,200
2,450,000 (Iroquois Nursing), (FHA Insured),
7.050% due 2/1/2031 NR AA-
2,740,938
2,700,000 (Manhattan College),
6.500% due 7/1/2019 NR AA
2,909,250
490,000 (Manhattan Eye, Ear & Throat Hospital),
11.500% due 7/1/2009 Baa BBB
504,088
1,375,000 (Heritage House Nursing Center), (FHA
Insured),
7.000% due 8/1/2031 NR AAA
1,546,875
1,500,000 (New Hope Community),
5.700% due 7/1/2017 Aa NR
1,530,000
(New York Medical College)
(Cornell University), Series A:
2,000,000 7.375% due 7/1/2020 Aa AA
2,340,000
220,000 6.700% due 7/1/2001 NR AA
243,925
2,000,000 (Long Island Medical Center),
7.750% due 8/15/2027 Aa AAA
2,245,000
1,125,000 (University of Rochester),
5.625% due 7/1/2012 A1 A+
1,165,781
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenue
Bonds (continued):
$11,940,000 (University Educational Facilities):
5.875% due 5/15/2017 Baa1 BBB+
$12,432,525
3,500,000 5.900% due 8/1/2020 NR AA
3,653,125
(Wartburg Home Project), (FHA insured),
3,150,000 5.800% due 2/1/2028 NR AA
3,228,750
4,800,000 5.875% due 2/1/2033, (FHA insured) NR AAA
4,968,000
1,000,000 (Society of New York Hospital),
9.750% due 7/1/2015 Baa1 BBB+
1,046,250
2,450,000 (St. Vincent's Hospital and Medical
Center), (FHA insured),
7.400% due 8/1/2030 Aa AAA
2,789,937
1,500,000 (State University Educational Facility),
Series A,
6.625% due 5/15/1999 Baa1 BBB
1,638,750
1,330,000 (Thomas S. Clarkson Men's College),
9.200% due 7/1/2009 A1 A
1,394,838
2,500,000 (Upstate Community College),
5.750% due 7/1/2022 NR AAA
2,609,375
(Upstate Community College), Series A:
2,000,000 7.250% due 7/1/2010 Baa1 BBB
2,267,500
5,850,000 7.750% due 7/1/2018 Baa1 BBB
6,610,500
2,750,000 8.000% due 7/1/2019 Baa1 BBB
3,190,000
285,000 (Upstate Community College), Series B,
7.100% due 7/1/2001 Baa1 BBB
324,188
3,150,000 Revenue Bonds,
5.500% due 7/1/2020 Baa1 BBB
3,051,562
7,000,000 Revenue Bonds, Series B,
6.000% due 7/1/2014 Baa1 BBB
7,385,000
New York State Energy, Research &
Development Authority:
11,000,000 5.250% due 8/15/2020 AA2 AA-
10,862,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
- ------------------------------------------------------------------------------
- ----------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Energy, Research &
Development Authority (continued):
$3,000,000 5.950% due 12/1/2027 Baa1 BBB+
$ 3,063,750
(MBIA insured),
6,000,000 5.700% due 12/1/2028 Aaa AAA
6,105,000
New York State Energy, Research &
Development Authority, Electric Facilities
Revenue Bonds:
1,000,000 (Long Island Lighting Company Project):
Series D,
6.900% due 8/1/2022 Baa3 BB+
1,083,750
4,900,000 Series A,
7.150% due 12/1/2020 Baa3 BB+
5,365,500
2,250,000 (Consolidated Edison Company),
Series A,
7.125% due 3/15/2022 Aa2 AA-
2,477,812
New York State Energy, Research &
Development Authority, Electric & Gas
Corporation, Gas Facilities Revenue Bonds:
(Brooklyn Union Gas Company):
1,500,000 11.212% due 7/1/2026 A1 A
1,931,250
5,000,000 Series 1,
7.125% due 12/1/2020 A1 A
5,475,000
1,500,000 (Corning National Gas Corporation), Series
A,
8.250% due 12/1/2018 BAA2 NR
1,764,375
Pollution Control Revenue Bonds:
1,000,000 (Central Hudson Gas and Electric Company),
8.375% due 12/1/2028 A3 A-
1,192,500
2,500,000 (New York State Electric and Gas
Corporation),
Series 1984A,
12.000% due 5/1/2014 A3 BBB
2,643,750
3,500,000 (Niagara Mohawk Power Corporation Project),
Series A,
11.250% due 7/1/2014 Baa2 BBB
3,714,375
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
- ------------------------------------------------------------------------------
- ------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Energy, Research &
Development Authority, Electric & Gas
Corporation, Gas Facilities Revenue Bonds
(continued):
(Orange & Rockland Utilities Project):
$5,500,000 10.250% due 10/1/2014 A2 A+
$ 5,885,000
2,500,000 9.000% due 8/1/2015 A2 A+
2,746,875
2,660,000 (Rochester Gas & Electric Company), Series
C, (FSA insured)
8.375% due 12/1/2028 Aaa AAA
3,142,125
2,250,000 Series B,
12.000% due 5/1/2014 A3 BBB
2,379,375
500,000 Series C,
12.300% due 7/1/2014 A3 BBB
536,875
New York State Environmental Facilities
Corporation, Environmental Elements,
Revenue Bonds:
8,250,000 New York City Municipal, Series A,
7.250% due 6/15/2010 Aa A
9,755,625
Pollution Control Revenue, State Water
Revolving Fund, Series A:
1,000,000 6.200% due 6/15/2001 Aa A
1,118,750
1,950,000 7.500% due 6/15/2012 Aa A
2,308,312
Resource Recovery Revenue, Huntington
Project, Series A,
5,765,000 7.375% due 10/1/1999 Baa NR
6,413,562
Resource Recovery Revenue, Series A,
Huntington Project, Special Obligation:
665,000 8.400% due 12/1/2006 NR BBB+
724,850
690,000 8.400% due 12/1/2007 NR BBB+
752,100
Occidental Petroleum Corporation, Waste
Disposal Revenue, Series A,
2,000,000 5.700% due 9/1/2028 Baa2 BBB
2,002,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Housing Finance Agency,
Multifamily Units, Housing Bonds, Second
Mortgage,
$5,500,000 6.125% due 3/15/2020 Baa1 BBB
$ 5,685,625
1,500,000 Series C,
6.500% due 8/15/2024 Aa AAA
1,601,250
Series D:
5,555,000 5.625% due 9/15/2013 Baa1 BBB
5,534,169
1,250,000 6.250% due 8/15/2023 Aa NR
1,362,500
2,905,000 Series 1985A, 10.000% (FHA insured), due
11/15/2025 AA AA-
3,061,144
1,355,000 Risley Dent Towers, Section 8, 10.125% due
5/1/2021 Aa NR
1,390,569
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
4,774,612
New York State Local Government Assistance
Corporation:
3,285,000 6.000% due 4/1/2014 A A
3,572,438
1,000,000 Series A,
6.875% due 4/1/2019 A A
1,128,750
Series B:
2,450,000 6.000% due 4/1/2012 A A
2,575,563
13,000,000 6.250% due 4/1/2021 A A
14,023,750
Series C,
7,000,000 5.500% due 4/1/2017 A A
7,192,500
Series E,
5,250,000 5.250% due 4/1/2016 A A
5,223,750
New York State Medical Care Facilities
Finance Agency Revenue Bonds:
Series F,
6,500,000 5.375% due 2/15/2014 Baa1 BBB+
6,313,125
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Medical Care Facilities
Finance Agency Revenue Bonds (continued):
(Central Suffolk Hospital Project):
$2,500,000 6.125% due 11/1/2016 NR BBB
$ 2,543,750
3,500,000 5.500% due 2/15/2022 NR AAA
3,530,625
(FHA insured),
10,370,000 5.400% due 8/15/2033 Aa AA
10,110,750
2,000,000 Long Term Healthcare, Series B,
6.450% due 11/1/2014 Aaa AAA
2,202,500
12,300,000 Series A, (FHA insured),
5.600% due 8/15/2013 Aa AAA
12,515,250
7,965,000 (Albany Medical), Series A, (FHA insured),
8.000% due 2/15/2028 AA A
9,109,969
1,245,000 (Arden Hill Nursing Home), Insured
Mortgage,
(FHA insured),
9.500% due 1/15/2024 NR NR
1,271,456
3,000,000 (Beth Israel Medical Center), Series A,
(MBIA insured),
7.500% due 11/1/2010 Aaa AAA
3,525,000
(Columbia Presbyterian), Series A, Insured
Mortgage:
7,500,000 8.000% due 2/15/2025 Aa AA
8,475,000
6,000,000 5.850% due 2/15/2033 Aa NR
6,150,000
Hospital and Nursing Home, Series A:
(FHA insured),
635,000 5.950% due 8/15/2009 NR AAA
668,338
(AMBAC insured):
6,450,000 5.700% due 8/15/2014 Aaa AAA
6,691,875
150,000 6.400% due 11/1/2014 AAA AAA
164,813
250,000 6.100% due 2/15/2002 Aa AA
275,000
1,700,000 7.700% due 2/15/2022 NR A
1,942,250
(Methodist Hospital), (FHA insured),
5,300,000 6.700% due 8/15/2023 NR AA
5,843,250
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Medical Care Facilities
Finance Agency Revenue Bonds (continued):
Hospital and Nursing Home, Series A
(continued):
(FHA insured):
$6,000,000 8.000% due 2/15/2027 NR AA
$ 6,817,500
6,300,000 6.375% due 8/15/2029 NR AAA
6,804,000
4,100,000 7.450% due 8/15/2031 Aa AA
4,694,500
5,000,000 6.450% due 2/15/2032 Aa AA
5,393,750
2,500,000 6.650% due 8/15/2032 Aa AA
2,737,500
Insured Mortgage Nursing Home, (FHA
insured),
3,000,000 6.375% due 8/15/2033 Aa AA
3,198,750
(St. John's Riverside Project),
370,000 10.125% due 1/15/2024 Aa AA
377,863
1,000,000 (King Hospital Project), Insured Mortgage,
(FHA insured),
8.500% due 1/15/2022 NR AAA
1,118,750
850,000 (Lakeside Hospital and Nursing Home), (FHA
insured),
8.750% due 2/15/2015 Aa AA-
912,688
Mental Health Service Facilities, Series A:
9,600,000 8.875% due 8/15/2007 Baa1 BBB+
11,340,000
2,500,000 7.700% due 2/15/2018 Baa1 BBB+
2,843,750
3,730,000 7.750% due 2/15/2020 Baa1 BBB+
4,284,838
500,000 Nursing Home Insured Mortgage, Series B,
10.500% due 1/15/2024 Aa AA
510,625
(St. Luke's Hospital), Series B, (FHA
insured),
3,550,000 7.450% due 2/15/2029 NR AAA
4,211,188
5,000,000 Secured Hospital Revenue Bonds, Series
91-A,
7.400% due 8/15/2021 Baa BBB
5,718,750
New York State Mortgage Agency Revenue:
195,000 10.875% due 10/1/2011 Aa NR
201,338
1,535,000 Series A, Aa NR
1,623,263
7.300% due 4/1/2017
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Mortgage Agency Revenue
(continued):
$1,800,000 Series GG, Homeowner Mortgage,
8.125% due 4/1/2020 Aa NR
$ 1,923,750
New York State Municipal Building Bank
Agency:
Special Revenue Program:
1,000,000 Buffalo, Series A,
6.875% due 3/15/2006 NR BBB+
1,130,000
1,500,000 Rochester, Series A,
6.750% due 3/15/2011 NR A+
1,655,625
2,000,000 New York State Power Authority, Revenue &
General Purpose Bonds, Series V, (MBIA
insured),
7.875% due 1/1/2013 Aaa AAA
2,305,000
1,500,000 New York, 34th Street Partnership Inc.,
5.500% due 1/1/2023 A1 NR
1,501,875
New York State Thruway Authority, Revenue:
3,150,000 5.250% due 4/1/2013 Baa1 BBB
3,063,375
3,250,000 Series B,
5.000% due 1/1/2014 Aaa AAA
3,185,000
2,900,000 New York State Urban Development
Corporation
5.625% due 1/1/2007 Baa1 BBB
2,921,750
New York State, Urban Development
Corporation, Correctional Capital
Facilities, Revenue Bonds:
1,100,000 5.500% due 1/1/2015 Baa1 BBB
1,076,625
850,000 Series 1, (FSA insured),
7.500% due 1/1/2020 Aaa AAA
1,010,438
(Newark - Wayne Community Hospital):
2,970,000 Series A,
7.600% due 9/1/2015 NR NR
3,040,537
2,400,000 Series B, (FHA insured),
5.875% due 1/15/2032 NR AAA
2,505,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ---
- -----------------------------------------------------------------------------
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
- ------------------------------------------------------------------------------
- ----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
$3,500,000 Niagara Falls, New York, Bridge Commission
Toll Revenue, Series B,
5.250% due 10/1/2023 Aaa AAA
$ 3,478,125
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
2,497,500
2,200,000 Oneida-Herkimer, New York, Solid Waste
Management Authority, Solid Waste System
Revenue Bonds,
6.750% due 4/1/2014 Baa BBB
2,378,750
550,000 Onondaga County, New York, General
Obligation Bonds,
5.850% due 2/15/2002 Aa AA
603,625
500,000 Oswego County, New York, General Obligation
Bonds,
6.600% due 6/15/2000 A A
550,625
Port Authority of New York & New Jersey,
Construction Revenue Bonds:
(Delta Airlines):
2,650,000 51st Series,
11.000% due 6/1/2019 A1 AA-
2,809,000
3,000,000 53rd Series,
8.700% due 7/15/2020 A1 AA-
3,285,000
8,060,000 58th Series,
7.500% due 6/15/2017 A1 AA-
8,352,175
2,000,000 61st Series,
8.125% due 8/15/2023 A1 AA-
2,165,000
1,500,000 87th Series,
5.250% due 7/15/2021 A1 AA-
1,486,875
4,490,000 89th Series,
5.125% due 10/1/2021 A1 AA-
4,400,200
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
Port Authority of New York & New Jersey,
Construction Revenue Bonds (continued):
$8,000,000 Series IR,
6.950% due 6/1/2008 BA1 BB
$ 8,700,000
750,000 Schenectady, New York, Industrial
Development Agency, Industrial Development
Revenue, (Broadway Center Project),
7.375% due 9/1/2009 AAA AAA
860,625
State of New York, Certificates of
Participation:
City University of New York, (John Jay
College),
6,000,000 7.250% due 8/15/2007 Baa1 BBB
6,502,500
(Hanson Redevelopment Project),
915,000 8.375% due 5/1/2008 NR BBB
1,101,431
State of New York, General Obligation
Bonds:
750,000 6.200% due 11/1/1999 A A-
827,813
6,485,000 7.000% due 11/15/2002 A A-
7,603,663
1,000,000 12.000% due 11/15/2003 A A-
1,563,750
2,750,000 9.875% due 11/15/2005 A A-
3,935,938
1,000,000 Suffolk County, New York, Refunding, Series
F,
5.400% due 7/15/2014 Aaa AAA
1,022,500
2,710,000 Suffolk County, New York, Water Authority,
Waterworks Revenue Bond, Series C,
(AMBAC insured),
6.000% due 6/1/2017 Aaa AAA
2,892,925
Syracuse, New York, General Obligation
Bonds:
1,800,000 6.700% due 2/15/2008 NR NR
2,088,000
500,000 Industrial Development Agency, (James
Square Association), (FHA insured),
7.000% due 8/1/2025 NR AAA
542,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
--------------------------------------------------------------------------
- -----------
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 Aaa AAA
$ 294,688
3,470,000 Series X,
6.000% due 1/1/2014 Aa A+
3,647,838
3,000,000 Series Z,
6.000% due 1/1/2018 Aa A+
3,183,750
4,325,000 Special Obligation, (AMBAC insured),
6.250% due 1/1/2012 Aaa AAA
4,692,625
United Nations Development Corporation, New
York, Revenue Bonds, Senior Lien, Series A:
1,490,000 6.000% due 7/1/2007 A NR
1,575,675
1,170,000 6.000% due 7/1/2012 A NR
1,227,037
3,300,000 6.000% due 7/1/2026 A NR
3,448,500
730,000 Valley Health Development Corporation, New
York, Revenue Bonds, (FHA Insured),
Mortgage Loan,
11.300% due 2/1/2023 NR A
881,475
2,500,000 Warren & Washington Counties, New York,
Industrial Development Agency, Resource
Recovery, Revenue Bonds, Series A,
7.900% due 12/15/2007 B1 NR
2,312,500
Westchester County, New York, Industrial
Development Authority, Resource Recovery
Revenue Bonds:
2,310,000 SCM Corporation, (HRCC Projects),
11.750% due 5/24/2004 NR NR
2,304,225
1,045,000 (Westchester Resco Company Project),
10.500% due 1/1/2000 A A
1,076,350
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
- ------------------------------------------------------------------------------
- ----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
$ 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
$ 308,869
Yonkers, New York, General Obligation
Bonds:
500,000 Series A,
6.000% due 2/15/2001 Aaa AAA
550,625
2,000,000 Yonkers, New York, Refunding, Series C,
(FGIC insured),
5.500% due 9/1/2009 Aaa AAA
2,075,000
PUERTO RICO - 2.9 %
1,495,000 Commonwealth of Puerto Rico, Aqueduct and
Sewer Authority Revenue Bonds,
10.250% due 7/1/2009 Aaa AAA
2,220,075
1,350,000 Commonwealth of Puerto Rico, General
Obligation Bonds,
8.000% due 7/1/2008 Baa1 A
1,582,875
Commonwealth of Puerto Rico, Housing, Bank
& Finance Agency:
1,075,000 Series H, Special Obligation, (FSA
insured),
5.950% due 10/1/2001 Aaa AAA
1,124,719
475,000 Single Family Mortgage, Subsidiary
Prepayment,
7.250% due 12/1/2006 Baa BBB
508,250
6,470,000 Commonwealth of Puerto Rico, Urban Renewal
and Housing Corporation Revenue Bonds,
7.875% due 10/1/2004 Baa BBB
7,577,988
Puerto Rico Electric Power Authority,
Refunding Bonds:
2,500,000 Series L,
8.375% due 7/1/2007 Baa1 A-
2,878,125
250,000 Series M,
8.000% due 7/1/2008 Baa1 A-
291,563
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<CAPTION>
RATINGS
MARKET
(unaudited)
VALUE
FACE VALUE MOODY'S S&P
(NOTE 1)
<C> <S> <C> <C>
<C>
- ------------------------------------------------------------------------------
- -----------
MUNICIPAL BONDS AND NOTES (CONTINUED)
PUERTO RICO (CONTINUED)
$ 470,000 Puerto Rico, Government Development Bank,
General Obligation Bonds,
10.000% due 8/15/2013 Aaa NR
$ 492,325
Puerto Rico, Industrial, Medical &
Environmental Pollution Facilities Finance
Authority, Revenue Bonds, Special
Facilities, (FHA Insured):
2,085,000 (American Airlines), Series A,
8.750% due 12/1/2025 A2 BBB
2,285,681
535,000 (St. Luke's Hospital Project), Series A,
6.100% due 6/1/2001 NR A-
555,062
205,000 (San Pablo Hospital),
10.125% due 8/1/2023 Aa NR
224,475
860,000 Puerto Rico Municipal Finance Agency,
Series A,
8.250% due 7/1/2008 Baa A-
1,001,900
GUAM - 0.2 %
750,000 Guam Government Limited Obligation Highway
Bonds, Series A, (FGIC insured),
5.900% due 5/1/2002 AAA AAA
825,000
500,000 Guam Power Authority Revenue, Series A,
6.300% due 10/1/2022 NR BBB
528,125
VIRGIN ISLANDS - 0.1 %
500,000 Virgin Islands Public Finance Authority
Revenue, Matching Fund Loan Note, Series B,
7.250% due 10/1/2007 AAA AAA
593,750
- ------------------------------------------------------------------------------
- -----------
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $655,530,961)
710,754,893
- ------------------------------------------------------------------------------
- -----------
TOTAL INVESTMENTS (Cost $655,530,961*) 99.8%
710,754,893
OTHER ASSETS AND LIABILITIES (NET) 0.2
1,536,782
- ------------------------------------------------------------------------------
- -----------
NET ASSETS 100.0%
$712,291,675
- ------------------------------------------------------------------------------
- -----------
<FN>
* Aggregate cost for Federal tax purposes.
+++ Security valued in good faith by Board of Directors.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1993
<S> <C> <C>
ASSETS:
Investments, at value (Cost $655,530,961) (Note 1)
See accompanying schedule
$710,754,893
Cash
10,374
Interest receivable
14,619,218
Receivable for Fund shares sold
4,325,660
- ------------------------------------------------------------------------------
- ---------
TOTAL ASSETS
729,710,145
- ------------------------------------------------------------------------------
- ---------
LIABILITIES:
Payable for investment securities purchased $12,706,345
Dividends payable 3,298,060
Notes payable (Note 8) 500,151
Payable for Fund shares redeemed 287,128
Investment advisory fee payable (Note 2) 204,293
Administration fee payable (Note 2) 116,242
Service fees payable (Note 2) 89,791
Distribution fee payable (Note 3) 56,181
Custodian fees payable (Note 2) 37,000
Transfer agent fees payable (Note 2 and 4) 18,200
Accrued expenses and other payables 105,079
- ------------------------------------------------------------------------------
- ---------
TOTAL LIABILITIES
17,418,470
- ------------------------------------------------------------------------------
- ---------
NET ASSETS
$712,291,675
- ------------------------------------------------------------------------------
- ---------
NET ASSETS CONSIST OF:
Accumulated net realized gain on investments sold $
3,941,996
Unrealized appreciation of investments
55,223,932
Par value
402,932
Paid-in capital in excess of par value
652,722,815
- ------------------------------------------------------------------------------
- ---------
TOTAL NET ASSETS
$712,291,675
- ------------------------------------------------------------------------------
- ---------
NET ASSET VALUE:
CLASS A SHARES:
NET ASSET VALUE redemption price per share
($575,165,606 / 32,534,995 shares of beneficial interest
outstanding)
$17.68
- ------------------------------------------------------------------------------
- ---------
Maximum offering price per share ($17.68 / 0.955) (based on sales
charge
of 4.5% of the offering price on December 31, 1993)
$18.51
- ------------------------------------------------------------------------------
- ---------
CLASS B SHARES:
NET ASSET VALUE and offering price per share+
($137,126,069 / 7,758,193 shares of beneficial interest
outstanding)
$17.68
- ------------------------------------------------------------------------------
- ---------
<FN>
+ Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
<S> <C> <C>
<C>
INVESTMENT INCOME:
Interest
$42,663,005
- ------------------------------------------------------------------------------
- ----------
EXPENSES:
Investment advisory fee (Note 2) $2,218,952
Sub-investment advisory and/or administration fee
(Note 2) 1,263,785
Service fees (Note 2) 971,054
Distribution fee (Note 3) 409,790
Transfer agent fees (Notes 2 and 4) 194,696
Custodian fees (Note 2) 113,965
Legal and audit fees 63,042
Directors' fees and expenses (Note 2) 41,687
Other 203,301
- ------------------------------------------------------------------------------
- ----------
TOTAL EXPENSES
5,480,272
- ------------------------------------------------------------------------------
- ----------
NET INVESTMENT INCOME
37,182,733
- ------------------------------------------------------------------------------
- ----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTES 1 AND 5):
Net realized gain on investments sold during the
year
11,090,806
Net unrealized appreciation of investments during
the year
16,938,786
- ------------------------------------------------------------------------------
- ----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
28,029,592
- ------------------------------------------------------------------------------
- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$65,212,325
- ------------------------------------------------------------------------------
- ----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
YEAR ENDED
YEAR ENDED
12/31/93
12/31/92
<S> <C> <C>
Net investment income $ 37,182,733 $
32,938,733
Net realized gain on investments sold during the year 11,090,806
5,802,149
Net unrealized appreciation of investments during the
year 16,938,786
6,297,007
- ------------------------------------------------------------------------------
- --------
Net increase in net assets resulting from operations 65,212,325
45,037,889
Distributions to shareholders from net investment income:
Class A (33,113,806)
(33,210,090)
Class B (4,116,599)
(58,333)
Distributions from capital (Note 1):
Class A --
(176,320)
Class B --
(311)
Distribution to shareholders from net realized gain on
investments:
Class A (7,531,725)
(1,077,979)
Class B (1,641,245)
(28,612)
Net increase in net assets from (Note 6):
Class A share transactions 21,895,581
55,963,955
Class B share transactions 117,947,400
18,050,088
- ------------------------------------------------------------------------------
- --------
Net increase in net assets 158,651,931
84,500,287
NET ASSETS:
Beginning of year 553,639,744
469,139,457
- ------------------------------------------------------------------------------
- --------
End of year (including undistributed net investment
income of $47,672, at December 31, 1992) $712,291,675
$553,639,744
- ------------------------------------------------------------------------------
- --------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
FINANCIAL HIGHLIGHTS
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH YEAR:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1993# 1992 1991 1990
<S> <C> <C> <C> <C>
Net asset value, beginning of year $17.12 $16.77 $15.94 $16.26
- ------------------------------------------------------------------------------
Income from investment operations:
Net investment income 1.02 1.12 1.15 1.16
Net realized and unrealized
gain/(loss) on investments 0.80 0.39 0.84
(0.32)
- ------------------------------------------------------------------------------
Total from investment operations 1.82 1.51 1.99 0.84
- ------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (1.03) (1.12) (1.16)
(1.16)
Distributions from net capital gains (0.23) (0.03) -- --
Distributions from capital (Note 1) -- (0.01) -- --
- ------------------------------------------------------------------------------
Total Distributions: (1.26) (1.16) (1.16)
(1.16)
- ------------------------------------------------------------------------------
Net asset value, end of year $17.68 $17.12 $16.77 $15.94
- ------------------------------------------------------------------------------
Total return++ 10.93% 9.36% 12.98%
5.41%
- ------------------------------------------------------------------------------
Ratios to average net
assets/Supplemental Data:
Net assets, end of year (in 000's) $575,166 $535,514 $469,139
$428,304
Ratio of operating expenses to
average net assets 0.78% 0.67% 0.64%
0.64%
Ratio of net investment income to
average net assets 5.83% 6.56% 7.04%
7.31%
Portfolio turnover rate 20% 30% 31%
18%
- ------------------------------------------------------------------------------
<FN>
* 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.
# Per share amounts have been calculated using the monthly average share
method, which more appropriately presents the per share data for this year
since use of the undistributed method did not accord with results of
operations.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
FINANCIAL HIGHLIGHTS
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH YEAR:
<TABLE>
<CAPTION>
PERIOD
ENDED
YEAR ENDED DECEMBER 31,
DECEMBER 31,
1989 1988 1987 1986 1985
1984*
<S> <C> <C> <C> <C> <C>
<C>
Net asset value, beginning of
year $15.97 $15.37 $16.71 $15.48 $13.90
$14.25
- ------------------------------------------------------------------------------
- --------------
Income from investment
operations:
Net investment income 1.16 1.15 1.14 1.20 1.24
1.16+++
Net realized and unrealized
gain/(loss) on investments 0.26 0.61 (1.33) 1.52 1.58
(0.35)
- ------------------------------------------------------------------------------
- --------------
Total from investment
operations 1.42 1.76 (0.19) 2.72 2.82
0.81
- ------------------------------------------------------------------------------
- --------------
Less distributions:
Dividends from net investment
income (1.13) (1.16) (1.14) (1.20) (1.24)
(1.16)
Distributions from net
capital gains -- -- (0.01) (0.29) --
- --
Distributions from capital
(Note 1) -- -- -- -- --
- --
- ------------------------------------------------------------------------------
- --------------
Total Distributions: (1.13) (1.16) (1.15) (1.49) (1.24)
(1.16)
- ------------------------------------------------------------------------------
- --------------
Net asset value, end of year $16.26 $15.97 $15.37 $16.71 $15.48
$13.90
- ------------------------------------------------------------------------------
- --------------
Total return++ 9.18% 11.82% (1.09%) 18.13% 21.03%
6.90%
- ------------------------------------------------------------------------------
- --------------
Ratios to average net assets/
Supplemental Data:
Net assets, end of year
(000's) $442,563 $429,703 $202,265 $218,980 $125,365
$54,182
Ratio of operating expenses
to average net assets 0.66% 0.64% 0.68% 0.68% 0.81%
0.77%+**
Ratio of net investment
income to average net
assets 7.17% 7.50% 7.22% 7.25% 8.20%
8.94%**
Portfolio turnover rate 7% 27% 22% 11% 20%
45%
- ------------------------------------------------------------------------------
- --------------
<FN>
* 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.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
-------------------------------------------------------------------------
- --
<TABLE>
FINANCIAL HIGHLIGHTS
FOR A CLASS B SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
<CAPTION>
YEAR
PERIOD
ENDED
ENDED
12/31/93#
12/31/92*
<S> <C> <C>
Net asset value, beginning of period $ 17.12 $
16.93
- ------------------------------------------------------------------------------
- -------
Income from investment operations:
Net investment income 0.94
0.17
Net realized and unrealized gain on investments 0.80
0.20
- ------------------------------------------------------------------------------
- -------
Total from investment operations 1.74
0.37
- ------------------------------------------------------------------------------
- -------
Less distributions:
Dividends from net investment income (0.95)
(0.15)
Distributions from capital (Note 1) --
- --+
Distributions from net capital gains (0.23)
(0.03)
- ------------------------------------------------------------------------------
- -------
Total Distributions: (1.18)
(0.18)
- ------------------------------------------------------------------------------
- -------
Net asset value, end of period $ 17.68 $
17.12
- ------------------------------------------------------------------------------
- -------
Total return++ 10.33%
2.23%
- ------------------------------------------------------------------------------
- -------
Ratios to average net assets/Supplemental Data:
Net assets, end of period (in 000's) $137,126
$18,125
Ratio of net investment income to average net asset 5.31%
5.94%**
Ratio of operating expenses to average net assets 1.31%
1.30%**
Portfolio turnover rate 20%
30%
- ------------------------------------------------------------------------------
- -------
* The Fund's Class B shares commenced operations on November 6, 1992.
** 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
method, which more appropriately presents the per share data for this year
since use of the undistributed method did not accord with results of
operations.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Smith Barney Shearson New York Municipals Fund Inc. (the "Fund") was
incorporated 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 Securities 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 to the general public: 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"). 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
conversion feature of Class B shares. The following is a summary of
significant
accounting 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
consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
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
recorded 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. Investment income and realized and unrealized gains and losses are
allocated based upon relative net assets of each class.
34
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Dividends and distributions to shareholders: Dividends from net investment
income 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 Shearson Inc. ("Smith Barney Shearson")
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. Additional 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 ordinary income and capital gains. Income distributions and capital gain
distributions on a Fund level are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and
gains
on various investment securities held by the Fund, timing differences and
differing characterization of distributions made by the Fund as a whole.
Federal income taxes: It is policy of the Fund to qualify as a regulated
investment 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.
Reclassifications: During the current year, the Fund adopted Statement of
Position 93-2 "Determination, Disclosure, and Financial Statement Presentation
of Income, Capital Gain, and Return of Capital Distributions by Investment
Companies." Accordingly, certain reclassifications have been made to the
components of capital in the Statement of Net Assets to conform with the
accounting and reporting guidelines of this statement. Distributions in excess
of book basis accumulated realized gains or undistributed net investment
income
that were the result of permanent book and tax accounting differences have
been
reclassified to paid-in capital. In addition, amounts distributed in excess of
accumulated net investment income as determined for financial statement
purposes
which had previously been reported as distributions from paid-in capital have
been reclassified to accumulated net investment income. Accordingly, amounts
as
of December 31, 1992 have been restated to reflect an increase in paid-in
capital of $12,532,081, an increase in undistributed net investment income of
$47,672 and a decrease in accumulated net realized gains of $12,579,753. The
Statement of Changes in Net Assets and Financial Highlights for the year ended
December 31,
35
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
1992 have not been restated to reflect this change in presentation. Net
investment income, net realized gains and net assets were not affected by this
change.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER RELATED PARTY
TRANSACTIONS
Up to the close of business on July 30, 1993, the Fund had entered into an
investment advisory agreement with Shearson Lehman Brothers Inc. ("Shearson
Lehman Brothers") on behalf of Shearson Lehman Advisors, a member of the Asset
Management Group of Shearson Lehman Brothers. Under the investment advisory
agreement, the Fund paid a monthly fee based on the following annual rates:
.35%
of the value of the Fund's average daily net assets up to $500 milion and .32%
of the value of its average daily net assets in excess of $500 million.
As of the close of business on July 30, 1993, The Travelers Inc. (which at the
time was known as Primerica Corporation ("Travelers") and Smith Barney, Harris
Upham & Co. Incorporated SBS completed the acquisition of substantially all of
the domestic retail brokerage and asset management businesses of Shearson
Lehman
Brothers and SBS was renamed Smith Barney Shearson Inc. ("Smith Barney
Shearson").
As of the close of business on July 30, 1993, Greenwich Street Advisors, a
division of Mutual Management Corp., which is controlled by Smith Barney
Shearson Holdings Inc. ("Holdings"), succeeded Shearson Lehman Advisors as the
Fund's investment adviser. Holdings is a wholly owned subsidiary of Travelers.
The new investment advisory agreement with Greenwich Street Advisors (the
"Advisory Agreement") contains terms and conditions substantially similar to
the
investment advisory agreement with the predecessor investment adviser and
provides for payment of fees at the same rates as were paid to such
predecessor
investment adviser.
The Fund has also entered into an administration agreement (the
"Administration
Agreement") dated May 21, 1993, with Boston Advisors, an indirect wholly owned
subsidiary of Mellon Bank Corporation ("Mellon"). Under the Administration
Agreement, the Fund pays a monthly fee based on the following 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 excess of $500 million. Prior
to
the close of business on May 21, 1993, Boston Advisors served as sub-
investment
adviser and administrator to the Fund.
36
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
No officer, director or employee of Smith Barney Shearson or Boston Advisors
or
any parent or subsidiary of those corporations receives any compensation from
the Fund for serving as a Director or officer of the Fund. The Fund pays each
Director who is not an officer, director, or employee of Smith Barney Shearson
or Boston Advisors or any of their affiliates $2,000 per annum plus $500 per
meeting attended and reimburses each such Director for travel and out-of-
pocket-
expenses.
Smith Barney Shearson acts as the exclusive distributor of the Fund's shares.
For the year ended December 31, 1993, Smith Barney Shearson received
$5,438,327
from investors 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
circumstances
in which the CDSC is imposed, the amount of the charge ranges between 5% and
1%
of net asset value depending on the number of years since the date of
purchase.
For the year ended December 31, 1993, Smith Barney Shearson received $82,635
from investors in CDSC's 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.
3. DISTRIBUTION AGREEMENT
Smith Barney Shearson acts as distributor of the Fund's shares pursuant to a
distribution agreement with the Fund, and sells shares of the Fund through
Smith
Barney Shearson or its affiliates.
Pursuant to Rule 12b-1 under the 1940 Act, as amended, the Fund has adopted a
Services and Distribution Plan (the "Plan"). Under this Plan, the Fund
compensates Smith Barney Shearson for servicing shareholder accounts for both
Class A and Class B shareholders, and covers expenses incurred in distributing
Class B shares. Smith Barney Shearson 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
Shearson is also paid an annual distribution 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 year ended December 31, 1993, the Fund incurred
$848,117 in service fees for Class A shares. During the year ended December
31,
1993, the Fund
37
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
incurred $122,937 and $409,790 in services 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 servicing and
distribution fees, class specific operating expenses include transfer agent
fees
of $158,417 and $36,279 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 year ended December 31, 1993, amounted to
$274,528,618 and $127,137,360, respectively.
At December 31, 1993, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost amounted to
$57,141,391, and the aggregate gross unrealized depreciation for all
securities
in which there was an excess of tax cost over value amounted to $1,917,459.
6. COMMON STOCK
At December 31, 1993, 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>
YEAR ENDED YEAR
ENDED
DECEMBER 31, 1993 DECEMBER
31, 1992*
Class A shares: Shares Amount Shares
Amount
<S> <C> <C> <C>
<C>
- ------------------------------------------------------------------------------
- -----------
Sold 3,707,118 $65,187,847 4,949,324
$83,687,536
Issued as reinvestment of
dividends 1,542,419 27,192,839 1,344,457
22,726,053
Redeemed (3,991,942) (70,485,105) (2,984,319)
(50,449,634)
- ------------------------------------------------------------------------------
- -----------
Net increase 1,257,595 $21,895,581 3,309,462
$55,963,955
- ------------------------------------------------------------------------------
- -----------
</TABLE>
38
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
<TABLE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<CAPTION>
YEAR ENDED YEAR
ENDED
DECEMBER 31, 1993 DECEMBER
31, 1992*
Class B shares: Shares Amount Shares
Amount
<S> <C> <C> <C>
<C>
- ------------------------------------------------------------------------------
- -----------
Sold 6,705,247 $118,061,679 1,056,196
$18,007,381
Issued as reinvestment of
dividends 232,704 4,113,260 4,018
68,743
Redeemed (238,451) (4,227,539) (1,521)
(26,036)
- ------------------------------------------------------------------------------
- -----------
Net increase 6,699,500 $117,947,400 1,058,693
$18,050,088
- ------------------------------------------------------------------------------
- -----------
<FN>
* On November 6, 1992 the Fund commenced selling Class B shares. Any shares
outstanding prior to November 6, 1992 were designated as Class A shares.
</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, primarily for
temporary
or emergency purposes, including the meeting of redemption requests that
otherwise might require the untimely disposition 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 Interbank Offered
Rate plus .375% on an annualized basis. The Fund and the other affiliated
entities are charged an aggregate commitment fee of $125,000 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 pursuant to the Agreement of no less than 5 to 1. During the year
ended December 31, 1993, the Fund had an average outstanding daily balance of
$13,425 with interest rates ranging from 3.375% to 3.625%. Interest expense
totalled $470 for the year ended December 31, 1993, which is included in other
expenses.
39
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE DIRECTORS AND SHAREHOLDERS OF
SMITH BARNEY SHEARSON NEW YORK MUNICIPALS FUND INC.:
We have audited the accompanying statement of assets and liabilities of
Smith Barney Shearson New York Municipals Fund Inc., (the "Fund") including
the
schedule of portfolio investments, as of December 31, 1993, and the related
statement of operations for the year then ended, the statement of changes in
net
assets for each of the two years in the period then ended, and the financial
highlights for each of the nine years in the period then ended and for the
period January 23, 1984 (Commencement of Operations) to December 31, 1984.
These
financial statements and the financial highlights are the responsibility of
the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain
reasonable assurance about whether the financial statements and financial
highlights are free from material misstatement. An audit includes examining,
on
a test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1993 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred
to above present fairly, in all material respects, the financial position of
Smith Barney Shearson New York Municipals Fund Inc., as of December 31, 1993,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the nine years in the period then ended and for the
period January 23, 1984 (Commencement of Operations) to December 31, 1984, in
conformity with generally accepted accounting principles.
Coopers & Lybrand
Boston, Massachusetts
February 11, 1994
40
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
TAX INFORMATION (UNAUDITED)
FISCAL YEAR ENDED, DECEMBER 31, 1993
Of the dividends paid by the Fund attributable to net investment income
for
the year ended December 31, 1993, 100% is tax-exempt for regular Federal
income
taxes and New York State and City income taxes.
The amount of long-term capital gain paid for the fiscal year ended
December 31, 1993 was $8,180,751.
The above figures may differ from those cited elsewhere in this report
due
to differences in the calculation of income and gains for Securities and
Exchange Commission (book) purposes and Internal Revenue Service (tax)
purposes.
41
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
PARTICIPANTS
DISTRIBUTOR
Smith Barney Shearson Inc.
388 Greenwich Street
New York, New York 10013
INVESTMENT ADVISER
Greenwich Street Advisors
Two World Trade Center
New York, New York 10048
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
42
<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPALS FUND INC.
- ------------------------------------------------------------------------------
- --
GLOSSARY OF COMMONLY USED MUTUAL FUND TERMS
CAPITAL GAIN (OR LOSS) This is the increase (or decrease) in the market value
(price) of a security in your portfolio. If a stock or bond appreciates in
price
there is a capital gain; if it depreciates, there is a capital loss. A capital
gain or loss is "realized" upon the sale of a security; if net capital gains
exceed net capital losses, there may be a capital gain distribution to
shareholders.
CDSC (CONTINGENT DEFERRED SALES CHARGE) One kind of back-end load, a CDSC is
imposed if shares are redeemed during the first few years of ownership. The
CDSC
may be expressed as a percentage of either the original purchase price or the
redemption proceeds. Most CDSCs
decline over time, and some will not be charged if shares are redeemed after a
certain period of time.
DISTRIBUTION RATE This is the rate at which a mutual fund pays out (or
distributes) interest, dividends and realized capital gains to shareholders. A
fund's distribution rate is usually expressed as an annualized percent of the
fund's offering price.
DIVIDEND This is income generated by
securities in a portfolio and distributed after expenses to shareholders.
FRONT-END SALES CHARGE This is the sales charge applied to an investment at
the
time of initial purchase.
NET ASSET VALUE (NAV) Net Asset Value is the total market value of all
securities held by a fund, minus any liabilities, divided by the number of
shares outstanding. It is the value of a single share of a mutual fund on a
given day. The total value of our investment would be the NAV multiplied by
the
number of shares you own.
SEC YIELD This standardized calculation of a mutual fund's yield is based on
a
formula developed by the Securities and Exchange Commission (SEC) to allow
funds
to be compared on an equal basis. It is an annualized yield based on the
portfolio's potential earnings from dividends, interest and yield to maturity
of
its holdings, and it reflects the payments or all portfolio expenses for the
most recent 30-day period. Mutual funds are required to use this figure when
stating yield.
TOTAL RETURN Total return measures a fund's performance, taking into account
the combination of dividends paid and the gain or loss in the value of the
securities held in the portfolio. It may be expressed on an average annual
basis
or cumulative basis (total change over a given period). In addition, total
return may be expressed with or without the effects of sales charges or the
reinvestment of dividends and
capital gains.
Whenever a fund reports any type of performance, it must also report the
average
annual total return according to the standardized calculation developed by the
SEC. The SEC average annual total return calculation includes the effects of
all
fees and sales charges and assumes the reinvestment of all dividends and
capital
gains.
43
<PAGE>
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 SHEARSON
388 GREENWICH STREET 37TH FLOOR
NEW YORK, NY 10013
* After written notification, exchange
privilege may be modified or
terminated at any time.
44
