<PAGE>
[Small box above fund name showing
the Empire State building.]
SMITH BARNEY
NEW YORK
1994 MUNICIPALS
Annual FUND INC.
Report
......................................
December 31, 1994
[LOGO OF SMITH BARNEY Smith Barney Mutual Funds
MUTUAL FUNDS APPEARS Investing for your future.
HERE] Every day.
<PAGE>
- -----------------------------
New York Municipals Fund Inc.
- -----------------------------
Dear Shareholder:
This past year was one of great disappointments and difficulties for
investors in the tax-exempt market. 1994 began with great expectations: both
interest rates and bond issuance were low, which should have portended
another good performance year for the municipal market. The first blow to
these expectations was dealt in February by the Federal Reserve's first
interest rate increase in five years. The goal of this and the five following
increases in the Federal Fund's rate was to slow the pace of economic growth
and forestall a feared increase in the rate of inflation. Each increase in
short-term interest rates resulted in an increase in long-term rates and
downward pressure on the price of municipal bonds. As the year progressed and
prices for bonds continued to decline, selling pressures increased and in
turn put additional downward pressure on the tax-exempt market. The Fund was
not immune to this difficult market environment and ended the year with a
negative total return.
The year 1994 was also noteworthy because the Republican party regained
control of both houses of Congress as well as 30 state legislatures. New
York, of course, contributed to this trend in the gubernatorial election of
Republican George Pataki. He, like most victors this past November, ran on a
campaign platform that stressed less government spending and a reduction in
the state's high personal income tax rate. It is still too early to tell if
and when Governor Pataki will be able to achieve this mandate since state tax
receipts have been weak and the state has a potentially high budget deficit.
It is our belief that the investment climate in 1995 is likely to be more
positive than it was in 1994. We think that the Federal Reserve has been
successful in controlling inflation and will therefore no longer need to
raise interest rates, which should help stabilize the fixed income markets.
The supply/demand balance of the municipal market will be a very important
contributor to its stability and stronger performance in 1995. Estimates call
for a substantial reduction in the amount of new issuance in 1995, while at
the same time a large amount of older, higher-coupon debt will be either
called or matured from the market. Demand for tax-free bonds should continue
to be strong, especially in high-tax states such as New York, which should
lead to strong bond prices.
On the budget front, both New York State and New York City have recently
announced that they are facing large budget deficits because of an acute
slowdown in tax receipts. Mayor Giuliani recently announced extensive
reductions in employment and social service spending programs that should
enable him to balance the City's budget. Governor Pataki, in his recent State
of the State budget message, called for the elimination of 11,000 state jobs
and significant reductions in spending to reflect the state's financial
situation. Governor Pataki also indicated that the state and its agencies
will be reducing
1
<PAGE>
its bond issuance in 1995 in order to avert a downgrade in the state's debt
rating. This alone will be a positive for the New York municipal market since it
will not have to absorb large, deficit-financing bond issuance. Our outlook for
New York is quite positive as the governor and the legislature work together
between now and the April 1 budget deadline to curtail spending and increase tax
receipts which will improve the overall financial health of the Empire State.
Portfolio Summary
In response to the Federal Reserve's policy of higher short-term interest
rates and declining prices in the New York tax-exempt market, our investment
strategy has been to keep the Fund's average maturity at approximately 22
years, which enabled the Fund to maximize its tax-exempt income. At the end
of this reporting period, nearly 95% of the Fund's assets were invested in
municipal bonds rated as investment grade by Standard & Poor's Corporation or
Moody's Investors Service, Inc. These high quality investments provide the
portfolio with greater protection against credit risk and are also more
liquid. The majority of the Fund's holdings were in general obligation,
hospital, housing and education.
We appreciate your confidence during the difficult investment environment of
1994, and join you in looking forward to a more benign 1995. Should you have
any questions about your investment in the Fund or how other Smith Barney
mutual funds may help you reach your financial goals, please speak with your
Smith Barney Financial Consultant.
Sincerely,
/s/ Heath B. McLendon /s/ Lawrence T. McDermott
Heath B. McLendon Lawrence T. McDermott
Chairman of the Board Vice President and
Investment Officer
February 20, 1995
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
2
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio Highlights (unaudited) December 31, 1994
- --------------------------------------------------------------------------------
Industry Breakdown
[PIE CHART APPEARS HERE]
Pie chart depicting the allocation of the New York Municipals Fund investment
securities held at December 31, 1994 by industry classification. The pie is
broken in pieces representing industries in the following percentages:
<TABLE>
<CAPTION>
Industry Percentage
<S> <C>
Net Other Assets and Liabilities 0.6%
Other 4.1%
Education 11.7%
Housing 17.2%
Hospital 20.7%
Transportation 7.5%
Pollution Control 3.9%
Industrial Control 3.8%
Utility Revenue 9.7%
General Obligations 20.8%
</TABLE>
Summary of Municipal Bonds and Notes
by Combined Ratings
<TABLE>
<CAPTION>
Standard & Percent
Moody's Poor's of Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Aaa AAA 28.0
Aa AA 16.3
A A 24.0
Baa or BBB 26.5
Ba BB 2.6
B B 0.4
NR NR 2.2
-----
100.0%
</TABLE>
Average Maturity: 22.91 years
3
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Historical Performance -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Net Asset Value Dividends Return of Total
December 31, Beginning Ending Capital Gain Paid Capital Return*
========================================================================================
<S> <C> <C> <C> <C> <C> <C>
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 1.12 $ 0.01 9.36
- ----------------------------------------------------------------------------------------
1993 17.12 17.68 0.23 1.03 -- 10.93
- ----------------------------------------------------------------------------------------
1994 17.68 15.44 0.10 0.99 -- (6.62)
========================================================================================
Total $0.66 $11.33 $ 0.01
========================================================================================
Cumulative Total Return - (1/1/85 through 12/31/94) 132.91%
========================================================================================
</TABLE>
* Figures assume reinvestment of all dividends and capital gains distributions
at net asset value and do not assume deduction of the sales charge
(maximum 4.00%).
THE FUND'S POLICY IS TO DISTRIBUTE DIVIDENDS MONTHLY
AND CAPITAL GAINS, IF ANY, ANNUALLY.
- --------------------------------------------------------------------------------
Average Annual Total Return** -- Class A Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Without Sales Charge With Sales Charge***
================================================================================
<S> <C> <C>
Year Ended 12/31/94 (6.62)% (10.36)%
- --------------------------------------------------------------------------------
Five Years Ended 12/31/94 6.17 5.31
- --------------------------------------------------------------------------------
Ten Years Ended 12/31/94 8.82% 8.38%
================================================================================
</TABLE>
** 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 4.00% sales charge.
NOTE: On November 6, 1992, existing shares of the Fund were designated
Class A and were subject to a maximum 4.50% front-end sales charge and an
annual service fee of 0.15% of the value of the average daily net assets
attributable to that class. Effective November 7, 1994, the front-end sales
charge for Class A shares was reduced to 4.00%. The figures in the above
table have been recalculated on the basis of this new sales charge. The
Fund's average annual rates of return would have been lower had service
fees been in effect prior to November 6, 1992.
4
<PAGE>
Growth of $10,000 invested in Class A Shares
of Smith Barney New York Municipals Fund Inc. vs. Lehman Brothers
Municipal Bond Index and Lipper New York Municipal Fund Average/+/
- --------------------------------------------------------------------------------
December 31, 1984 -- December 31, 1994
[CHART APPEARS HERE]
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 Class A shares on December 31, 1984 through December 31, 1994 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>
<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 Bond
Month Ended of the Fund Index Average
<S> <C> <C> <C>
11/84 $10,000 - -
12/84 $9,600 $10,000 $10,000
03/85 $10,016 $10,403 $10,408
06/85 $10,830 $11,275 $11,216
09/85 $10,744 $11,107 $11,149
12/85 $11,619 $12,005 $11,976
03/86 $12,698 $13,221 $12,939
06/86 $12,516 $13,139 $12,870
09/86 $13,146 $13,845 $13,446
12/86 $13,726 $14,323 $14,022
03/87 $14,059 $14,669 $14,373
06/87 $13,395 $14,271 $13,547
09/87 $13,011 $13,916 $13,096
12/87 $13,576 $14,538 $13,798
03/88 $13,966 $15,038 $14,170
06/88 $14,308 $15,329 $14,471
09/88 $14,745 $15,720 $14,890
12/88 $15,181 $16,013 $15,271
03/89 $15,224 $16,119 $15,334
06/89 $16,133 $17,073 $16,233
09/89 $16,118 $17,085 $16,171
12/89 $16,574 $17,742 $16,688
03/90 $16,591 $17,821 $16,613
06/90 $16,958 $18,237 $17,025
09/90 $16,912 $18,248 $16,918
12/90 $17,470 $19,035 $17,528
03/91 $17,901 $19,464 $17,941
06/91 $18,347 $19,880 $18,359
09/91 $19,130 $20,654 $19,241
12/91 $19,737 $21,347 $19,858
03/92 $19,866 $21,411 $19,879
06/92 $20,625 $22,224 $20,833
09/92 $21,179 $22,816 $21,337
12/92 $21,585 $23,231 $21,768
03/93 $22,342 $24,093 $22,677
06/93 $22,994 $24,882 $23,479
09/93 $23,676 $25,722 $24,257
12/93 $23,945 $26,083 $24,534
3/94 $22,610 $24,651 $23,081
6/94 $22,746 $24,924 $23,167
9/94 $22,830 $25,095 $23,201
12/94 $22,359 $24,734 $22,694
</TABLE>
+ Illustration of $10,000 invested in Class A shares on December 31, 1984
assuming deduction of the maximum 4.00% sales charge at the time of
investment and reinvestment of dividends and capital gains at net asset
value through December 31, 1994.
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.
The Lipper New York Municipal Fund Average is composed of the Fund's
peer group of 83 mutual funds.
Index information is available at month-end only; therefore, the
closest month-end to inception date of the Fund has been used.
Note: All figures cited here represent past performance and do not
guarantee future results.
For a glossary of terms, please turn to the end of this report.
5
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Historical Performance -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<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 0.23 0.95 10.33
- -------------------------------------------------------------------------------------
1994 17.68 15.44 0.10 0.90 (7.17)
- -------------------------------------------------------------------------------------
Total $0.36 $2.00
=====================================================================================
Cumulative Total Return from 11/06/92 through 12/31/94 4.70%
=====================================================================================
</TABLE>
* 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").
THE FUND'S POLICY IS TO DISTRIBUTE DIVIDENDS MONTHLY
AND CAPITAL GAINS, IF ANY, ANNUALLY.
- --------------------------------------------------------------------------------
Average Annual Total Return** -- Class B Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Without CDSC With CDSC***
================================================================================
<S> <C> <C>
Year Ended 12/31/94 (7.17)% (11.10)%
- --------------------------------------------------------------------------------
Inception 11/06/92 through 12/31/94 2.16% 0.91%
================================================================================
</TABLE>
** 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.
NOTE: The Fund began offering Class B shares on November 6, 1992.
Class B shares are subject to a maximum 4.50% CDSC and annual service and
distribution fees of 0.15% and 0.50%, respectively, of the value of the
average daily net assets attributable to that class.
6
<PAGE>
Growth of $10,000 invested in Class B Shares
of Smith Barney New York Municipals Fund Inc. vs Lehman Brothers
Municipal Bond Index and Lipper New York Municipal Fund Average/+/
- --------------------------------------------------------------------------------
November 6, 1992 -- December 31, 1994
[CHART APPEARS HERE]
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 Class B shares on November 6, 1992 through December 31, 1994 as compared
with the growth of a $10,000 investment in the Lehman Brothers Municiapl Bond
Index and Lipper New York Municipal Fund Average. The plot points used to draw
the line graph were as follows:
<TABLE>
<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 B shares Municipal Bond Municipal Bond
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 $10,245
12/92 $10,223 $10,283 $10,374
03/93 $10,569 $10,664 $10,807
06/93 $10,858 $11,013 $11,190
09/93 $11,169 $11,385 $11,560
12/93 $11,279 $11,545 $11,692
3/94 $10,633 $10,911 $11,000
6/94 $10,681 $11,032 $11,041
9/94 $10,706 $11,108 $11,057
12/94 $10,470 $10,948 $10,815
</TABLE>
+ 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, 1994.
* Value does not assume deduction of applicable CDSC.
**Value assumes deduction of applicable CDSC (assuming redemption on December
31, 1994).
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.
The Lipper New York Municipal Fund Average is composed of the Fund's
peer group of 83 mutual funds.
Index information is available at month-end only; therefore, the
closest month-end to inception date of the Fund has been used.
NOTE: All figures cited here represent past performance and do not
guarantee future results.
For a glossary of terms, please turn to the end of this report.
7
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Historical Performance -- Class C Shares
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Net Asset Value Capital Gains Dividends Total
December 31, Beginning Ending Distributed Paid Return*
==================================================================================
<S> <C> <C> <C> <C>
11/10/94 - 12/31/94 $15.19 $15.44 $0.10 $0.12 3.08%
==================================================================================
Total $0.10 $0.12
==================================================================================
Cumulative Total Return -- (11/10/94 through 12/31/94) 3.08%
==================================================================================
</TABLE>
* Figures assume reinvestment of all dividends and capital gains distributions
at net asset value and do not assume deduction of the CDSC.
THE FUND'S POLICY IS TO DISTRIBUTE DIVIDENDS MONTHLY
AND CAPITAL GAINS, IF ANY, ANNUALLY.
- --------------------------------------------------------------------------------
Cumulative Total Return -- Class C Shares**
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Without CDSC With CDSC***
================================================================================
<S> <C> <C>
Inception 11/10/94 through 12/31/94 3.08% 2.08%
================================================================================
</TABLE>
** All average annual total return figures shown reflect the reinvestment of
dividends and capital gains distributions at net asset value.
*** Average annual total return figures shown assume the deduction of the
maximum applicable CDSC which is described in the prospectus.
NOTE: The Fund began offering Class C shares on November 7, 1994.
Class C shares are subject to a maximum 1.00% CDSC and annual service and
distribution fees of 0.15% and 0.55%, respectively, of the value of the
average daily net assets attributable to that class.
8
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments December 31, 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
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- 99.4%
New York -- 96.8%
$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 $1,518,000
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 3,204,650
2,950,000 Series C,
8.500% due 1/1/2019 Baa1 NR 3,156,500
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 2,210,000
Battery Park City Authority, New York, Housing Revenue:
5,000,000 Mortgage Loan, Series A, (FHA Insured),
5.750% due 6/1/2023 (Prerefunded 6/1/2005) NR AAA 4,262,500
Refunding, Series A:
4,850,000 Junior Note,
5.800% due 11/01/2022 A A 4,055,813
5,000,000 Senior Note,
5.700% due 11/01/2020 A1 AA 4,312,500
35,000 Battery Park City Authority, New York,
POD Housing Revenue, (FHA Insured),
8.625% due 06/01/2023 (Prerefunded 06/01/2005) NR NR 41,125
1,300,000 Buffalo, New York, Municipal Water Finance
Authority, Water Systems
Revenue, (FSA Insured),
5.750% due 7/1/2019 Aaa AAA 1,129,375
500,000 Buffalo, New York, Refunding Bonds, (FGIC Insured),
6.250% due 2/1/2016 Aaa AAA 479,375
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (Continued)
New York (continued)
$ 700,000 Central Square, New York, Central School District,
(FGIC Insured),
6.500% due 6/15/2000 Aaa AAA $ 734,125
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 259,063
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 3,723,125
Green Island, New York, General Obligation Bonds:
100,000 9.375% due 11/1/2001 Baa NR 115,500
125,000 9.375% due 11/1/2002 Baa NR 145,781
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- 4,135,000
1,875,000 Lincoln Towers, New York, Housing Corporation,
Mortgage Revenue Bonds, (Lincoln Towers Project),
11.250% due 1/1/2015 NR NR 1,994,531
Lockport Town, New York, Refunding Bonds, (MBIA Insured):
435,000 5.400% due 3/1/2012 Aaa AAA 381,713
430,000 5.400% due 3/1/2013 Aaa AAA 373,563
425,000 5.400% due 3/1/2014 Aaa AAA 365,500
415,000 5.400% due 3/1/2015 Aaa AAA 355,344
Metropolitan Transportation Authority, New York,
Transit Facilities Revenue:
3,555,000 Commuter Facilities Revenue, Series A,
6.500% due 7/1/2024 Baa1 BBB+ 3,257,269
8,500,000 Series K, (AMBAC Insured),
6.000% due 7/1/2016 Aaa AAA 7,851,875
3,630,000 Series M,
6.000% due 7/1/2014 Baa BBB+ 3,217,088
5,000,000 Series O, (MBIA Insured),
6.375% due 7/1/2020 Aaa AAA 4,800,000
5,440,000 Service Contract, Series N,
7.125% due 7/1/2009 Baa1 BBB 5,562,400
4,800,000 Service Contract, Series 5,
6.500% due 7/1/2016 Baa1 BBB 4,488,000
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (Continued)
New York (continued)
$ 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 $ 1,292,188
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 2,851,875
990,000 Civic Facility, (Genesee Hospital), Series A,
6.500% due 11/1/1999 A NR 988,763
2,150,000 Monroe County, New York, Water Authority Revenue,
(AMBAC Insured),
7.000% due 8/1/2019 Aaa AAA 2,193,000
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 3,009,169
New Rochelle, New York, General Obligation Bonds,
(MBIA Insured):
1,250,000 Series B,
6.200% due 8/15/2020 Aaa AAA 1,170,313
450,000 Series C,
6.250% due 3/15/2020 Aaa AAA 420,750
New York City, New York, General Obligation Bonds:
5,000,000 6.600% due 8/1/2009 Baa1 A- 4,706,250
Series A:
5,000,000 6.250% due 8/1/2010 Baa1 A- 4,562,500
3,000,000 6.250% due 8/1/2018 Baa1 A- 2,681,250
Series B:
3,000,000 5.850% due 10/1/2007 Baa1 A- 2,970,000
4,000,000 (MBIA Insured),
6.950% due 8/15/2012 Aaa AAA 4,055,000
Series C:
1,000,000 7.750% due 9/1/2006 Baa1 A- 1,030,000
4,000,000 6.500% due 8/1/2007 Baa1 A- 3,875,000
255,000 Series D, (Unrefunded balance),
8.000% due 8/1/2004 Aaa AAA 273,488
5,500,000 Series H,
7.000% due 2/1/2021 Baa1 A- 5,424,375
Series I, (Unrefunded balance), (AMBAC Insured):
1,850,000 7.250% due 8/15/2014 Aaa AAA 1,930,938
555,000 7.250% due 8/15/2015 Aaa AAA 577,894
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (Continued)
New York (continued)
New York City, New York, General Obligation Bonds (continued):
$ 4,000,000 Series H, Subseries H-1,
6.125% due 08/01/2011 Baa1 A- $ 3,580,000
Series I, (Escrowed to Maturity), (AMBAC Insured):
3,150,000 7.250% due 8/15/2014 Aaa AAA 3,374,438
945,000 7.250% due 8/15/2015 Aaa AAA 1,017,056
6,115,000 New York City, New York, Health & Hospital Corporation,
Series A,
6.300% due 2/15/2020 Baa BBB 5,411,775
New York City, New York, Housing Development Corporation,
Multifamily Housing, Pass-Through Certificates:
1,654,572 (Cadman Project),
6.500% due 11/15/2018 NR NR 1,563,571
1,050,130 (Heywood Project),
6.500% due 10/15/2017 NR NR 988,435
1,330,797 (Kelly Project),
6.500% due 2/15/2018 NR NR 1,259,267
1,711,787 (Riverbend Project),
6.500% due 11/15/2018 NR NR 1,641,176
Series A:
2,197,724 (AMBAC Insured),
6.500% due 12/20/2001 Aaa AAA 2,216,955
(FHA Insured):
5,000,000 7.350% due 6/1/2019 NR AAA 5,125,000
4,000,000 6.600% due 4/1/2030 NR AAA 3,790,000
7,650,000 Series B,
5.850% due 5/1/2026 Aa AA 6,473,813
New York City, New York, Industrial Development Agency:
2,250,000 Civil Facility Refunding Bond, (The Lighthouse Inc. Project),
6.500% due 7/1/2022 Aa2 AA 2,140,313
1,000,000 Civil Facilities Revenue, (New School for Social
Research Project),
Series A, (MBIA Insured),
6.200% due 9/1/2014 Aaa AAA 952,500
1,965,000 Civil Facility Revenue, International Center,
(Integrated Student Dormitory Project), (in default),+
9.000% due 3/1/2009 NR NR 393,000
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- 5,520,500
3,270,000 Series A, (FSA Insured),
7.000% due 6/15/2015 Aaa AAA 3,343,575
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (Continued)
New York (continued)
New York City, New York, Municipal Water Finance Authority,
Water and Sewer System Revenue (continued):
$ 2,390,000 Series B, (Unrefunded),
6.375% due 6/15/2022 A A- $ 2,240,625
New York State Dormitory Authority, Revenue Bonds:
4,250,000 (City University), (AMBAC Insured),
6.300% due 7/1/2024 Aaa AAA 4,000,313
(City University), Series A:
2,500,000 7.500% due 7/1/2006 Baa1 BBB 2,631,250
2,000,000 5.750% due 7/1/2018 Baa1 BBB 1,685,000
7,000,000 (City University), Series B,
6.000% due 7/1/2014 Baa1 BBB 6,168,750
(City University), Series C:
3,000,000 7.625% due 7/1/2014 Baa1 BBB 3,165,000
2,000,000 8.200% due 7/1/2014 Baa1 BBB 2,202,500
2,200,000 (City University),Series T,
10.250% due 7/1/2012 Baa1 BBB 2,293,500
1,250,000 (City University), Series U,
6.250% due 7/1/2002 Baa1 BBB 1,254,688
3,000,000 (City University, Third Generation), Series 2, (MBIA Insured),
6.875% due 7/1/2014 Aaa AAA 3,052,500
3,000,000 (Cooper Union), (FSA Insured),
7.200% due 7/1/2020 Aaa AAA 3,112,500
(Cornell University), Series A:
2,000,000 7.375% due 7/1/2020 Aa AA 2,105,000
1,000,000 7.375% due 7/1/2030 Aa AA 1,048,750
1,230,000 (Crouse Community Center), (FHA Insured),
7.500% due 8/1/2029 NR AAA 1,316,100
1,600,000 (Crouse Irving Memorial Hospital),
10.500% due 7/1/2017 NR A 1,646,000
2,000,000 (Culinary Institute of America),
6.000% due 7/1/2022 NR AAA 1,787,500
Department of Education:
6,000,000 Series A,
6.250% due 7/1/2024 Baa1 BBB 5,310,000
5,000,000 State of New York Issue,
7.750% due 7/1/2021 Baa1 BBB 5,243,750
Department of Health, State of New York Issue:
200,000 7.250% due 7/1/2002 Baa1 BBB 213,000
3,150,000 5.500% due 7/1/2020 Baa1 BBB 2,516,063
3,500,000 (Episcopal Health), (FHA Insured),
5.900% due 8/1/2020 NR AA 3,093,125
3,400,000 (Fordham University), (FGIC Insured),
5.750% due 7/1/2015 Aaa AAA 3,055,750
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
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New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (Continued)
New York (continued)
New York State Dormitory Authority, Revenue
Bonds (continued):
Genessee Valley, (FHA Insured):
$ 1,000,000 Series A,
6.900% due 8/1/2032 NR AA $ 1,013,750
685,000 Series B,
6.850% due 8/1/2016 NR AA 694,419
1,230,000 Group 1 Optional - Supplemental Higher Education,
7.250% due 10/1/2003 NR AAA 1,296,113
1,360,000 (Heritage House Nursing Center), (FHA Insured),
7.000% due 8/1/2031 NR AAA 1,368,500
2,450,000 (Iroquois Nursing), (FHA Insured),
7.050% due 2/1/2031 NR AA- 2,471,438
2,500,000 (Jewish Geriatric Center), (FHA Insured),
7.150% due 8/1/2014 NR AAA 2,550,000
3,000,000 (Leake & Watts Services Inc.),(MBIA Insured),
6.000% due 7/1/2014 Aaa AAA 2,786,250
2,000,000 (Long Island Medical Center), Series A, (FHA Insured),
7.750% due 8/15/2027 Aa AAA 2,137,500
2,700,000 (Manhattan College),
6.500% due 7/1/2019 NR AA 2,554,875
480,000 (Manhattan Eye, Ear & Throat Hospital),
11.500% due 7/1/2009 Baa BBB+ 489,000
1,500,000 (New Hope Community),
5.700% due 7/1/2017 Aa NR 1,276,875
220,000 (New York Medical College),
6.700% due 7/1/2001 NR AA 231,275
4,800,000 (NY Catholic), (FHA Insured),
5.875% due 2/1/2033 NR AAA 4,050,000
1,000,000 (Society of New York Hospital),
9.750% due 7/1/2015 Baa1 BBB+ 1,033,750
2,450,000 (St. Vincent's Hospital and Medical Center), (FHA Insured),
7.400% due 8/1/2030 Aa AAA 2,535,750
(State University Educational Facility):
Series A:
1,500,000 6.625% due 5/15/1999 Baa1 BBB+ 1,546,875
6,000,000 6.375% due 5/15/2014 Baa1 BBB+ 5,580,000
7,500,000 5.875% due 5/15/2017 Baa1 BBB+ 6,543,750
4,500,000 Series B,
6.250% due 5/15/2014 Baa1 BBB+ 4,123,125
(University of Rochester):
Series A:
1,125,000 5.625% due 7/1/2012 A1 A+ 990,000
7,370,000 6.500% due 7/1/2019 A1 A+ 7,084,413
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (Continued)
New York (continued)
New York State Dormitory Authority, Revenue
Bonds (continued):
$ 5,260,000 (Strong Memorial Hospital),
5.750% due 7/1/2014 A1 A+ $ 4,609,075
3,150,000 (Wartburg Home Project), (FHA Insured),
5.800% due 2/1/2028 NR AA 2,646,000
(Upstate Community College), Series A:
2,000,000 7.250% due 7/1/2010 A BBB 2,052,500
8,550,000 5.700% due 7/1/2021 Baa1 BBB- 7,053,750
2,000,000 5.750% due 7/1/2022 NR AAA 1,735,000
285,000 (Upstate Community College), Series B,
7.100% due 7/1/2001 Baa1 BBB- 301,031
New York State Energy, Research & Development
Authority, Electric Facilities Revenue Bonds:
(Consolidated Edison Company Project), Series A:
2,250,000 7.125% due 3/15/2022 Aa3 A+ 2,238,750
4,750,000 7.125% due 12/1/2029 Aa3 A+ 4,779,688
(Long Island Lighting Company Project):
4,900,000 Series A,
7.150% due 12/1/2020 Ba1 BB+ 4,434,500
3,000,000 Series B,
7.150% due 2/1/2022 Ba1 BB+ 2,711,250
1,000,000 Series D,
6.900% due 8/1/2022 Ba1 BB+ 876,250
New York State Energy, Research & Development
Authority, Pollution Control Revenue Bonds:
(Brooklyn Union Gas Company):
3,000,000 6.952% due 7/1/2026 A1 A- 3,011,250
3,000,000 5.950% due 12/1/2027 Baa2 BBB 2,448,750
5,000,000 Series 1,
7.125% due 12/1/2020 A1 A 5,018,750
1,500,000 (Corning National Gas Corporation), Series A,
8.250% due 12/1/2018 Baa2 NR 1,631,250
1,000,000 (Central Hudson Gas and Electric Company), Series C,
8.375% due 12/1/2028 A3 A- 1,091,250
2,500,000 (Orange & Rockland Utilities Project),
9.000% due 8/1/2015 Baa1 A- 2,590,625
2,660,000 (Rochester Gas & Electric Company), (FSA Insured),
8.375% due 12/1/2028 Aaa AAA 2,889,425
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<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 $ 8,600,625
1,950,000 7.500% due 6/15/2012 Aa A 2,064,563
1,000,000 Series E,
6.200% due 6/15/2001 Aa A 1,021,250
Environmental Elements New York Inc, Special Obligation
Revenue Bonds:
665,000 8.400% due 12/1/2006 NR BBB+ 694,925
690,000 8.400% due 12/1/2007 NR BBB+ 721,050
3,000,000 Occidental Petroleum Corporation, Solid Waste Disposal Revenue,
Series A,
5.700% due 9/1/2028 Baa3 BBB 2,347,500
5,765,000 New York State Environmental Facilities Corporation,
Resource Recovery Revenue, (Huntington Project), Series A,
7.375 due 10/1/1999 Baa NR 5,851,475
New York State Housing Finance Agency:
MultiFamily Housing:
2,905,000 Series A, (FSA Insured),
10.000% due 11/15/2025 Aa AA- 2,995,781
1,500,000 Series C, (FHA Insured),
6.500% due 8/15/2024 Aa AAA 1,419,375
Second Mortgage Project:
1,750,000 Series C,
6.600% due 8/15/2027 Aa NR 1,675,625
1,250,000 Series D,
6.250% due 8/15/2023 Aa NR 1,145,313
Service Contract Obligations Revenue Bonds:
10,500,000 Series C,
6.125% due 3/15/2020 Baa1 BBB 9,200,625
5,555,000 Series D,
5.625% due 9/15/2013 Baa1 BBB 4,693,975
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 4,446,788
2,450,000 New York State Highway Authority, Service Contract
Revenue, (Local Highway and Bridge),
5.875 due 4/1/2014 Baa BBB 2,149,875
New York State Local Government Assistance Corporation:
14,345,000 Series A,
6.875% due 4/1/2019 A A 14,488,450
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (Continued)
New York (continued)
New York State Local Government Assistance
Corporation (continued):
$ 2,050,000 Series B,
6.000% due 4/1/2012 A A $ 1,909,063
3,400,000 Series C,
6.000% due 4/1/2012 A A 3,183,250
3,285,000 Series E,
6.000% due 4/1/2014 A A 3,063,263
10,200,000 New York State Housing Corporation Revenue Bonds,
Refunding-Senior Note,
5.500% due 11/01/2020 A1 AA 8,542,500
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 3,168,750
2,500,000 (Central Suffolk Hospital Project), Series A,
6.125% due 11/1/2016 NR BBB 2,115,625
Hospital and Nursing Home, (FHA Insured):
Series A:
215,000 6.100% due 2/15/2002 Aa AA 211,775
830,000 8.750% due 2/15/2015 Aa AA- 848,675
11,805,000 6.200% due 2/15/2021 NR AAA 10,963,894
6,000,000 8.000% due 2/15/2027 Aa AA 6,337,500
7,965,000 8.000% due 2/15/2028 Aa AAA 8,492,681
4,100,000 7.450% due 8/15/2031 Aa AA 4,243,500
3,000,000 6.375% due 8/15/2033 Aa AA 2,748,750
5,000,000 Series B,
6.125 due 8/15/2024 NR AAA 4,537,500
Series C:
565,000 5.950% due 8/15/2009 NR AAA 565,706
2,500,000 5.750% due 8/15/2019 NR AAA 2,165,625
6,300,000 6.375% due 8/15/2029 NR AAA 5,843,250
2,500,000 6.650% due 8/15/2032 Aa AA 2,375,000
Series D:
5,000,000 6.450% due 2/15/2032 Aa AA 4,618,750
10,370,000 5.400% due 8/15/2033 Aa AAA 8,166,375
5,300,000 (Methodist Hospital), Series A, (FHA Insured),
6.700% due 8/15/2023 NR AA 5,160,875
370,000 Insured Hospital Mortgage, (FHA Insured), Series B,
10.125% due 1/15/2024 Aa AA 374,163
Long Term Healthcare, (CAPGTY Insured):
2,000,000 Series B,
6.450% due 11/1/2014 Aaa AAA 1,942,500
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (Continued)
New York (continued)
New York Medical Facilities Finance Agency Revenue Bonds (continued):
Long Term Healthcare, (CAPGTY Insured)
(continued):
$ 150,000 Series C,
6.400% due 11/1/2014 Aaa AAA $ 144,938
Mental Health Service Facilities:
Series A, (Unrefunded Balance):
5,075,000 8.875% due 8/15/2007 Baa1 BBB+ 5,525,406
1,185,000 7.700% due 2/15/2018 Baa1 BBB+ 1,223,513
1,840,000 7.750% due 2/15/2020 Baa1 BBB+ 1,911,300
1,860,000 Series D, (AMBAC Insured),
5.900% due 8/15/2022 Aaa AAA 1,660,050
Series F:
1,500,000 5.375% due 2/15/2014 Baa1 BBB+ 1,218,750
4,615,000 6.500% due 2/15/2019 Baa1 BBB+ 4,274,624
4,000,000 Mortgage Project, Series A, (FHA Insured),
6.375 due 8/15/2024 Aa AA 3,730,000
Nursing Home Insured Mortgage, (FHA Insured):
500,000 10.500% due 1/15/2024 Aa A- 503,125
1,225,000 Series A,
9.500% due 1/15/2024 NR NR 1,237,250
1,640,000 (St. Mary's Hospital Project), Series A, (AMBAC Insured),
6.200% due 11/1/2014 Aaa AAA 1,566,200
6,000,000 Second Mortgage Healthcare Project, Series A,
5.850% due 2/15/2033 Aa NR 5,107,500
5,000,000 Secured Hospital Revenue Bonds, Series 91-A,
7.400% due 8/15/2021 Baa BBB 4,987,500
New York State Mortgage Agency Revenue:
2,625,000 Series 37-A,
6.375% due 10/1/2014 Aa NR 2,493,750
1,000,000 Series 41-A,
6.450% due 10/1/2014 Aa NR 945,000
4,000,000 Series 42,
6.650% due 4/1/2026 Aa NR 3,780,000
1,345,000 9th Series A,
7.300% due 4/1/2017 Aa NR 1,346,682
1,580,000 Series GG, Homeowner Mortgage,
8.125% due 4/1/2020 Aa NR 1,633,325
New York State Municipal Bond Bank Agency:
Special Revenue Program:
1,000,000 Buffalo, Series A,
6.875% due 3/15/2006 NR BBB+ 1,033,750
1,500,000 Rochester, Series A,
6.750% due 3/15/2011 NR A+ 1,496,250
</TABLE>
See Notes to Financial Statements.
18
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (Continued)
New York (continued)
$ 2,000,000 New York State Power Authority, Revenue & General
Purpose Bonds,
Series V, (MBIA Insured),
7.875% due 1/1/2013 Aaa AAA $ 2,132,500
New York State, Refunding Bonds:
6,485,000 7.000% due 11/15/2002 A A- 6,930,844
1,000,000 12.000% due 11/15/2003 A A- 1,413,750
2,750,000 9.875% due 11/15/2005 A A- 3,550,938
New York State, Urban Development:
Correctional Facilities Revenue Bonds:
2,900,000 5.750% due 1/1/2007 Baa1 BBB 2,591,875
1,100,000 5.500% due 1/1/2015 Baa1 BBB 925,375
1,650,000 Higher Education Applied Technology Project, (MBIA Insured),
5.625% due 4/1/2014 Aaa AAA 1,458,188
(Newark - Wayne Community Hospital),
New York Hospital Revenue Bonds:
2,935,000 Series A,
7.600% due 9/1/2015 NR NR 2,736,888
2,400,000 Series B, (FHA Insured),
5.875% due 1/15/2033 NR AAA 2,013,000
850,000 Series 1, (FSA Insured),
7.500% due 1/1/2020 Aaa AAA 931,813
6,100,000 Youth Facilities, (MBIA Insured),
5.70% due 4/1/2014 Aaa AAA 5,436,625
2,160,000 Oneida, New York, Health Care Corporation,
Mortgage Revenue Bonds,
(FHA Insured), (Oneida Healthcare), Series A,
7.200% due 8/1/2031 NR A 2,068,200
2,200,000 Oneida-Herkimer, New York, Solid Waste Management
Authority, Solid Waste System Revenue Bonds,
6.750% due 4/1/2014 Baa BBB 2,035,000
Port Authority of New York & New Jersey:
3,000,000 53rd Series,
8.700% due 7/15/2020 A1 AA- 3,135,000
2,000,000 61st Series,
8.125% due 8/15/2023 A1 AA- 2,060,000
8,000,000 Delta Airlines, Series 1R,
6.950% due 6/1/2008 Ba1 BB 7,680,000
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 6,232,500
</TABLE>
See Notes to Financial Statements.
19
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
===========================================================================================================
<S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (Continued)
New York (continued)
State of New York, Certificates of Participation
(continued):
$ 915,000 (Hanson Redevelopment Project),
8.375% due 5/1/2008 NR BBB $ 969,900
1,000,000 State of New York, General Obligation Bonds,
Suffolk County, New York, Series F, (FGIC Insured),
5.400% due 7/15/2014 Aaa AAA 840,000
500,000 Syracuse, New York, General Obligation Bonds,
Industrial Development Agency, (James Square
Association), (FHA Insured),
7.000% due 8/1/2025 NR AAA 495,625
3,000,000 Triborough Bridge & Tunnel Authority, New York,
Revenue Bonds, General Purpose Revenue, Series Z,
6.000% due 1/1/2018 Aa A+ 2,733,750
United Nations Development Corporation, New York,
Revenue Bonds, Senior Lien, Series A:
1,490,000 6.000% due 7/1/2007 A NR 1,385,700
1,170,000 6.000% due 7/1/2012 A NR 1,088,100
9,500,000 6.000% due 7/1/2026 A NR 8,538,125
725,000 Valley Health Development Corporation, New York,
Revenue Bonds, (FHA Insured), Mortgage Loan,
11.300% due 2/1/2023 NR A 866,375
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 2,434,375
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 292,838
2,000,000 Yonkers, New York, General Obligation Bonds,
Series C, (FGIC Insured),
5.500% due 9/1/2009 Aaa AAA 1,827,500
Puerto Rico -- 2.3%
1,495,000 Commonwealth of Puerto Rico, Aquaduct and
Sewer Authority Revenue Bonds, (Escrow to Maturity),
10.250% due 7/1/2009 Aaa AAA 1,958,450
1,350,000 Commonwealth of Puerto Rico, General Obligation Bonds,
8.000% due 7/1/2008 Baa1 A 1,452,938
6,470,000 Commonwealth of Puerto Rico, Urban Renewal and Housing
Corporation Revenue Bonds,
7.875% due 10/1/2004 Baa BBB 7,019,950
</TABLE>
See Notes to Financial Statements.
20
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Market
(unaudited) Value
Face Value Moody's S&P (Note 1)
========================================================================================
<S> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (continued)
Puerto Rico (contiuned)
Puerto Rico, Industrial, Medical &
Environmental Revenue Bonds:
$ 2,085,000 (American Airlines), Series A,
8.750% due 12/1/2025 Baa1 A+ $ 2,178,825
535,000 (St. Luke's Hospital Project), Series A,
6.100% due 6/1/2001 NR A- 518,950
860,000 Puerto Rico Municipal Finance Agency,
Series A, 8.250% due 7/1/2008 Baa1 A- 930,950
Guam -- 0.2%
750,000 Guam Government Limited Obligation Highway
Bonds, Series A, (CAPGTY Insured),
5.900% due 5/1/2002 Aaa AAA 762,188
500,000 Guam Power Authority Revenue, Series A,
6.300% due 10/1/2022 NR BBB 451,250
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 546,250
========================================================================================
TOTAL INVESTMENTS (Cost $641,395,917*) 99.4% $614,091,871
OTHER ASSETS AND LIABILITIES (Net) 0.6 3,841,327
- ----------------------------------------------------------------------------------------
NET ASSETS 100.0% $617,933,198
========================================================================================
</TABLE>
*Aggregate cost for Federal tax purposes.
+Security valued in good faith by Board of Directors.
See Notes to Financial Statements.
21
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments, at value (Cost $641,395,917) (Note 1)
See accompanying schedule $614,091,871
Interest receivable 13,914,954
Receivable for investment securities sold 2,502,705
Receivable for Fund shares sold 671,666
- -----------------------------------------------------------------------------------------
Total Assets $631,181,196
=========================================================================================
LIABILITIES:
Notes payable (Note 8) $8,806,967
Dividends payable 2,357,258
Payable for Fund shares redeemed 1,476,796
Investment advisory fee payable (Note 2) 181,143
Administration fee payable (Note 2) 103,220
Service fee payable (Note 3) 78,939
Distribution fee payable (Note 3) 64,023
Due to custodian 52,633
Custodian fees payable (Note 2) 25,500
Transfer agent fees payable (Note 2) 17,614
Accrued expenses and other payables 83,905
- -----------------------------------------------------------------------------------------
Total Liabilities 13,247,998
=========================================================================================
NET ASSETS $617,933,198
=========================================================================================
NET ASSETS consist of:
Distributions in excess of net investment income $ (850,030)
Accumulated net realized loss on investments sold (4,724,173)
Unrealized depreciation of investments (27,304,046)
Par value 400,159
Paid-in capital in excess of par value 650,411,288
- -----------------------------------------------------------------------------------------
TOTAL NET ASSETS $617,933,198
=========================================================================================
NET ASSETS:
- -----------------------------------------------------------------------------------------
CLASS A SHARES:
Net Asset Value and redemption price per share
($466,883,788 / 30,236,011 shares of common stock outstanding) $15.44
- -----------------------------------------------------------------------------------------
Maximum offering price per share ($15.44 / .960)
(Based on sales charge of 4% of the offering price on December 31, 1994) $16.08
=========================================================================================
CLASS B SHARES:
Net Asset Value and offering price per share+
($150,764,584 / 9,761,460 shares of common stock outstanding) $15.44
=========================================================================================
CLASS C SHARES:
Net Asset Value and offering price per share+
($284,826 / 18,445 shares of common stock outstanding) $15.44
=========================================================================================
</TABLE>
+ Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
See Notes to Financial Statements.
22
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Statement of Operations
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Year Ended December 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 44,908,736
- ----------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 2) $2,300,014
Administration fee (Note 3) 1,309,383
Service fee (Note 3) 1,007,818
Distribution fee (Note 3) 754,529
Transfer agent fees (Notes 2 and 4) 221,343
Custodian fees (Note 2) 100,412
Legal and audit fees 85,467
Directors' fees and expenses (Note 2) 44,217
Other 168,625
- ----------------------------------------------------------------------------------------
Total Expenses 5,991,808
- ----------------------------------------------------------------------------------------
NET INVESTMENT INCOME 38,916,928
========================================================================================
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS (Notes 1 and 5):
Net realized loss on investments sold during the year (4,724,173)
Net unrealized depreciation of investments during the year (82,527,978)
- ----------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS (87,252,151)
========================================================================================
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(48,335,223)
========================================================================================
</TABLE>
See Notes to Financial Statements.
23
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
12/31/94 12/31/93
<S> <C> <C>
Net investment income $ 38,916,928 $ 37,182,733
Net realized gain/(loss) on investments sold
during the year (4,724,173) 11,090,806
Net unrealized appreciation/(depreciation) on
investments during the year (82,527,978) 16,938,786
- ------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting
from operations (48,335,223) 65,212,325
Distributions to shareholders from net investment
income:
Class A (30,891,616) (33,113,806)
Class B (8,023,640) (4,116,599)
Class C (1,672) --
Distributions to shareholders in excess of net investment
income:
Class A (674,671) --
Class B (175,322) --
Class C (37) --
Distributions to shareholders from net realized gain on
investments:
Class A (2,982,583) (7,531,725)
Class B (957,623) (1,641,245)
Class C (1,790) --
Net increase/(decrease) in net assets from
Fund share transactions (Note 6):
Class A (36,576,643) 21,895,581
Class B 33,984,655 117,947,400
Class C 277,688 --
- ------------------------------------------------------------------------------------
Net increase/(decrease) in net assets (94,358,477) 158,651,931
NET ASSETS:
Beginning of year 712,291,675 553,639,744
- ------------------------------------------------------------------------------------
End of year
(including distributions in excess of net investment
income of $850,030 at December 31, 1994) $617,933,198 $712,291,675
====================================================================================
</TABLE>
See Notes to Financial Statements.
24
<PAGE>
[This page intentionally left blank]
25
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For Class A share outstanding throughout each year.
Year Year Year Year
Ended Ended Ended Ended
12/30/94 12/31/93# 12/31/92* 12/31/91
<S> <C> <C> <C> <C>
Net asset value, beginning
of year $17.68 $17.12 $16.77 $15.94
- ------------------------------------------------------------------------
Income from investment
operations:
Net investment
income 0.97 1.02 1.12 1.15
Net realized and unrealized
gain/(loss) on investments (2.12) 0.80 0.39 0.84
- ------------------------------------------------------------------------
Total from investment
operations (1.15) 1.82 1.51 1.99
- ------------------------------------------------------------------------
Less distributions:
Distributions from net
investment income (0.97) (1.03) (1.12) (1.16)
Distributions in excess
of net investment Income (0.02) -- -- --
Distributions from net
capital gains (0.10) (0.23) (0.03) --
Distributions from capital -- -- (0.01) --
- ------------------------------------------------------------------------
Total Distributions: (1.09) (1.26) (1.16) (1.16)
- ------------------------------------------------------------------------
Net asset value, end of year $15.44 $17.68 $17.12 $16.77
========================================================================
Total return/+/ (6.62)% 10.93% 9.36% 12.98%
========================================================================
Ratios to average net assets/
supplemental data:
Net assets, end of year
(in 000's) $466,884 $575,166 $535,514 $469,139
Ratio of operating expenses to
average net assets 0.77% 0.78% 0.67% 0.64%
Ratio of net investment income
to average net assets 5.91% 5.83% 6.56% 7.04%
Portfolio turnover rate 36% 20% 30% 31%
========================================================================
</TABLE>
26
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For Class A share outstanding throughout each year.
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
12/31/90 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year $16.26 $15.97 $15.37 $16.71 $15.48 $13.90
- -------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment
income 1.16 1.16 1.15 1.14 1.20 1.24
Net realized and unrealized
gain/(loss) on investments (0.32) 0.26 0.61 (1.33) 1.52 1.58
- -------------------------------------------------------------------------------------------
Total from investment
operations 0.84 1.42 1.76 (0.19) 2.72 2.82
- -------------------------------------------------------------------------------------------
Less distributions:
Distributions from net
investment income (1.16) (1.13) (1.16) (1.14) (1.20) (1.24)
Distributions in excess
of net investment Income -- -- -- -- -- --
Distributions from net
capital gains -- -- -- (0.01) (0.29) --
Distributions from capital -- -- -- -- -- --
- -------------------------------------------------------------------------------------------
Total Distributions: (1.16) (1.13) (1.16) (1.15) (1.49) (1.24)
- -------------------------------------------------------------------------------------------
Net asset value, end of year $15.94 $16.26 $15.97 $15.37 $16.71 $15.48
===========================================================================================
Total return/+/ 5.41% 9.18% 11.82% (1.09%) 18.13% 21.03%
===========================================================================================
Ratios to average net assets/
supplemental data:
Net assets, end of year
(in 000's) $428,304 $442,563 $429,703 $202,265 $218,980 $125,365
Ratio of operating expenses to
average net assets 0.64% 0.66% 0.64% 0.68% 0.68% 0.81%
Ratio of net investment income
to average net assets 7.31% 7.17% 7.50% 7.22% 7.25% 8.20%
Portfolio turnover rate 18% 7% 27% 22% 11% 20%
===========================================================================================
</TABLE>
* Any shares outstanding prior to November 6, 1992 were designated as Class A
shares.
+ Total return represents aggregate total return for the periods indicated and
does not reflect any applicable sales charge.
# Per share amounts have been calculated using the monthly average share method,
which more appropriately presents the per share data for this year since the
use of the undistributed method did not accord with results of operations.
See Notes to Financial Statements.
27
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a Class B share outstanding throughout each year:
Year Year Period
Ended Ended Ended
12/30/94 12/31/93# 12/31/92*
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of year $ 17.68 $ 17.12 $ 16.93
Income from investment operations:
Net investment income 0.89 0.94 0.17
Net realized and unrealized gain/(loss) on investments (2.13) 0.80 0.20
- ------------------------------------------------------------------------------------------
Total from investment operations (1.24) 1.74 0.37
- ------------------------------------------------------------------------------------------
Less distributions:
Distributions from net investment income (0.88) (0.95) (0.15)
Distributions in excess of net investment income (0.02) -- --
Distributions from net capital gains (0.10) (0.23) (0.03)
Distributions from capital -- -- (0.00)++
- ------------------------------------------------------------------------------------------
Total Distributions: (1.00) (1.18) (0.18)
- ------------------------------------------------------------------------------------------
Net asset value, end of year $ 15.44 $ 17.68 $ 17.12
- ------------------------------------------------------------------------------------------
Total return+ (7.17)% 10.33% 2.23%
==========================================================================================
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's) $150,765 $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 5.39% 5.31% 5.94%**
Portfolio turnover rate 36% 20% 30%
==========================================================================================
</TABLE>
* The Fund commenced selling Class B shares on November 6, 1992.
** Annualized.
+ Total return represents aggregate total return for the periods indicated
and does not reflect any applicable sales charge.
++ Amount represents less than $0.01 per Class B share.
# Per share amounts have been calculated using the monthly average share
method, which more appropriately presents the per share data for this year
since the use of the undistributed method did not accord with results of
operations.
See Notes to Financial Statements.
28
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
For a Class C share outstanding throughout the period:
<TABLE>
<CAPTION>
Period
Ended
12/31/94*
- --------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $15.19
Income from investment operations:
Net investment income 0.12
Net realized and unrealized gain on investments 0.35+++
- --------------------------------------------------------------------------------
Total from investment operations 0.47
- -------------------------------------------------------------------------------
Less distributions:
Distributions from net investment income (0.12)
Distributions in excess of net investment income (0.00)++
Distributions from net capital gains (0.10)
- -------------------------------------------------------------------------------
Total Distributions: (0.22)
- -------------------------------------------------------------------------------
Net asset value, end of period $15.44
- -------------------------------------------------------------------------------
Total return + 3.08%
===============================================================================
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's) $285
Ratio of operating expenses to average net assets 1.34%**
Ratio of net investment income to average net assets 5.35%**
Portfolio turnover rate. 36%
===============================================================================
</TABLE>
* The Fund commenced selling Class C shares on November 10, 1994.
** Annualized.
+ Total return represents aggregate total return for the period indicated
and does not reflect any applicable sales charge.
++ Amount represents less than $0.01 per Class C share.
+++ The amount shown at this caption for each share outstanding throughout
the period may not accord with the change in the aggregate gains and losses
in the Fund for the period because of the timing of purchases and
withdrawals of shares in relation to fluctuating market value of the
portfolio.
See Notes to Financial Statements.
29
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Smith Barney New York Municipals Fund Inc. (formerly known as 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"). Effective November 7, 1994, the Fund began offering Class C and
Class Y shares and continued to offer Class A and Class B shares. Class A shares
are sold with a front-end sales charge. Class B and Class C shares may be
subject to a contingent deferred sales charge ("CDSC"). Class Y shares are
available to investors making an initial investment of at least $5 million and
are not subject to any sales charges, distribution or service fees. As of
December 31, 1994, no Class Y shares had been sold. All 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.
30
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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.
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 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.
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 4.00% 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.
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 has been transferred effective November 7, 1994 to Smith Barney
Mutual Funds Management Inc. ("SBMFM"). Mutual Management Corp. and SBMFM are
both wholly owned subsidiaries of Smith Barney Holdings Inc. ("Holdings").
Holdings is a wholly owned subsidiary of The Travelers Inc. Under the
Advisory Agreement, the Fund pays a monthly fee at the annual rates of 0.35%
of the value of the Fund's average daily net assets up to $500 million and
0.32% of the value of its average daily net assets in excess of $500 million.
31
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
Prior to April 20, 1994, the Fund was party to an administration agreement
with Boston Advisors, an indirect wholly owned subsidiary of Mellon Bank
Corporation ("Mellon"). Under this agreement, the Fund paid a monthly fee at
the annual rates of 0.20% of the value of the Fund's average daily net assets
up to $500 million and 0.18% of the value of its average daily net assets in
excess of $500 million.
As of the close of business on April 20, 1994, SBMFM (formerly Smith Barney
Advisers, Inc.), 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 same level of fees
as the predecessor agreement.
As of the close of business on April 20, 1994 the Fund and SBMFM 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 SBMFM at a rate agreed upon
from time to time between SBMFM and Boston Advisors.
No officer, director or employee of Smith Barney or any of its affiliates
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 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.
Smith Barney acts as the exclusive distributor of the Fund's shares. For the
year ended December 31, 1994, Smith Barney received $623,121 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 4.50% and 1% of net asset value depending on the number of years
since the date of purchase. A CDSC may be payable by a shareholder in
connection with the redemption of Class C shares within one year after the
date of purchase. In circumstances in which the charge is imposed on Class C
shares, the amount of the charge is 1.00%. For the year ended December 31,
1994, Smith Barney received $358,231 from investors in CDSCs on the
redemption
32
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
of Class B shares. No CDSCs were incurred by investors with respect to Class
C 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 Plan
Smith Barney 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 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 Class A, Class B and
Class C shareholders, and covers expenses incurred in distributing Class B
and Class C shares. Smith Barney is paid an annual service fee with respect
to Class A, Class B and Class C shares of the Fund at the rate of 0.15% of
the value of the average daily net assets of each respective class of shares.
Smith Barney is also paid an annual distribution fee with respect to Class B
and Class C shares at the rate of 0.50% and 0.55% of the value of the average
daily net assets attributable to those shares. During the year ended December
31, 1994, the Fund incurred $781,465, $226,302 and $51 in service fees for Class
A, Class B and Class C shares, respectively. During the year ended December 31,
1994, the Fund incurred $754,341 and $188 in distribution fees for Class B and
Class C shares, respectively.
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 $146,940, $74,389 and $14 for Class A, Class B and Class C shares,
respectively.
5. Securities Transactions
Cost of purchases and proceeds from sales of investment securities, excluding
short-term investments, during the year ended December 31, 1994, amounted to
$237,775,733 and $247,323,629, respectively.
33
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
At December 31, 1994, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost amounted to
$12,010,779, and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value amounted to
$39,314,825.
6. Common Stock
At December 31, 1994, 500 million shares of $.01 par value common stock
divided into four classes (Class A, Class B, Class C and Class Y) were
authorized. Changes in the common stock for the Fund were as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1994 December 31, 1993
Class A shares: Shares Amount Shares Amount
===================================================================================================
<S> <C> <C> <C> <C>
Sold 3,478,703 $ 57,671,706 3,707,118 $ 65,187,847
Issued as reinvestment of dividends 1,402,444 22,818,151 1,542,419 27,192,839
Redeemed (7,180,131) (117,066,500) (3,991,942) (70,485,105)
- ---------------------------------------------------------------------------------------------------
Net increase/(decrease) (2,298,984) $ (36,576,643) 1,257,595 $ 21,895,581
===================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1994 December 31, 1993
Class B shares: Shares Amount Shares Amount
===================================================================================================
<S> <C> <C> <C> <C>
Sold 3,026,863 $ 50,329,261 6,705,247 $118,061,679
Issued as reinvestment of dividends 364,474 5,904,778 232,704 4,113,260
Redeemed (1,388,070) (22,249,384) (238,451) (4,227,539)
- ---------------------------------------------------------------------------------------------------
Net increase 2,003,267 $ 33,984,655 6,699,500 $117,947,400
===================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Period Ended*
December 31, 1994
Class C shares: Shares Amount
===================================================================================================
<S> <C> <C>
Sold 18,218 $274,188
Issued as reinvestment of dividends 227 3,500
- ---------------------------------------------------------------------------------------------------
Net increase 18,445 $277,688
===================================================================================================
</TABLE>
*The Fund commenced selling Class C shares on November 10, 1994.
As of December 31, 1994, no Class Y shares had been sold.
34
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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. Notes Payable
The Fund and several affiliated entities participate in a $50 million line of
credit provided by Bank of America (formerly 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 disposition of securities. The Fund may
borrow up to the lesser of $25 million or 25% of its net assets, adjusted for
purposes of the Agreement. However, pursuant to the Fund's prospectus, the
Fund may only borrow up to 10% of its net assets. Interest is payable either
at the bank's Money Market Rate or the London Interbank Offered Rate plus
0.375% on an annualized basis. 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 pursuant to the Agreement of no less than 5 to 1. During the
year ended December 31, 1994, the Fund had an average outstanding daily
balance of $623,288 with interest rates ranging from 3.69% to 7.13%. Interest
expense totalled $38,784 for the year ended December 31, 1994. At December
31, 1994 the Fund had $8,806,967 outstanding.
9. Capital Loss Carryforward
At December 31, 1994, the Fund had available for Federal income tax purposes
an unused capital loss carryforward of $1,541,718 expiring in 2002.
35
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Report of Independent Accountants
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
SMITH BARNEY NEW YORK MUNICIPALS FUND INC.
We have audited the accompanying statement of assets and liabilities of Smith
Barney New York Municipals Fund Inc. (formerly Smith Barney Shearson New York
Municipals Fund Inc.), including the schedule of portfolio investments, as of
December 31, 1994, 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 ten years
in the period then ended. 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 of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1994 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 New York Municipals Fund Inc., as of December 31, 1994, 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 ten years in the period then ended, in conformity
with generally accepted accounting principles.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 8, 1995
36
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
Tax Information (unaudited)
- --------------------------------------------------------------------------------
Year Ended December 31, 1994
The amount of long term capital gains paid for the fiscal year ended December
31, 1994 was $3,941,996.
Of the total distributions paid by the Fund out of ordinary income, 97.87%
qualify as tax-exempt income.
37
<PAGE>
Smith Barney
New York Municipals Fund Inc.
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Participants
- --------------------------------------------------------------------------------
DISTRIBUTOR
Smith Barney Inc.
388 Greenwich Street
New York, New York 10013
INVESTMENT ADVISER AND
ADMINISTRATOR
Smith Barney
Mutual Funds Management Inc.
388 Greenwich Street
New York, New York 10013
SUB-ADMINISTRATOR
The Boston Company Advisors, Inc.
One Boston Place
Boston, Massachusetts 02108
COUNSEL
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
38
<PAGE>
Smith Barney
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
may be 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 your 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 of 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. This standardized calculation was introduced to insure
that investors can compare different funds on an equal basis. 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.
39
<PAGE>
Smith Barney
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
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.
<PAGE>
NEW YORK SMITH BARNEY
MUNICIPALS ------------
FUND INC. A Member of TravelersGroup [LOGO APPEARS HERE]
DIRECTORS
Herbert Barg
Alfred J. Bianchetti
Martin Brody
James J. Crisona*
Dwight B. Crane
Burt N. Dorsett
Elliot S. Jaffe
Stephen E. Kaufman
Joseph J. McCann
Heath B. McLendon
Cornelius C. Rose
* Director Emeritus
OFFICERS
Heath B. McLendon
Chairman of the Board
Jessica Bibliowicz This report is submitted for the general
President information of the shareholders of Smith
Barney New York Municipals Fund Inc. It is
Lawrence T. McDermott not authorized for distribution to
Vice President and prospective investors unless accompanied or
Investment Officer preceded by an effective Prospectus for the
Fund, which contains information concerning
Karen L. Mahoney-Malcomson the Fund's investment policies, fees and
Investment Officer expenses as well as other pertinent
information.
Lewis E. Daidone
Senior Vice President and
Treasurer
Christina T. Sydor SMITH BARNEY
Secretary MUTUAL FUNDS
388 Greenwich Street
New York, New York 10013
Fund 13, 194, 486, 468
FD 0319 B5
