<PAGE>
SMALL BOX ABOVE FUND NAME
SHOWING THE EMPIRE STATE BUILDING
SMITH BARNEY
NEW YORK
MUNICIPALS
FUND INC.
SEMI- ......................................
ANNUAL
REPORT JUNE 30, 1995
[LOGO] SMITH BARNEY MUTUAL FUNDS
INVESTING FOR YOUR FUTURE.
EVERY DAY.
<PAGE>
New York Municipals Fund Inc.
DEAR SHAREHOLDER:
We are pleased to provide you with the semi-annual report and portfolio
of investments for the six months ended June 30, 1995 for the Smith Barney New
York Municipals Fund Inc. After declining precipitously during most of 1994,
bond prices rebounded sharply during the first half of the fiscal year which
resulted in very attractive total returns to investors in the Fund. Class A
shares earned a total return of 9.81%, Class B shares a total return of 9.51%,
and Class C shares earned a total return of 9.51% for the six-month period
ended June 30, 1995. Additional performance data for each class of shares
during this and previous reporting periods is available in the "Financial
Highlights" section of this report.
MARKET AND ECONOMIC OVERVIEW
After a volatile 1994 and a strong rebound in early 1995, the
tax-exempt market more recently has lagged the Treasury market as a result of
the default of Orange County, California which created fear among investors and
led some to question the safety of the municipal bond market. Furthering the
concerns of investors is the issue of tax reform and the various proposals for
a flat tax, although these proposals are unlikely to be addressed until after
the presidential election in 1996. These two events made the retail investor
somewhat leery of participating in the tax-exempt market. Additionally, a stock
market that almost daily reached new highs deflected interest from the
municipal market and contributed to the decreased demand.
Elected in November 1994 on the promise of less government and lower
taxes, Governor Pataki has been successful in reducing spending and achieving
less government overhead. He has also merged some of the bond issuing agencies,
and imposed a cutback in capital spending which resulted in a slowdown in state
bond issuance. If certain revenue projections are achieved, a reduction in the
state income tax rate could be forthcoming. Despite these positive changes
initiated by the new administration, the legislative process has not changed
since the prior administration: the budget was 62 days late.
During this period, New York City's bond rating was lowered by Standard
& Poor's Corporation to BBB+ from A-, a situation that is not positive but was
very much anticipated by the market. Proving that expectations are sometimes
worse than reality, prices of New York City bonds improved slightly after the
downgrade became official. Just as the Governor is taking positive action to
improve the State's budget, the Mayor of New York City is also taking positive
action to improve the City's budget. Tax receipts are slow, and the economies
of both the State and City are lagging the national recovery. We believe,
however, that as both the Governor
1
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and Mayor continue to focus on finances, a credit upgrade will at some point in
the future be possible and will result in lower borrowing costs in the
tax-exempt market.
PORTFOLIO STRATEGY
At the end of this reporting period, 95% of the portfolio was rated
investment grade (BBB/Baa and higher) by either Standard & Poor's Corporation or
Moody's Investors Service, Inc. During the past reporting period, the Fund
increased its allocation of hospital bonds by approximately 5%, to 25.6% of net
assets from 20.7% at the end of the Fund's December fiscal year, and decreased
its asset allocation to utility revenue bonds to 6.2% from 9.7%. As of June 30,
1995, the Fund invested its assets primarily in hospital, general obligation,
housing, and education bonds. The average maturity of the Fund as of June 30,
1995 was 23 years.
We believe that the municipal market will remain in a narrow trading range
for the next six to twelve months as the Federal Reserve will likely monitor the
economy closely and ease interest rates if a slowdown in growth continues. The
municipal market appears to be very attractive right now, offering 85% to 90% of
the yield of the Treasury market. When adjusted for their federally tax-exempt
status, municipal bonds provide investors with an even more attractive yield.
We look forward to reporting to you in the Fund's next report to investors.
Should you have any questions about your investment in the Fund or how other
Smith Barney mutual funds may be useful in helping 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
August 15, 1995
2
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Smith Barney
New York Municipals Fund Inc.
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PORTFOLIO HIGHLIGHTS (UNAUDITED) JUNE 30, 1995
INDUSTRY BREAKDOWN
<TABLE>
Pie chart depicting the allocation of the New York Municipals Fund Inc.
investment securities held at June 30, 1995 by industry classification. The
pie is broken in pieces representing industries in the following percentages:
INDUSTRY PERCENTAGE
<S> <C>
Pollution Control 3.8%
Transportation 5.5%
Other 6.1%
Utility Revenue 6.2%
Education 12.0%
Housing 17.7%
General Obligations 19.2%
Hospital 25.6%
Net Other Assets and Liabilities 0.8%
Industrial Control 3.1%
</TABLE>
<TABLE>
SUMMARY OF MUNICIPAL BONDS AND SHORT-TERM
TAX-EXEMPT INVESTMENTS BY COMBINED RATINGS
<CAPTION>
Standard & Percent
Moody's Poor's of Value
- -----------------------------------------------
<S> <C> <C> <C>
Aaa OR AAA 28.6%
Aa AA 20.4
A A 15.6
Baa BBB 30.3
Ba BB 2.7
B B 0.4
NR NR 2.0
- -----------------------------------------------
100.0%
- -----------------------------------------------
<FN>
AVERAGE MATURITY: 23.0 YEARS
</TABLE>
3
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Smith Barney
New York Municipals Fund Inc.
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PORTFOLIO OF INVESTMENTS (UNAUDITED) JUNE 30, 1995
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KEY TO INSURANCE ABBREVIATIONS
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AMBAC -- American Municipal Bond Assurance Corporation
BIGI -- Bond Investors Guaranty Insurance
CAPGTY -- Capital Guaranty
FGIC -- Federal Guaranty Insurance Corporation
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
SONYMA -- State of New York Mortgage Agency
<TABLE>
<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
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<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES -- 98.7%
NEW YORK -- 96.4%
Babylon, New York, Industrial Development
Agency:
$ 3,795,000 Recycling Facilities Revenue, (Babylon
Recycling Center, Inc.), Series A, (in
default),+
8.875% due 3/1/2011 NR NR $ 1,518,000
Resource Recovery Revenue, (Odgen Martin
Systems, Babylon, Inc.):
2,995,000 Series B,
8.500% due 1/1/2019 Baa1 NR 3,264,550
2,950,000 Series C,
8.500% due 1/1/2019 Baa1 NR 3,215,500
Battery Park City Authority, New York,
Housing Revenue:
35,000 (FHA Insured),
8.625% due 06/01/2023 NR AAA 43,706
5,000,000 Mortgage Loan, Series A, (FHA Insured),
5.750% due 6/1/2023 (Prerefunded 6/1/2005) NR AAA 4,687,500
Refunding, Series A:
4,850,000 Junior Note,
5.800% due 11/01/2022 A A 4,552,938
5,000,000 Senior Note,
5.700% due 11/01/2020 A1 AA 4,687,500
1,300,000 Buffalo, New York, Municipal Water Finance
Authority, Water Systems Revenue, (FSA
Insured),
5.750% due 7/1/2019 Aaa AAA 1,261,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
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Smith Barney
New York Municipals Fund Inc.
<TABLE>
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PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
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<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
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<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
$ 500,000 Buffalo, New York, Refunding Bonds, (FGIC
Insured),
6.250% due 2/1/2016 Aaa AAA $ 514,375
700,000 Central Square, New York, Central School
District, (FGIC Insured),
6.500% due 6/15/2000 Aaa AAA 759,500
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 256,250
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 3,845,625
Green Island, New York, General Obligation
Bonds:
100,000 9.375% due 11/1/2001 Baa NR 118,125
125,000 9.375% due 11/1/2002 Baa NR 150,156
4,000,000 Hempstead Town, New York, Industrial
Development Agency, Resource Recovery Revenue
Bonds, (American Fuel Company),
7.400% due 12/1/2010 Baa1 A- 4,180,000
Lockport Town, New York, Refunding Bonds,
(MBIA Insured):
435,000 5.400% due 3/1/2012 Aaa AAA 418,688
430,000 5.400% due 3/1/2013 Aaa AAA 411,188
425,000 5.400% due 3/1/2014 Aaa AAA 403,219
415,000 5.400% due 3/1/2015 Aaa AAA 393,213
Metropolitan Transportation Authority, New
York, Transit Facilities Revenue:
3,555,000 Commuter Facilities Revenue, Series A,
6.500% due 7/1/2024 Baa1 BBB+ 3,577,219
100,000 New York Special Obligation Bonds, (MBIA
Insured),
6.600% due 1/1/1999 Aaa AAA 106,500
5,000,000 Series O, (MBIA Insured),
6.375% due 7/1/2020 Aaa AAA 5,175,000
5,440,000 Service Contract, Moral Obligation, Series N,
7.125% due 7/1/2009 Baa1 BBB 5,902,400
4,800,000 Service Contract, Series 5,
6.500% due 7/1/2016 Baa1 BBB 4,854,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
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Smith Barney
New York Municipals Fund Inc.
<TABLE>
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PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
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<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
$ 1,250,000 Monroe County, New York, Airport Authority,
Airport Revenue, (Greater Rochester
International Airport), (MBIA Insured),
7.250% due 1/1/2019 Aaa AAA $ 1,334,375
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 2,862,000
990,000 Civic Facility, (Genesee Hospital), Series A,
6.500% due 11/1/1999 A NR 1,003,613
2,150,000 Monroe County, New York, Water Authority
Revenue, (AMBAC Insured),
7.000% due 8/1/2019 Aaa AAA 2,308,563
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 3,315,619
New Rochelle, New York, General Obligation
Bonds, (MBIA Insured):
1,250,000 Series B,
6.200% due 8/15/2020 Aaa AAA 1,292,188
450,000 Series C,
6.250% due 3/15/2020 Aaa AAA 456,188
New York City, New York, General Obligation
Bonds:
Series B:
3,000,000 (FSA Insured)
5.850% due 10/1/2007 Aaa AAA 3,120,000
4,000,000 (MBIA Insured),
6.950% due 8/15/2012 Aaa AAA 4,380,000
Series C:
1,000,000 7.750% due 9/1/2006 Baa1 A- 1,032,500
4,000,000 6.500% due 8/1/2007 Baa1 A- 4,045,000
5,000,000 6.660% due 8/1/2009 Baa1 A- 5,112,500
255,000 Series D, (Unrefunded balance), (BIGI
Insured),
8.000% due 8/1/2004 Aaa AAA 275,719
10,600,000 Series F,
6.625% due 2/15/2025 Baa1 BBB+ 10,560,250
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
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Smith Barney
New York Municipals Fund Inc.
<TABLE>
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PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
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<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
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<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York City, New York,
General Obligation Bonds: (continued)
$ 5,500,000 Series H,
7.000% due 2/1/2021 Baa1 BBB+ $ 5,637,500
Series I, (Escrowed to Maturity), (AMBAC
Insured):
3,150,000 7.250% due 8/15/2014 AAA AAA 3,654,000
945,000 7.250% due 8/15/2015 AAA AAA 1,037,138
Series I, (Unrefunded balance), (AMBAC
Insured):
1,850,000 7.250% due 8/15/2014 Aaa AAA 1,984,125
555,000 7.250% due 8/15/2015 Aaa AAA 595,931
7,615,000 New York City, New York, Local Government
Revenue,
(Health & Hospital Corporation), Series A,
6.300% due 2/15/2020 Baa BBB 7,072,431
New York City, New York, Housing Development
Corporation, Multifamily Housing, Pass-Through
Certificates:
1,641,430 (Cadman Project),
6.500% due 11/15/2018 NR NR 1,643,482
1,041,899 (Heywood Project),
6.500% due 8/15/2017 NR NR 1,036,690
1,320,849 (Kelly Project),
6.500% due 2/15/2018 NR NR 1,322,501
1,698,191 (Riverbend Project),
6.500% due 11/15/2018 NR NR 1,710,928
Series A:
2,077,274 (AMBAC Insured),
6.500% due 12/20/2001 Aaa AAA 2,116,223
(FHA Insured):
5,000,000 7.350% due 6/1/2019 NR AAA 5,275,000
4,000,000 6.600% due 4/1/2030 NR AAA 4,020,000
7,650,000 Series B, (FHA Insured),
5.850% due 5/1/2026 Aa AA 7,248,375
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
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PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
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<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York City, New York, Industrial
Development Agency:
$ 2,250,000 Civil Facility Refunding Bond, (The Lighthouse
Inc. Project),
6.500% due 7/1/2022 Aa2 AA $ 2,323,125
1,000,000 Civil Facilities Revenue, (New School for
Social Research Project), Series A, (MBIA
Insured),
6.200% due 9/1/2014 Aaa AAA 1,025,000
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- 5,978,000
3,270,000 Series A, (FSA Insured),
7.000% due 6/15/2015 Aaa AAA 3,507,075
2,390,000 Series B, (Unrefunded),
6.375% due 6/15/2022 A A- 2,443,775
New York Hospital Revenue Bonds,
(Newark-Wayne Community Hospital):
2,935,000 Series A,
7.600% due 9/1/2015 NR NR 2,923,994
2,400,000 Series B, (FHA Insured),
5.875% due 1/15/2033 NR AAA 2,322,000
New York State Dormitory Authority, Revenue
Bonds:
4,250,000 (City University), (AMBAC Insured),
6.300% due 7/1/2024 Aaa AAA 4,366,875
(City University), Series A:
2,500,000 7.500% due 7/1/2006 Baa1 BBB 2,634,375
4,000,000 6.000% due 5/15/2022 Baa1 BBB+ 3,800,000
2,000,000 5.750% due 7/1/2022 NR AAA 1,912,500
7,000,000 (City University), Series B,
6.000% due 7/1/2014 Baa1 BBB 6,825,000
(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+ 2,210,000
2,200,000 (City University), Series T,
10.250% due 7/1/2012 Baa1 BBB 2,244,000
1,250,000 (City University), Series U,
6.25% due 7/1/2002 Baa1 BBB 1,298,438
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
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PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
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<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenue
Bonds: (continued)
$ 3,000,000 (City University, Third Generation), Series 2,
(MBIA Insured),
6.875% due 7/1/2014 Aaa AAA $ 3,300,000
2,855,000 (Comsewgue Public Library), (MBIA Insured),
6.000% due 7/1/2015 Aaa AAA 2,869,275
3,000,000 (Cooper Union), (FSA Insured),
7.200% due 7/1/2020 Aaa AAA 3,303,750
(Cornell University), Series A:
2,000,000 7.375% due 7/1/2020 Aa AA 2,207,500
1,000,000 7.375% due 7/1/2030 Aa AA 1,103,750
1,230,000 (Crouse Community Center), (FHA Insured),
7.500% due 8/1/2029 NR AAA 1,351,463
1,600,000 (Crouse Irving Memorial Hospital),
10.500% due 7/1/2017 NR A+ 1,666,000
2,000,000 (Culinary Institute of America),
6.000% due 7/1/2022 NR AAA 1,965,000
(Department of Education),
6,000,000 Series A,
6.250% due 7/1/2024 Baa1 BBB 5,835,000
(Department of Health, State of New York
Issue):
200,000 7.250% due 7/1/2002 Baa1 BBB 217,750
3,150,000 5.500% due 7/1/2020 Baa1 BBB 2,799,563
3,500,000 (Episcopal Health), (FHA Insured),
5.900% due 8/1/2020 NR AA 3,421,250
(Genesee Valley), (FHA Insured):
1,000,000 Series A,
6.900% due 8/1/2032 NR AA 1,055,000
685,000 Series B,
6.850% due 8/1/2016 NR AA 730,381
1,180,000 Group 1,
7.250% due 10/1/2003 NR AAA 1,256,700
1,355,000 (Heritage House Nursing Center), (FHA
Insured),
7.000% due 8/1/2031 NR AAA 1,468,481
2,450,000 (Iroquois Nursing), (FHA Insured),
7.050% due 2/1/2031 NR AA- 2,612,313
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
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PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
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<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
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<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenue
Bonds: (continued)
$ 2,445,000 (Jewish Geriatric Center), (FHA Insured)
7.150% due 8/1/2014 NR AAA $ 2,692,556
2,250,000 (Leake & Watts Services Inc.), (MBIA Insured),
6.000% due 7/1/2014 Aaa AAA 2,275,313
2,000,000 (Long Island Medical Center), Series A, (FHA
Insured),
7.750% due 8/15/2027 Aa AAA 2,145,000
2,700,000 (Manhattan College),
6.500% due 7/1/2019 NR AA 2,750,625
480,000 (Manhattan Eye, Ear & Throat Hospital),
11.500% due 7/1/2009 Baa BBB+ 492,600
1,500,000 (New Hope Community),
5.700% due 7/1/2017 Aa NR 1,415,625
4,800,000 (New York Catholic), (FHA Insured),
5.875% due 2/1/2033 NR AAA 4,650,000
220,000 (New York Medical College)
6.700% due 7/1/2001 NR AA 239,525
2,450,000 (St. Vincent's Hospital and Medical Center),
(FHA Insured),
7.400% due 8/1/2030 Aa AAA 2,655,188
5,000,000 (State of New York Issue),
7.750% due 7/1/2021 Baa1 BBB 5,568,750
(State University Educational Facility):
Series A:
11,620,000 6.375% due 5/15/2014 Baa1 BBB+ 11,692,625
7,500,000 5.875% due 5/15/2017 Baa1 BBB+ 7,162,500
4,500,000 Series B,
6.250% due 5/15/2014 Baa1 BBB+ 4,511,250
7,370,000 (University of Rochester), Series A,
6.500% due 7/1/2019 A1 A+ 7,637,163
3,150,000 (Wartburg Home Project), (FHA Insured),
5.800% due 2/1/2028 NR AA 3,016,125
(Upstate Community College):
8,550,000 Series A,
5.700% due 7/1/2021 Baa1 BBB- 7,844,625
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
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PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
- -------------------------------------------------------------------------------------------
<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
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<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenue
Bonds: (continued)
$ 285,000 (Upstate Community College), (continued)
Series B,
7.100% due 7/1/2001 Baa1 BBB- $ 308,869
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+ 2,348,438
4,750,000 7.125% due 12/1/2029 Aa3 A+ 5,236,875
(Long Island Lighting Company Project):
4,900,000 Series A,
7.150% due 12/1/2020 Ba1 BB+ 4,985,750
3,000,000 Series B,
7.150% due 2/1/2022 Ba1 BB+ 3,052,500
1,000,000 Series D,
6.900% due 8/1/2022 Ba1 BB+ 1,001,250
Pollution Control Revenue Bonds:
3,000,000 (Brooklyn Union Gas Company),
6.952% due 7/1/2026 A1 A 3,202,500
(New York Electric & Gas Company):
3,000,000 (MBIA Insured),
6.150% due 7/1/2026 Aaa AAA 2,962,500
3,000,000 5.950% due 12/1/2027 Baa1 BBB 2,756,250
5,000,000 Series 1,
7.125% due 12/1/2020 A1 A 5,231,250
1,500,000 (Corning National Gas Corporation), Series A,
8.250% due 12/1/2018 Baa2 NR 1,665,000
1,000,000 (Central Hudson Gas and Electric Company),
Series C,
8.375% due 12/1/2028 A3 A- 1,112,500
2,500,000 (Orange & Rockland Utilities Project),
9.000% due 8/1/2015 Baa1 A- 2,556,250
2,660,000 (Rochester Gas & Electric Company), (FSA
Insured),
8.375% due 12/1/2028 Aaa AAA 2,952,600
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
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PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
- -------------------------------------------------------------------------------------------
<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Environmental Facilities
Corporation,
Pollution Control Revenue, State Water
Revolving Fund:
Series A:
$ 8,250,000 7.250% due 6/15/2010 Aa A $ 9,229,688
1,950,000 7.500% due 6/15/2012 Aa A 2,188,875
3,000,000 Solid Waste Disposal Revenue, (Occidental
Petroleum Corporation), Series A,
5.700% due 9/1/2028 Baa3 BBB 2,643,750
Special Obligation Revenue Bonds,
(Environmental Elements New York Inc.):
665,000 8.400% due 12/1/2006 NR BBB+ 691,600
690,000 8.400% due 12/1/2007 NR BBB+ 717,600
5,765,000 Resource Recovery Revenue Bonds,
(Huntington Project), Series A,
7.375% due 10/1/1999 Baa NR 6,031,631
New York State, Highway Authority, Emergency
Services:
4,230,000 (FSA Insured),
6.600% due 3/1/2001 Aaa AAA 4,610,700
2,450,000 5.875% due 4/1/2014 Baa1 BBB 2,342,813
New York State Housing Corporation,
Mortgage Revenue Bonds:
1,850,000 (Lincoln Towers Project, Housing and Urban
Development -- Section 8),
11.250% due 1/1/2015 NR NR 1,951,750
10,200,000 Refunding-Senior Note,
5.500% due 11/1/2020 A1 AA 9,243,750
New York State Housing Finance Agency:
Multi-Family Housing:
2,000,000 (FHA Insured),
6.200% due 8/15/2015 Aa NR 1,977,500
2,905,000 Series A, (FHA Insured),
10.000% due 11/15/2025 Aa AA- 2,981,256
1,500,000 Series C, (FHA Insured),
6.500% due 8/15/2024 Aa AAA 1,509,375
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- -------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
- -------------------------------------------------------------------------------------------
<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Housing Finance Agency: (continued)
Second Mortgage Project:
$ 1,750,000 Series C, (SONYMA Insured),
6.600% due 8/15/2027 Aa NR $ 1,769,688
1,250,000 Series D, (SONYMA Insured),
6.250% due 8/15/2023 Aa NR 1,225,000
Service Contract Obligations Revenue Bonds:
10,500,000 Series C,
6.125% due 3/15/2020 Baa1 BBB 10,158,750
5,555,000 Series D,
5.625% due 9/15/2013 Baa1 BBB 5,103,656
14,345,000 New York State Local Government Assistance
Corporation, Series A,
6.875% due 4/1/2019 A A 15,438,806
New York State Medical Care Facilities Finance
Agency Revenue Bonds:
5,075,000 8.875% due 8/15/2007 Baa1 BBB+ 5,563,469
4,720,000 6.500% due 8/15/2012 Baa1 BBB+ 4,802,600
(AMBAC Insured),
8,500,000 6.800% due 8/15/2024 Aaa AAA 9,073,750
14,450,000 (FHA Insured),
6.200% due 2/15/2028 NR AAA 14,431,938
(AMBAC/FHA Insured):
7,600,000 6.500% due 8/15/2029 Aaa AAA 7,894,500
2,500,000 6.900% due 8/15/2034 Aaa AAA 2,668,750
3,000,000 (Beth Israel Medical Center), Series A, (MBIA
Insured),
7.500% due 11/1/2010 Aaa AAA 3,341,250
2,500,000 (Central Suffolk Hospital Project), Series A,
6.125% due 11/1/2016 NR BBB 2,340,625
Hospital and Nursing Home, (FHA Insured):
Series A:
200,000 6.100% due 2/15/2002 Aa AA 206,000
4,000,000 6.800% due 2/15/2012 Baa BBB 4,055,000
815,000 8.750% due 2/15/2015 Aa AA- 834,356
4,700,000 6.800% due 2/15/2020 Baa BBB- 4,758,750
11,805,000 6.200% due 2/15/2021 NR AAA 11,864,025
6,000,000 8.000% due 2/15/2027 Aa AA 6,577,500
7,965,000 8.000% due 2/15/2028 Aa AAA 9,010,406
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- -------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
- -------------------------------------------------------------------------------------------
<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Medical Care Facilities Finance
Agency
Revenue Bonds: (continued)
Hospital and Nursing Home, (FHA Insured):
(continued)
$ 4,100,000 7.450% due 8/15/2031 Aa AA $ 4,422,875
3,000,000 6.375% due 8/15/2033 Aa AA 3,026,250
5,300,000 (Methodist Hospital), (FHA Insured),
6.700% due 8/15/2023 NR AA 5,558,375
3,500,000 Series B, (FHA Insured),
6.100% due 2/15/2015 Aa AA 3,478,125
Series C, (FHA Insured):
530,000 5.950% due 8/15/2009 NR AAA 546,563
8,300,000 6.375% due 8/15/2029 NR AAA 8,455,625
2,500,000 6.650% due 8/15/2032 Aa AA 2,575,000
5,000,000 Series D, (FHA Insured),
6.450% due 2/15/2032 Aa AA 5,093,750
Long Term Healthcare, (CAPGTY Insured):
1,860,000 Series B,
6.450% due 11/1/2014 Aaa AAA 1,920,450
140,000 Series C,
6.400% due 11/1/2014 Aaa AAA 144,200
Mental Health Service Facilities:
Series A, (Unrefunded Balance):
1,185,000 7.700% due 2/15/2018 Baa1 BBB+ 1,267,950
1,840,000 7.750% due 2/15/2020 Baa1 BBB+ 2,033,200
4,615,000 Series F:
6.500 due 2/15/2019 Baa1 BBB+ 4,666,919
4,000,000 Mortgage Project, Series A, (FHA Insured),
6.375 due 8/15/2024 Aa AA 4,060,000
Nursing Home Insured Mortgage, (FHA Insured):
500,000 10.500% due 1/15/2024 Aa A- 505,000
1,205,000 Series A,
9.500% due 1/15/2024 NR NR 1,218,556
1,640,000 (St. Mary's Hospital Project), Series A,
(AMBAC Insured),
6.200% due 11/1/2014 Aaa AAA 1,683,050
6,000,000 Second Mortgage Healthcare Project, Series A,
(SONYMA Insured),
5.850% due 2/15/2033 Aa NR 5,685,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- -------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
- -------------------------------------------------------------------------------------------
<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Medical Care Facilities Finance
Agency
Revenue Bonds: (continued)
$ 5,000,000 Secured Hospital Revenue Bonds, Series 91-A,
7.400% due 8/15/2021 Baa BBB $ 5,268,750
New York State Mortgage Agency Revenue
(SONYMA Insured):
2,625,000 Series 37-A,
6.375% due 10/1/2014 Aa NR 2,651,250
1,000,000 Series 41-A,
6.450% due 10/1/2014 Aa NR 1,015,000
4,000,000 Series 42, (FHA Insured),
6.650% due 4/1/2026 Aa NR 4,045,000
4,250,000 Series 48,
6.100% due 4/1/2025 Aa NR 4,111,875
1,345,000 9th Series A,
7.300% due 4/1/2017 Aa NR 1,371,900
1,580,000 Series GG, Homeowner Mortgage,
8.125% due 4/1/2020 Aa NR 1,659,000
New York State Municipal Bond Bank Agency:
Special Revenue Program:
1,000,000 Buffalo, Series A,
6.875% due 3/15/2006 NR BBB+ 1,085,000
1,500,000 Rochester, Series A,
6.750% due 3/15/2011 NR A+ 1,575,000
2,000,000 New York State Power Authority, Revenue &
General Purpose Bonds, Series V, (MBIA
Insured),
7.875% due 1/1/2013 Aaa AAA 2,210,000
New York State, Refunding Bonds:
6,485,000 7.000% due 11/15/2002 A A- 7,246,988
1,000,000 12.000% due 11/15/2003 A A- 1,461,250
2,750,000 9.875% due 11/15/2005 A A- 3,753,750
New York State, Urban Development:
1,100,000 Correctional Facilities Revenue Bonds,
5.500% due 1/1/2015 Baa1 BBB 987,250
1,650,000 (Higher Education Applied Technology Project),
(MBIA Insured),
5.625% due 4/1/2014 Aaa AAA 1,581,938
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- -------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
- -------------------------------------------------------------------------------------------
<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
Oneida-Herkimer, New York, Solid Waste
Management Authority, Solid Waste System
Revenue Bonds,
$ 2,200,000 6.750% due 4/1/2014 Baa BBB $ 2,255,000
2,160,000 (FHA Insured),
7.200% due 8/1/2031 NR A 2,243,700
Port Authority of New York & New Jersey:
3,000,000 53rd Series,
8.700% due 7/15/2020 A1 AA- 3,093,750
2,000,000 61st Series,
8.125% due 8/15/2023 A1 AA- 2,045,000
8,000,000 (Delta Airlines), Series 1R,
6.950% due 6/1/2008 Ba1 BB 8,340,000
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 6,255,000
915,000 (Hanson Redevelopment Project),
8.375% due 5/1/2008 NR BBB 1,038,525
500,000 Syracuse, New York, General Obligation Bonds,
Industrial Development Agency, (James Square
Association), (FHA Insured),
7.000% due 8/1/2025 NR AAA 526,875
United Nations Development Corporation, New
York, Revenue Bonds, Senior Lien, Series A:
1,490,000 6.000% due 7/1/2007 A NR 1,529,113
1,170,000 6.000% due 7/1/2012 A NR 1,177,313
9,500,000 6.000% due 7/1/2026 A NR 9,393,125
725,000 Valley Health Development Corporation, New
York, Revenue Bonds, (FHA Insured), Mortgage
Loan,
11.300% due 2/1/2023 NR A 892,656
2,500,000 Warren & Washington Counties, New York,
Industrial Development Agency, Resource
Recovery, Revenue Bonds, Series A,
7.900% due 12/15/2007 B1 NR 2,568,750
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 292,125
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- ---------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
- ---------------------------------------------------------------------------------------------
<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
LONG-TERM MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
$ 2,000,000 Yonkers, New York, General Obligation Bonds,
Series C, (FGIC Insured),
5.500% due 9/1/2009 Aaa AAA $ 1,980,000
PUERTO RICO -- 2.2%
1,495,000 Commonwealth of Puerto Rico, Aquaduct and
Sewer Authority Revenue Bonds, (Escrow to
Maturity),
10.250% due 7/1/2009 AAA AAA 2,093,000
1,350,000 Commonwealth of Puerto Rico, General Obligation
Bonds,
8.000% due 7/1/2008 Baa1 A
6,470,000 Commonwealth of Puerto Rico, Urban Renewal and
Housing Corporation Revenue Bonds,
7.875% due 10/1/2004 Baa BBB 7,222,138
Puerto Rico, Industrial, Medical &
Environmental Pollution Control Facilities
Finance Authority,
Revenue Bonds:
2,085,000 (American Airlines), Series A,
8.750% due 12/1/2025 Baa1 A+ 2,157,975
535,000 (St. Luke's Hospital Project), Series A,
6.100% due 6/1/2001 NR A- 547,706
860,000 Puerto Rico Municipal Finance Agency, Series A,
8.250% due 7/1/2008 Baa1 A- 944,925
GUAM -- 0.1%
500,000 Guam Power Authority Revenue, Series A,
6.300% due 10/1/2022 NR BBB 476,875
- ---------------------------------------------------------------------------------------------
TOTAL LONG-TERM MUNICIPAL BONDS
AND NOTES (Cost $636,130,055) 654,175,811
- ---------------------------------------------------------------------------------------------
SHORT-TERM TAX-EXEMPT INVESTMENTS -- 0.5%
NEW YORK -- 0.3%
New York, New York, General Obligation Bonds:
1,100,000 Series C,
4.550% due 10/1/2023++ A1 AA+ 1,100,000
900,000 Subseries E-6,
4.300% due 8/1/2017++ A1 AA- 900,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- ---------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued) JUNE 30, 1995
- ---------------------------------------------------------------------------------------------
<CAPTION>
RATINGS MARKET VALUE
FACE VALUE MOODY'S S&P (NOTE 1)
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
SHORT-TERM TAX-EXEMPT INVESTMENTS (CONTINUED)
PUERTO RICO -- 0.2%
$ 1,300,000 Commonwealth of Puerto Rico, Government
Development Bank,
3.800% due 12/1/2015++ Aa2 AA+ $ 1,300,000
- ---------------------------------------------------------------------------------------------
TOTAL SHORT-TERM TAX-EXEMPT INVESTMENTS
(Cost $3,300,000) 3,300,000
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $639,430,055*) 99.2% 657,475,811
OTHER ASSETS AND LIABILITIES (NET) 0.8 5,457,654
- ---------------------------------------------------------------------------------------------
NET ASSETS 100.0% $662,933,465
- ---------------------------------------------------------------------------------------------
<FN>
* Aggregate cost for Federal tax purposes.
+ Security valued in good faith by Board of Directors.
++ Variable rate municipal bonds and notes are payable upon not more than one business
day's notice.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- ------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) JUNE 30, 1995
- ------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments, at value (Cost $639,430,055) (Note 1)
See accompanying schedule $657,475,811
Cash 47,619
Interest receivable 13,949,805
Receivable for Fund shares sold 620,989
- ------------------------------------------------------------------------------------------
TOTAL ASSETS 672,094,224
- ------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities purchased $7,278,310
Dividends payable 1,185,924
Investment advisory fee payable (Note 2) 188,598
Payable for Fund shares redeemed 183,095
Administration fee payable (Note 2) 107,371
Service fee payable (Note 3) 57,619
Distribution fee payable (Note 3) 48,530
Custodian fees payable (Note 2) 25,800
Transfer agent fees payable (Note 2) 15,535
Accrued Directors' fees and expenses (Note 2) 2,000
Accrued expenses and other payables 67,977
- ------------------------------------------------------------------------------------------
TOTAL LIABILITIES 9,160,759
- ------------------------------------------------------------------------------------------
NET ASSETS $662,933,465
- ------------------------------------------------------------------------------------------
NET ASSETS consist of:
Distributions in excess of net investment income earned to
date $ (1,602,459)
Accumulated net realized loss on investments sold (8,720,823)
Unrealized appreciation of investments 18,045,756
Par value 402,955
Paid-in capital in excess of par value 654,808,036
- ------------------------------------------------------------------------------------------
TOTAL NET ASSETS $662,933,465
- ------------------------------------------------------------------------------------------
NET ASSETS:
CLASS A SHARES:
Net Asset Value and redemption price per share
($494,929,739 / 30,084,518 shares of common stock
outstanding) $16.45
- ------------------------------------------------------------------------------------------
Maximum offering price per share ($16.45 / 0.96)
(Based on sales charge of 4.00% of the offering price on
June 30, 1995) $17.14
- ------------------------------------------------------------------------------------------
CLASS B SHARES:
Net Asset Value and offering price per share+
($167,187,719 / 10,161,423 shares of common stock
outstanding) $16.45
- ------------------------------------------------------------------------------------------
CLASS C SHARES:
Net Asset Value and offering price per share+
($816,007 / 49,606 shares of common stock outstanding) $16.45
- ------------------------------------------------------------------------------------------
<FN>
+ Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- -------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 1995
- -------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest $21,520,358
- -------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 2) $1,111,657
Administration fee (Note 2) 633,055
Service fee (Note 3) 486,222
Distribution fee (Note 3) 404,095
Transfer agent fees (Note 2) 100,643
Legal and audit fees 64,315
Custodian fees (Note 2) 49,403
Directors' fees and expenses (Note 2) 19,537
Other 71,277
- -------------------------------------------------------------------------------------------
Total before interest expense 2,940,204
- -------------------------------------------------------------------------------------------
Interest expense (Note 8) 19,897
- -------------------------------------------------------------------------------------------
TOTAL EXPENSES 2,960,101
- -------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 18,560,257
- -------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(NOTES 1 AND 5):
Net realized loss on investments sold during the period (3,996,650)
Net unrealized appreciation of investments during the
period 45,349,802
- -------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 41,353,152
- -------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $59,913,409
- -------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- -----------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS
ENDED YEAR
6/30/95 ENDED
(UNAUDITED) 12/31/94
<S> <C> <C>
Net investment income $ 18,560,257 $ 38,916,928
Net realized loss on investments sold during the period (3,996,650) (4,724,173)
Net unrealized appreciation/(depreciation) on investments
during the period 45,349,802 (82,527,978)
- -----------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from
operations 59,913,409 (48,335,223)
Distributions to shareholders from net investment income:
Class A (14,846,786) (30,891,616)
Class B (4,450,773) (8,023,640)
Class C (15,127) (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)
Class B -- (957,623)
Class C -- (1,790)
Net increase/(decrease) in net assets from Fund share
transactions (Note 6):
Class A (2,544,658) (36,576,643)
Class B 6,439,788 33,984,655
Class C 504,414 277,688
- -----------------------------------------------------------------------------------------
Net increase/(decrease) in net assets 45,000,267 (94,358,477)
NET ASSETS:
Beginning of period 617,933,198 712,291,675
- -----------------------------------------------------------------------------------------
End of period (including distributions in excess of net
investment income of $1,602,459 and $850,030,
respectively) $662,933,465 $617,933,198
- -----------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- -------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------
FOR CLASS A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR YEAR
6/30/95 ENDED ENDED ENDED
(UNAUDITED) 12/30/94 12/31/93@ 12/31/92*
<S> <C> <C> <C> <C>
Net asset value, beginning of period $15.44 $17.68 $17.12 $16.77
- -------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.47 0.97 1.02 1.12
Net realized and unrealized gain/(loss) on
investments 1.03 (2.12) 0.80 0.39
- -------------------------------------------------------------------------------------------
Total from investment operations 1.50 (1.15) 1.82 1.51
- -------------------------------------------------------------------------------------------
Less distributions:
Distributions from net investment income (0.49) (0.97) (1.03) (1.12)
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 (0.49) (1.09) (1.26) (1.16)
- -------------------------------------------------------------------------------------------
Net asset value, end of period $16.45 $15.44 $17.68 $17.12
- -------------------------------------------------------------------------------------------
Total return+ 9.81% (6.62)% 10.93% 9.36%
- -------------------------------------------------------------------------------------------
Ratios to average net assets/ supplemental
data:
Net assets, end of period (in 000's) $494,930 $466,884 $575,166 $535,514
Ratio of operating expenses to average net
assets 0.77%**# 0.77% 0.78% 0.67%
Ratio of net investment income to average
net assets 5.85%** 5.91% 5.83% 6.56%
Portfolio turnover rate 15% 36% 20% 30%
- -------------------------------------------------------------------------------------------
<FN>
* Any shares outstanding prior to November 6, 1992 were designated as Class A shares.
** Annualized.
+ Total return represents aggregate total return for the periods indicated and does
not reflect any applicable sales charge.
# The operating expense ratio excludes interest expense. The operating expense ratio
including interest expense was 0.78% for the six months ended June 30, 1995.
@ Per share amounts have been calculated using the monthly average shares method,
which more appropriately presents the per share data for this year since the use of
the undistributed net investment income method did not accord with results of
operations.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
<CAPTION>
YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/91 12/31/90 12/31/89 12/31/88 12/31/87 12/31/86 12/31/85
<S> <C> <C> <C> <C> <C> <C>
$15.94 $16.26 $15.97 $15.37 $16.71 $15.48 $13.90
-------------------------------------------------------------------------------------
1.15 1.16 1.16 1.15 1.14 1.20 1.24
0.84 (0.32) 0.26 0.61 (1.33) 1.52 1.58
-------------------------------------------------------------------------------------
1.99 0.84 1.42 1.76 (0.19) 2.72 2.82
-------------------------------------------------------------------------------------
(1.16) (1.16) (1.13) (1.16) (1.14) (1.20) (1.24)
-- -- -- -- -- -- --
-- -- -- -- (0.01) (0.29) --
-- -- -- -- -- -- --
-------------------------------------------------------------------------------------
(1.16) (1.16) (1.13) (1.16) (1.15) (1.49) (1.24)
-------------------------------------------------------------------------------------
$16.77 $15.94 $16.26 $15.97 $15.37 $16.71 $15.48
-------------------------------------------------------------------------------------
12.98% 5.41% 9.18% 11.82% (1.09)% 18.13% 21.03%
-------------------------------------------------------------------------------------
$469,139 $428,304 $442,563 $429,703 $202,265 $218,980 $125,365
0.64% 0.64% 0.66% 0.64% 0.68% 0.68% 0.81%
7.04% 7.31% 7.17% 7.50% 7.22% 7.25% 8.20%
31% 18% 7% 27% 22% 11% 20%
-------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- -------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
- -------------------------------------------------------------------------------------------
FOR CLASS B SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR PERIOD
06/30/95 ENDED ENDED ENDED
(UNAUDITED) 12/30/94 12/31/93@ 12/31/92*
<S> <C> <C> <C> <C>
Net Asset Value, beginning of
period $15.44 $17.68 $17.12 $16.93
- -------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.43 0.89 0.94 0.17
Net realized and unrealized
gain/(loss) on investments 1.03 (2.13) 0.80 0.20
- -------------------------------------------------------------------------------------------
Total from investment operations 1.46 (1.24) 1.74 0.37
- -------------------------------------------------------------------------------------------
Less distributions:
Distributions from net investment
income (0.45) (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 (0.45) (1.00) (1.18) (0.18)
- -------------------------------------------------------------------------------------------
Net Asset Value, end of period $16.45 $15.44 $17.68 $17.12
- -------------------------------------------------------------------------------------------
Total return+ 9.51% (7.17) % 10.33% 2.23%
- -------------------------------------------------------------------------------------------
Ratios to average net assets/
supplemental data:
Net assets, end of period (in
000's) $167,188 $150,765 $137,126 $18,125
Ratio of operating expenses to
average net assets 1.29%**# 1.30% 1.31% 1.30%**
Ratio of net investment income to
average net assets 5.34%** 5.39% 5.31% 5.94%**
Portfolio turnover rate 15% 36% 20% 30%
- -------------------------------------------------------------------------------------------
<FN>
* 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 share.
# The operating expense ratio excludes interest expense. The operating expense ratio
including interest expense was 1.29% for the six months ended June 30, 1995.
@ Per share amounts have been calculated using the monthly average shares method,
which more appropriately presents the per share data for this year since the use of
the undistributed net investment income method did not accord with results of
operations.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
Smith Barney
New York Municipals Fund Inc.
<TABLE>
- -------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
- -------------------------------------------------------------------------------------------
FOR CLASS C SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
SIX MONTHS
ENDED PERIOD
6/30/95 ENDED
(UNAUDITED) 12/31/94*
<S> <C> <C>
Net Asset Value, beginning of period $15.44 $15.19
- -------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.44 0.12
Net realized and unrealized gain/(loss) on
investments 1.02 0.35+++
- -------------------------------------------------------------------------------------------
Total from investment operations 1.46 0.47
- -------------------------------------------------------------------------------------------
Less distributions:
Distributions from net investment income (0.45) (0.12)
Distributions in excess of net investment income -- (0.00)++
Distributions from net capital gains -- (0.10)
Distributions from capital -- --
- -------------------------------------------------------------------------------------------
Total distributions (0.45) (0.22)
- -------------------------------------------------------------------------------------------
Net Asset Value, end of period $16.45 $15.44
- -------------------------------------------------------------------------------------------
Total return+ 9.51% 3.08%
- -------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 816 $ 285
Ratio of operating expenses to average net assets 1.35%**# 1.34%**
Ratio of net investment income to average net assets 5.28%** 5.35%**
Portfolio turnover rate 15% 36%
- -------------------------------------------------------------------------------------------
<FN>
* 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 share.
+++ The amount shown at this caption for each share outstanding throughout the period
may not accord with the change in aggregate gains and losses in the Fund for the
period because of the timing of purchases and withdrawals of shares in relation to
the fluctuating market value of the portfolio.
# The operating expense ratio excludes interest expense. The operating expense ratio
including interest expense was 1.36% for the six months ended June 30, 1995.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Smith Barney 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"). At the time of this report, the Fund offered four
classes of shares: Class A, Class B, Class C and Class Y 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") upon redemption. Class B
shares will convert automatically to Class A shares approximately eight years
after the date of original purchase. 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 June 30, 1995, 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"), an indirect wholly owned subsidiary of Mellon Bank
Corporation ("Mellon"), 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.
26
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 Smith Barney Mutual Funds Management Inc. ("SBMFM"), a wholly
owned subsidiary of Smith Barney Holdings Inc. ("Holdings"). Holdings is a
wholly owned subsidiary of Travelers Group 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.
27
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
The Fund has entered into an administration agreement (the "Administration
Agreement") with SBMFM. Under the Administration Agreement, the Fund pays a fee
computed daily and paid monthly based on the following annual rates: 0.20% of
the value of the Fund's average daily net assets up to $500 million and 0.18% of
the value of the Fund's average daily net assets in excess of $500 million.
The Fund and SBMFM have also entered into a sub-administration agreement (the
"Sub-Administration Agreement") with Boston Advisors. Under the
Sub-Administration Agreement, SBMFM pays Boston Advisors a portion of its
administration fee at a rate agreed upon from time to time between SBMFM and
Boston Advisors.
Smith Barney acts as the exclusive distributor of the Fund's shares. For the six
months ended June 30, 1995, Smith Barney received $206,039 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 certain Class A, Class B and Class C shares. In circumstances in which the
CDSC is imposed, the amount of the charge will vary depending on the number of
years since the date or purchase. For the six months ended June 30, 1995, Smith
Barney received $176,653 from investors in CDSCs on the redemption of Class B
shares.
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 each Director emeritus who is not an officer, trustee, or
employee of Smith Barney or any of its affiliates $1,000 per annum plus $250 per
meeting attended. The Fund reimburses each such Director for travel and
out-of-pocket-expenses incurred to attend such meetings.
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.
28
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
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%, respectively, of the value of the average daily
net assets of each respective class of shares. During the six months ended June
30, 1995, the Fund incurred $365,037 in service fees for Class A shares. During
the same period, the Fund incurred $120,756 and $429 in services fees for Class
B and Class C shares, respectively, and $402,522 and $1,573 in distribution fees
for Class B and Class C shares, respectively.
Under its terms, the Plan shall remain in effect from year to year, provided
that such continuance is approved annually by vote of the Fund's Board of
Directors, including a majority of those Directors who are not "interested
persons" of the Fund and who have no direct or indirect financial interest in
the operation of the Plan.
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 $66,325, $34,171 and $147 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 six months ended June 30, 1995, amounted to
$98,851,669 and $100,187,807, respectively.
At June 30, 1995, the aggregate gross unrealized appreciation for all securities
in which there was an excess of value over tax cost amounted to $26,707,173, and
the aggregate gross unrealized depreciation for all securities in which there
was an excess of tax cost over value amounted to $8,661,417.
29
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
6. COMMON STOCK
<TABLE>
At June 30, 1995, 500 million shares of $0.01 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:
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
CLASS A SHARES: Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 956,772 $ 15,497,165 3,478,703 $ 57,671,706
Issued as reinvestment of
dividends 586,740 9,539,636 1,402,444 22,818,151
Redeemed (1,695,005) (27,581,459) (7,180,131) (117,066,500)
- ------------------------------------------------------------------------------------------------
Net decrease (151,493) $ (2,544,658) (2,298,984) $ (36,576,643)
- ------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
CLASS B SHARES: Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 756,468 $ 12,225,125 3,026,863 $ 50,329,261
Issued as reinvestment of
dividends 164,050 2,667,671 364,474 5,904,778
Redeemed (520,555) (8,453,008) (1,388,070) (22,249,384)
- ------------------------------------------------------------------------------------------------
Net increase 399,963 $ 6,439,788 2,003,267 $ 33,984,655
- ------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1995 DECEMBER 31, 1994*
CLASS C SHARES: Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 30,372 $491,562 18,218 $274,188
Issued as reinvestment of
dividends 837 13,659 227 3,500
Redeemed (48) (807) -- --
- ------------------------------------------------------------------------------------------------
Net increase 31,161 $504,414 18,445 $277,688
- ------------------------------------------------------------------------------------------------
<FN>
* The Fund commenced selling Class C shares on November 10, 1994.
As of June 30, 1995, no Class Y shares had been sold.
</TABLE>
30
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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. LINE OF CREDIT
The Fund and several affiliated entities participate in a $50 million line of
credit provided by Bank of America 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. However, pursuant to the Fund's prospectus, the Fund
may only borrow up to 10% of its net assets. 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 six
months ended June 30, 1995, the Fund had an average outstanding daily balance of
$609,392 with interest rates ranging from 5.875% to 6.563%. Interest expense
totalled $19,897 for the six months ended June 30, 1995. At June 30, 1995, the
Fund had no outstanding borrowings under this agreement.
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.
31
<PAGE>
Smith Barney
New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
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
<PAGE>
NEW YORK SMITH BARNEY
MUNICIPALS ------------
FUND INC. A member of TravelersGroup [graphic
of an
umbrella]
DIRECTORS
Herbert Barg
Alfred J. Bianchetti
Martin Brody
Dwight B. Crane
Burt N. Dorsett
Elliot S. Jaffe
Stephen E. Kaufman
Joseph J. McCann
Heath B. McLendon
Cornelius C. Rose, Jr.
OFFICERS
Heath B. McLendon
Chairman of the Board
Jessica Bibliowicz This report is submitted for SEMI-
President the general information of the ANNUAL
shareholders of Smith Barney REPORT
Lewis E. Daidone New York Municipals Fund Inc.
Senior Vice President It is not authorized for
and Treasurer distribution to prospective
investors unless accompanied
Lawrence T. McDermott or preceded by an effective
Vice President and Prospectus for the Fund,
Investment Officer which contains information
concerning the Fund's investment
Karen L. Mahoney-Malcomson policies, fees and expenses as
Investment Officer well as other pertinent
information.
Chrisitina T. Sydor
Secretary
SMITH BARNEY
MUTUAL FUNDS
388 Greenwich Street
New York, New York 10013
[RECYCLE FUND 13, 194, 486, 468
LOGO] FD 0403 8/95
