<PAGE>
A N N U A L R E P O R T
1995
1995
1995
1995
1995
SMITH BARNEY
NEW YORK
MUNICIPALS
FUND INC.
------------------------------------------
December 31, 1995
Smith Barney Mutual Funds
[Logo] Investing for your future.
Every day.
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Smith Barney New York Municipals Fund Inc.
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DEAR SHAREHOLDER:
We are pleased to provide you with this annual report,
which includes audited financial statements for Smith
Barney New York Municipals Fund Inc. and covers the year
ended December 31, 1995. For your convenience, we have summarized
the period's prevailing economic and market conditions. A more
detailed summary of performance and current holdings can be found in
the appropriate sections that follow in the annual report.
1995: THE YEAR IN REVIEW
The year 1995 was a positive one for the fixed income markets, in
general, as low interest rates prevailed. One of the more notable
events of the year was a significant drop in long-term interest
rates, as measured by the decline of 30-Year Treasuries, from more
than 8% at the beginning of 1995, to 7.43% on March 31, 1995, 6.50%
on September 30, 1995, and, lastly, 6% by year end. This drop of 200
basis points was unprecedented and responsible in part for the stock
market's remarkable showing in 1995 -- a performance that defied all
expectations. In another surprising development, the U.S. dollar
finished the year in an extremely strong position relative to other
currencies, which will likely encourage lower interest rates going
forward.
THE MUNICIPAL BOND MARKET
As Treasury yields were falling in 1995, long-term municipal bond yields barely
moved. Yields on municipal bonds are now topping 90% of those offered by
Treasuries. However, slow economic growth, low interest rates, a flat yield
curve and a diminishing supply of issues generally combined to create a subdued
municipal bond market environment in 1995. Smith Barney New York Municipals Fund
was able to find value by sifting through what issues were available and
focusing on municipal bonds with strong credit ratings.
In response to the Federal Reserve's policy of lower interest rates, our
investment strategy has been to keep the Smith Barney New York Municipals Fund's
average maturity at roughly 23 years, which enabled the Fund to maximize
tax-exempt income. At the end of the
1
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reporting period, a majority 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., two major bond credit rating organizations. These
high-quality investments provide the Fund with greater protection against
credit risk and are also more liquid.
WHAT'S AHEAD FOR MUNICIPAL BONDS
Experts predict that approximately $155 billion in new long-term municipal bond
issues will come to market in 1996 (roughly the same amount seen in 1995). Yet
those new issues will be more than offset by the $150 to $175 billion in
municipal bonds set to retire in 1996. In our view, tightened supply could drive
municipal bond prices higher, increasing appreciation opportunities --
particularly for bonds with long maturities and good call protection.
However, any municipal bond market rally will depend on tax reform and
Washington, D.C. reaching a consensus on the federal budget. At this time, we do
not expect any flat tax proposals to be taken seriously given the upcoming
Presidential election. That does not mean, however, that the municipal bond
market will not reflect investors' worries about such a prospect, which could
depress municipal bond prices in 1996. In addition, federal spending reductions
could have an impact on funding for state and local projects which, if combined
with resistance to higher local taxes that back some municipal bonds, could
affect credit quality or supply.
NEW YORK ECONOMIC HIGHLIGHTS
Like his Republican counterpart in New Jersey, Governor Christine Todd Whitman,
Governor George E. Pataki has done an excellent job in reducing state
government, cutting state employment and bringing much-needed fiscal discipline
to the State's budget.
Gov. Pataki has successfully merged some of the state agencies that manage debt
and there has been better control over the timing of debt issuance. To his
credit, Gov. Pataki has implemented quality management controls that have
resulted in more internal review before debt is issued, less short-term
borrowing and less reliance on one-time measures. On the positive side, we
expect reasonable revenue and expenditure estimates for New York to continue
and we believe the state legislature is committed to using fewer budget gimmicks
and relying less on short-term borrowing.
2
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PORTFOLIO PERFORMANCE SUMMARY
According to Lipper Analytical Services, Inc., a major fund tracking
organization, Smith Barney New York Municipals Fund posted a one-year total
return for Class A shares of 17.30% for the period ended December 31, 1995. The
Fund's average weighted maturity for the same period was 23.28 years.
LOOKING AHEAD
It now appears that the Federal Reserve has been successful in containing
inflation -- which averaged 2.8% in 1995 -- and in encouraging a slower rate of
economic growth, which totaled 2.5% in 1995 as measured by Gross Domestic
Product (GDP). The Federal Open Market Committee, which controls the federal
funds rate, declined to alter the rate in both September and November after a
quarter point reduction in July but did elect to reduce this rate again in
December to 5.50%. (The federal funds rate represents the rate banks charge each
other for overnight loans and affects all other interest rates, including those
offered by municipal bonds.) Lower interest rates typically increase economic
growth because they make it less expensive for businesses to fund expansion. The
Federal Reserve acted to lower short-term rates at their last meeting held in
December 1995.
Going forward, we expect to see yet another year of slow economic growth, with
GDP posting growth of around 2%. We also forecast steady or slightly lower
interest rates of half a point to a full point in 1996. Our outlook for the
municipal bond market remains positive. Limited supply is driving prices higher,
yields are excellent relative to U.S. Treasuries and growing credit strength in
a number of states is increasing the attractiveness of many issues.
3
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SPECIAL SHAREHOLDER NOTICE
Effective Friday, February 2, 1996, Smith Barney New York Municipals Fund would
be merged into the Smith Barney Muni Funds -- New York Portfolio. It is our
belief that combining these two New York municipal bond funds will be beneficial
for shareholders. Of course, the Smith Barney New York Portfolio will continue
to be managed conservatively and with the same commitment to service that
shareholders have come to expect from Smith Barney New York Municipals Fund. We
look forward to continue to serve your investment needs.
Sincerely,
<TABLE>
<S> <C>
HEATH B. MCLENDON LAWRENCE T. MCDERMOTT
Heath B. McLendon Lawrence T. McDermott
Chairman and Chief Vice President and
Executive Officer Investment Officer
</TABLE>
January 25, 1996
4
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Smith Barney New York Municipals Fund Inc.
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HISTORICAL PERFORMANCE -- CLASS A SHARES
<TABLE>
<CAPTION>
Net Asset Value
---------------------
<S> <C> <C> <C> <C> <C> <C>
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns(1)
- -----------------------------------------------------------------------------------------------------------------
12/31/95 $ 15.44 $ 17.05 $ 1.00 $0.00 $ 0.00 17.30%
- -----------------------------------------------------------------------------------------------------------------
12/31/94 17.68 15.44 0.99 0.10 0.00 (6.62)
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12/31/93 17.12 17.68 1.03 0.23 0.00 10.93
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12/31/92 16.77 17.12 1.12 0.03 0.01 9.36
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12/31/91 15.94 16.77 1.16 0.00 0.00 12.98
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12/31/90 16.26 15.94 1.16 0.00 0.00 5.41
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12/31/89 15.97 16.26 1.13 0.00 0.00 9.18
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12/31/88 15.37 15.97 1.16 0.00 0.00 11.82
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12/31/87 16.71 15.37 1.14 0.01 0.00 (1.09)
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12/31/86 15.48 16.71 1.20 0.29 0.00 18.13
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Total $ 11.09 $0.66 $ 0.01
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</TABLE>
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HISTORICAL PERFORMANCE -- CLASS B SHARES
<TABLE>
<CAPTION>
Net Asset Value
---------------------
<S> <C> <C> <C> <C> <C> <C>
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns(1)
- -------------------------------------------------------------------------------------------------------------------
12/31/95 $15.44 $ 17.05 $ 0.91 $ 0.00 $ 0.00 16.67%
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12/31/94 17.68 15.44 0.90 0.10 0.00 (7.17)
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12/31/93 17.12 17.68 0.95 0.23 0.00 10.33
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Inception*- 12/31/92 16.93 17.12 0.15 0.03 0.00 2.23`D'
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Total $ 2.91 $ 0.36 $ 0.00
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</TABLE>
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HISTORICAL PERFORMANCE -- CLASS C SHARES
<TABLE>
<CAPTION>
Net Asset Value
---------------------
<S> <C> <C> <C> <C> <C> <C>
Beginning End Income Capital Gain Return Total
Year Ended of Year of Year Dividends Distributions of Capital Returns(1)
- -------------------------------------------------------------------------------------------------------------------
12/31/95 $ 15.44 $ 17.04 $0.90 $0.00 $ 0.00 16.59%
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Inception*- 12/31/94 15.19 15.44 0.12 0.10 0.00 3.08`D'
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Total $1.02 $0.10 $ 0.00
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</TABLE>
IT IS THE FUND'S POLICY TO DISTRIBUTE DIVIDENDS MONTHLY AND CAPITAL GAINS, IF
ANY, ANNUALLY.
5
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Smith Barney New York Municipals Fund Inc.
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AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
Without Sales Charge(1)
-----------------------------------
<S> <C> <C> <C>
Class A Class B Class C
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Year Ended 12/31/95 17.30% 16.67% 16.59%
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Five Years Ended 12/31/95 8.46 N/A N/A
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Ten Years Ended 12/31/95 8.48 N/A N/A
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Inception* through 12/31/95 9.32 6.56 17.50
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</TABLE>
<TABLE>
<CAPTION>
With Sales Charge(2)
-----------------------------------
<S> <C> <C> <C>
Class A Class B Class C
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Year Ended 12/31/95 12.61% 12.17% 15.59%
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Five Years Ended 12/31/95 7.58 N/A N/A
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Ten Years Ended 12/31/95 8.04 N/A N/A
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Inception* through 12/31/95 8.94 6.00 17.50
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</TABLE>
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CUMULATIVE TOTAL RETURN
<TABLE>
<CAPTION>
Without Sales Charge(1)
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<S> <C> <C>
Class A (12/31/85 through 12/31/95) 125.71%
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Class B (Inception* through 12/31/95) 22.15
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Class C (Inception* through 12/31/95) 20.17
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</TABLE>
(1) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value and does not reflect deduction of the applicable
sales charge with respect to Class A shares or the applicable contingent
deferred sales charges ('CDSC') with respect to Class B and Class C shares.
(2) Assumes reinvestment of all dividends and capital gain distributions, if
any, at net asset value. In addition, Class A shares reflect the deduction
of the maximum sales charge of 4.00%; and Class B shares reflect the
deduction of a 4.50% CDSC, which applies if shares are redeemed less than
one year from initial purchase. This CDSC declines by 0.50% the first year
after purchase and thereafter by 1.00% per year until no CDSC is incurred.
Class C shares reflect the deduction of a 1.00% CDSC, which applies if
shares are redeemed within the first year of purchase.
`D' Total return is not annualized, as it may not be representative of the total
return for the year.
* Inception dates for Class A, B and C shares are January 23, 1984, November 6,
1992 and November 10, 1994, respectively.
6
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Smith Barney New York Municipals Fund Inc.
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HISTORICAL PERFORMANCE (UNAUDITED)
GROWTH OF $10,000 INVESTED IN CLASS A SHARES OF
THE SMITH BARNEY NEW YORK MUNICIPALS FUND INC. VS.
LEHMAN MUNICIPAL BOND FUND INDEX AND
LIPPER NEW YORK MUNICIPAL FUND AVERAGE`D'
- --------------------------------------------------------------------------------
December 1985 -- December 1995
[PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
SMITH BARNEY LIPPER NEW YORK
NEW YORK LEHMAN MUNICIPAL MUNICIPAL FUND
DATE MUNICIPALS FUND INC. BOND FUND INDEX AVERAGE
- ----------------------------------------------------- -------------------- ---------------- ---------------
<S> <C> <C> <C>
12/85 9,597 10,000 10,000
12/86 11,337 11,931 11,724
12/87 11,214 12,111 11,530
12/88 12,539 13,341 12,774
12/89 13,689 14,781 13,967
12/90 14,430 15,857 14,670
12/91 16,302 17,782 16,619
12/92 17,740 19,349 18,216
12/93 19,777 21,726 20,522
12/94 18,467 20,604 18,980
12/95 21,469 24,200 22,147
</TABLE>
`D' Hypothetical illustration of $10,000 invested in Class A shares on December
31, 1985, assuming deduction of the maximum 4.00% sales charge at the time
of investment and reinvestment of dividends and capital gains, if any, at
net asset value through December 31, 1995. The Lehman Municipal Bond Fund
Index is a broad based, total return index comprised of 8,000 actual bonds
which are all investment grade, fixed rate, long term maturities (greater
than two years) and are selected from issues larger than $50 million dated
since January, 1984. The Lipper New York Municipal Fund Average is composed
of the Fund's peer group of 102 mutual funds. The index is unmanaged and is
not subject to the same management and trading expenses as a mutual fund.
The performance of the Fund's other classes may be greater or less than the
Class A shares' performance indicated on this chart, depending on whether
greater or lesser sales charges and fees were incurred by shareholders
investing in the other classes.
All figures represent past performance and are not a guarantee of future
results. Investment returns and principal value will fluctuate, and
redemption values may be more or less than the original cost. No adjustment
has been made for shareholder tax liability on dividends or capital gains.
7
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Smith Barney New York Municipals Fund Inc.
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PORTFOLIO HIGHLIGHTS (UNAUDITED) DECEMBER 31, 1995
INDUSTRY BREAKDOWN
[PIE CHART]
Life Care Systems 2.4%
Water and Sewer 3.4%
Transportation 4.9%
Pollution Control Revenue 5.2%
Utility 5.7%
Housing 14.7%
General Obligations 15.3%
Education 19.0%
Hospitals 26.3%
Other 0.8%
Industrial Development Revenue 2.3%
SUMMARY OF INVESTMENTS BY COMBINED RATINGS
<TABLE>
<CAPTION>
STANDARD & PERCENTAGE OF
MOODY'S AND/OR POOR'S TOTAL INVESTMENTS
<S> <C> <C> <C>
- -------------------------------------------------------------------
Aaa AAA 28.9%
Aa AA 19.0
A A 17.3
Baa BBB 29.5
Ba BB 2.8
B B 0.2
NR NR 2.3
-----
100.0%
-----
-----
</TABLE>
8
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Smith Barney New York Municipals Fund Inc.
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SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 100%
<C> <S> <C> <C>
EDUCATION -- 19.0%
$1,000,000 AAA New York City Industrial Development Agency,
Civil Facilites Revenue, (New School for
Social Research Project), MBIA-Insured,
Series A, 6.200% due 9/1/14 $ 1,071,250
New York State Dormitory Authority, Revenue
Bonds:
City University:
2,000,000 Baa1* 7.625% due 7/1/14 2,212,500
4,250,000 AAA AMBAC-Insured, 6.300% due 7/1/24 4,552,812
2,500,000 Baa1* Series A, 7.500% due 7/1/06 2,596,825
7,000,000 Baa1* Series B, 6.000% due 7/1/14 7,236,250
3,000,000 BBB Series C, 8.200% due 7/1/14 3,117,990
1,250,000 Baa1* Series U, 6.250% due 7/1/02 1,350,000
3,000,000 AAA Series 2, MBIA-Insured, Third Generation,
7.150% due 8/1/14 3,397,500
2,855,000 AAA Comsewgue Public Library, MBIA-Insured,
6.000% due 7/1/15 3,004,888
3,000,000 AAA Cooper Union, FSA-Insured, 7.200% due 7/1/20 3,375,000
Cornell University, Series A:
2,000,000 AA 7.375% due 7/1/20 2,267,500
1,000,000 AA 7.375% due 7/1/30 1,133,750
1,230,000 AAA Crouse Community Center, FHA-Insured,
7.500% due 8/1/29 1,380,675
2,000,000 AAA Culinary Institute of America, CONNIE
LEE-Insured,
6.000% due 7/1/22 2,065,000
Department of Health, State of New York
Issue:
200,000 Baa1* 7.250% due 7/1/02 223,250
3,150,000 Baa1* 5.500% due 7/1/20 3,043,688
4,500,000 Baa1* Educational Revenue Bonds, 6.250% due
5/15/14 4,685,625
3,500,000 AAA Episcopal Health, FHA-Insured, 5.900% due
8/1/20 3,556,875
Genessee Valley, FHA-Insured:
1,000,000 AA Series A, 6.900% due 2/1/32 1,087,500
685,000 AA Series B, 6.850% due 8/1/16 757,781
1,600,000 A Irving Medical Hospital, HIBI-Insured,
10.500% due 7/1/17 1,665,264
2,405,000 AAA Jewish Geriatric Center, FHA-Insured,
7.150% due 8/1/14 2,750,719
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
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Smith Barney New York Municipals Fund Inc.
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SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
EDUCATION -- 19.0% (CONTINUED)
$2,000,000 AAA Long Island Medical Center, Series A,
FHA-Insured, 7.750% due 8/15/27 $ 2,175,000
2,700,000 AA Manhattan College, 6.500% due 7/1/19 2,851,875
470,000 BBB+ Manhattan Eye, Ear & Throat Hospital,
11.500% due 7/1/09 470,070
1,500,000 AA New Hope Community, FHA-Insured,
5.700% due 7/1/17 1,516,875
New York Medical College:
220,000 AA 6.700% due 7/1/01 244,750
1,155,000 NR 7.250% due 10/1/30 1,238,737
6,000,000 AAA Revenue Department, Series A, 6.250% due
7/1/24 6,187,500
5,000,000 Baa1* State of New York Issue, Series 1991,
7.750% due 7/1/21 5,687,500
State University Educational Facility,
Series A:
11,620,000 Baa1* 6.375% due 5/15/14 12,244,575
7,500,000 Baa1* 5.875% due 5/15/17 7,725,000
4,000,000 Baa1* 6.000% due 5/15/22 4,040,000
2,450,000 AAA St. Vincent's Hospital & Medical Center,
FHA-Insured, 7.400% due 8/1/30 2,719,500
7,370,000 A+ University of Rochester, Series A, 6.500%
due 7/1/19 8,088,575
Upstate Community College, Series A:
8,550,000 Baa1* 5.700% due 7/1/21 8,550,000
2,000,000 AAA CONNIE LEE-Insured, 5.750% due 7/1/22 2,032,500
285,000 Baa1* Series B, 7.100% due 7/1/01 317,419
1,650,000 AAA New York State Urban Development, Higher
Education Applied Technology, Series 94,
MBIA-Insured, 5.625% due 4/1/14 1,691,250
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124,313,768
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GENERAL OBLIGATION -- 15.3%
4,850,000 AA Battery Park City Authority Housing Revenue,
Junior Note, 5.800% due 11/1/22 4,916,687
500,000 AAA Buffalo Refunding Bonds, FGIC-Insured,
6.250% due 2/1/16 525,625
700,000 AAA Central Square Central School District,
FGIC-Insured, 6.500% due 6/15/00 770,875
1,350,000 A Commonwealth of Puerto Rico GO, 8.000% due
7/1/08 1,490,063
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
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Smith Barney New York Municipals Fund Inc.
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SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
GENERAL OBLIGATION -- 15.3% (CONTINUED)
Green Island GO:
$ 100,000 Baa* 9.375% due 11/1/01 $ 120,125
125,000 Baa* 9.375% due 11/1/02 152,969
Lockport Town Refunding Bonds, MBIA-Insured:
435,000 AAA 5.400% due 3/1/12 440,981
430,000 AAA 5.400% due 3/1/13 434,837
425,000 AAA 5.400% due 3/1/14 428,187
415,000 AAA 5.400% due 3/1/15 416,556
New Rochelle GO, MBIA-Insured:
1,250,000 AAA Series B, 6.200% due 8/15/20 1,348,437
450,000 AAA Series C, 6.250% due 3/15/20 473,625
New York City Refunding Bonds:
4,000,000 AAA MBIA-Insured, 6.950% due 8/1/12 4,555,000
3,000,000 AAA Series B, FSA-Insured, 5.850% due 10/1/07 3,213,750
Series C:
4,000,000 Baa1* 6.500% due 8/1/07 4,170,000
5,000,000 AAA 6.660% due 8/1/09 5,343,750
255,000 AAA Series D, BIG-Insured, 8.000% due 8/1/04 274,762
Series F:
2,500,000 Baa1* 6.125% due 2/1/25 2,506,250
1,600,000 Baa1* 6.625% due 2/15/25 1,670,000
5,500,000 Baa1* Series H, 7.000% due 2/1/21 5,885,000
Series I, AMBAC-Insured:
1,850,000 AAA 7.250% due 8/15/14 2,014,188
555,000 BBB+ 7.250% due 8/15/15 609,113
Series I, AMBAC-Insured, Escrowed to
Maturity with U.S. Government Securities:
3,150,000 AAA 7.250% due 8/15/14(a) 3,850,875
945,000 AAA 7.250% due 8/15/15(a) 1,045,406
2,400,000 BBB+ New York City GO, 5.000% due 2/1/25(b) 2,400,000
New York State GO:
6,485,000 A* 7.000% due 11/15/02 7,376,688
1,000,000 A* 12.000% due 11/15/03 1,471,250
2,750,000 A* 9.875% due 11/15/05 3,825,938
3,620,000 A* 9.875% due 10/1/15 3,710,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
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<PAGE>
Smith Barney New York Municipals Fund Inc.
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SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
GENERAL OBLIGATION -- 15.3% (CONTINUED)
$14,345,000 A New York State Local Government Assistance
Corporation, Series A, 6.875% due 4/1/19 $ 16,030,538
1,100,000 Baa1* New York State Urban Development, Correctional
Facilities Revenue Bonds, Series A, 5.500%
due 1/1/15 1,062,875
860,000 A- Puerto Rico Municipal Finance Agency, Series
A,
8.250% due 7/1/08 947,075
915,000 BBB State of New York COP, (Hanson Redevelopment
Project), 8.375% due 5/1/08 1,087,706
United Nations Development Corporation Revenue
Bonds, Senior Lien, Series A:
1,490,000 A* 6.000% due 7/1/07 1,596,163
1,170,000 A* 6.000% due 7/1/12 1,234,350
9,500,000 A* 6.000% due 7/1/26 9,927,500
2,000,000 AAA Yonkers GO, Series C, FGIC-Insured, 5.500% due
9/1/09 2,067,500
- ------------------------------------------------------------------------------------
99,395,144
- ------------------------------------------------------------------------------------
HOSPITALS -- 26.3%
7,615,000 Baa* New York City Local Government Revenue, Health
& Hospital Corporation, Series A, 6.300% due
2/15/20 7,710,187
3,000,000 AA New York State Dormitory Authority, St. Lukes
Home, 6.375% due 8/1/35 3,120,000
New York State Medical Care Facilities Finance
Agency Revenue Bonds:
5,075,000 BBB+ 8.875% due 8/15/07 5,538,094
4,720,000 BBB+ 6.500% due 8/15/12 5,003,200
AMBAC/FHA-Insured:
8,500,000 AAA 6.800% due 8/15/24 9,509,375
7,600,000 AAA 6.500% due 8/15/29 8,255,500
2,500,000 AAA 6.900% due 8/15/34 2,778,125
14,450,000 AAA FHA-Insured, 6.200% due 2/15/28 15,064,125
3,000,000 AAA Beth Israel Medical Center, Series A,
MBIA-Insured, 7.500% due 11/1/10 3,393,750
4,000,000 BBB Bronxdale Hospital Medical, 6.800% due
8/15/12 4,265,000
2,500,000 BBB Central Suffolk Hospital Project, Series
A,
6.125% due 11/1/16 2,509,375
Hospital & Nursing Home, FHA-Insured,
Series A:
175,000 AA 6.100% due 2/15/02 185,937
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
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SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
HOSPITALS -- 26.3% (CONTINUED)
$ 805,000 AA 8.750% due 2/15/15 $ 817,268
11,805,000 AA 6.200% due 2/15/21 12,380,494
6,000,000 AA 8.000% due 2/15/27 6,495,000
7,965,000 AAA 8.000% due 2/15/28 8,861,062
4,100,000 AA 7.450% due 8/15/31 4,515,125
3,000,000 AA 6.375% due 8/15/33 3,105,000
Long Term Healthcare, CGIC-Insured:
1,860,000 AAA Series B, 6.450% due 11/1/14 1,990,200
140,000 AAA Series C, 6.400% due 11/1/14 149,450
4,615,000 BBB+ Mental Health Service Facilities, Series
F,
6.500% due 2/15/19 4,857,288
5,300,000 AA Methodist Hospital, FHA-Insured, 6.700%
due 8/15/23 5,717,375
4,000,000 AA Mortgage Project, Series A, FHA-Insured,
6.375% due 8/15/24 4,210,000
Second Mortgage Healthcare Project,
1,000,000 AA 6.375% due 11/15/19 1,050,000
5,000,000 BBB Secured Hospital Revenue Bonds, Series
91-A,
7.400% due 8/15/21 5,418,750
Series A:
1,185,000 BBB+ 7.700% due 2/15/18 1,275,356
1,840,000 BBB+ 7.750% due 2/15/20 2,070,000
6,000,000 AA SONYMA-Insured, 5.850% due 2/15/33 6,075,000
3,500,000 AA Series B, FHA-Insured, 6.100% due 2/15/15 3,640,000
2,500,000 AA Series C, FHA-Insured, 6.650% due 8/15/32 2,662,500
Series D, FHA-Insured:
5,000,000 AA 5.950% due 8/15/09 5,250,000
495,000 AAA 6.375% due 8/15/29 514,800
8,300,000 AAA 6.450% due 2/15/32 8,766,875
1,220,000 AA+ 6.200% due 2/15/35 1,277,950
1,640,000 AAA St. Mary's Hospital Project, Series A,
AMBAC-Insured, 6.200% due 11/1/14 1,752,750
Newark-Wayne Community Hospital Inc., Hospital
Revenue:
2,890,000 NR Series A, 7.600% due 9/1/15 2,886,388
2,400,000 AAA Series B, FHA-Insured, 5.875% due 1/15/33 2,436,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
HOSPITALS -- 26.3% (CONTINUED)
$4,700,000 BBB New York Downtown Hospital, Series A,
6.800% due 2/15/20 $ 4,987,875
720,000 A Valley Health Development Corporation Revenue
Bonds, FHA-Insured, Mortgage Loan, 11.300%
due 2/1/23 899,100
- ------------------------------------------------------------------------------------
171,394,274
- ------------------------------------------------------------------------------------
HOUSING -- 14.7%
Battery Park City Authority, Housing Revenue:
35,000 NR FHA-Insured, 8.625% due 6/1/23 44,887
5,000,000 AAA Mortgage Loan, FHA-Insured, Series A,
5.750% due 6/1/23 4,999,750
5,000,000 AA Senior Note, 5.700% due 11/1/20 5,006,250
6,470,000 BBB Commonwealth of Puerto Rico, Urban Renewal
& Housing Corporation Revenue Bonds,
7.875% due 10/1/04 7,262,575
New York City Housing Development Corporation,
Multi-Family Housing, Pass-Through
Certificates:
1,972,587 AAA AMBAC-Insured, 6.500% due 12/20/01 2,014,504
1,627,805 AAA Cadman Project, 6.500% due 2/15/18 1,701,056
FHA-Insured:
5,000,000 AAA 7.350% due 6/1/19 5,400,000
4,000,000 AA 6.600% due 4/1/30 4,165,000
1,033,328 NR Heywood Project, 6.500% due 10/15/17 1,078,537
1,319,095 AAA Kelly Project, 6.500% due 2/15/18 1,378,454
1,695,808 AAA Riverside Project, 6.500% due 11/15/18 1,786,958
7,650,000 AA Series B, FHA-Insured, 5.3850% due 5/1/26 7,697,812
New York State Housing Corporation,
Mortgage Revenue Bonds:
10,200,000 AA Battery Park City Refunding, Sr. Note,
5.500% due 11/1/20 10,047,000
1,820,000 NR Lincoln Towers Project, Housing and Urban
Development -- Section 8,
11.250% due 1/1/15 1,914,422
New York State Housing Finance Agency:
Multi-Family Housing, FHA-Insured:
2,000,000 AA 6.200% due 8/15/15(c) 2,080,000
2,905,000 AA Series A, 10.000% due 11/15/25 2,984,597
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
HOUSING -- 14.7% (CONTINUED)
$1,500,000 AAA Series C, 6.500% due 8/15/24 $ 1,584,375
Second Mortgage Project, Multi-Family
Housing, SONYMA-Insured:
1,750,000 AA Series C, 6.600% due 8/15/27 1,855,000
1,250,000 Aa* Series D, 6.250% due 8/15/23 1,298,437
Service Contract Obligations Revenue Bonds:
10,500,000 Baa1* Series C, 6.125% due 3/15/20 10,657,500
5,555,000 Baa1* Series D, 5.6255 due 9/15/13 5,443,900
New York State Mortgage Agency Revenue:
2,625,000 AA Series 37-A, 6.375% due 10/1/14 2,752,969
1,000,000 AA Series 41-A, 6.450% due 10/1/14 1,056,250
4,000,000 AA Series 42, FHA-Insured, 6.650% due 4/1/26(c) 4,210,000
4,250,000 AA Series 48, 6.100% due 4/1/25(c) 4,292,500
1,345,000 AA 9th Series A, 7.300% due 4/1/17(c) 1,380,306
1,015,000 AA Series GG, Homeowner Mortgage, 8.125% due
4/1/20(c) 1,070,825
285,000 A White Plains, Battle Hill Housing Development
Corporation, Housing Revenue Bonds, Section
8,
FHA-Insured, 9.875% due 4/1/25 290,663
- ------------------------------------------------------------------------------------
95,454,527
- ------------------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT REVENUE -- 2.3%
3,795,000 D Babylon Industrial Development Agency,
Recycling Facilities Revenue, Babylon
Recycling Center, Inc. Series A, 8.875% due
3/1/11(d) 1,518,000
250,000 Baa1* Chautauqua County Industrial Development
Agency, Industrial Development Revenue
Bonds, (Ralston Purina Company Project),
9.800% due 2/1/01 251,130
4,000,000 A- Hempstead Town Industrial Development Agency,
Resource Recovery Revenue Bonds, American
Fuel Company, 7.400% due 12/1/10 4,171,720
Monroe County, Industrial Development Agency,
Revenue Bonds Civil Facility, Series A:
2,700,000 A Al Sigl Center, 8.000% due 12/15/03 2,841,939
990,000 B1* Genesee Hospital, 6.500% due 11/1/66 1,012,275
2,250,000 AA New York City Industrial Development Agency:
Civil Facility Refunding Bond, (The
Lighthouse Inc. Project), 6.500% due 7/1/22 2,418,750
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
INDUSTRIAL DEVELOPMENT REVENUE -- 2.3% (CONTINUED)
$ 500,000 AAA Syracuse GO, Industrial Development Agency,
James Square Association, FHA-Insured,
7.000% due 8/1/25 $ 541,875
2,500,000 B* Warren & Washington Counties, Industrial
Development Agency, Resource Recovery,
Revenue Bonds, Series A, 7.900% due 12/15/07 2,596,875
- ------------------------------------------------------------------------------------
15,352,564
- ------------------------------------------------------------------------------------
LIFE CARE SYSTEMS -- 2.4%
New York State Dormitory Authority, Revenue
Bonds,
FHA-Insured:
1,350,000 AAA Heritage House Nursing Center, 7.000% due
8/1/31 1,510,312
2,450,000 AA- Iroquois Nursing, 7.050% due 2/1/31 2,691,938
4,800,000 AAA New York Catholic, 5.875% due 2/1/33 4,932,000
3,150,000 AA Wartburg Home Project, 5.800% due 2/1/28 3,185,438
1,185,000 BBB New York State Medical Care Facilities,
Finance Agency Revenue Bonds, Arden Hill,
9.500% due 1/15/24 1,186,683
2,160,000 A Oneida-Hekimer Solid Waste Management
Authority, Solid Waste System Revenue Bonds,
FHA-Insured,
7.200% due 8/1/31 2,316,600
- ------------------------------------------------------------------------------------
15,822,971
- ------------------------------------------------------------------------------------
MISCELLANEOUS -- 0.8%
2,250,000 AAA New York State Dormitory Authority Revenue
Bonds, Leake & Watts Services Inc.,
MBIA-Insured,
6.000% due 7/1/14 2,376,563
New York State Municipal Bond Bank Agency,
Series A, Special Revenue Program:
1,000,000 BBB+ Buffalo, 6.875% due 3/15/06 1,100,000
1,500,000 A+ Rochester, 6.750% due 3/15/11 1,638,750
- ------------------------------------------------------------------------------------
5,115,313
- ------------------------------------------------------------------------------------
POLLUTION CONTROL REVENUE -- 5.2%
3,500,000 AAA Dutchess County Resource Recovery Agency,
Revenue Bonds, Solid Waste Management,
Series A,
FGIC-Insured, 7.500% due 1/1/09 3,889,375
New York State Energy, Research & Development
Authority:
1,000,000 A- Central Hudson Gas & Electric Company,
Series C, 8.375% due 12/1/28(c) 1,120,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
POLLUTION CONTROL REVENUE -- 5.2% (CONTINUED)
$3,000,000 AAA MBIA-Insured, 6.150% due 7/1/26(c) $ 3,138,750
New York State Environmental Facilities
Corporation, PCR, State Water Revolving
Fund, Series A:
8,250,000 AA 7.250% due 6/15/10 9,466,875
1,950,000 AA 7.500% due 6/15/12 2,220,562
5,765,000 Baa1* Resource Bond Recover Revenue Bonds
(Huntington Project), 7.375% due
10/1/99(c) 6,168,550
3,000,000 BBB Solid Waste Disposal Revenue, Occidental
Petroleum Corporation, 5.700% due
9/1/28(c) 2,898,750
2,200,000 BBB Oneida-Herkimer Solid Waste Management
Authority, Solid Waste System, Revenue
Bonds,
6.750% due 4/1/14 2,304,500
Puerto Rico Industrial, Medical & Enviromental
Pollution Control Facilities Finance
Authority, Revenue Bonds, Series A:
2,085,000 Baa1* American Airlines, 8.750% due 12/1/25 2,164,668
535,000 A- St. Lukes Hospital Project, 6.100% due
6/1/01 563,088
- ------------------------------------------------------------------------------------
33,935,118
- ------------------------------------------------------------------------------------
TRANSPORTATION -- 4.9%
Metropolitan Transportation Authority Transit
Facilities Revenue:
3,555,000 BBB+ Commuter Facilities Revenue, Series A,
6.500% due 7/1/24 3,750,525
100,000 AAA New York Special Obligation Bonds,
MBIA-Insured, 6.600% due 1/1/99 107,000
Service Contract:
5,440,000 Baa1* Series N, 7.125% due 7/1/09 6,086,000
4,800,000 Baa1* Series 5, 6.500% due 7/1/09 5,034,000
1,250,000 AAA Monroe County Airport Authority, Airport
Revenue, Greater Rochester International
Airport, MBIA-Insured,
7.250% due 1/1/19(c) 1,376,562
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
TRANSPORTATION -- 4.9% (CONTINUED)
New York State, Highway Authority, Emergency
Services, Construction and Reconstruction,
Series A, FSA-Insured:
$4,230,000 AAA 6.600% due 3/1/01 $ 4,690,013
2,450,000 BBB 5.875% due 4/1/14 2,477,562
8,000,000 BB Port Authority of New York & New Jersey, Delta
Airlines, Series 1R, 6.950% due 6/1/08 8,710,000
- ------------------------------------------------------------------------------------
32,231,662
- ------------------------------------------------------------------------------------
UTILITY -- 5.7%
500,000 BBB Guam Power Authority Revenue, Series A,
6.300% due 10/1/22 506,875
New York State Energy, Research & Development
Authority, Electric Facilities Revenue
Bonds:
Consolidated Edison Company Project,
Series A:
3,500,000 A+ 6.100% due 8/15/20 3,635,625
2,250,000 A+ 7.125% due 3/15/22(c) 2,356,875
4,750,000 A+ 7.125% due 12/1/29(c) 5,355,625
Long Island Lighting Company Project:
4,900,000 BB+ Series A, 7.150% due 12/1/20 5,053,125
3,000,000 BB+ Series B, 7.150% due 2/1/22 3,093,750
1,000,000 BB+ Series D, 6.900% due 8/1/22 1,016,250
New York Electric & Gas Company:
1,500,000 Baa2* Corning National Gas Corporation, Series
A,
8.250% due 12/1/18 1,681,875
3,000,000 BBB MBIA-Insured, 5.950% due 12/1/27 3,018,750
2,660,000 AAA Rochester Gas & Electric Company,
FSA-Insured, 8.375% due 12/1/28 3,015,775
Pollution Control Revenue Bonds, Brooklyn
Union Gas Company:
3,000,000 A 6.952% due 7/1/26 3,348,750
5,000,000 A Series 1, 7.125% due 12/1/20 5,218,600
- ------------------------------------------------------------------------------------
37,301,875
- ------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE
AMOUNT RATING SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
WATER AND SEWER -- 3.4%
$1,495,000 AAA Commonwealth of Puerto Rico, Aquaduct and
Sewer Authority Revenue Bonds (Escrowed to
Maturity with U.S. Government Securities),
10.250% due 7/1/09(a) $ 2,128,506
Buffalo Municipal Water Finance Authority,
Water Systems Revenue:
1,300,000 AAA FSA-Insured, 5.750% due 7/1/19 1,329,250
1,000,000 AAA MBIA-Insured, 5.750% due 7/1/19 1,030,000
2,150,000 AAA Monroe County Water Authority Revenue,
AMBAC-Insured, 7.000% due 8/1/19 2,391,875
New York City Municipal Water Finance
Authority, Water & Sewer System Revenue:
3,270,000 AAA Series A, FSA-Insured, 7.000% due 6/15/15 3,654,225
2,390,000 A Series B, 6.375% due 6/15/22 2,512,488
8,600,000 A* Series F, 6.000% due 6/15/17 8,858,000
- ------------------------------------------------------------------------------------
21,904,344
- ------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100%
(Cost -- $611,569,300)(e) $652,221,560
- ------------------------------------------------------------------------------------
</TABLE>
(a) Pre-Refunded bonds escrowed by U.S. Government Securities and bonds escrowed
to maturity by U.S. Government Securities are considered by Manager to be
triple-A rated even if issuer has not applied for new ratings.
(b) Variable rate obligation payable at par on demand.
(c) Income from this issue is considered a preference item for purposes of
calculating the alternative minimum tax.
(d) Security is in default and has been valued by the Fund's Board of Directors
(See Note 6).
(e) Aggregate cost for Federal income tax purposes is substantially the same.
See pages 20 and 21 for definitions of ratings and certain security
descriptions.
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
BOND RATINGS
All ratings are by Standard & Poor's Corporation ('Standard & Poor's'), except
those identified by an asterisk (*) are rated by Moody's Investors Services
('Moody's'). The definitions of the applicable rating symbols are set forth
below:
Standard & Poor's -- Ratings from 'AA' to 'BBB' may be modified by the
addition of a plus (+) or minus (-) sign to show relative standings within the
major rating categories.
<TABLE>
<S> <C>
AAA -- Bonds rated 'AAA' have the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong.
AA -- Bonds rated 'AA' have a very strong capacity to pay interest and repay
principal and differs from the highest rated issue only in a small degree.
A -- Bonds rated 'A' have a strong capacity to pay interest and repay principal
although they are somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than debt in higher rated
categories.
BBB -- Bonds rated 'BBB' are regarded as having an adequate capacity to pay
interest and repay principal. Whereas they normally exhibit adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for debt in this category than in higher
rated categories.
BB -- Bonds rated 'BB' have less near-term vulnerability to default than other
speculative issues. However, they face major ongoing uncertainties of
exposure to adverse business, financial, or economic conditions which
could lead to inadequate capacity to meet timely interest and principal
payments.
B -- Bonds rated 'B' have a greater vulnerability to default but currently have
the capacity to meet interest payments and principal payments. Adverse
business, financial, or economic conditions will likely impair capacity or
willingness to pay interest and repay principal. The 'B' rating category
is also used for debt subordinated to senior debt that is assigned an
actual or implied 'BB' or 'BB - ' rating.
D -- Bonds rated 'D' are in default, and payment of interest and/or repayment
of principal is in arrears.
Moody's -- Numerical modifiers 1, 2 and 3 may be applied to each generic rating from
'Aa' to 'Baa,' where 1 is the highest and 3 the lowest ranking within its
generic category.
Aaa -- Bonds that are rated 'Aaa' are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to
as 'gilt edge.' Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong position
of such issues.
Aa -- Bonds that are rated 'Aa' are judged to be of high quality by all
standards. Together with the 'Aaa' group they comprise what are generally
known as high grade bonds. They are rated lower than the best bonds
because margins of protection may not be as large in Aaa securities or
fluctuation of protective elements may be of greater amplitude or there
may be other elements present which make the long - term risks appear
somewhat larger than in Aaa securities.
A -- Bonds that are rated 'A' possess many favorable investment attributes and
are to be considered as upper medium grade obligations. Factors giving
security to principal and interest are considered adequate but elements
may be present which suggest a susceptibility to impairment some time in
the future.
Baa -- Bonds that are rated 'Baa' are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest
payments and principal security appear adequate for the present but
certain protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding
investment characteristics and in fact have speculative characteristics as
well.
NR -- Indicates that the bond is not rated by Standard & Poor's or Moody's.
</TABLE>
20
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
SHORT-TERM SECURITIES RATINGS
<TABLE>
<S> <C>
SP-1 -- Standard & Poor's highest rating indicating very strong or strong capacity
to pay principal and interest; those issues determined to possess
overwhelming safety characteristics are denoted with a plus (+) sign.
A-1 -- Standard & Poor's highest commercial paper and variable-rate demand
obligation (VRDO) rating indicating that the degree of safety regarding
timely payment is either overwhelming or very strong; those issues
determined to possess overwhelming safety characteristics are denoted with
a plus (+) sign.
VMIG 1 -- Moody's highest rating for issues having a demand feature -- VRDO.
P-1 -- Moody's highest rating for commercial paper and for VRDO prior to the
advent of the VMIG 1 rating.
</TABLE>
- --------------------------------------------------------------------------------
SECURITY DESCRIPTIONS
<TABLE>
<S> <C>
ABAG -- Association of Bay Area
Governors
AIG -- American International
Guaranty
AMBAC -- American Municipal Bond
Assurance Corporation
BAN -- Bond Anticipation Notes
BIG -- Bond Investors Guaranty
CGIC -- Capital Guaranty Insurance
Company
CONNIE LEE -- College Construction Loan
Insurance Association
COP -- Certificate of Participation
EDA -- Economic Development
Authority
ETM -- Escrowed To Maturity
FLAIRS -- Floating Adjustable Interest
Rate Securities
FGIC -- Financial Guaranty Insurance
Company
FHA -- Federal Housing
Administration
FHLMC -- Federal Home Loan Mortgage
Corporation
FNMA -- Federal National Mortgage
Association
FRTC -- Floating Rate Trust
Certificates
FSA -- Federal Savings Association
GIC -- Guaranteed Investment
Contract
GNMA -- Government National Mortgage
Association
GO -- General Obligation
HDC -- Housing Development
Corporation
HFA -- Housing Finance Authority
HIBI -- Housing Investors Bond
Insurance
IDA -- Industrial Development
Authority
IDB -- Industrial Development Board
IDR -- Industrial Development
Revenue
ISD -- Independent School District
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors
Assurance Corporation
MVRICS -- Municipal Variable Rate
lnverse
Coupon Security
PCR -- Pollution Control Revenue
PSF -- Permanent School Fund
RAN -- Revenue Anticipation Notes
RIBS -- Residual Interest Bonds
RITES -- Residual Interest Tax-Exempt
Securities
TAN -- Tax Anticipation Notes
TECP -- Tax-Exempt Commercial Paper
TOB -- Tender Option Bonds
TRAN -- Tax and Revenue Anticipation
Notes
SONYMA -- State of New York
Mortgage Authority
SYCC -- Structured Yield Curve
Certificate
VA -- Veterans Administration
VRDD -- Variable Rate Daily Demand
VRWE -- Variable Rate Wednesday
Demand
</TABLE>
21
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Cost -- $611,569,300) $652,221,560
Interest receivable 12,894,434
Receivable for securities sold 50,000
- -------------------------------------------------------------------------------------
TOTAL ASSETS 665,165,994
- -------------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 2,435,375
Dividends payable 1,141,165
Investment advisory fees payable 168,341
Distribution fees payable 155,736
Payable for Fund shares purchased 128,290
Administration fees payable 112,227
Payable to bank 31,373
Accrued expenses and other liabilities 215,472
- -------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,387,979
- -------------------------------------------------------------------------------------
TOTAL NET ASSETS $660,778,015
- -------------------------------------------------------------------------------------
NET ASSETS:
Par value of capital shares $ 387,587
Capital paid in excess of par value 625,981,340
Accumulated net realized loss on security transactions (6,243,172)
Net unrealized appreciation of investments 40,652,260
- -------------------------------------------------------------------------------------
TOTAL NET ASSETS $660,778,015
- -------------------------------------------------------------------------------------
SHARES OUTSTANDING:
Class A 28,879,919
- -------------------------------------------------------------------------------------
Class B 9,833,449
- -------------------------------------------------------------------------------------
Class C 45,371
- -------------------------------------------------------------------------------------
NET ASSET VALUE:
Class A (and redemption price) $17.05
- -------------------------------------------------------------------------------------
Class B * $17.05
- -------------------------------------------------------------------------------------
Class C ** $17.04
- -------------------------------------------------------------------------------------
CLASS A MAXIMUM PUBLIC OFFERING PRICE PER SHARE
(net asset value plus 4.17% of net asset value per share) $17.76
- -------------------------------------------------------------------------------------
</TABLE>
* Redemption price is NAV of Class B shares reduced by a 4.50% CDSC if shares
are redeemed less than one year from initial purchase (See Note 3).
** Redemption price is NAV of Class C shares reduced by a 1.00% CDSC if shares
are redeemed within the first year of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 42,680,398
- -------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees (Note 2) 2,218,264
Distribution fees (Note 2) 1,814,039
Administration fees (Note 2) 1,282,479
Shareholder and system servicing fees 210,099
Custody 94,452
Audit and legal 84,255
Shareholder communications 60,000
Pricing service fees 45,000
Registration fees 40,000
Directors' fees 38,000
Other 56,134
- -------------------------------------------------------------------------------------
TOTAL EXPENSES 5,942,722
- -------------------------------------------------------------------------------------
NET INVESTMENT INCOME 36,737,676
- -------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 5):
Realized Loss From Security Transactions
(excluding short-term securities):
Proceeds from sales 149,271,906
Cost of securities sold 150,790,905
- -------------------------------------------------------------------------------------
NET REALIZED LOSS (1,518,999)
- -------------------------------------------------------------------------------------
Change in Net Unrealized Appreciation (Depreciation) of
Investments:
Beginning of year (26,526,050)
End of year 40,652,260
- -------------------------------------------------------------------------------------
INCREASE IN NET UNREALIZED APPRECIATION 67,178,310
- -------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 65,659,311
- -------------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM OPERATIONS $102,396,987
- -------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
1995 1994
- -------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 36,737,676 $ 38,916,928
Net realized loss (1,518,999) (4,724,173)
Increase (decrease) in net unrealized
appreciation 67,178,310 (82,527,978)
- -------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 102,396,987 (48,335,223)
- -------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM (NOTE 3):
Net investment income (36,737,676) (38,916,928)
Overdistribution of net investment income (1,549,658) (850,030)
Net realized gains -- (3,941,996)
- -------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (38,287,334) (43,708,954)
- -------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares 31,483,209 108,275,155
Net asset value of shares issued for reinvestment
of dividends 24,171,005 28,726,429
Cost of shares reacquired (76,919,050) (139,315,884)
- -------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS (21,264,836) (2,314,300)
- -------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 42,844,817 (94,358,477)
NET ASSETS:
Beginning of year 617,933,198 712,291,675
- -------------------------------------------------------------------------------------
END OF YEAR* $660,778,015 $617,933,198
- -------------------------------------------------------------------------------------
* Includes overdistributed net investment income of: -- $ (850,030)
- -------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Smith Barney New York Municipals Fund Inc. ('Fund'), a Maryland corporation,
is registered under the Investment Company Act of 1940, as amended, as a
non-diversified, open-end management investment company.
The significant accounting policies consistently followed by the Fund are:
(a) securities transactions are accounted for on the trade date; (b) securities
are valued at the mean between the quoted bid and asked prices by an independent
pricing service; (c) short-term securities and securities maturing within 60
days are valued at cost plus accreted discount or minus amortized premium, which
approximates market value; (d) gains or losses on the sale of securities are
calculated by using the specific identification method; (e) interest income,
adjusted for amortization of premium and accretion of original issue discount,
is recorded on the accrual basis; market discount is recognized upon the
disposition of the security; (f) direct expenses are charged to the Fund and
each class; management fees and general fund expenses are allocated on the basis
of relative net assets; (g) the Fund intends to comply with the applicable
provisions of the Internal Revenue Code of 1986, as amended, pertaining to
regulated investment companies and to make distributions of taxable income
sufficient to relieve it from substantially all Federal income and excise taxes;
(h) the character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. At December 31, 1995, reclassifications were made to the
Fund's capital accounts to reflect permanent book/tax differences and income and
gains available for distributions under income tax regulations. Accordingly, a
portion of overdistributed net investment income amounting to $2,399,688 has
been reclassified to paid-in capital. Net investment income, net realized gains
and net assets were not affected by this change; (i) certain prior year numbers
have been restated to reflect current year's presentation. Net investment
income, net realized gains, and net assets were not affected by this change; and
(j) estimates and assumptions are required to be made regarding assets,
liabilities and changes in net assets resulting from operations when financial
statements are prepared. Changes in the economic environment, financial markets
and any other parameters used in determining these estimates could cause actual
results to differ from these amounts.
25
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. INVESTMENT ADVISORY AGREEMENT, ADMINISTRATION AGREEMENT
AND OTHER TRANSACTIONS
Smith Barney Mutual Funds Management Inc. ('SBMFM'), a subsidiary of Smith
Barney Holdings Inc. ('SBH'), acts as investment adviser to the Fund. Effective
November 17, 1995, the investment advisory fee declined from 0.35% to 0.30%.
This fee is calculated at an annual rate based on the Fund's average daily net
assets and is paid by the Fund to SBMFM. This fee is calculated daily and paid
monthly.
SBMFM also acts as the Fund's administrator for which the Fund pays a fee
calculated at an annual rate of 0.20% of the average daily net assets up to $500
million and 0.18% of the average daily net assets in excess of $500 million.
This fee is calculated daily and paid monthly.
In addition, The Boston Company Advisors, Inc. ('Boston Advisors'), an
indirect wholly owned subsidiary of Mellon Bank Corporation, acted as sub-
administrator to the Fund. SBMFM paid Boston Advisors a portion of its
administration fee at a rate agreed upon from time to time between SBMFM and
Boston Advisors. As of July 7, 1995, this relationship was terminated.
Smith Barney Inc. ('SB'), another subsidiary of SBH, acts as distributor of
the Fund's shares. For the year ended December 31, 1995, SB received sales
charges of approximately $240,000 on sales of the Fund's Class A shares.
There is a contingent deferred sales charge ('CDSC') of 4.50% on Class B
shares, which applies if redemption occurs less than one year from initial
purchase. This CDSC declines by 0.50% the first year after purchase and
thereafter by 1.00% per year until no CDSC is incurred. Class C shares have a
1.00% CDSC, which applies if redemption occurs within the first year of
purchase. For the year ended December 31, 1995, CDSCs paid to SB were
approximately:
<TABLE>
<CAPTION>
CLASS B CLASS C
- -------------------------------------------------------------------------------------
<S> <C> <C>
CDSCs $402,000 $1,000
- -------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Pursuant to a Distribution Plan, the Fund pays a service fee with respect to
its Class A, B and C shares calculated at the annual rate of 0.15% of the
average daily net assets for each class. In addition, the Fund pays a
distribution fee with respect to its Class B and C shares calculated at the
annual rates of 0.50% and 0.55%, respectively, of the average daily net assets
for each class. For the year ended December 31, 1995, total Distribution Plan
fees incurred were:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Distribution Plan Fees $737,206 $1,072,070 $4,763
- -------------------------------------------------------------------------------------
</TABLE>
All officers and one Director of the Fund are employees of SB.
3. EXEMPT-INTEREST DIVIDENDS AND OTHER DISTRIBUTIONS
The Fund intends to satisfy conditions that will enable interest from
municipal securities, which is exempt from regular Federal income tax, to retain
such tax-exempt status when distributed to the shareholders of the Fund.
Capital gains distributions, if any, are taxable to shareholders, and are
declared and paid at least annually.
4. 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.
5. INVESTMENTS
During the year ended December 31, 1995, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term investments) were as follows:
<TABLE>
- -------------------------------------------------------------------------------------
<S> <C>
Purchases $119,458,374
- -------------------------------------------------------------------------------------
Sales 149,271,906
- -------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At December 31, 1995, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were as follows:
<TABLE>
- -------------------------------------------------------------------------------------
<S> <C>
Gross unrealized appreciation $43,069,943
Gross unrealized depreciation (2,417,683)
- -------------------------------------------------------------------------------------
Net unrealized appreciation $40,652,260
- -------------------------------------------------------------------------------------
</TABLE>
6. SECURITIES VALUED BY THE FUND'S BOARD OF DIRECTORS
One of the Fund's investments is valued at the direction of the Fund's Board
of Directors; this security is currently in default, and has been valued in good
faith, taking into consideration the appropriate economic, financial and other
pertinent available information pertaining to the defaulted securities. The
table below shows the security valued by the Fund's Board of Directors:
<TABLE>
<CAPTION>
VALUE AS OF
ACQUISITION PAR 12/31/95 PERCENTAGE
SECURITY DATE AMOUNT VALUE OF NET ASSETS COST
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Babylon IDA,
Recycling
Facilities
Revenue 10/14/91 $3,795,000 $1,518,000 0.023% $3,720,921
- -------------------------------------------------------------------------------------------
</TABLE>
7. CAPITAL LOSS CARRYFORWARD
At December 31, 1995, the Fund had for Federal tax purposes approximately
$6,243,000 of unused capital loss carryforwards, available to offset future
capital gains. To the extent that these carryforward losses are used to offset
capital gains, it is probable that the gains so offset will not be distributed.
The amount and date of the expiration for each carryforward loss is indicated
below:
<TABLE>
<CAPTION>
12/31/02 12/31/03
- --------------------------------------------------------------------------------------
<S> <C> <C>
Carryforward Amounts $1,542,000 $4,701,000
- --------------------------------------------------------------------------------------
</TABLE>
8. CAPITAL SHARES
As of December 31, 1995, the Fund had 500 million shares of capital stock
authorized with a par value of $0.01 per share. The Fund has the ability to
issue multiple classes of shares. Each share of a class represents an identical
interest
28
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
and has the same rights, except that each class bears certain direct expenses,
including those specifically related to the distribution of its shares.
At December 31, 1995, total paid-in capital amounted to the following for
each class:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Total Paid-in Capital $455,509,399 $170,149,415 $710,113
- -------------------------------------------------------------------------------------
</TABLE>
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994*
-------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
CLASS A
Shares sold 1,043,190 $ 16,929,499 3,478,703 $ 57,671,706
Shares issued on reinvestment 1,142,090 18,793,138 1,402,444 22,818,151
Shares redeemed (3,541,372) (58,379,406) (7,180,131) (117,066,500)
- ----------------------------------------------------------------------------------------------
Net Decrease (1,356,092) $(22,656,769) (2,298,984) $ (36,576,643)
- ----------------------------------------------------------------------------------------------
CLASS B
Shares sold 866,205 $ 14,051,398 3,026,863 $ 50,329,261
Shares issued on reinvestment 324,737 5,345,900 364,474 5,904,778
Shares redeemed (1,118,953) (18,440,591) (1,388,070) (22,249,384)
- ----------------------------------------------------------------------------------------------
Net Increase 71,989 $ 956,707 2,003,267 $ 33,984,655
- ----------------------------------------------------------------------------------------------
CLASS C
Shares sold 31,017 $ 502,312 18,218 $ 274,188
Shares issued on reinvestment 1,937 31,967 227 3,500
Shares redeemed (6,028) (99,053) -- --
- ----------------------------------------------------------------------------------------------
Net Increase 26,926 $ 435,226 18,445 $ 277,688
- ----------------------------------------------------------------------------------------------
</TABLE>
* For Class C shares, transactions are for the period from November 10, 1994
(inception date) to December 31, 1994.
9. SUBSEQUENT EVENT
On February 2, 1996, the net assets of the Fund were merged into the Smith
Barney Muni Funds -- New York Portfolio pursuant to an Agreement and Plan of
Reorganization dated as of October 23, 1995.
29
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OF EACH CLASS OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR:
<TABLE>
<CAPTION>
CLASS A SHARES 1995 1994 1993(1) 1992 1991
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $15.44 $17.68 $17.12 $16.77 $15.94
- ----------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS:
Net investment income 0.96 0.97 1.02 1.12 1.15
Net realized and unrealized gain
(loss) 1.65 (2.12) 0.80 0.39 0.84
- ----------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 2.61 (1.15) 1.82 1.51 1.99
- ----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income (0.95) (0.97) (1.03) (1.12) (1.16)
Overdistribution of net investment
income (0.05) (0.02) -- -- --
Net realized gains -- (0.10) (0.23) (0.03) --
Capital -- -- -- (0.01) --
- ----------------------------------------------------------------------------------------------
Total Distributions (1.00) (1.09) (1.26) (1.16) (1.16)
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $17.05 $15.44 $17.68 $17.12 $16.77
- ----------------------------------------------------------------------------------------------
TOTAL RETURN 17.30% (6.62)% 10.93% 9.36% 12.98%
- ----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000S) $492,341 $466,884 $575,166 $535,514 $469,139
- ----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses 0.78% 0.77% 0.78% 0.67% 0.64%
Net investment income 5.72 5.91 5.83 6.56 7.04
- ----------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE 19% 36% 20% 30% 31%
- ----------------------------------------------------------------------------------------------
</TABLE>
(1) Per share amounts have been calculated using the monthly average shares
method, which more appropriatley presents the per share data for this year
since the use of the undistributed method did not accord with results of
operations.
30
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OF EACH CLASS OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR:
<TABLE>
<CAPTION>
CLASS B SHARES 1995 1994 1993(1) 1992(2)
- ----------------------------------------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF YEAR $15.44 $17.68 $17.12 $16.93
- ----------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS:
Net investment income 0.87 0.89 0.94 0.17
Net realized and unrealized gain (loss) 1.65 (2.13) 0.80 0.20
- ----------------------------------------------------------------------------------------------
Total Income (Loss) From Operations 2.52 (1.24) 1.74 0.37
- ----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income (0.87) (0.88) (0.95) (0.15)
Overdistribution of net investment
income (0.04) (0.02) -- --
Net realized gains -- (0.10) (0.23) (0.03)
Capital -- -- -- (0.00)*
- ----------------------------------------------------------------------------------------------
Total Distributions (0.91) (1.00) (1.18) (0.18)
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $17.05 $15.44 $17.68 $17.12
- ----------------------------------------------------------------------------------------------
TOTAL RETURN 16.67% (7.17)% 10.33% 2.23%`DD'
- ----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000S) $167,664 $150,765 $137,126 $18,125
- ----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.29% 1.30% 1.31% 1.30%`D'
Net investment income 5.21 5.39 5.31 5.94`D'
- ----------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE 19% 36% 20% 30%
- ----------------------------------------------------------------------------------------------
</TABLE>
(1) Per share amounts have been calculated using the monthly average shares
method, which more appropriatley presents the per share data for this year
since the use of the undistributed method did not accord with results of
operations.
(2) For the period from November 6, 1992 (inception date) to December 31, 1992.
* Amount represents less than $0.01.
`DD' Total return is not annualized, as it may not be representative of the
total return for the year.
`D' Annualized.
31
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OF EACH CLASS OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR:
<TABLE>
<CAPTION>
CLASS C SHARES 1995 1994(1)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $15.44 $15.19
- -----------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS:
Net investment income 0.90 0.12
Net realized and unrealized gain 1.60 0.35#
- -----------------------------------------------------------------------------------------
Total Income (Loss) From Operations 2.50 0.47
- -----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income (0.86) (0.12)
Overdistribution of net investment income (0.04) (0.00)*
Net realized gains -- (0.10)
- -----------------------------------------------------------------------------------------
Total Distributions (0.90) (0.22)
- -----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $17.04 $15.44
- -----------------------------------------------------------------------------------------
TOTAL RETURN 16.59% 3.08%`DD'
- -----------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000S) $773 $285
- -----------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.34% 1.34%`D'
Net investment income 5.15 5.35`D'
- -----------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE 19% 36%
- -----------------------------------------------------------------------------------------
</TABLE>
(1) For the period from November 10, 1994 (inception date) to December 31, 1994.
# Includes the net per share effect of shareholder sales and redemptions
activity during the period, most of which occurred at a net asset value less
than the beginning of the period.
* Amount represents less than $0.01.
`DD' Total return is not annualized, as it may not be representative of the
total return for the year.
`D' Annualized.
32
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
SMITH BARNEY NEW YORK MUNICIPALS FUND INC.:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Smith Barney New York Municipals Fund Inc. as of
December 31, 1995, and the related statement of operations, statement of changes
in net assets, and financial highlights for the year then ended. These financial
statements and 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 audit. The statement of changes
in net assets for the year ended December 31, 1994 and the financial highlights
for each of the years in the four-year period then ended, were audited by other
auditors whose report thereon, dated February 8, 1995, expressed an unqualified
opinion on that statement of changes in net assets and those financial
highlights.
We conducted our audit 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, 1995, by
correspondence with the custodian. As to securities purchased and sold but not
received or delivered, we performed other appropriate auditing procedures. 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 audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Smith Barney New York
Municipals Fund Inc. as of December 31, 1995, and the results of its operations,
changes in its net assets and financial highlights for the year then ended, in
conformity with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
New York, New York
February 15, 1996
33
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
Change in Independent Auditor: On October 19, 1994, based upon the
recommendation of the Audit Committee of the Fund, the Board of Directors
determined not to retain Coopers & Lybrand, L.L.P. ('Coopers & Lybrand') as the
Fund's independent auditor and voted to appoint KPMG Peat Marwick LLP. During
the Fund's two most recent fiscal years, Coopers & Lybrand's audit reports
contained no adverse opinion or disclaimer of opinion; nor were the reports
qualified or modified as to uncertainty, audit scope, or accounting principles.
Further, during this same period there were no disagreements with Coopers &
Lybrand on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements, if not resolved
to the satisfaction of Coopers & Lybrand, would have caused it to make
references to the subject matter of such disagreements in connection with its
audit reports. The Fund has requested Coopers & Lybrand to provide a letter to
the Securities & Exchange Commission stating whether Coopers & Lybrand agrees
with the foregoing statements, and to provide the Fund with a copy of such
letter. A copy of this letter is available upon request by calling the Fund at
(212) 723-9218.
- --------------------------------------------------------------------------------
TAX INFORMATION (UNAUDITED)
95.95% of the dividends paid by the Fund from net investment income for the
year ended December 31, 1995, are tax-exempt for regular Federal income tax
purposes.
34
<PAGE>
<PAGE>
Smith Barney New York Municipals Fund Inc.
- --------------------------------------------------------------------------------
ADDITIONAL SHAREHOLDER INFORMATION
A Special Meeting of Shareholders ('Meeting') of the Fund was scheduled to
be held on November 14, 1995 to consider the approval or disapproval of a
proposal submitted by the Board of Directors pursuant to which Smith Barney Muni
Funds on behalf of its New York Portfolio would acquire all or substantially all
of the assets of the Fund. The Meeting was adjourned to January 5, 1996 because
insufficient votes were received to constitute a quorum for the conduct of
business.
On January 5, 1996, the shareholders' meeting was reconvened and the
results were as follows:
<TABLE>
<CAPTION>
% OF
NUMBER OF OUTSTANDING
SHARES SHARES VOTED
- --------------------------------------------------------------------------------------
<S> <C> <C>
For 20,540,922.729 89.97%
Against 554,104.844 2.43
Abstaining 1,735,691.722 7.60
- --------------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
<PAGE>
SMITH BARNEY
NEW YORK
MUNICIPALS FUND INC.
[LOGO]
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, Chairman
Cornelius C. Rose
OFFICERS
Heath B. McLendon
Chief Executive Officer
Jessica Bibliowicz
President
Lewis E. Daidone
Senior Vice President
and Treasurer
Lawrence T. McDermott
Vice President and
Investment Officer
Karen L. Mahoney-Malcomson
Investment Officer
Thomas M. Reynolds
Controller
Christina T. Sydor
Secretary
INVESTMENT ADVISER
Smith Barney Mutual Funds
Management Inc.
DISTRIBUTOR
Smith Barney Inc.
CUSTODIAN
PNC Bank
SHAREHOLDER
SERVICING AGENT
First Data Investor Services Group, Inc.
P.O. Box 9134
Boston, MA 02205-9134
This report is submitted for the general information of the shareholders of
Smith Barney New York Municipals Fund Inc. It is not authorized for distribution
to prospective investors unless accompanied or preceded by a current Prospectus
for the Fund, which contains information concerning the Fund's investment
policies and expenses as well as other pertinent information.
SMITH BARNEY NEW YORK
MUNICIPALS FUND INC.
388 Greenwich Street
New York, New York 10013
FD0319 2/96
STATEMENT OF DIFFERENCES
The dagger symbol shall be expressed as `D'
The double dagger symbol shall be expressed as `DD'
