SMITH BARNEY SHEARSON NEW JERSEY MUNICIPALS FUND INC
N-30B-2, 1994-05-27
Previous: OPPENHEIMER GLOBAL BIO TECH FUND, NSAR-A/A, 1994-05-27
Next: DREYFUS NEW JERSEY MUNICIPAL BOND FUND INC, 497, 1994-05-27






1 9 9 4 
ANNUAL 
REPORT 

DESCRIPTION OF ART WORK ON REPORT COVER 

Small box above fund name showing a highway going across New Jersey's 
homes and trees. 

Smith Barney Shearson 

NEW JERSEY MUNICIPALS FUND INC. 

MARCH 31, 1994 

SMITH BARNEY SHEARSON


NEW JERSEY MUNICIPALS FUND INC.

DEAR SHAREHOLDER: 

We are pleased to provide you with the Annual Report for Smith Barney 
Shearson New Jersey Municipals Fund Inc. for the fiscal year ended March 
31, 1994. In this report we will provide you with a review of the Fund's 
performance, the market environment and portfolio activities during the 
past twelve months. In addition, you will notice that we have taken this 
opportunity to simplify the report by separating the historical perfor- 
mance information for A and B classes of shares into two distinct sec- 
tions. Our goal is to give you clear, concise information that makes it 
easier for you to follow your investment. We have done this because Smith 
Barney Shearson believes that an informed investor and an experienced Fi- 
nancial Consultant form the most productive partnerships. 

             THE MUNICIPAL MARKET AND THE ECONOMIC ENVIRONMENT 

The economy remained weak during the first six months of the Fund's fiscal 
year and the Federal Reserve Board maintained an accommodative policy to 
keep interest rates low. Consumers took advantage of low rates by refi- 
nancing mortgages in record number, which increased their disposable in- 
come. The consumer drives two-thirds of this country's economic growth, so 
this increase in disposable income was quite significant and in fact was 
one of the major factors igniting the strong economic growth of the fourth 
quarter of 1993 and first quarter of 1994. The growth during the last two 
quarters of the fiscal year was so strong that the Federal Reserve Board 
viewed it as a possible portent of inflation. In a preemptive move, the 
Fed attempted to rein in the economy's growth by increasing the Federal 
funds rate (an important indicator of the general direction of interest 
rates) to 3.75% from 3% in three successive moves between February 4 and 
April 18, 1994; another increase to 4% is likely in the months ahead. 

These increases in short-term rates were intended to control possible in- 
flationary pressures and keep long-term interest rates low. However, at 
the time there were an enormous amount of investments in the marketplace 
predicated on short-term interest rates staying low. As short-term rates 
rose, investors met liquidity demands by selling long-term U.S. Treasuries 
which caused an unintended and unwarranted rise in long-term interest 
rates. Interest rates on municipals followed suit as dealers sold their 
municipal inventory in order to meet the selling demands of Treasury secu- 
rity investors. This uncertain investment environment caused many inves- 
tors to head for the higher ground of shorter maturities which are gener- 
ally less volatile than longer-term issues, and this also contributed to 
higher interest rates on tax-exempt securities. 

                              DIVIDEND POLICY 

Although not explicitly stated in the prospectus, the Fund's policy is to 
pay a level monthly dividend based on our projections for the municipal 
bond market and the general direction of interest rates. This policy has 
no appreciable affect on the Fund's investment strategies or net asset 
value per share since it is guided by market conditions. It means that we 
do not invest in more speculative securities that may undermine the Fund's 
net asset value per share in order to maintain an unrealistically high 
dividend policy. We continually monitor both the market and the Fund's in- 
come stream to see that our dividend projections are realistic. 

Like the national economy, New Jersey's economy is also doing better since 
so much of it relies on consumer spending. Statistical evidence confirms 
this as does our own anecdotal evidence. In recent months we've noticed an 
increasing ratio of cars to parking spots at many of New Jersey's shopping 
malls. Although disposable income is higher, we don't see much evidence of 
wage growth. Governor Whitman, elected on a platform of cutting government 
and spending, followed through on her campaign promise and twice has made 
modest tax cuts but we believe that these are unlikely to provide an in- 
flationary boost to the economy. 

New Jersey taxes remain high, however, making New Jersey tax-exempt paper 
quite expensive relative to the general municipal market. We think that 
this situation is likely to continue, primarily because the supply of 
high-quality tax-exempt issues is almost certain to decrease as higher 
interest rates make it far less attractive for municipalities to issue new 
bonds. In addition, the scarcity of bonds is being compounded by taxpayer 
revolt that has manifested itself in defeated school budgets and bond 
referendums. 

                            PORTFOLIO STRATEGY 

As investment managers, our goal is to provide investors with tax-free in- 
come and stability of principal through investments in securities exempt 
from Federal and New Jersey state income taxes. We are focusing on high- 
quality, longer-term securities. Our belief is that lower-rated issues 
simply don't  adequately compensate the investor for the additional risk 
they are taking, even in an improving economic environment. We generally 
prefer to invest in general obligations bonds and essential service reve- 
nue bonds backed by water, sewer, and utility projects because people tend 
to pay these bills on a timely basis. We are hesitant to invest in health 
care bonds until the Clinton health care package is finalized. 

As interest rates rose during the fourth quarter of 1993 and first quarter 
of 1994, we shortened the Fund's average maturity to approximately 18.5 
years to avoid some of the volatility of the long-term bond market. More 
recently, believing that the worst of the interest rate rise is behind us, 
we have begun extending the average maturity of the Fund to the 20- to 21- 
year range to try and capture a little bit more yield. This higher yield 
is important to maintaining the Fund's income stream which was somewhat 
reduced by the bond calls and refinancings of the past year and will con- 
tinue to be challenged by bond calls during the rest of 1994. 

In closing, we welcome new investors to the Fund and thank longer term in- 
vestors for their continued trust. As we have since the Fund's inception 
in 1988, we will strive to provide you with investment performance that 
best serves the interests of the Fund's investors. 

Sincerely, 

Heath B. McLendon 
Chairman of the Board 

Lawrence T. McDermott 
Vice President and 
Investment Officer 

May 16, 1994 

                 HISTORICAL PERFORMANCE -- CLASS A SHARES 

<TABLE>
<CAPTION>
                      Net Asset Value 
Year Ended                                  Capital       Dividends      Total 
March 31           Beginning     Ending     Gains Paid+   Paid+          
Return* 
<S>                <C>           <C>        <C>           <C>            <C>  
4/22/88 - 3/31/89  $11.40         $11.67    $0.01         $0.82            
9.84% 
1990               $11.67         $11.92    $0.03         $0.82            
9.62% 
1991               $11.92         $12.17    $0.05         $0.84            
9.89% 
1992               $12.17         $12.44    $0.13         $0.81           
10.22% 
1993               $12.44         $13.16    $0.14         $0.76           
13.49% 
1994               $13.16         $12.55    $0.15         $0.70            
1.66% 
Total                                       $0.51         $4.75 
Cumulative Total Return -- (4/22/88 through 3/31/94)                      
68.25% 
<FN>
 * Figures assume reinvestment of all dividends and capital gains distri- 
   butions at net asset value and do not assume deduction of the front-end 
   sales charge (maximum 4.5%). 
 + The above distributions are reported in accordance with generally ac- 
   cepted accounting principles and may differ from the figures reported 
   on Form 1099 due to timing differences. 

</TABLE>

THE FUND'S POLICY IS TO DISTRIBUTE DIVIDENDS MONTHLY 
AND CAPITAL GAINS, IF ANY, ANNUALLY. 



              AVERAGE ANNUAL TOTAL RETURN** -- CLASS A SHARES 

<TABLE>
<CAPTION>
                            Without Sales Charge                With Sales 
Charge*** 

                         With Fee           Without          With Fee          
Without 
                          Waiver          Fee Waiver          Waiver         
Fee Waiver 
                        and Expense       and Expense      and Expense       
and Expense 
                       Reimbursement     Reimbursement    Reimbursement     
Reimbursement 
<S>                    <C>               <C>              <C>               
<C>
Year Ended 3/31/94        1.66%              1.61%           (2.91)%           
(2.96)% 
Five Years Ended 
 3/31/94                  8.90%              8.65%            7.90%             
7.65% 
Inception 4/22/88 
 through 3/31/94          9.16%              8.82%            8.31%             
7.98% 
<FN>
 ** All average annual total return figures shown reflect reinvestment of 
    dividends and capital gains at net asset value. The Fund commenced op- 
    erations April 22, 1988. The Fund waived investment advisory, sub- 
    investment advisory and administration fees and reimbursed expenses 
    from April 1988 to March 1994. A shareholder's actual return for peri- 
    ods during which waivers and reimbursements were in effect would be 
    the higher of the two numbers shown. 

*** Average annual total return figures shown assume the deduction of the 
    maximum 4.5% sales charge. NOTE: On November 6, 1992, existing shares 
    of the Fund were designated Class A shares. Class A shares are subject 
    to a maximum 4.5% front-end sales charge and an annual service fee of 
    0.15% of the value of the average daily net assets attributable to 
    that class. The Fund's annual rates of return would have been lower 
    had service fees been in effect prior to November 6, 1992. 
</TABLE>


             GROWTH OF $10,000 INVESTED IN CLASS A SHARES OF 
          SMITH BARNEY SHEARSON NEW JERSEY MUNICIPALS FUND INC.+ 

DESCRIPTION OF MOUNTAIN CHART IN SHEARSON COVERS (CLASS A) 

A line graph depicting the total growth (including reinvestment of divi- 
dends and capital gains) of a hypothetical investment of $10,000 in New 
Jersey Municipals Fund's Class A shares on April 22, 1988 through March 
31, 1994 as compared with the growth of a $10,000 investment in the Lipper 
New Jersey Peer Group Average and Lehman Municipal Bond Index. The plot 
points used to draw the line graph were as follows: 


<TABLE>
<CAPTION>
                                                         GROWTH OF $10,000 
                                       GROWTH OF $10,000 INVESTMENT IN THE 
                   GROWTH OF $10,000    INVESTED IN THE   LEHMAN BROTHERS 
                  INVESTED IN CLASS A  LIPPER NEW JERSEY     MUNICIPAL 
      MONTH ENDED SHARES OF THE FUND  PEER GROUP AVERAGE     BOND INDEX 
      <S>         <C>                 <C>                <C>
      04/22/88    $9,550              -                  - 
      04/88       $9,600              $10,000            $10,000 
      05/88       $9,676              $10,002            $9,971 
      06/88       $9,864              $10,212            $10,117 
      09/88       $10,183             $10,537            $10,377 
      12/88       $10,475             $10,781            $10,570 
      03/89       $10,490             $10,847            $10,640 
      06/89       $11,102             $11,520            $11,270 
      09/89       $11,101             $11,451            $11,277 
      12/89       $11,446             $11,858            $11,710 
      03/90       $11,498             $11,873            $11,762 
      06/90       $11,799             $12,164            $12,037 
      09/90       $11,793             $12,115            $12,044 
      12/90       $12,364             $12,697            $12,564 
      03/91       $12,635             $12,985            $12,848 
      06/91       $12,876             $13,264            $13,122 
      09/91       $13,455             $13,814            $13,632 
      12/91       $13,876             $14,242            $14,089 
      03/92       $13,926             $14,268            $14,131 
      06/92       $14,501             $14,850            $14,667 
      09/92       $14,892             $15,196            $15,057 
      12/92       $15,184             $15,504            $15,331 
      03/93       $15,805             $16,098            $15,900 
      06/93       $16,366             $16,694            $16,421 
      09/93       $16,949             $17,275            $16,976 
      12/93       $17,156             $17,444            $17,214 
      03/94       $16,068             $16,389            $16,269 

<FN>
+ Illustration of $10,000 invested in Class A shares on April 22, 1988 as- 
  suming deduction of the maximum 4.5% sales charge at the time of invest- 
  ment and reinvestment of dividends and capital gains at net asset value 
  through March 31, 1994. 
</TABLE>

  LIPPER NEW JERSEY PEER GROUP AVERAGE -- The Lipper New Jersey Peer Group 
  Average is composed of an average of the Fund's peer group of mutual 
  funds (34 as of March 31, 1994) investing in New Jersey tax-exempt 
  bonds. 

  LEHMAN MUNICIPAL BOND INDEX -- The Lehman Municipal Bond Index is an un- 
  managed, broad-based index which includes about 8,000 tax-free bonds and 
  reflects approximately $300 billion of market capitalization. 

  Index information is available at month-end only; therefore the closest 
  month-end to inception date of the Fund has been used. 

  NOTE: All figures cited here and on the following pages represent past 
  performance of the Fund and do not guarantee future results of Class A 
  shares. 

                 HISTORICAL PERFORMANCE -- CLASS B SHARES 

<TABLE>
<CAPTION>
                           Net Asset Value 

Year Ended                                        Capital           Dividends        
Total 
March 31              Beginning         Ending    Gains Paid+       Paid+            
Return* 
<S>                   <C>               <C>       <C>               <C>             
<C>                        
11/6/92 - 3/31/93     $12.75            $13.16    $0.14             $0.28            
6.60% 
1994                  $13.16            $12.55    $0.15             $0.63            
1.15% 
Total                                             $0.29             $0.91 
 Cumulative Total Return -- (11/6/92 through 3/31/94)                                
7.82% 
<FN>
 * Figures assume reinvestment of all dividends and capital gains distri- 
   butions at net asset value and do not assume deduction of the contin- 
   gent deferred sales charge ("CDSC"). 

 + The above distributions are reported in accordance with generally ac- 
   cepted accounting principles and may differ from the figures reported 
   on Form 1099 due to timing differences. 
</TABLE>

THE FUND'S POLICY IS TO DISTRIBUTE DIVIDENDS MONTHLY 
AND CAPITAL GAINS, IF ANY, ANNUALLY. 



              AVERAGE ANNUAL TOTAL RETURN** -- CLASS B SHARES 

<TABLE>
<CAPTION>
                                Without CDSC                        With 
CDSC*** 

                         With Fee           Without          With Fee          
Without 
                          Waiver          Fee Waiver          Waiver         
Fee Waiver 
                        and Expense       and Expense      and Expense       
and Expense 
                       Reimbursement     Reimbursement    Reimbursement     
Reimbursement 
<S>                    <C>               <C>              <C>               
<C>   
Year Ended 3/31/94        1.15%              1.09%          (3.14)%            
(3.19)% 
Inception 11/6/92 
through 3/31/94           5.53%              5.44%           2.76%              
2.67% 
<FN>
 ** All average annual total return figures shown reflect reinvestment of 
    dividends and capital gains at net asset value. The Fund waived fees 
    and reimbursed expenses from November 6, 1992 to the present. A share- 
    holder's actual return for periods during which waivers and reimburse- 
    ments were in effect would be the higher of the two numbers shown. 

*** Average annual total return figures shown assume the deduction of the 
    maximum applicable CDSC which is described in the prospectus. 
</TABLE>

    NOTE: The Fund began offering Class B shares on November 6, 1992. 
    Class B shares are subject to a maximum 4.5% CDSC and an annual ser-
    vice and distribution fees of 0.15% and 0.50%, respectively, of the 
    value of the average daily net assets attributable to that class. 


              GROWTH OF $10,000 INVESTED IN CLASS B SHARES OF 
          SMITH BARNEY SHEARSON NEW JERSEY MUNICIPALS FUND INC.+ 

DESCRIPTION OF MOUNTAIN CHART IN SHEARSON COVERS (CLASS B) 

A line graph depicting the total growth (including reinvestment of divi- 
dends and capital gains) of a hypothetical investment of $10,000 in New 
Jersey Municipals Fund's Class B shares on November 6, 1992 through March 
31, 1994 as compared with the growth of a $10,000 investment in Lipper New 
Jersey Peer Group Average and Lehman Municipal Bond Index. The plot points 
used to draw the line graph were as follows: 


<TABLE>
<CAPTION>
                                        GROWTH OF $10,000 GROWTH OF $10,000 
                    GROWTH OF $10,000    INVESTED IN THE  INVESTMENT IN THE 
                   INVESTED IN CLASS B  LIPPER NEW JERSEY  LEHMAN MUNICIPAL 
     MONTH ENDED   SHARES OF THE FUND  PEER GROUP AVERAGE     BOND INDEX 
     <S>           <C>                 <C>                <C>
     10/31/92      -                   $10,000            $10,000 
     11/06/92      $10,000             -                  - 
     11/92         $10,140             $10,267            $10,179 
     12/92         $10,255             $10,400            $10,283 
     03/93         $10,660             $10,799            $10,665 
     06/93         $11,025             $11,199            $11,014 
     09/93         $11,404             $11,588            $11,386 
     12/93         $11,529             $11,701            $11,546 
     03/94         $10,389             $10,994            $10,913 
<FN>
  + Illustration of $10,000 invested in Class B shares on November 6, 1992 
    assuming deduction of the maximum CDSC at the time of redemption and 
    reinvestment of dividends and capital gains at net asset value through 
    March 31, 1994. 

 ++ Value does not assume deduction of applicable CDSC. 

+++ Value assumes deduction of applicable CDSC (assuming redemption on 
    March 31, 1994). 
</TABLE>

LIPPER NEW JERSEY PEER GROUP AVERAGE - The Lipper New Jersey Peer Group 
Average is composed of an average of the Fund's peer group of mutual funds 
(34 as of March 31, 1994) investing in New Jersey tax-exempt bonds. 

LEHMAN MUNICIPAL BOND INDEX - The Lehman Municipal Bond Index is an unman- 
aged, broad-based index which includes about 8,000 tax-free bonds and re- 
flects approximately $300 billion of market capitalization. 

Index information is available at month-end only; therefore, the closest 
month-end to inception date of the Fund has been used. 

NOTE: All figures cited here and on the other pages represent past per- 
formance of the Fund and do not guarantee future results of Class B 
shares. 


                     PORTFOLIO HIGHLIGHTS (UNAUDITED) 

                              MARCH 31, 1994 

INDUSTRY BREAKDOWN 

DESCRIPTION OF PIE CHARTS IN SHAREHOLDER REPORT 

Pie chart depicting the allocation of the New Jersey Municipals Fund's in- 
vestment securities held at March 31, 1994 by industry classification. The 
pie is broken in pieces representing industries in the following percent- 
ages: 


<TABLE>
<CAPTION>
         INDUSTRY                                            PERCENTAGE 

         <S>                                                  <C>
         UTILITY REVENUE                                      16.2% 
         TRANSPORTATION                                       3.5% 
         HOSPITAL                                             17.2% 
         OTHER                                                16.9% 
         POLLUTION CONTROL REVENUE                            7.9% 
         HOUSING                                              4.9% 
         EDUCATION                                            8.5% 
         SHORT-TERM MUNICIPAL BONDS AND NOTES AND             0.7% 
           NET OTHER ASSETS AND LIABILITIES 
         GENERAL OBLIGATIONS                                  24.2% 
</TABLE>

                 SUMMARY OF MUNICIPAL BONDS AND SHORT-TERM 
                TAX-EXEMPT INVESTMENTS BY COMBINED RATINGS 


<TABLE>
<CAPTION>
                                     STANDARD &   PERCENTAGE OF 
                   MOODY'S             POOR'S     MARKET VALUE 
                   <S>         <C>     <C>        <C>
                     Aaa       or       AAA            54% 
                      Aa                AA             14 
                      A                  A             13 
                     Baa                BBB            10 
                      NR                NR              9 
                                                      100% 
</TABLE>

AVERAGE MATURITY  19.7 years 



                        PORTFOLIO OF INVESTMENTS 
                              MARCH 31, 1994 

                      KEY TO INSURANCE ABBREVIATIONS 
             AMBAC -- American Municipal Bond Assurance Corporation 
             BIGI   -- Bond Investors Guaranty Insurance 
             FGIC   -- Federal Guaranty Insurance Corporation 
             FHA   -- Federal Housing Administration 
             FSA   -- Federal Security Assurance 
             MBIA  -- Municipal Bond Investors Assurance 
<TABLE>
<CAPTION>
                                                       RATINGS 
                                                     (UNAUDITED) 
                                                                      MARKET 
VALUE 
FACE VALUE                                        MOODY'S    S&P        (NOTE 
1) 
<S>                                        <C>             <C>       <C>
MUNICIPAL BONDS AND NOTES -- 98.5% 
             NEW JERSEY -- 98.2% 
             Atlantic County, New Jersey, Cer- 
             tificates of Participation, Pub- 
             lic Facilities Lease Agreement, 
             (FGIC Insured), 
$2,500,000    7.400% due 3/1/2009                  Aaa      AAA      $  
2,828,125 

             Atlantic County, New Jersey, Im- 
             provement Authority Revenue, Lux- 
             ury Tax Revenue, Convention Cen- 
             ter, (MBIA Insured), 
  375,000     7.400% due 7/1/2016                  Aaa      AAA           
441,563 

             Atlantic County, New Jersey, 
             Utilities Authority Revenue, 
             Solid Waste Revenue, 
  950,000     7.125% due 3/1/2016                  Baa      NR            
955,938 

             Avalon Boro, New Jersey, Revenue, 
             (MBIA Insured), 
  550,000     5.400% due 7/1/2013                  Aaa      AAA           
501,188 

             Beachwood, New Jersey, Sewer Au- 
             thority Revenue, Junior Lien, 
  700,000     6.500% due 12/1/2012                 Baa1     NR            
702,625 

             Belvedere, New Jersey, General 
             Obligation Refunding Bonds, 
             (AMBAC Insured), 
  665,000     7.300% due 12/1/2014                 Aaa      AAA           
729,006 

             Bordentown, New Jersey, Sewerage 
             Authority Revenue, Series C, 
             (MBIA Insured), 
1,000,000     6.900% due 12/1/2016                 Aaa      AAA         
1,076,250 

             Camden County, New Jersey, Im- 
             provement Authority Revenue, Se- 
             ries B, (AMBAC Insured), 
1,000,000     5.250% due 12/1/2018                 Aaa      AAA           
881,250 

             Cape May County, New Jersey, 
             Bridge Commission, County Guaran- 
             teed Revenue, 
  385,000     6.700% due 6/1/2002                  A1       A             
399,919 

             Delaware River Junction Toll 
             Bridge Commission Refunding 
             Bonds, (FGIC Insured), 
  200,000     6.250% due 7/1/2012                  Aaa      AAA           
202,250 

             Delaware River Port Authority, 
             Pennsylvania and New Jersey, Del- 
             aware River Bridge Revenue Re- 
             funding, (AMBAC Insured), 
  500,000     7.375% due 1/1/2007                  Aaa      AAA           
545,625 

             Dover, New Jersey, Board of Edu- 
             cation, Certificates of Partici- 
             pation, (FGIC Insured), 
  550,000     6.600% due 6/1/2011                  Aaa      AAA           
569,938 

             Essex County, New Jersey, General 
             Obligation Bonds, (FSA Insured), 
  175,000     6.500% due 12/1/2011                 Aaa      AAA           
180,688 

             Essex County, New Jersey, Im- 
             provement Authority, (FGIC In- 
             sured), 
3,000,000     5.200% due 12/1/2024                 Aaa      AAA         
2,583,750 

             Essex County, New Jersey, Im- 
             provement Authority, Lease- 
             Newark, 
  650,000     6.600% due 4/1/2014                  Baa1     BBB+          
628,875 

             Evesham Township, New Jersey, 
             Board of Education, Certificates 
             of Participation, 
             (FGIC Insured), 
  750,000     6.875% due 9/1/2011                  Aaa      AAA           
810,000 

             Glassboro, New Jersey, School 
             District, Refundable Bonds, 
1,510,000     5.000% due 5/1/2017                  NR       AA          
1,272,175 

             Gloucester County, New Jersey, 
             Utilities Sewerage System, Series 
             91A, 
1,000,000     6.500% due 1/1/2021                  A1       AA-         
1,047,500 

             Hudson County, New Jersey, Cer- 
             tificates of Participation, Cor- 
             rectional Facilities, 
             (MBIA Insured), 
  425,000     6.600% due 12/1/2021                 Aaa      AAA           
443,594 

             Hudson County, New Jersey,
             General Obligation Bonds,
             (FGIC Insured), 
  200,000     6.550% due 7/1/2010                  Aaa      AAA           
211,250 

             Hudson County, New Jersey, Im- 
             provement Authority, Solid Waste 
             System Revenue, 
3,750,000     7.100% due 1/1/2020                  NR       BBB-        
3,806,250 

             Hudson County, New Jersey, Im- 
             provement Authority, Solid Waste 
             System Revenue, 
             Series A, 
1,000,000     6.100% due 7/1/2020                  NR       A+            
942,500 

             Jersey City, New Jersey, Sewerage 
             Authority, (AMBAC Insured), 
1,700,000     6.250% due 1/1/2014                  Aaa      AAA         
1,723,375 

             Jersey City, New Jersey, Water 
             Utility, General Obligation 
             Bonds, (AMBAC Insured), 
  530,000     7.500% due 10/1/2003                 Aaa      AAA           
579,025 

             Keansburg, New Jersey, Board of 
             Education, Certificates of Par- 
             ticipation, 
  500,000     8.000% due 11/1/2014                 NR       BBB-          
569,375 

             Keansburg, New Jersey, Municipal 
             Utilities Authority Revenue, 
             (FGIC Insured), 
1,500,000     6.000% due 12/1/2019                 Aaa      AAA         
1,462,500 

             Kearney, New Jersey, Municipal 
             Utilities Authority Revenue, 
             (FGIC Insured), 
1,385,000     7.300% due 11/15/2018                Aaa      AAA         
1,608,331 

             Lower Township, New Jersey, Mu- 
             nicipal Utilities Authority, 
             (MBIA Insured), 
1,500,000     6.125% due 12/1/2013                 Aaa      AAA         
1,496,250 

             Lumberton Township, New Jersey, 
             School District, Certificates of 
             Participation, (Fiscal Funding 
             New Jersey, Inc.), (MBIA In- 
             sured), 
1,000,000     6.100% due 10/1/2013                 Aaa      AAA           
993,750 

             Manchester Township, New Jersey, 
             (MBIA Insured), 
1,010,000     5.350% due 12/15/2009                Aaa      AAA           
927,938 

             Mercer County, New Jersey, Im- 
             provement Authority Revenue, Re- 
             funding Bonds, Solid Waste, Se- 
             ries A, (FGIC Insured), 
  200,000     6.700% due 4/1/2013                  Aaa      AAA           
210,500 

             Middlesex County, New Jersey, 
             Pollution Control Authority Fi- 
             nancing Revenue, 
             (Amerada Hess): 
1,000,000     7.875% due 6/1/2022++                NR       NR          
1,017,500 
2,000,000     6.875% due 12/1/2022                 NR       NR          
2,062,500 

             Monmouth County, New Jersey, Sew- 
             erage Facilities, Improvement Au- 
             thority Revenue, (Wall and Key- 
             port Projects): 
             (BIGI Insured): 
1,500,000     5.250% due 8/1/2012                  Aaa      AAA         
1,361,250 
  500,000     6.750% due 2/1/2013                  Aaa      AAA           
552,500 
  670,000     7.900% due 7/15/2013                 Aaa      AAA           
747,050 
             (MBIA Insured), 
1,250,000     5.550% due 2/15/2018                 Aaa      AAA         
1,150,000 

             Monroe Township, New Jersey, Mu- 
             nicipal Utilities Authority, 
             Gloucester County Revenue, (AMBAC 
             Insured), 
  500,000     6.650% due 7/1/2011                  Aaa      AAA           
525,000 

             Morris Township, New Jersey, Gen- 
             eral Obligation Notes: 
  550,000     6.550% due 7/1/2009                  Aa       Aa            
588,500 
  550,000     6.550% due 7/1/2010                  Aa       Aa            
587,125 
  500,000     6.550% due 7/1/2011                  Aa       Aa            
531,875 

             Morristown, New Jersey, Revenue 
             Refunding, General Obligation 
             Bonds, 
1,200,000     6.500% due 2/1/2006                  A1       A+          
1,258,500 

             New Brunswick, New Jersey, Hous- 
             ing & Urban Development Author- 
             ity, (MBIA Insured), 
  525,000     5.500% due 8/1/2016                  Aaa      AAA           
483,656 

             New Brunswick, New Jersey, Park- 
             ing Authority Revenue, City Guar- 
             anteed Parking, 
             (FGIC Insured): 
2,000,000     5.400% due 9/1/2015                  Aaa      AAA         
1,847,500 
             Series A, 
1,000,000     6.500% due 9/1/2019                  Aaa      AAA         
1,038,750 

             New Jersey, Economic Development 
             Authority: 
             (Garden State Paper), 
1,250,000     7.125% due 4/1/2022                  Aa1      NR          
1,323,438 
             (GATX Term Corporation), Series 
             1994, 
1,500,000     7.300% due 9/1/2019                  Baa1     A-          
1,621,875 
             (Greater New York Boy Scouts), 
             (MBIA Insured), 
1,580,000     5.450% due 9/1/2023                  Aaa      AAA         
1,420,025 
             (Morris Hall-St. Lawrence), 
1,000,000     6.250% due 4/1/2025                  NR       A+            
955,000 
             (St. Barnabas Realty Development 
             Corporation), (MBIA Insured): 
2,000,000     5.250% due 7/1/2013                  Aaa      AAA         
1,795,000 
1,000,000     5.250% due 7/1/2020                  Aaa      AAA           
875,000 
             (State Contract), (FSA Insured), 
1,500,000     6.000% due 3/15/2021                 Aaa      AAA         
1,456,875 
             (Station Place), 
2,005,000     6.625% due 7/1/2003                  NR       NR          
2,030,063 
             (Vineland Congeration), 
  750,000     7.875% due 6/1/2019                  NR       NR            
800,625 
             (Zirser-Greenbriar), 
1,500,000     7.375% due 7/15/2003                 NR       NR          
1,492,500 

             New Jersey Economic Revenue, Na- 
             tional Association of Accoun- 
             tants, 
  480,000     7.650% due 7/1/2009                  NR       NR            
488,400 
             Nursing Home Revenue: 
             (Absecon Manor Project), (FHA In- 
             sured), 
  500,000     8.250% due 2/1/2028                  NR       AA+           
534,375 
             Series S, 
  660,000     6.500% due 6/1/2012                  Aaa      NR            
679,800 

             Sewer Facilities -- Atlantic City 
             Sewer Company, 
1,500,000     7.250% due 12/1/2011                 NR       A           
1,625,625 

             Sports and Expo Authority,
             Series A, State Contract, 
1,900,000     6.000% due 3/1/2021                  Aa       A+          
1,864,375 

             Trane Division, Economic Develop- 
             ment Revenue, (1990 Project), 
1,000,000     9.500% due 9/1/2000                  NR       NR          
1,130,000 

             Waste Paper Recycling Revenue, 
             (Marcel Paper Mills Inc. 
             Project), 
1,000,000     8.500% due 2/1/2010                  NR       NR          
1,117,500 

             Water Facilities Revenue, (Hack- 
             ensack Company Project): 
             Series A, 
  100,000     8.750% due 10/1/2017                 A2       NR             
98,750 
             Series D, 
  750,000     7.000% due 10/1/2017                 NR       A             
787,500 

             New Jersey Educational Develop- 
             ment Revenue, (Health Village 
             Inc.), 
1,000,000     7.800% due 5/1/2016                  NR       BBB         
1,062,500 
             Series A, (Franciscan Oaks), 
1,500,000     8.500% due 10/1/2023                 NR       NR          
1,505,625 

             New Jersey Health Care Facili- 
             ties, Financing Authority Reve- 
             nue: 
             (Allegany Health), (MBIA In- 
             sured), 
2,200,000     5.200% due 7/1/2018                  Aaa      AAA         
1,916,750 
             (Atlantic City Medical Center), 
             Series B, 
             (FHA Insured), 
  250,000     8.375% due 8/1/2020                  Aaa      AAA           
286,875 
             (Atlantic City Medical Center), 
             Series C, 
1,000,000     6.800% due 7/1/2011                  A        A-          
1,027,500 
             (Burdett Tomlin Memorial Hospi- 
             tal), Series D, (FGIC Insured): 
1,400,000     6.500% due 7/1/2012                  Aaa      AAA         
1,438,500 
  850,000     6.500% due 7/1/2021                  Aaa      AAA           
873,375 
             (Columbus Hospital), Series A: 
1,350,000     7.200% due 7/1/2001                  Baa1     BB-         
1,368,563 
1,000,000     7.500% due 7/1/2021                  Baa1     BB-           
936,250 
             (Community Memorial Hospital As- 
             sociation), Series C, 
  250,000     8.000% due 7/1/2014                  A        A-            
269,063 
             (Deborah Heart & Lung Center), 
1,550,000     6.300% due 7/1/2023                  Baa1     BBB+        
1,470,561 
             (Helene Fuld Medical Center), Se- 
             ries C, 
1,500,000     8.125% due 7/1/2013                  Aaa      A           
1,640,625 
             (J.F.K. Health System), Obligated 
             Group, 
             (FGIC Insured), 
1,125,000     6.700% due 7/1/2021                  Aaa      AAA         
1,188,281 
             (Jersey Shore Medical Center), 
             Series B, (AMBAC Insured), 
  475,000     8.000% due 7/1/2018                  Aaa      AAA           
530,218 
             (Kennedy Memorial University Med- 
             ical Center), Series D, 
  260,000     7.875% due 7/1/2009                  A        A-            
278,525 
             (Kimball Medical Center), Series 
             C, 
  525,000     8.000% due 7/1/1998                  Baa      BBB-          
552,562 
             (Medical Center of Ocean County), 
             Series C, (FSA Insured), 
  830,000     6.750% due 7/1/2020                  Aaa      AAA           
886,025 
             (Mountainside Hospital), (MBIA 
             Insured), 
1,000,000     5.400% due 7/1/2008                  Aaa      AAA           
942,500 
             (Newcomb Medical Center), Series 
             A, 
  600,000     7.875% due 7/1/2003                  Baa      BBB+          
652,500 
             (Ocean County Hospital), 
2,000,000     6.250% due 7/1/2023                  Baa      NR          
1,795,000 
             (Overlook Hospital Association), 
             Series E, 
             (FGIC Insured), 
1,000,000     6.700% due 7/1/2017                  Aaa      AAA         
1,061,250 
             (Riverview Medical Center), 
             (AMBAC Insured), Series A: 
1,000,000     5.500% due 7/1/2013                  Aaa      AAA           
922,500 
1,000,000     5.500% due 7/1/2018                  Aaa      AAA           
907,500 
  825,000     8.000% due 7/1/2018                  Aaa      AAA           
920,905 
             (St. Elizabeth's Hospital 
             Project), Series B, 
1,250,000     8.250% due 7/1/2020                  Baa      BBB         
1,340,625 
             (St. Mary Hospital), 
1,750,000     5.875% due 7/1/2012                  Baa      BBB-        
1,588,125 
             (Somerset Medical Center), (FGIC 
             Insured), 
2,000,000     5.200% due 7/1/2024                  Aaa      AAA         
1,715,000 
             (Spectrum for Living), 
  830,000     6.500% due 2/1/2022                  NR       AAA           
831,038 
             (Wayne General Hospital), (FHA 
             Insured), 
1,250,000     5.750% due 8/1/2011                  NR       AAA         
1,182,813 

             New Jersey State, Certificates of 
             Participation, Equipment, Series 
             A, 
2,500,000     6.400% due 4/1/2005                  A1       A+          
2,550,000 

             New Jersey State Educational Fa- 
             cilities, Financing Authority 
             Revenue, Higher 
             Education: 
             (Drew University), Series B, 
1,335,000     7.450% due 2/1/2005                  NR       A           
1,435,125 
             (Fairleigh Dickinson University), 
             Series C, 
2,700,000     6.625% due 7/1/2023                  NR       NR          
2,527,875 
             (Trenton State College), Series 
             E, 
             (AMBAC Insured), 
2,000,000     6.000% due 7/1/2019                  Aaa      AAA         
1,950,000 
             (Jersey City State College), Se- 
             ries H, 
             (MBIA Insured), 
1,280,000     5.125% due 7/1/2018                  Aaa      AAA         
1,112,000 

             New Jersey State Higher Education 
             Assistance, 
2,500,000     5.300% due 7/1/2010                  NR       A+          
2,256,250 

             New Jersey State Highway Author- 
             ity, General Revenue Bonds, 
2,000,000     5.750% due 1/1/2019                  A1       AA-         
1,905,000 

             New Jersey State Housing & Mort- 
             gage Finance Agency, Multifamily 
             Housing Revenue: 
             (Presidential Plaza-FHA), Series 
             1, 
1,550,000     7.000% due 5/1/2030                  NR       AAA         
1,615,875 
             (Regency Park Project), Series H, 
1,000,000     7.700% due 11/1/2030                 NR       AA          
1,052,500 

             New Jersey State Housing & Mort- 
             gage Finance Agency Revenue, Home 
             Mortgage, 
             (MBIA Insured): 
             Series B, 
  740,000     8.100% due 10/1/2017                 Aaa      AAA           
793,650 
             Series C, 
   30,000     8.375% due 4/1/2017                  Aaa      AAA            
32,437 
             Series D, 
  430,000     7.700% due 10/1/2029                 Aaa      AAA           
452,575 

             New Jersey State Transportation 
             Authority, Series D, 
2,500,000     8.000% due 2/15/2007+++              AA1      AA+         
2,971,875 

             New Jersey State Turnpike, Trans- 
             portation Revenue Bonds, (MBIA 
             Insured): 
2,000,000     6.500% due 1/1/2016                  Aaa      AAA         
2,070,000 
2,000,000     10.070% due 1/1/2016                 A        A           
2,225,000 

             New Jersey State Transportation 
             Trust Fund, (FSA Insured), 
1,500,000     4.750% due 6/15/2003                 Aaa      AAA         
1,363,125 

             North Bergen, New Jersey, Town- 
             ship, Capital Appreciation, (FSA 
             Insured), 
1,500,000     8.000% due 8/15/2007                 Aaa      AAA         
1,796,250 

             North Bergen, New Jersey, Town- 
             ship, Municipal Utilities Author- 
             ity, Sewer Revenue, Refunding, 
             (FGIC Insured), 
1,960,000     7.875% due 12/15/2009                Aaa      AAA         
2,310,350 

             North Jersey District Water Sup- 
             ply Commission, New Jersey Re- 
             funding, (Wanaque North Project), 
             Series A, (MBIA Insured): 
1,500,000     6.000% due 7/1/2021                  Aaa      AAA         
1,460,625 
1,195,000     6.500% due 11/15/2021                Aaa      AAA         
1,229,355 

             Old Bridge Township, New Jersey, 
             General Obligation Bonds, (FGIC 
             Insured): 
  560,000     6.550% due 7/15/2010                 Aaa      AAA           
588,000 
  720,000     6.550% due 7/15/2011                 Aaa      AAA           
756,000 
             Old Bridge Township, New Jersey, 
             Municipal Utilities Authority 
             Revenue, (FGIC Insured),  6.400% 
  750,000    due 11/1/2009                         Aaa      AAA           
773,437 

             Passaic Valley, New Jersey, Sewer 
             Commission Revenue, Water Supply 
             Revenue, Series A, (FGIC In- 
             sured): 
2,000,000     5.000% due 12/15/2022                Aaa      AAA         
1,692,500 
  100,000     6.400% due 12/15/2022                Aaa      AAA           
101,375 

             Perth Amboy, New Jersey, Board of 
             Education, Certificates of Par- 
             ticipation, (FSA Insured), 
  500,000     6.125% due 12/15/2017                Aaa      AAA           
495,625 

             Perth Amboy, New Jersey, Ref- 
             Series A, 
             (FSA Insured), 
1,600,000     5.300% due 9/1/2011                  Aaa      AAA         
1,464,000 

             Piscataway Township, New Jersey 
             School District, (FHA Insured), 
1,750,000     5.375% due 12/15/2010                Aaa      AAA         
1,610,000 

             Pleasantville, New Jersey, School 
             District, Certificates of Partic- 
             ipation, Fiscal Funding New Jer- 
             sey, Inc., (BIGI Insured), 
1,750,000     7.700% due 10/1/2013                 Aaa      AAA         
1,935,938 

             Rutgers State University, New 
             Jersey, University of New Jer- 
             sey: 
             Series A, 
1,000,000     6.500% due 5/1/2018                  A1       AA          
1,027,500 
             Series P, 
  750,000     6.850% due 5/1/2021                  A1       AA            
796,875 

             Salem County, New Jersey, Indus- 
             trial Pollutant Control, (MBIA 
             Insured), 
2,500,000     5.550% due 11/1/2033                 Aaa      AAA         
2,234,375 

             Sayreville, New Jersey, Housing 
             Development Corporation Mortgage 
             Revenue, FHA Refunding, 
             (Lakeview-Section 8), 
  750,000     7.750% due 8/1/2024                  NR       AAA           
783,750 

             Scotch Plains Township, New Jer- 
             sey, 
1,500,000     5.750% due 9/1/2023                  Aa       NR          
1,443,750 

             Somerset Raritan Valley, New Jer- 
             sey, Sewer Authority Revenue, Se- 
             ries G, 
2,500,000     6.750% due 7/1/2010                  A1       AA          
2,665,625 

             South Amboy, New Jersey, General 
             Obligation Bonds, (MBIA Insured), 
  500,000     6.375% due 12/1/2010                 Aaa      AAA           
510,625 

             Southeast Morris County, New Jer- 
             sey, Municipal Utilities Author- 
             ity, Water Revenue, Series A, 
             (FGIC Insured), 
1,000,000     6.500% due 1/1/2011                  Aaa      AAA         
1,040,000 

             Stafford, New Jersey, Municipal 
             Utilities Authority, Sewer and 
             Water Revenue, 
             (FGIC Insured), 
1,500,000     6.125% due 12/1/2022                 Aaa      AAA         
1,486,875 

             Tinton Falls, New Jersey, School 
             Board of Education, Certificates 
             of Participation, 
             (FSA Insured), 
1,000,000     6.500% due 6/15/2017                 Aaa      AAA         
1,026,250 

             Trenton, New Jersey, General Ob- 
             ligation Bonds, (MBIA Insured), 
  750,000     6.550% due 8/15/2009                 Aaa      AAA           
784,686 

             Union City, New Jersey, General 
             Obligation Bonds, (MBIA Insured), 
  900,000     6.700% due 9/1/2012                  Aaa      AAA           
952,875 

             Union County, New Jersey, Im- 
             provement Authority Revenue, 
             (Cranford Township Project), 
1,000,000     7.750% due 5/1/2003                  A1       A+          
1,098,750 

             University of New Jersey, School 
             of Medicine and Dentistry, Series 
             C, 
1,140,000     7.200% due 12/1/2019                 A        AA          
1,246,875 

             Warren Hills, New Jersey, Re- 
             gional School District, (FSA In- 
             sured), 
1,400,000     5.250% due 12/15/2009                Aaa      AAA         
1,267,000 

             Washington Township, New Jersey, 
             Fire District, (FGIC Insured), 
  500,000     5.150% due 1/1/2014                  Aaa      AAA           
443,125 

             Weehawken Township, New Jersey, 
             General Obligation Bonds, (FSA 
             Insured), 
  854,000     6.350% due 7/1/2007                  Aaa      AAA           
883,890 

             West New York, New Jersey, Gen- 
             eral Obligation Bonds, (AMBAC In- 
             sured), 
1,000,000     6.450% due 7/15/2006                 Aaa      AAA         
1,038,750 

             West New York, New Jersey, Munic- 
             ipal 
             Utilities Authority, Sewer Reve- 
             nue, Series A, 
             (FGIC Insured), 
1,500,000     5.125% due 12/15/2017                Aaa      AAA         
1,314,375 

             West Windsor, Plainsboro, New 
             Jersey, Regional School Dis- 
             trict: 
  180,000    6.750% due 4/1/2006                   A1       AA            
195,525 
  490,000    6.750% due 4/1/2007                   A1       AA            
529,812 
  435,000    6.800% due 4/1/2008                   A1       AA            
471,975 
  170,000    6.800% due 4/1/2009                   A1       AA            
185,938 

             Winslow Township, New Jersey, Re- 
             funding Bonds, General Obligation 
             Bonds, 
             (FGIC Insured), 
1,030,000     6.400% due 10/1/2010                 Aaa      AAA         
1,049,313 

                                                                      
165,276,545 
             PUERTO RICO -- 0.3% 
             Commonwealth of Puerto Rico, 
  495,000     8.000% due 7/1/2008                  Baa1     A             
555,020 
             TOTAL MUNICIPAL BONDS AND NOTES 
             (Cost $165,808,903)                                      
165,831,565 

SHORT-TERM MUNICIPAL BONDS AND NOTES -- 0.7% 
             (Cost $1,100,000) 
             
             PUERTO RICO -- 0.7% 
             Commonwealth of Puerto Rico, Gov- 
             ernment Development Bank, 
$1,100,000    2.000% due 12/1/2015+               VMIG-1    A1+      $  
1,100,000 

TOTAL INVESTMENTS (Cost $166,908,903*)                      99.2%     
166,931,565 

OTHER ASSETS AND LIABILITIES (NET)                          0.8         
1,356,229 

NET ASSETS                                                 100.0%    
$168,287,794 

<FN>
*   Aggregate cost for Federal tax purposes. 
+   Variable rate demand notes are payable upon not more than seven busi- 
    ness days' notice. 
++  When-issued security (Note 1). 
+++ Collateral with a face value of $1,000,000 held for when-issued secu- 
    rity. 
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS 

                   

                   STATEMENT OF ASSETS AND LIABILITIES 

                              MARCH 31, 1994 

<TABLE>
<S>                                                     <C>            <C>
 ASSETS: 
   Investments, at value (Cost $166,908,903) (Note 
     1) 
  See accompanying schedule                                            $ 
166,931,565 
   Cash                                                                       
68,018 
   Interest receivable                                                     
2,885,169 
   Receivable for investment securities sold                               
1,504,250 
   Receivable for Fund shares sold                                           
641,564 
   TOTAL ASSETS                                                          
172,030,566 


LIABILITIES: 
   Payable for investment securities purchased          $ 2,882,589 
   Payable for Fund shares redeemed                         388,610 
   Investment advisory fee payable (Note 2)                 140,271 
   Dividends payable                                        131,292 
   Administration fee payable (Note 2)                       83,012 
   Service fee payable (Note 3)                              22,080 
   Distribution fee payable (Note 3)                         20,918 
   Custodian fees payable (Note 2)                            7,400 
   Transfer agent fees payable (Note 2)                       5,500 
   Accrued expenses and other payables                       61,100 
TOTAL LIABILITIES                                                          
3,742,772 


NET ASSETS                                                             $ 
168,287,794 
NET ASSETS CONSIST OF: 
   Distributions in excess of net investment income                       $ 
(131,292) 
   Accumulated net realized gain on investments sold                          
29,220 
   Unrealized appreciation of investments                                     
22,662 
   Par value                                                                  
13,409 
   Paid-in capital in excess of par value                                
168,353,795 
TOTAL NET ASSETS                                                       $ 
168,287,794 


NET ASSET VALUE: 
  CLASS A SHARES 
  NET ASSET VALUE and redemption price per share 
   ($119,912,994 / 9,553,890 shares of common stock 
   outstanding)                                                               
$ 12.55 
  Maximum offering price per share ($12.55 / 0.955) 
   (based on sales charge of 4.5% of the offering 
   price on March 31, 1994)                                                   
$ 13.14 

  CLASS B SHARES 
  NET ASSET VALUE and offering price per share+ 
   ($48,374,800 / 3,855,197 shares of common stock 
   outstanding)                                                               
$ 12.55 
<FN>
+ Redemption price per share is equal to Net Asset Value less any applica- 
  ble contingent deferred sales charge. 

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS 


                         STATEMENT OF OPERATIONS 

                     FOR THE YEAR ENDED MARCH 31, 1994 

<TABLE>
<S>                                                       <C>          <C>
 INVESTMENT INCOME: 
   Interest                                                            $ 
9,595,388 


EXPENSES: 
   Investment advisory fee (Note 2)                       $ 559,176 
   Sub-investment advisory and administration fee 
     (Note 2)                                               319,529 
   Service fee (Note 3)                                     239,646 
   Distribution fee (Note 3)                                176,771 
   Legal and audit fees                                      63,298 
   Transfer agent fees (Notes 2 and 4)                       61,490 
   Custodian fees (Note 2)                                   49,662 
   Directors' fees and expenses (Note 2)                     16,869 
   Other (Notes 4 and 8)                                    110,031 
   Fees waived by investment adviser and administrator 
     (Note 2)                                               (77,757) 
   TOTAL EXPENSES                                                        
1,518,715 
NET INVESTMENT INCOME                                                    
8,076,673 


REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS 
 (NOTES 1 AND 5): 
   Net realized gain on investments sold during the 
     year                                                                
1,474,192 
   Net unrealized depreciation of investments during 
     the year                                                           
(8,942,109) 
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS                         
(7,467,917) 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS                      $ 
608,756 
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS 


                       STATEMENT OF CHANGES IN NET ASSETS 


<TABLE>
<CAPTION>
                                                         YEAR            YEAR 
                                                        ENDED            ENDED 
                                                       3/31/94          
3/31/93 
<S>                                                  <C>              <C>
Net investment income                                $ 8,076,673      $ 
6,206,374 
Net realized gain on investments sold during the 
  year                                                 1,474,192        
1,691,586 
Net unrealized appreciation/(depreciation) of 
  investments during the year                         (8,942,109)       
5,652,365 
Net increase in net assets resulting from opera- 
  tions                                                  608,756       
13,550,325 
Distributions to shareholders from net invest- 
  ment income: 
   Class A                                            (6,377,318)      
(6,050,482) 
   Class B                                            (1,613,063)        
(155,892) 
Distribution to shareholders in excess of net 
investment income: 
   Class A                                               (68,872)         -- 
   Class B                                               (17,420)         -- 
Distribution to shareholders from net realized 
gain on investments: 
   Class A                                            (1,446,042)      
(1,169,374) 
   Class B                                              (490,715)         
(45,312) 
Distribution to shareholders from capital (Note 
1): 
   Class A                                               (35,156)        
(110,696) 
   Class B                                                (9,844)          
(2,852) 
Net increase in net assets from capital share 
transactions (Note 6): 
   Class A                                            10,438,364       
17,097,356 
   Class B                                            35,313,040       
16,076,163 
Net increase in net assets                            36,301,730       
39,189,236 


NET ASSETS: 
Beginning of year                                    131,986,064       
92,796,828 
End of year (including distributions in excess 
  of net investment income of $131,292 and 
  $86,292, respectively)                            $ 168,287,794   $ 
131,986,064 
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS 


                           FINANCIAL HIGHLIGHTS 

           FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH YEAR. 

<TABLE>
<CAPTION>
                                                  YEAR        YEAR        YEAR 
                                                 ENDED        ENDED      ENDED 
                                                3/31/94      3/31/93    
3/31/92 
<S>                                             <C>          <C>        <C>
Operating performance: 
Net asset value, beginning of year               $13.16       $12.44      
$12.17 
Income from investment operations: 
Net investment income***                           0.70         0.75       
0.77 
Net realized and unrealized gain/(loss) on 
  investments                                     (0.46)        0.87       
0.44 
Total from investment operations                   0.24         1.62       
1.21 
Distributions: 
Distributions from net investment income          (0.69)       (0.75)     
(0.77) 
Distributions in excess of net investment 
  income                                          (0.01)       --          -- 
Distributions from net realized gains             (0.15)       (0.14)     
(0.13) 
Distributions from capital (Note 1)             (0.00)**       (0.01)     
(0.04) 
Total distributions                               (0.85)       (0.90)     
(0.94) 
Net asset value, end of year                     $12.55       $13.16     
$12.44 
Total return+++                                    1.66%       13.49%     
10.22% 
Ratios/supplemental data: 
Net assets, end of year (in 000's)             $119,913     $115,694    
$92,797 
Ratio of operating expenses to average net 
  assets+                                          0.83%        0.74%    
0.67%++ 
Ratio of net investment income to average 
  net assets                                       5.17%        5.76%      
6.18% 
Portfolio turnover rate                              32%          58%        
98% 
<FN>
 ** Amount represents less than $0.01 per Class A share. 

*** Net investment income before waiver of fees and/or reimbursement of 
    expenses by investment adviser, sub-investment adviser and administra- 
    tor for the years ended March 31, 1994, 1993, 1992,1991,1990 and 1989 
    would have been $.69, $.73, $.75, $.78, $.77 and $.74, respectively. 

  + Expense ratios before partial waiver of fees by investment adviser and 
    sub-investment adviser and/or administrator for the years ended March 
    31, 1994, 1993, 1992, 1991, and 1990 and before the partial waiver of 
    fees and reimbursement of expenses by investment adviser and sub- 
    investment adviser and/or administrator for the period ended March 
    31,1989 were 0.88%, 0.90%, 0.83%, 1.08% and 1.23%, respectively. 

 ++ The operating expense ratio excludes interest expense. The operating 
    expense ratio including interest expense was 0.68% for the year ended 
    March 31,1992. 

+++ Total return represents aggregate total return for the periods indi- 
    cated and does not reflect any applicable sales charges. 
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS 


                    FINANCIAL HIGHLIGHTS (continued) 

           FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH YEAR. 

<TABLE>
<CAPTION>
                                                  YEAR        YEAR       
PERIOD 
                                                 ENDED       ENDED       ENDED 
                                                3/31/91     3/31/90     
3/31/89* 
<S>                                             <C>         <C>         <C>
Operating performance: 
Net asset value, beginning of year               $11.92      $11.67       
$11.40 
Income from investment operations: 
Net investment income***                           0.82        0.83        
0.82 
Net realized and unrealized gain/(loss) on 
  investments                                      0.32        0.27        
0.28 
Total from investment operations                   1.14        1.10        
1.10 
Distributions: 
Distributions from net investment income          (0.83)      (0.82)      
(0.82) 
Distributions in excess of net investment 
  income                                           --          --          -- 
Distributions from net realized gains             (0.05)      (0.03)      
(0.01) 
Distributions from capital (Note 1)               (0.01)       --          -- 
Total distributions                               (0.89)      (0.85)      
(0.83) 
Net asset value, end of year                     $12.17      $11.92      
$11.67 
Total return++                                     9.89%       9.62%       
9.84% 
Ratios/supplemental data: 
Net assets, end of year (in 000's)              $65,378     $38,728     
$29,265 
Ratio of operating expenses to average net 
  assets+                                          0.57%       0.55%     
0.52%** 
Ratio of net investment income to average 
  net assets                                       6.74%       6.89%     
7.23%** 
Portfolio turnover rate                              44%         42%         
25% 
<FN>
  * The Fund commenced operations on April 22, 1988. Those shares in ex- 
    istence prior to November 6, 1992 were designated as Class A shares. 

 ** Annualized. 

*** Net investment income before waiver of fees and/or reimbursement of 
    expenses by investment adviser, sub-investment adviser and/or adminis- 
    trator for the years ended March 31, 1994, 1993, 1992,1991,1990, and 
    1989 would have been $.69, $.73, $.75, $.78, $.77, and $.74, 
    respectively. 

  + Expense ratios before partial waiver of fees by investment adviser and 
    sub-investment adviser and administrator for the years ended March 31, 
    1994, 1993, 1992, 1991, and 1990 and before the partial waiver of fees 
    and reimbursement of expenses by investment adviser and sub-investment 
    adviser and administrator for the period ended March 31,1989 were 
    0.88%, 0.90%, 0.83%, 1.08% and 1.23%, respectively. 

 ++ Total return represents aggregate total return for the periods indi- 
    cated and does not reflect any applicable sales charges. 
</TABLE>


SEE NOTES TO FINANCIAL STATEMENTS 



                        FINANCIAL HIGHLIGHTS 

          FOR A CLASS B SHARE OUTSTANDING THROUGHOUT EACH PERIOD. 

<TABLE>
<CAPTION>
                                                           YEAR          
PERIOD 
                                                          ENDED          ENDED 
                                                         3/31/94        
3/31/93* 
<S>                                                      <C>            <C>
Operating performance: 
Net asset value, beginning of period                      $13.16         
$12.75 
Income from investment operations: 
Net investment income***                                    0.64           
0.28 
Net realized and unrealized gain/(loss) on in- 
  vestments                                                (0.47)          
0.55 
Total from investment operations                            0.17           
0.83 
Distributions: 
Distributions from net investment income                   (0.62)         
(0.27) 
Distributions in excess of net investment income           (0.01)          -- 
Distributions from net realized gains                      (0.15)         
(0.14) 
Distributions from capital (Note 1)                      (0.00)+++        
(0.01) 
Total distributions                                        (0.78)         
(0.42) 
Net asset value, end of period                            $12.55         
$13.16 
Total return++                                              1.15%          
6.60% 
Ratios/supplemental data: 
Net assets, end of period (in 000's)                     $48,375        
$16,293 
Ratio of operating expenses to average net as- 
  sets+                                                     1.36%        
1.33%** 
Ratio of net investment income to average net 
  assets                                                    4.64%        
5.17%** 
Portfolio turnover rate                                       32%            
58% 
<FN>
  * The Fund commenced selling Class B shares on November 6, 1992. 

 ** Annualized. 

*** Net investment income before waiver of fees and/or reimbursement of 
    expenses by investment 
    adviser, sub-investment adviser and/or administrator for the years 
    ended March 31, 1994 and 1993 would have been $.63 and $.27, 
    respectively. 

  + Annualized expense ratio before partial waivers of fees by investment 
    adviser and sub-investment adviser and administrator for the years 
    ended March 31, 1994 and 1993 were 1.41% and 1.49%, respectively. 

 ++ Total return represents aggregate total return for the periods indi- 
    cated and does not reflect any 
    applicable sales charges. 

+++ Amount represents less than $0.01 per Class B share. 

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS 


                       NOTES TO FINANCIAL STATEMENT 

1. SIGNIFICANT ACCOUNTING POLICIES 

Smith Barney Shearson New Jersey Municipals Fund Inc. (the "Fund") was in- 
corporated under the laws of the State of Maryland on November 12, 1987. 
The Fund is a non-diversified, open-end management investment company reg- 
istered with the Securities and Exchange Commission under the Investment 
Company Act of 1940, as amended (the "1940 Act"). The Fund commenced oper- 
ations on April 22, 1988. As of November 6, 1992, the Fund began offering 
two classes of shares to the general public: Class A shares and Class B 
shares. Class A shares are sold with a front-end sales charge. Class B 
shares may be subject to a contingent deferred sales charge ("CDSC"). 
Class B shares will automatically convert to Class A shares eight years 
after the original purchase date. Each class of shares has 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 specifically 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 sig- 
nificant accounting policies consistently followed by the Fund in the 
preparation of its financial statements. 

Portfolio valuation: Securities are valued at the close of trading on the 
New York Stock Exchange by The Boston Company Advisors, Inc. ("Boston Ad- 
visors") after consultation with an independent pricing service (the "Ser- 
vice") approved by the Board of Directors. When, in the judgment of the 
Service, quoted bid prices for investments 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 available market quotations 
(which may constitute a majority of the 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. Short-term investments that mature in 60 
days or less are valued at amortized cost whenever the Board of Directors 
determines that amortized cost reflects the fair value of those invest- 
ments. 

Securities transactions and investment income: Securities transactions 
are recorded as of the trade date. Realized gains and losses from securi- 
ties 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. Interest income is recorded on the accrual 
basis. Securities purchased or sold on a when-issued or delayed-delivery 
basis may be settled a month or more after the trade date; interest income 
is not accrued until settlement date. When required, the Fund instructs 
the custodian to segregate assets in a separate account with a current 
value at least equal to the amount of its when-issued purchase commit- 
ments. 

Dividends and distributions to shareholders: Dividends from net invest- 
ment income determined on a class level, if any, of the Fund are declared 
daily and paid on the last business day of the Smith Barney Shearson Inc. 
("Smith Barney Shearson") statement month. Distributions determined on a 
fund level, if any, of any net short- and long-term capital gains earned 
by the Fund will be declared and paid annually after the close of the fis- 
cal year in which they are earned. Additional distributions of net invest- 
ment income and capital gains for the Fund may be made at the discretion 
of the Board of Directors in order to avoid the application of a 4% nonde- 
ductible excise tax on certain undistributed amounts of net investment in- 
come and capital gains. To the extent net realized capital gains can be 
offset by capital losses and loss carryforwards, it is the policy of the 
Fund not to distribute such gains. 

Income distributions and capital gain distributions are determined in 
accordance with income tax regulations which may differ from generally ac- 
cepted 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. 

Permanent differences incurred during the year ended March 31, 1994, 
resulting from a redesignation of income, were reclassified to accumulated 
net realized gains on investments sold at year end. 

Reclassifications: During the current period, the Fund adopted Statement 
of Position 93-2 "Determination, Disclosure, and Financial Statement Pre- 
sentation of Income, Capital Gain, and Return of Capital Distributions by 
Investment Companies." Accordingly, certain reclassifications have been 
made to the components of capital in the Statement of Net Assets to con- 
form with the accounting and reporting guidelines of this statement. Dis- 
tributions in excess of book basis accumulated realized gains or undis- 
tributed net investment income that were the result of permanent book and 
tax accounting differences have been reclassified to paid-in capital. In 
addition, amounts distributed in excess of undistributed net investment 
income as determined for financial statement purposes but as distributions 
from net investment income or net realized gains for tax purposes, previ- 
ously reported as distributions from paid-in capital, have been reclassi- 
fied to reflect the tax characterization. Accordingly, amounts as of March 
31, 1993 have been restated to reflect an increase in paid-in capital, an 
increase in distributions in excess of net investment income and a de- 
crease in accumulated net realized gains of $398,427, $86,292, and 
$312,135, respectively. The Statement of Changes in Net Assets and Finan- 
cial Highlights for prior periods have not been restated to reflect this 
change in presentation. Net investment income, net realized gains, and net 
assets on a book and tax basis were not affected by this change. 

Federal income taxes: The Fund intends to qualify as a regulated invest- 
ment company, if such qualification is in the best interests of its share- 
holders, by complying with the requirements of the Internal Revenue Code 
of 1986, as amended, applicable to regulated investment companies and by 
distributing substantially all of its earnings to its shareholders. There- 
fore, no Federal income tax provision is required. 

2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE 
    AND OTHER TRANSACTIONS 

The Fund has entered into an investment advisory agreement the ("Advisory 
Agreement") with Greenwich Street Advisors, a division of Mutual Manage- 
ment Corp., which is controlled by Smith Barney Shearson Holdings Inc. 
("Holdings"). Holdings is a wholly owned subsidiary of The Travelers Inc. 
Under the Advisory Agreement, the Fund pays a monthly fee at the following 
annual rates: .35% of the value of its average daily net assets up to $500 
million and .32% of the value of its average daily net assets in excess of 
$500 million. Prior to July 30, 1993, Shearson Lehman Advisors served as 
investment adviser to the Fund. 

The Fund has also entered into an administration agreement (the "Adminis- 
tration Agreement") dated May 21, 1993, with Boston Advisors, an indirect 
wholly owned subsidiary of Mellon Bank Corporation ("Mellon"). Under the 
Administration Agreement, the Fund pays a monthly fee at the following an- 
nual rates: .20% of the value of its average daily net assets up to $500 
million and .18% of the value of its average daily net assets in excess of 
$500 million. Prior to the close of business on May 21, 1993, Boston Advi- 
sors served as sub- investment adviser and administrator to the Fund. 

Greenwich Street Advisors and Boston Advisors voluntarily waived fees in 
the amounts of $49,482 and $28,275, respectively, for the year ended March 
31, 1994. 

For the year ended March 31, 1994, Smith Barney Shearson Inc. received 
from investors $586,302 representing commissions (sales charges) on sales 
of Class A shares. 

A CDSC is generally payable by a shareholder in connection with the re- 
demption of Class B shares within five years after the date of purchase. 
In circumstances in which the CDSC is imposed, the amount of the charge 
ranges between 4.5% and 1% of net asset value depending on the number of 
years since the date of purchase. For the year ended March 31, 1994, Smith 
Barney Shearson received from shareholders $49,338 in CDSC on the redemp- 
tion of Class B shares. 

No officer, director or employee of Smith Barney Shearson Inc. ("Smith 
Barney Shearson") or Boston Advisors or of any parent or subsidiary of 
those corporations receives any compensation from the Fund for serving as 
a Director or officer of the Fund. The Fund pays each Director who is not 
an officer, director, or employee of Smith Barney Shearson or Boston Advi- 
sors or any of their affiliates $1,000 per annum plus $100 per meeting at- 
tended and reimburses each such Director for travel and out-of-pocket ex- 
penses. 

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 trans- 
fer agent. 

3. DISTRIBUTION AGREEMENT 

Smith Barney Shearson acts as distributor of the Fund's shares pursuant to 
a distribution agreement with the Fund, and sells shares of the Fund 
through Smith Barney Shearson or its affiliates. 

Pursuant to Rule 12b-1 under the 1940 Act, the Fund has adopted a Service 
and Distribution Plan (the "Plan"). Under this Plan, the Fund compensates 
Smith Barney Shearson for servicing shareholder accounts for Class A and 
Class B shareholders, and covers expenses incurred in distributing Class B 
shares. Smith Barney Shearson is paid an annual service fee with respect 
to Class A and Class B shares of the Fund at the rate of .15% of the value 
of the average daily net assets of each respective class of shares. Smith 
Barney Shearson is also paid an annual distribution fee with respect to 
Class B shares at the rate of .50% of the value of the average daily net 
assets attributable to those shares. For the year ended March 31, 1994, 
the Fund incurred $186,615 and $53,031 in service fees for Class A and 
Class B shares, respectively. For the year ended March 31, 1994, the Fund 
incurred $176,771 in distribution fees for Class B shares. Prior to July 
31, 1993, Shearson Lehman Brothers served as the Fund's distributor and 
received fees equal to the current rates for its services. 

4. EXPENSE ALLOCATION 

Expenses of the Fund not directly attributable to the operations of any 
class of shares are prorated among 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 $40,273 and $21,217 for Class A and Class B shares, 
respectively. 

5. PURCHASES AND SALES OF SECURITIES 

Cost of purchases and proceeds from sales of investment securities, ex- 
cluding short-term investments, for the year ended March 31, 1994, 
amounted to $93,691,530 and $50,526,308, respectively. 

At March 31, 1994, the aggregate gross unrealized appreciation for all se- 
curities in which there was an excess of value over tax cost amounted to 
$5,211,809, and the aggregate gross unrealized depreciation for all secu- 
rities in which there was an excess of tax cost over value amounted to 
$5,189,147. 

6. COMMON STOCK 

At March 31, 1994, 100 million shares of $.001 par value common stock were 
authorized. Changes in shares of common stock outstanding for the Fund 
which are divided into two classes, Class A and Class B, were as follows: 

<TABLE>
<CAPTION>
                                      YEAR ENDED                    YEAR ENDED 
                                        3/31/94                      3/31/93 
CLASS A SHARES:                Shares      Amount           Shares        
Amount 
<S>                           <C>           <C>             <C>           <C>
Sold                           1,647,480    $22,242,307      2,285,179    
$29,496,695 
Issued as reinvestment of 
dividends                        392,313      5,278,384        398,847      
5,133,958 
Redeemed                      (1,274,430)   (17,082,327)    (1,353,960)   
(17,533,297) 
Net increase                     765,363    $10,438,364      1,330,066    
$17,097,356 
</TABLE>


<TABLE>
<CAPTION>
                                      YEAR ENDED                 PERIOD ENDED 
                                       3/31/94                     3/31/93* 
CLASS B SHARES:               Shares        Amount         Shares       Amount 
<S>                           <C>          <C>             <C>          <C>
Sold                          2,659,770    $35,847,840     1,233,973    
$16,027,426 
Issued as reinvestment of 
dividends                       114,141      1,536,557        11,453        
149,470 
Redeemed                       (156,456)    (2,071,357)       (7,684)      
(100,733) 
Net increase                  2,617,455    $35,313,040     1,237,742    
$16,076,163 
<FN>
 * The Fund commenced selling Class B shares on November 6, 1992. Any 
   shares outstanding prior to November 6, 1992 were designated as Class A 
   shares. 
</TABLE>

7. CONCENTRATION OF CREDIT 

The Fund primarily invests in debt obligations issued by the State of New 
Jersey 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 Jersey municipal securities 
than is a municipal bond fund that is not concentrated in these issuers to 
the same extent. 

8. LINE OF CREDIT 

The Fund and several affiliated entities participate in a $50 million line 
of credit provided by Continental Bank N.A. under an Amended and Restated 
Line of Credit Agreement (the "Agreement") dated April 30, 1992, primarily 
for temporary or emergency purposes, including the meeting of redemption 
requests that otherwise might require the untimely disposition of securi- 
ties. Under this Agreement, the Fund may borrow up to the lesser of $25 
million or 10% of its net assets. Interest is payable either at the bank's 
Money Market Rate or the London Interbank Offered Rate (LIBOR) plus .375% 
on an annualized basis. The Fund and the other affiliated entities are 
charged an aggregate commitment fee of $125,000 which is allocated equally 
among each of the participants. The Agreement requires, among other provi- 
sions, each participating fund to maintain a ratio of net assets (not in- 
cluding funds borrowed pursuant to the Agreement) to aggregate amount of 
indebtedness pursuant to the Agreement of no less than 5 to 1. At March 
31, 1994, the Fund had no outstanding borrowings under this Agreement. 
During the year ended March 31, 1994, the Fund had an average outstanding 
daily balance of $2,740 with an interest rate equaling 3.56%. Interest ex- 
pense totalled $99 for the year ended March 31, 1994 and is offset against 
interest income on the Fund's Statement of Operations. 

9. SUBSEQUENT EVENT 

On April 20, 1994, the Fund's Board of Directors approved a new adminis- 
tration agreement with Smith, Barney Advisers, Inc. ("Smith Barney Advis- 
ers") containing substantially the same terms and conditions, including 
the level of fees, as the current agreement. The Board also approved a 
sub-administration agreement with Boston Advisors. Under the proposed ar- 
rangements, Boston Advisors would be paid a portion of the amount paid by 
the Fund to Smith Barney Advisers at a rate agreed upon from time to time 
between Smith Barney Advisers and Boston Advisors. 



               REPORT OF INDEPENDENT ACCOUNTANTS 

TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF 
SMITH BARNEY SHEARSON NEW JERSEY MUNICIPALS FUND INC.: 

We have audited the accompanying statement of assets and liabilities of 
Smith Barney Shearson New Jersey Municipals Fund Inc., including the 
schedule of portfolio investments, as of March 31, 1994, the related 
statement of operations for the year then ended, and the statement of 
changes in net assets for each of the two years in the period then ended 
and the financial highlights for each of the five years in the period 
ended March 31, 1994 and for the period from April 22, 1988 (commencement 
of operations) to March 31, 1989. These financial statements and financial 
highlights are the responsibility of the Fund's management. Our responsi- 
bility is to express an opinion on these financial statements and finan- 
cial highlights based on our audits. 

We conducted our audits in accordance with generally accepted auditing 
standards. Those standards require that we plan and perform the audit to 
obtain reasonable assurance about whether the financial statements and fi- 
nancial highlights are free of material misstatement. An audit includes 
examining, on a test basis, evidence supporting the amounts and disclo- 
sures in the financial statements. Our procedures included confirmation of 
securities owned as of March 31, 1994 by correspondence with the custodian 
and brokers. An audit also includes assessing the accounting principles 
used and significant estimates made by management, as well as evaluating 
the overall financial statement presentation. We believe that our audits 
provide a reasonable basis for our opinion. 

In our opinion, the financial statements and financial highlights referred 
to above present fairly, in all material respects, the financial position 
of Smith Barney Shearson New Jersey Municipals Fund Inc. as of March 31, 
1994, the results of its operations for the year then ended, and the 
changes in its net assets for each of the two years in the period then 
ended and the financial highlights for each of the five years in the pe- 
riod then ended and for the period from April 22, 1988 (commencment of op- 
erations) to March 31, 1989, in conformity with generally accepted ac- 
counting principles. 

COOPERS & LYBRAND 

Boston, Massachusetts 
May 10, 1994 



                       TAX INFORMATION (UNAUDITED) 

                     FISCAL YEAR ENDED MARCH 31, 1994 

The amount of long term capital gain for the fiscal year ended March 31, 
1994 was as follows: 

    Smith Barney Shearson 
    New Jersey Municipals Fund Inc. ...................... $1,432,430 

Of the dividends paid by Smith Barney Shearson New Jersey Municipals Fund 
Inc. from net investment income for the year ended March 31, 1994, 100% is 
tax-exempt for regular Federal income tax purposes. 

The above figure may differ from those cited elsewhere in this report due 
to differences in the calculations of income and capital gains for Securi- 
ties and Exchange Commission (book) purposes and Internal Revenue Service 
(tax) purposes. 






NEW JERSEY 
MUNICIPALS 
FUND INC. 

DIRECTORS 

Herbert Barg 
Alfred J. Bianchetti 
Robert Borgesen 
Martin Brody 
Dwight B. Crane 
James J. Crisona 
Robert A. Frankel 
Dr. Paul Hardin 
Stephen E. Kaufman 
Joseph J. McCann 
Heath B. McLendon 

OFFICERS 

Heath B. McLendon 
Chairman of the Board 
and Investment Officer 
Stephen J. Treadway 
President 
Richard P. Roelofs 
Executive Vice President 
Lawrence T. McDermott 
Vice President and 
Investment Officer 
Karen L. Mahoney-Malcomson 
Investment Officer 
Lewis E. Daidone 
Treasurer 
Christina T. Sydor 
Secretary 

This report is submitted for the 
general information of the 
shareholders of Smith Barney 
Shearson New Jersey Municipals 
Fund Inc. It is not authorized 
for distribution to prospective 
investors unless accompanied 
or preceded by an effective 
Prospectus for the Fund, which 
contains information concerning 
the Fund's investment policies, fees 
and expenses as well as other 
pertinent information. 


SMITH BARNEY SHEARSON

SMITH BARNEY SHEARSON 
MUTUALS FUNDS 

Two World Trade Center 
New York, New York 10048 

Fund 66,206 

FD0370 E4 






© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission