TAURUS
MUNINEW YORK
HOLDINGS, INC.
FUND LOGO
Annual Report
October 31, 1994
Officers and Directors
Arthur Zeikel, President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Charles C. Reilly, Director
Kevin A. Ryan, Director
Richard R. West, Director
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
<PAGE>
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
Transfer Agents
Common Stock:
The Bank of New York
90 Washington Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
NYSE Symbol
MNY
This report, including the financial information herein, is
transmitted to the shareholders of Taurus MuniNew York Holdings,
Inc. for their information. It is not a prospectus, circular or
representation intended for use in the purchase of shares of the
fund or any securities mentioned in the report. Past performance
results shown in this report should not be considered a
representation of future performance. The fund has leveraged its
Common Stock by issuing Preferred Stock to provide the Common Stock
shareholders with a potentially higher rate of return. Leverage
creates risks for Common Stock shareholders, including the
likelihood of greater volatility of net asset value and market price
of shares of the Common Stock, and the risk that fluctuations in the
short-term dividend rates of the Preferred Stock may affect the
yield to Common Stock shareholders.
Taurus MuniNew York Holdings, Inc.
Box 9011
Princeton, NJ
08543-9011
Taurus MuniNew York Holdings, Inc.
TO OUR SHAREHOLDERS
For the year ended October 31, 1994, the Common Stock of Taurus
MuniNew York Holdings, Inc. earned $0.772 per share income
dividends, which includes earned and unpaid dividends of $0.065.
This represents a net annualized yield of 6.93%, based on a month-
end net asset value of $11.18 per share. Over the same period, the
total investment return on the fund's Common Stock was -7.78%, based
on a change in per share net asset value from $13.23 to $11.18, and
assuming reinvestment of $0.778 per share income dividends and
$0.281 per share capital gains distributions.
<PAGE>
For the six-month period ended October 31, 1994, the total
investment return on the fund's Common Stock was -1.82%, based on a
change in per share net asset value from $11.79 to $11.18, and
assuming reinvestment of $0.387 per share income dividends.
For the six-month period ended October 31, 1994, the fund's Auction
Market Preferred Stock had an average yield of 2.921%.
The Environment
As discussed in our last report to shareholders, the Federal Reserve
Board moved to counteract inflationary pressures by tightening
monetary policy. This trend continued during the May--October
period. Despite the series of preemptive strikes against inflation
by the central bank, concerns of increasing inflationary pressures
continued to prompt volatility in the US capital markets during the
period. In addition, the weakness of the US dollar in foreign
exchange markets prolonged stock and bond market declines.
Ongoing strength in the manufacturing sector and better-than-
expected economic results continue to fuel speculation that the
Federal Reserve Board will continue to raise short-term interest
rates in the months ahead. However, although consumer spending is
increasing, it is doing so at a lower rate than has been the case in
recent economic recoveries. In the weeks ahead, investors will
continue to assess economic data and inflationary trends in order to
gauge whether further increases in short-term interest rates are
imminent. Continued indications of moderate and sustainable levels
of economic growth would be positive for the US capital markets. At
the same time, greater US dollar stability in foreign exchange
markets would help to dampen expectations of significantly higher
short-term interest rates.
The Municipal Market
The long-term tax-exempt market continued to erode throughout the
three months ended October 31, 1994. As measured by the Bond Buyer
Revenue Bond Index, yields on A-rated municipal revenue bonds
maturing in 30 years rose by almost 50 basis points (0.50%) to 6.95%
during the October 31, 1994 quarter. This represents the highest
level in tax-exempt bond yields in over two years. US Treasury bonds
suffered even greater declines during the quarter as Treasury bond
yields rose approximately 60 basis points to end the quarter at
8.00%.
<PAGE>
The tax-exempt bond market reacted negatively throughout the October
quarter to indications that, despite a series of interest rate
increases by the Federal Reserve Board, the strength of the domestic
economy seen in recent quarters has not yet been significantly
reduced. While inflationary pressures have remained well contained,
additional Federal Reserve Board actions have been expected both to
ensure that domestic economic growth is eventually confined to
current levels and to assure nervous financial markets of its anti-
inflationary intentions.
Fortunately, while the demand for tax-exempt bonds has declined
somewhat in recent months, new bond issuance has remained greatly
reduced. During the quarter ended October 31, 1994, only $32 billion
in long-term tax-exempt securities were issued, a decline of over
50% versus the October 31, 1993 quarter. Similarly, for the six
months ended October 31, 1994, only $75 billion in municipal
securities were underwritten, a decline of over 50% versus the
comparable period a year earlier. This reduction in issuance in
recent quarters has allowed the municipal bond market to react to
both the decline in investor demand and the rise in fixed-income
yields in a more orderly fashion than in similar situations in the
past, particularly during 1987.
Long-term tax-exempt revenue bonds currently yield approximately 7%,
or almost 11.5% on an after-tax equivalent basis, to an investor in
the 39.6% Federal income tax bracket. As inflation has only
marginally increased in the past year, real tax-exempt interest
rates have risen dramatically. The Federal Reserve Board appears
committed to maintaining inflation at or below its current levels.
Indeed, most forecasts expect inflation to remain in its present
range of 3%--4% throughout 1995 and, potentially, for the remainder
of the 1990s. Real after-tax equivalent interest rates exceeding 7%
represent historically attractive municipal investments for long-
term investors.
<PAGE>
Federal Reserve Board actions taken thus far have yet to fully
impact US domestic growth and expected additional actions should
promote only a modest economic expansion within a benign
inflationary context beginning sometime early in 1995. Within such
an environment, it is unlikely that tax-exempt interest rates will
remain at their current attractive levels. Tax-exempt bond issuance
is unlikely to return to the historic high levels seen in 1992 and
1993, while investor demand should return as markets stabilize. As
we have discussed in earlier reports, the total number of tax-exempt
bonds outstanding is scheduled to decline dramatically in 1994 and
1995 as a result of both regular bond maturities and early
redemptions. Investors seeking tax-advantaged issues are likely to
find it very difficult to obtain currently available tax-exempt
yields as the current supply/demand balance is unlikely to be
maintained in the coming quarters.
Portfolio Strategy
During the beginning of the fourth quarter of 1993, as long-term
interest rates declined to cyclical lows, we increased the fund's
cash reserves to position the portfolio more defensively in the
event of a stronger-than-anticipated economic recovery. As the first
quarter of 1994 unfolded, it appeared that accelerating economic
activity was leading to higher interest rates. In fact, tax-exempt
interest rates increased from 5.6% at year end to 6.4% by the end of
the quarter. During this period, we continued to raise cash reserves
by selling discounted holdings and purchasing higher coupon, shorter
maturity bonds. During the second quarter of 1994, the municipal
market was relatively stable, although a brief decline in interest
rates in May gave us an opportunity to continue our strategy of
switching to higher coupon, shorter maturity bonds. We increased the
fund's cash position at the end of the quarter in anticipation of a
surge in issuance pending the state legislature's delayed passage of
the annual budget. Issuance did surge at the start of the third
quarter but the increase was short lived.
Recently we have maintained a relatively low cash position of about
7% of net assets for two reasons. First, the decline in new issuance
has been dramatic both for the overall municipal market and
especially for the New York market, which declined by 43%. We also
anticipated a more severe decline in issuance in the third quarter
of 1994. For the three-month period ended September 30, 1994, volume
declined over 50% from the prior year.
The other reason for a relatively low cash position is the steepness
of the yield curve. With short-term interest rates at 3.00% for one-
month commercial paper and long-term interest rates in excess of
6.50%, we believe it is beneficial to maintain longer-term
investments for income purposes. To offset market volatility, we
have only added holdings in the 15-year maturity range. We expect
these bonds to be less volatile than the typical 30-year maturities
purchased in the past.
<PAGE>
Our focus for the past year was to maintain an attractive level of
income for Common Stock shareholders. By keeping our cash position
at lower levels and by purchasing higher coupon, shorter maturity
issues, we were able to do so.
We appreciate your ongoing interest in Taurus MuniNew York Holdings,
Inc., and we look forward to assisting you with your financial needs
in the months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
November 25, 1994
THE BENEFITS AND RISKS OF LEVERAGING
Taurus MuniNew York Holdings, Inc. utilizes leveraging to seek to
enhance the yield and net asset value of its Common Stock. However,
these objectives cannot be achieved in all interest rate
environments. To leverage, the fund issues Preferred Stock, which
pays dividends at prevailing short-term interest rates, and invests
the proceeds in long-term municipal bonds. The interest earned on
these investments is paid to Common Stock shareholders in the form
of dividends, and the value of these portfolio holdings is reflected
in the per share net asset value of the fund's Common Stock.
However, in order to benefit Common Stock shareholders, the yield
curve must be positively sloped; that is, short-term interest rates
must be lower than long-term interest rates. At the same time, a
period of generally declining interest rates will benefit Common
Stock shareholders. If either of these conditions change, then the
risks of leveraging will begin to outweigh the benefits.
To illustrate these concepts, assume a fund's Common Stock
capitalization of $100 million and the issuance of Preferred Stock
for an additional $50 million, creating a total value of $150
million available for investment in long-term municipal bonds. If
prevailing short-term interest rates are approximately 3% and long-
term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million
of Preferred Stock based on the lower short-term interest rates. At
the same time, the fund's total portfolio of $150 million earns the
income based on long-term interest rates.
<PAGE>
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term
investments, and therefore the Common Stock shareholders are the
beneficiaries of the incremental yield. However, if short-term
interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental yield pick-up on the
Common Stock will be reduced. At the same time, the market value of
the fund's Common Stock (that is, its price as listed on the New
York Stock Exchange) may, as a result, decline. Furthermore, if long-
term interest rates rise, the Common Stock's net asset value will
reflect the full decline in the price of the portfolio's
investments, since the value of the fund's Preferred Stock does not
fluctuate. In addition to the decline in net asset value, the market
value of the fund's Common Stock may also decline.
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid monthly by
Taurus MuniNew York Holdings, Inc. during its taxable year ended
October 31, 1994 qualify as tax-exempt interest dividends for
Federal income tax purposes. Additionally, the following table
summarizes the per share capital gain distributions paid by the fund
during the year:
<TABLE>
<CAPTION>
Payable Short-Term Long-Term
Date Capital Gains Capital Gains
<S> <C> <C> <C>
Common Stock Shareholders 12/30/93 -- $ 0.280938
Preferred Stock Shareholders 12/29/93 -- $153.42
1/26/94 -- $134.25
2/23/94 -- $112.77
3/23/94 -- $ 4.83
Please retain this information for your records.
</TABLE>
<PAGE>
PORTFOLIO ABBREVIATIONS
To simplify the listings of Taurus MuniNew York Holdings, Inc.'s
portfolio holdings in the Schedule of Investments, we have
abbreviated the names of many of the securities according to the
list at right.
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
GO General Obligation Bonds
HFA Housing Finance Authority
IDA Industrial Development Authority
M/F Multi-Family
PCR Pollution Control Revenue Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note la)
New York--93.4%
<S> <S> <C> <S> <C>
AAA Aaa $ 2,000 Albany, New York, Municipal Water Finance Authority, Water and Sewer System
Revenue Refunding Bonds, Series A, 5.50% due 12/01/2022 (c) $ 1,678
Buffalo, New York, Sewer Authority Revenue Bonds (c):
AAA Aaa 1,900 Refunding, Series G, 5% due 7/01/2012 1,560
AAA Aaa 1,600 Series F, 6% due 7/01/2013 1,517
New York City, New York, GO:
A- Baa1 1,500 Series C, 5.50% due 10/01/2016 1,214
A- Baa1 2,285 UT, Series D, 8% due 8/01/2001 (f) 2,627
A- Baa1 2,000 UT, Series D, 9.50% due 8/01/2002 2,404
AAA Aaa 5,000 New York City, New York, Health and Hospital Authority, Revenue Refunding
Bonds (Local Government), Series A, 5.75% due 2/15/2022 (b) 4,281
NR* Aa 1,760 New York City, New York, Housing Development Corporation, Mortgage Revenue
Bonds (South Bronx Co-ops), AMT, Series A, 8.10% due 9/01/2023 1,848
A1+ NR* 4,900 New York City, New York, IDA, Civic Facility Revenue Bonds (National Audubon
Society), VRDN, 3.30% due 12/01/2014 (a) 4,900
BB+ Baa2 2,000 New York City, New York, IDA, Special Facilities Revenue Bonds (American
Airlines, Inc.), AMT, 7.75% due 7/01/2019 2,023
A A 1,000 New York City, New York, IDA, Special Facility Revenue Bonds (Terminal One
Group Association Project), AMT, 6.125% due 1/01/2024 894
<PAGE>
New York City, New York, Municipal Water Finance Authority, Water and System
Revenue Bonds:
SP-1 MIG1++ 300 BAN, Series A, 3.75% due 12/15/1994 300
A1+ VMIG1 2,000 VRDN, Series C, 3.55% due 6/15/2022 (a)(c) 2,000
AA A1 3,000 New York Housing Corporation, Revenue Refunding Bonds, Senior, 5% due
11/01/2013 2,448
New York State Dormitory Authority Revenue Bonds:
BBB Baa1 2,335 (City University System), Series A, 9.25% due 7/01/2000 2,736
BBB Baa1 1,000 (City University System), Series D, 7% due 7/01/2009 1,016
A1+ VMIG1 2,600 (Cornell University), VRDN, Series B, 3.30% due 7/01/2025 (a) 2,600
BBB+ Baa1 3,985 (Court Facilities Lease), Series A, 5.50% due 5/15/2010 3,434
BBB+ Baa1 1,500 (Court Facilities Lease), Series A, 5.25% due 5/15/2021 1,163
AAA Aa 5,000 Refunding (Long Island Medical Center), Series A, 7.75% due 8/15/2027 (d) 5,377
BBB- Baa1 1,000 (State University Athletic Facilities), 7.25% due 7/01/2021 1,013
BBB- Baa1 4,645 (Upstate Community College), Series A, 5.40% due 7/01/2009 4,017
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note la)
New York (concluded)
<S> <S> <C> <S> <C>
AAA Aaa $ 2,700 New York State Energy, Research and Development Authority Facilities
Revenue Bonds (Con Edison Company, Inc.), AMT, Series A, 6.75% due
1/15/2027 (e) $ 2,661
New York State Environmental Facilities Corporation:
A Aa 4,350 PCR (Water-Revolving Fund), Series E, 6.875% due 6/15/2010 4,485
BBB NR* 4,000 Special Obligation Bonds (Riverbank State Park), 7.375% due 4/01/2022 4,137
New York State HFA:
AAA Aaa 2,230 M/F Housing Revenue Bonds, AMT, Series A, 7.75% due 11/01/2020 (b) 2,341
BBB Baa1 2,500 Service Contract Obligation Revenue Bonds, Series C, 6.30% due 3/15/2022 2,288
A A 8,000 New York State Local Government Assistance Corporation, Series B, 6% due
4/01/2012 7,436
New York State Medical Care Facilities Finance Agency Revenue Bonds:
AAA Aaa 2,000 (Long-Term Health Care), Series D, 6.50% due 11/01/2015 (g) 1,953
BBB+ Baa1 2,330 (Mental Health Services Facilities Improvement), Series F, 6.50% due
8/15/2012 2,210
AAA Aaa 580 (Mental Health Services), Series A, 7.75% due 2/15/2000 (f) 651
AAA Aaa 530 (Mental Health Services), Series A, 7.75% due 2/15/2020 (e) 571
AA Aa 1,040 (Presbyterian Hospital Insured Mortgage), Series A, 7.70% due 8/15/2000
(d)(f) 1,173
AA Aa 4,025 (The Hospital for Special Surgery), Series A, 6.375% due 8/15/2024 (d) 3,793
<PAGE>
New York State Mortgage Agency, Homeownership Revenue Bonds:
NR* Aa 5,750 AMT, Series HH-3, 7.95% due 4/01/2022 5,931
NR* Aa 1,100 Series EE-2, 7.50% due 4/01/2016 1,132
New York State Urban Development Corporation Revenue Bonds (Correctional
Capital Facilities):
BBB Baa1 1,000 Refunding, Series A, 5.25% due 1/01/2021 773
NR* Aaa 5,000 Series 1, 7.75% due 1/01/2000 (f) 5,600
Puerto Rico--2.3%
A-1 VMIG1 200 Puerto Rico Commonwealth, Government Development Bank
Revenue Refunding Bonds, VRDN, 3.10% due 12/01/2015 (a) 200
BBB Baa1 2,000 Puerto Rico Commonwealth, Urban Renewal and Housing Corporation,
Commonwealth Appropriation Refunding Bonds, 7.875% due 10/01/2004 2,178
Total Investments (Cost--$100,975)--95.7% 100,563
Other Assets Less Liabilities--4.3% 4,512
--------
Net Assets--100.0% $105,075
========
<FN>
*Not Rated.
(a)The interest rate is subject to change periodically based upon
the prevailing market rate.
The interest rate shown is the rate in effect at October 31, 1994.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)FHA Insured.
(e)MBIA Insured.
(f)Prerefunded.
(g)Capital Guaranty Insured.
++Highest short-term rating issued by Moody's Investors Service,
Inc.
Ratings of issues shown have not been audited by Ernst & Young LLP.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of October 31, 1994
<CAPTION>
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$100,975,097) (Note 1a) $100,563,036
Receivables:
Securities sold $ 3,385,213
Interest 1,663,542 5,048,755
------------
Deferred organization expenses (Note 1e) 3,101
Prepaid expenses and other assets 4,404
------------
Total assets 105,619,296
------------
Liabilities: Payables:
Dividends to shareholders (Note 1g) 216,623
Investment adviser (Note 2) 45,138 261,761
------------
Accrued expenses and other liabilities 282,885
------------
Total liabilities 544,646
------------
Net Assets: Net assets $105,074,650
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (600 shares of AMPS*
issued and outstanding at $50,000 per share liquidation preference) $ 30,000,000
Common Stock, par value $.10 per share (6,714,921 shares issued
and outstanding) $ 671,492
Paid-in capital in excess of par 73,699,373
Undistributed investment income--net 728,406
Undistributed realized capital gains on investments--net 387,440
Unrealized depreciation on investments--net (412,061)
------------
Total--Equivalent to $11.18 net asset value per share of Common Stock
(market price--$9.875) 75,074,650
------------
Total capital $105,074,650
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFOMATION (continued)
<PAGE>
<TABLE>
Statment of Operations
<CAPTION>
For the Year Ended October 31, 1994
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 6,989,531
Income
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 560,872
Commission fees (Note 4) 75,816
Professional fees 70,850
Transfer agent fees 40,606
Accounting services (Note 2) 31,544
Printing and shareholder reports 28,901
Directors' fees and expenses 21,759
Listing fees 20,794
Amortization of organization expenses (Note 1e) 12,470
Custodian fees 10,616
Pricing fees 5,970
Other 19,396
------------
Total expenses 899,594
------------
Investment income--net 6,089,937
------------
Realized & Realized gain on investments 387,440
Unrealized Change in unrealized appreciation on investments--net (12,168,706)
Gain (Loss) on ------------
Investments Net Decrease in Net Assets Resulting from Operations $ (5,691,329)
- --Net (Notes ============
1d & 3):
</TABLE>
<TABLE>
Statements of Changes in Net Assets
For the Year Ended October 31,
Increase (Decrease) in Net Assets: 1994 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 6,089,937 $ 6,507,617
Realized gain on investments--net 387,440 2,479,543
Change in unrealized appreciation/depreciation on investments--net (12,168,706) 5,837,220
------------ ------------
Net increase (decrease) in net assets resulting from operations (5,691,329) 14,824,380
------------ ------------
<PAGE>
Dividends & Investment income--net:
Distributions to Common Stock (5,206,728) (5,763,590)
Shareholders Preferred Stock (687,618) (751,164)
(Note 1g): Realized gain on investments--net:
Common Stock (1,863,445) --
Preferred Stock (243,162) --
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (8,000,953) (6,514,754)
------------ ------------
Common Stock Value of shares issued to Common Stock shareholders in reinvestment
Transactions of dividends and distributions 1,213,609 2,096,519
(Note 4): Value of shares tendered -- (628,138)
------------ ------------
Net increase in net assets derived from capital stock transactions 1,213,609 1,468,381
------------ ------------
Net Assets: Total increase (decrease) in net assets (12,478,673) 9,778,007
Beginning of year 117,553,323 107,775,316
------------ ------------
End of year* $105,074,650 $117,553,323
============ ============
*Undistributed investment income--net $ 728,406 $ 532,815
============ ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<PAGE>
<TABLE>
Financial Highlights
<CAPTION>
For the
Period
The following per share data and ratios have been derived Feb. 1,
from information provided in the financial statements. 1990++ to
For the Year Ended October 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.23 $ 11.95 $ 11.64 $ 10.76 $ 11.16
Operating -------- -------- -------- ------- --------
Performance: Investment income--net .91 .99 1.05 1.06 .72
Realized and unrealized gain (loss) on
investments--net (1.76) 1.28 .32 .88 (.30)
-------- -------- -------- ------- --------
Total from investment operations (.85) 2.27 1.37 1.94 .42
-------- -------- -------- ------- --------
Less dividends and distributions to Common
Stock shareholders:
Investment income--net (.78) (.88) (.90) (.83) (.52)
Realized gain on investments--net (.28) -- -- -- --
-------- -------- -------- ------- --------
Total dividends and distributions (1.06) (.88) (.90) (.83) (.52)
-------- -------- -------- ------- --------
Capital charge resulting from issuance of
Common Stock -- -- -- -- (.05)
-------- -------- -------- ------- --------
Effect of Preferred Stock activity:
Dividends and distributions to Preferred
Stock shareholders:
Investment income--net (.10) (.11) (.16) (.23) (.12)
Realized gain on investments--net (.04) -- -- -- --
Capital charge resulting from issuance of
Preferred Stock -- -- -- -- (.13)
-------- -------- -------- ------- --------
Total effect of Preferred Stock activity (.14) (.11) (.16) (.23) (.25)
-------- -------- -------- ------- --------
Net asset value, end of period $ 11.18 $ 13.23 $ 11.95 $ 11.64 $ 10.76
======== ======== ======== ======== ========
Market price per share, end of period $ 9.875 $ 14.25 $ 12.75 $ 12.00 $ 10.25
======== ======== ======== ======== ========
Total Based on market price per share (24.38%) 19.63% 14.36% 26.04% (10.44%)+++
Investment ======== ======== ======== ======== ========
Return:** Based on net asset value per share (7.78%) 18.50% 10.50% 16.46% 1.09%+++
======== ======== ======== ======== ========
Ratios to Expenses, net of reimbursement .80% .86% .82% .86% .75%*
Average ======== ======== ======== ======== ========
Net Assets:*** Expenses .80% .86% .82% .86% .88%*
======== ======== ======== ======== ========
Investment income--net 5.40% 5.82% 6.37% 6.70% 6.90%*
======== ======== ======== ======== ========
<PAGE>
Supplemental Net assets, net of Preferred Stock, end
Data: of period (in thousands) $ 75,075 $ 87,553 $ 77,775 $ 73,721 $ 66,711
======== ======== ======== ======== ========
Preferred Stock outstanding, end of
period (in thousands) $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
======== ======== ======== ======== ========
Portfolio turnover 65.74% 34.31% 20.18% 35.80% 59.18%
======== ======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns based on market value, which can
be significantly greater or lesser than the net asset value,
may result in substantially different returns. Total investment
returns exclude the effect of sales loads.
***Do not reflect the effect of dividends to Preferred Stock shareholders.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Taurus MuniNew York Holdings, Inc. (the "Fund") is registered under
the Investment Company Act of 1940 as a non-diversified, closed-end
management investment company. The Fund determines and makes
available for publication the net asset value of its Common Stock on
a weekly basis. The Fund's Common Stock is listed on the New York
Stock Exchange under the symbol MNY. The following is a summary of
significant accounting policies followed by the Fund.
<PAGE>
(a) Valuation of investments--Municipal bonds are traded primarily
in the over-the-counter market and are valued at the most recent bid
price or yield equivalent as obtained by the Fund's pricing service
from dealers that make markets in such securities. Financial futures
contracts, which are traded on exchanges, are valued at their
closing prices as of the close of such exchanges. Options, which are
traded on exchanges, are valued at their last sale price as of the
close of such exchanges or, lacking any sales, at the last available
bid price. Short-term securities with a remaining maturity of sixty
days or less are valued at amortized cost, which approximates market
value. Securities for which market quotations are not readily
available are valued at their fair value as determined in good faith
by or under the direction of the Board of Directors of the Fund
including valuations furnished by a pricing service retained by the
Fund which may utilize a matrix system for valuations. The
procedures of the pricing service and its valuations are reviewed by
the officers of the Fund under the general supervision of the
Directors.
(b) Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures
contracts for the purpose of hedging the market risk on existing
securities or the intended purchase of securities. Futures contracts
are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a
contract, the Fund deposits and maintains as collateral such initial
margins as required by the exchange on which the transaction is
effected. Pursuant to the contract, the Fund agrees to receive from
or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are
known as variation margin and are recorded by the Fund as unrealized
gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time it
was closed.
(c) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income is recognized on the accrual
basis. Discounts and market premiums are amortized into interest
income. Realized gains and losses on security transactions are
determined on the identified cost basis.
(e) Deferred organization expenses--Deferred organization expenses
are amortized on a straight-line basis over a five-year period.
<PAGE>
(f) Non-income producing investments--Written and purchased options
are non-income producing investments.
(g) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). Effective January 1, 1994, the
investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of ML & Co. The limited partners are ML & Co. and Fund
Asset Management, Inc. ("FAMI"), which is also an indirect wholly-
owned subsidiary of ML & Co. FAM is responsible for the management
of the Fund's portfolio and provides the necessary personnel,
facilities, equipment and certain other services necessary to the
operations of the Fund. For such services, the Fund pays a monthly
fee at an annual rate of 0. 50% of the Fund's average weekly net
assets.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, FAMI, PSI, Merrill Lynch, Pierce, Fenner & Smith
Inc. ("MLPF&S"), and/or ML & Co.
NOTES TO FINANCIAL STATEMENTS (concluded)
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended October 31, 1994 were $69,439,391 and
$82,224,905, respectively.
Net realized and unrealized gains (losses) as of October 31, 1994
were as follows:
Realized Gains Unrealized
(Losses) Losses
Long-term investments $ 263,952 $ (411,731)
Short-term investments (5,465) (330)
Financial future contracts 128,953 --
----------- -----------
Total $ 387,440 $ (412,061)
=========== ===========
<PAGE>
As of October 31, 1994, net unrealized depreciation for Federal
income tax purposes aggregated $412,061, of which $3,016,688 related
to appreciated securities and $3,428,749 related to depreciated
securities. The aggregate cost of investments at October 31, 1994
for Federal income tax purposes was $100,975,097.
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of capital stock,
including Preferred Stock, par value $.10 per share, all of which
were initially classified as Common Stock. The Board of Directors is
authorized, however, to reclassify any unissued shares of capital
stock without approval of the holders of Common Stock.
Common Stock
For the year ended October 31, 1994, shares issued and outstanding
increased by 94,649 to 6,714,921 as a result of dividend
reinvestment. At October 31, 1994, total paid-in capital amounted to
$74,370,865.
Preferred Stock Auction Market Preferred Stock ("AMPS") are shares
of Preferred Stock of the Fund that entitle their holders to receive
cash dividends at an annual rate that may vary for the successive
dividend periods. The yield in effect at October 31, 1994 was 2.90%.
For the year ended October 31, 1994, there were 600 AMPS shares
authorized, issued and outstanding with a liquidation preference of
$50,000 per share plus accumulated and unpaid dividends of $149,885.
Effective December 1, 1994, as a result of a two-for-one stock split
there will be 1,200 AMPS shares with a liquidation preference of
$25,000 per share.
The Fund pays commissions to certain broker-dealers at the end of
each auction at the annual rate ranging from 0.25% to 0.375%
calculated on the proceeds of each auction.
For the year ended October 31, 1994, MLPF&S, an affiliate of Merrill
Lynch Investment Management, Inc., earned $61,508 as commissions.
5. Subsequent Event:
On November 18, 1994, the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the amount
of $.065227 per share, payable on November 29, 1994 to shareholders
of record as of November 18, 1994.
<AUDIT-REPORT>
REPORT OF INDEPENDENT AUDITORS
<PAGE>
To the Shareholders and Board of Directors,
Taurus MuniNew York Holdings, Inc.:
We have audited the accompanying statement of assets, liabilities
and capital of Taurus MuniNew York Holdings, Inc., including the
schedule of investments, as of October 31, 1994, and the related
statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then
ended and the financial highlights for each of the periods indicated
therein. 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 audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned as of
October 31, 1994, by correspondence with the custodian. 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 Taurus MuniNew York Holdings, Inc. at October
31, 1994, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the indicated
periods, in conformity with generally accepted accounting
principles.
(Ernst & Young LLP)
New York, New York
December 2, 1994
</AUDIT-REPORT>
<PAGE>
<TABLE>
PER SHARE SELECTED QUARTERLY FINANCIAL DATA* (unaudited)
<CAPTION>
Dividends/Distributions
Net Realized Unrealized
Investment Gains Gains Net Investment Income Capital Gains
For the Quarter Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
November 1, 1992 to January 31, 1993 $0.25 $ 0.01 $ 0.39 $0.22 $0.04 -- --
February 1, 1993 to April 30, 1993 0.26 0.06 0.31 0.22 0.03 -- --
May 1, 1993 to July 31, 1993 0.24 0.28 (0.12) 0.22 0.02 -- --
August 1, 1993 to October 31, 1993 0.24 0.03 0.31 0.22 0.02 -- --
November 1, 1993 to January 31, 1994 0.24 0.32 (0.14) 0.14 0.02 $0.28 $0.02
February 1, 1994 to April 30, 1994 0.21 0.06 (1.38) 0.25 0.01 -- 0.02
May 1, 1994 to July 31, 1994 0.22 0.00 0.14 0.19 0.03 -- --
August 1, 1994 to October 31, 1994 0.24 (0.33) (0.43) 0.20 0.04 -- --
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
November 1, 1992 to January 31, 1993 $12.34 $11.94 $13.75 $12.625 204
February 1, 1993 to April 30, 1993 12.94 12.34 14.50 12.75 500
May 1, 1993 to July 31, 1993 13.01 12.66 14.75 13.125 311
August 1, 1993 to October 31, 1993 13.39 12.90 14.50 13.625 256
November 1, 1993 to January 31, 1994 13.30 12.86 14.25 12.00 319
February 1, 1994 to April 30, 1994 13.09 11.48 13.375 11.00 317
May 1, 1994 to July 31, 1994 12.24 11.64 11.875 11.125 249
August 1, 1994 to October 31, 1994 11.97 11.18 11.375 9.75 469
<FN>
*Calculations are based upon shares of Common
Stock outstanding at the end of each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
