Taurus MuniNew York Holdings, Inc.
Semi-Annual
Report
April 30, 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
Joseph P. Darcy, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
110 Washington Street
New York, New York 10286
Transfer Agents
Common Stock:
The Bank of New York
110 Washington Street
New York, New York 10286
<PAGE>
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 re-
port. 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 po-
tentially 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 six-month period ended April 30, 1994, the Common Stock
of Taurus MuniNew York Holdings, Inc. earned $0.383 per share
income dividends, which includes earned and unpaid dividends of
$0.062. This represents a net annualized yield of 6.54%, based on
a month-end net asset value of $11.79 per share. Over the same
period, the total investment return on the fund's Common Stock
was -6.07%, based on a change in per share net asset value from
$13.23 to $11.79, including $0.391 per share income dividends and
$0.281 per share capital gains distributions.
<PAGE>
For the six-month period ended April 30, 1994, the fund's Auction
Market Preferred Stock had an average yield of 2.93%.
The Environment
Inflationary expectations and investor sentiment changed for the
worse during the three-month period ended April 30, 1994.
Following stronger-than-expected economic results through year-
end 1993, the Federal Reserve Board broke with tradition on
February 4, 1994 and publicly announced a modest 25 basis point
(0.25%) increase in short-term interest rates. At the March 22,
1994 meeting of the Federal Open Market Committee, the Federal
Reserve Board again raised the Federal Funds rate by 25 basis
points, followed by another 25 basis point increase on April 18,
1994.
Rather than view the Federal Reserve Board's first tightening
move as a preemptive strike against inflation, fixed-income
investors focused on Chairman Greenspan's implicit promise of
further tightening should the rate of inflation accelerate, and
bond prices declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While the
second and third increases in the Federal Funds rate were less of
a surprise, investors remained concerned that interest rates
would trend upward sharply as the central bank aggressively
attempted to contain the inflationary pressures of an improving
economy. At the same time, highly leveraged investors were forced
to liquidate positions in the face of declining stock and bond
prices. Investor confidence was not restored with the announce-
ment of the surprisingly slow 2.6% gross domestic product
growth rate for the first calendar quarter of 1994. Instead,
investors focused on the higher-than-expected (but still
moderate) broad inflation measures and became concerned that
business activity was beginning to stagnate as inflationary
pressures were increasing.
The volatility in the US capital markets was mirrored in inter-
national markets during the period. Political and economic
developments, along with concerns of heightened global infla-
tionary pressures, led to a sell-off in most capital markets,
especially the emerging markets that had appreciated strongly
in 1993.
<PAGE>
The Municipal Market
During the six months ended April 30, 1994, tax-exempt bond
yields exhibited considerable volatility as they rose to their
highest level in the past two years. As measured by the Bond
Buyer Revenue Bond Index, the yield on newly issued municipal
bonds maturing in 30 years rose over 90 basis points to 6.42% by
the end of April. Yields on seasoned municipal revenue bonds rose
by over 100 basis points in sympathy with the equally dramatic
increase in US Treasury bond yields. By the end of April, the
yields on US Treasury securities rose by over 95 basis points to
approximately 7.30%.
Long-term tax-exempt bond yields were essentially unchanged from
the end of October 1993 to the end of January 1994. However, on a
weekly basis, tax-exempt bond yields fluctuated by as much as 15
basis points as investors were unable to reconcile the rapid
economic growth seen late last year with continued low inflation.
Following the initial interest rate increase by the Federal
Reserve Board in early February, municipal bond prices began to
erode in concert with taxable bond prices as investors began to
sell securities in anticipation of further interest rate increases.
This fear led investors to withdraw from the tax-exempt market.
From early February to the end of March, total assets of all tax-
exempt bond funds declined by $14 billion to $247 billion. This
decline in investor demand, coupled with fears that the robust
economic recovery seen during the fourth quarter of 1993 would
continue well into 1994, helped push municipal bond yields high-
er in February and March. Attracted by tax-exempt yields in
excess of 6.25%, investor demand returned in April, allowing
yields to decline approximately 15 basis points to end the
April period at approximately 6.40%.
A rise in tax-exempt bond yields the magnitude of that exper-
ienced over the past six months has not been seen since 1987
when municipal bond rates rose 250 basis points between March and
October of that year. It is very important to note that the
recent municipal bond price declines were largely the result of
consistent and insistent selling pressures over the last two
months. In 1987, the tax-exempt bond market was much more
volatile and, at times, chaotic as investors sought to liquidate
positions without concern for fundamental value. For the most
part, the recent price deterioration has been orderly, and the
municipal bond market's liquidity and integrity have not been
challenged or jeopardized.
<PAGE>
To a large extent, the municipal bond market has continued to be
supported by its strong technical position. New-issue volume for
the last six months has been less than $105 billion. This
represents a decline of approximately 20% versus the comparable
period a year ago. This decline was expected and has been
discussed in previous shareholder reports. This reduced issuance
has minimized potential selling pressure in recent months since
institutional investors have been wary of selling appreciable
amounts of securities that they may be unable to replace later
this year at any price level. We expect this decline in issuance
to continue since we anticipate recent yield increases to sig-
nificantly impact future municipal bond issuance. Just as higher
mortgage rates slow home mortgage refinancings, the recent rise
in bond yields will prevent bond refinancings from becoming the
driving force in bond issuance in 1994 as they were in 1993.
Despite recent price declines, tax-exempt securities remain among
the most attractive investment alternatives available. After the
recent yield increases, longer-term municipal securities yielded
approximately 90% of comparable US Treasury yields. Purchasers of
these municipal bonds also accrue substantial after-tax yield
advantages. To investors in the 39% marginal Federal income tax
bracket, the purchase of a municipal bond yielding 6.50% rep-
resents an after-tax equivalent of 10.65%. With prevailing
estimates of 1994 inflation at no more than 3%--4%, real after-
tax rates in excess of 6.50% easily compensate longer-term
investors for much of the price volatility recently experienced.
<PAGE>
Portfolio Strategy
During the six months ended April 30, 1994, the New York sector
of the tax-exempt arena closely mirrored, and in some instances
exceeded, the volatility witnessed in the municipal market in
general. Faced with the same factors that weighed on the market
as a whole, the relative performance of New York tax-exempt
issues was further hindered by a significant increase in the
volume of securities offered for sale by New York State, New York
City and each of their respective political subdivisions. While
national issuance during the period contracted by more than 19%
as compared to the same period of last year, volume of New York
tax-exempt securities increased by more than 45%, soaring to over
$16 billion and representing the largest single-state issuer of
debt in the nation. As such, while general market municipal bonds
found a certain measure of support in the positive technical
foundation underlying their trading, New York tax-exempt issues
were forced to adjust at various points to levels which enabled
both local and national investors to absorb the supply. Mit-
igating these adjustments in yields was the adoption on the
part of investors of a more positive outlook for the fundamental
credit prospects within the State as both the national and
regional economies continue to show signs of improvement.
Portfolio decisions throughout the six months were guided by a
decidedly conservative posture. While the fund maintained an
almost fully invested stance throughout the period, its structure
at the start of the period was less aggressive than general mar-
ket fundamentals may have warranted. As the issuance witnessed
during the period began and the forward outlook for interest
rates in general became more uncertain, our trading activity
sought to capitalize on the opportunities inherent in such an
environment by drawing down the fund's average portfolio matur-
ity and shifting its focus toward the generation of tax-exempt
income. Issues used to facilitate this objective were those
deemed to possess strong qualities of protection from redemption
prior to maturity and superior qualities of creditworthiness
relative to the universe of New York tax-exempt bonds.
In Conclusion
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
<PAGE>
May 26, 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.
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 share-
holders 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 Pre-
ferred 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.
<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 below and at right.
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
GO General Obligation Bonds
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
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 1a)
New York--100.8%
<S> <S> <C> <S> <C>
AAA Aaa $ 2,000 Albany, New York, Municipal Water Finance Authority, Water and Sewer Systems
Revenue Refunding Bonds, Series A, 5.50% due 12/01/2022 (c) $ 1,803
Buffalo, New York, Sewer Authority Revenue Bonds (c):
AAA Aaa 1,900 Refunding, Series G, 5% due 7/01/2012 1,674
AAA Aaa 1,600 Series F, 6% due 7/01/2013 1,589
BBB Baa1 1,350 Cortland County, New York, IDA, Civic Facility Revenue Bonds (Cortland Memorial
Hospital Inc. Project), 6.25% due 7/01/2024 1,265
BBB Baa1 2,000 Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding
Bonds (Transit Facilities), Series 7, 4.75% due 7/01/2019 1,561
New York City, New York, GO, UT:
A- Baa1 2,000 Series D, 9.50% due 8/01/2002 2,485
A- Baa1 1,225 Series D, Group C, 8% due 8/01/2001 (f) 1,445
A- Baa1 1,110 Series D, Group C, 8% due 8/01/2016 1,249
A- Baa1 3,000 Series H, 7.20% due 2/01/2014 3,197
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) 4,647
NR Aa 1,765 New York City, New York, Housing Development Corporation, Mortgage Revenue Bonds
(South Bronx Co-ops), AMT, Series A, 8.10% due 9/01/2023 1,902
<PAGE>
NR NR 600 New York City, New York, IDA, IDR (Japan Airlines Company Ltd. Project), AMT, VRDN, 3.05%
due 11/01/2015 (a) 600
BB+ Baa2 2,000 New York City, New York, IDA, Special Facility Revenue Bonds (American
Airlines, Inc.), 7.75% due 7/01/2019 2,067
New York City, New York, Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds:
SP-1 MIG1++ 3,000 BAN, Series A, 3.75% due 12/15/1994 3,009
A1+ VMIG1 300 VRDN, Series C, 2.75% due 6/15/2022 (a)(c) 300
AAA VMIG1 900 VRDN, Series C, 2.75% due 6/15/2023 (a)(c) 900
AA A1 3,000 New York Housing Corporation, Revenue Refunding Bonds, Senior, 5% due 11/01/2013 2,518
New York State Dormitory Authority Revenue Bonds:
BBB Baa1 2,335 (City University System), Series A, 9.25% due 7/01/2000 2,805
BBB Baa1 1,000 (City University System), Series D, 7% due 7/01/2009 1,074
BBB+ Baa1 3,985 (Court Facilities Lease), Series A, 5.50% due 5/15/2010 3,621
BBB+ Baa1 1,500 (Court Facilities Lease), Series A, 5.25% due 5/15/2021 1,251
BBB Baa1 1,680 Crossover, Refunding (City University), Series C, 5.75% due 7/01/2007 1,648
AAA Aa 5,000 Refunding (Long Island Medical Center), Series A, 7.75% due 8/15/2027 (d) 5,394
NR VMIG1 1,500 Refunding (Oxford University Press, Inc.), VRDN, 2.80% due 7/01/2023 (a) 1,500
BBB- Baa1 1,000 (State University Athletic Facilities), 7.25% due 7/01/2021 1,057
BBB- Baa1 4,645 (Upstate Community College), Series A, 5.40% due 7/01/2009 4,244
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
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) $ 2,773
NR NR 1,500 New York State Energy, Research and Development Authority, PCR,
Refunding (Niagara Mohawk Power Corporation), Series A, VRDN, 2.90% due 3/01/2027 (a) 1,500
A1+ NR 200 New York State Energy, Research and Development Authority Revenue Bonds
(Niagara Power Corporation Project), Series B, VRDN, AMT, 3.15% due 7/01/2027 (a) 200
New York State Environmental Facilities Corporation:
A Aa 4,350 PCR (Water-Revolving Fund), Series E, 6.875% due 6/15/2010 4,567
BBB NR 4,000 Special Obligation Bonds (Riverbank State Park), 7.375% due 4/01/2022 4,310
A1+ NR 1,000 New York State Environmental Facilities Corporation, Resource Recovery Revenue Bonds
(Huntington Project), VRDN, AMT, 2.80% due 11/01/2014 (a) 1,000
<PAGE>
New York State HFA:
AAA Aaa 2,230 M/F Housing Revenue Bonds, AMT, Series A, 7.75% due 11/01/2020 (b) 2,415
BBB Baa1 3,500 Service Contract Obligation Revenue Bonds, Series C, 6.30% due 3/15/2022 3,388
New York State Local Government Assistance Corporation, Revenue Refunding Bonds:
A A 4,955 Series B, 5.375% due 4/01/2016 4,387
A A 3,470 Series E, 5% due 4/01/2021 2,885
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) 2,044
BBB+ Baa1 2,500 (Mental Health Services Facilities Improvement), Series F, 6.50% due 8/15/2012 2,497
AAA Aaa 580 (Mental Health Services), Series A, 7.75% due 2/15/2000 (f) 665
AAA Aaa 535 (Mental Health Services), Series A, 7.75% due 2/15/2020 (e) 597
AA Aa 1,040 (Presbyterian Hospital Insured Mortgage), Series A, 7.70% due 8/15/2000 (d)(f) 1,193
New York State Mortgage Agency, Homeownership Revenue Bonds:
NR Aa 5,750 AMT, Series HH-3, 7.95% due 4/01/2022 6,123
NR Aa 1,100 Series EE-2, 7.50% due 4/01/2016 1,154
BBB Baa1 9,000 New York State Thruway Authority, Service Contract Revenue Bonds (Local Highway
and Bridge), 5.25% due 4/01/2013 7,838
NR Aaa 5,000 New York State Urban Development Corporation Revenue Bonds (Correctional Capital
Facilities), Series 1, 7.75% due 1/01/2000 (f) 5,723
Puerto Rico--2.2%
A1 VMIG1 200 Puerto Rico Commonwealth, Government Development Bank,
Revenue Refunding Bonds, VRDN, 3% 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 2,225
Total Investments (Cost--$110,963)--103.0% 112,489
Liabilities in Excess of Other Assets--(3.0%) (3,320)
---------
Net Assets--100.0% $ 109,169
=========
<FN>
(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 April 30, 1994.
(b) AMBAC Insured.
(c) FGIC Insured.
(d) FHA Insured.
(e) MBIA Insured.
(f) Prerefunded.
(g) Capital Guaranty
++ Highest short-term rating issued by Moody's Investors Service, Inc.
<PAGE>
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of April 30, 1994
<CAPTION>
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$110,963,121) (Note 1a) $ 112,489,282
Cash 929,969
Interest receivable 1,641,328
Deferred organization expenses (Note 1e) 15,571
Prepaid expenses 5,832
-------------
Total assets 115,081,982
-------------
Liabilities: Payables:
Securities purchased $ 5,661,251
Dividends to shareholders 150,054
Investment adviser (Note 2) 43,147 5,854,452
------------
Accrued expenses 58,198
-------------
Total liabilities 5,912,650
-------------
Net Assets: Net assets $ 109,169,332
=============
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 73,699,374
Undistributed investment income--net 716,294
Undistributed realized capital gains--net 2,556,011
Unrealized appreciation on investments--net 1,526,161
------------
Total--Equivalent to $11.79 net asset value per share of Common Stock
(market price--$11.00) 79,169,332
-------------
Total capital $ 109,169,332
=============
<PAGE>
<FN>
* Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended
April 30, 1994
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 3,473,817
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 284,970
Commission fees (Note 4) 36,588
Professional fees 35,506
Transfer agent fees 20,808
Accounting services (Note 2) 18,294
Printing and shareholder reports 16,077
Directors' fees and expenses 10,421
Listing fees 9,967
Amortization of organization expenses (Note 1e) 6,022
Custodian fees 5,220
Pricing fees 2,531
Other 13,127
------------
Total expenses 459,531
-------------
Investment income--net 3,014,286
-------------
Realized & Unreal- Realized gain--net 2,556,011
ized Gain (Loss) on Change in unrealized appreciation on investments--net (10,230,484)
Investments--Net -------------
(Notes 1d & 3): Net Decrease in Net Assets Resulting from Operations $ (4,660,187)
=============
</TABLE>
<PAGE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the Year
Months Ended Ended
Increase (Decrease) in Net Assets: April 30, 1994 Oct. 31,1993
<S> <S> <C> <C>
Operations: Investment income--net $ 3,014,286 $ 6,507,617
Realized gain on investments--net 2,556,011 2,479,543
Change in unrealized appreciation on investments--net (10,230,484) 5,837,220
------------ -------------
Net increase (decrease) in net assets resulting from operations (4,660,187) 14,824,380
------------ -------------
Dividends & Investment income--net:
Distributions to Common Stock (2,609,095) (5,763,590)
Shareholders Preferred Stock (221,712) (751,164)
(Note 1g): Realized gain on investments--net:
Common Stock (1,863,444) --
Preferred Stock (243,162) --
------------ -------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (4,937,413) (6,514,754)
------------ -------------
Capital 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 (8,383,991) 9,778,007
Beginning of period 117,553,323 107,775,316
------------ -------------
End of period* $109,169,332 $ 117,553,323
============ =============
<FN>
* Undistributed investment income--net $ 716,294 $ 532,815
============ =============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the For the
Six Period
The following per share data and ratios have been derived Months Feb. 1,
from information provided in the financial statements. Ended For the Year 1990++ to
April 30, 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 .45 .99 1.05 1.06 .72
Realized and unrealized gain (loss) on
investments--net (1.15) 1.28 .32 .88 (.30)
-------- -------- -------- -------- --------
Total from investment operations (.70) 2.27 1.37 1.94 .42
-------- -------- -------- -------- --------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.39) (.88) (.90) (.83) (.52)
Realized gain on investments--net (.28) -- -- -- --
-------- -------- -------- -------- --------
Capital charge resulting from issuance of Common
Stock -- -- -- -- (.05)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity++++:
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.03) (.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 (.07) (.11) (.16) (.23) (.25)
-------- -------- -------- -------- --------
Net asset value, end of period $ 11.79 $ 13.23 $ 11.95 $ 11.64 $ 10.76
======== ======== ======== ======== ========
Market price per share, end of period $ 11.00 $ 14.25 $ 12.75 $ 12.00 $ 10.25
======== ======== ======== ======== ========
Total Investment Based on market price per share (18.64%)+++ 19.63% 14.36% 26.04% (10.44%)+++
Return:** ======== ======== ======== ======== ========
Based on net asset value per share (6.07%)+++ 18.50% 10.50% 16.46% 1.09%+++
======== ======== ======== ======== ========
<PAGE>
Ratios to Average Expenses, net of reimbursement .80%* .86% .82% .86% .75%*
Net Assets:*** ======== ======== ======== ======== ========
Expenses .80%* .86% .82% .86% .88%*
======== ======== ======== ======== ========
Investment income--net 5.24%* 5.82% 6.37% 6.70% 6.90%*
======== ======== ======== ======== ========
Supplemental Net assets, net of Preffered Stock, end of period
Data: (in thousands) $ 79,169 $ 87,553 $ 77,775 $ 73,721 $ 66,711
======== ======== ======== ======== ========
Preferred Stock outstanding, at end of period
(in thousands) $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
======== ======== ======== ======== ========
Portfolio turnover 47.88% 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, result in substantially dif-
ferent returns. Total investment returns exclude
the effects of sales loads.
*** Do not reflect the effect of dividends to Preferred
Stock shareholders.
++ Commencement of Operations.
++++ The fund's Preferred Stock was issued on April 30, 1990.
+++ 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. Sec-
urities 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, in-
cluding 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 trans-
actions 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 trans-
actions are determined on the identified cost basis.
<PAGE>
(e) Deferred organization expenses--Deferred organization
expenses are amortized on a straight-line basis over a five-year
period.
(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., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), 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 .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, MLIM, Merrill Lynch, Pierce, Fenner & Smith
Inc. ("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term
securities, for the six months ended April 30, 1994 were
$51,882,487 and $56,202,367, respectively.
Net realized and unrealized gains as of April 30, 1994 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $ 2,556,011 $ 1,526,161
------------ -----------
Total $ 2,556,011 $ 1,526,161
============ ===========
<PAGE>
As of April 30, 1994, net unrealized appreciation for Federal
income tax purposes aggregated $1,526,161, of which $4,693,370
related to appreciated securities and $3,167,209 related to
depreciated securities. The aggregate cost of investments at
April 30, 1994 for Federal income tax purposes was $110,963,121.
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 six months ended April 30, 1994, shares issued and out-
standing increased by 94,649 to 6,714,921 as a result of divi-
dend reinvestment. At April 30, 1994, total paid-in capital amount-
ed to $74,370,866.
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 April 30, 1994 was 2.68%.
For the six months ended April 30, 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 $182,639.
The Fund pays commissions to certain broker-dealers at the end of
each auction at the annual rate of one-quarter of 1% calculated
on the proceeds of each auction. For the six months ended April
30, 1994, MLPF&S, an affiliate of MLIM, earned $38,763 as commissions.
5. Subsequent Event:
On May 6, 1994, the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the
amount of $0.062378 per share, payable on May 27, 1994 to
shareholders of record as of May 17, 1994.
<PAGE>
<TABLE>
PER SHARE INFORMATION
<CAPTION>
Per Share Selected Quarterly Financial Data*
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>
May 1, 1992 to July 31, 1992 $0.26 $(0.01) $ 0.79 $ 0.23 $0.04 -- --
August 1, 1992 to October 31, 1992 0.26 0.01 (0.55) 0.23 0.03 -- --
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 (1.39) 0.25 0.01 -- 0.02
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
May 1, 1992 to July 31, 1992 $12.54 $11.71 $14.00 $12.625 475
August 1, 1992 to October 31, 1992 12.47 11.90 13.875 12.375 448
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
<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>
<PAGE>
