TAURUS
MUNINEW YORK
HOLDINGS, INC.
FUND LOGO
Semi-Annual Report
April 30, 1995
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, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
110 Washington Street
New York, NY 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, NY 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
<PAGE>
Taurus MuniNew York Holdings, Inc.
TO OUR SHAREHOLDERS
For the six months ended April 30, 1995, the Common Stock of Taurus
MuniNew York Holdings, Inc. earned $0.353 per share income
dividends, which included earned and unpaid dividends of $0.059.
This represents a net annualized yield of 6.14%, based on a month-
end net asset value of $11.60 per share. Over the same period, the
total investment return on the fund's Common Stock was +7.93%, based
on a change in per share net asset value from $11.18 to $11.60, and
assuming reinvestment of $0.359 per share income dividends and
$0.051 per share capital gains distributions.
For the six-month period ended April 30, 1995, the fund's Auction
Market Preferred Stock had an average yield of 3.84%.
The Environment
During the six months ended April 30, 1995, the perception that the
US economy was overheating and inflationary pressures were
increasing gave way to a more benign economic outlook. With more
signs of slowing growth, investors now appear to be forecasting a
"soft landing" for the US economy. Although gross domestic product
was reported to have increased at a revised 5.1% rate during the
final quarter of 1994, declines in other indicators such as new home
sales and durable goods orders registered thus far in 1995 have led
investors to anticipate that the economy is losing enough momentum
to keep inflation under control and preclude further significant
monetary policy tightening by the Federal Reserve Board. A further
indication of a slowing economy was the reported decline in the
Index of Leading Economic Indicators for March.
As US stock and bond markets have risen on more positive economic
news, the value of the US dollar has reached new lows relative to
the yen and the Deutschemark. Persistent trade deficits and exports
of capital from the United States have kept the US currency in a
decade-long decline relative to the Japanese and German currencies.
Over the longer term, since the United States has the highest
productivity among industrialized nations and among the lowest labor
costs, demand for US dollar-denominated assets may improve. However,
a reduction of the still-widening US trade deficit may be necessary
before the US dollar appreciates substantially relative to the yen
and the Deutschemark.
The first months of 1995 have been very positive for the stock and
bond markets. Continued signs of a moderating expansion and well-
contained inflationary pressures would provide further assurance
that the peak in interest rates is behind us. On the other hand,
indications of reaccelerating growth and further significant
monetary policy tightening by the Federal Reserve Board would be a
decided negative for the US financial markets.
<PAGE>
The Municipal Market
During the six-month period ended April 30, 1995, the tax-exempt
bond market gradually recouped much of the losses sustained during
1994. Signs of a weakening domestic economy and ongoing moderate
inflationary pressures have fostered an environment of declining
interest rates. Since October 31, 1994, A-rated, uninsured municipal
revenue bond yields, as measured by the Bond Buyer Revenue Bond
Index, have declined over 65 basis points (0.65%) to close the six-
month period ended April 30, 1995 at 6.29%. Tax-exempt bond yields
initially continued to climb in late 1994, reaching a high of 7.37%
in late November 1994. Municipal bond yields have since declined
over 100 basis points from their recent highs and are presently
lower than they were a year ago. US Treasury bond yields have
experienced similar declines over the last six months to end the
April period at 7.34%.
Much of the recent improvement in the tax-exempt bond market,
however, has occurred over the last three months. During this most
recent quarter, municipal bond yields have fallen approximately 50
basis points, while US Treasury bond yields declined only 35 basis
points. Tax-exempt bond yields declined more than their taxable
counterparts in recent months, largely in response to the
significant decline in new bond issuance in recent quarters. Over
the last six months, less than $60 billion in new long-term
municipal securities were underwritten, a decline of nearly 45%
versus the comparable period a year earlier. Issuance was
particularly low this past January and February, with monthly volume
of less than $8 billion. These levels are the lowest monthly totals
since the mid-1980s.
<PAGE>
To compound the municipal market's already strong technical posture,
both institutional and individual investors have seen significant
cash inflows in recent months. These assets were derived from
regular coupon payments, bond maturities and the proceeds from early
bond calls and redemptions. It has been estimated that investors
received over $20 billion in principal redemptions and coupon income
in January 1995 alone. With monthly issuance in the $10 billion
range thus far this year, the current supply/demand imbalance has
dominated the municipal market and bond prices have risen
accordingly. The tax-exempt bond market's technical position is
likely to remain very strong throughout most of 1995. Investors are
expected to receive almost $40 billion in principal and coupon
payments on July 1, 1995. Investor proceeds from all sources have
been estimated to exceed $200 billion for all of 1995. Estimates of
total new bond issuance for 1995 have continued to be lowered with
most estimates now in the $125 billion range. Investors should find
it increasingly difficult to replace existing holdings as they
mature and to reinvest coupon income in such an environment.
The municipal bond market's outperformance thus far this year caused
the tax-exempt market to become temporarily expensive relative to
its taxable counterpart in late April. Investor concerns regarding
the international currency situation and the future impact of
proposed revisions to US taxation policies upon the tax advantage
inherent to municipal bonds have combined to cause tax-exempt bond
yields to increase marginally in recent weeks. Municipal bond yields
have risen approximately 15 basis points from their lows in mid-
April 1995. Long-term US Treasury bond yields have remained
essentially stable.
Such an underperformance by the tax-exempt bond market is likely to
be limited in duration. The recent increase in tax-exempt bond
yields has already begun to attract institutional investors since
some municipal bonds yielding in excess of 85% of US Treasury bond
yields are again available. Also, concerns regarding the implication
for municipal bonds' tax advantage resulting from various proposed
tax law changes (for example, flat-tax, value-added tax or national
sales tax) are all likely to quickly recede as investors realize
that such, if any, changes are unlikely to be enacted before late
1996 at the earliest. Long-term investors will also recall 1986 when
similar tax proposals were made and tax-exempt bond yields initially
rose and then quickly fell. Investors are likely to view the current
situation as an opportunity to purchase very attractively priced tax-
advantaged products. This should cause municipal bond yields to
quickly return to their more historic relationship.
Portfolio Strategy
We continued to take advantage of the declining interest rate
environment by adding lower coupon, longer maturity issues to the
fund's portfolio. As interest rates continued to decline throughout
the April quarter, these holdings appreciated accordingly. Evidence
of a slowing economy caused a general decline in interest rates.
Many of the Government's recent data releases indicate that the
Federal Reserve Board's monetary policy has slowed economic growth.
<PAGE>
Along with the apparent slowing of growth, there was no significant
increase in inflationary pressures at the retail level, indicating
that the Federal Reserve Board may have mastered a soft landing for
the domestic economy. Other world economies also kept prices under
control in an effort to maintain their own growth. With that as a
backdrop, investors believe additional rate increases may not be
needed. Economic data for the second quarter of 1995 will give us a
better indication as to whether the Federal Reserve Board was
successful.
The New York municipal market performed as well as the national
market in spite of the absence of a new state budget. Negotiations
continue between Governor Pataki and the legislature, and passage of
a new budget is expected soon. Once the budget is ratified, we
expect a surge of issuance. Since issuance in New York is more than
50% below 1994, this supply should present no problem for the
municipal market as demand has far exceeded supply.
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
May 25, 1995
<PAGE>
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. Of course, increases in
short-term interest rates would reduce (and even eliminate) the
dividends on the Common Stock.
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 pickup on the
Common Stock will be reduced or eliminated completely. 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.
<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)
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Agency
M/F Multi-Family
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--98.3%
<S> <S> <C> <S> <C>
AAA Aaa $1,600 Buffalo, New York, Sewer Authority Revenue Bonds, Series F, 6% due
7/01/2013 (c) $ 1,617
BBB Baa1 3,000 Metropolitan Transportation Authority, New York, Transit Facilities
Service Contract Revenue Refunding Bonds, Series 5, 7% due 7/01/2012 3,157
New York City, New York, GO, UT, Series D:
A- Baa1 2,285 8% due 8/01/2001 (f) 2,681
A- Baa1 2,000 9.50% due 8/01/2002 2,376
AAA Aaa 1,605 New York City, New York, IDA, Civic Facility Revenue Bonds (USTA National
Tennis Center Project), 6.40% due 11/15/2008 (h) 1,686
BB+ Baa2 2,000 New York City, New York, IDA, Special Facility Revenue Bonds (1990 American
Airlines, Inc. Project), AMT, 7.75% due 7/01/2019 2,072
AAA VMIG1++ 2,000 New York City, New York, Municipal Water Finance Authority, Water and Sewer
System Revenue Bonds, VRDN, Series G, 5% due 6/15/2024 (a)(c) 2,000
A1+ VMIG1++ 300 New York City, New York, Trust for Cultural Resources Revenue Bonds (Solomon R.
Guggenheim), VRDN, Series B, 4.85% due 12/01/2015 (a) 300
<PAGE>
New York State Dormitory Authority Revenue Bonds:
BBB Baa1 2,335 (City University System), Series A, 9.25% due 7/01/2000 2,707
BBB Baa1 1,000 (City University System), Series D, 7% due 7/01/2009 1,068
BBB Baa1 1,250 (City University System), Series F, 5% due 7/01/2014 1,045
BBB+ Baa1 6,800 (Court Facilities Lease Bonds), Series A, 5.375% due 5/15/2016 5,908
BBB Baa1 2,000 Refunding (Department of Health), 5.50% due 7/01/2020 1,740
AAA Aa 5,000 Refunding (Long Island Medical Center), Series A, 7.75% due 8/15/2027 (d) 5,395
BBB+ Baa1 4,420 Refunding (State University Educational Facilities), Series A, 5.875% due
5/15/2017 4,128
NR* VMIG1++ 700 (Saint Francis Center at The Knolls), VRDN, 5.05% due 7/01/2023 (a) 700
BBB- Baa1 1,000 (State University Athletic Facilities), 7.25% due 7/01/2021 1,061
BBB- Baa1 1,000 (Upstate Community Colleges), Series A, 5.40% due 7/01/2008 946
BBB- Baa1 4,645 (Upstate Community Colleges), Series A, 5.40% due 7/01/2009 4,343
New York State Energy, Research and Development Authority Facilities Revenue
Bonds, AMT (e):
AAA Aaa 3,035 (Brooklyn Union Gas Company), Series C, 5.60% due 6/01/2025 2,750
AAA Aaa 2,000 (Consolidated Edison Co. Inc.), Series A, 6.75% due 1/15/2027 2,049
</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 $2,215 New York State HFA, M/F Housing Revenue Bonds, AMT, Series A, 7.75% due
11/01/2020 (b) $ 2,373
A A 9,000 New York State Local Government Assistance Corporation Revenue Bonds,
Series D, 5% due 4/01/2023 7,461
New York State Medical Care Facilities Finance Agency Revenue Bonds:
BBB Baa 2,485 (Brookdale Hospital Medical Center), Series A, 6.85% due 2/15/2017 2,457
AA Aa 4,025 (The Hospital for Special Surgery), Series A, 6.375% due 8/15/2024 (d) 4,045
AAA Aaa 2,000 (Long-Term Health Care), Series D, 6.50% due 11/01/2015 (g) 2,060
BBB+ Baa1 4,075 (Mental Health Services Facilities), Series E, 6.375% due 8/15/2014 4,041
AAA Aaa 1,040 (Presbyterian Hospital Insured Mortgage), Series A, 7.70% due 8/15/2000
(d)(f) 1,183
AAA Aaa 1,000 Refunding (Mental Health Services), Series F, 5.25% due 2/15/2019 (e) 878
New York State Mortgage Agency, Homeownership Revenue Bonds:
NR* Aa 3,275 AMT, Series 44, 7.50% due 4/01/2026 3,459
NR* Aa 5,750 AMT, Series HH-3, 7.95% due 4/01/2022 6,041
NR* Aa 1,100 Series EE-2, 7.50% due 4/01/2016 1,160
AA- Aa 2,500 New York State Power Authority Revenue and General Purpose Refunding Bonds,
Series CC, 5.125% due 1/01/2010 2,300
<PAGE>
AAA Aaa 4,500 New York State Thruway Authority, General Revenue Bonds, Series A, 5.50%
due 1/01/2023 (c) 4,113
New York State Urban Development Corporation Revenue Bonds (Correctional
Capital Facilities), Series 4:
BBB Baa1 5,500 5.25% due 1/01/2013 4,768
BBB Baa1 2,350 5.375% due 1/01/2023 1,994
AA- A1 3,000 Port Authority of New York and New Jersey, Consolidated Revenue Bonds,
72nd Series, 7.35% due 10/01/2027 3,314
A1+ VMIG1++ 300 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Syracuse University
Project), VRDN, 4.85% due 3/01/2023 (a) 300
BBB Baa1 4,000 Triborough Bridge and Tunnel Authority, New York (Convention Center Project),
Series E, 7.25% due 1/01/2010 4,368
Puerto Rico--0.2%
A1+ VMIG1++ 200 Puerto Rico Commonwealth, Government Development Bank Revenue Refunding
Bonds, VRDN, 4.55% due 12/01/2015 (a) 200
Total Investments (Cost--$102,020)--98.5% 106,244
Other Assets Less Liabilities--1.5% 1,627
--------
Net Assets--100.0% $107,871
========
<FN>
(a)The interest rate is subject to change periodically based upon
the prevailing market rates. The interest rate shown is the rate in
effect at April 30, 1995.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)FHA Insured.
(e)MBIA Insured.
(f)Prerefunded.
(g)Capital Guaranty.
(h)FSA Insured.
*Not Rated
++Highest short-term rating 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, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$102,019,653)
(Note 1a) $106,244,447
Cash 9,579
Interest receivable 1,815,202
Deferred organization expenses (Note 1e) 3,101
Prepaid expenses and other assets 4,404
------------
Total assets 108,076,733
------------
Liabilities: Payables:
Dividends to shareholders (Note 1f) $ 129,690
Investment adviser (Note 2) 41,998 171,688
------------
Accrued expenses and other liabilities 34,176
------------
Total liabilities 205,864
------------
Net Assets: Net assets $107,870,869
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (1,200 shares
of AMPS* issued and outstanding at $25,000 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 741,210
Accumulated realized capital loss on investments--net (1,466,000)
Unrealized appreciation on investments--net 4,224,794
------------
Total--Equivalent to $11.60 net asset value per share of
Common Stock (market price--$10.625) 77,870,869
------------
Total capital $107,870,869
============
<FN>
*Auction Market Preferred Stock.
<PAGE>
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months
Ended April 30, 1995
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 3,383,352
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 259,613
Professional fees 37,282
Commission fees (Note 4) 36,913
Transfer agent fees 23,562
Accounting services (Note 2) 22,194
Printing and shareholder reports 18,088
Directors' fees and expenses 9,351
Listing fees 8,702
Custodian fees 5,983
Pricing fees 2,421
Amortization of organization expenses (Note 1e) 1,509
Other 9,439
------------
Total expenses 435,057
------------
Investment income--net 2,948,295
------------
<PAGE>
Realized & Realized loss on investments--net (1,466,110)
Unrealized Gain Change in unrealized appreciation/depreciation on invest-
(Loss) on ments--net 4,636,855
Investments--Net ------------
(Notes 1b, Net Increase in Net Assets Resulting from Operations $ 6,119,040
1d & 3): ============
</TABLE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 1995 Oct. 31, 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 2,948,295 $ 6,089,937
Realized gain (loss) on investments--net (1,466,110) 387,440
Change in unrealized appreciation/depreciation on investments--net 4,636,855 (12,168,706)
------------ ------------
Net increase (decrease) in net assets resulting from operations 6,119,040 (5,691,329)
------------ ------------
Dividends & Investment income--net:
Distributions Common Stock (2,413,665) (5,206,728)
To Shareholders Preferred Stock (521,826) (687,618)
(Note 1f): Realized gain on investments--net:
Common Stock (343,596) (1,863,445)
Preferred Stock (43,734) (243,162)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (3,322,821) (8,000,953)
------------ ------------
Capital Stock Value of shares issued to Common Stock shareholders in re-
Transactions investment of dividends and distributions -- 1,213,609
(Note 4): ------------ ------------
Net increase in net assets derived from capital stock
transactions -- 1,213,609
------------ ------------
Net Assets: Total increase (decrease) in net assets 2,796,219 (12,478,673)
Beginning of period 105,074,650 117,553,323
------------ ------------
End of period* $107,870,869 $105,074,650
============ ============
<FN>
*Undistributed investment income--net $ 741,210 $ 728,406
============ ============
<PAGE>
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the Six
The following per share data and ratios have been derived Months
from information provided in the financial statements. Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 11.18 $ 13.23 $ 11.95 $ 11.64 $ 10.76
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .44 .91 .99 1.05 1.06
Realized and unrealized gain (loss) on
investments--net .48 (1.76) 1.28 .32 .88
-------- -------- -------- -------- --------
Total from investment operations .92 (.85) 2.27 1.37 1.94
-------- -------- -------- -------- --------
Less dividends and distributions to
Common Stock shareholders:
Investment income--net (.36) (.78) (.88) (.90) (.83)
Realized gain on investments--net (.05) (.28) -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Stock shareholders (.41) (1.06) (.88) (.90) (.83)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:
Dividends and distributions to
Preferred Stock shareholders:
Investment income--net (.08) (.10) (.11) (.16) (.23)
Realized gain on investments--net (.01) (.04) -- -- --
-------- -------- -------- -------- --------
Total effect of Preferred Stock activity (.09) (.14) (.11) (.16) (.23)
-------- -------- -------- -------- --------
Net asset value, end of period $ 11.60 $ 11.18 $ 13.23 $ 11.95 $ 11.64
======== ======== ======== ======== ========
Market price per share, end of period $ 10.625 $ 9.875 $ 14.25 $ 12.75 $ 12.00
======== ======== ======== ======== ========
Total Investment Based on market price per share 11.92%++ (24.38%) 19.63% 14.36% 26.04%
Return:** ======== ======== ======== ======== ========
Based on net asset value per share 7.93%++ (7.78%) 18.50% 10.50% 16.46%
======== ======== ======== ======== ========
<PAGE>
Ratios to Average Expenses .85%* .80% .86% .82% .86%
Net Assets:*** ======== ======== ======== ======== ========
Investment income--net 5.75%* 5.40% .58% 6.37% 6.70%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock,
Data: end of period (in thousands) $ 77,871 $ 75,075 $ 87,553 $ 77,775 $ 73,721
======== ======== ======== ======== ========
Preferred Stock outstanding, end of
period (in thousands) $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
======== ======== ======== ======== ========
Portfolio turnover 65.38% 65.74% 34.31% 20.18% 35.80%
======== ======== ======== ======== ========
<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.
++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. These unaudited financial statements
reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the interim period
presented. All such adjustments are of a normal recurring nature.
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 and options thereon, 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 super-
vision of the Directors.
(b) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt markets. Losses may
arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
* 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.
* Options--The Fund is authorized to write covered call options and
purchase call and put options. When the Fund writes an option, an
amount equal to the premium received by the Fund is reflected as an
asset and an equivalent liability. The amount of the liability is
subsequently marked to market to reflect the current market value of
the option written.
<PAGE>
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired, or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
(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.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
(e) Deferred organization expenses--Deferred organization expenses
are amortized on a straight-line basis over a five-year period.
(f) 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"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
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, PSI, Merrill Lynch, Pierce, Fenner & Smith Inc.
("MLPF&S"), and/or ML & Co.
<PAGE>
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1995 were $72,482,536 and
$63,941,833, respectively.
Net realized and unrealized gains (losses) as of April 30, 1995 were
as follows:
Realized Unrealized
Losses Gains
Long-term investments $ (980,891) $4,224,794
Financial futures contracts (485,219) --
----------- ----------
Total $(1,466,110) $4,224,794
=========== ==========
As of April 30, 1995, net unrealized appreciation for Federal income
tax purposes aggregated $4,224,794, of which $4,496,205 related to
appreciated securities and $271,411 related to depreciated
securities. The aggregate cost of investments at April 30, 1995 for
Federal income tax purposes was $102,019,653.
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, 1995, shares issued and
outstanding remained constant at 6,714,921. At April 30, 1995, 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 div-
idend periods. The yield in effect at April 30, 1995 was 4.15%.
A two-for-one stock split occurred on December 1, 1994. As a result,
at April 30, 1995, there were 1,200 AMPS shares authorized, issued
and outstanding with a liquidation preference of $25,000 per share
plus accumulated and unpaid dividends of $4,705.
<PAGE>
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%
claculated on the proceeds of each auction. For the six months ended
April 30, 1995, MLPF&S, an affiliate of FAM, earned $25,758 as
commissions.
5. Subsequent Event:
On May 9, 1995, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$0.058694 per share, payable on May 30, 1995 to shareholders of
record as of May 19, 1995.
PER SHARE INFORMATION
<TABLE>
Per Share Selected Quarterly Financial Data*
<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>
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) (.43) 0.20 0.04 -- --
November 1, 1994 to January 31, 1995 0.22 (0.45) 0.62 0.18 0.04 0.05 0.01
February 1, 1995 to April 30, 1995 0.22 0.23 0.08 0.18 0.04 -- --
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
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 11.54 11.875 11.125 249
August 1, 1994 to October 31, 1994 11.97 11.18 11.375 9.75 469
November 1, 1994 to January 31, 1995 11.30 10.53 10.75 9.25 745
February 1, 1995 to April 30, 1995 11.91 11.31 10.75 10.125 459
<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>
