TAURUS
MUNINEW YORK
HOLDINGS, INC.
FUND LOGO
Annual Report
October 31, 1995
<PAGE>
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 year ended October 31, 1995, the Common Stock of Taurus
MuniNew York Holdings, Inc. earned $0.706 per share income
dividends, which included earned and unpaid dividends of $0.061.
This represents a net annualized yield of 5.85%, based on a month-
end net asset value of $12.07 per share. Over the same period, the
total investment return on the fund's Common Stock was +16.01%,
based on a change in per share net asset value from $11.18 to
$12.07, and assuming reinvestment of $0.710 per share income
dividends and $0.051 per share capital gains distributions.
For the six-month period ended October 31, 1995, the total
investment return on the fund's Common Stock was +7.49%, based on a
change in per share net asset value from $11.60 to $12.07, and
assuming reinvestment of $0.350 per share income dividends.
For the six-month period ended October 31, 1995, the fund's Auction
Market Preferred Stock had an average yield of 4.04%.
The Environment
After losing momentum through the second calendar quarter of 1995,
it now appears that the US economic expansion has resumed. Gross
domestic product growth for the three months ended September 30 was
reported to be 4.2%, higher than generally expected. September
durable goods orders increased a surprisingly strong 3%, and
existing home sales rose to a near-record level. At the same time,
there is evidence that inflationary pressures remain subdued.
Reflecting the trend of renewed economic growth--and continued good
news on the inflation front--the Federal Reserve Board signaled no
near-term shift in monetary policy following its September meeting.
Thus, official interest rates may not be reduced further in the
immediate future.
Another significant development has been the strengthening of the US
dollar relative to the yen and the Deutschemark. Improving interest
rate differentials favoring the US currency, combined with
coordinated central bank intervention and more positive investor
sentiment, have helped to bolster the dollar in foreign exchange
markets. Other factors that appear to be improving the US dollar's
outlook in the near term are a pick-up in capital flows to the
United States and the prospect of increased capital outflows from
Japan. However, it remains to be seen if the US dollar's
strengthening trend can continue without significant improvements in
the US budget and trade deficits.
In the weeks ahead, investor interest will continue to focus on US
economic activity. Clear signs of a moderate, noninflationary
expansion could further benefit the US stock and bond markets. In
addition, should the current Federal budget deficit reduction
efforts now underway in Washington prove successful, the
implications would likely be positive for the US financial markets.
<PAGE>
The Municipal Market
Tax-exempt bond yields continued to decline during the six-month
period ended October 31, 1995. As measured by the Bond Buyer Revenue
Bond Index, the yield on uninsured, long-term municipal revenue
bonds fell 30 basis points (0.30%) to end the October period at
approximately 6.00%. While tax-exempt bond yields have declined
dramatically from their highs one year ago, municipal bond yields
have exhibited considerable yield volatility on a weekly basis. In
recent months, tax-exempt bond yields have fluctuated by as much as
20 basis points on a week-to-week basis. US Treasury bond yields
have displayed similar volatility, but the extent of their decline
has been greater. By the end of October, long-term US Treasury bond
yields had declined almost 100 basis points to 6.33%. Proposed
Federal tax restructuring continued to weigh heavily on the tax-
exempt bond market. Thus far in 1995, US Treasury bond yields have
declined approximately 150 basis points. Municipal bond yields have
fallen approximately 95 basis points as the uncertainty surrounding
any changes to the existing Federal income tax structure has
prevented the municipal bond market from rallying as strongly as its
taxable counterpart.
A general view of a moderately expanding domestic economy, supported
by a very favorable inflationary environment, allowed interest rates
to significantly decline from their recent highs in November 1994.
However, this decline was not a smooth downward curve. Conflicting
economic indicators were released during recent months that have
prevented a clear consensus regarding the near-term direction of
interest rates from being reached. The resultant uncertainty has
promoted more of a saw-toothed pattern as interest rate declines
were repeatedly interrupted by indications of stronger-than-expected
economic growth. As these concerns were overcome by subsequent
weaker economic releases, interest rate declines have resumed. These
periods of volatility are likely to continue for the remainder of
1995, or until proposed Federal budget deficit reduction packages
are resolved and any resultant responses by the Federal Reserve
Board have occurred.
However, the municipal bond market's technical position remained
supportive throughout recent quarters. Approximately $82 billion in
long-term municipal securities were issued during the six months
ended October 31, 1995. While this issuance is virtually identical
to underwritings during the October 31, 1994 quarter, tax-exempt
bond issuance over the last 12 months remained approximately 25%
below comparable 1994 levels. The municipal bond market should
maintain this positive technical position well into 1996. Annual
issuance for 1995 is now projected to be approximately $140 billion,
significantly less than last year's already low level of $162
billion. Projected maturities and early redemptions for the
remainder of 1995 and throughout 1996 will lead to a continued
decline in the total outstanding municipal bond supply throughout
1996 and, perhaps, into 1998 should new bond issuance remain at
historically low levels.
<PAGE>
Despite the municipal bond market's relative underperformance
compared to the US Treasury market thus far in 1995, the extent of
the tax-exempt bond market's rally was nonetheless quite impressive.
Municipal bond yields have fallen 135 basis points from their highs
reached in November 1994 and municipal bond prices rose accordingly.
Most tax-exempt products recouped almost all of the losses incurred
in 1994 and are well on their way to posting double-digit total
returns for all of 1995. This relative underperformance so far in
1995 provided long-term investors with the rare opportunity to
purchase tax-exempt securities at yield levels near those of taxable
securities.
Additionally, many of the factors that led to the relative
underperformance of the tax-exempt bond market thus far in 1995,
namely investor concern regarding Federal budget deficit reductions
and proposed changes in the Federal income tax structure, are
nearing resolution. The Federal budget reconciliation process has
already begun, and may be essentially completed by year-end. Recent
public opinion polls suggest that the majority of American taxpayers
prefer the existing Federal income tax system compared to proposed
changes, such as the flat tax or national sales tax. In an upcoming
election year, neither party is likely to advocate a clearly
unpopular position, particularly one that can be expected to
negatively impact the Federal budget deficit reduction program
through reduced tax revenues. As these factors are resolved, we
believe that much of the resistance that the municipal bond market
met this year should dissipate. This should allow municipal bond
yields to significantly decline from current levels in order to
return to more normal historic yield relationships.
Portfolio Strategy
As interest rates continued to move lower at the beginning of May,
our strategy of adding lower-coupon, longer-maturity issues to the
portfolio continued to enhance the fund's net asset value. Economic
releases during the second quarter of 1995 confirmed our belief that
the economy was indeed slowing and the potential of an ease in
interest rates by the Federal Reserve Board was a real possibility.
In July, the Federal Reserve Board cut the Federal Fund's target
rate by 25 basis points. While the cut was not significant in size,
it did indicate the probable end to any further interest rate
increases which had taken a severe toll on the performance of the
credit markets during the preceding 12 months.
The economic soft landing that investors hoped for came into
question during the third quarter of this year as the economy
produced stronger-than-expected results. This caused a temporary
rise in yields as investors feared renewed inflationary pressure
along with renewed growth.
<PAGE>
The bounce back in economic growth seems to be waning as we move
into the fourth quarter of 1995. Consumers have curtailed their
spending and continue to be extremely price conscious in the
purchase of goods, which has produced the lowest level of inflation
in many years. As a result, we are anticipating a continued decline
in interest rates during the remainder of 1995.
While New York experienced a record delay in approving a budget
agreeable to the legislature and the Governor, the surge of issuance
expected by the delay was well received by investors. The main
reason for the more orderly disbursement of the financings was a
result of the close attention the new administration spent in
reviewing the financing needs of the various authorities. This
renewed fiscal responsibility helped the perception of New York
issues in the marketplace and aided their relative value.
Prior to the budget resolution, issuance in New York was well below
1994 levels. The third quarter of this year saw volume increase by
30% over 1994 levels. On a year-over-year basis, New York issuance
is down 25%, slightly higher than the volume declines on a national
basis.
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 ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President
(James C. Cahill)
James C. Cahill
Portfolio Manager
<PAGE>
November 27, 1995
We are pleased to announce that James C. Cahill is responsible for
the day-to-day management of Taurus MuniNew York Holdings, Inc. Mr.
Cahill has been employed by Merrill Lynch Asset Management, L.P. (an
affliliate of the Fund's investment adviser) since 1994 as Vice
President and Portfolio Manager. Prior thereto, he was employed by
the Prudential Insurance Company.
PROXY RESULTS
During the six-month period ended October 31, 1995, Taurus MuniNew
York Holdings, Inc. Common Stock shareholders voted on the following
proposals. The proposals were approved at a special shareholders'
meeting on June 16, 1995. The description of each proposal and
number of shares voted are as follows:
<TABLE>
<CAPTION>
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Charles C. Reilly 6,272,795 174,141
Kevin A. Ryan 6,268,095 178,841
Cynthia A. Montgomery 6,273,212 173,724
Arthur Zeikel 6,272,795 174,141
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To select Ernst & Young LLP as the Fund's independent auditors. 6,202,927 50,120 193,889
</TABLE>
During the six-month period ended October 31, 1995, Taurus MuniNew
York Holdings, Inc. Preferred Stock shareholders voted on the
following proposals. The proposals were approved at a special
shareholders' meeting on June 16, 1995. The description of each
proposal and number of shares voted are as follows:
<PAGE>
<TABLE>
<CAPTION>
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Ronald W. Forbes 1,198 0
Charles C. Reilly 1,198 0
Kevin A. Ryan 1,198 0
Richard R. West 1,198 0
Cynthia A. Montgomery 1,198 0
Arthur Zeikel 1,198 0
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To select Ernst & Young LLP as the Fund's independent auditors. 1,198 0 0
</TABLE>
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.
<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 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.
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
PCR Pollution Control Revenue Bonds
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
New York--101.3%
<S> <S> <C> <S> <C>
AAA Aaa $ 1,600 Buffalo, New York, Sewer Authority Revenue Bonds, Series F, 6% due 7/01/2013 (c) $ 1,688
BBB Baa1 3,000 Metropolitan Transportation Authority, New York, Transit Facilities Service
Contract Revenue Refunding Bonds, Series 5, 7% due 7/01/2012 3,231
BBB+ Baa1 3,175 New York City, New York, GO, Series D, 6% due 2/15/2025 3,069
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 2,128
New York City, New York, Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds:
AAA Aaa 5,200 Refunding, Series A, 5.50% due 6/15/2020 (b) 5,043
AAA VMIG1++ 300 VRDN, Series C, 4% due 6/15/2023 (a) (c) 300
A1+ VMIG1++ 100 New York City, New York, Trust for Cultural Resources Revenue Bonds
(Solomon R. Guggenheim), VRDN, Series B, 3.90% due 12/01/2015 (a) 100
New York State Dormitory Authority Revenue Bonds:
BBB Baa1 1,250 (City University System), Series F, 5% due 7/01/2014 1,106
A1+ VMIG1++ 100 (Cornell University), VRDN, Series B, 3.90% due 7/01/2025 (a) 100
BBB+ Baa1 6,800 (Court Facilities Lease Bonds), Series A, 5.375% due 5/15/2016 6,234
BBB+ Baa1 5,000 (Court Facilities Lease Bonds), Series A, 5.25% due 5/15/2021 4,471
AAA Aa 5,000 Refunding (Long Island Medical Center), Series A, 7.75% due 8/15/2027 (d) 5,404
BBB+ Baa1 2,500 Refunding (State University Educational Facilities), Series A, 6% due 5/15/2025 2,469
BBB- Baa1 1,000 (State University Athletic Facility), 7.25% due 7/01/2021 1,079
BBB- Baa1 1,000 (Upstate Community Colleges), Series A, 5.40% due 7/01/2008 982
BBB- Baa1 3,000 (Upstate Community Colleges), Series A, 6.25% due 7/01/2025 3,021
AAA Aaa 2,000 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) 2,098
New York State Energy, Research and Development Authority, PCR (Niagara Mohawk
Corporation Project), VRDN (a):
A1+ NR* 1,100 AMT, Series B, 3.95% due 7/01/2027 1,100
A1+ NR* 2,000 Series A, 3.85% due 7/01/2015 2,000
A1+ NR* 1,200 New York State Environmental Facilities Corporation, Resource Recovery Revenue Bonds
(Huntington Project), VRDN, AMT, 4.10% due 11/01/2014 (a) 1,200
AAA Aaa 2,215 New York State HFA, M/F Housing Revenue Bonds, AMT, Series A, 7.75% due 11/01/2020 (b) 2,400
A A 2,500 New York State Local Government Assistance Corporation Revenue Refunding Bonds,
Series B, 5.50% due 4/01/2021 2,404
</TABLE>
<PAGE>
<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>
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 $ 2,600
AA Aa 6,025 (The Hospital for Special Surgery), Series A, 6.375% due 8/15/2024 (d) 6,216
AAA Aaa 2,000 (Long-Term Health Care), Series D, 6.50% due 11/01/2015 (f) 2,116
BBB+ Baa1 4,075 (Mental Health Services Facilities), Series E, 6.375% due 8/15/2014 4,156
New York State Mortgage Agency, Homeownership Revenue Bonds:
NR* Aa 3,275 AMT, Series 44, 7.50% due 4/01/2026 3,511
NR* Aa 5,750 AMT, Series HH-3, 7.95% due 4/01/2022 6,150
NR* Aa 1,100 Series EE-2, 7.50% due 4/01/2016 1,173
BBB Baa1 3,170 New York State Thruway Authority, Service Contract Revenue Bonds
(Local Highway and Bridge), 5.25% due 4/01/2013 2,909
New York State Urban Development Corporation Revenue Bonds:
BBB Baa1 5,500 (Correctional Capital Facilities), Series 4, 5.25% due 1/01/2013 5,034
BBB Baa1 5,950 (Correctional Capital Facilities), Series 4, 5.375% due 1/01/2023 5,402
BBB Baa1 2,705 Refunding (Correctional Capital Facilities), Series A, 5.25% due 1/01/2021 2,420
BBB Baa1 2,000 Refunding (Onondaga County Convention Project), 6.25% due 1/01/2020 2,013
BBB Baa1 5,000 (Youth Facilities), 6% due 4/01/2015 4,927
AA- A1 3,000 Port Authority of New York and New Jersey, Consolidated Revenue Bonds,
72nd Series, 7.35% due 10/01/2027 3,435
A1+ VMIG1++ 2,400 Port Authority of New York and New Jersey, Special Obligation Revenue Bonds
(Versatile Structure Obligation), VRDN, Series 2, 3.60% due 5/01/2019 (a) 2,400
A1+ VMIG1++ 500 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Multi-Modal
Syracuse University Project), VRDN, 3.90% due 3/01/2023 (a) 500
Triborough Bridge and Tunnel Authority, New York:
BBB Baa1 4,000 (Convention Center Project), Series E, 7.25% due 1/01/2010 4,549
A+ Aa 1,250 Refunding (General Purpose), Series Y, 6.125% due 1/01/2021 1,326
Puerto Rico--0.2%
A1+ VMIG1++ 200 Puerto Rico Commonwealth, Government Development Bank, Revenue
Refunding Bonds, VRDN, 3.65% due 12/01/2015 (a) 200
Total Investments (Cost--$106,711)--101.5% 112,664
<PAGE>
Liabilities in Excess of Other Assets--(1.5%) (1,646)
--------
Net Assets--100.0% $111,018
========
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at October 31, 1995.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)FHA Insured.
(e)MBIA Insured.
(f)CGIC Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Ernst & Young LLP.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of October 31, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$106,711,300) (Note 1a) $112,663,767
Cash 29,698
Interest receivable 1,677,652
Prepaid expenses and other assets 5,368
------------
Total assets 114,376,485
------------
Liabilities: Payables:
Securities purchased $ 3,067,777
Dividends to shareholders (Note 1f) 203,903
Investment adviser (Note 2) 48,426 3,320,106
------------
Accrued expenses and other liabilities 38,489
------------
Total liabilities 3,358,595
------------
Net Assets: Net assets $111,017,890
============
<PAGE>
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 73,695,014
Undistributed investment income--net 766,904
Accumulated realized capital loss on investments--net (67,987)
Unrealized appreciation on investments--net 5,952,467
------------
Total--Equivalent to $12.07 net asset value per share of
Common Stock (market price--$10.75) 81,017,890
------------
Total capital $111,017,890
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Year Ended
October 31, 1995
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 6,826,497
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 539,213
Commission fees (Note 4) 77,384
Professional fees 75,816
Transfer agent fees 51,904
Accounting services (Note 2) 46,517
Printing and shareholder reports 37,916
Directors' fees and expenses 19,206
Listing fees 16,832
Custodian fees 11,730
Pricing fees 5,155
Amortization of organization expenses (Note 1e) 3,101
Other 7,073
------------
Total expenses 891,847
------------
Investment income--net 5,934,650
------------
<PAGE>
Realized & Unreal- Realized loss on investments--net (64,466)
ized Gain Change in unrealized appreciation/depreciation on investments--net 6,364,528
(Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 12,234,712
(Notes 1b, ============
1d & 3):
</TABLE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended Oct. 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 5,934,650 $ 6,089,937
Realized gain (loss) on investments--net (64,466) 387,440
Change in unrealized appreciation/depreciation on
investments--net 6,364,528 (12,168,706)
------------ ------------
Net increase (decrease) in net assets resulting from operations 12,234,712 (5,691,329)
------------ ------------
Dividends & Investment income--net:
Distributions to Common Stock (4,765,156) (5,206,728)
Shareholders Preferred Stock (1,138,986) (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 (6,291,472) (8,000,953)
------------ ------------
Capital Stock Value of shares issued to Common Stock shareholders in
Transactions reinvestment 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 5,943,240 (12,478,673)
Beginning of year 105,074,650 117,553,323
------------ ------------
End of year* $111,017,890 $105,074,650
============ ============
<PAGE>
<FN>
*Undistributed investment income--net (Note 1g) $ 766,904 $ 728,406
============ ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements.
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 year $ 11.18 $ 13.23 $ 11.95 $ 11.64 $ 10.76
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .88 .91 .99 1.05 1.06
Realized and unrealized gain (loss) on
investments--net .95 (1.76) 1.28 .32 .88
-------- -------- -------- -------- --------
Total from investment operations 1.83 (.85) 2.27 1.37 1.94
-------- -------- -------- -------- --------
Less dividends and distributions to
Common Stock shareholders:
Investment income--net (.71) (.78) (.88) (.90) (.83)
Realized gain on investments--net (.05) (.28) -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions to
Common Stock shareholders (.76) (1.06) (.88) (.90) (.83)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:
Dividends and distributions to
Preferred Stock shareholders:
Investment income--net (.17) (.10) (.11) (.16) (.23)
Realized gain on investments--net (.01) (.04) -- -- --
-------- -------- -------- -------- --------
Total effect of Preferred Stock activity (.18) (.14) (.11) (.16) (.23)
-------- -------- -------- -------- --------
Net asset value, end of year $ 12.07 $ 11.18 $ 13.23 $ 11.95 $ 11.64
======== ======== ======== ======== ========
Market price per share, end of year $ 10.75 $ 9.875 $ 14.25 $ 12.75 $ 12.00
======== ======== ======== ======== ========
<PAGE>
Total Investment Based on market price per share 16.98% (24.38%) 19.63% 14.36% 26.04%
Return:* ======== ======== ======== ======== ========
Based on net asset value per share 16.01% (7.78%) 18.50% 10.50% 16.46%
======== ======== ======== ======== ========
Ratios to Average Expenses .83% .80% .86% .82% .86%
Net Assets:** ======== ======== ======== ======== ========
Investment income--net 5.54% 5.40% 5.82% 6.37% 6.70%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end
Data: of year (in thousands) $ 81,018 $ 75,075 $ 87,553 $ 77,775 $ 73,721
======== ======== ======== ======== ========
Preferred Stock outstanding, end of year
(in thousands) $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
======== ======== ======== ======== ========
Portfolio turnover 165.22% 65.74% 34.31% 20.18% 35.80%
======== ======== ======== ======== ========
Dividends Per Investment income--net $ 949 $ 573 $ 626 $ 839 $ 1,243
Share on
Preferred Stock
Outstanding:++
<FN>
*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.
++Dividends per share have been adjusted to reflect a two-for-one
stock split.
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 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
supervision of the Board of 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.
(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.
NOTES TO FINANCIAL STATEMENTS (concluded)
(g) Reclassification--Generally accepted accounting principles
require that certain components of net assets be reclassified to
reflect permanent differences between financial reporting and tax
purposes. Accordingly, current year's permanent book/tax differences
of $3,631 and $4,359 have been reclassified from accumulated net
realized capital losses and paid in capital in excess of par,
respectively, to undistributed net investment income. These
reclassifications have no effect on net assets or net asset value
per share.
<PAGE>
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.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended October 31, 1995 were $174,262,340 and
$167,181,343, respectively.
Net realized and unrealized gains (losses) as of October 31, 1995
were as follows:
Realized
Gains Unrealized
(Losses) Gains
Long-term investments $ 781,628 $5,952,467
Financial futures contracts (846,094) --
----------- ----------
Total $ (64,466) $5,952,467
=========== ==========
As of October 31, 1995, net unrealized appreciation for Federal
income tax purposes aggregated $5,952,467, of which $6,004,317
related to appreciated securities and $51,850 related to depreciated
securities. The aggregate cost of investments at October 31, 1995
for Federal income tax purposes was $106,711,300.
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.
<PAGE>
Common Stock
For the year ended October 31, 1995, shares issued and outstanding
remained constant at 6,714,921. At October 31, 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
dividend periods. The yield in effect at October 31, 1995 was 3.67%.
A two-for-one stock split occurred on December 1, 1994. As a result,
as of October 31, 1995, there were 1,200 AMPS shares authorized,
issued and outstanding with a liquidation preference of $25,000 per
share.
The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate ranging from 0.25% to 0.375%,
calculated on the proceeds of each auction. For the year ended
October 31, 1995, MLPF&S, an affiliate of FAM, earned $54,393 as
commissions.
5. Subsequent Event:
On November 13, 1995 the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the amount
of $0.061151 per share, payable on November 29, 1995 to shareholders
of record as of November 24, 1995.
<AUDIT-REPORT>
REPORT OF INDEPENDENT AUDITORS
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, 1995, 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 financial highlights for each of the years 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.
<PAGE>
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, 1995, by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Taurus MuniNew York Holdings, Inc. at October
31, 1995, 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 financial highlights for each of the indicated years,
in conformity with generally accepted accounting principles.
(Ernst & Young LLP)
Princeton, New Jersey
November 30, 1995
</AUDIT-REPORT>
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, 1995 qualify as tax-exempt interest dividends for
Federal income tax purposes. Additionally, the following table
summarizes the per share capital gains 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 12/29/94 -- $ 0.051169
Preferred Stock Shareholders 12/28/94 -- $72.89
Please retain this information for your records.
</TABLE>
<PAGE>
PER SHARE INFORMATION (UNAUDITED)
<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>
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 -- --
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 -- --
May 1, 1995 to July 31, 1995 0.22 0.22 (0.05) 0.17 0.04 -- --
August 1, 1995 to October 31, 1995 0.22 (0.01) 0.31 0.18 0.05 -- --
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
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
May 1, 1995 to July 31, 1995 12.24 11.59 11.00 10.25 450
August 1, 1995 to October 31, 1995 12.14 11.58 10.875 10.375 398
<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>
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
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
Transfer Agents
Common Stock:
The Bank of New York
110 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
