TAURUS
MUNINEW YORK
HOLDINGS, INC.
FUND LOGO
Annual Report
October 31, 1996
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
Vincent R. Giordano, Senior Vice President
Donald C. Burke, 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, NY 10286
<PAGE>
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. Statements and other information
herein are as dated and are subject to change.
Taurus MuniNew York
Holdings, Inc.
Box 9011
Princeton, NJ
08543-9011
TO OUR SHAREHOLDERS
<PAGE>
For the year ended October 31, 1996, the Common Stock of Taurus
MuniNew York Holdings, Inc. earned $0.776 per share income
dividends, which included earned and unpaid dividends of $0.059.
This represents a net annualized yield of 6.45%, based on a month-
end net asset value of $12.03 per share. Over the same period, the
total investment return on the fund's Common Stock was +6.94%, based
on a change in per share net asset value from $12.07 to $12.03, and
assuming reinvestment of $0.778 per share income dividends.
For the six-month period ended October 31, 1996, the total
investment return on the fund's Common Stock was +7.20%, based on a
change in per share net asset value from $11.58 to $12.03, and
assuming reinvestment of $0.337 per share income dividends.
For the six-month period ended October 31, 1996, the fund's Auction
Market Preferred Stock had an average yield of 3.72%.
The Municipal Market Environment
Municipal bond yields generally moved lower during the six months
ended October 31, 1996. Long-term tax-exempt revenue bond yields, as
measured by the Bond Buyer Revenue Bond Index, declined
approximately 35 basis points (0.35%) to close the six-month period
ended October 31, 1996 at approximately 5.94%. The municipal bond
market exhibited considerable weekly yield volatility over the six
months ended October 31, 1996 with bond yields vacillating as much
as 20 basis points. This ongoing volatility was in response to
fluctuating evidence regarding the degree to which recent economic
growth would result in any significant increase in inflationary
pressures. Much of the evidence supporting stronger growth centered
around the strong employment growth seen in April and June with bond
yields rising in response. Other more recent economic indicators
have suggested that economic growth will not be excessive and
inflationary pressures will remain well-contained. This continued
benign inflationary environment has supported lower tax-exempt bond
yields in recent months. US Treasury bond yields have exhibited
similar, albeit greater, volatility during the six-month period
ended October 31, 1996, falling more than 20 basis points to end the
period at 6.64%. Over the past six months, tax-exempt bond yields
registered significantly greater declines than those shown by the US
Treasury bond. This relative outperformance by the municipal bond
market was largely the result of the strong technical support the
tax-exempt market has enjoyed throughout most of 1996. Perhaps most
significantly, the pace of new bond issuance has recently slowed.
Over the last year, approximately $180 billion in long-term
municipal securities was issued, an increase of over 25% versus the
same period a year ago. Much of this increase was the result of
issuers seeking to refinance their existing higher-couponed debt as
interest rates declined in 1995 and early 1996. As interest rates
rose, these financings became increasingly economically impractical
and issuance declined. Over the last six months, approximately $90
billion in long-term tax-exempt securities was underwritten, an
increase of 5% versus the comparable period a year earlier. Only $41
billion in tax-exempt securities was issued in the last three
months, a 3% decline in issuance versus the October 31, 1995
quarter.
<PAGE>
At the same time, investor demand remained consistently strong. With
nominal new-issue yields generally above 6%, retail investor
interest was steady. Additionally, investors received over $50
billion this June and July in assets derived from coupon income,
bond maturities, and proceeds from early redemptions. Annual new
bond issuance has declined in recent years and is expected to remain
below levels seen in the early 1990s. Consequently, as the higher-
couponed bonds issued in the early-to-mid 1980s were redeemed at
their first optional call date, the total number of outstanding tax-
exempt bonds has declined. This combination of a declining net
supply and significant amounts of assets helped maintain investor
demand in recent months.
It is unlikely that the municipal bond market will continue to
significantly outperform US Treasury securities in the near future.
The tax-exempt bond market's recent performance has led to the yield
ratio between long-term taxable and tax-exempt securities falling
from in excess of 90% to approximately 85%. While still historically
very attractive, some institutional investors, particularly short-
term traders, began to view the tax-exempt bond market's recent
outperformance as an opportunity to sell a relatively expensive
asset. However, to the long-term investor, such a sale would
represent the loss of an attractively priced asset which may not be
easily replaced given the relative scarcity of municipal bonds under
present supply conditions.
Looking ahead, no clear consensus for the direction of interest
rates currently exists. Perhaps, the primary focus going forward
will be the extent to which the increase in interest rates seen thus
far in 1996 will negatively impact future economic growth. Should
growth slow in the interest rate-sensitive sectors of the economy,
like housing, auto, and consumer spending, as many economists assert
is likely, then bond yields are likely to decline. Under such a
scenario, the municipal bond market's performance is likely to
closely mirror that of the US Treasury bond market.
Portfolio Strategy
For the 12 months ended October 31, 1996, the fund was managed with
the intention of sustaining an attractive level of tax-exempt income
while seeking to achieve an above-average total return. We entered
the 12-month period optimistic that interest rates would decline in
response to the sluggish economy that we expected the current 7%
yield on the US Treasury bond to create. To take advantage of this
scenario, we extended the fund's duration and lowered the cash
reserve position to a minimal level. From October 1995 to January
1996 the impression that the economy had slowed and that there was
no inflation on the horizon was enough to lower interest rates
almost 50 basis points. Two rounds of Federal Reserve Board easings
in December and January lulled investors into complacency. This set
the stage for a sudden loss of investor confidence as an undeniably
strong employment number in March blindsided the market and began a
period of extreme volatility, which continued through the end of
October. Looking ahead, we expect this volatile period to continue,
and our investment strategy will remain neutral until the direction
of the economy becomes clearer.
<PAGE>
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
Senior Vice President
(Roberto Roffo)
Roberto Roffo
Portfolio Manager
November 22, 1996
<PAGE>
We are pleased to announce that Roberto Roffo is responsible for the
day-to-day management of Taurus MuniNew York Holdings, Inc. Mr.
Roffo has been employed by Merrill Lynch Asset Management, L.P. (an
affiliate of the Fund's investment adviser) since 1992 and as Vice
President since 1996. Prior thereto, he was Operations Manager with
State Street Bank and Trust Company from 1989 to 1992.
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>
PROXY RESULTS
<TABLE>
During the six-month period ended October 31, 1996, Taurus MuniNew
York Holdings, Inc. Common Stock shareholders voted on the following
proposals. The proposals were approved at a special shareholders'
meeting on June 17, 1996. The description of each proposal and
number of shares voted are as follows:
<CAPTION>
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1.To elect the fund's Board of Trustees: Cynthia A. Montgomery 6,269,257 201,976
Charles C. Reilly 6,269,257 201,976
Kevin A. Ryan 6,268,897 202,336
Arthur Zeikel 6,269,257 201,976
<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. 6,207,976 61,058 202,199
<CAPTION>
During the six-month period ended October 31, 1996, Taurus
MuniNew York Holdings, Inc. Preferred Stock shareholders
voted on the following proposals. The proposals were approved
at a shareholders' meeting on June 17, 1996. The description
of each special proposal and number of shares voted are as
follows:
Shares Voted Shares Voted
For Without Authority
<S> <C> <C>
1.To elect the fund's Board of Directors: Ronald W. Forbes,
Cynthia A. Montgomery, Charles C.Reilly, Kevin A. Ryan,
Richard R. West and Arthur Zeikel 1,000 0
<PAGE>
<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. 1,000 0 0
</TABLE>
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 Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
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--98.6%
<S> <S> <C> <S> <C>
AAA Aaa $1,600 Buffalo, New York, Sewer Authority Revenue Bonds, Series F, 6% due
7/01/2013 (c) $ 1,714
AAA Aaa 5,000 Metropolitan Transportation Authority, New York, Dedicated Tax Fund,
Series A, 5.25% due 4/01/2026 (e) 4,728
BBB Baa1 3,000 Metropolitan Transportation Authority, New York, Transit Facilities Service
Contract, Refunding, Series 5, 7% due 7/01/2012 3,237
A1+ NR* 300 Nassau County, New York, IDA, Civic Facility Revenue Bonds (Cold Spring
Harbor Laboratory Project), VRDN, 3.50% due 7/01/2019(a) 300
BBB+ Baa1 2,000 New York City, New York, GO, Refunding, Series A, 6.50% due 8/01/2011 2,066
A1+ NR* 1,500 New York City, New York, IDA, Civic Facility Revenue Bonds (National
Audobon Society), VRDN, 3.40% due 12/01/2014 (a) 1,500
<PAGE>
BB+ Baa2 2,000 New York City, New York, IDA, Special Facility Revenue Bonds (1990 AMR/
American Airlines Inc. Project), AMT, 7.75% due 7/01/2019 2,107
New York City, New York, Municipal Water Finance Authority, Water and Sewer
System Revenue Bonds:
A- A 3,375 RIB, 7.716% due 6/15/2025 (f) 3,439
AAA Aaa 2,000 Series 1994-A, 7% due 6/15/2015 (c) 2,204
A- A 1,290 Series A, 6.75% due 6/15/2017 1,390
A1+ VMIG1++ 1,100 VRDN, Series C, 3.50% due 6/15/2023 (a)(c) 1,100
A1+ VMIG1++ 80 VRDN, Series G, 3.60% due 6/15/2024 (a)(c) 80
A1+ VMIG1++ 900 New York City, New York, Trust for Cultural Resources Revenue Bonds
(Soloman R. Guggenheim), VRDN, Series B, 3.40% due 12/01/2015 (a) 900
AAA Aaa 3,500 New York State Dormitory Authority, Lease Revenue Refunding Bonds
(State University Dormitory Facilities), Series A, 5.30% due 7/01/2024 (b) 3,343
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 6,000 (City University System), Third Generation, Series 1, 5.375% due
7/01/2025 (b) 5,791
A1+ VMIG1++ 1,800 (Cornell University), VRDN, Series B, 3.40% due 7/01/2025 (a) 1,800
BBB Baa1 8,000 (Department of Health), 5.50% due 7/01/2025 7,424
BBB+ Baa1 2,370 (Mental Health Services Facilities Improvement), Series B, 5.375% due
2/15/2026 2,161
AAA Aaa 1,000 Refunding (Department of Education), 5.75% due 7/01/2021 (h) 997
AAA Aa 5,000 Refunding (Long Island Medical Center), Series A, 7.75% due 8/15/2027 (d) 5,284
BBB- Baa1 1,000 (State University Athletic Facilities), 7.25% due 7/01/2021 1,089
BBB+ Baa1 2,250 (State University Educational Facilities), Series C, 5.40% due 5/15/2023 2,044
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) 2,137
</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>
A1+ VMIG1++ $1,400 New York State Energy Research and Development Authority, PCR
(New York Electric and Gas), VRDN, Series D, 3.50% due 10/01/2029 (a) $ 1,400
AAA Aaa 1,065 New York State, HFA, M/F Housing Revenue Bonds, AMT, Series A, 7.75%
due 11/01/2020 (b) 1,143
<PAGE>
New York State Local Government Assistance Corporation:
A A 2,500 Refunding, Series B, 5.50% due 4/01/2021 2,387
A A 1,000 Series A, 6% due 4/01/2024 1,011
A A 2,000 Series D, 5% due 4/01/2023 1,782
BBB Baa 2,485 New York State Medical Care Facilities Finance Agency Revenue Bonds
(Brookdale Hospital Medical Center), Series A, 6.85% due 2/15/2017 2,597
New York State Mortgage Agency, Homeownership Revenue Bonds:
NR* Aa 3,270 AMT, Series 44, 7.50% due 4/01/2026 3,539
NR* Aa 2,500 AMT, Series 50, 6.625% due 4/01/2025 2,627
NR* Aa 5,750 AMT, Series HH-3, 7.95% due 4/01/2022 6,106
NR* Aa 1,100 Series EE-2, 7.50% due 4/01/2016 1,160
NR* Aa 4,550 New York State Mortgage Agency Revenue Bonds, Series B-41, 6.30% due
10/01/2017 4,686
BBB Baa1 3,170 New York State Thruway Authority, Service Contract Revenue Bonds
(Local Highway and Bridge), 5.25% due 4/01/2013 2,933
New York State Urban Development Corporation Revenue Bonds:
BBB Baa1 5,000 (Correctional Capital Facilities), Series 6, 5.375% due 1/01/2025 4,565
BBB Baa1 3,265 Refunding (University Facilities Grants), 5.50% due 1/01/2015 3,141
Port Authority of New York and New Jersey, Consolidated Bonds:
AA- A1 3,000 71st Series, 6.50% due 1/15/2026 3,156
AA- A1 3,000 72nd Series, 7.35% due 10/01/2002 (g) 3,446
BBB Baa1 4,000 Triborough Bridge and Tunnel Authority, New York (Convention Center
Project), Series E, 7.25% due 1/01/2010 4,552
AAA Aaa 2,000 Triborough Bridge and Tunnel Authority, New York, General Purpose
Revenue Refunding Bonds, Series Y, 6.125% due 1/01/2021 (h) 2,155
Puerto Rico--0.2%
A1+ VMIG1++ 200 Puerto Rico Commonwealth, Government Development Bank, Refunding,
VRDN, 3.30% due 12/01/2015 (a) 200
Total Investments (Cost--$104,535)--98.8% 109,421
Other Assets Less Liabilities--1.2% 1,348
--------
Net Assets--100.0% $110,769
========
<PAGE>
<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, 1996.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)FHA Insured.
(e)MBIA Insured.
(f)The interest rate is subject to change periodically and inversely
based upon prevailing market rates. The interest rate shown is the
rate in effect at October 31, 1996.
(g)Prerefunded.
(h)CAPMAC Insured.
*Not Rated.
++Highest short-term rating issued by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Ernst & Young LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL INFORMATION
<CAPTION>
Statement of Assets, Liabilities and Capital as of October 31, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$104,535,167) (Note 1a) $109,421,134
Cash 23,571
Interest receivable 1,563,833
Prepaid expenses and other assets 6,536
------------
Total assets 111,015,074
------------
Liabilities: Payables:
Dividends to shareholders (Note 1e) $ 111,134
Investment adviser (Note 2) 46,807 157,941
------------
Accrued expenses and other liabilities 88,363
------------
Total liabilities 246,304
------------
Net Assets: Net assets $110,768,770
============
<PAGE>
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.05 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 809,447
Undistributed realized capital gains on investments--net 706,850
Unrealized appreciation on investments--net 4,885,967
------------
Total--Equivalent to $12.03 net asset value per share of
Common Stock (market price--$10.875) 80,768,770
------------
Total capital $110,768,770
============
<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, 1996
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 6,588,310
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 549,888
Commission fees (Note 4) 81,648
Professional fees 79,820
Transfer agent fees 48,458
Printing and shareholder reports 43,001
Accounting services (Note 2) 34,948
Directors' fees and expenses 19,880
Listing fees 16,545
Custodian fees 12,741
Pricing fees 5,028
Other 12,752
------------
Total expenses 904,709
------------
Investment income--net 5,683,601
------------
Realized & Realized gain on investments--net 1,475,289
Unrealized Gain Change in unrealized appreciation on investments--net (1,066,500)
(Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 6,092,390
(Notes 1b, 1d & 3): ============
<PAGE>
See Notes to Financial Statements.
</TABLE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended October 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 5,683,601 $ 5,934,650
Realized gain (loss) on investments--net 1,475,289 (64,466)
Change in unrealized appreciation/depreciation on investments
--net (1,066,500) 6,364,528
------------ ------------
Net increase in net assets resulting from operations 6,092,390 12,234,712
------------ ------------
Dividends & Investment income--net:
Distributions to Common Stock (4,660,309) (4,765,156)
Shareholders Preferred Stock (980,749) (1,138,986)
(Note 1e): Realized gain on investments--net:
Common Stock (566,101) (343,596)
Preferred Stock (134,351) (43,734)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (6,341,510) (6,291,472)
------------ ------------
Net Assets: Total increase (decrease) in net assets (249,120) 5,943,240
Beginning of year 111,017,890 105,074,650
------------ ------------
End of year* $110,768,770 $111,017,890
============ ============
<FN>
*Undistributed investment income--net $ 809,447 $ 766,904
============ ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<PAGE>
<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: 1996 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year $ 12.07 $ 11.18 $ 13.23 $ 11.95 $ 11.64
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .85 .88 .91 .99 1.05
Realized and unrealized gain (loss) on
investments--net .05 .95 (1.76) 1.28 .32
-------- -------- -------- -------- --------
Total from investment operations .90 1.83 (.85) 2.27 1.37
-------- -------- -------- -------- --------
Less dividends and distributions to
Common Stock shareholders:
Investment income--net (.69) (.71) (.78) (.88) (.90)
Realized gain on investments--net (.08) (.05) (.28) -- --
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Stock shareholders (.77) (.76) (1.06) (.88) (.90)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:
Dividends and distributions to
Preferred Stock shareholders:
Investment income--net (.15) (.17) (.10) (.11) (.16)
Realized gain on investments--net (.02) (.01) (.04) -- --
-------- -------- -------- -------- --------
Total effect of Preferred Stock activity (.17) (.18) (.14) (.11) (.16)
-------- -------- -------- -------- --------
Net asset value, end of year $ 12.03 $ 12.07 $ 11.18 $ 13.23 $ 11.95
======== ======== ======== ======== ========
Market price per share, end of year $ 10.875 $ 10.75 $ 9.875 $ 14.25 $ 12.75
======== ======== ======== ======== ========
Total Investment Based on market price per share 8.54% 16.98% (24.38%) 19.63% 14.36%
Return:* ======== ======== ======== ======== ========
Based on net asset value per share 6.94% 16.01% (7.78%) 18.50% 10.50%
======== ======== ======== ======== ========
Ratios to Average Expenses .82% .83% .80% .86% .82%
Net Assets:** ======== ======== ======== ======== ========
Investment income--net 5.15% 5.54% 5.40% 5.82% 6.37%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end
Data: of year (in thousands) $ 80,769 $ 81,018 $ 75,075 $ 87,553 $ 77,775
======== ======== ======== ======== ========
Preferred Stock outstanding, end of year
(in thousands) $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
======== ======== ======== ======== ========
Portfolio turnover 193.24% 165.22% 65.74% 34.31% 20.18%
======== ======== ======== ======== ========
<PAGE>
Leverage: Asset coverage per $1,000 $ 3,692 $ 3,701 $ 3,503 $ 3,916 $ 3,593
======== ======== ======== ======== ========
Dividends Per Share Investment income--net $ 817 $ 949 $ 573 $ 626 $ 839
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 effects 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 that occurred on December 1, 1994.
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.
(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.
<PAGE>
(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.
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.
<PAGE>
(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) 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.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended October 31, 1996 were $195,483,440 and
$201,637,764, respectively.
Net realized and unrealized gains (losses) as of October 31, 1996
were as follows:
Realized Unrealized
Gains (Losses) Gains
Long-term investments $1,440,618 $4,885,967
Short-term investments (1,365) --
Financial futures contracts 36,036 --
---------- ----------
Total $1,475,289 $4,885,967
========== ==========
<PAGE>
As of October 31, 1996, net unrealized appreciation for Federal
income tax purposes aggregated $4,885,967, of which $4,946,306
related to appreciated securities and $60,339 related to depreciated
securities. The aggregate cost of investments at October 31, 1996
for Federal income tax purposes was $104,535,167.
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of capital stock,
including Preferred Stock, par value $.10 per share, all of which
were initially classified as Common Stock. The Board of Directors is
authorized, however, to reclassify any unissued shares of capital
stock without approval of the holders of Common Stock.
Common Stock
For the year ended October 31, 1996, shares issued and outstanding
remained constant at 6,714,921. At October 31, 1996, total paid-in
capital amounted to $74,366,506.
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, 1996 was 3.30%.
As of October 31, 1996, 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, 1996, MLPF&S, an affiliate of FAM, earned $66,446 as
commissions.
5. Subsequent Event:
On November 8, 1996, the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the amount
of $.058549 per share, payable on November 27, 1996 to shareholders
of record as of November 18, 1996.
<AUDIT-REPORT>
REPORT OF INDEPENDENT AUDITORS
<PAGE>
To the Shareholders and Board of Directors,
Taurus MuniNew York Holdings, Inc.
We have audited the accompanying statement of assets, liabilities
and capital of Taurus MuniNew York Holdings, Inc., including the
schedule of investments, as of October 31, 1996, 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.
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, 1996, by correspondence with the custodian. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Taurus MuniNew York Holdings, Inc., at October
31, 1996, 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 25, 1996
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid by Taurus
MuniNew York Holdings, Inc. during its taxable year ended October
31, 1996 qualify as tax-exempt interest dividends for Federal income
tax purposes. Additionally, the following table summarizes the per
share capital gain distributions paid by the fund during the year:
<PAGE>
Payable Short-Term
Date Capital Gains
Common Stock Shareholders 12/28/95 $.084305
Preferred Stock Shareholders 11/29/95 $ 72.88
12/27/95 $ 39.79
Please retain this information for your records.
