TAURUS
MUNINEW YORK
HOLDINGS, INC.
FUND LOGO
Semi-Annual Report
April 30, 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
James C. Cahill, 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. Statements and other information
herein are as dated and are subject to change.
Taurus MuniNew York
Holdings, Inc.
Box 9011
Princeton, NJ
08543-9011
Taurus MuniNew York Holdings, Inc.
<PAGE>
TO OUR SHAREHOLDERS
For the six months ended April 30, 1996, the Common Stock of Taurus
MuniNew York Holdings, Inc. earned $0.437 per share income
dividends, which included earned and unpaid dividends of $0.057.
This represents a net annualized yield of 7.58%, based on a month-
end net asset value of $11.58 per share. Over the same period, the
total investment return on the fund's Common Stock was -0.25%, based
on a change in per share net asset value from $12.07 to $11.58, and
assuming reinvestment of $0.441 per share income dividends.
For the six-month period ended April 30, 1996, the fund's Auction
Market Preferred Stock had an average yield of 3.69%.
The Environment
Investor perceptions regarding the US economy changed over the
course of the six-month period ended April 30, 1996. As 1995 drew to
a close and 1996 began, it appeared that the US economy was losing
momentum. Lackluster retail sales, increases in initial unemployment
claims (along with weak job and income growth), and evidence of
slowing in the manufacturing sector all suggested that the rate of
economic growth was decelerating, with some forecasters even
suggesting the possibility of an imminent recession.
However, the consensus outlook for the rate of future economic
growth changed dramatically with the report of stronger-than-
expected employment data for February and March. As a result,
investors began to anticipate renewed economic growth. Long-term
interest rates rose, and the Federal Reserve Board left monetary
policy on hold. Adding to investor concerns was the report that the
Knight RidderCommodity Research Bureau Index was near an eight-year
high, largely because of an increase in agricultural prices and an
upward spike in the price of crude oil.
Investors are likely to continue to focus on the probable direction
of economic activity and Federal Reserve Board monetary policy in
the weeks ahead. At this time, inflationary pressures do not seem to
be building and the capital spending, housing and consumption
sectors are still relatively weak, which suggest that the economy is
not on the verge of overheating. Nevertheless, it is likely that
further indications of stronger economic activity in the weeks ahead
may add to investor concerns that accelerating economic activity
could lead to higher inflation and interest rates.
<PAGE>
The Municipal Market
During the six months ended April 30, 1996, tax-exempt bond yields
rose as investors became increasingly concerned that recent economic
growth would reignite inflationary pressures. Through early February
1996, municipal bond yields continued their earlier declines
supported by continued moderate economic growth and favorable
inflationary expectations. As measured by the Bond Buyer Revenue
Bond Index, yields on uninsured, A-rated municipal revenue bonds
declined an additional 30 basis points (0.30%) to 5.70% by early
February. As signs of emerging economic growth became more numerous,
particularly with the release of the strong March employment
figures, inflation fears increased and bond yields rose in response
for the remainder of the six-month period ended April 30, 1996. At
April 30, 1996, long-term municipal bond yields were approximately
6.30%, an increase of approximately 30 basis points over the last
six months. The rise in US Treasury bond yields was more
substantial. Over the last six months, yields on US Treasury
securities rose approximately 60 basis points to 6.90%. During the
April period, the municipal bond market reversed the trend seen
throughout much of 1995 and significantly outperformed the US
Treasury bond market.
The municipal bond market's recent outperformance was largely the
result of two principal factors. First, and perhaps more important,
much of the earlier concern regarding proposed changes in Federal
income tax codes and their effect on the tax treatment of tax-exempt
bond income has dissipated. As the negative revenue impact of the
various proposals, such as the flat tax, became apparent, the
likelihood of immediate reform quickly diminished. When the Kemp
Commission dealing with Federal income tax reform released its
findings early in 1996, the obvious need for reform was highlighted.
However, no specific recommendations of a flat tax, value-added tax
or any other reform were made. Consequently, fears of losing the
favored tax treatment of municipal bond income declined even
further. As a percentage of Treasury bond yields, tax-exempt bond
yield ratios quickly declined from 95% to approximately 90%. This
allowed the municipal bond market to maintain much of the gains made
since early 1995.
The second major factor leading to the municipal bond market's
recent improvement was the return of a more favorable technical
environment. Over the past six months, approximately $90 billion in
municipal securities were underwritten, an increase of approximately
45% versus the comparable period a year earlier. However, much of
this increase was biased by recent underwritings dedicated toward
refinancing. Like individual homeowners, municipal issuers sought to
refinance their existing higher-couponed debt as tax-exempt bond
yields declined from their highs in 1995. In recent months such
refinancings were estimated to represent at least 50% of total
issuance. However, the recent rise in tax-exempt interest rates
slowed the pace of such refinancings. Over the last three months
approximately $40 billion in long-term tax-exempt securities were
underwritten, an increase of 35% compared to the same period a year
ago. At current interest rate levels large amounts of refundings are
unlikely and the rate of new bond issuance should continue to
decline.
<PAGE>
Additionally, investors continue to receive significant amounts of
assets derived from coupon income, bond maturities, and proceeds
from early redemptions. In recent months investors received over $30
billion in such assets. These cash flows helped maintain individual
retail investor demand in recent months. Additionally, major
institutional investors, such as certain insurance companies whose
underwriting profits were cyclically high, demonstrated significant
ongoing interest in the tax-exempt bond market, particularly on
higher-quality securities. Individual and institutional investor
demand was strong enough during the six-month period ended April 30,
1996 to absorb the relative increase in bond issuance.
Looking ahead, we believe the municipal bond market is likely to
continue to outperform the US Treasury market. Investor demand
should remain adequate to absorb new bond issuance. It is also
unlikely that the rapid pace of issuance seen thus far in 1996 will
be maintained. The recent rise in yields made further bond
refinancings economically unfeasible. Since these refinancings were
the driving force of recent bond issuance, as the amount of these
refundings decline, overall issuance should decline. This should
allow the current demand/supply balance to be easily maintained in
upcoming months.
Additionally, as a percentage of US Treasury bond yields, long-term
municipal bond yields remain historically attractive. It is likely
that recent interest rate increases will have a negative impact on
economic growth, perhaps as early as late summer 1996. With long-
term mortgage rates above 8%, the domestic housing sector has
already indicated signs of slower growth. If other interest rate
sectors of the economy, such as the automobile industry, begin to
show similar adverse effects, taxable interest rates would be poised
to resume their decline. With long-term tax-exempt revenue bonds
yielding approximately 90% of their taxable counterparts, municipal
bond yields are poised to decline further.
Portfolio Strategy
We entered the six-month period ended April 30, 1996 very optimistic
that interest rates would decline. This optimism was based on the
belief that the economy was slowing and that advances on a balanced
Federal budget agreement would be beneficial to the fixed-income
markets. To take advantage of this anticipated decline in interest
rates, we decreased cash reserves to 1% of net assets, and increased
the fund's duration. This strategy benefited the portfolio's
performance as long-term interest rates declined over 30 basis
points through the end of December.
<PAGE>
The new year brought the beginning of a reversal in the trend of
lower interest rates. By late February, signs of a strengthening
economy began to undermine investor confidence in the fixed-income
market. In March an explosive employment report seemed to confirm a
surge in the growth of the US economy, and yields began to rise
rapidly. Prior to the backup in yields, we gradually increased the
fund's cash reserves while decreasing its duration. This strategy
enabled the fund to be less sensitive to the significant backup in
yields experienced in the fixed-income markets. One other positive
factor for the fund during that time was that municipal bonds
significantly outperformed US Treasury securities.
Because of the various influences that affected the economy, such as
the severe winter weather and the Government shutdowns, the economic
data released so far in 1996 was cloudy and subject to many
interpretations, but overall pointed to a stronger economy. The data
suggested that the economy may be picking up steam, which warrants a
cautious approach to the market until a clearer view of the
economy's direction emerges. Looking ahead, the fund will maintain
its cautious approach to the market until a clearer path for
interest rates becomes evident.
In Conclusion
We appreciate your ongoing interest in Taurus MuniNewYork Holdings,
Inc., and we look forward to serving your investment needs and
objectives in the months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
<PAGE>
(James C. Cahill)
James C. Cahill
Vice President and Portfolio Manager
May 23, 1996
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 Authority
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--95.5%
<S> <S> <C> <S> <C>
AAA Aaa $1,600 Buffalo, New York, Sewer Authority Revenue Bonds, Series F, 6%
due 7/01/2013 (c) $ 1,666
BBB Baa1 3,000 Metropolitan Transportation Authority, New York, Transit Facilities
Service Contract, Revenue Refunding Bonds, Series 5, 7% due 7/01/2012 3,171
AAA Aaa 5,000 New York City, New York, GO, UT, Series J, 6% due 2/15/2005 (e) 5,322
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 2,110
<PAGE>
New York City, New York, Municipal Water Finance Authority, Water and
Sewer System Revenue Bonds:
A- A 4,500 Series A, 5.50% due 6/15/2023 4,122
A1+ VMIG1++ 2,700 VRDN, Series C, 4% due 6/15/2022 (a)(c) 2,700
AAA VMIG1++ 900 VRDN, Series C, 4% due 6/15/2023 (a)(c) 900
New York State Dormitory Authority Revenue Bonds:
A1+ VMIG1++ 700 (Cornell University), VRDN, Series B, 4.10% due 7/01/2025 (a) 700
BBB+ Baa1 6,800 (Court Facilities Lease), Series A, 5.375% due 5/15/2016 6,047
BBB+ Baa1 5,540 (Court Facilities Lease), Series A, 5.50% due 5/15/2023 4,909
BBB Baa1 5,000 (Department of Health), 5.50% due 7/01/2025 4,432
AAA Aa 5,000 Refunding (Long Island Medical Center), Series A, 7.75% due 8/15/2027 (d) 5,310
BBB- Baa1 1,000 (State University Athletic Facilities), 7.25% due 7/01/2021 1,079
BBB- Baa1 5,000 (Upstate Community Colleges), Series A, 5.70% due 7/01/2021 4,582
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) 2,090
AAA Aaa 4,950 New York State Energy Research and Development Authority, Gas Facilities
Revenue Refunding Bonds (Brooklyn Union Gas Company), Series A, 5.50% due
1/01/2021 (e) 4,675
A1+ NR* 1,700 New York State Environmental Facilities Corporation, Resource Recovery Revenue
Bonds (Huntington Project), VRDN, AMT, 4.10% due 11/01/2014 (a) 1,700
AAA Aaa 1,065 New York State HFA, M/F Housing Revenue Bonds, AMT, Series A, 7.75% due
11/01/2020 (b) 1,141
New York State Local Government Assistance Corporation Revenue Bonds:
A A 2,500 Refunding, Series B, 5.50% due 4/01/2021 2,312
A A 2,000 Series D, 5% due 4/01/2023 1,713
</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>
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 $ 2,559
AAA Aaa 2,000 (Long-Term Health Care), Series D, 6.50% due 11/01/2015 (f) 2,077
New York State Mortgage Agency, Homeownership Revenue Bonds:
NR* Aa 3,275 AMT, Series 44, 7.50% due 4/01/2026 3,433
NR* Aa 5,750 AMT, Series HH-3, 7.95% due 4/01/2022 6,049
NR* Aa 1,100 Series EE-2, 7.50% due 4/01/2016 1,159
<PAGE>
BBB Baa1 3,170 New York State Thruway Authority, Service Contract Revenue Bonds
(Local Highway and Bridge), 5.25% due 4/01/2013 2,820
New York State Urban Development Corporation Revenue Bonds:
BBB Baa1 3,265 Refunding (University Facilities Grants), 5.50% due 1/01/2015 3,024
AAA Aaa 3,650 (Sports Facility Assistance Program), Series A, 5.50% due 4/01/2019 (e) 3,428
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AA- A1 3,000 71st Series, 6.50% due 1/15/2026 3,117
AA- A1 3,000 72nd Series, 7.35% due 10/01/2002 (g) 3,441
A1+ VMIG1++ 1,800 Port Authority of New York and New Jersey, Special Obligation Revenue
Bonds (Versatile Structure Obligation), VRDN, AMT, Series 1, 4.10% due
8/01/2028 (a) 1,800
A1+ VMIG1++ 500 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Multi-Modal Syracuse
University Project), VRDN, 4.10% 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 4,453
A+ Aa 5,000 (General Purpose), Series A, 5% due 1/01/2024 4,329
Puerto Rico--0.2%
A1+ VMIG1++ 200 Puerto Rico Commonwealth, Government Development Bank, Revenue Refunding
Bonds, VRDN, 3.75% due 12/01/2015 (a) 200
Total Investments (Cost--$101,082)--95.7% 103,070
Other Assets Less Liabilities--4.3% 4,676
--------
Net Assets--100.0% $107,746
========
<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 April 30, 1996.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)FHA Insured.
(e)MBIA Insured.
(f)FSA Insured.
(g)Prerefunded.
*Not Rated.
++Highest short-term rating issued by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL INFORMATION
<CAPTION>
Statement of Assets, Liabilities and Capital as of April 30, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$101,081,594) (Note 1a) $103,070,078
Cash 84,078
Receivables:
Securities sold $ 3,179,914
Interest receivable 1,626,126 4,806,040
------------
Prepaid expenses and other assets 6,750
------------
Total assets 107,966,946
------------
Liabilities: Payables:
Dividends to shareholders (Note 1e) 125,826
Investment adviser (Note 2) 47,354 173,180
------------
Accrued expenses and other liabilities 47,704
------------
Total liabilities 220,884
------------
Net Assets: Net assets $107,746,062
============
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 $ 30,000,000
liquidation preference) 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 821,208
Undistributed realized capital gains on investments--net 569,864
Unrealized appreciation on investments--net 1,988,484
------------
Total--Equivalent to $11.58 net asset value per share of
Common Stock (market price--$11.375) 77,746,062
------------
Total capital $107,746,062
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six
Months Ended
April 30, 1996
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 3,322,821
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 276,405
Professional fees 38,758
Commission fees (Note 4) 37,520
Accounting services (Note 2) 24,565
Transfer agent fees 23,308
Printing and shareholder reports 19,078
Directors' fees and expenses 9,628
Listing fees 8,176
Custodian fees 6,159
Pricing fees 2,513
Other 7,274
------------
Total expenses 453,384
------------
Investment income--net 2,869,437
------------
Realized & Unreal- Realized gain on investments--net 1,338,303
ized Gain (Loss) on Change in unrealized appreciation on investments--net (3,963,983)
Investments--Net ------------
(Notes 1b, 1d & 3): Net Increase in Net Assets Resulting from Operations $ 243,757
============
</TABLE>
<PAGE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 2,869,437 $ 5,934,650
Realized gain (loss) on investments--net 1,338,303 (64,466)
Change in unrealized appreciation/depreciation on
investments--net (3,963,983) 6,364,528
------------ ------------
Net increase in net assets resulting from operations 243,757 12,234,712
------------ ------------
Dividends & Investment income--net:
Distributions to Common Stock (2,396,824) (4,765,156)
Shareholders Preferred Stock (418,309) (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 (3,515,585) (6,291,472)
------------ ------------
Net Assets: Total increase (decrease) in net assets (3,271,828) 5,943,240
Beginning of period 111,017,890 105,074,650
------------ ------------
End of period* $107,746,062 $111,017,890
============ ============
<FN>
*Undistributed investment income--net $ 821,208 $ 766,904
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
April 30, 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 period $ 12.07 $ 11.18 $ 13.23 $ 11.95 $ 11.64
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .43 .88 .91 .99 1.05
Realized and unrealized gain (loss) on
investments--net (.40) .95 (1.76) 1.28 .32
-------- -------- -------- -------- --------
Total from investment operations .03 1.83 (.85) 2.27 1.37
-------- -------- -------- -------- --------
Less dividends and distributions to
Common Stock shareholders:
Investment income--net (.36) (.71) (.78) (.88) (.90)
Realized gain on investments--net (.08) (.05) (.28) -- --
-------- -------- -------- -------- --------
Total dividends and distributions to
Common Stock shareholders (.44) (.76) (1.06) (.88) (.90)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:
Dividends and distributions to
Preferred Stock shareholders:
Investment income--net. (.06) (.17) (.10) (.11) (.16)
Realized gain on investments--net (.02) (.01) (.04) -- --
-------- -------- -------- -------- --------
Total effect of Preferred Stock activity (.08) (.18) (.14) (.11) (.16)
-------- -------- -------- -------- --------
Net asset value, end of period $ 11.58 $ 12.07 $ 11.18 $ 13.23 $ 11.95
======== ======== ======== ======== ========
Market price per share, end of period $ 11.375 $ 10.75 $ 9.875 $ 14.25 $ 12.75
======== ======== ======== ======== ========
Total Investment Based on market price per share 10.02%+++ 16.98% (24.38%) 19.63% 14.36%
Return:** ======== ======== ======== ======== ========
Based on net asset value per share (.25%)+++ 16.01% (7.78%) 18.50% 10.50%
======== ======== ======== ======== ========
Ratios to Average Expenses .82%* .83% .80% .86% .82%
Net Assets:*** ======== ======== ======== ======== ========
Investment income--net 5.17%* 5.54% 5.40% 5.82% 6.37%
======== ======== ======== ======== ========
<PAGE>
Supplemental Net assets, net of Preferred Stock, end
Data: of period (in thousands) $ 77,746 $ 81,018 $ 75,075 $ 87,553 $ 77,775
======== ======== ======== ======== ========
Preferred Stock outstanding, end of period
(in thousands) $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
======== ======== ======== ======== ========
Portfolio turnover 122.95% 165.22% 65.74% 34.31% 20.18%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,592 $ 3,701 $ 3,503 $ 3,916 $ 3,593
======== ======== ======== ======== ========
Dividends Per Share Investment income--net $ 349 $ 949 $ 573 $ 626 $ 839
On Preferred Stock ======== ======== ======== ======== ========
Outstanding:++
<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 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.
+++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
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) 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 offi-cers 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, 1996 were $129,718,636 and
$137,112,751, respectively.
Net realized and unrealized gains (losses) as of April 30, 1996 were
as follows:
Realized Unrealized
Gains (Losses) Gains
Long-term investments $1,158,449 $1,988,484
Short-term investments (1,365) --
Financial futures contracts 181,219 --
---------- ----------
Total $1,338,303 $1,988,484
========== ==========
As of April 30, 1996, net unrealized appreciation for Federal income
tax purposes aggregated $1,988,484, of which $3,147,237 related to
appreciated securities and $1,158,753 related to depreciated
securities. The aggregate cost as of investments at April 30, 1996
for Federal income tax purposes was $101,081,594.
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, 1996, shares issued and
outstanding remained constant at 6,714,921. At April 30, 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 April 30, 1996 was 3.62%.
As of April 30, 1996, there were 1,200 AMPS shares authorized,
issued and outstanding with a liquidation preference of $25,000 per
share.
<PAGE>
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 six months ended
April 30, 1996, MLPF&S, an affiliate of FAM, earned $35,152 as
commissions.
5. Subsequent Event:
On May 10, 1996, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$0.057313 per share, payable on May 30, 1996 to shareholders of
record as of May 21, 1996.
