<PAGE>
[GRAPHIC]
SMALL BOX ABOVE FUND NAME SHOWING
A LARGE BRIDGE IN NEW YORK.
SEMI- SMITH BARNEY
ANNUAL INTERMEDIATE
REPORT MATURITY
NEW YORK
MUNICIPALS
FUND
.......................................
MAY 31, 1995
[LOGO]
<PAGE>
Intermediate Maturity New York Municipals
Fund
DEAR SHAREHOLDER:
We are pleased to provide you with the
semi-annual report and
portfolio of investments for Smith Barney
Intermediate
Maturity New York Municipals Fund for the
six-month period
ended May 31, 1995. Although bond prices declined
precipitously during
the first part of the Fund's fiscal year, the
municipal market
improved substantially in late 1994 and into 1995,
allowing the Fund
to provide investors in Class A shares with a
total return of 9.45%
for the six-month period. Class C shares, a newly-
available class of
shares, earned a total return of 7.97% for the
period between December
7, 1994 and May 31, 1995. Additional performance
data for each class
of shares during this and previous reporting
periods is available in
the "Financial Highlights" section of this report.
ECONOMIC AND MARKET UPDATE
After implementing tighter monetary policy by
raising the Federal
funds rate 300 basis points (three percentage
points) over a 13-month
period beginning in February 1994, the Federal
Reserve Board has
succeeded in slowing the rate of economic growth.
Growth continued to
slow during the second quarter of 1995 with the
decline in consumption
expenditures intensifying. The retail sector of
the economy appears
even softer and most retail chains seem to have
little pricing power.
Even the automobile industry, which enjoyed a very
strong 1994, has
encountered weaker sales in 1995. Individuals
financed a large portion
of their purchases with debt throughout 1994 and
as a result
individuals' debt levels are becoming a source of
concern.
This is acting as a drag on consumption expenditures and
could continue to
hamper consumption trends for the rest of 1995 as consumers
try to bring their
debt levels down to more manageable levels. The industrial
side of the economy
has benefited from strong overseas demand but this also
appears to be moderating
based upon recent economic statistics on industrial
production. In summary,
while we do not anticipate a recession, we believe an
economic slowdown exists
that will present more of a challenge to corporate
profitability, especially in
those sectors of the economy that depend on the consumer.
Although unemployment
rates are relatively low, the corporate sector continues to
trim costs and cut
payrolls, which could further hinder consumer spending.
1
<PAGE>
After initially rising for most of 1994 as the Federal
Reserve raised short-term
interest rates, longer-term interest rates declined since
November as it became
apparent that the Federal Reserve was successfully slowing
the rate of economic
growth and keeping inflation under control. The municipal
market had strong
performance during the first five months of 1995. New bond
issuance is at
remarkably low levels both nationally and in New York State,
contributing to
increases in prices for tax-exempt securities. A defining
moment for the
municipal market occurred when Orange County, California
filed for bankruptcy in
December of 1994 and cast a pall on the entire market. Its
impact on the broader
market since then has been minimal, but has strongly
impacted the securities of
the County itself.
Investors in New York tax-exempt issues were confronted by
two budget problems
during the past six months. Not only is the State having
deficit problems but
New York City, which had shown some improvement, also
suffered a setback. The
State's budget was delayed by 59 days, resulting in a dearth
of major issuance.
Scarcity of supply was compounded by the Governor's ordered
slowdown in capital
projects. New York City's budget difficulties led to a
recent and
much-publicized downgrade in rating to BBB+ by Standard &
Poor's Corporation,
one of the major ratings agencies.
Other uncertainties surround the market. Among these are the
many flat tax
proposals being championed by members of both political
parties. Real
legislative action is several years away and must be REVENUE
NEUTRAL to make any
economic sense -- a very difficult balancing act to
accomplish. These
discussions have caused periodic weakness in the municipal
market during the
past months and will no doubt continue to cause periodic
weakness over the next
few years, which may create some attractive investment
opportunities.
PORTFOLIO STRATEGY
At the end of the reporting period, 97% of the portfolio was
rated investment
grade (BBB/Baa and higher) by either Standard & Poor's
Corporation or Moody's
Investors Service, Inc. The Fund invested its assets in
general obligation,
transportation, hospital and education bonds. The average
maturity of the Fund
was 5.3 years. This investment allocation is very similar to
the one we reported
to you in the Fund's annual report.
2
<PAGE>
We look forward to reporting to you in the Fund's next
report to investors.
Should you have any questions about your investment in the
Fund or how other
Smith Barney mutual funds may be useful in helping you reach
your financial
goals, please speak with your Smith Barney Financial
Consultant.
Sincerely,
Heath B. McLendon Lawrence T.
McDermott
CHAIRMAN OF THE BOARD VICE PRESIDENT AND
INVESTMENT OFFICER
JULY 18, 1995
3
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- ---------------
PORTFOLIO HIGHLIGHTS (UNAUDITED)
MAY 31, 1995
INDUSTRY BREAKDOWN
Pie chart depicting the allocation of the Income Trust
Intermediate Maturity New
York Municipals Fund's investment securities held at May 31,
1995 by industry
classification. The pie is broken in pieces representing
industries in the
following percentages:
<TABLE>
<CAPTION>
INDUSTRY BREAKDOWN PERCENTAGE
<S> <C>
Pollution Control 6.2%
Education 12.3%
Utility 8.1%
Transportation 16.5%
Other Industries and Net Other
Assets and Liabilities 6.9%
Hospital 13.4%
Housing 8.0%
General Obligation 28.6%
</TABLE>
SUMMARY OF MUNICIPAL BONDS BY COMBINED RATINGS.
<TABLE>
<CAPTION>
Percent
Standard & of
Moody's Poor's Value
<S> <C> <C> <C>
-------------------------------------------
AAA OR AAA 27.9%
-------------------------------------------
AA AA 10.7
-------------------------------------------
A A 17.2
-------------------------------------------
BAA BBB 41.4
-------------------------------------------
NR NR 2.8
-------------------------------------------
100.0%
---------------
</TABLE>
AVERAGE MATURITY 5.3 years
4
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED)
MAY 31, 1995
---------------------------------------------------
- ----------
<TABLE>
<S> <C> <C>
KEY TO INSURANCE ABBREVIATONS
American Municipal Bond
AMBAC -- Assurance Corporation
Capital Guaranty Insurance
CGIC -- Corporation
Federal Guaranty Insurance
FGIC -- Corporation
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance
Municipal Bond Investors
MBIA -- Assurance
</TABLE>
<TABLE>
<CAPTION>
RATINGS
MARKET VALUE
FACE VALUE MOODY'S
S&P (NOTE 1)
<C> <S> <C>
<C> <C>
-----------------------------------------------------------
- -----------------
MUNICIPAL BONDS AND NOTES -- 96.3%
NEW YORK -- 87.7%
$ 400,000 Albany, New York, City
School District, General
Obligation, Series B, (MBIA
Insured),
6.000% due 12/15/00 Aaa
AAA $ 429,000
200,000 Babylon, New York,
Industrial Development
Authority, Babylon
Community Waste Management,
Series A,
7.650% due 7/1/97 Baa1
NR 213,250
Battery Park City
Authority, New York
Revenue:
175,000 7.400% due 5/1/02 AAA
AAA 196,219
100,000 Buffalo, New York, General
Obligation, (FGIC Insured),
5.800% due 2/1/00 Aaa
AAA 105,000
Buffalo, New York:
205,000 Series A, (MBIA Insured),
5.900% due 4/1/01 Aaa
AAA 217,556
385,000 Series B, (MBIA Insured),
5.900% due 4/1/01 Aaa
AAA 408,581
550,000 Buffalo, New York,
Municipal Water Authority,
Finance Authority, Water
Systems Revenue, (FSA
Insured),
5.350% due 7/1/02 Aaa
AAA 565,125
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
MAY 31, 1995
<TABLE>
<CAPTION>
RATINGS
MARKET VALUE
FACE VALUE MOODY'S
S&P (NOTE 1)
-----------------------------------------------------------
- -----------------
<C> <S> <C>
<C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW YORK -- (CONTINUED)
$ 200,000 Canandaigua, New York, City
School District, (AMBAC
Insured),
6.400% due 6/1/99 Aaa
AAA $ 214,500
200,000 Central Square, New York,
Central School District,
(FGIC Insured),
6.500% due 6/15/99 Aaa
AAA 215,500
250,000 Erie County, New York,
Public Improvement Project,
General Obligation, (FGIC
Insured),
5.500% due 1/15/00 Aaa
AAA 260,000
2,500,000 Housing, New York, Revenue
Refunding,
6.000% due 11/1/03 A1
AA 2,634,375
495,000 Jamestown, New York,
General Obligation, Series
A,
7.000% due 3/15/00 Baa
NR 531,506
Metropolitan Transportation
Authority, New York Service
Contract Transit Facilities
Series 5:
735,000 6.100% due 7/1/98 Baa1
BBB 757,050
200,000 6.250% due 7/1/99 Baa1
BBB 208,250
100,000 Monroe County, New York,
Industrial Development
Authority, Series A,
(Genesee Hospital),
6.500% due 11/1/99 Baa
NR 101,625
2,000,000 New York, New York, EDL
Construction, Series A,
(MBIA Insured),
6.500% due 4/1/04 Aaa
AAA 2,220,000
750,000 New York, New York, City
Municipal Water Authority,
Water and Sewer Systems
Revenue, General
Obligation, Series A,
5.700% due 6/15/02 A A-
780,000
3,000,000 New York, New York, Series
A,
7.000% due 8/1/04 Baa1 A-
3,213,750
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
MAY 31, 1995
<TABLE>
<CAPTION>
RATINGS
MARKET VALUE
FACE VALUE MOODY'S
S&P (NOTE 1)
-----------------------------------------------------------
- -----------------
<C> <S> <C>
<C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW YORK -- (CONTINUED)
$ 500,000 New York, New York, Series
B,
6.250% due 10/1/01 Baa1 A-
$ 515,625
New York, New York, Series
C, Subseries C-1, (MBIA
Insured):
345,000 Prerefunded Balance,
6.000% due 8/1/01 Aaa
AAA 368,719
5,000 Unrefunded Balance,
6.000% due 8/1/01 Aaa
AAA 5,325
2,000,000 New York, New York, Series
H,
5.700% due 8/1/03 Baa1 A-
1,980,000
New York State,
Certificates of
Participation:
250,000 6.500% due 3/1/96 Baa1
BBB 253,125
300,000 6.900% due 3/1/98 Baa1
BBB 313,875
New York State Dormitory
Authority Revenue Loan:
1,000,000 (City University), Second
Generation, Series A,
5.500% due 7/1/03 Baa1
BBB 1,006,250
1,000,000 (City University), Series
F,
5.200% due 7/1/03 Baa1
BBB 980,000
500,000 College and University
Educational Loan, (MBIA
Insured),
6.200% due 7/1/01 Aaa
AAA 533,125
1,500,000 (Court Facilities Lease
Revenue), Series A,
6.000% due 5/15/03 Baa1
BBB+ 995,000
365,000 (Episcopal Health), (FHA
Insured),
5.200% due 2/1/03 NR
AA 367,738
380,000 (Genesee Valley), Series B,
(FHA Insured),
6.300% due 8/1/02 NR
AA 412,775
750,000 (Manhattan College),
5.900% due 7/1/02 NR
AA 797,813
New York State Dormitory
Authority Revenue Loan:
State University
Educational Facilities:
Series A,
1,000,000 5.300% due 5/15/03 Baa1
BBB+ 1,567,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
MAY 31, 1995
<TABLE>
<CAPTION>
RATINGS
MARKET VALUE
FACE VALUE MOODY'S
S&P (NOTE 1)
-----------------------------------------------------------
- -----------------
<C> <S> <C>
<C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW YORK -- (CONTINUED)
New York State
Environmental Facilities
Corporation:
$ 500,000 Pollution Control Revenue,
State Water Revolving Fund,
Series A,
5.950% due 3/15/02 Aaa
AAA $ 536,875
200,000 Resource Recovery Revenue,
(Huntington Project),
Series A,
7.375% due 10/1/99 Baa
NR 211,000
1,135,000 Solid Waste Disposal
Revenue, (Occidental
Petroleum Corporation),
Sub-Series B,
5.500% due 9/1/03 Baa3
BBB 1,115,138
New York State Medical Care
Facilities, Revenue Bonds:
1,500,000 Series F,
6.000% due 2/15/03 Baa1
BBB+ 1,550,625
650,000 (Central Suffolk Hospital
-- Project A),
5.400% due 11/1/00 NR
BBB 646,750
815,000 Hospital and Nursing Home,
Series A, (FHA Insured),
5.500% due 8/15/04 NR
AAA 829,263
Series B, (FHA Insured):
(Long Island College)
155,000 7.250% due 2/15/98 Aa
AAA 166,625
700,000 5.650% due 8/15/02 NR
AAA 722,750
Series C, (FHA Insured):
785,000 5.900% due 8/15/02 Aa
AA 809,531
205,000 5.950% due 8/15/09 NR
AAA 211,919
750,000 Longterm Health Care
Facilities, Series D, (CGIC
Insured),
5.750% due 11/1/02 Aaa
AAA 782,813
725,000 Mental Health Services,
Facilities Improvement,
Series F,
6.100% due 2/15/02 Baa1
BBB+ 754,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
MAY 31, 1995
<TABLE>
<CAPTION>
RATINGS
MARKET VALUE
FACE VALUE MOODY'S
S&P (NOTE 1)
-----------------------------------------------------------
- -----------------
<C> <S> <C>
<C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW YORK -- (CONTINUED)
New York State Medical Care
Facilities, Revenue Bonds:
(continued)
$ 600,000 Methodist Hospital, Series
A, (FHA Insured),
6.000% due 8/15/02 NR
AA $ 631,500
250,000 Secured Hospital, Series
1991-A,
6.625% due 8/15/98 Baa
BBB 262,500
New York State Municipal
Bond Bank Agency, Special
Program Revenue:
925,000 Buffalo, Series A,
6.500% due 3/15/00 NR
BBB+ 972,406
250,000 Rochester, Series A,
6.300% due 3/15/00 NR
A+ 260,938
250,000 New York State Power
Authority Revenue and
General Purpose, Series Z,
5.850% due 1/1/00 Aa
AA- 262,813
New York State Thruway
Authority, Service Contract
Local Highway and Bridges:
1,000,000 6.000% due 4/1/02 Baa1
BBB 1,035,000
1,750,000 6.000% due 4/1/03 Baa1
BBB 1,778,438
New York State Urban
Development:
Correctional Facilities,
Series 3:
1,230,000 6.700% due 1/1/99 Baa1
BBB 1,291,500
595,000 6.800% due 1/1/00 Baa1
BBB 632,188
1,000,000 5.250% due 1/1/03 Baa1
BBB 986,250
Cornell Center Project:
565,000 5.400% due 1/1/02 Baa1
BBB 566,411
595,000 5.500% due 1/1/03 Baa1
BBB 596,488
985,000 New York State Urban
Development, (MBIA
Insured),
5.300% due 4/1/04 Aaa
AAA 999,775
2,000,000 Niagara, New York, Frontier
Transportation Authority,
Greater Buffalo
International Airport,
Series B, (AMBAC Insured),
5.750% due 4/1/04 Aaa
AAA 2,092,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
MAY 31, 1995
<TABLE>
<CAPTION>
RATINGS
MARKET VALUE
FACE VALUE MOODY'S
S&P (NOTE 1)
-----------------------------------------------------------
- -----------------
<C> <S> <C>
<C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
NEW YORK -- (CONTINUED)
Niagara County, New York,
(MBIA Insured),
$ 375,000 5.700% due 8/15/01 Aaa
AAA $ 395,155
550,000 North Country, New York,
Development Authority,
Solid Waste Management
Systems Revenue, Series A,
6.500% due 7/1/01 Baa1
NR 568,563
Oneida-Herkimer, New York,
Solid Waste Disposal:
530,000 5.900% due 4/1/98 Baa
BBB 538,612
800,000 6.300% due 4/1/01 Baa
BBB 829,000
Oyster Bay, New York,
General Obligation,
200,000 Series B, (FGIC Insured),
6.400% due 2/1/99 Aaa
AAA 212,250
150,000 Series C, (FGIC Insured),
6.300% due 10/1/99 Aaa
AAA 160,312
920,000 Syracuse, New York,
Certificates of
Participation, Hancock
International Airport,
6.300% due 1/1/02 A A
994,750
500,000 Triborough Bridge & Tunnel
Authority, New York:
Special Obligation
Refunding, Series A, (MBIA
Insured),
6.000% due 1/1/00 Aaa
AAA 527,500
100,000 Wappingers Central School
District, New York, (AMBAC
Insured),
6.250% due 12/1/99 Aaa
AAA 107,250
1,500,000 Westchester County, New
York, Industrial
Development, (AGR Realty
Company Project), Revenue
Bonds,
5.750% due 1/1/02 NR
NR 1,530,000
500,000 Yonkers, New York, Series
A, (FGIC Insured),
6.000% due 2/15/01 Aaa
AAA 536,250
-----------------------------------------------------------
- -----------------
50,473,795
-----------------------------------------------------------
- -----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
MAY 31, 1995
<TABLE>
<CAPTION>
RATINGS
MARKET VALUE
FACE VALUE MOODY'S
S&P (NOTE 1)
-----------------------------------------------------------
- -----------------
<C> <S> <C>
<C> <C>
MUNICIPAL BONDS AND NOTES -- (CONTINUED)
GUAM -- 4.3%
$ 750,000 Government of Guam, Limited
Obligation, Highway
Revenue, Series A, (CGIC
Insured),
5.900% due 5/1/02 Aaa
AAA $ 795,937
Guam Airport Authority
Revenue, Series A:
560,000 5.700% due 10/1/01 NR
BBB 568,400
300,000 5.900% due 10/1/02 NR
BBB 306,750
850,000 5.100% due 10/1/03 NR
BBB 821,312
-----------------------------------------------------------
- -----------------
2,492,399
-----------------------------------------------------------
- -----------------
PUERTO RICO -- 4.3%
750,000 Commonwealth of Puerto
Rico, Highway and Transit
Authority, Series U,
5.875% due 7/1/99 Baa1 A
780,938
Puerto Rico Public
Buildings Authority, Public
Education and Health
Facilities Refunding:
500,000 Series I,
6.600% due 7/1/99 A1
A+ 531,875
600,000 Series K, (FGIC Insured),
6.000% due 7/1/01 Aaa
AAA 642,000
500,000 Series M,
5.300% due 7/1/03 Baa1 A
502,500
-----------------------------------------------------------
- -----------------
2,457,313
-----------------------------------------------------------
- -----------------
TOTAL MUNICIPAL BONDS AND NOTES
(COST $54,311,029)
55,423,507
-----------------------------------------------------------
- -----------------
TOTAL INVESTMENTS (COST $54,311,029*)
96.3% 55,423,507
OTHER ASSETS AND LIABILITIES (NET)
3.7 2,146,425
-----------------------------------------------------------
- -----------------
NET ASSETS
100.0% $57,569,932
-----------------------------------------------------------
- -----------------
<FN>
* Aggregate cost for Federal tax purposes.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- ---------------
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
MAY 31, 1995
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (Cost
$54,311,029) (Note 1)
See accompanying schedule
$55,423,507
Receivable for investment securities
sold
1,777,750
Interest receivable
879,199
Receivable for Fund shares sold
76,234
Unamortized organization costs (Note 7)
19,067
- ------------------------------------------------------------
- ------
TOTAL ASSETS
58,175,757
- ------------------------------------------------------------
- ------
LIABILITIES:
Due to custodian 314,319
Dividends payable 161,589
Payable for Fund shares redeemed 51,429
Investment advisory fee payable (Note
2) 24,028
Administration fee payable (Note 2) 11,051
Service fee payable (Note 3) 7,309
Custodian fees payable (Note 2) 4,000
Transfer agent fees payable (Note 2) 2,510
Distribution fee payable (Note 3) 15
Accrued expenses and other payables 29,575
- ------------------------------------------------------------
- ------
TOTAL LIABILITIES
605,825
- ------------------------------------------------------------
- ------
NET ASSETS
$57,569,932
- ------------------------------------------------------------
- ------
NET ASSETS consist of:
Accumulated net realized loss on
investments sold
$(1,805,108)
Unrealized appreciation of investments
1,112,478
Par value
6,921
Paid-in capital in excess of par value
58,255,641
- ------------------------------------------------------------
- ------
TOTAL NET ASSETS
$57,569,932
- ------------------------------------------------------------
- ------
NET ASSET VALUE:
CLASS A SHARES:
NET ASSET VALUE per share+
($57,383,975 DIVIDED BY 6,898,280 shares of
beneficial interest outstanding)
$8.32
- ------------------------------------------------------------
- ------
MAXIMUM OFFERING PRICE PER SHARE ($8.32
DIVIDED BY 0.980)
(based on sales charge of 2.00% of the offering
price at May 31, 1995)
$8.49
- ------------------------------------------------------------
- ------
CLASS C SHARES:
NET ASSET VALUE and offering price per share+
($185,957 DIVIDED BY 22,348 shares of beneficial
interest outstanding)
$8.32
- ------------------------------------------------------------
- ------
<FN>
+ Redemption price per share is equal to net asset value
less any applicable
contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- ---------------
STATEMENT OF OPERATIONS (UNAUDITED)
- ------------------------------------------------------------
- -
FOR THE SIX
MONTHS ENDED MAY 31, 1995
<TABLE>
<S> <C>
<C>
INVESTMENT INCOME:
Interest
1,709,286
- ------------------------------------------------------------
- --------------------
EXPENSES:
Investment advisory fee (Note 2)
$102,908
Administration fee (Note 2)
58,805
Service fee (Note 3)
44,103
Legal and audit fees
13,139
Transfer agent fees (Notes 2 and 4)
12,323
Custodian fees (Note 2)
11,687
Amortization of organization costs (Note 7)
6,021
Trustees' fees and expenses (Note 2)
4,695
Distribution fee (Note 3)
33
Other
31,062
Fees waived by investment adviser and
administrator (Note 2)
(93,783)
- ------------------------------------------------------------
- --------------------
TOTAL EXPENSES
190,993
- ------------------------------------------------------------
- --------------------
NET INVESTMENT INCOME
1,518,293
- ------------------------------------------------------------
- --------------------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS (NOTES 1
AND 5):
Net realized loss on investments sold during the
period
(249,287)
Net unrealized appreciation of investments
during the period
4,044,915
- ------------------------------------------------------------
- --------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
3,795,628
- ------------------------------------------------------------
- --------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$5,313,921
- ------------------------------------------------------------
- --------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- ---------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
5/31/95 ENDED
(UNAUDITED) 11/30/94
<S>
<C> <C>
Net investment income
$ 1,518,293 $ 3,291,902
Net realized loss on investments sold during the period
(249,287) (1,555,501)
Net unrealized appreciation/(depreciation) of
investments during the period
4,044,915 (4,498,322)
- ------------------------------------------------------------
- -------------------------
Net increase/(decrease) in net assets during the period
5,313,921 (2,761,921)
Distributions to shareholders from net investment
income:
Class A
(1,517,616) (3,291,902)
Class C
(677) --
Distributions to shareholders from net realized gain on
investments:
Class A
- -- (164,958)
Net increase/(decrease) in net assets from Fund share
transactions (Note 6):
Class A
(8,499,723) 1,078,993
Class C
184,015 --
- ------------------------------------------------------------
- -------------------------
Net decrease in net assets
(4,520,080) (5,139,788)
NET ASSETS:
Beginning of period
62,090,012 67,229,800
- ------------------------------------------------------------
- -------------------------
End of period
$ 57,569,932 $62,090,012
- ------------------------------------------------------------
- -------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- ---------------
FINANCIAL HIGHLIGHTS
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
YEAR YEAR YEAR
5/31/95
ENDED ENDED ENDED
(UNAUDITED)
11/30/94 11/30/93 11/30/92*
<S> <C>
<C> <C> <C>
Net asset value, beginning of period $ 7.80
$ 8.54 $ 8.18 $ 7.90
- ------------------------------------------------------------
- -------------------------
Net investment income+ 0.20
0.40 0.40 0.38
Net realized and unrealized gain/(loss) on
investments 0.52
(0.72) 0.38 0.28
- ------------------------------------------------------------
- -------------------------
Total from investment operations 0.72
(0.32) 0.78 0.66
Less Distributions:
Distributions from net investment income (0.20)
(0.40) (0.40) (0.38)
Distributions from net realized capital
gains --
(0.02) (0.02) --
- ------------------------------------------------------------
- -------------------------
Total Distributions (0.20)
(0.42) (0.42) (0.38)
- ------------------------------------------------------------
- -------------------------
Net asset value, end of period $ 8.32
$ 7.80 $ 8.54 $ 8.18
- ------------------------------------------------------------
- -------------------------
Total return++ 9.45%
(3.97)% 9.76% 8.59%
- ------------------------------------------------------------
- -------------------------
Ratios to average net assets/supplemental
data:
Net assets, end of period (in 000's) $57,384
$62,090 $67,230 $24,543
Ratio of operating expenses to average net
assets+++ 0.66%**
0.65% 0.65% 0.65%**
Ratio of net investment income to average
net assets 5.29%**
4.77% 4.59% 4.95%**
Portfolio turnover rate 0%
68% 22% 68%
- ------------------------------------------------------------
- -------------------------
<FN>
* The Fund commenced operations on December 31, 1991.
Those shares in existence
prior to November 7, 1994 were designated Class A
shares.
** Annualized.
+ Net investment income before waiver of fees by
investment adviser and
administrator for the six months ended May 31, 1995 and
the years ended
November 30, 1994 and 1993 were $0.19, $0.37 and $0.36,
respectively. Net
investment income before waiver of fees and
reimbursement of expenses by
investment adviser, sub-investment adviser and
administrator, custodian and
distributor for the period ended November 30, 1992 was
$0.32.
++ Total return represents aggregate total return for the
periods indicated and
does not reflect any applicable sales charges.
+++ Annualized operating expense ratios before waiver of
fees by investment
adviser and administrator for the six months ended May
31, 1995 and the years
ended November 30, 1994 and 1993 were 0.99%, 0.98% and
1.10%, respectively.
Annual operating expense ratios before waiver of fees
and reimbursement of
expenses by investment adviser, sub-investment adviser
and administrator,
custodian and distributor for the period ended November
30, 1992 was 1.45%.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- ---------------
FINANCIAL HIGHLIGHTS
FOR A CLASS C SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
5/31/95*
(UNAUDITED)
<S>
<C>
Net asset value, beginning of period
$ 7.87
- ------------------------------------------------------------
- ------------------
Net investment income+
0.19
Net realized and unrealized gain on investments
0.45
- ------------------------------------------------------------
- ------------------
Total from investment operations
0.64
Less Distributions:
Distributions from net investment income
(0.19)
- ------------------------------------------------------------
- ------------------
Total Distributions
(0.19)
- ------------------------------------------------------------
- ------------------
Net asset value, end of period
$ 8.32
- ------------------------------------------------------------
- ------------------
Total return++
7.97%
- ------------------------------------------------------------
- ------------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)
$ 186
Ratio of operating expenses to average net assets+++
1.00%**
Ratio of net investment income to average net assets
4.95%**
Portfolio turnover rate
0%
- ------------------------------------------------------------
- ------------------
<FN>
* The Fund commenced selling Class C shares on December
5, 1994.
** Annualized.
+ Net investment income before waiver of fees by
investment adviser and
administrator for the six months ended May 31, 1995 was
$0.18.
++ Total return represents aggregate total return for the
periods indicated and
does not reflect any applicable sales charge.
+++ Annualized operating expense ratio before waiver of
fees by investment
adviser and administrator for the six months ended May
31, 1995 was 1.33%.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- ---------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Smith Barney Income Trust (the "Trust") was organized as a
"Massachusetts
business trust" under the laws of the Commonwealth of
Massachusetts on October
17, 1991. The Trust is registered with the Securities and
Exchange Commission
under the Investment Company Act of 1940, as amended (the
"1940 Act"), as an
open-end management investment company. The Trust consists
of the following four
funds: Smith Barney Limited Maturity Treasury Fund, Smith
Barney Limited
Maturity Municipals Fund, Smith Barney Intermediate Maturity
California
Municipals Fund and Smith Barney Intermediate Maturity New
York Municipals Fund
(the "Fund"). Effective November 7, 1994, the Fund began
offering Class C and
Class Y shares and all existing shares were designated Class
A shares. As of May
31, 1995, no Class Y shares have been sold. Class A shares
are sold with a
front-end sales charge. Class C shares may be subject to a
contingent deferred
sales charge ("CDSC") upon redemption. Class Y shares are
available to investors
making an initial investment of at least $5 million and are
not subject to any
sales charges, distribution or service fees. All classes of
shares have
identical rights and privileges except with respect to the
effect of the
respective sales charges, the distribution and/or service
fees borne by each
class, expenses allocable exclusively to each class, voting
rights on matters
affecting a single class and the exchange privilege of each
class. The following
is a summary of significant accounting policies consistently
followed by the
Fund in the preparation of its financial statements.
PORTFOLIO VALUATION: Securities are valued at the close of
trading on the New
York Stock Exchange, Inc. by The Boston Company Advisors,
Inc. ("Boston
Advisors"), an indirect wholly owned subsidiary of Mellon
Bank Corporation
("Mellon"), after consultation with an independent pricing
service (the
"Service") approved by the Board of Trustees. When, in the
judgment of the
Service, quoted bid prices for securities are readily
available and are
representative of the bid side of the market, these
investments are valued at
the mean between the quoted bid prices and asked prices.
Securities for which,
in the judgment of the Service, there are no readily
obtainable market
quotations (which may constitute a majority of the portfolio
securities) are
carried at fair value as determined by the Service, based on
methods which
17
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
include consideration of: yields or prices of municipal
securities of comparable
quality, coupon, maturity and type; indications as to values
from dealers; and
general market conditions. Securities, not valued by the
Service, for which
market quotations are not readily available are valued at
fair value as
determined in good faith by or under the direction of the
Board of Trustees.
Short-term investments that mature in 60 days or less are
valued at amortized
cost.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are
recorded as of the trade date. Securities purchased or sold
on a when-issued or
delayed delivery basis may be settled a month or more after
the trade date.
Interest income is recorded on the accrual basis. Realized
gains and losses from
securities sold are recorded on the identified cost basis.
Investment income and
realized and unrealized gains and losses are allocated based
upon the relative
net assets of each class.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from
net investment
income are determined on a class level. It is the policy of
the Fund to declare
dividends from net investment income daily and to pay such
dividends on the last
business day of the Smith Barney Inc. ("Smith Barney")
statement month.
Distributions of any net realized capital gains are declared
and paid annually,
after the end of the fiscal year. Additional distributions
of net investment
income and capital gains for the Fund may be made at the
discretion of the Board
of Trustees in order to avoid the application of a 4.00%
nondeductible excise
tax on certain undistributed amounts of net investment
income and capital gains.
To the extent net realized capital gains can be offset by
capital losses and
loss carryforwards, it is the policy of the Fund not to
distribute such gains.
Income distributions and capital gain distributions on a
Fund level are
determined in accordance with income tax regulations which
may differ from
generally accepted accounting principles. These differences
are primarily due to
differing treatments of income and gains on various
investment securities held
by the Fund, timing differences and differing
characterization of distributions
made by the Fund as a whole.
18
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FEDERAL INCOME TAXES: The Trust intends that the Fund
separately qualify as a
regulated investment company, if such qualification is in
the best interest of
its shareholders, by complying with the requirements of the
Internal Revenue
Code of 1986, as amended, applicable to regulated investment
companies and by
distributing substantially all of its earnings to its
shareholders. Therefore,
no Federal income tax provision is required.
2. INVESTMENT ADVISORY AGREEMENT, ADMINISTRATION
AGREEMENT AND OTHER TRANSACTIONS
The Fund has entered into an investment advisory agreement
(the "Advisory
Agreement") with Smith Barney Mutual Funds Management Inc.
("SBMFM"). SBMFM
(formerly known as Smith Barney Advisers, Inc.), is a wholly
owned subsidiary of
Smith Barney Holdings Inc. ("Holdings"), which in turn is a
wholly owned
subsidiary of Travelers Group Inc. Under the Advisory
Agreement, the Fund pays a
monthly fee at the annual rate of 0.35% of the value of its
average daily net
assets.
The Fund has entered into an administration agreement (the
"Administration
Agreement") with SBMFM. Under the Administration Agreement,
the Fund pays a
monthly fee at the annual rate of 0.20% of the value of its
average daily net
assets.
The Fund and SBMFM have also entered into a sub-
administration agreement ( the
"Sub-Administration Agreement") with Boston Advisors. Under
the
Sub-Administration Agreement, SBMFM pays Boston Advisors a
portion of its
administration fee at a rate agreed upon from time to time
between SBMFM and
Boston Advisors.
From time to time, SBMFM may voluntarily waive a portion of
its investment
advisory and/or administration fees otherwise payable to it.
For the six months
ended May 31, 1995, SBMFM voluntarily waived advisory fees
of $57,975 and
administrative fees of $35,808.
19
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
For the six months ended May 31, 1995, Smith Barney Inc.
("Smith Barney")
received $18,553 from investors representing commissions
(sales charges) on
sales of Class A shares.
A CDSC is generally payable by Class C shareholders and may
be payable by
certain Class A shareholders in connection with the
redemption of shares within
one year after the date of purchase. For the six months
ended May 31, 1995,
$8,038, in CDSC were paid to Smith Barney by Class A
shareholders.
No officer, director or employee of Smith Barney or any of
its affiliates
receives any compensation from the Trust for serving as a
Trustee or officer of
the Trust. The Trust pays each Trustee who is not an
officer, director or
employee of Smith Barney or any of its affiliates $4,000 per
annum plus $500 per
meeting attended and each Trustee emeritus who is not an
officer, director or
employee of Smith Barney or any of its affiliates $12,000
per annum plus $250
per meeting attended. The Trust reimburses each Trustee for
travel and
out-of-pocket expenses incurred in attending such meetings.
Boston Safe Deposit and Trust Company, an indirect wholly
owned subsidiary of
Mellon, serves as the Trust's custodian. The Shareholder
Services Group Inc., a
subsidiary of First Data Corporation, serves as the Fund's
transfer agent.
3. DISTRIBUTION PLAN
Smith Barney acts as distributor of the Fund's shares
pursuant to a distribution
agreement with the Trust and sells shares of the Fund
through Smith Barney or
its affiliates.
Pursuant to Rule 12b-1 under the 1940 Act, the Trust has
adopted a service and
distribution plan (the "Plan"). Under this Plan, the Fund
compensates Smith
Barney for servicing shareholder accounts for Class A and
Class C shareholders,
and covers expenses incurred in distributing Class C shares.
Smith Barney is
paid an annual service fee with respect to Class A and
20
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Class C shares of the Fund at the annual rate of 0.15% of
the value of the
average daily net assets of each respective class of shares.
Smith Barney is
also paid an annual distribution fee with respect to Class C
shares at the
annual rate of 0.20% of the value of the average daily net
assets of that class.
For the period ended May 31, 1995, the Fund incurred a
service fee of $44,078
and $25 for Class A and Class C shares, respectively. For
the period ended May
31, 1995, the Fund incurred $33 in distribution fees for
Class C shares.
Under its terms, the Plan shall remain in effect from year
to year, provided
that such continuance is approved annually by vote of the
Trust's Trustees,
including a majority of those Trustees who are not
"interested persons" of the
Trust and who have no direct or indirect financial interest
in the operation of
the Plan.
4. EXPENSE ALLOCATION
Expenses of the Fund not directly attributable to the
operations of any class of
shares are prorated among the classes based upon the
relative net assets of each
class. Operating expenses directly attributable to a class
of shares are charged
to that class' operations. In addition to the above
servicing and distribution
fees, class specific operating expenses for the six months
ended May 31, 1995
included transfer agent fees of $12,292 and $31 for Class A
and Class C shares,
respectively.
5. SECURITIES TRANSACTIONS
Proceeds from sales of securities, excluding short-term
investments, for the six
months ended May 31, 1995, were $7,236,536. There were no
purchases of long term
securities, excluding short-term investments, for the six
months ended May 31,
1995.
At May 31, 1995, aggregate gross unrealized appreciation for
all securities in
which there was an excess of value over tax cost was
$1,314,078, and aggregate
gross unrealized depreciation for all securities in which
there was an excess of
tax cost over value was $201,600.
21
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
6. SHARES OF BENEFICIAL INTEREST
The Trust may issue an unlimited number of shares of
beneficial interest which
are divided into three classes (Class A, Class C and Class
Y) with a $.001 par
value. Changes in shares of beneficial interest in the Fund
were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
5/31/95
11/30/94
CLASS A SHARES: Shares
Amount Shares Amount
<S> <C> <C>
<C> <C>
- ------------------------------------------------------------
- -------------------------
Sold 344,382 $
2,758,749 2,019,093 $ 16,902,649
Issued as reinvestment of dividends 124,640
1,005,504 289,917 2,400,444
Redeemed (1,527,542)
(12,263,976) (2,224,208) (18,224,100)
- ------------------------------------------------------------
- -------------------------
Net increase/(decrease) (1,058,520)
$(8,499,723) 84,802 $ 1,078,993
- ------------------------------------------------------------
- -------------------------
<CAPTION>
PERIOD
ENDED
5/31/95*
CLASS C SHARES: Shares
Amount
<S> <C> <C>
<C> <C>
- ------------------------------------------------------------
- -------------------------
Sold 22,290 $
183,541
Issued as reinvestment of dividends 58
474
- ------------------------------------------------------------
- -------------------------
Net increase 22,348 $
184,015
- ------------------------------------------------------------
- -------------------------
<FN>
* The Fund began selling Class C shares on December 5,
1994.
</TABLE>
As of May 31, 1995, no Class Y shares had been sold.
7. ORGANIZATION COSTS
The Fund bears all costs in connection with its organization
including the fees
and expenses of registering and qualifying its shares for
distribution under
Federal and state securities regulations. All such costs are
being amortized on
the straight-line method over a period of five years from
the commencement of
operations of the Fund. In the event that any of the initial
shares of the Fund
owned by Smith Barney are redeemed during such amortization
period, the Fund
will be reimbursed for any unamortized organization costs in
the same proportion
as the number of shares redeemed bears to the number of
initial shares held at
the time of redemption.
22
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- -
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
8. CONCENTRATION OF CREDIT
The Fund primarily invests in debt obligations issued by the
State of New York,
its political subdivisions, agencies and public authorities
to obtain funds for
various public purposes. The Fund is more susceptible to
factors adversely
affecting issuers of New York municipal securities than is a
municipal bond fund
that is not concentrated in these issuers to the same
extent.
9. CAPITAL LOSS CARRYFORWARD
As of November 30, 1994, the Fund had available for Federal
tax purposes an
unused capital loss carryforward of $1,450,416 expiring in
the year 2002.
- ------------------------------------------------------------
- --------
ADDITIONAL INFORMATION
On March 20, 1995, a special meeting of shareholders of the
Trust was held for
the following purposes:
1. To elect the following ten (10) trustees to the Trust's
Board of Trustees:
<TABLE>
<CAPTION>
% OF
OUTSTANDING
SHARES
NOMINEE VOTES RECEIVED
VOTED
<S> <C>
<C>
- ------------------------------------------------------------
- ---------
Herbert Barg 15,237,202.665
96.182%
Alfred J. Bianchetti* 15,239,787.601
96.198
Martin Brody 15,239,506.357
96.196
Dwight B. Crane 15,262,039.293
96.338
Burt N. Dorsett 15,249,442.272
96.259
Elliot S. Jaffe 15,253,001.145
96.281
Stephen E. Kaufman 15,256,593.968
96.304
Joseph J. McCann 15,258,212.162
96.314
Heath B. McLendon* 15,246,700.983
96.241
Cornelius C. Rose, Jr. 15,249,666.535
96.260
- ------------------------------------------------------------
- ---------
<FN>
* Each Trustee who is an "interested person" of the
Trust, as defined by the
Investment Company Act of 1940, as amended, is
indicated by an asterisk.
</TABLE>
23
<PAGE>
Smith Barney
Intermediate Maturity
New York Municipals Fund
- ------------------------------------------------------------
- ---------------
PARTICIPANTS
DISTRIBUTOR
Smith Barney Inc.
388 Greenwich Street
New York, New York 10013
INVESTMENT ADVISER AND
ADMINISTRATOR
Smith Barney Mutual Funds
Management Inc.
388 Greenwich Street
New York, New York 10013
SUB-INVESTMENT ADVISOR
The Boston Company Advisors, Inc.
One Boston Place
Boston, Massachusetts 02108
COUNSEL
Willkie Farr & Gallagher
153 East 53rd Street
New York, New York 10022
TRANSFER AGENT
The Shareholder Services Group Inc.
Exchange Place
Boston, Massachusetts 02109
CUSTODIAN
Boston Safe Deposit and
Trust Company
One Boston Place
Boston, Massachusetts 02108
24
<PAGE>
INTERMEDIATE
MATURITY
NEW YORK
MUNICIPALS
FUND
TRUSTEES
Herbert Barg
Alfred J. Bianchetti
Martin Brody
Dwight B. Crane
Burt N. Dorsett
Elliot S. Jaffe
Stephen E. Kaufman
Joseph J. McCann
Heath B. McLendon
Cornelius C. Rose, Jr.
OFFICERS
Heath B. McLendon
CHAIRMAN OF THE BOARD
AND INVESTMENT OFFICER
Jessica M. Bibliowicz
PRESIDENT
Lewis E. Daidone
SENIOR VICE PRESIDENT
AND TREASURER
Lawrence T. McDermott
VICE PRESIDENT AND
INVESTMENT OFFICER
Christina T. Sydor
SECRETARY
[LOGO]
THIS REPORT IS SUBMITTED FOR THE GENERAL INFORMATION OF THE
SHAREHOLDERS OF
SMITH BARNEY INTERMEDIATE MATURITY NEW YORK MUNICIPALS FUND.
IT IS NOT
AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS
ACCOMPANIED OR
PRECEDED BY AN EFFECTIVE PROSPECTUS FOR THE FUND, WHICH
CONTAINS INFORMATION
CONCERNING THE FUND'S INVESTMENT POLICIES AND EXPENSES AS
WELL AS OTHER
PERTINENT INFORMATION.
SMITH BARNEY
MUTUAL FUNDS
388 Greenwich Street
New York, New York 10013
Fund 164, 481, 497
[LOGO]
FD2231 7/95
