<PAGE>
Smith Barney Shearson
NEW YORK MUNICIPAL MONEY MARKET FUND
SEMI-ANNUAL REPORT
April 30, 1994
EDGAR DESCRIPTIONS
Description of Art Work on Report Cover
Small box above fund name showing a shaded, picture of the New York state
centered in a circular sun-like design. Pictured on bottom right-hand side
of
the box are an artist's brushstrokes curled at their ends.
<PAGE>
NEW YORK MUNICIPAL MONEY MARKET FUND
DEAR SHAREHOLDER:
We are pleased to provide you with the Semi-Annual Report, which
includes the portfolio of investments for Smith Barney Shearson New York
Municipal Money Market Fund. During the six months ended April 30, 1994,
the
Fund's monthly tax-exempt dividend distribution resulted in a tax-exempt
annualized yield of 1.84%.
On February 4, 1994, the Federal Reserve signaled an important shift in
direction by tightening monetary policy for the first time since 1989. To
date,
the Federal Open Market Committee has lifted the Federal funds rate four
times,
after having left it unchanged at 3% for almost 18 months. Monetary
officials
do not want to take the risk of waiting for the inflation momentum to
build;
rather they have chosen to "stay ahead of the inflation curve" by acting
early
and gradually. At the core of current predictions about the path of
interest
rates is inflation. After the double-digit inflation in the late 1970s and
early 1980s, inflation has been in the 3-4% range for over a decade, and
during
the last 18 months it has been even lower. With a return to faster economic
growth, it is not a surprise that Federal Reserve Chairman Greenspan has
put
the focus on inflation and so have the financial markets.
As has been the case for most of the year, short-term tax-exempt rates
have been attractive in comparison to short-term taxable rates. This is
because
trends in short-term municipal rates have always depended more on purely
technical considerations than on the more fundamental elements such as
trends
in interest rates, Federal policy, and the inflation outlook. Looking
forward,
we expect demand for tax-exempt money market funds to continue to increase.
Asset flows will depend upon a variety of influences, including marginal
tax
rates, the risk/reward perception of other investment opportunities (such
as
equity or other fixed income markets) and the nature of Federal Reserve
policy.
With higher Federal individual income tax rates and rising interest rates
from
the Federal Reserve's tightening, assets invested in tax-exempt money
market
funds should continue to increase.
Recent independent forecasts indicate that New York State has begun its
economic recovery. Its financial performance also has shown signs of
improvement; for the second consecutive year, the state passed its 1994
budget
essentially on time. In fiscal year 1993, the state began the process of
financial reform by closing the year with a surplus of $671 million. This
was
the result of an economy that outperformed expectations and accelerated tax
collections due to changes in the behavior of taxpayers. The state
estimates
that another surplus, projected to be $339 million, will be achieved in the
current 1994 fiscal year.
1
<PAGE>
Despite these improvements, a reduction in personal income taxes is
unlikely in
New York State. In Governor Cuomo's State of the State message, he implied
that
the never-implemented reductions in personal income taxes would not take
place.
However, he advocated letting the scheduled business tax reductions occur
as a
major way to improve the state's business climate.
We are employing a defensive investment strategy, with the majority of our
purchases three-to-six months in maturity. The Fund's average maturity is
currently 43 days. We anticipate extending it during the summer months when
short-term municipal issuance increases after July 1, which is the
beginning of
the fiscal year for many states and municipalities, and rates generally
become
more attractive.
The Securities and Exchange Commission has proposed amendments to Rule 2a-7
of
the Investment Company Act of 1940, as amended, the rule that governs money
market funds. The proposed amendments to Rule 2a-7 are designed to address
risks
in tax-exempt money market funds. Last amended in 1991, changes were made
regarding asset quality, portfolio maturity and asset diversification.
Specific
issues relating to tax-exempt funds were not addressed in the 1991
amendments
with the understanding that these funds would be addressed at a future
date.
Based on the proposed amendments that were released in December 1993, we do
not
believe that the actual amendments will have much impact on how we manage
our
tax-free money market funds.
Going forward, we will continue to maintain our high investment standards
while
providing competitive investment yields. We appreciate your continued
confidence
and support, and look forward to reporting to you in the Fund's annual
report.
Sincerely,
Heath B. McLendon Lawrence T. McDermott
Chairman of the Board Vice President
and Investment Officer and Investment
Officer
Karen L. Mahoney-Malcomson
Investment Officer
June 15, 1994
2
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
<CAPTION>
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PORTFOLIO OF INVESTMENTS (UNAUDITED)
APRIL 30, 1994
MARKET VALUE
FACE VALUE
(NOTE 1)
<C> <S>
<C>
- ---------------------------------------------------------------------------
- ------------
MUNICIPAL BONDS AND NOTES - 99.2%
NEW YORK - 96.7%
$ 290,000 Addison, New York, Central School District, Bond
Anticipation Notes,
4.900% due 6/15/94
$ 290,832
1,169,000 Albany, New York, Housing Authority, Private Act Revenue,
(Historic Bleeker Terrace Project),
2.800% due 3/1/15+
1,169,000
Albany, New York, Industrial Development Agency, Industrial
Development Revenue:
1,435,000 (PBS Development Project),
3.250% due 12/1/06+++
1,435,000
1,490,000 Series B-2,
3.250% due 12/1/01+++
1,490,000
1,480,000 Series B-3,
3.250% due 12/1/01+++
1,480,000
3,800,000 Babylon, New York, Industrial Development Agency:
3.050% due 12/1/24++
3,800,000
600,000 (NAPCD Security Systems, Inc.),
3.000% due 4/1/00++
600,000
2,650,000 Battery Park, New York, City Authority Revenue, Series B,
2.750% due 11/1/94+++
2,650,000
170,000 Colonie Terrace, New York, Housing Development Corporation,
Housing Development Revenue,
(Colonie Terrace Apartments Project),
2.800% due 5/1/14+
170,000
2,975,000 Corinth, New York, Industrial Development Agency,
Solid Waste Disposal, (International Paper Co. Project),
Series A,
3.300% due 9/1/12+++
2,973,778
1,890,000 East Islip, New York, Unified Free School District,
Tax Anticipation Notes,
2.750% due 6/29/94
1,889,354
2,500,000 Erie County, New York, Industrial Development Agency,
3.100% due 4/1/09+
2,500,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
<CAPTION>
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PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued)
APRIL 30, 1994
MARKET VALUE
FACE VALUE
(NOTE 1)
<C> <S>
<C>
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MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
$10,800,000 Great Neck North, New York, Water Authority Revenue,
2.950% due 1/1/20+
$ 10,800,000
3,500,000 Levittown, New York, Unified Free School District,
Tax Anticipation Notes,
3.250% due 6/29/94
3,500,508
9,800,000 Lindenhurst, New York, Unified Free School District,
Tax Anticipation Notes,
3.250% due 6/29/94
9,804,822
Long Beach, New York, City School District, Tax
Anticipation Notes:
315,000 4.450% due 6/15/94
315,659
2,500,000 2.920% due 6/29/94
2,500,077
2,000,000 3.250% due 6/29/94
2,001,127
Metropolitan Transportation Authority, Commuter Facilities
Revenue:
1,085,000 10.750% due 7/01/04 prerefunded 7/1/94
1,121,271
1,515,000 10.250% due 7/01/14 prerefunded 7/1/94
1,571,640
1,635,000 10.875% due 7/01/14 prerefunded 7/1/94
1,689,997
40,400,000 3.050% due 7/01/21+
40,400,000
Nassau County, New York, Refunding Revenue:
14,335,000 Series A,
2.200% due 5/1/94+++
14,333,888
1,310,000 Series B,
2.200% due 5/1/94+++
1,309,989
New York City, City Culture Revenue Bonds, (Carnegie Hall):
1,300,000 2.850% due 12/1/10+
1,300,000
2,900,000 2.850% due 12/1/15+
2,900,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
- -------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued)
APRIL 30, 1994
MARKET VALUE
FACE VALUE
(NOTE 1)
<C> <S>
<C>
- ---------------------------------------------------------------------------
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MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York City, General Obligation Bonds:
$ 265,000 10.875% due 2/1/14 prerefunded 8/1/94
$ 278,402
6,900,000 2.950% due 8/15/22++
6,900,000
3,500,000 Series A, Adjustable,
2.900% due 8/1/23++
3,500,000
11,400,000 Series A-4, Adjustable,
2.900% due 8/1/22++
11,400,000
24,600,000 Series A-6,
2.850% due 8/1/19++
24,600,000
3,800,000 Series B,
3.000% due 10/1/21++
3,800,000
Series D, Adjustable:
200,000 3.000% due 8/1/94++
200,000
200,000 3.000% due 8/1/95++
200,000
Series E-2, Adjustable:
4,100,000 3.000% due 8/1/20++
4,100,000
4,000,000 3.000% due 8/1/21++
4,000,000
Series E-5, Adjustable:
3,300,000 3.000% due 8/1/09++
3,300,000
10,100,000 3.100% due 8/1/15++
10,100,000
2,400,000 3.000% due 8/1/21++
2,400,000
Series E-6, Adjustable:
4,300,000 3.000% due 8/1/10++
4,300,000
5,200,000 3.000% due 8/1/17++
5,200,000
1,700,000 3.000% due 8/1/18++
1,700,000
3,550,000 3.000% due 8/1/19++
3,550,000
8,700,000 Series 16I,
2.850% due 8/15/20+++
8,700,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
<CAPTION>
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PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued)
APRIL 30, 1994
MARKET VALUE
FACE VALUE
(NOTE 1)
<C> <S>
<C>
- ---------------------------------------------------------------------------
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MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York City, Housing Development Corporation,
Mortgage Corporation:
$ 8,360,000 (Parkgate Towers Project),
2.850% due 12/1/07+
$ 8,360,000
18,200,000 Special Obligation Revenue, Series A,
(East 96th Street Project),
3.000% due 8/1/15+
18,200,000
New York City, Industrial Development Agency, Industrial
Development Revenue:
13,400,000 3.150% due 11/1/15++
13,400,000
3,750,000 Series A 87,
3.100% due 11/1/17+
3,750,000
900,000 Series D,
3.100% due 11/1/08+
900,000
785,000 Series E,
3.100% due 11/1/08+
785,000
1,870,000 Series G,
3.100% due 11/1/09+
1,870,000
1,300,000 Series O,
3.100% due 11/1/08+
1,300,000
1,325,000 (William E. Martin & Sons Project),
3.400% due 6/6/04+
1,325,000
New York City, Industrial Development Agency:
1,850,000 Series I,
3.100% due 11/1/10+
1,850,000
2,000,000 Series J,
3.100% due 11/1/10+
2,000,000
New York City, Long Option:
1,000,000 2.800% due 8/15/14+++
1,000,000
1,000,000 2.800% due 8/15/15+++
1,000,000
1,480,000 2.800% due 8/15/19+++
1,480,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
- -------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued)
APRIL 30, 1994
MARKET VALUE
FACE VALUE
(NOTE 1)
<C> <S>
<C>
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MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State, Board of Cooperative Educational Services,
Revenue Anticipation Notes:
$ 6,290,000 Alleghany, Cattaragus, Erie and Wyoming Counties,
2.620% due 6/30/94
$ 6,289,664
6,000,000 Monroe County,
2.780% due 6/24/94
6,000,264
15,000,000 Nassau County,
3.250% due 6/29/94
15,006,126
3,000,000 Westchester County,
2.750% due 6/24/94
3,001,788
New York State, Dormitory Authority Revenue:
300,000 2.700% due 7/1/94+++
300,000
6,700,000 2.900% due 7/1/15+
6,700,000
New York State, Energy Research and Development Authority:
4,000,000 2.850% due 11/1/23+++
4,000,000
10,000,000 Series 1984 A, (New York Gas & Electric Corporation),
3.000% due 12/1/14+++
10,000,000
Electric Facilities Revenue, Pollution Control Revenue:
(Central Hudson Gas and Electric Company):
5,650,000 Series A,
3.000% due 11/1/20+
5,650,000
7,900,000 Series B,
3.150% due 6/1/27+
7,900,000
6,000,000 Series B, (Hudson Gas and Electric),
3.150% due 11/1/20+
6,000,000
New York State, Housing Finance Agency, Multifamily
Housing:
1,900,000 Series A,
3.050% due 11/1/28+
1,900,000
15,550,000 (Normandie Court Project II),
3.200% due 11/1/02+
15,550,000
51,300,000 New York State, Local Assistance, Series A,
3.000% due 4/1/22+
51,300,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
- -------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued)
APRIL 30, 1994
MARKET VALUE
FACE VALUE
(NOTE 1)
<C> <S>
<C>
- ---------------------------------------------------------------------------
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MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
$20,400,000 New York State, Local Assistance, Floating Rate Trust,
Series 94-1,
3.000% due 4/2/01+++
$ 20,400,000
23,700,000 New York State, Medical Care Facilities Financing Agency,
2.900% due 11/1/15+
23,700,000
10,000,000 New York State, Mortgage Agency,
3.200% due 4/1/25+++
10,000,000
22,200,000 New York State, Municipal Water, Series 1988B,
(Eagle Tax Exempt Trust),
2.74% due 6/15/18+
22,200,000
8,000,000 New York State, Power Authority, Series 93H, Tax
Anticipation Notes,
2.250% due 6/1/07+
8,000,000
3,500,000 Niagara County, New York, Industrial Development Authority,
Industrial Development Revenue, (General Abrasive
Treibacher, Inc.),
3.350% due 11/1/05+
3,500,000
850,000 North Hempstead, New York, Bond Anticipation Notes,
5.125% due 5/15/94
850,360
11,000,000 Oneida County, New York, Revenue Anticipation Notes,
3.000% due 7/1/94
11,003,626
3,600,000 Otesgo County, New York, (Regal Textile Project),
3.710% due 12/1/02+
3,600,000
15,000,000 Port Authority of New York & New Jersey,
Special Obligation Notes,
3.050% due 10/1/14+
15,000,000
2,600,000 Schenectady County, New York, Industrial Development
Agency, (Scotia Industrial Park), Series A,
3.100% due 6/1/09+
2,600,000
11,700,000 Steuben County, New York, Bond Anticipation Notes,
2.460% due 5/20/94
11,697,473
31,000,000 Suffolk County, New York, Tax Anticipation Notes, Series I,
2.700% due 8/16/94++
31,059,039
685,000 Sullivan County, New York, Refunding &
Public Utilities Revenue,
3.200% due 3/15/95+++
685,075
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
- -------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (continued)
APRIL 30, 1994
MARKET VALUE
FACE VALUE
(NOTE 1)
<C> <S>
<C>
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MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
$ 7,535,000 Sullivan County, New York, Tax Anticipation Notes,
4.200% due 3/22/95+++
$ 7,547,922
6,500,000 Uniondale, New York, Unified Free School District,
Tax Anticipation Notes,
3.250% due 6/29/94
6,502,293
11,000,000 Williamsville, New York, Bond Anticipation Notes,
Central School District,
2.460% due 5/5/94
11,010,515
Yonkers, New York, Industrial Development Agency, Consumers
Union Facility:
5,300,000 Civic Facilities Revenue,
3.050% due 7/1/19+
5,300,000
5,100,000 Unified Facilities Revenue,
3.050% due 7/1/21+
5,100,000
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608,799,489
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PUERTO RICO -- 2.5%
800,000 Commonwealth of Puerto Rico, Government Developmental Bank,
3.000% due 12/1/15+
800,000
Puerto Rico, Industrial Medical & Environmental, Pollution
Control Facilities Financing Authority:
6,000,000 2.600% due 3/1/23+++
5,958,422
8,800,000 (Key Pharmaceutical Project),
3.000% due 12/1/13+++
8,800,000
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15,558,422
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TOTAL INVESTMENTS (Cost $624,357,911*) 99.2% 624,357,911
OTHER ASSETS AND LIABILITIES (NET) 0.8 5,127,809
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NET ASSETS 100.0%
$629,485,720
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</TABLE>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand notes are payable upon not more than seven
calendar
days' notice.
++ Variable rate daily demand notes are payable upon not more than one
business day's notice.
+++ "Put" bonds and notes have demand features which mature within one
year.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
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STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1994
<S> <C>
<C>
ASSETS:
Investments, at value (Cost $624,357,911) (Note 1)
See accompanying schedule
$624,357,911
Cash
61,453
Receivable for Fund shares sold
10,890,227
Interest receivable
4,078,214
Receivable for investment securities sold
2,014,769
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TOTAL ASSETS
641,402,574
- ---------------------------------------------------------------------------
- --------------
LIABILITIES:
Payable for Fund shares redeemed $10,861,309
Dividends payable 676,530
Investment advisory fee payable (Note 2) 160,074
Administration fee payable (Note 2) 106,716
Transfer agent fees payable (Note 2) 34,000
Custodian fees payable (Note 2) 15,000
Accrued expenses and other payables 63,225
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- --------------
TOTAL LIABILITIES
11,916,854
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NET ASSETS
$629,485,720
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- --------------
NET ASSETS CONSIST OF:
Undistributed net investment income
$ 216,591
Accumulated net realized loss on investments sold
(333,682)
Par value
629,603
Paid-in capital in excess of par value
628,973,208
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- --------------
TOTAL NET ASSETS
$629,485,720
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- --------------
NET ASSET VALUE, offering price and redemption price per share
($629,485,720 / 629,602,811 shares of beneficial interest
outstanding)
$1.00
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- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
- ---------------------------------------------------------------------------
- --------------
STATEMENT OF OPERATIONS (UNAUDITED) FOR THE SIX MONTHS ENDED APRIL 30,
1994
<S> <C>
<C>
INVESTMENT INCOME:
Interest
$7,760,872
EXPENSES:
Investment advisory fee (Note 2)
$946,661
Administration fee (Note 2)
627,766
Transfer agent fees (Note 2)
204,115
Custodian fees (Note 2)
43,497
Legal and audit fees
32,013
Trustees' fees and expenses (Note 2)
10,078
Other
109,676
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- --------------
TOTAL EXPENSES
1,973,806
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- --------------
NET INVESTMENT INCOME
5,787,066
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- --------------
NET REALIZED GAIN ON INVESTMENTS SOLD (NOTE 1)
11,576
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$5,798,642
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- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
- --------------
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED
YEAR
4/30/94
ENDED
(UNAUDITED)
10/31/93
<S> <C>
<C>
Net investment income $ 5,787,066
$ 12,072,266
Net realized gain/(loss) on investments sold during
the period 11,576
(345,258)
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- -------------
Net increase in net assets resulting from operations 5,798,642
11,727,008
Distributions to shareholders from:
Net investment income (5,787,066)
(11,855,675)
Net realized loss on investments --
(216,591)
Net increase in net assets from Fund share
transactions (Note 3) 34,382,055
25,694,846
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- -------------
Net increase in net assets 34,393,631
25,349,588
NET ASSETS:
Beginning of period 595,092,089
569,742,501
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- -------------
End of period (including accumulated undistributed net
investment income of $216,591 at April 30, 1994 and
October 31, 1993, respectively) $629,485,720
$595,092,089
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- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
<CAPTION>
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- ---------------
FINANCIAL HIGHLIGHTS
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
SIX MONTHS
ENDED YEAR YEAR
YEAR YEAR
4/30/94 ENDED ENDED
ENDED ENDED
(UNAUDITED) 10/31/93 10/31/92
10/31/91 10/31/90
<S> <C> <C> <C> <C>
<C>
Net asset value, beginning of
period $1.00 $1.00 $1.00
$1.00 $1.00
- ---------------------------------------------------------------------------
- ---------------
Income from investment operations:
Net investment income 0.0091 0.0194 0.0274
0.0407 0.0520
- ---------------------------------------------------------------------------
- ---------------
Less distributions:
Distributions from net investment
income (0.0091) (0.0191) (0.0274)
(0.0407) (0.0520)
Distributions from net realized
capital gains 0.0000 (0.0003) (0.0002)
(0.0004) 0.0000
- ---------------------------------------------------------------------------
- ---------------
Total distributions (0.0091) (0.0194) (0.0276)
(0.0411) (0.0520)
- ---------------------------------------------------------------------------
- ---------------
Net realized gain/(loss) on
investments 0.0000 (0.0006) 0.0004
0.0002 0.0006
- ---------------------------------------------------------------------------
- ---------------
Net Asset Value, end of period $1.00 $1.00 $1.00
$1.00 $1.00
- ---------------------------------------------------------------------------
- ---------------
Total return++ 0.91% 1.96% 2.80%
4.19% 5.33%
- ---------------------------------------------------------------------------
- ---------------
Ratios to average net
assets/supplemental data:
Net assets, end of period
(in 000's) $629,486 $595,092 $569,743
$503,394 $513,014
Ratio of net investment income
to average net assets 1.83%+ 1.94% 2.73%
4.06% 5.20%
Ratio of operating expenses to
average net assets 0.63%+ 0.61% 0.61%
0.61% 0.58%
- ---------------------------------------------------------------------------
- ---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------
- -------------
FINANCIAL HIGHLIGHTS (continued)
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
YEAR YEAR YEAR
PERIOD
ENDED ENDED ENDED
ENDED
10/31/89 10/31/88
10/31/87 10/31/86*
<S> <C> <C> <C>
<C>
Net asset value, beginning of period $1.00 $1.00
$1.00 $1.00
- ---------------------------------------------------------------------------
- ------------
Income from investment operations:
Net investment income 0.0548 0.0433
0.0378 0.0385
- ---------------------------------------------------------------------------
- ------------
Less distributions:
Distributions from net investment income (0.0548) (0.0433)
(0.0378) (0.0385)
Distributions from net realized
capital gains 0.0000 0.0000
0.0000 0.0000
- ---------------------------------------------------------------------------
- ------------
Total distributions (0.0548) (0.0433)
(0.0378) (0.0385)
- ---------------------------------------------------------------------------
- ------------
Net realized gain/(loss) on investments 0.0000 0.0000
(0.0005) (0.0002)
- ---------------------------------------------------------------------------
- ------------
Net Asset Value, end of period $1.00 $1.00
$1.00 $1.00
- ---------------------------------------------------------------------------
- -------------
Total return++ 5.62% 4.42%
3.85% 3.92%
- ---------------------------------------------------------------------------
- ------------
Ratios to average net
assets/supplemental data:
Net assets, end of period
(in 000's) $417,768 $231,270
$164,559 $114,705
Ratio of net investment income
to average net assets 5.52% 4.34%
3.78% 3.89%+
Ratio of net operating expenses to
average net assets 0.61% 0.62%
0.70% 0.75%+
- ---------------------------------------------------------------------------
- ------------
</TABLE>
* The Fund commenced operations on November 25, 1985.
+ Annualized.
++Total return represents aggregate return for period indicated.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
- ---------------------------------------------------------------------------
- -----
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Smith Barney Shearson New York Municipal Money Market Fund (the "Fund") was
organized under the laws of the Commonwealth of Massachusetts as a
"Massachusetts business trust" on August 30, 1985. The Fund is registered
with
the Securities and Exchange Commission under the Investment Company Act of
1940,
as amended, as a no-load, non-diversified, open-end management investment
company. 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 amortized cost which
approximates
market value. Amortized cost valuation involves valuing an instrument at
its
cost initially and, thereafter, assuming a constant amortization/accretion
to
maturity of any premium or discount, regardless of the effect of
fluctuating
interest rates on the market value of the instrument.
Securities transactions and investment income: Securities transactions are
recorded as of the trade date. Realized gains and losses on investments
sold are
recorded on the identified cost basis. Interest income is recorded on the
accrual basis.
Dividends and distributions to shareholders: It is the policy of the Fund
to
declare dividends from its net investment income on each day that the Fund
is
open for business and to pay such dividends on the second Friday of each
calendar month. The Fund will distribute net realized capital gains, if
any,
annually or more frequently to maintain its net asset value of $1.00 per
share.
Additional distributions of net investment income and capital gains may be
made
at the discretion of the Board of Trustees in order to avoid application of
the
4% nondeductible excise tax. Income distributions and capital gain
distributions
are determined in accordance with income tax regulations which may differ
from
generally accepted accounting principles. These differences are primarily
due to
timing differences and differing characterization of distributions made by
the
Fund as a whole.
Federal income taxes: It is the policy of the Fund to 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.
15
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
- ---------------------------------------------------------------------------
- -----
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE
AND OTHER TRANSACTIONS
The Fund has entered into an investment advisory agreement (the "Advisory
Agreement") with Greenwich Street Advisors, a division of Mutual Management
Corp., which is controlled by Smith Barney Holdings Inc. ("Holdings").
Holdings
is a wholly owned subsidiary of The Travelers Inc. Under the Advisory
Agreement,
the Fund pays a monthly fee at the annual rate of 0.30% of the value of its
average daily net assets.
Smith Barney Inc. ("Smith Barney") acts as exclusive distributor of the
Fund's
shares.
Prior to April 20, 1994, the Fund was a party to an administration
agreement
with The Boston Company Advisors, Inc. ("Boston Advisors") an indirect
wholly
owned subsidiary of Mellon Bank Corporation ("Mellon"). Under this
agreement,
the Fund paid a monthly fee at the annual rate of 0.20% of the value of its
average daily net assets.
As of the close of business on April 20, 1994, Smith, Barney Advisers, Inc.
("Smith Barney Advisers"), which is controlled by Holdings, succeeded
Boston
Advisors as the Fund's administrator. The new administration agreement
contains
substantially the same terms and conditions, including the level of fees as
the
predecessor agreement.
As of the close of business on April 20, 1994, the Fund also entered into a
sub-
administration agreement ("Sub-Administration Agreement") with Boston
Advisors.
Under the Sub-Administration Agreement, Boston Advisors is paid a portion
of the
fee paid by the Fund to Smith Barney Advisers at a rate agreed upon from
time to
time between Smith Barney Advisers and Boston Advisors.
No officer, director or employee of Smith Barney or of any parent or
subsidiary
of Smith Barney receives any compensation from the Fund for serving as a
Trustee
or officer of the Fund. The Fund pays each Trustee who is not an officer,
director, or employee of Smith Barney or any of its affiliates $1,000 per
annum
plus $250 per meeting attended and reimburses each such Trustee for travel
and
out-of-pocket expenses.
Boston Safe Deposit and Trust Company, an indirect wholly owned subsidiary
of
Mellon, serves as the Fund's custodian. The Shareholder Services Group,
Inc., a
subsidiary of First Data Corporation, serves as the Fund's transfer agent.
16
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
- ---------------------------------------------------------------------------
- -----
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (continued)
3. FUND SHARES
The authorized capital of the Fund consists of an unlimited number of
shares of
beneficial interest with a par value of $.001 per share.
The table below summarizes transactions in Fund shares for the periods
shown in
the accompanying Statement of Changes in Net Assets. Because the Fund has
sold
shares, issued shares as reinvestments of dividends and redeemed shares
only at
a constant net asset value of $1.00 per share, the number of shares
represented
by such sales, reinvestments and redemptions is the same as the amounts
shown
below for such transactions.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED
4/30/94
10/30/93
<S> <C> <C>
- ---------------------------------------------------------------------------
- ----------
Sold $ 1,315,807,167 $
2,375,133,112
Issued as reinvestment of dividends 5,632,300
11,806,885
Redeemed (1,287,057,412)
(2,361,245,151)
- ---------------------------------------------------------------------------
- ----------
Net increase $ 34,382,055 $
25,694,846
- ---------------------------------------------------------------------------
- ----------
</TABLE>
4. CONCENTRATION OF CREDIT
The Fund primarily invests in debt obligations issued by the State of New
York
and 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 fund that is
not
concentrated in these issuers to the same extent.
5. CAPITAL LOSS CARRYFORWARD
At October 31, 1993, the Fund had available for Federal tax purposes an
unused
capital loss carryforward expiring in 2001 of $345,258.
6. SUBSEQUENT EVENT
On May 25, 1994, the Board of Trustees of the Fund approved a proposed
reorganization pursuant to which all or substantially all of the assets of
the
Fund would be acquired by New York Money Market Portfolio, a series of
Smith
Barney Muni Funds. The proposed reorganization is subject to the approval
of
shareholders of the Fund and a meeting of shareholders is expected to be
held in
September, 1994.
17
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
- ---------------------------------------------------------------------------
- -----
PARTICIPANTS
DISTRIBUTOR
Smith Barney Inc.
388 Greenwich Street
New York, New York 10013
INVESTMENT ADVISER
Greenwich Street Advisors
Two World Trade Center
New York, New York 10048
ADMINISTRATOR
Smith, Barney Advisers, Inc.
1345 Avenue of the Americas
New York, New York 10105
SUB-ADMINISTRATOR
The Boston Company Advisors, Inc.
One Boston Place
Boston, Massachusetts 02108
AUDITORS AND COUNSEL
Coopers & Lybrand
One Post Office Square
Boston, Massachusetts 02109
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
18
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
- ---------------------------------------------------------------------------
- -----
OUR APPROACH TO MUTUAL FUND INVESTING
1. PERSONAL SERVICE
The Smith Barney Financial Consultant ("FC") is highly trained and deeply
committed to client service. Your FC works with you to establish a
relationship
based on one-to-one communication and the highest standards of quality.
2. ANALYZING YOUR NEEDS
Defining your needs and establishing specific goals is the first step
toward any
successful investment program. The Smith Barney Strategic Asset Allocator -
- - a
sophisticated financial planning tool -- can help you and your FC evaluate
your
resources and objectives. This groundwork then becomes the basis for a
strategy
designed specifically for you. Your FC can use the Strategic Asset
Allocator on
a periodic basis to ensure that your investment strategy is keeping pace
with
your changing needs and goals.
3. A UNIQUE MUTUAL FUND INVESTMENT PROGRAM
Your Smith Barney FC offers a number of mutual fund assessment tools that
are
unmatched in the financial services industry. Smith Barney FCs have access
to a
proprietary mutual fund research database that provides information at
their
fingertips on more than 2,100 funds. In addition, working with another
proprietary system known as the Mutual Fund Evaluation Service, your FC can
help
guide you through the complex mutual fund maze. Specifically, the
Evaluation
Service can provide a clear picture of the past performance of mutual funds
you
currently own. Presented in both graphic and numerical form, this
illustration
provides a wealth of easily understood data on more than 2,100 funds. This
complimentary service allows you to judge whether your mutual fund has
helped
meet your investment needs.
4. LOOKING AHEAD
Selecting a mutual fund should not be a one-event process that ends with
the
purchase of shares. You can count on the expertise of your FC as he or she
continues to monitor and evaluate your funds, to suggest new strategies and
to
listen. That, in our opinion, is how to use mutual funds to help achieve
your
financial goals.
19
<PAGE>
Smith Barney Shearson
New York Municipal Money Market Fund
- ---------------------------------------------------------------------------
- -----
INVESTOR BENEFITS
MONTHLY DISTRIBUTIONS
It's your fund's policy to distribute dividend income monthly.
AUTOMATIC REINVESTMENT
You may reinvest your dividends and/or capital gains automatically in
additional
shares of your fund at the current net asset value.
UNLIMITED EXCHANGES
If your investment goals change, you may exchange into another Smith Barney
Shearson mutual fund with the same sales charge structure without incurring
a
sales charge.*
MUTUAL FUND
EVALUATION SERVICE
Through your Financial Consultant, you may obtain a free personalized
analysis
of how your fund has performed for you, taking into account the effect of
every
transaction. The analysis is based upon month-end data from CDA Investment
Technologies, Inc., a widely recognized mutual fund information service. An
evaluation also gives you other important facts and figures about your
investment.
For more information about these benefits, or if you have any other
questions,
please call your Financial Consultant or write:
MUTUAL FUND POLICY GROUP
SMITH BARNEY
388 GREENWICH STREET 37TH FLOOR
NEW YORK, NY 10013
* After written notification, exchange privilege may be modified or
terminated
at any time.
20
<PAGE>
NEW YORK MUNICIPAL MONEY MARKET FUND
TRUSTEES
Herbert Barg
Alfred J. Bianchetti
Martin Brody
Dwight B. Crane
James J. Crisona
Robert A. Frankel
Dr. Paul Hardin
Stephen E. Kaufman
Joseph J. McCann
Heath B. McLendon
OFFICERS
Heath B. McLendon
Chairman of the Board and Investment Officer
Stephen J. Treadway
President
Richard P. Roelofs
Executive Vice President
Lawrence T. McDermott
Vice President and Investment Officer
Karen L. Mahoney-Malcomson
Investment Officer
Lewis E. Daidone
Treasurer
Christina T. Sydor
Secretary
This report is submitted for the general information of the shareholders of
Smith Barney Shearson New York Municipal Money Market 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
SMITH BARNEY SHEARSON
MUTUAL FUNDS
Two World Trade Center
New York, New York 10048
Fund 21
FD2215 F4
