UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05987
Morgan Stanley New York Municipal Money Market Trust
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)
Ronald E. Robison
1221 Avenue of the Americas, New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: December 31, 2004
Date of reporting period: June 30, 2004
Item 1 - Report to Shareholders
Welcome, Shareholder:
In this report, you'll learn about how your investment in Morgan Stanley New
York Municipal Money Market Trust performed during the semiannual period. We
will provide an overview of the market conditions, and discuss some of the
factors that affected performance during the reporting period. In addition, this
report includes the Fund's financial statements and a list of Fund investments.
This material must be preceded or accompanied by a prospectus for the fund being
offered. Market forecasts provided in this report may not necessarily come to
pass. There is no assurance that the Fund will achieve its investment objective.
The Fund is subject to market risk, which is the possibility that market values
of securities owned by the Fund will decline and, therefore, the value of the
Fund's shares may be less than what you paid for them. Accordingly, you can lose
money investing in this Fund.
FUND REPORT
For the six-month period ended June 30, 2004
MARKET CONDITIONS
Perhaps the most significant event of the six-month review period happened on
its final day. On June 30, 2004, the Federal Open Market Committee (the "Fed")
raised the federal funds rate target by 25 basis points, to 1.25 percent. Prior
to that, the target rate had been at a multidecade low for a full year. Indeed,
rates across the money market yield curve had steadily trended lower for several
years. The Fed's change had been widely anticipated; at the end of the period
the market reflected investors' general expectation that rates would rise still
further in the coming months as a result of mounting inflationary pressures.
The municipal money markets for the period were largely mixed. At the outset of
the period, the U.S. economy remained weak and state governments were facing
severe budgetary difficulties. Across the board, municipalities sought ways to
reduce expenditures and boost revenue through a variety of tactics, including
new fees and taxes, refinancing of existing debt and, in some instances,
borrowing to fund deficits. The economic and investment environment both showed
marked improvement in the spring of 2004, when continued growth in employment
and corporate profits alike resulted in improving outlooks for municipal tax
revenues. The money market yield curve -- the difference between short- and
longer-term yields -- steepened significantly over the first six months of 2004,
reflecting the market's expectation of further strength in the U.S. economy.
PERFORMANCE ANALYSIS
As of June 30, 2004, Morgan Stanley New York Municipal Money Market Trust had
net assets of more than $62 million and an average portfolio maturity of 37
days. For the six-month period ended June 30, 2004, the Fund provided a total
return of 0.12 percent. For the seven-day period ended June 30, 2004, the Fund
provided an effective annualized yield and a current yield both of 0.53 percent,
while its 30-day moving average yield for June was 0.52 percent. Past
performance is no guarantee of future results.
We were largely cautious in managing the Fund's portfolio during the period,
preferring to avoid the one-year segment of the money market in anticipation of
further yield increases there. As a result, the Fund's portfolio ended the
period with a weighted average maturity somewhat lower than has historically
been the case at this point in the year. We chose to emphasize short-term
variable-rate paper and shorter maturities of tax-exempt commercial paper in
order to minimize the potential adverse effects of rising interest rates. Given
the budgetary challenges facing the state of New York, we remained highly
cautious in our security selection over the course of the review period.
2
<Table>
<Caption>
PORTFOLIO COMPOSITION
Variable Rate Municipal Obligations 83.6%
Municipal Notes 8.4
Tax-Exempt Commercial Paper 8.0
</Table>
<Table>
<Caption>
MATURITY SCHEDULE
1-30 Days 80.8%
31-60 Days -
61-90 Days 6.4
91-120 Days 4.8
121+ Days 8.0
</Table>
Data as of June 30, 2004. Subject to change daily. All percentages for Portfolio
Composition and Maturity Schedule are as a percentage of total investments.
Provided for informational purposes only and should not be deemed a
recommendation to buy or sell the securities mentioned. Morgan Stanley is a
full-service securities firm engaged in securities trading and brokerage
activities, investment banking, research and analysis, financing and financial
advisory services.
INVESTMENT STRATEGY
THE FUND WILL INVEST IN HIGH QUALITY, SHORT-TERM SECURITIES THAT ARE NORMALLY
MUNICIPAL OBLIGATIONS THAT PAY INTEREST EXEMPT FROM FEDERAL AND NEW YORK INCOME
TAXES. THE FUND'S "INVESTMENT MANAGER," MORGAN STANLEY INVESTMENT ADVISORS INC.,
SEEKS TO MAINTAIN THE FUND'S SHARE PRICE AT $1.00. THE SHARE PRICE REMAINING
STABLE AT $1.00 MEANS THAT THE FUND WOULD PRESERVE THE PRINCIPAL VALUE OF YOUR
INVESTMENT.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
3
Morgan Stanley New York Municipal Money Market Trust
PORTFOLIO OF INVESTMENTS - JUNE 30, 2004 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON DEMAND
THOUSANDS RATE+ DATE* VALUE
- ---------------------------------------------------------------------------------------------------------
New York Tax-Exempt Short-Term Variable Rate Municipal Obligations
(83.9%)
Jay Street Development Corporation,
$1,000 Fiscal 2001 Ser A-1...................................... 1.00% 07/08/04 $ 1,000,000
1,600 Fiscal 2001 Ser A-3...................................... 1.07 07/08/04 1,600,000
1,900 Long Island Power Authority, Electric Ser 7 Subser 7B
(MBIA)................................................... 1.00 07/08/04 1,900,000
1,500 Long Island Power Authority, Electric System Subser 1B..... 1.08 07/01/04 1,500,000
1,495 Metropolitan Transportation Authority, ROCs II-R Ser 263
(FSA).................................................... 1.10 07/08/04 1,495,000
2,000 Nassau County Industrial Development Agency, 1999 Cold
Spring Harbor Laboratory................................. 1.08 07/01/04 2,000,000
1,900 Nassau County Interim Finance Authority, Sales Tax Ser 2002
B (FSA).................................................. 1.00 07/08/04 1,900,000
1,600 New York City, Fiscal 1994 Ser H Subser H-3 (FSA).......... 1.03 07/01/04 1,600,000
2,000 New York City Housing Development Corporation, James Tower
Development 2002 Ser A................................... 1.00 07/08/04 2,000,000
New York City Municipal Water Finance Authority,
1,800 1994 Ser C (FGIC)........................................ 1.06 07/01/04 1,800,000
840 PUTTERs Ser 401.......................................... 1.09 07/08/04 840,000
New York City Transitional Finance Authority,
1,300 Recovery Fiscal 2003 Ser 1 Subser 1D..................... 1.08 07/01/04 1,300,000
1,200 Recovery Fiscal 2003 Ser 3 Subser 3E..................... 1.08 07/01/04 1,200,000
1,500 New York State, Ser 2000 A................................. 1.05 10/07/04 1,500,000
New York State Dormitory Authority,
1,000 Cornell University Ser 1990 B............................ 1.08 07/01/04 1,000,000
2,000 Mental Health Services Facilities Ser 2003D-2D (Ambac)... 1.07 07/08/04 2,000,000
750 The Metropolitan Museum of Art Ser A..................... 1.01 07/08/04 750,000
1,500 The New York Public Library Ser 1998 B (MBIA)............ 1.00 07/08/04 1,500,000
3,000 New York State Energy Research & Development Authority,
Long Island Lighting Co Ser 1997 A (AMT)................. 1.06 07/08/04 3,000,000
1,500 New York State Environmental Quality Ser 1998 G............ 1.03 10/01/04 1,500,000
New York State Housing Finance Agency,
3,000 150 East 44th Street 2000 Ser A (AMT).................... 1.08 07/08/04 3,000,000
3,200 750 Sixth Avenue 1998 Ser A (AMT)........................ 1.06 07/08/04 3,200,000
2,500 Historic Front Street 2003 Ser A......................... 1.05 07/08/04 2,500,000
1,500 New York State Local Government Assistance Corporation, Sub
Lien Ser 2003 A-7V (FGIC)................................ 1.00 07/08/04 1,500,000
1,500 New York State Power Authority, Ser 1985................... 0.95 09/01/04 1,500,000
3,000 Oneida Indian Nation of New York, Ser 2002................. 1.03 07/08/04 3,000,000
1,800 Suffolk County Water Authority, Ser 2003 BANs.............. 1.07 07/08/04 1,800,000
2,500 Triborough Bridge & Tunnel Authority, Ser 2002 F........... 1.06 07/08/04 2,500,000
1,000 Yonkers Industrial Development Agency, Consumers Union Ser
1989..................................................... 1.05 07/08/04 1,000,000
</Table>
4
See Notes to Financial Statements
Morgan Stanley New York Municipal Money Market Trust
PORTFOLIO OF INVESTMENTS - JUNE 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON DEMAND
THOUSANDS RATE+ DATE* VALUE
- ---------------------------------------------------------------------------------------------------------
Puerto Rico,
$1,000 Commonwealth of Puerto Rico Public Improvement Bonds, Ser
2001-1 TOCs (FSA)........................................ 1.35% 12/02/04 $ 1,000,000
-----------
Total New York Tax-Exempt Short-Term Variable Rate Municipal Obligations (Cost
$52,385,000).................................................................. 52,385,000
-----------
</Table>
<Table>
<Caption>
YIELD TO
MATURITY
COUPON MATURITY ON DATE OF
RATE DATE PURCHASE
------ -------- ----------
New York Tax-Exempt Commercial Paper (8.0%)
1,000 New York State, Environmental Quality Ser 1997
A........................................... 0.95% 07/20/04 0.95% 1,000,000
1,500 New York State Dormitory Authority, Columbia
University 1997 Issue....................... 1.08 07/28/04 1.08 1,500,000
Puerto Rico
Puerto Rico Government Development Bank,
1,000 Ser 1986.................................... 1.12 09/09/04 1.12 1,000,000
1,500 Ser 1986.................................... 1.15 09/14/04 1.15 1,500,000
-----------
Total New York Tax-Exempt Commercial Paper
(Cost $5,000,000)............................................................. 5,000,000
-----------
New York Tax-Exempt Short-Term Municipal Notes (8.5%)
250 Islip, Public Improvement Ser 1995 (FGIC), dtd
07/15/95.................................... 5.00 07/15/04 1.00 250,381
1,500 Oyster Bay, 2004 Ser A TANs, dtd 01/23/04..... 1.90 01/21/05 1.10 1,506,607
1,000 Spencer-Van Etten Central School District, Ser
2004 BANs, dtd 06/17/04..................... 3.00 06/17/05 1.88 1,010,616
1,500 Steuben-Allegany Board of Cooperative
Services, Sole Supervisory District RANs Ser
2004, dtd 06/29/04.......................... 3.00 06/30/05 1.78 1,517,921
Puerto Rico
1,000 Puerto Rico, Ser 2004 TRANs, dtd 10/15/03..... 2.00 07/30/04 1.00 1,000,788
-----------
Total New York Tax-Exempt Short-Term Municipal Notes
(Cost $5,286,313)............................................................. 5,286,313
-----------
</Table>
5
See Notes to Financial Statements
Morgan Stanley New York Municipal Money Market Trust
PORTFOLIO OF INVESTMENTS - JUNE 30, 2004 (UNAUDITED) continued
<Table>
<Caption>
VALUE
- ---------------------------------------------------------------------------------------------------------
Total Investments
(Cost $62,671,313) (a)............................................ 100.4% $62,671,313
Liabilities in Excess of Other Assets............................. (0.4) (245,669)
----- -----------
Net Assets........................................................ 100.0% $62,425,644
===== ===========
</Table>
- ---------------------
<Table>
AMT Alternative Minimum Tax.
BANs Bond Anticipation Notes.
PUTTERs Puttable Tax-Exempt Receipts.
RANs Revenue Anticipation Notes.
ROCs Reset Option Certificates.
TANs Tax Anticipation Notes.
TOCs Tender Option Certificates.
TRANs Tax and Revenue Anticipation Notes.
+ Rate shown is the rate in effect at June 30, 2004.
* Date on which the principal amount can be recovered through
demand.
(a) Cost is the same for federal income tax purposes.
Bond Insurance:
- ---------------
Ambac Ambac Assurance Corporation.
FSA Financial Security Assurance Inc.
FGIC Financial Guaranty Insurance Company.
MBIA Municipal Bond Investors Assurance Corporation.
</Table>
6
See Notes to Financial Statements
Morgan Stanley New York Municipal Money Market Trust
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
June 30, 2004 (unaudited)
<Table>
Assets:
Investments in securities, at value
(cost $62,671,313)........................................ $62,671,313
Cash........................................................ 74,434
Interest receivable......................................... 116,392
Prepaid expenses and other assets........................... 29,813
-----------
Total Assets............................................ 62,891,952
-----------
Liabilities:
Payable for:
Shares of beneficial interest redeemed.................. 360,000
Investment management fee............................... 11,296
Distribution fee........................................ 5,730
Accrued expenses and other payables......................... 89,282
-----------
Total Liabilities....................................... 466,308
-----------
Net Assets.............................................. $62,425,644
===========
Composition of Net Assets:
Paid-in-capital............................................. $62,425,091
Accumulated undistributed net investment income............. 553
-----------
Net Assets.............................................. $62,425,644
===========
Net Asset Value Per Share,
62,425,618 shares outstanding (unlimited shares authorized
of $.01 par value).......................................... $1.00
===========
</Table>
7
See Notes to Financial Statements
Morgan Stanley New York Municipal Money Market Trust
FINANCIAL STATEMENTS continued
Statement of Operations
For the six months ended June 30, 2004 (unaudited)
<Table>
Net Investment Income:
Interest Income............................................. $327,511
--------
Expenses
Investment management fee................................... 165,611
Professional fees........................................... 39,930
Distribution fee............................................ 33,122
Transfer agent fees and expenses............................ 17,243
Shareholder reports and notices............................. 15,499
Trustees' fees and expenses................................. 3,916
Custodian fees.............................................. 3,363
Registration fees........................................... 2,990
Other....................................................... 2,475
--------
Total Expenses.......................................... 284,149
Less: amounts waived........................................ (31,824)
Less: expense offset........................................ (3,150)
--------
Net Expenses............................................ 249,175
--------
Net Investment Income....................................... $ 78,336
========
</Table>
8
See Notes to Financial Statements
Morgan Stanley New York Municipal Money Market Trust
FINANCIAL STATEMENTS continued
Statement of Changes in Net Assets
<Table>
<Caption>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, 2004 DECEMBER 31, 2003
------------- -----------------
(unaudited)
Increase (Decrease) in Net Assets:
Operations:
Net investment income....................................... $ 78,336 $ 197,460
Dividends to shareholders from net investment income........ (78,376) (197,469)
Net decrease from transactions in shares of beneficial
interest.................................................. (5,660,298) (15,398,751)
----------- ------------
Net Decrease............................................ (5,660,338) (15,398,760)
Net Assets:
Beginning of period......................................... 68,085,982 83,484,742
----------- ------------
End of Period
(Including accumulated undistributed net investment income
of $553 and $593, respectively)............................. $62,425,644 $ 68,085,982
=========== ============
</Table>
9
See Notes to Financial Statements
Morgan Stanley New York Municipal Money Market Trust
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2004 (UNAUDITED)
1. Organization and Accounting Policies
Morgan Stanley New York Municipal Money Market Trust (the "Fund") is registered
under the Investment Company Act of 1940, as amended (the "Act"), as a
non-diversified, open-end management investment company. The Fund's investment
objective is to provide a high level of daily income which is exempt from
federal and New York income tax, consistent with stability of principal and
liquidity. The Fund was organized as a Massachusetts business trust on December
28, 1989 and commenced operations on March 20, 1990.
The following is a summary of significant accounting policies:
A. Valuation of Investments -- Portfolio securities are valued at amortized
cost, which approximates market value.
B. Accounting for Investments -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Discounts are accreted and premiums are amortized over the life of the
respective securities. Interest income is accrued daily.
C. Federal Income Tax Policy -- 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 and nontaxable
income to its shareholders. Accordingly, no federal income tax provision is
required.
D. Dividends and Distributions to Shareholders -- The Fund records dividends and
distributions to shareholders as of the close of each business day.
E. Use of Estimates -- The preparation of financial statements in accordance
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts and disclosures.
Actual results could differ from those estimates.
2. Investment Management Agreement
Pursuant to an Investment Management Agreement with Morgan Stanley Investment
Advisors Inc. (the "Investment Manager"), the Fund pays the Investment Manager a
management fee, accrued daily and payable monthly, by applying the following
annual rates to the net assets of the Fund determined as of the close of each
business day: 0.50% to the portion of the daily net assets not exceeding $500
million; 0.425% to the portion of the daily net assets exceeding $500 million
but not exceeding $750 million; 0.375% to the portion of the daily net assets
exceeding $750 million but not exceeding $1 billion; 0.35% to the portion of the
daily net assets exceeding $1 billion but not exceeding $1.5 billion; 0.325% to
the portion of the daily net assets exceeding $1.5 billion but not
10
Morgan Stanley New York Municipal Money Market Trust
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2004 (UNAUDITED) continued
exceeding $2 billion; 0.30% to the portion of the daily net assets exceeding $2
billion but not exceeding $2.5 billion; 0.275% to the portion of the daily net
assets exceeding $2.5 billion but not exceeding $3 billion; and 0.25% to the
portion of daily net assets exceeding $3 billion.
Effective May 1, 2004, the Investment Manager has agreed to assume all operating
expenses and to waive the compensation provided for in its Investment Management
Agreement to the extent that such expenses and compensation on an annualized
basis exceed 0.60% of the daily net assets of the Fund.
For the period January 1, 2004 through April 30, 2004, the Investment Manager
voluntarily waived $1,199 of its fee.
3. Plan of Distribution
Morgan Stanley Distributors Inc. (the "Distributor"), an affiliate of the
Investment Manager, is the distributor of the Fund's shares and in accordance
with a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Act,
finances certain expenses in connection with the promotion of sales of Fund
shares.
Reimbursements for these expenses are made in monthly payments by the Fund to
the Distributor, which will in no event exceed an amount equal to a payment at
the annual rate of 0.15% of the Fund's average daily net assets during the
month. Expenses incurred by the Distributor pursuant to the Plan in any fiscal
year will not be reimbursed by the Fund through payments accrued in any
subsequent fiscal year. For the six months ended June 30, 2004, the distribution
fee was accrued at the annual rate of 0.10%.
4. Security Transactions and Transactions with Affiliates
The cost of purchases and proceeds from sales/maturities of portfolio securities
for the six months ended June 30, 2004, aggregated $85,626,200 and $91,545,000,
respectively.
Morgan Stanley Trust, an affiliate of the Investment Manager and Distributor, is
the Fund's transfer agent. At June 30, 2004, the Fund had transfer agent fees
and expenses payable of approximately $660.
The Fund has an unfunded noncontributory defined benefit pension plan covering
certain independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on factors which include years of service and compensation.
Aggregate pension costs for the six months ended June 30, 2004, included in
Trustees' fees and expenses in the Statement of Operations amounted to $3,479.
At June 30,
11
Morgan Stanley New York Municipal Money Market Trust
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2004 (UNAUDITED) continued
2004, the Fund had an accrued pension liability of $57,287 which is included in
accrued expenses in the Statement of Assets and Liabilities. On December 2,
2003, the Trustees voted to close the plan to new participants and eliminate the
future benefits growth due to increases to compensation after July 31, 2003.
Effective April 1, 2004, the Fund began an unfunded Deferred Compensation Plan
(the "Compensation Plan") which allows each independent Trustee to defer payment
of all, or a portion, of the fees he receives for serving on the Board of
Trustees. Each eligible Trustee generally may elect to have the deferred amounts
credited with a return equal to the total return on one or more of the Morgan
Stanley funds that are offered as investment options under the Compensation
Plan. Appreciation/depreciation and distributions received from these
investments are recorded with an offsetting increase/decrease in the deferred
compensation obligation and do not affect the net asset value of the Fund.
5. Shares of Beneficial Interest
Transactions in shares of beneficial interest, at $1.00 per share, were as
follows:
<Table>
<Caption>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, 2004 DECEMBER 31, 2003
------------- -----------------
(unaudited)
Shares sold................................................. 55,970,693 165,036,737
Shares issued in reinvestment of dividends.................. 78,376 197,469
----------- ------------
56,049,069 165,234,206
Shares redeemed............................................. (61,709,367) (180,632,957)
----------- ------------
Net decrease in shares outstanding.......................... (5,660,298) (15,398,751)
=========== ============
</Table>
6. Expense Offset
The expense offset represents a reduction of the custodian fees for earnings on
cash balances maintained by the Fund.
7. Legal Matter
The Investment Manager, certain affiliates of the Investment Manager, certain
officers of such affiliates and certain investment companies advised by the
Investment Manager or its affiliates, including the Fund, are named as
defendants in a number of similar class action complaints which were recently
consolidated. This consolidated action also names as defendants certain
individual Trustees and Directors of the Morgan Stanley funds. The consolidated
amended complaint generally alleges that defendants, including the Fund,
violated their statutory disclosure obligations and
12
Morgan Stanley New York Municipal Money Market Trust
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2004 (UNAUDITED) continued
fiduciary duties by failing properly to disclose (i) that the Investment Manager
and certain affiliates of the Investment Manager allegedly offered economic
incentives to brokers and others to recommend the funds advised by the
Investment Manager or its affiliates to investors rather than funds managed by
other companies, and (ii) that the funds advised by the Investment Manager or
its affiliates, including the Fund, allegedly paid excessive commissions to
brokers in return for their efforts to recommend these funds to investors. The
complaint seeks, among other things, unspecified compensatory damages,
rescissionary damages, fees and costs. The defendants have moved to dismiss the
action and intend to otherwise vigorously defend it. While the Fund believes
that it has meritorious defenses, the ultimate outcome of this matter is not
presently determinable at this early stage of the litigation, and no provision
has been made in the Fund's financial statements for the effect, if any, of this
matter.
13
Morgan Stanley New York Municipal Money Market Trust
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<Table>
<Caption>
FOR THE SIX FOR THE YEAR ENDED DECEMBER 31,
MONTHS ENDED ----------------------------------------------------------------
JUNE 30, 2004 2003 2002 2001 2000 1999
------------- -------- -------- -------- -------- --------
(unaudited)
Selected Per Share Data:
Net asset value, beginning of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ -------
Net income from investment operations.... 0.001 0.003 0.006 0.019 0.031 0.023
Less dividends from net investment
income.................................. (0.001) (0.003) (0.006) (0.019) (0.031) (0.023)
------ ------ ------ ------ ------ -------
Net asset value, end of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== =======
Total Return............................. 0.12%(1) 0.27% 0.64% 1.90% 3.15% 2.29%
Ratios to Average Net Assets:
Expenses (before expense offset)......... 0.76%(2)(3)(4) 0.79%(3)(4) 0.80%(3) 0.78%(3) 0.82%(3) 0.88%(3)
Net investment income.................... 0.24%(2)(4) 0.27%(4) 0.63% 1.90% 3.12% 2.25%
Supplemental Data:
Net assets, end of period, in
thousands............................... $62,426 $68,086 $83,485 $75,240 $73,250 $62,009
</Table>
- ---------------------
<Table>
(1) Not annualized.
(2) Annualized.
(3) Does not reflect the effect of the expense offset of 0.01%.
(4) If the Investment Manager had not waived a portion of its fee, the annualized expense and net investment income
ratios would have been as follows:
EXPENSE NET INVESTMENT
PERIOD ENDED: RATIO INCOME RATIO
----------------- ---- ----
June 30, 2004 0.86% 0.14%
December 31, 2003 0.80 0.26
</Table>
14
See Notes to Financial Statements
(This Page Intentionally Left Blank)
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
James F. Higgins
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael E. Nugent
Fergus Reid
OFFICERS
Charles A. Fiumefreddo
Chairman of the Board
Mitchell M. Merin
President
Ronald E. Robison
Executive Vice President and Principal Executive Officer
Barry Fink
Vice President
Joseph J. McAlinden
Vice President
Stefanie V. Chang
Vice President
Francis J. Smith
Treasurer and Chief Financial Officer
Thomas F. Caloia
Vice President
Mary E. Mullin
Secretary
TRANSFER AGENT
Morgan Stanley Trust
Harborside Financial Center, Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281
INVESTMENT MANAGER
Morgan Stanley Investment Advisors Inc.
1221 Avenue of the Americas
New York, New York 10020
The financial statements included herein have been taken from the records of the
Fund without examination by the independent auditors and accordingly they do not
express an opinion thereon.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its fees and expenses and
other pertinent information, please read its Prospectus. The Fund's Statement of
Additional Information contains additional information about the Fund, including
its trustees. It is available, without charge, by calling (800) 869-NEWS.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective Prospectus. Read the
Prospectus carefully before investing.
Investments and services offered through Morgan Stanley DW Inc., member SIPC.
Morgan Stanley Distributors Inc., member NASD.
(c) 2004 Morgan Stanley
[MORGAN STANLEY LOGO]
MORGAN STANLEY FUNDS
Morgan Stanley
New York Municipal
Money Market Trust
Semiannual Report
June 30, 2004
[MORGAN STANLEY LOGO]
37906RPT-RA04-00482P-Y06/04
Item 2. Code of Ethics.
Not applicable for semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semiannual reports.
Item 4. Principal Accountant Fees and Services
Not applicable for semiannual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semiannual reports.
Item 6. [Reserved.]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for semiannual reports.
Item 8. [Reserved.]
Item 9 - Controls and Procedures
(a) The Fund's principal executive officer and principal financial officer have
concluded that the Fund's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Fund in this Form N-CSR
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
There were no significant changes or corrective actions with regard to
significant deficiencies or material weaknesses in the Fund's internal controls
or in other factors that could significantly affect the Fund's internal controls
subsequent to the date of their evaluation.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal half-year
(the registrant's second fiscal half-year in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 10 Exhibits
(a) Code of Ethics - Not applicable for semiannual reports.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant are attached hereto as part of EX-99.CERT.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Morgan Stanley New York Municipal Money Market Trust
/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
August 19, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
August 19, 2004
/s/ Francis Smith
Francis Smith
Principal Financial Officer
August 19, 2004
3