<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Performance Results.............................. 4
Portfolio of Investments......................... 5
Statement of Assets and Liabilities.............. 8
Statement of Operations.......................... 9
Statement of Changes in Net Assets............... 10
Financial Highlights............................. 11
Notes to Financial Statements.................... 12
</TABLE>
VNQ SAR 4/96
<PAGE> 2
LETTER TO SHAREHOLDERS
April 15, 1996
Dear Shareholder,
We are pleased to report that the
Van Kampen American Capital New York
Quality Municipal Trust (formerly Van
Kampen Merritt New York Quality
Municipal Trust) continued its strong
performance over the first half of its [PHOTO OF DENNIS J. MCDONNELL
fiscal year, having achieved a total AND DON G. POWELL]
return at market price of 9.09
percent( 1) for the six months ended
February 29, 1996.
Additionally, the Trust offered a
tax-exempt distribution rate of 6.41
percent( 3), based on the closing common stock price of $16.375 per share on
February 29, 1996. Because income from the Trust is exempt from federal and
state income tax, this distribution rate represents a yield equivalent to a
taxable investment earning 10.85 percent( 4) (for New York residents in the 40.9
percent combined marginal income tax bracket).
ABOVE-AVERAGE CUMULATIVE TOTAL RETURN
While the six-month results are attractive for investors, the return for
each period will vary according to changing market conditions. It is important,
therefore, to look at the Trust's cumulative results to see the full benefit of
its long-term investment approach.
Since beginning operations in September 1991, the Trust's cumulative total
return at net asset value was 51.84 percent, as calculated by Lipper Analytical
Services. This compares favorably to the 44.59 percent average return recorded
for the same period by eight New York state closed-end funds tracked by Lipper
in the New York muni debt category. The Trust's performance demonstrates the
value of experienced portfolio management, as well as the importance of
reinvesting distributions. Together, these factors reinforce our confidence in
the long-term approach we utilize in managing the Trust.
(Please note that Lipper's measurement of total return performance does not
reflect any sales charges that would be paid by an investor purchasing the
securities included in the calculation.)
EXTENSIVE EXPERIENCE IN MUNICIPAL BONDS
This year, we will celebrate 22 years of experience in investing in
municipal bonds. Thanks to our long-term investment record, Van Kampen American
Capital Investment Advisory Corp. today manages over $12 billion in municipal
bonds. We attribute much of our success to skillful, in-depth credit analysis of
the securities in which we invest, conducted by one of the largest municipal
research departments in the industry. Over the years, careful attention to the
Trust's overall credit composition (refer to the pie chart on page 2), average
bond maturity, duration and coupon structure also have benefited the Trust's
performance.
Continued on page two
1
<PAGE> 3
MUNICIPAL MARKET OVER THE PAST SIX MONTHS
The slowdown in the economy continued through the end of 1995, reflected by
weak consumer demand and disappointing retail sales during the holiday season.
Severe winter weather in many parts of the country further dampened retail
activity and hindered distribution and manufacturing.
These conditions helped to keep inflation in check, prompting the
Federal Reserve Board to continue easing short-term interest rates. In turn,
long-term interest rates declined, causing the price of bonds to increase.
Municipal bond yields declined in concert with other interest rates, with the
yield on the Bond Buyer's 40 Municipal Bond Index dropping by 40 basis points
to 5.71 percent. At the same time, the Index increased by 3.5 percent to
118.72.
The beginning of 1996 was marked by an increase in market volatility, which
effectively ended the decline in muni yields. This volatility was triggered in
part by three factors: fiscal uncertainty caused by two unprecedented shutdowns
of the federal government, presidential primary debates about impending tax
reform, and an unexpected reversal in a number of key economic indicators, which
consequently sent the market mixed signals on the direction of the economy.
Still, due to the government shutdowns and the unusually harsh weather, the
market remained skeptical of the predictive value of economic statistics issued
for January and February. Interest rates have fluctuated as the market attempts
to determine whether the economy will remain slow throughout 1996.
[Credit Quality Graph]
Portfolio Composition by Credit Quality as of February 29, 1996
<TABLE>
<S> <C>
AAA .......................................... 36.7%
AA ........................................... 3.5
A ............................................ 9.6
BBB .......................................... 40.6
BB ........................................... 1.5
Non-Rated .................................... 8.1
-----
100.0%
=====
</TABLE>
OUTLOOK FOR THE MUNICIPAL MARKET
In general, we anticipate a pickup in economic activity during the first
half of the year, with possibilities of an increase in inflation and an economic
slowdown toward the end of the year. We believe the Fed will be cautious in its
monetary policy toward short-term interest rates, as mixed economic news
continues to be reported.
The Fed is expected to maintain its focus on growing the economy at an
annual rate of 2 to 3 percent, while striving to keep inflation at bay. Interest
rates are likely to remain within the range experienced over the past several
years, with a continuation of historically low rates.
This type of market environment (of relatively low rates) typically lends
itself to the use of an investment technique called leveraging, which involves
borrowing short-term funds to purchase long-term municipal securities. The
yields available on these long-term securities (which are typically much higher
than those on short-term securities) have enabled our portfolio management team
to cover the cost of the Trust's short-term borrowing by a substantial margin.
The additional income earned by the Trust through leveraging has been reflected
in its ability to maintain a highly attractive distribution rate in
Continued on page three
2
<PAGE> 4
relation to similar--but non-leveraged--investment vehicles. (Conversely, a rise
in interest rates may tend to produce an unfavorable effect on the Trust's
common share performance and would likely cause the Trust to underperform a
non-leveraged portfolio.)
NEW YORK MUNICIPAL BONDS
With the exception of New York City's securities industry, the state's
economy continues to show little sign of growth. The state's legislative
uncertainties, along with its projected $3.9 billion budget deficit for 1997,
raise many unanswered questions.
Nevertheless, the state's securities industry experienced its second-best
year on record last year and is off to a similarly encouraging start this year.
In fact, the securities industry accounts for 4 percent of New York City's
workforce, and increases the average salary in the city from $33,000 to $45,000.
In light of New York's overall economy, the Trust's investments reflect a
suitable caution, with 36.7 percent of the portfolio invested in AAA-rated
municipal bonds and 40.6 percent invested in BBB-rated (investment grade)
municipals.
TOP 5 INDUSTRY HOLDINGS BY SECTOR AS OF FEBRUARY 29, 1996
General Purpose.......................................... 29.1%
Higher Education......................................... 13.5%
Industrial Revenue....................................... 11.4%
Public Building.......................................... 10.6%
Water & Sewer............................................ 6.9%
RESEARCH AND LONG-TERM RETURNS
We believe that the cumulative return of the Trust--and the performance
achieved by many of our other municipal bond funds--demonstrates our commitment
to thorough research and a long-term, value-oriented investment approach.
Thank you for your confidence in Van Kampen American Capital and in your
Trust's management team.
Sincerely,
DON G. POWELL
Don G. Powell
Chairman
Van Kampen American Capital
Investment Advisory Corp.
DENNIS J. McDONNELL
Dennis J. McDonnell
President
Van Kampen American Capital
Investment Advisory Corp.
3
<PAGE> 5
PERFORMANCE RESULTS FOR THE PERIOD ENDED FEBRUARY 29, 1996
VAN KAMPEN AMERICAN CAPITAL NEW YORK QUALITY MUNICIPAL TRUST
(NYSE TICKER SYMBOL-VNM)
<TABLE>
<CAPTION>
COMMON SHARE TOTAL RETURNS
<S> <C>
Six-month total return based on market price(1)............. 9.09%
Six-month total return based on NAV(2)...................... 5.90%
DISTRIBUTION RATES
Distribution rate as a % of closing common stock price(3)... 6.41%
Taxable-equivalent distribution rate as a % of closing
common stock price(4)..................................... 10.85%
SHARE VALUATIONS
Net asset value............................................. $ 16.91
Closing common stock price.................................. $16.375
Six-month high common stock price (02/02/96)................ $17.125
Six-month low common stock price (09/21/95)................. $15.125
Preferred share rate(5)..................................... 3.470%
</TABLE>
(1)Total return based on market price assumes an investment at the market price
at the beginning of the period indicated, reinvestment of all distributions for
the period in accordance with the Trust's dividend reinvestment plan, and sale
of all shares at the closing stock price at the end of the period indicated.
(2)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.
(3)Distribution rate represents the monthly annualized distributions of the
Trust at the end of the period and not the earnings of the Trust.
(4)The taxable-equivalent distribution rate is calculated assuming a 40.9%
combined federal and state tax bracket, which takes into consideration the
deductibility of individual state taxes paid.
(5)See "Notes to Financial Statements" footnote #4, for more information
concerning Preferred Share reset periods.
A portion of the interest income may be taxable for those investors subject to
the federal alternative minimum tax (AMT).
Past performance does not guarantee future results. Investment return, stock
price and net asset value will fluctuate with market conditions. Trust shares,
when sold, may be worth more or less than their original cost.
4
<PAGE> 6
PORTFOLIO OF INVESTMENTS
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS
NEW YORK 92.0%
$ 1,000 Erie Cnty, NY Ser B (FGIC Insd).............. 5.625% 06/15/20 $ 1,002,390
1,000 Erie Cnty, NY Ser B (FGIC Insd).............. 5.500 06/15/25 990,570
3,000 Grand Cent Dist Mgmt Assn Inc NY Business
Impt Dist Cap Impt (Prerefunded @
01/01/02).................................... 6.500 01/01/22 3,387,510
2,500 Herkimer Cnty, NY Indl Dev Agy Indl Dev Rev
Burrows Paper Corp Recycling................. 8.000 01/01/09 2,662,475
4,000 Monroe Cnty, NY Arpt Auth Rev Greater
Rochester Intl (MBIA Insd)................... 7.250 01/01/09 4,386,240
1,400 Monroe Cnty, NY Indl Dev Agy Rev Pub Impt
Canal Ponds Park Ser A....................... 7.000 08/18/99 1,496,866
2,000 Nassau Cnty, NY Genl Impt Ser Q (FGIC
Insd)........................................ 5.200 08/01/13 1,962,860
1,000 New York City Indl Dev Agy Spl Fac Rev 1990
AMR/American Airls Inc....................... 7.750 07/01/19 1,073,520
1,500 New York City Indl Dev Agy Spl Fac Rev
Terminal One Group Assn Proj................. 6.000 01/01/19 1,497,075
1,000 New York City Muni Wtr Fin Auth Wtr & Swr Sys
Rev Ser A.................................... 5.500 06/15/23 966,350
5,000 New York City Muni Wtr Fin Auth Wtr & Swr Sys
Rev Ser F (AMBAC Insd)....................... 5.500 06/15/12 5,044,550
2,840 New York City Ser A.......................... 7.750 08/15/06 3,195,966
10,000 New York City Ser B (Embedded Cap) (b)....... 6.600 10/01/16 10,265,800
5,000 New York City Ser C Subser C1................ 7.500 08/01/20 5,600,500
2,750 New York City Ser D.......................... 6.500 02/15/06 2,891,900
1,000 New York City Ser D Rfdg..................... 5.750 08/15/14 956,720
240 New York City Ser F.......................... 8.250 11/15/16 277,073
2,760 New York City Ser F (Prerefunded @
11/15/01).................................... 8.250 11/15/16 3,357,899
1,625 New York St Dorm Auth Rev City Univ Sys Cons
Ser A........................................ 5.625 07/01/16 1,613,186
2,000 New York St Dorm Auth Rev City Univ Sys Cons
Ser A (Prerefunded @ 07/01/00)............... 7.625 07/01/20 2,312,740
2,000 New York St Dorm Auth Rev Court Fac Lease Ser
A............................................ 5.625 05/15/13 1,917,920
1,000 New York St Dorm Auth Rev Court Fac Lease Ser
A............................................ 5.250 05/15/21 917,010
1,750 New York St Dorm Auth Rev Dept of Hlth....... 5.625 07/01/12 1,694,472
2,075 New York St Dorm Auth Rev Genessee Valley Ser
B (FHA Gtd).................................. 6.900 08/01/32 2,264,987
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................ * 07/01/06 597,670
905 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................ * 07/01/07 507,895
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................ * 07/01/08 526,320
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................ * 07/01/09 492,550
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................ * 07/01/10 459,970
5,000 New York St Dorm Auth Rev St Univ Edl Fac Ser
B Rfdg....................................... 5.000 05/15/18 4,443,650
2,000 New York St Dorm Auth Rev Upstate Cmnty
Colleges Ser B (Prerefunded @ 07/01/01)...... 7.375 07/01/11 2,326,480
</TABLE>
See Notes to Financial Statements
5
<PAGE> 7
PORTFOLIO OF INVESTMENTS (CONTINUED)
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 2,000 New York St Dorm Auth Rev Upstate Cmnty
Colleges Ser B (Prerefunded @ 07/01/01)...... 7.200% 07/01/21 $ 2,303,700
3,500 New York St Energy Resh & Dev Auth Elec Fac
Rev Cons Edison Co NY Inc Proj (MBIA Insd)... 6.000 03/15/28 3,584,455
2,750 New York St Energy Resh & Dev Auth Elec Fac
Rev Cons Edison Co NY Inc Proj Ser A (MBIA
Insd)........................................ 7.125 03/15/22 2,879,167
1,110 New York St Energy Resh & Dev Auth Elec Fac
Rev Cons Edison Co NY Inc Proj Ser A (MBIA
Insd)........................................ 7.500 01/01/26 1,218,380
1,750 New York St Energy Resh & Dev Auth Elec Fac
Rev Cons Edison Co NY Inc Proj Ser A (MBIA
Insd)........................................ 6.750 01/15/27 1,866,200
3,000 New York St Energy Resh & Dev Auth Gas Fac
Rev Brooklyn Union Gas Ser C (MBIA Insd)..... 5.600 06/01/25 2,921,850
4,000 New York St Energy Resh & Dev Auth Pollutn
Ctl Rev Niagara Mohawk Pwr Rfdg (FGIC
Insd)........................................ 6.625 10/01/13 4,430,880
3,215 New York St Environmental Fac Corp Pollutn
Ctl Rev NYC Muni Wtr Fin Auth Ser E.......... 6.600 06/15/09 3,584,339
2,000 New York St Environmental Fac Corp Solid
Waste Disp Rev Occidental Petroleum Corp
Proj......................................... 6.100 11/01/30 1,997,220
2,290 New York St Hsg Fin Agy Rev Newburgh
Interfaith Hsg Ser A......................... 7.050 11/01/12 2,428,637
1,500 New York St Loc Govt Assistance Corp Ser D
(Prerefunded @ 04/01/02)..................... 7.000 04/01/18 1,739,775
185 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser C.......................... 7.300 02/15/21 205,354
565 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser C (Prerefunded @
08/15/01).................................... 7.300 02/15/21 659,282
2,470 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser D.......................... 7.400 02/15/18 2,779,738
2,000 New York St Med Care Fac Fin Agy Rev
Presbyterian Hosp Ser A Rfdg (FHA Gtd)....... 5.375 02/15/25 1,906,940
1,000 New York St Muni Bond Bk Agy Spl Pgm Rev
Buffalo Ser A................................ 6.875 03/15/06 1,082,960
3,000 New York St Muni Bond Bk Agy Spl Pgm Rev
Rochester Ser A.............................. 6.750 03/15/11 3,265,770
2,000 New York St Urban Dev Corp Rev Correctional
Cap Fac Ser A Rfdg (FSA Insd)................ 5.250 01/01/21 1,897,560
5,000 New York St Urban Dev Corp Rev Correctional
Cap Fac Ser 3 (Prerefunded @ 01/01/02)....... 7.000 01/01/21 5,773,800
2,000 New York St Urban Dev Corp Rev Correctional
Fac Rfdg..................................... 5.625 01/01/07 2,004,660
2,500 Port Auth NY & NJ Cons Ser 77................ 6.250 01/15/27 2,600,225
1,000 Port Auth NY & NJ Delta Airls Inc Proj Ser
1R........................................... 6.950 06/01/08 1,070,210
1,610 Troy, NY Indl Dev Auth Lease Rev City of Troy
Proj......................................... 8.000 03/15/12 1,723,392
1,540 Troy, NY Indl Dev Auth Lease Rev City of Troy
Proj......................................... 8.000 03/15/22 1,657,179
1,930 Yonkers, NY Ser A (FGIC Insd)................ 6.500 02/15/07 2,132,167
400 Yonkers, NY Ser A (FGIC Insd)................ 6.500 02/15/12 440,800
------------
129,245,754
------------
</TABLE>
See Notes to Financial Statements
6
<PAGE> 8
PORTFOLIO OF INVESTMENTS (CONTINUED)
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
GUAM 2.9%
$ 2,000 Guam Arpt Auth Rev Ser B..................... 6.400% 10/01/05 $ 2,049,500
1,000 Guam Arpt Auth Rev Ser B..................... 6.700 10/01/23 1,025,140
1,000 Guam Pwr Auth Rev Ser A...................... 6.625 10/01/14 1,041,630
-------------
4,116,270
-------------
PUERTO RICO 2.2%
3,061 Puerto Rico Comwlth Dept of Hlth Lease Purch
Ctfs. ....................................... 7.250 04/07/01 3,069,773
-------------
U. S. VIRGIN ISLANDS 1.6%
2,000 Virgin Islands Pub Fin Auth Rev Matching Fd
Ln Nts Ser A Rfdg............................ 7.250 10/01/18 2,158,520
-------------
TOTAL LONG-TERM INVESTMENTS 98.7%
(Cost $127,612,036)(a)................................................... 138,590,317
OTHER ASSETS IN EXCESS OF LIABILITIES 1.3%................................ 1,856,849
-------------
NET ASSETS 100%........................................................... $ 140,447,166
=============
</TABLE>
* Zero coupon bond
(a) At February 29, 1996, cost for federal income tax purposes is $127,612,036;
the aggregate gross unrealized appreciation is $11,098,656 and the aggregate
gross unrealized depreciation is $120,375, resulting in net unrealized
appreciation of $10,978,281.
(b) An Embedded Cap security includes a cap strike level such that the coupon
payment may be supplemented by cap payments if the floating rate index upon
which the cap is based rises above the strike level. The price of these
securities may be more volatile than the price of a comparable fixed rate
security. The Trust invests in these instruments as a hedge against a rise
in the short-term interest rates which it pays on its preferred shares.
See Notes to Financial Statements
7
<PAGE> 9
STATEMENT OF OPERATIONS
For the Six Months Ended February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest............................................................... $ 4,338,340
------------
EXPENSES:
Investment Advisory Fee (Note 2)....................................... 488,306
Administrative Fee (Note 2)............................................ 139,516
Preferred Share Maintenance (Note 4)................................... 64,838
Trustees Fees and Expenses (Note 2).................................... 15,356
Legal (Note 2)......................................................... 11,830
Amortization of Organizational Expenses (Note 1)....................... 2,988
Other.................................................................. 103,244
------------
Total Expenses..................................................... 826,078
------------
NET INVESTMENT INCOME.................................................. $ 3,512,262
============
REALIZED AND UNREALIZED GAIN/LOSS ON INVESTMENTS:
Realized Gain/Loss on Investments:
Proceeds from Sales.................................................. $ 14,146,220
Cost of Securities Sold.............................................. (13,575,710)
------------
Net Realized Gain on Investments....................................... 570,510
------------
Unrealized Appreciation/Depreciation on Investments:
Beginning of the Period.............................................. 8,758,342
End of the Period.................................................... 10,978,281
------------
Net Unrealized Appreciation on Investments During the Period........... 2,219,939
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS........................ $ 2,790,449
============
NET INCREASE IN NET ASSETS FROM OPERATIONS............................. $ 6,302,711
============
</TABLE>
See Notes to Financial Statements
9
<PAGE> 10
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended February 29, 1996
And the Year Ended August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 29, 1996 August 31, 1995
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................ $ 3,512,262 $ 7,010,010
Net Realized Gain/Loss on Investments................ 570,510 (353,387)
Net Unrealized Appreciation on Investments During the
Period............................................. 2,219,939 1,303,987
------------ ------------
Change in Net Assets from Operations................. 6,302,711 7,960,610
------------ ------------
Distributions from Net Investment Income:
Common Shares...................................... (2,962,714) (5,925,449)
Preferred Shares................................... (835,379) (1,504,765)
------------ ------------
(3,798,093) (7,430,214)
------------ ------------
Distributions from and in Excess of Net Realized Gain
on Investments (Note 1):
Common Shares...................................... -0- (1,218,434)
Preferred Shares................................... -0- (236,601)
------------ ------------
-0- (1,455,035)
------------ ------------
Total Distributions.................................. (3,798,093) (8,885,249)
------------ ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES......................................... 2,504,618 (924,639)
NET ASSETS:
Beginning of the Period.............................. 137,942,548 138,867,187
------------ ------------
End of the Period (Including undistributed net
investment income of $824,297 and $1,110,128,
respectively)...................................... $140,447,166 $137,942,548
============ ============
</TABLE>
See Notes to Financial Statements
10
<PAGE> 11
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one common share
of the Trust outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 27, 1991
Six Months (Commencement
Ended Year Ended August 31 of Investment
February 29, ------------------------ Operations) to
1996 1995 1994 1993 August 31, 1992
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of the Period(a).... $16.469 $16.633 $17.958 $16.303 $14.777
------- ------- ------- ------- -------
Net Investment Income......... .622 1.243 1.302 1.307 1.068
Net Realized and Unrealized
Gain/Loss on Investments.... .495 .168 (1.163) 1.640 1.400
------- ------- ------- ------- -------
Total from Investment
Operations.................... 1.117 1.411 .139 2.947 2.468
------- ------- ------- ------- -------
Less:
Distributions from Net
Investment Income:
Paid to Common
Shareholders.............. .525 1.050 1.050 1.007 .743
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders.... .148 .267 .211 .195 .199
Distributions from and in
Excess of Net Realized Gain
on Investments (Note 1):
Paid to Common
Shareholders.............. -0- .216 .177 .071 -0-
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders.... -0- .042 .026 .019 -0-
------- ------- ------- ------- -------
Total Distributions............. .673 1.575 1.464 1.292 .942
------- ------- ------- ------- -------
Net Asset Value, End of the
Period........................ $16.913 $16.469 $16.633 $17.958 $16.303
======= ======= ======= ======= =======
Market Price Per Share at End of
the Period.................... $16.375 $15.500 $15.375 $17.250 $15.625
Total Investment Return at
Market Price(b)............... 9.09%* 9.73% (4.08%) 17.94% 9.39%*
Total Return at Net Asset
Value(c)...................... 5.90%* 7.29% (.67%) 17.42% 14.00%*
Net Assets at End of the Period
(In millions)................. $140.4 $137.9 $138.9 $146.3 $137.0
Ratio of Expenses to Average Net
Assets Applicable to Common
Shares........................ 1.73% 1.76% 1.66% 1.66% 1.67%
Ratio of Expenses to Average Net
Assets........................ 1.18% 1.17% 1.14% 1.13% 1.17%
Ratio of Net Investment Income
to Average Net Assets
Applicable to Common
Shares(d)..................... 5.62% 6.08% 6.31% 6.58% 6.27%
Portfolio Turnover.............. 9.84% 49.89% 21.04% 25.18% 65.10%
</TABLE>
* Non-Annualized
(a) Net asset value at September 27, 1991, is adjusted for common and preferred
share offering costs of $.223 per common share.
(b) Total investment return at market price reflects the change in market value
of the common shares for the period indicated with reinvestment of dividends
in accordance with the Trust's dividend reinvestment plan.
(c) Total return at net asset value (NAV) reflects the change in value of the
Trust's assets with reinvestment of dividends based upon NAV.
(d) Net investment income is adjusted for common share equivalent of
distributions paid to preferred shareholders.
See Notes to Financial Statements
11
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen American Capital New York Quality Municipal Trust (the "Trust") is
registered as a non-diversified closed-end management investment company under
the Investment Company Act of 1940, as amended. The Trust's investment objective
is to provide a high level of current income exempt from federal as well as from
New York State and New York City income taxes, consistent with preservation of
capital. The Trust will invest in a portfolio consisting substantially of New
York municipal obligations rated investment grade at the time of investment, but
may invest up to 20% of its assets in unrated securities which are believed to
be of comparable quality to those rated investment grade. The Trust commenced
investment operations on September 27, 1991.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION--Investments are stated at value using market quotations
or, if such valuations are not available, estimates obtained from yield data
relating to instruments or securities with similar characteristics in accordance
with procedures established in good faith by the Board of Trustees. Short-term
securities with remaining maturities of less than 60 days are valued at
amortized cost.
B. SECURITY TRANSACTIONS--Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
maintain, in a segregated account with its custodian, assets having an aggregate
value at least equal to the amount of the when issued or delayed delivery
purchase commitments until payment is made. At February 29, 1996, there were no
when issued or delayed delivery purchase commitments.
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
C. INVESTMENT INCOME--Interest income is recorded on an accrual basis. Bond
premium and original issue discount are amortized over the expected life of each
applicable security.
D. ORGANIZATIONAL EXPENSES--The Trust has reimbursed Van Kampen American Capital
Distributors, Inc. or its affiliates (collectively "VKAC") for costs incurred in
connection with the Trust's organization and initial registration in the amount
of $30,000. These costs are being amortized on a straight line basis over the
60-month period ending September 26, 1996. Van Kampen American Capital
Investment Advisory Corp. (the "Adviser") has agreed that in the event any of
the initial shares of the Trust originally purchased by VKAC are redeemed during
the amortization period, the Trust will be reimbursed for any unamortized
organizational expenses in the same proportion as the number of shares redeemed
bears to the number of initial shares held at the time of redemption.
E. FEDERAL INCOME TAXES--It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required.
F. DISTRIBUTION OF INCOME AND GAINS--The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, which are included as ordinary income for tax
purposes.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Trust for an annual fee payable
monthly of .70% of the average net assets of the Trust. In addition, the Trust
will pay a monthly administrative fee to VKAC, the Trust's Administrator, at an
annual rate of .20% of the average net assets of the Trust. The administrative
services provided by the Administrator include record keeping and reporting
responsibilities with respect to the Trust's portfolio and preferred shares and
providing certain services to shareholders.
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<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Certain legal expenses are paid to Skadden, Arps, Slate, Meagher & Flom,
counsel to the Trust, of which a trustee of the Trust is an affiliated person.
For the six months ended February 29, 1996, the Trust recognized expenses of
approximately $9,900 representing VKAC's cost of providing accounting and legal
services to the Trust.
Certain officers and trustees of the Trust are also officers and directors
of VKAC. The Trust does not compensate its officers or trustees who are officers
of VKAC.
The Trust has implemented deferred compensation and retirement plans for its
trustees. Under the deferred compensation plan, trustees may elect to defer all
or a portion of their compensation to a later date. The retirement plan covers
those trustees who are not officers of VKAC. The Trust's liability under the
deferred compensation and retirement plans at February 29, 1996, was $36,100.
At February 29, 1996, VKAC owned 6,700 common shares of the Trust.
3. INVESTMENT TRANSACTIONS
Aggregate purchases and cost of sales of investment securities, excluding
short-term notes, for the six months ended February 29, 1996, were $16,485,566
and $13,575,710, respectively.
4. PREFERRED SHARES
The Trust has outstanding 900 Auction Preferred Shares ("APS"). Dividends are
cumulative and the dividend rate is reset through an auction process every 28
days. The rate in effect on February 29, 1996, was 3.47%. During the six months
ended February 29, 1996, the rates ranged from 3.470% to 3.900%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of Preferred Share Maintenance
expense.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $50,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests, and the APS are subject to
mandatory redemption if the tests are not met.
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<PAGE> 15
FUNDS DISTRIBUTED BY VAN KAMPEN AMERICAN CAPITAL
GLOBAL AND
INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund
EQUITY
Growth
Emerging Growth Fund
Enterprise Fund
Pace Fund
Growth & Income
Balanced Fund
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund
FIXED INCOME
Corporate Bond Fund
Government Securities Fund
High Income Corporate Bond Fund
High Yield Fund
Limited Maturity Government Fund
Prime Rate Income Trust
Reserve Fund
U.S. Government Fund
U.S. Government Trust for Income
TAX-FREE
California Insured Tax Free Fund
Florida Insured Tax Free
Income Fund
High Yield Municipal Fund
Insured Tax Free Income Fund
Limited Term Municipal
Income Fund
Municipal Income Fund
New Jersey Tax Free Income Fund
New York Tax Free Income Fund
Pennsylvania Tax Free Income Fund
Tax Free High Income Fund
Tax Free Money Fund
Texas Tax Free Income Fund
THE GOVETT FUNDS
Emerging Markets Fund
Global Income Fund
International Equity Fund
Latin America Fund
Pacific Strategy Fund
Smaller Companies Fund
Ask your investment adviser for a prospectus containing more complete
information, including sales charges and expenses. Please read it carefully
before you invest or send money. Or call us direct at 1-800-421-5666 weekdays
from 7:00 a.m. to 7:00 p.m. Central time.
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VAN KAMPEN AMERICAN CAPITAL NEW YORK QUALITY MUNICIPAL TRUST
OFFICERS AND TRUSTEES
DON G. POWELL*
Chairman and Trustee
DENNIS J. MCDONNELL*
President and Trustee
DAVID C. ARCH
Trustee
ROD DAMMEYER
Trustee
HOWARD J KERR
Trustee
THEODORE A. MYERS
Trustee
HUGO F. SONNENSCHEIN
Trustee
WAYNE W. WHALEN*
Trustee
PETER W. HEGEL*
Vice President
RONALD A. NYBERG*
Vice President and Secretary
EDWARD C. WOOD, III*
Vice President and Treasurer
SCOTT E. MARTIN*
Assistant Secretary
WESTON B. WETHERELL*
Assistant Secretary
NICHOLAS DALMASO*
Assistant Secretary
JOHN L. SULLIVAN*
Controller
STEVEN M. HILL*
Assistant Treasurer
INVESTMENT ADVISER
VAN KAMPEN AMERICAN CAPITAL
INVESTMENT ADVISORY CORP.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
CUSTODIAN AND
TRANSFER AGENT
STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02105
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT AUDITORS
KPMG PEAT MARWICK LLP
Peat Marwick Plaza
303 East Wacker Drive
Chicago, Illinois 60601
* "Interested" persons of the Trust, as defined in
the Investment Company Act of 1940.
(C) Van Kampen American Capital Distributors, Inc., 1996
All rights reserved.
SM denotes a service mark of
Van Kampen American Capital Distributors, Inc.
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