<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Performance Results.............................. 5
Portfolio of Investments......................... 6
Statement of Assets and Liabilities.............. 9
Statement of Operations.......................... 10
Statement of Changes in Net Assets............... 11
Financial Highlights............................. 12
Notes to Financial Statements.................... 13
</TABLE>
VNM SAR 4/97
<PAGE> 2
LETTER TO SHAREHOLDERS
March 21, 1997
Dear Shareholder,
As mentioned in your previous
report, VK/AC Holding, Inc., the parent
company of Van Kampen American Capital,
Inc., was acquired by Morgan Stanley
Group Inc., a world leader in asset [PHOTO]
management and investment banking. The
transaction was completed in October,
and we look forward to exploring the
opportunities it creates for investors.
As part of the acquisition, Van Kampen DENNIS J. MCDONNELL AND DON G. POWELL
American Capital became the distributor
of Morgan Stanley retail funds on January 2, 1997.
More recently, on February 5, 1997, it was announced that Morgan Stanley
Group Inc. and Dean Witter, Discover & Co. agreed to merge. The combined company
will be a preeminent global financial services firm, with leading market
positions in securities, asset management and credit services. As the financial
industry continues to witness unprecedented consolidations and new partnerships,
we believe those firms that want to offer investors the greatest opportunities
and services in the next century must be market leaders in all facets of their
business.
ECONOMIC REVIEW
Due to fears that strong economic growth would trigger higher inflation and
cause the Federal Reserve Board to raise interest rates, bond prices dropped
sharply in the first few months of 1996. The Fed ultimately decided to take no
action, however, and bond prices responded with a rally in May. The rally
continued through the latter part of 1996, with bonds regaining much of the loss
they had experienced earlier in the year. Election-year politics further
strengthened the municipal market; the flat federal income tax proposal lost
support, and the status quo of a split government (a Democratic president and a
Republican Congress) was maintained.
Fixed-income prices showed some volatility in the first two months of 1997,
but remained unchanged from year end. During the six-month reporting period,
municipal bond yields decreased an average of 25 basis points. In comparison,
taxable yields decreased 30 to 35 basis points over the same period. The Trust
performed well in this environment in which interest rates declined and the
price of bonds increased.
Continued on page two
1
<PAGE> 3
FUND STRATEGY
We employed the following strategies in managing the Trust:
- - We maintained a barbell approach to credit quality, which means we
concentrated our investments in the highest and lowest levels of the
investment grade rating spectrum. As of February 28, 1997, about 39 percent
of the Trust's long-term investments are AAA-rated, the highest credit
rating assigned to bonds by the Standard & Poor's Ratings Group. Another 48
percent of the long-term investments are non-rated (with an equivalent
rating of investment grade at the time of purchase) or rated BBB or below.
By investing at both ends of the investment grade rating spectrum, the
portfolio's exposure to the volatility of interest rate movements is more
balanced. While the AAA-rated securities have provided safety of principal
and total return opportunities, lower-rated and non-rated bonds provide
income potential and have tended to exhibit lower price volatility as
interest rates change. The value of Trust shares will fluctuate.
[CREDIT QUALITY GRAPH]
Portfolio Composition by Credit Quality as of February 28, 1997
<TABLE>
<S> <C>
AAA.................. 39.2%
AA................... 4.6%
A.................... 8.5%
BBB.................. 39.7%
BB................... 1.6%
Non-Rated............ 6.4%
</TABLE>
Based upon credit quality ratings issued by Standard & Poor's. For securities
not rated by Standard & Poor's, the Moody's rating is used.
- - Rather than focusing on market timing, we attempt to identify securities
that we believe will outperform within a sector and which can be acquired at
an attractive price. This "bottom-up" approach to security selection, aided
by our research team, provides significant added value to the portfolio.
- - We invested in bonds in the 10- to 20-year range of the yield curve, seeking
to capture the maximum yield with less volatility. Yields on securities in
this maturity range were almost 90 percent of yields on securities maturing
in 30 years--about two-thirds of the longer maturity securities.
- - We adjusted the Trust's duration to seek to manage volatility. Duration,
which is expressed in years, is a measurement of the portfolio's volatility
to interest rate movements. Portfolios with shorter durations have tended to
perform better when interest rates are rising. At the end of the period, the
Trust's duration stood at 7.00 years, comparatively shorter than the Lehman
Brothers New York Municipal Bond Index benchmark of 7.69 years. While the
shorter duration added to the Trust's performance in the first half of 1996,
it prevented the Trust from taking full advantage of the decline in interest
rates during the latter half.
Continued on page three
2
<PAGE> 4
[BAR GRAPH]
Six-month Dividend History
For the Period Ended February 28, 1997
<TABLE>
<S> <C>
Sep 1996 .................. $.0875
Oct 1996 .................. $.0875
Nov 1996 .................. $.0875
Dec 1996 .................. $.0825
Jan 1997 .................. $.0825
Feb 1997 .................. $.0825
</TABLE>
The dividend history represents past performance of the Trust and does not
predict the Trust's future distributions.
PERFORMANCE SUMMARY
For the six-month period ended February 28, 1997, the Van Kampen American
Capital New York Quality Municipal Trust generated a total return at market
price of -1.48 percent(1), including reinvestment of income dividends totaling
$0.51 per share. Despite a dividend reduction in December 1996, the Trust
offered a tax-exempt distribution rate of 6.29 percent(3), based on the closing
common stock price of $15.75 per share on February 28, 1997. Because income from
the Trust is exempt from federal and state income tax, this distribution rate
represents a yield equivalent to taxable investment earning 10.59 percent(4)
(for New York investors in the 40.6 percent combined federal and state income
tax bracket).
TOP 5 PORTFOLIO INDUSTRY HOLDINGS BY SECTOR
AS OF
FEBRUARY 28, 1997
General Purpose......................................... 27%
Education............................................... 14%
Utilities............................................... 13%
Public Building......................................... 11%
Transportation.......................................... 10%
MUNICIPAL MARKET OUTLOOK
New York's improved economic picture is largely tied to the continued strong
securities market, and is somewhat susceptible to rising interest rates or
changing prospects for equities. We believe the supply and demand for municipal
bonds within the state will be consistent with 1996 levels.
Continued on page four
3
<PAGE> 5
Nationwide, we continue to see signs of a strengthening economy. As a
result, we believe it is more likely that interest rates will rise rather than
decline, although we do not expect to see a drastic move in either direction. We
are, however, maintaining a slightly defensive posture with the Trust by
maintaining a relatively short duration in the event of an increase in interest
rates.
Relatively stable interest rates are favorable for the leveraged structure
of our closed-end funds, which involves borrowing short-term funds to purchase
long-term municipal securities. The leveraged capital structure of the Trust has
continued to provide common shareholders with above-market levels of dividend
income. It should be noted, however, that a significant rise in short-term
interest rates would have an unfavorable effect on the dividend paying ability
of the common shares and would also negatively impact the price.
We believe the Trust is positioned to perform well in the coming months, and
do not anticipate major changes in the portfolio's characteristics. We will
continue to seek to balance the Trust's total return and dividend income. At the
same time, we seek to manage the volatility of the Trust by adjusting the
duration when necessary, and to continue to add value through security
selection. Thank you for your confidence in Van Kampen American Capital and in
your Trust's management team.
Sincerely,
[SIG]
Don G. Powell
Chairman
Van Kampen American Capital
Investment Advisory Corp.
[SIG]
Dennis J. McDonnell
President
Van Kampen American Capital
Investment Advisory Corp.
Please see footnotes on page five
4
<PAGE> 6
PERFORMANCE RESULTS FOR THE PERIOD ENDED FEBRUARY 28, 1997
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)............ (1.48%)
Six-month total return based on NAV(2)..................... 5.62%
DISTRIBUTION RATES
Distribution rate as a % of closing common stock price(3).. 6.29%
Taxable-equivalent distribution rate as a % of closing
common stock price(4)..................................... 10.59%
SHARE VALUATIONS
Net asset value............................................ $ 16.54
Closing common stock price................................. $15.750
One-year high common stock price (11/06/96)................ $16.750
One-year low common stock price (01/27/97)................. $15.250
Preferred share rate(5).................................... 3.39%
</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 common 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 40.6%
combined federal and state income tax bracket, which takes into consideration
the deductibility of individual state taxes paid.
(5)See "Notes to Financial Statements" footnote #5, 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.
Market forecasts provided in this report may not necessarily come to pass.
5
<PAGE> 7
PORTFOLIO OF INVESTMENTS
February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS
NEW YORK 91.3%
$ 3,275 Broome Cnty, NY Ctfs Partn Pub Safety Fac
(MBIA Insd).................................. 5.250% 04/01/22 $ 3,052,529
1,345 Buffalo, NY Ser B (AMBAC Insd)............... 5.375 02/01/13 1,329,358
2,000 Erie Cnty, NY Ser B (FGIC Insd).............. 5.625 06/15/20 1,976,780
3,000 Grand Cent Dist Mgmt Assn Inc NY Business
Impt Dist Cap Impt (Prerefunded @
01/01/02).................................... 6.500 01/01/22 3,319,740
2,500 Herkimer Cnty, NY Indl Dev Agy Indl Dev Rev
Burrows Paper Corp Recycling................. 8.000 01/01/09 2,465,650
4,000 Monroe Cnty, NY Arpt Auth Rev Greater
Rochester Intl (MBIA Insd)................... 7.250 01/01/09 4,345,400
1,400 Monroe Cnty, NY Indl Dev Agy Rev Pub Impt
Canal Ponds Park Ser A....................... 7.000 06/15/13 1,501,976
128 Municipal Assist Corp Troy NY Cap Apprec Ser
C (MBIA Insd)................................ * 07/15/21 32,544
195 Municipal Assist Corp Troy NY Cap Apprec Ser
C (MBIA Insd)................................ * 01/15/22 47,910
2,000 Nassau Cnty, NY Genl Impt Ser Q (FGIC
Insd)........................................ 5.200 08/01/13 1,974,500
1,000 New York City Indl Dev Agy Spl Fac Rev 1990
AMR/American Airls Inc....................... 7.750 07/01/19 1,062,510
1,000 New York City Indl Dev Agy Spl Fac Rev
Terminal One Group Assn Proj................. 6.000 01/01/15 1,000,240
1,500 New York City Indl Dev Agy Spl Fac Rev
Terminal One Group Assn Proj................. 6.000 01/01/19 1,495,335
5,000 New York City Muni Wtr Fin Auth Wtr & Swr Sys
Rev Ser F (AMBAC Insd)....................... 5.500 06/15/12 4,994,450
180 New York City Ser A.......................... 7.750 08/15/06 200,333
2,660 New York City Ser A (Prerefunded @
08/15/01).................................... 7.750 08/15/06 3,052,137
10,000 New York City Ser B (Embedded Cap) (b)....... 6.600 10/01/16 10,362,000
4,450 New York City Ser C Subser C1................ 7.500 08/01/20 4,961,928
550 New York City Ser C Subser C1 (Prerefunded @
08/01/02).................................... 7.500 08/01/20 636,680
2,750 New York City Ser D.......................... 6.500 02/15/06 2,954,242
240 New York City Ser F.......................... 8.250 11/15/16 273,106
2,760 New York City Ser F (Prerefunded @
11/15/01).................................... 8.250 11/15/16 3,238,777
2,500 New York St Dorm Auth Rev City Univ Sys 3rd
Genl Res Ser 2............................... 6.000 07/01/20 2,488,875
1,625 New York St Dorm Auth Rev City Univ Sys Cons
Ser A........................................ 5.625 07/01/16 1,600,397
2,000 New York St Dorm Auth Rev City Univ Sys Cons
Ser A (Prerefunded @ 07/01/00)............... 7.625 07/01/20 2,246,480
2,075 New York St Dorm Auth Rev Genessee Valley Ser
B (FHA Gtd).................................. 6.900 02/01/32 2,239,361
1,000 New York St Dorm Auth Rev Lib Fac Svc
Contract (CapMac Insd)....................... 5.250 07/01/19 936,870
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................ * 07/01/06 627,570
905 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................ * 07/01/07 534,900
</TABLE>
See Notes to Financial Statements
6
<PAGE> 8
PORTFOLIO OF INVESTMENTS (CONTINUED)
February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ----------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)......................................... * 07/01/08 $ 555,570
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)......................................... * 07/01/09 521,210
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)......................................... * 07/01/10 488,020
1,500 New York St Dorm Auth Rev St Univ Edl Fac..... 5.750% 05/15/10 1,510,950
2,000 New York St Dorm Auth Rev Upstate Cmnty
Colleges Ser B (Prerefunded @ 07/01/01)....... 7.375 07/01/11 2,262,800
2,000 New York St Dorm Auth Rev Upstate Cmnty
Colleges Ser B (Prerefunded @ 07/01/01)....... 7.200 07/01/21 2,252,680
1,725 New York St Dorm Auth Revs Dept Hlth Vets
Home.......................................... 5.500 07/01/11 1,688,050
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 3,520,930
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 1,203,096
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 1,868,265
3,000 New York St Energy Resh & Dev Auth Gas Fac Rev
Brooklyn Union Gas Ser C (MBIA Insd).......... 5.600 06/01/25 2,850,990
4,000 New York St Energy Resh & Dev Auth Pollutn Ctl
Rev Niagara Mohawk Pwr Rfdg (FGIC Insd)....... 6.625 10/01/13 4,397,440
2,000 New York St Environmental Fac Corp Solid Waste
Disp Rev Occidental Petroleum Corp Proj....... 6.100 11/01/30 1,993,820
3,215 New York St Environmental Fac Corp St Wtr
Pollutn Ctl Rev Ser E......................... 6.600 06/15/09 3,544,055
2,220 New York St Hsg Fin Agy Rev Newburgh
Interfaith Hsg Ser A.......................... 7.050 11/01/12 2,341,434
1,500 New York St Loc Govt Assistance Corp Ser D
(Prerefunded @ 04/01/02)...................... 7.000 04/01/18 1,699,035
185 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser C........................... 7.300 02/15/21 203,121
565 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser C (Prerefunded @
08/15/01)..................................... 7.300 02/15/21 640,908
750 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser D........................... 7.400 02/15/18 824,153
1,700 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser D (Prerefunded @ 02/15/02).. 7.400 02/15/18 1,944,766
2,000 New York St Med Care Fac Fin Agy Rev
Presbyterian Hosp Ser A Rfdg (FHA Gtd)........ 5.375 02/15/25 1,908,260
1,000 New York St Muni Bond Bk Agy Spl Pgm Rev
Buffalo Ser A................................. 6.875 03/15/06 1,073,380
3,000 New York St Muni Bond Bk Agy Spl Pgm Rev
Rochester Ser A............................... 6.750 03/15/11 3,231,660
2,000 New York St Urban Dev Corp Rev Correctional
Cap Fac Rfdg.................................. 5.625 01/01/07 2,029,580
5,000 New York St Urban Dev Corp Rev Correctional
Cap Fac Ser 3 (Prerefunded @ 01/01/02)........ 7.000 01/01/21 5,638,450
</TABLE>
See Notes to Financial Statements
7
<PAGE> 9
PORTFOLIO OF INVESTMENTS (CONTINUED)
February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ----------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 1,500 New York St Urban Dev Corp Rev Correctional
Cap Fac Ser 4................................. 5.375% 01/01/23 $ 1,363,845
1,115 New York St Urban Dev Corp Rev Proj Pine
Barrens....................................... 5.375 04/01/17 1,048,434
1,500 Niagara Falls, NY Brdg Comm Toll Rev Ser B
Rfdg (FGIC Insd).............................. 5.250 10/01/21 1,395,315
2,500 Port Auth NY & NJ Cons Ser 77................. 6.250 01/15/27 2,602,100
1,000 Port Auth NY & NJ Delta Airls Inc Proj Ser
1R............................................ 6.950 06/01/08 1,067,900
1,380 Upper Mohawk Vly Reg Wtr Fin NY Ser A (FSA
Insd)......................................... 5.125 12/01/16 1,304,900
1,930 Yonkers, NY Ser A (FGIC Insd)................. 6.500 02/15/07 2,120,491
400 Yonkers, NY Ser A (FGIC Insd)................. 6.500 02/15/12 436,680
------------
126,484,866
------------
GUAM 3.0%
2,000 Guam Arpt Auth Rev Ser B...................... 6.400 10/01/05 2,064,460
1,000 Guam Arpt Auth Rev Ser B...................... 6.700 10/01/23 1,035,200
1,000 Guam Pwr Auth Rev Ser A....................... 6.625 10/01/14 1,043,160
------------
4,142,820
------------
PUERTO RICO 3.0%
1,000 Centro De Recaudaciones De Ingresos Muni Ctfs
Partn PR...................................... 6.850 10/17/03 1,026,630
3,122 Puerto Rico Comwlth Dept of Hlth Lease Purch
Ctfs.......................................... 7.250 04/07/01 3,123,790
------------
4,150,420
------------
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 2,166,220
------------
TOTAL LONG-TERM INVESTMENTS 98.9%
(Cost $127,318,855) (a)................................................... 136,944,326
OTHER ASSETS IN EXCESS OF LIABILITIES 1.1%................................. 1,571,735
------------
NET ASSETS 100.0%.......................................................... $138,516,061
============
</TABLE>
* Zero coupon bond
(a) At February 28, 1997, for federal income tax purposes, cost is $127,323,422;
the aggregate gross unrealized appreciation is $9,685,414 and the aggregate
gross unrealized depreciation is $64,510, resulting in net unrealized
appreciation of $9,620,904.
(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
8
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments, at Market Value (Cost $127,318,855) (Note 1)... $136,944,326
Interest Receivable......................................... 2,010,296
Cash........................................................ 9,034
Other....................................................... 3,567
------------
Total Assets............................................ 138,967,223
------------
LIABILITIES:
Payables:
Income Distributions - Common and Preferred Shares........ 164,382
Investment Advisory Fee (Note 2).......................... 74,489
Administrative Fee (Note 2)............................... 21,283
Affiliates (Note 2)....................................... 1,724
Accrued Expenses............................................ 131,725
Deferred Compensation and Retirement Plans (Note 2)......... 57,559
------------
Total Liabilities....................................... 451,162
------------
NET ASSETS.................................................. $138,516,061
============
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000
shares, 900 issued with liquidation preference of $50,000
per share) (Note 5)....................................... $ 45,000,000
------------
Common Shares ($.01 par value with an unlimited number of
shares authorized, 5,655,638 shares issued and
outstanding) (Note 3)..................................... 56,556
Paid in Surplus (Note 3).................................... 83,580,007
Net Unrealized Appreciation on Investments.................. 9,625,471
Accumulated Undistributed Net Investment Income............. 343,194
Accumulated Net Realized Loss on Investments................ (89,167)
------------
Net Assets Applicable to Common Shares.................. 93,516,061
------------
NET ASSETS.................................................. $138,516,061
============
NET ASSET VALUE PER COMMON SHARE
($93,516,061 divided by 5,655,638 shares outstanding)..... $ 16.54
============
</TABLE>
See Notes to Financial Statements
9
<PAGE> 11
STATEMENT OF OPERATIONS
For the Six Months Ended February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $4,227,937
----------
EXPENSES:
Investment Advisory Fee (Note 2)............................ 478,970
Administrative Fee (Note 2)................................. 136,849
Preferred Share Maintenance (Note 5)........................ 61,378
Custody Expenses............................................ 23,721
Trustees Fees and Expenses (Note 2)......................... 13,166
Legal (Note 2).............................................. 10,790
Amortization of Organizational Expenses (Note 1)............ 428
Other....................................................... 78,927
----------
Total Expenses.......................................... 804,229
----------
NET INVESTMENT INCOME....................................... $3,423,708
==========
REALIZED AND UNREALIZED GAIN/LOSS ON INVESTMENTS:
Net Realized Gain on Investments (Including reorganization
costs of $4,567).......................................... $ 8,723
----------
Unrealized Appreciation/Depreciation on Investments:
Beginning of the Period................................... 7,215,811
End of the Period......................................... 9,625,471
----------
Net Unrealized Appreciation on Investments During the
Period.................................................... 2,409,660
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS............. $2,418,383
==========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $5,842,091
==========
</TABLE>
See Notes to Financial Statements
10
<PAGE> 12
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended February 28, 1997 and
the Year Ended August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 28, 1997 August 31, 1996
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income.................................. $ 3,423,708 $ 7,026,896
Net Realized Gain on Investments....................... 8,723 266,232
Net Unrealized Appreciation/Depreciation on Investments
During the Period.................................... 2,409,660 (1,542,531)
------------ ------------
Change in Net Assets from Operations................... 5,842,091 5,750,597
------------ ------------
Distributions from Net Investment Income:
Common Shares........................................ (2,883,138) (5,925,408)
Preferred Shares..................................... (775,053) (1,633,939)
------------ ------------
(3,658,191) (7,559,347)
------------ ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES.... 2,183,900 (1,808,750)
FROM CAPITAL TRANSACTIONS (NOTE 3):
Value of Common Shares Issued Through Dividend
Reinvestment......................................... 132,181 66,182
------------ ------------
TOTAL INCREASE/DECREASE IN NET ASSETS.................. 2,316,081 (1,742,568)
NET ASSETS:
Beginning of the Period................................ 136,199,980 137,942,548
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $343,194 and $577,677,
respectively)........................................ $138,516,061 $136,199,980
============ ============
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
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
(Commencement
Six Months of Investment
Ended Year Ended August 31 Operations) to
February 28, ------------------------------------- August 31,
1997 1996 1995 1994 1993 1992
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of the Period
(a)....................... $16.148 $16.469 $16.633 $17.958 $16.303 $14.777
------- ------- ------- ------- ------- -------
Net Investment Income..... .606 1.245 1.243 1.302 1.307 1.068
Net Realized and
Unrealized Gain/Loss on
Investments............. .428 (.226) .168 (1.163) 1.640 1.400
------- ------- ------- ------- ------- -------
Total from Investment
Operations................ 1.034 1.019 1.411 .139 2.947 2.468
------- ------- ------- ------- ------- -------
Less:
Distributions from Net
Investment Income:
Paid to Common
Shareholders.......... .510 1.050 1.050 1.050 1.007 .743
Common Share Equivalent
of Distributions Paid
to Preferred
Shareholders.......... .137 .290 .267 .211 .195 .199
Distributions from and in
Excess of Net Realized
Gain on Investments:
Paid to Common
Shareholders.......... -0- -0- .216 .177 .071 -0-
Common Share Equivalent
of Distributions Paid
to Preferred
Shareholders.......... -0- -0- .042 .026 .019 -0-
------- ------- ------- ------- ------- -------
Total Distributions......... .647 1.340 1.575 1.464 1.292 .942
------- ------- ------- ------- ------- -------
Net Asset Value, End of the
Period.................... $16.535 $16.148 $16.469 $16.633 $17.958 $16.303
======= ======= ======= ======= ======= =======
Market Price Per Share at
End of the Period......... $15.750 $16.500 $15.500 $15.375 $17.250 $15.625
Total Investment Return at
Market Price (b).......... (1.48%)* 13.62% 9.73% (4.08%) 17.94% 9.39%*
Total Return at Net Asset
Value (c)................. 5.62%* 4.45% 7.29% (.67%) 17.42% 14.00%*
Net Assets at End of the
Period (In millions)...... $138.5 $136.2 $137.9 $138.9 $146.3 $137.0
Ratio of Expenses to Average
Net Assets Applicable to
Common Shares............. 1.73% 1.74% 1.76% 1.66% 1.66% 1.67%
Ratio of Expenses to Average
Net Assets................ 1.17% 1.18% 1.17% 1.14% 1.13% 1.17%
Ratio of Net Investment
Income to Average Net
Assets Applicable to
Common Shares (d)......... 5.69% 5.77% 6.08% 6.31% 6.58% 6.27%
Portfolio Turnover.......... 9%* 23% 50% 21% 25% 65%*
</TABLE>
(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.
* Non-Annualized
See Notes to Financial Statements
12
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS
February 28, 1997 (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 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 60 days or less 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 28, 1997, there were no
when issued or delayed delivery purchase commitments.
13
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
February 28, 1997 (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 were amortized on a straight line basis over the
60-month period ending September 26, 1996.
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.
The Trust intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At August 31, 1996, the Trust had an accumulated capital loss
carryforward for tax purposes of $97,890. This amount will expire on August 31,
2004. Net realized gains or losses may differ for financial and tax reporting
purposes primarily as a result of post October 31 losses which are not
recognized for tax purposes until the first day of the following fiscal year.
F. DISTRIBUTION OF INCOME AND GAINS--The Trust declares and pays dividends from
net investment income to common shareholders monthly. 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, Van Kampen
American Capital Investment Advisory Corp. (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
14
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------
reporting responsibilities with respect to the Trust's portfolio and preferred
shares and providing certain services to shareholders.
Certain legal expenses are paid to Skadden, Arps, Slate, Meagher & Flom
(Illinois), counsel to the Trust, of which a trustee of the Trust is an
affiliated person.
For the six months ended February 28, 1997, the Trust recognized expenses of
approximately $14,600 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.
3. CAPITAL TRANSACTIONS
At February 28, 1997 and August 31, 1996, paid in surplus related to common
shares aggregated $83,580,007 and $83,447,906, respectively.
Transactions in common shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
FEBRUARY 28, 1997 AUGUST 31, 1996
- --------------------------------------------------------------------------------
<S> <C> <C>
Beginning Shares........................ 5,647,596 5,643,496
Shares Issued Through Dividend
Reinvestment.......................... 8,042 4,100
--------- ---------
Ending Shares........................... 5,655,638 5,647,596
========= =========
</TABLE>
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sale of investments,
excluding short-term investments, were $12,717,291 and $14,893,016,
respectively.
5. 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 28, 1997, was 3.390%. During the six months
ended February 28, 1997, the rates ranged from 3.350% to 3.900%.
15
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
February 28, 1997 (Unaudited)
- --------------------------------------------------------------------------------
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.
16
<PAGE> 18
VAN KAMPEN AMERICAN CAPITAL NEW YORK QUALITY MUNICIPAL TRUST
BOARD OF TRUSTEES
DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
DENNIS J. MCDONNELL* - Chairman
THEODORE A. MYERS
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN*
OFFICERS
DENNIS J. MCDONNELL*
President
RONALD A. NYBERG*
Vice President and Secretary
EDWARD C. WOOD, III*
Vice President and Chief Financial Officer
CURTIS W. MORELL*
Vice President and Chief Accounting Officer
JOHN L. SULLIVAN*
Treasurer
TANYA M. LODEN*
Controller
PETER W. HEGEL*
Vice President
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 (ILLINOIS)
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT ACCOUNTANTS
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., 1997
All rights reserved.
SM denotes a service mark of
Van Kampen American Capital Distributors, Inc.
RESULTS OF SHAREHOLDER VOTES
A Special Meeting of Shareholders of the Trust was held on October 23,
1996, where shareholders voted on a new investment advisory agreement and
changes to investment policies. With regard to the approval of a new investment
advisory agreement between Van Kampen American Capital Investment Advisory Corp.
and the Trust, 4,178,357 shares voted for the proposal, 92,953 shares voted
against, 111,073 shares abstained and 744,426 shares represented broker
non-votes. With regard to the approval of certain changes to the Trust's
fundamental investment policies with respect to investments in other investment
companies, 1,900,529 shares voted for the proposal, 136,659 shares voted
against, 110,339 shares abstained and 2,979,282 shares represented broker
non-votes.
17
