<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Glossary of Terms................................ 5
Performance Results.............................. 7
Portfolio of Investments......................... 8
Statement of Assets and Liabilities.............. 11
Statement of Operations.......................... 12
Statement of Changes in Net Assets............... 13
Financial Highlights............................. 14
Notes to Financial Statements.................... 15
Report of Independent Accountants................ 19
Dividend Reinvestment Plan....................... 20
</TABLE>
VNM ANR 10/98
<PAGE> 2
LETTER TO SHAREHOLDERS
September 21, 1998
Dear Shareholder,
Recently, we decided to consolidate
all Van Kampen American Capital funds
under the single name of Van Kampen
Funds. This move accompanies the change
in the legal name of our firm to Van
Kampen Funds Inc. Consequently, your
Trust's name was changed to Van Kampen [PHOTO]
New York Quality Municipal Trust on
August 28. You can be assured that the
change in your Trust's name will not
affect its management or daily
operations, and your Trust will DENNIS J. MCDONNELL AND DON G. POWELL
continue to trade under its current
ticker symbol. If you have any questions regarding your investment or our new
name, please contact your financial adviser.
ECONOMIC OVERVIEW
The economy grew at a moderate rate for much of the past year, accompanied
by low inflation. During the three quarters that ended June 30, growth
accelerated at a 3.4 percent annual rate, while consumer prices rose 1.4
percent.
Beneath this tranquil scenario, however, lay periods of economic and
financial volatility. During the first quarter, for example, growth surged at a
5.5 percent annual rate, fueled by heavy consumer spending and business
inventory buildup. By the second quarter, growth had slowed to a sluggish 1.6
percent annual pace, due to the deepening Asian economic crisis and the General
Motors strike.
Despite the weakening economy, the dollar rallied as foreign investors
sought refuge from global turmoil by purchasing U.S. Treasury securities. The
strong dollar raised the price of U.S. exports and cut the price of imports. As
a result, U.S. companies found they could neither maintain their foreign sales
nor compete easily with cheap imports here. Corporate earnings fell, and U.S.
stock prices retreated. By August 31, the Dow Jones Industrial Average was down
19 percent from its mid-July high.
In New York, economic growth continued to be driven by the booming economy
in New York City, where financial services and tourism thrived. As a result of
this economic strength, Standard & Poor's Ratings Group upgraded the city's
general obligation bonds from BBB+ to A-. The state ended its fiscal year with a
larger-than-expected $2.17 billion surplus due to strong revenue growth and
spending restraint. Looking ahead, however, tax cuts and increased school aid
could lead to future budget gaps.
Continued on page 2
1
<PAGE> 3
MARKET OVERVIEW
The stock market rout and foreign economic turmoil were nothing but good
news for bonds. The Federal Reserve refrained from raising interest rates to
avoid aggravating Asia's crisis, and investors worldwide aggressively bought
U.S. Treasury securities. Because these purchases occurred at a time when the
supply of new Treasury issues was declining, Treasury bond prices rocketed to
record levels. On August 31, the Dow Jones Industrial Average fell 512 points,
and the 30-year Treasury bond yield, which moves in the opposite direction of
its price, fell to a record low of 5.25 percent. A year earlier, its yield was
6.61 percent.
Municipal bonds followed the gains in Treasuries but, true to form, they
didn't rally as strongly. While long-term Treasury bond yields fell 136 basis
points during the past year, the yield of the AAA-rated general obligation
municipal bond fell only 44 basis points to 4.86 percent on August 31, 1998,
from 5.30 percent a year earlier.
Municipal bonds were hampered by an excess of supply relative to demand.
State and local governments, taking advantage of the market's low interest
rates, issued $190 billion worth of bonds during the first seven months of this
year--47 percent more than they had issued during the comparable period last
year. Among the new issues was a record $3.4 billion offering from the new Long
Island Power Authority, which was part of a larger $7.2 billion issue.
Despite an abundant supply from which to choose, U.S. investors were
reluctant to purchase municipal bonds because of their relatively low yields,
and foreign investors had even less interest because they had no need for the
tax-exempt income. Compounding the situation was the flood of insured issues,
which accounted for almost 60 percent of the new supply. As a result, fewer
lower-rated, higher-yielding bonds were issued, and the yield spread between
higher-rated and lower-rated bonds narrowed.
[CREDIT QUALITY PIE CHART]
PORTFOLIO COMPOSITION BY CREDIT QUALITY
AS OF AUGUST 31, 1998
<TABLE>
<S> <C>
AAA........... 53.6%
AA............ 6.1%
A............. 20.1%
BBB........... 18.0%
Non-Rated..... 2.2%
</TABLE>
*As a Percentage of Long-Term Investments
Based upon the highest credit ratings as issued by Standard & Poor's or Moody's.
Continued on page 3
2
<PAGE> 4
TRUST STRATEGY
We used the following strategies to manage the Trust during the period:
We sold a $2.5 million position in a recycling issue whose credit quality
had deteriorated and used the proceeds to purchase a small position in Long
Island Power Authority's $7.2 billion offering. The LIPA purchase is a long-term
security that will help to enhance the call protection of the Trust. Because it
was priced at a slight discount to its face value, it will also provide
potential price appreciation and help to extend the duration of the Trust.
Discount bonds tend to have longer durations than other bonds, which means
they are more sensitive to changing interest rates. Our purchase of the LIPA
bond will help to offset some of the decline in the Trust's duration due to
prerefundings. As of August 31, the duration of the Trust stood at 5.07 years,
compared with 7.65 years for the Lehman Brothers Municipal Bond Index (excluding
bonds maturing in five years or less).
Approximately one-third of the Trust's securities have been refunded and
will be called between 2000 and 2004. Like most bonds in the portfolio, they
were purchased when the Trust was created in 1991, a time of significantly
higher interest rates. They were not replaced because their yields are
substantially higher than the current market yields.
During the reporting period, the credit quality of several bonds in the
Trust's portfolio was upgraded from BBB+ to A-, as a result of Standard & Poor's
rating increase for New York City general obligation debt. Those bonds comprise
approximately 20 percent of the portfolio.
TOP FIVE PORTFOLIO INDUSTRY HOLDINGS BY SECTOR*
<TABLE>
<CAPTION>
AS OF
AUGUST 31, 1998
<S> <C>
General Purpose.......................................... 28.0%
Higher Education......................................... 13.6%
Industrial Revenue....................................... 9.3%
Retail Electric/Gas/Telephone............................ 9.0%
Transportation........................................... 8.2%
</TABLE>
*As a Percentage of Long-Term Investments
PERFORMANCE SUMMARY
For the 12-month period ended August 31, 1998, the Trust generated a total
return of 9.94 percent(1) at market price. This reflects a gain in market price
per common share from $16.125 on August 31, 1997, to $16.75 on August 31, 1998,
plus reinvestment of all dividends. The Trust had a tax-exempt distribution rate
of 5.55 percent(3), based on the closing price of its common shares. Because
income from the Trust is exempt from federal and state income taxes, this
distribution rate is equivalent to a yield of 9.31 percent(4) on a taxable
investment (for investors in the combined federal and state income tax bracket
of 40.4 percent). Please refer to the chart on page 7 for additional performance
numbers.
Continued on page 4
3
<PAGE> 5
[DIVIDEND HISTORY GRAPH]
Twelve Month Dividend History
For the Period Ended August 31, 1998
<TABLE>
<CAPTION>
Distribution per Common Share
<S> <C>
Sep 1997 $ .0775
Oct 1997 .0775
Nov 1997 .0775
Dec 1997 .0775
Jan 1998 .0775
Feb 1998 .0775
Mar 1998 .0775
Apr 1998 .0775
May 1998 .0775
Jun 1998 .0775
Jul 1998 .0775
Aug 1998 .0775
</TABLE>
The dividend history represents past performance of the Trust and does not
predict the Trust's future distributions.
ECONOMIC OUTLOOK
We believe the economy will rebound later this year, provided some stability
is restored in the stock market. Domestic economic activity remains strong
despite the market's decline and should overcome many of the negative effects of
the global economic crisis. In Asia, where the crisis began, there are signs of
potential rebounds. If the economic crisis in Asia, Russia, and other emerging
markets continues unabated, however, we believe the Fed will refrain from
raising rates and could even lower them. Fed Chairman Alan Greenspan
acknowledged as much in a recent speech, when he disclosed that Fed
policy-makers had abandoned their bias toward a rate hike in favor of a neutral
position. Due to events overseas, policy-makers are now more concerned about an
economic slowdown than about rising inflation, Greenspan indicated. The impact
of slower economic growth abroad should help to offset any acceleration in
domestic inflation.
We will closely monitor these global and domestic events and their effects
on the performance of the Trust, adjusting the portfolio when appropriate. We
remain committed to providing a high level of tax-exempt income while preserving
shareholders' capital. Thank you for your continued support and confidence in
Van Kampen and the management of your Trust.
Sincerely,
[SIG]
Don G. Powell
Chairman
Van Kampen Investment Advisory Corp.
[SIG]
Dennis J. McDonnell
President
Van Kampen Investment Advisory Corp.
Please see footnotes on page 7
4
<PAGE> 6
GLOSSARY OF TERMS
BASIS POINT: A measure used in quoting bond yields. One hundred basis points is
equal to 1 percent. For example, if a bond's yield changes from 7.00 to 6.65
percent, it is a 35 basis-point move.
CALL FEATURE: Allows the issuer to buy back a bond on specific call dates before
maturity. Call dates and prices are set when the bond is issued. To compensate
the bondholder for loss of income and ownership, the initial call price is
usually higher than the face value of the bond. Bonds are usually called when
interest rates drop so significantly that the issuer can save money by issuing
new bonds at lower rates.
A callable bond is "priced to call" when it is selling at a premium,
because it is assumed that the issuer will redeem the bond at its call date,
rather than at maturity.
CREDIT RATING: An evaluation of an issuer's credit history and capability of
repaying obligations. Standard & Poor's and Moody's Investors Service are two
companies that assign bond ratings. Standard & Poor's ratings range from a high
of AAA to a low of D, while Moody's ratings range from a high of Aaa to a low of
C.
CREDIT SPREAD: Also called quality spread, the difference in yield between
higher-quality issues (such as Treasury securities) and lower-quality issues.
Normally, lower-quality issues provide higher yields to compensate investors for
the additional credit risk.
DISCOUNT BOND: A bond whose market price is lower than its face value (or "par
value"). Because bonds usually mature at face value, a discount bond has more
potential to appreciate in price than a par bond does.
DURATION: A measure of the sensitivity of a bond's price to changes in interest
rates, expressed in years. Each year of duration represents an expected 1
percent change in the price of a bond for every 1 percent change in interest
rates. The longer a fund's duration, the greater the effect of interest rate
movements on net asset value. Typically, funds with shorter durations have
performed better in rising rate environments, while funds with longer durations
have performed better when rates decline.
FEDERAL RESERVE BOARD (THE FED): The governing body of the Federal Reserve
System, which is the central bank system of the United States. Its policy-making
committee, called the Federal Open Market Committee, meets eight times a year to
establish monetary policy and monitor the economic pulse of the United States.
GENERAL OBLIGATION BONDS: Bonds backed by the full faith and credit (taxing
authority) of the issuer for timely payment of interest and principal. These
bonds are issued to finance essential government projects, such as highways and
schools.
5
<PAGE> 7
INFLATION: A persistent and measurable rise in the general level of prices.
Inflation is widely measured by the Consumer Price Index, an economic indicator
that measures the change in the cost of purchased goods and services.
INSURED BOND: A bond that is insured against default by the municipal bond
insurer. If the issuer defaults, the insurance company will step in and take
over payments of interest and principal. As a result of this protection against
credit risk, most insured bonds are AAA-rated. Recently, an A-rated insurer has
started to insure lower-quality municipal bonds, and those bonds are A-rated.
MARKET PRICE: The price of a share of a closed-end fund trading on a stock
exchange. When the price is less than a fund's net asset value, the fund is
trading at a discount. When the price is more than the NAV, the fund is trading
at a premium.
MUNICIPAL BOND: A debt security issued by a state, municipality, or other
government entity to finance capital expenditures such as the construction of
highways, public works, or school buildings. Interest on municipal bonds is
exempt from federal taxation and, potentially, from state and local taxation.
NET ASSET VALUE (NAV): The value of a mutual fund share, calculated by deducting
a fund's liabilities from its total assets and dividing this amount by the
number of shares outstanding.
PREREFUNDING: A process whereby new bonds are issued to refinance an outstanding
bond issue. This typically occurs when interest rates decline and an issuer
replaces its higher-yielding bonds with current lower-yielding issues.
PREMIUM BOND: A bond whose market price is above its face value (or "par
value"). Because bonds usually mature at face value, a premium bond has less
potential to appreciate in price than a par bond does.
6
<PAGE> 8
PERFORMANCE RESULTS FOR THE PERIOD ENDED AUGUST 31, 1998
VAN KAMPEN NEW YORK QUALITY MUNICIPAL TRUST
(NYSE TICKER SYMBOL--VNM)
COMMON SHARE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C>
One-year total return based on market price(1)............. 9.94%
One-year total return based on NAV(2)...................... 9.07%
DISTRIBUTION RATES
Distribution rate as a % of closing common stock
price(3).................................................. 5.55%
Taxable-equivalent distribution rate as a % of closing
common stock price(4)..................................... 9.31%
SHARE VALUATIONS
Net asset value........................................... $ 17.39
Closing common stock price................................ $ 16.750
One-year high common stock price (01/21/98)............... $ 17.000
One-year low common stock price (04/29/98)................ $15.5625
Preferred share rate(5)................................... 3.40%
</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 40.4%
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.
On August 20, 1998, the Trust's Board of Trustees voted to change the
Trust's fiscal year end from August 31 to October 31, effective at the close
of the August 31, 1998 fiscal year. As a result, the next fiscal year will
commence on September 1, 1998 and end on October 31, 1998; however, you will
not receive an annual report for the two-month transition period from August
31, 1998 to October 31, 1998. Instead, the financial information for those two
months will appear in a separate column in the April 30, 1999 semiannual
report. If you would like to receive the audited financial statements for this
two-month period, please contact our Investor Services Department at
1-800-341-2929.
7
<PAGE> 9
PORTFOLIO OF INVESTMENTS
August 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS 98.3%
NEW YORK 93.0%
$ 2,000 Erie Cnty, NY Ser B (FGIC Insd)................. 5.625% 06/15/20 $ 2,113,240
3,000 Grand Cent Dist Mgmt Assn Inc NY Business Impt
Dist Cap Impt (Prerefunded @ 01/01/02).......... 6.500 01/01/22 3,304,590
4,000 Long Island Pwr Auth NY Elec Sys Rev Genl Ser
A............................................... 5.500 12/01/29 4,112,360
4,000 Monroe Cnty, NY Arpt Auth Rev Greater Rochester
Intl (MBIA Insd)................................ 7.250 01/01/09 4,241,120
1,400 Monroe Cnty, NY Indl Dev Agy Rev Pub Impt Canal
Ponds Park Ser A................................ 7.000 06/15/13 1,541,876
2,000 Nassau Cnty, NY Genl Impt Ser Q (FGIC Insd)..... 5.200 08/01/13 2,104,100
1,000 New York City Indl Dev Agy Spl Fac Rev 1990
AMR/American Airls Inc.......................... 7.750 07/01/19 1,032,380
1,000 New York City Indl Dev Agy Spl Fac Rev Terminal
One Group Assn Proj............................. 6.000 01/01/15 1,068,150
5,000 New York City Muni Wtr Fin Auth Wtr & Swr Sys
Rev Ser F (AMBAC Insd).......................... 5.500 06/15/12 5,306,000
170 New York City Ser A............................. 7.750 08/15/06 189,666
2,670 New York City Ser A (Prerefunded @ 08/15/01).... 7.750 08/15/06 3,003,990
7,055 New York City Ser B............................. 6.600 10/01/16 7,732,844
2,945 New York City Ser B (Prerefunded @ 10/01/02).... 6.600 10/01/16 3,284,235
425 New York City Ser C Subser C1................... 7.500 08/01/20 479,821
4,575 New York City Ser C Subser C1 (Prerefunded @
08/01/02)....................................... 7.500 08/01/20 5,241,943
2,750 New York City Ser D............................. 6.500 02/15/06 3,099,607
129 New York City Ser F............................. 8.250 11/15/16 146,427
2,871 New York City Ser F (Prerefunded @ 11/15/01).... 8.250 11/15/16 3,298,147
2,500 New York St Dorm Auth Rev City Univ Sys 3rd Genl
Res Ser 2....................................... 6.000 07/01/20 2,705,175
1,625 New York St Dorm Auth Rev City Univ Sys Cons Ser
A............................................... 5.625 07/01/16 1,760,866
2,000 New York St Dorm Auth Rev City Univ Sys Cons Ser
A (Prerefunded @ 07/01/00)...................... 7.625 07/01/20 2,178,340
1,725 New York St Dorm Auth Rev Dept Hlth Vets Home... 5.500 07/01/11 1,830,449
2,075 New York St Dorm Auth Rev Genessee Vly Ser B
(FHA Gtd)....................................... 6.900 02/01/32 2,267,664
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................... * 07/01/06 718,780
905 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................... * 07/01/07 620,957
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................... * 07/01/08 653,080
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................... * 07/01/09 618,800
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)........................................... * 07/01/10 585,170
1,500 New York St Dorm Auth Rev St Univ Edl Fac....... 5.750 05/15/10 1,638,525
2,000 New York St Dorm Auth Rev Upstate Cmnty Colleges
Ser B (Prerefunded @ 07/01/01).................. 7.375 07/01/11 2,225,580
</TABLE>
See Notes to Financial Statements
8
<PAGE> 10
PORTFOLIO OF INVESTMENTS (CONTINUED)
August 31, 1998
- --------------------------------------------------------------------------------
<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 $ 2,216,660
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 3,754,800
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 1,167,798
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 1,862,840
3,000 New York St Energy Resh & Dev Auth Gas Fac Rev
Brooklyn Union Gas Ser C (MBIA Insd)............ 5.600 06/01/25 3,125,910
4,000 New York St Energy Resh & Dev Auth Pollutn Ctl
Rev Niagara Mohawk Pwr Rfdg (FGIC Insd)......... 6.625 10/01/13 4,358,320
1,290 New York St Environmental Fac Corp Pollutn Ctl
Rev St Wtr Rev.................................. 6.600 06/15/09 1,471,322
1,925 New York St Environmental Fac Corp Pollutn Ctl
Rev St Wtr Rev (Prerefunded @ 06/15/04)......... 6.600 06/15/09 2,201,488
2,000 New York St Environmental Fac Corp Solid Waste
Disp Rev Occidental Petroleum Corp Proj......... 6.100 11/01/30 2,127,800
2,100 New York St Hsg Fin Agy Rev Newburgh Interfaith
Hsg Ser A....................................... 7.050 11/01/12 2,221,653
1,500 New York St Loc Govt Assistance Corp Ser D
(Prerefunded @ 04/01/02)........................ 7.000 04/01/18 1,685,805
65 New York St Med Care Fac Fin Agy Rev Mental Hlth
Svcs Fac Ser C.................................. 7.300 02/15/21 71,799
685 New York St Med Care Fac Fin Agy Rev Mental Hlth
Svcs Fac Ser C (Prerefunded @ 08/15/01)......... 7.300 02/15/21 764,755
750 New York St Med Care Fac Fin Agy Rev Mental Hlth
Svcs Fac Ser D.................................. 7.400 02/15/18 839,550
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 1,921,442
2,000 New York St Med Care Fac Fin Agy Rev
Presbyterian Hosp Ser A Rfdg (FHA Gtd).......... 5.375 02/15/25 2,040,540
1,000 New York St Muni Bond Bk Agy Spl Pgm Rev Buffalo
Ser A (b)....................................... 6.875 03/15/06 1,105,440
3,000 New York St Muni Bond Bk Agy Spl Pgm Rev
Rochester Ser A (Prerefunded @ 09/15/01)(b)..... 6.750 03/15/11 3,313,860
4,000 New York St Thruway Auth Svc Con Rev (MBIA
Insd) (a)....................................... 5.000 04/01/18 4,001,560
2,000 New York St Urban Dev Corp Rev Correctional Cap
Fac Rfdg........................................ 5.625 01/01/07 2,123,800
5,000 New York St Urban Dev Corp Rev Correctional Cap
Fac Ser 3 (Prerefunded @ 01/01/02).............. 7.000 01/01/21 5,585,200
1,500 New York St Urban Dev Corp Rev Correctional Cap
Fac Ser 4....................................... 5.375 01/01/23 1,523,490
1,115 New York St Urban Dev Corp Rev Proj Pine
Barrens......................................... 5.375 04/01/17 1,137,211
2,500 Port Auth NY & NJ Cons Ser 77................... 6.250 01/15/27 2,664,500
1,000 Port Auth NY & NJ Delta Airls Inc Proj Ser 1R... 6.950 06/01/08 1,093,060
</TABLE>
See Notes to Financial Statements
9
<PAGE> 11
PORTFOLIO OF INVESTMENTS (CONTINUED)
August 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 2,500 Port Auth NY & NJ Spl Oblig Rev Spl Proj JFK
Intl Arpt Terminal 6 (MBIA Insd)................ 6.000% 12/01/07 $ 2,814,225
2,000 Port Auth NY & NJ Spl Oblig Rev Spl Proj JFK
Intl Arpt Terminal 6 (MBIA Insd)................ 5.750 12/01/25 2,125,820
1,000 Saint Lawrence Cnty NY Indl Dev Civic Fac Rev St
Lawrence Univ Proj Ser A........................ 5.000 07/01/28 985,440
1,285 Syracuse, NY Ser B (a).......................... 5.250 10/01/08 1,377,995
1,930 Yonkers, NY Ser A (Prerefunded @ 02/15/02) (FGIC
Insd)........................................... 6.500 02/15/07 2,119,217
400 Yonkers, NY Ser A (Prerefunded @ 02/15/02) (FGIC
Insd)........................................... 6.500 02/15/12 441,748
------------
133,348,930
------------
GUAM 3.1%
2,000 Guam Arpt Auth Rev Ser B........................ 6.400 10/01/05 2,179,360
1,000 Guam Arpt Auth Rev Ser B........................ 6.700 10/01/23 1,099,280
1,000 Guam Pwr Auth Rev Ser A......................... 6.625 10/01/14 1,113,880
------------
4,392,520
------------
PUERTO RICO 0.6%
824 Centro de Recaudaciones de Ingresos Muni Ctfs
Partn PR........................................ 6.850 10/17/03 859,686
------------
U. S. VIRGIN ISLANDS 1.6%
2,000 Virgin Islands Pub Fin Auth Rev Matching Fd Ln
Nts Ser A Rfdg (Prerefunded @ 10/01/02)......... 7.250 10/01/18 2,291,680
------------
TOTAL LONG-TERM INVESTMENTS 98.3%
(Cost $126,858,462)......................................................... 140,892,816
TOTAL SHORT-TERM INVESTMENTS 4.3%
(Cost $6,150,000)........................................................... 6,150,000
------------
TOTAL INVESTMENTS 102.6%
(Cost $133,008,462)......................................................... 147,042,816
LIABILITIES IN EXCESS OF OTHER ASSETS (2.6%)................................. (3,710,749)
------------
NET ASSETS 100.0%............................................................ $143,332,067
------------
</TABLE>
*Zero coupon bond
(a) Securities purchased on a when issued or delayed delivery basis.
(b) Assets segregated as collateral for when issued or delayed delivery purchase
commitments.
See Notes to Financial Statements
10
<PAGE> 12
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $133,008,462)....................... $147,042,816
Interest Receivable......................................... 1,903,674
Cash........................................................ 72,233
Other....................................................... 3,092
------------
Total Assets............................................ 149,021,815
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 5,281,619
Income Distributions - Common and Preferred Shares........ 105,743
Investment Advisory Fee................................... 84,610
Administrative Fee........................................ 24,174
Affiliates................................................ 10,618
Accrued Expenses............................................ 91,288
Trustees' Deferred Compensation and Retirement Plans........ 91,696
------------
Total Liabilities....................................... 5,689,748
------------
NET ASSETS.................................................. $143,332,067
============
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000
shares, 900 issued with liquidation preference of $50,000
per share)................................................ $ 45,000,000
------------
Common Shares ($.01 par value with an unlimited number of
shares authorized, 5,655,638 shares issued and
outstanding).............................................. 56,556
Paid in Surplus............................................. 83,577,849
Net Unrealized Appreciation................................. 14,034,354
Accumulated Undistributed Net Investment Income............. 313,937
Accumulated Net Realized Gain............................... 349,371
------------
Net Assets Applicable to Common Shares.................. 98,332,067
------------
NET ASSETS.................................................. $143,332,067
============
NET ASSET VALUE PER COMMON SHARE
($98,332,067 divided by 5,655,638 shares outstanding)..... $ 17.39
============
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
STATEMENT OF OPERATIONS
For the Year Ended August 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 8,441,492
-----------
EXPENSES:
Investment Advisory Fee..................................... 993,126
Administrative Fee.......................................... 283,750
Preferred Share Maintenance................................. 117,796
Trustees' Fees and Expenses................................. 25,391
Custody..................................................... 11,224
Legal....................................................... 4,769
Other....................................................... 153,679
-----------
Total Expenses.......................................... 1,589,735
-----------
NET INVESTMENT INCOME....................................... $ 6,851,757
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 391,977
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 11,274,021
End of the Period......................................... 14,034,354
-----------
Net Unrealized Appreciation During the Period............... 2,760,333
-----------
NET REALIZED AND UNREALIZED GAIN............................ $ 3,152,310
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $10,004,067
===========
</TABLE>
See Notes to Financial Statements
12
<PAGE> 14
STATEMENT OF CHANGES IN NET ASSETS
For the Years Ended August 31, 1998 and 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
August 31, 1998 August 31, 1997
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income...................................... $ 6,851,757 $ 6,940,561
Net Realized Gain.......................................... 391,977 55,284
Net Unrealized Appreciation During the Period.............. 2,760,333 4,058,210
------------ ------------
Change in Net Assets from Operations....................... 10,004,067 11,054,055
------------ ------------
Distributions from Net Investment Income:
Common Shares............................................ (5,259,384) (5,597,679)
Preferred Shares......................................... (1,603,442) (1,597,711)
------------ ------------
(6,862,826) (7,195,390)
------------ ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES........ 3,141,241 3,858,665
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestment............................................. -0- 132,181
------------ ------------
TOTAL INCREASE IN NET ASSETS............................... 3,141,241 3,990,846
NET ASSETS:
Beginning of the Period.................................... 140,190,826 136,199,980
------------ ------------
End of the Period (Including accumulated undistributed net
investment income of $313,937 and $322,848,
respectively)............................................ $143,332,067 $140,190,826
============ ============
</TABLE>
See Notes to Financial Statements
13
<PAGE> 15
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one common share
of the Trust outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 27, 1991
(Commencement
of Investment
Year Ended August 31 Operations) to
--------------------------------------------------------- August 31,
1998 1997 1996 1995 1994 1993 1992
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of the
Period (a)........................ $16.831 $16.148 $16.469 $16.633 $17.958 $16.303 $14.777
------- ------- ------- ------- ------- ------- -------
Net Investment Income............. 1.212 1.227 1.245 1.243 1.302 1.307 1.068
Net Realized and Unrealized
Gain/Loss....................... .558 .728 (.226) .168 (1.163) 1.640 1.400
------- ------- ------- ------- ------- ------- -------
Total from Investment Operations... 1.770 1.955 1.019 1.411 .139 2.947 2.468
------- ------- ------- ------- ------- ------- -------
Less:
Distributions from Net Investment
Income:
Paid to Common Shareholders..... .930 .990 1.050 1.050 1.050 1.007 .743
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders........ .284 .282 .290 .267 .211 .195 .199
Distributions from and in Excess
of Net Realized Gain:
Paid to Common Shareholders..... -0- -0- -0- .216 .177 .071 -0-
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders........ -0- -0- -0- .042 .026 .019 -0-
------- ------- ------- ------- ------- ------- -------
Total Distributions................ 1.214 1.272 1.340 1.575 1.464 1.292 .942
------- ------- ------- ------- ------- ------- -------
Net Asset Value, End of the
Period............................ $17.387 $16.831 $16.148 $16.469 $16.633 $17.958 $16.303
======= ======= ======= ======= ======= ======= =======
Market Price Per Share at End of
the Period........................ $ 16.75 $16.125 $16.500 $15.500 $15.375 $17.250 $15.625
Total Investment Return at Market
Price (b)......................... 9.94% 3.94% 13.62% 9.73% (4.08%) 17.94% 9.39%*
Total Return at Net Asset
Value (c)......................... 9.07% 10.62% 4.45% 7.29% (.67%) 17.42% 14.00%*
Net Assets at End of the Period (In
Millions).......................... $143.3 $140.2 $136.2 $137.9 $138.9 $146.3 $137.0
Ratio of Expenses to Average Net
Assets Applicable to Common
Shares**.......................... 1.64% 1.68% 1.74% 1.76% 1.66% 1.66% 1.67%
Ratio of Net Investment Income to
Average Net Assets Applicable to
Common Shares (d)................. 5.42% 5.73% 5.77% 6.08% 6.31% 6.58% 6.27%
Portfolio Turnover................. 26% 17% 23% 50% 21% 25% 65%*
* Non-Annualized
** Ratio of Expenses to Average
Net Assets Including Preferred
Shares......................... 1.12% 1.13% 1.18% 1.17% 1.14% 1.13% 1.17%
</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.
See Notes to Financial Statements
14
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
August 31, 1998
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen 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.
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.
15
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
August 31, 1998
- --------------------------------------------------------------------------------
D. 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.
At August 31, 1998, for federal income tax purposes, cost of long- and
short-term investments is $133,008,462 the aggregate gross unrealized
appreciation is $14,034,354 and the aggregate gross unrealized depreciation is
$0, resulting in net unrealized appreciation of $14,034,354.
E. 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.
Due to inherent differences in the recognition of income, expenses and
realized gains/losses under generally accepted accounting principles and federal
income tax purposes, permanent differences between financial and tax basis
reporting for the 1998 fiscal year have been identified and appropriately
reclassified. Permanent book and tax basis differences relating to expenses
which are not deductible for tax purposes totaling $2,158 were reclassified from
accumulated undistributed net investment income to capital.
For the year ended August 31, 1998, 99.8% of the income distributions made
by the Trust were exempt from federal income taxes. In January, 1999, the Trust
will provide tax information to shareholders for the 1998 calendar year.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen
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 Van Kampen Funds Inc. or its affiliates (collectively "Van
Kampen"), 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.
16
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
August 31, 1998
- --------------------------------------------------------------------------------
For the year ended August 31, 1998, the Trust recognized expenses of
approximately $2,500 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom (Illinois), counsel to the Trust, of which a trustee of
the Trust is an affiliated person.
For the year ended August 31, 1998, the Trust recognized expenses of
approximately $59,400 representing Van Kampen's cost of providing accounting and
legal services to the Trust.
Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
officers of Van Kampen.
The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable for a ten-year period
and are based upon each trustee's years of service to the Trust. The maximum
annual benefit per trustee under the plan is $2,500.
3. CAPITAL TRANSACTIONS
At August 31, 1998 and August 31, 1997, common share paid in surplus aggregated
$83,577,849 and $83,580,007, respectively.
Transactions in common shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
AUGUST 31, 1998 AUGUST 31, 1997
- -------------------------------------------------------------------------
<S> <C> <C>
Beginning Shares........................... 5,655,638 5,647,596
Shares Issued Through Dividend
Reinvestment............................. -0- 8,042
--------- ----------
Ending Shares.............................. 5,655,638 5,655,638
========= ==========
</TABLE>
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sale of investments,
excluding short-term investments, were $35,914,404 and $36,397,292,
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 August 31, 1998, was 3.400%. During the year ended
August 31, 1998, the rates ranged from 3.250% to 3.850%.
17
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
August 31, 1998
- --------------------------------------------------------------------------------
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.
6. YEAR 2000 COMPLIANCE (UNAUDITED)
Van Kampen utilizes a number of computer programs across its entire operation
relying on both internal software systems as well as external software systems
provided by third parties. In 1996 Van Kampen initiated a CountDown 2000 Project
to review both the internal systems and external vendor connections. The goal of
this project is to position its business to continue unaffected as a result of
the century change. At this time, there can be no assurance that the steps taken
will be sufficient to avoid any adverse impact to the Trust, but Van Kampen does
not anticipate that the move to Year 2000 will have a material impact on its
ability to continue to provide the Trust with service at current levels. In
addition, it is possible that the securities markets in which the Trust invests
may be detrimentally affected by computer failures throughout the financial
services industry beginning January 1, 2000. Improperly functioning trading
systems may result in settlement problems and liquidity issues.
18
<PAGE> 20
REPORT OF INDEPENDENT ACCOUNTANTS
The Board of Trustees and Shareholders of
Van Kampen New York Quality Municipal Trust:
We have audited the accompanying statement of assets and liabilities of Van
Kampen New York Quality Municipal Trust (the "Trust"), including the portfolio
of investments, as of August 31, 1998, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1998, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of Van
Kampen New York Quality Municipal Trust as of August 31, 1998, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the periods presented, in conformity with generally accepted accounting
principles.
KPMG Peat Marwick LLP
Chicago, Illinois
October 6, 1998
19
<PAGE> 21
DIVIDEND REINVESTMENT PLAN
The Trust offers a dividend reinvestment plan (the "Plan") pursuant to which
Common Shareholders may elect to have dividends and capital gains distributions
reinvested in Common Shares of the Trust. The Trust declares dividends out of
net investment income, and will distribute annually net realized capital gains,
if any. Common Shareholders may join or withdraw from the Plan at any time.
If you decide to participate in the Plan, State Street Bank and Trust
Company, as your Plan Agent, will automatically invest your dividends and
capital gains distributions in Common Shares of the Trust for your account.
HOW TO PARTICIPATE
If you wish to participate and your shares are held in your own name, call
1-800-341-2929 for more information and a Plan brochure. If your shares are held
in the name of a brokerage firm, bank, or other nominee, you should contact your
nominee to see if it would participate in the Plan on your behalf. If you wish
to participate in the Plan, but your brokerage firm, bank or nominee is unable
to participate on your behalf, you should request that your shares be re-
registered in your own name which will enable your participation in the Plan.
HOW THE PLAN WORKS
Participants in the Plan will receive the equivalent in Common Shares valued on
the valuation date, generally at the lower of market price or net asset value,
except as specified below. The valuation date will be the dividend or
distribution payment date or, if that date is not a trading day on the national
securities exchange or market system on which the Common Shares are listed for
trading, the next preceding trading day. If the market price per Common Share on
the valuation date equals or exceeds net asset value per Common Share on that
date, the Trust will issue new Common Shares to participants valued at the
higher of net asset value or 95% of the market price on the valuation date. In
the foregoing situation, the Trust will not issue Common Shares under the Plan
below net asset value. If net asset value per Common Share on the valuation date
exceeds the market price per Common Share on that date, or if the Board of
Trustees should declare a dividend or capital gains distribution payable to the
Common Shareholders only in cash, participants in the Plan will be deemed to
have elected to receive Common Shares from the Trust valued at the market price
on that date. Accordingly, in this circumstance, the Plan Agent will, as agent
for the participants, buy the Trust's Common Shares in the open market for the
participants' accounts on or shortly after the payment date. If, before the Plan
Agent has completed its purchases, the market price exceeds the net asset value
per share of the Common Shares, the average per share purchase price paid by the
Plan Agent may exceed the net asset value of the Trust's Common Shares,
resulting in the acquisition of fewer Common Shares than if the dividend or
distribution had been paid in Common Shares issued by the Trust. All
reinvestments are in full and fractional Common shares and are carried to three
decimal places.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
change sent to all Common Shareholders of the Trust at least 90 days before the
record date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent by at least 90 days written notice to all Common
Shareholders of the Trust.
COSTS OF THE PLAN
The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. No other charges will be made to participants for reinvesting
dividends or capital gains distributions, except for certain brokerage
commissions, as described above.
TAX IMPLICATIONS
You will receive tax information annually for your personal records and to help
you prepare your federal income tax return. The automatic reinvestment of
dividends and capital gains distributions does not relieve you of any income tax
which may be payable on dividends or distributions.
RIGHT TO WITHDRAW
Plan participants may withdraw at any time by calling 1-800-341-2929 or by
writing State Street Bank and Trust Company, P.O. Box 8200, Boston, MA 02266-
8200. If you withdraw, you will receive, without charge, a share certificate
issued in your name for all full Common Shares credited to your account under
the Plan and a cash payment will be made for any fractional Common Share
credited to your account under the Plan. You may again elect to participate in
the Plan at any time by calling 1-800-341-2929 or writing to the Trust at:
Van Kampen Funds
Attn: Closed-End Funds
2800 Post Oak Blvd.
Houston, TX 77056
20
<PAGE> 22
VAN KAMPEN FUNDS
EQUITY FUNDS
Domestic Tax Exempt Income
Aggressive Equity California Insured Tax Free
Aggressive Growth Florida Insured Tax Free Income
American Value High Yield Municipal
Comstock Insured Tax Free Income
Emerging Growth Intermediate Term Municipal Income
Enterprise Municipal Income
Equity Growth New York Tax Free Income
Equity Income Pennsylvania Tax Free Income
Growth Tax Free High Income
Growth and Income Capital Preservation
Harbor Reserve
Pace Tax Free Money
Real Estate Securities Senior Loan
U.S. Real Estate Prime Rate Income Trust
Utility Senior Floating Rate
Value
International/Global To find out more about any of these
Asian Growth funds, ask your financial adviser for a
Emerging Markets prospectus, which contains more complete
European Equity information, including sales charges,
Global Equity risks, and expenses. Please read it
Global Equity Allocation carefully before you invest or send
Global Franchise money.
Global Managed Assets
International Magnum To view a current Van Kampen fund
Latin American prospectus or to receive additional fund
information, choose from one of the
FIXED-INCOME FUNDS following:
Income
Corporate Bond - visit our web site at
Global Fixed Income WWW.VANKAMPEN.COM -- to view a
Global Government Securities prospectus, select Download Prospectus
Government Securities
High Income Corporate Bond - call us at 1-800-341-2911 weekdays
High Yield from 7:00 a.m. to 7:00 p.m. Central
High Yield & Total Return time (Telecommunications Device for
Limited Maturity Government the Deaf users, call 1-800-421-2833)
Short-Term Global Income
Strategic Income - e-mail us by visiting
U.S. Government WWW.VANKAMPEN.COM and selecting
U.S. Government Trust for Income Contact Us
Worldwide High Income
21
<PAGE> 23
VAN KAMPEN NEW YORK QUALITY MUNICIPAL TRUST
BOARD OF TRUSTEES INVESTMENT ADVISER
DAVID C. ARCH VAN KAMPEN INVESTMENT
ROD DAMMEYER ADVISORY CORP.
HOWARD J KERR 1 Parkview Plaza
DENNIS J. MCDONNELL* - Chairman P.O. Box 5555
STEVEN MULLER Oakbrook Terrace, Illinois 60181-5555
THEODORE A. MYERS
DON G. POWELL* Custodian and
HUGO F. SONNENSCHEIN Transfer Agent
WAYNE W. WHALEN*
STATE STREET BANK
OFFICERS AND TRUST COMPANY
225 Franklin Street
DENNIS J. MCDONNELL* P.O. Box 1713
President Boston, Massachusetts 02105
RONALD A. NYBERG* LEGAL COUNSEL
Vice President and Secretary
SKADDEN, ARPS, SLATE,
EDWARD C. WOOD, III* MEAGHER & FLOM (ILLINOIS)
Vice President and Chief 333 West Wacker Drive
Financial Officer Chicago, Illinois 60606
CURTIS W. MORELL*
Vice President and Chief INDEPENDENT ACCOUNTANTS
Accounting Officer
JOHN L. SULLIVAN* KPMG PEAT MARWICK LLP
Treasurer Peat Marwick Plaza
303 East Wacker Drive
TANYA M. LODEN* Chicago, Illinois 60601
Controller
PETER W. HEGEL*
Vice President
* "Interested" persons of the Trust, as defined in the Investment Company Act
of 1940.
(C) Van Kampen Funds Inc., 1998 All rights reserved.
(SM) denotes a service mark of Van Kampen Funds Inc.
22
<PAGE> 24
RESULTS OF SHAREHOLDER VOTES
The Annual Meeting of Shareholders of the Trust was held on July 28, 1998,
where shareholders voted on the election of Trustees and the selection of
independent public accountants.
1) With regard to the election of Theodore A. Myers as elected Trustee by
the preferred shareholders of the Trust, 706 shares voted in his favor and 2
shares withheld.
2) With regard to the election of the following Trustees by the common
shareholders of the Trust:
<TABLE>
<CAPTION>
# OF SHARES
-------------------------
IN FAVOR WITHHELD
- ---------------------------------------------------------------------------
<S> <C> <C>
Don G. Powell.............................. 4,956,298 59,712
Hugo Sonnenschein.......................... 4,955,798 59,672
Dennis J. McDonnell........................ 4,023,605 74,334
</TABLE>
The other trustees of the Trust whose terms did not expire in 1998 are
Dennis J. McDonnell, Wayne W. Whalen, Rod Dammeyer, David C. Arch, Steven Muller
and Howard J Kerr.
3) With regard to the ratification of KPMG Peat Marwick LLP as independent
public accountants for the Trust 4,955,927 shares voted for the proposal, 15,681
shares voted against, and 44,570 shares abstained.
23
<PAGE> 25
VAN KAMPEN NEW YORK QUALITY MUNICIPAL TRUST
THIS PAGE INTENTIONALLY LEFT BLANK
24
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> NY QUALITY
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 133,008,462
<INVESTMENTS-AT-VALUE> 147,042,816
<RECEIVABLES> 1,903,674
<ASSETS-OTHER> 3,092
<OTHER-ITEMS-ASSETS> 72,233
<TOTAL-ASSETS> 149,021,815
<PAYABLE-FOR-SECURITIES> 5,281,619
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 408,129
<TOTAL-LIABILITIES> 5,689,748
<SENIOR-EQUITY> 45,000,000
<PAID-IN-CAPITAL-COMMON> 83,634,405
<SHARES-COMMON-STOCK> 5,655,638
<SHARES-COMMON-PRIOR> 5,655,638
<ACCUMULATED-NII-CURRENT> 313,937
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 349,371
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 14,034,354
<NET-ASSETS> 143,332,067
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,441,492
<OTHER-INCOME> 0
<EXPENSES-NET> (1,589,735)
<NET-INVESTMENT-INCOME> 6,851,757
<REALIZED-GAINS-CURRENT> 391,977
<APPREC-INCREASE-CURRENT> 2,760,333
<NET-CHANGE-FROM-OPS> 10,004,067
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (6,862,826)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 3,141,241
<ACCUMULATED-NII-PRIOR> 322,848
<ACCUMULATED-GAINS-PRIOR> (42,606)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 993,126
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,589,735
<AVERAGE-NET-ASSETS> 141,904,985
<PER-SHARE-NAV-BEGIN> 16.831
<PER-SHARE-NII> 1.212
<PER-SHARE-GAIN-APPREC> 0.558
<PER-SHARE-DIVIDEND> (1.214)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 17.387
<EXPENSE-RATIO> 1.64
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
