<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Performance Results.............................. 6
Portfolio of Investments......................... 7
Statement of Assets and Liabilities.............. 10
Statement of Operations.......................... 11
Statement of Changes in Net Assets............... 12
Financial Highlights............................. 13
Notes to Financial Statements.................... 14
Dividend Reinvestment Plan....................... 18
</TABLE>
VNM SAR 4/98
<PAGE> 2
LETTER TO SHAREHOLDERS
March 23, 1998
Dear Shareholder,
The new year ushered in what
promises to be an exciting and
challenging time for investors. The
Taxpayer Relief Act of 1997, signed
into law by President Clinton in
August, creates many new opportunities [PHOTO]
for you and your family to take a more
active role in achieving your long-term
financial goals.
Most Americans will benefit from
the bill's $95 billion in tax cuts over DENNIS J. MCDONNELL AND DON G. POWELL
five years. The so-called Kiddie Credit
gives parents $400 in immediate tax
relief for every child under age 17, and families will find it easier to save
for their children's college expenses with the new Education IRA. The bill also
cuts capital gains tax rates for the first time in more than a decade and
loosens restrictions on tax-deductible IRA contributions. Perhaps the most
exciting feature is the new Roth IRA, which allows investment earnings to grow
tax free, not just tax deferred.
This year, more than ever, it could be important for you to talk with your
financial adviser about how to make the tax code work to your advantage. At Van
Kampen American Capital, we have prepared a variety of publications to help you
understand your choices under the new tax legislation. And with the help of your
adviser, we'll help you locate the many benefits hidden among the changing tax
landscape.
ECONOMIC REVIEW
The U.S. economy sustained its forward momentum throughout 1997, growing at
a moderate rate of 3.8 percent, as measured in terms of gross domestic product.
Despite this continuing growth trend, inflation not only remained low but was on
a decline.
Nevertheless, market watchers remained alert for signs of surging prices.
One cause of concern was the extremely tight labor market. The percentage of
unemployed Americans fell to a 24-year low of 4.6 percent in February, as the
strong economy created more jobs than expected and wages continued to rise. To
date, increased productivity has allowed the U.S. economy to absorb this
increase in the workforce without overheating or driving prices higher.
New York's economic picture remains bright with steady private sector
employment growth and strong personal income growth, due in large part to the
continued bull market. New York City's economy also continues to rebound, with
lower unemployment, fewer office vacancies, and record-level hotel occupancy
rates.
MARKET REVIEW
The bond market rally continued during the past six months, with both
taxable and tax-exempt yields gradually drifting downward with minimal
volatility. Bond prices move in
Continued on page two
1
<PAGE> 3
the opposite direction of bond yields, so as bond yields fell during the period,
bond prices were on the rise. Thirty-year Treasury yields declined from 6.61
percent on August 29, 1997 to 5.91 percent on February 27, 1998. In addition,
the currency crisis in Asia helped spark the domestic bond market, as U.S.
Treasuries enjoyed an increase in demand from both foreign and U.S. investors.
As is typical during bond market rallies, municipal bond yields also
declined, although municipals did not perform as strongly as taxable bonds.
Heavy supply and low yield levels contributed to the weaker performance of the
municipal market. Generic general obligation 30-year AAA-rated municipal yields
dropped from 5.30 percent to 4.96 percent at the end of the period.
Credit spreads--the difference in yield between high-quality issues and
low-quality issues--remained extremely tight during the past six months. Under
normal circumstances, low-quality issues provide higher yields in order to
compensate investors for additional credit risk. In 1997, close to 49 percent of
newly issued municipal bonds were insured--causing a scarcity of
higher-yielding, lower-rated securities. This shortage, combined with low yields
in the municipal market, resulted in very narrow credit spreads.
Municipal yields continued to be very attractive compared to taxable yields.
For example, the Bond Buyer Revenue Bond Index, composed of 25 revenue bonds
with an average rating of single-A and an average maturity of 30 years, is
representative of the bonds we typically purchase for the Trust. The Index was
yielding 5.36 percent at the end of the reporting period, while the 30-year
Treasury bond was yielding 5.91 percent. In other words, the difference between
municipal bonds yields and long-term Treasury yields was historically very
narrow.
New York continues to be one of the largest issuers of new bonds. Demand for
this specialty state paper remains strong, keeping prices at levels slightly
higher than general market securities.
[CREDIT QUALITY GRAPH]
Portfolio Composition by Credit Quality
as of February 28, 1998*
<TABLE>
<S> <C>
AAA............. 46.6%
AA.............. 8.2%
A............... 7.9%
BBB............. 31.2%
Non-Rated....... 6.1%
</TABLE>
*As a Percentage of Long-Term Investments
Based upon the highest credit quality ratings as issued by Standard & Poor's or
Moody's.
Continued on page three
2
<PAGE> 4
TRUST STRATEGY
We employed the following strategies in managing the Trust during the period:
- - At the inception of the Trust in 1991, we were able to invest the Trust's
initial assets in bonds with attractive coupons and yields, and many of
these securities remain in the portfolio today. These securities, with
coupons much higher than current market levels, are approaching their
10-year call date and are at risk of being either pre-refunded or called. If
this happens, we will need to replace them with new bonds at current lower
coupons.
To help minimize this risk as the call dates approach, we gradually reduced
the Trust's holdings of pre-refunded securities and replaced them with
longer-term discount securities or securities priced near face value. If the
bond market continues to rally, discount securities are more likely to rise
in price than premium securities.
- - Duration was also a major focus. At the end of the reporting period, the
duration of the portfolio stood at 5.12 years. Duration is a measurement
used to express the sensitivity of a bond's price to changes in interest
rates. Each year of duration represents an expected one-percent change in
the price of a bond for every one-percent change in interest rates.
Typically, funds with short durations perform better when interest rates are
rising, while funds with long durations perform better when rates are
declining. Our interest rate outlook, described in more detail below, is
moderately optimistic. However, lengthening the duration of the Trust would
significantly impact the dividend, so we will maintain a somewhat short
duration in order to support the Trust's high dividend.
- - Although a high level of insured issuance usually makes it difficult to find
lower-rated securities, New York's high volume of tax-exempt securities and
our expertise in the state allowed us to identify and take advantage of
opportunities as they arose. The Trust's largest exposure continues to be
New York City at 22.5 percent of assets, followed by various
state-appropriated agencies, such as New York Local Government Assistance
Corporation, New York State Dormitories, and New York Environmental
Facilities. These names typically have provided above-average yields,
enhancing the Trust's dividend paying ability.
TOP FIVE PORTFOLIO INDUSTRY HOLDINGS BY SECTOR*
<TABLE>
<CAPTION>
AS OF
FEBRUARY 28, 1998
<S> <C>
General Purpose......................................... 28.1%
Higher Education........................................ 13.3%
Industrial Revenue...................................... 10.5%
Public Building......................................... 10.0%
Airport................................................. 6.4%
</TABLE>
*As a Percentage of Long-Term Investments
Continued on page four
3
<PAGE> 5
PERFORMANCE SUMMARY
For the six months ended February 28, 1998, the Van Kampen American Capital
New York Quality Municipal Trust generated a total return at market price of
5.27 percent(1), including reinvestment of dividends totaling $.4650 per common
share. The Trust offered a tax-exempt distribution rate of 5.64 percent(3),
based on the closing common stock price of $16.50 per share on February 28,
1998. Because income from the Trust is exempt from federal income tax, this
distribution rate represents a yield equivalent to a taxable investment earning
9.46 percent(4) (for investors in the 40.4 percent combined federal and New York
state income tax bracket). At the end of the reporting period, the closing share
price of the Trust traded at a 4.46 percent discount to its net asset value of
$17.27.
[DIVIDEND HISTORY GRAPH]
Six-month Dividend History
For the Period Ended February 28, 1998
<TABLE>
<CAPTION>
Distribution per Commom Share
<S> <C>
Sep 1997...................... $.0775
Oct 1997...................... $.0775
Nov 1997...................... $.0775
Dec 1997...................... $.0775
Jan 1998...................... $.0775
Feb 1998...................... $.0775
</TABLE>
The dividend history represents past performance of the Trust and does not
predict the Trust's future distributions.
OUTLOOK
We expect the U.S. economy and the demand for products and services to
remain strong in the coming months. However, the impact of the Asian financial
crisis is a looming question. The fallout from Asian currency devaluations in
late 1997 occurred at a time when the U.S. dollar was extremely strong against
most major foreign currencies. If Asia's purchasing power is sharply reduced due
to weakened currencies, analysts fear that U.S. export sales will slump. At the
same time, as Asian goods become cheaper relative to American goods, domestic
companies could face a period of price competition versus imported goods. Taken
together, these developments could cut into the earnings of U.S. corporations.
There is no debate that the Federal Reserve Board believes low inflation is
the ideal environment for the economy. Because inflation is low, it is unlikely
that the Fed will change short-term rates in the near future. While the Fed
continues to give credence to signs of economic strength, we believe it will
wait to determine the impact of the Asian situation before taking any action.
Longer term, interest rates need to be high enough to
Continued on page five
4
<PAGE> 6
control economic growth. With a focus on inflation rather than growth, the Fed
will probably take any necessary actions to keep inflation from rising. We will
expect a rate increase by the Fed only if there are signs of an acceleration in
inflation.
Regarding the municipal bond market, we believe yields will remain near
current levels through at least mid-summer. This will depend not only on the
general economy and the taxable bond market, but also tax-exempt bond supply and
demand levels. Given what we have seen this year, the market appears to be in a
solid equilibrium position, with strong demand to accommodate record municipal
supply.
We believe the Trust is positioned to perform well in the coming months and
do not anticipate making major changes to the structure of the portfolio. We
continue to seek a balance between the Trust's total return and its dividend
income, as well as to add value through security selection. The Trust continues
to benefit from its leveraged capital structure, which provides common
shareholders with above-market levels of dividend income. While we believe it is
unlikely that short-term interest rates will rise, this event would have an
unfavorable effect on the dividend-paying ability of the common shares and would
also negatively impact the price.
We appreciate your continued confidence in Van Kampen American Capital and
your Trust's portfolio manager.
Sincerely,
[SIG]
Don G. Powell
Chairman
Van Kampen American Capital
Investment Advisory Corp.
[SIG]
Dennis J. McDonnell
President
Van Kampen American Capital
Investment Advisory
Please see footnotes on page six
5
<PAGE> 7
PERFORMANCE RESULTS FOR THE PERIOD ENDED FEBRUARY 28, 1998
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)............ 5.27%
Six-month total return based on NAV(2)..................... 5.43%
DISTRIBUTION RATES
Distribution rate as a % of closing common stock
price(3)................................................... 5.64%
Taxable-equivalent distribution rate as a % of closing
common stock price(4)...................................... 9.46%
SHARE VALUATIONS
Net asset value............................................ $ 17.27
Closing common stock price................................. $16.500
Six-month high common stock price (01/21/98)............... $17.000
Six-month low common stock price (10/28/97)................ $15.625
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 40.4%
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.
6
<PAGE> 8
PORTFOLIO OF INVESTMENTS
February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ----------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS 98.8%
NEW YORK 91.5%
$ 2,000 Erie Cnty, NY Ser B (FGIC Insd)............... 5.625% 06/15/20 $ 2,082,840
3,000 Grand Cent Dist Mgmt Assn Inc NY Business Impt
Dist Cap Impt (Prerefunded @ 01/01/02)........ 6.500 01/01/22 3,313,290
2,500 Herkimer Cnty, NY Indl Dev Agy Indl Dev Rev
Burrows Paper Corp Recycling.................. 8.000 01/01/09 2,614,875
4,000 Monroe Cnty, NY Arpt Auth Rev Greater
Rochester Intl (MBIA Insd).................... 7.250 01/01/09 4,284,440
1,400 Monroe Cnty, NY Indl Dev Agy Rev Pub Impt
Canal Ponds Park Ser A........................ 7.000 06/15/13 1,533,238
128 Muni Assist Corp Troy NY Cap Apprec Ser C
(MBIA Insd)................................... * 07/15/21 39,913
2,000 Nassau Cnty, NY Genl Impt Ser Q (FGIC Insd)... 5.200 08/01/13 2,066,100
1,000 New York City Indl Dev Agy Spl Fac Rev 1990
AMR/American Airls Inc........................ 7.750 07/01/19 1,045,460
1,000 New York City Indl Dev Agy Spl Fac Rev
Terminal One Group Assn Proj.................. 6.000 01/01/15 1,058,170
5,000 New York City Muni Wtr Fin Auth Wtr & Swr Sys
Rev Ser F (AMBAC Insd)........................ 5.500 06/15/12 5,250,900
170 New York City Ser A........................... 7.750 08/15/06 190,024
2,670 New York City Ser A (Prerefunded @
08/15/01)..................................... 7.750 08/15/06 3,027,380
10,000 New York City Ser B (Embedded Cap) (a)........ 6.600 10/01/16 10,971,500
425 New York City Ser C SubSer C1................. 7.500 08/01/20 480,335
4,575 New York City Ser C SubSer C1 (Prerefunded @
08/01/02)..................................... 7.500 08/01/20 5,267,197
2,750 New York City Ser D........................... 6.500 02/15/06 3,076,672
240 New York City Ser F........................... 8.250 11/15/16 273,247
2,760 New York City Ser F (Prerefunded @
11/15/01)..................................... 8.250 11/15/16 3,198,398
1,500 New York St Dorm Auth Rev St Vincent Depaul
Res........................................... 5.300 07/01/18 1,498,035
2,500 New York St Dorm Auth Rev City Univ Sys 3rd
Genl Res Ser 2................................ 6.000 07/01/20 2,668,575
1,625 New York St Dorm Auth Rev City Univ Sys Cons
Ser A......................................... 5.625 07/01/16 1,733,778
2,000 New York St Dorm Auth Rev City Univ Sys Cons
Ser A (Prerefunded @ 07/01/00)................ 7.625 07/01/20 2,200,580
1,725 New York St Dorm Auth Rev Dept Hlth Vets
Home.......................................... 5.500 07/01/11 1,795,829
2,075 New York St Dorm Auth Rev Genessee Vly Ser B
(FHA Gtd)..................................... 6.900 02/01/32 2,266,004
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)......................................... * 07/01/06 698,310
905 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)......................................... * 07/01/07 602,594
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)......................................... * 07/01/08 632,990
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)......................................... * 07/01/09 596,940
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA
Insd)......................................... * 07/01/10 566,970
1,500 New York St Dorm Auth Rev St Univ Edl Fac..... 5.750 05/15/10 1,623,345
2,000 New York St Dorm Auth Rev Upstate Cmnty
Colleges Ser B (Prerefunded @ 07/01/01)....... 7.375 07/01/11 2,239,200
2,000 New York St Dorm Auth Rev Upstate Cmnty
Colleges Ser B (Prerefunded @ 07/01/01)....... 7.200 07/01/21 2,228,380
</TABLE>
See Notes to Financial Statements
7
<PAGE> 9
PORTFOLIO OF INVESTMENTS (CONTINUED)
February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ----------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 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 $ 3,739,715
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 1,180,274
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 1,870,645
3,000 New York St Energy Resh & Dev Auth Gas Fac Rev
Brooklyn Union Gas Ser C (MBIA Insd).......... 5.600 06/01/25 3,099,240
4,000 New York St Energy Resh & Dev Auth Pollutn Ctl
Rev Niagara Mohawk Pwr Rfdg (FGIC Insd)....... 6.625 10/01/13 4,368,120
2,000 New York St Environmental Fac Corp Solid Waste
Disp Rev Occidental Petroleum Corp Proj....... 6.100 11/01/30 2,113,080
1,925 New York St Environmental Fac St Wtr Rev
(Prerefunded @ 06/15/04)...................... 6.600 06/15/09 2,198,754
1,290 New York St Environmental Fac St Wtr Rev...... 6.600 06/15/09 1,466,150
2,140 New York St Hsg Fin Agy Rev Newburgh
Interfaith Hsg Ser A.......................... 7.050 11/01/12 2,264,826
1,500 New York St Loc Govt Assistance Corp Ser D
(Prerefunded @ 04/01/02)...................... 7.000 04/01/18 1,691,100
65 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser C........................... 7.300 02/15/21 72,160
685 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser C (Prerefunded @
08/15/01)..................................... 7.300 02/15/21 769,070
750 New York St Med Care Fac Fin Agy Rev Mental
Hlth Svcs Fac Ser D........................... 7.400 02/15/18 842,805
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 1,930,027
2,000 New York St Med Care Fac Fin Agy Rev
Presbyterian Hosp Ser A Rfdg (FHA Gtd)........ 5.375 02/15/25 2,007,020
1,000 New York St Muni Bond Bk Agy Spl Pgm Rev
Buffalo Ser A................................. 6.875 03/15/06 1,087,620
3,000 New York St Muni Bond Bk Agy Spl Pgm Rev
Rochester Ser A............................... 6.750 03/15/11 3,277,590
2,000 New York St Urban Dev Corp Rev Correctional
Cap Fac Rfdg.................................. 5.625 01/01/07 2,108,260
5,000 New York St Urban Dev Corp Rev Correctional
Cap Fac Ser 3 (Prerefunded @ 01/01/02)........ 7.000 01/01/21 5,606,550
1,500 New York St Urban Dev Corp Rev Correctional
Cap Fac Ser 4................................. 5.375 01/01/23 1,500,360
4,000 New York St Urban Dev Corp Rev Correctional
Cap Fac Ser A................................. 5.000 01/01/14 3,893,160
1,115 New York St Urban Dev Corp Rev Proj Pine
Barrens....................................... 5.375 04/01/17 1,126,529
2,500 Port Auth NY & NJ Cons Ser 77................. 6.250 01/15/27 2,643,125
1,000 Port Auth NY & NJ Delta Airls Inc Proj Ser
1R............................................ 6.950 06/01/08 1,098,610
2,500 Port Auth NY & NJ Spl Oblig Rev Spl Proj JFK
Intl Arpt Terminal 6 (MBIA Insd).............. 6.000 12/01/07 2,800,750
2,000 Port Auth NY & NJ Spl Oblig Rev Spl Proj JFK
Intl Arpt Terminal 6 (MBIA Insd).............. 5.750 12/01/25 2,106,680
</TABLE>
See Notes to Financial Statements
8
<PAGE> 10
PORTFOLIO OF INVESTMENTS (CONTINUED)
February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ----------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 1,930 Yonkers, NY Ser A (FGIC Insd)................. 6.500% 02/15/07 $ 2,122,595
400 Yonkers, NY Ser A (FGIC Insd)................. 6.500 02/15/12 442,784
------------
130,553,108
------------
GUAM 3.1%
2,000 Guam Arpt Auth Rev Ser B...................... 6.400 10/01/05 2,186,980
1,000 Guam Arpt Auth Rev Ser B...................... 6.700 10/01/23 1,098,210
1,000 Guam Pwr Auth Rev Ser A....................... 6.625 10/01/14 1,111,280
------------
4,396,470
------------
PUERTO RICO 2.6%
884 Centro de Recaudaciones de Ingresos Muni Ctfs
Partn PR...................................... 6.850 10/17/03 920,439
2,848 Puerto Rico Comwlth Dept of Hlth Lease Purch
Ctfs.......................................... 7.250 04/07/01 2,858,394
------------
3,778,833
------------
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 2,245,160
------------
TOTAL LONG-TERM INVESTMENTS 98.8%
(Cost $127,456,084)....................................................... 140,973,571
SHORT-TERM INVESTMENTS 2.9%
(Cost $4,100,000)......................................................... 4,100,000
------------
TOTAL INVESTMENTS 101.7%
(Cost $131,556,084)....................................................... 145,073,571
LIABILITIES IN EXCESS OF OTHER ASSETS (1.7)%............................... (2,386,766)
------------
NET ASSETS 100.0%.......................................................... $142,686,805
============
</TABLE>
* Zero coupon bond
(a) 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
9
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $131,556,084)....................... $145,073,571
Interest Receivable......................................... 1,928,694
Cash........................................................ 40,686
Other....................................................... 4,761
------------
Total Assets............................................ 147,047,712
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 3,908,160
Income Distributions - Common and Preferred Shares........ 157,274
Investment Advisory Fee................................... 76,784
Administrative Fee........................................ 21,938
Affiliates................................................ 11,349
Accrued Expenses............................................ 102,648
Trustees' Deferred Compensation and Retirement Plans........ 82,754
------------
Total Liabilities....................................... 4,360,907
------------
NET ASSETS.................................................. $142,686,805
============
NET ASSETS CONSIST OF:
Preferred Shares ($.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............................................. 83,580,007
Net Unrealized Appreciation................................. 13,517,487
Accumulated Undistributed Net Investment Income............. 335,926
Accumulated Net Realized Gain............................... 196,829
------------
Net Assets Applicable to Common Shares.................. 97,686,805
------------
NET ASSETS.................................................. $142,686,805
============
NET ASSET VALUE PER COMMON SHARE
($97,686,805 divided by 5,655,638 shares outstanding)..... $ 17.27
============
</TABLE>
See Notes to Financial Statements
10
<PAGE> 12
STATEMENT OF OPERATIONS
For the Six Months Ended February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 4,214,362
-----------
EXPENSES:
Investment Advisory Fee..................................... 492,112
Administrative Fee.......................................... 140,604
Preferred Share Maintenance................................. 55,793
Trustees' Fees and Expenses................................. 13,490
Custody..................................................... 5,967
Legal....................................................... 5,728
Other....................................................... 66,450
-----------
Total Expenses.......................................... 780,144
-----------
NET INVESTMENT INCOME....................................... $ 3,434,218
===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain........................................... $ 239,435
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 11,274,021
End of the Period......................................... 13,517,487
-----------
Net Unrealized Appreciation During the Period............... 2,243,466
-----------
NET REALIZED AND UNREALIZED GAIN............................ $ 2,482,901
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 5,917,119
===========
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended February 28, 1998 and
the Year Ended August 31, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
February 28, 1998 August 31, 1997
- --------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 3,434,218 $ 6,940,561
Net Realized Gain....................................... 239,435 55,284
Net Unrealized Appreciation During the Period........... 2,243,466 4,058,210
------------ ------------
Change in Net Assets from Operations.................... 5,917,119 11,054,055
------------ ------------
Distributions from Net Investment Income:
Common Shares......................................... (2,629,699) (5,597,679)
Preferred Shares...................................... (791,441) (1,597,711)
------------ ------------
(3,421,140) (7,195,390)
------------ ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES..... 2,495,979 3,858,665
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestment.......................................... 0 132,181
------------ ------------
TOTAL INCREASE IN NET ASSETS............................ 2,495,979 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 $335,926 and $322,848,
respectively)......................................... $142,686,805 $140,190,826
============ ============
</TABLE>
See Notes to Financial Statements
12
<PAGE> 14
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
of Investment
Six Months Ended Year Ended August 31 Operations) to
February 28, ----------------------------------------------- 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............ .607 1.227 1.245 1.243 1.302 1.307 1.068
Net Realized and Unrealized
Gain/Loss...................... .439 .728 (.226) .168 (1.163) 1.640 1.400
------- ------- ------- ------- ------- ------- -------
Total from Investment
Operations....................... 1.046 1.955 1.019 1.411 .139 2.947 2.468
------- ------- ------- ------- ------- ------- -------
Less:
Distributions from Net Investment
Income:
Paid to Common Shareholders.... .465 .990 1.050 1.050 1.050 1.007 .743
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders....... .140 .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............... .605 1.272 1.340 1.575 1.464 1.292 .942
------- ------- ------- ------- ------- ------- -------
Net Asset Value, End of the
Period........................... $17.272 $16.831 $16.148 $16.469 $16.633 $17.958 $16.303
======= ======= ======= ======= ======= ======= =======
Market Price Per Share at End of
the Period....................... $16.500 $16.125 $16.500 $15.500 $15.375 $17.250 $15.625
Total Investment Return at Market
Price (b)........................ 5.27%* 3.94% 13.62% 9.73% (4.08%) 17.94% 9.39%*
Total Return at Net Asset
Value (c)........................ 5.43%* 10.62% 4.45% 7.29% (.67%) 17.42% 14.00%*
Net Assets at End of the Period
(In millions).................... $142.7 $140.2 $136.2 $137.9 $138.9 $146.3 $137.0
Ratio of Expenses to Average Net
Assets Applicable to Common
Shares**......................... 1.63% 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)................ 5.50% 5.73% 5.77% 6.08% 6.31% 6.58% 6.27%
Portfolio Turnover................ 10%* 17% 23% 50% 21% 25% 65%*
* Non-Annualized
** Ratio of Expenses to Average
Net Assets Including Preferred
Shares........................ 1.11% 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
13
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS
February 28, 1998 (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, 1998, there were no
when issued or delayed delivery purchase commitments.
14
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
February 28, 1998 (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. 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, 1997, the Trust had an accumulated capital loss
carryforward for tax purposes of $42,606. This amount will expire on August 31,
2004.
At February 28, 1998, for federal income tax purposes, cost of long- and
short-term investments is $131,556,084, the aggregate gross unrealized
appreciation is $13,517,487 and the aggregate gross unrealized depreciation is
$0, resulting in net unrealized appreciation on investments of $13,517,487.
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.
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 Van Kampen American Capital Distributors, Inc.
or its affiliates (collectively "VKAC"), the Trust's Administrator, at an annual
rate of .20% of the average net assets of the Trust. The administrative services
provided by the Administrator include record keeping and reporting
responsibilities with respect to the Trust's portfolio and preferred shares and
providing certain services to shareholders.
15
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------
For the six months ended February 28, 1998, the Trust recognized expenses of
approximately $1,000 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 six months ended February 28, 1998, the Trust recognized expenses of
approximately $23,800 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 provides deferred compensation and retirement plans for its
trustees who are not officers of VKAC. 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 under the plan is equal to the trustee's annual retainer fee, which is
currently $2,500.
3. CAPITAL TRANSACTIONS
At February 28, 1998 and August 31, 1997, common share paid in surplus
aggregated $83,580,007 and $83,580,007, respectively.
Transactions in common shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
FEBRUARY 28, 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 $14,378,510 and $14,041,654,
respectively.
16
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
February 28, 1998 (Unaudited)
- --------------------------------------------------------------------------------
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, 1998, was 3.390%. During the six months
ended February 28, 1998, the rates ranged from 3.250% to 3.850%.
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.
17
<PAGE> 19
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 American Capital
Attn: Closed-End Funds
2800 Post Oak Blvd.
Houston, TX 77056
18
<PAGE> 20
FUNDS DISTRIBUTED BY VAN KAMPEN AMERICAN CAPITAL
EQUITY FUNDS
Domestic
MS Aggressive Equity
VKAC Aggressive Growth
MS American Value
VKAC Comstock
VKAC Emerging Growth
VKAC Enterprise
VKAC Equity Income
VKAC Growth
VKAC Growth and Income
VKAC Harbor
VKAC Pace
VKAC Real Estate Securities
MS U.S. Real Estate
VKAC Utility
MS Value
International/Global
MS Asian Growth
MS Emerging Markets
MS Global Equity
VKAC Global Equity
MS Global Equity Allocation
VKAC Global Managed Assets
MS International Magnum
MS Latin American
FIXED-INCOME FUNDS
Income
VKAC Corporate Bond
MS Global Fixed Income
VKAC Global Government Securities
VKAC Government Securities
VKAC High Income Corporate Bond
MS High Yield
VKAC High Yield
VKAC Short-Term Global Income
VKAC Strategic Income
VKAC U.S. Government
VKAC U.S. Government Trust for Income
MS Worldwide High Income
Tax Exempt Income
VKAC California Insured Tax Free
VKAC Florida Insured Tax Free Income
VKAC High Yield Municipal
VKAC Insured Tax Free Income
VKAC Intermediate Term Municipal Income
VKAC Municipal Income
VKAC New York Tax Free Income
VKAC Pennsylvania Tax Free Income
VKAC Tax Free High Income
Capital Preservation
VKAC Limited Maturity Government
VKAC Prime Rate Income Trust
VKAC Reserve
VKAC Senior Floating Rate
VKAC Tax Free Money
To find out more about any of these funds, ask your financial adviser for a
prospectus, which contains more complete information, including sales
charges, risks, and expenses. Please read it carefully before you invest or
send money.
To view a current Van Kampen American Capital or Morgan Stanley fund
prospectus or to receive additional fund information, choose from one of the
following:
- visit our web site at WWW.VKAC.COM -- to view prospectuses, select
Investors' Place, then Download a Prospectus
- call us at 1-800-341-2911 weekdays from 7:00 a.m. to 7:00 p.m. Central time
(Telecommunications Device for the Deaf users, call 1-800-421-2833)
- e-mail us by visiting WWW.VKAC.COM and selecting Investors' Place
19
<PAGE> 21
VAN KAMPEN AMERICAN CAPITAL NEW YORK QUALITY MUNICIPAL TRUST
BOARD OF TRUSTEES
DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
DENNIS J. MCDONNELL* - Chairman
STEVEN MULLER
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., 1998
All rights reserved.
(SM) denotes a service mark of
Van Kampen American Capital Distributors, Inc.
20
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES> 11
<NUMBER> 11
<NAME> NY QUALITY
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> FEB-28-1998
<INVESTMENTS-AT-COST> 131,556,084
<INVESTMENTS-AT-VALUE> 145,073,571
<RECEIVABLES> 1,928,694
<ASSETS-OTHER> 4,761
<OTHER-ITEMS-ASSETS> 40,686
<TOTAL-ASSETS> 147,047,712
<PAYABLE-FOR-SECURITIES> 3,908,160
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 452,747
<TOTAL-LIABILITIES> 4,360,907
<SENIOR-EQUITY> 45,000,000
<PAID-IN-CAPITAL-COMMON> 83,636,563
<SHARES-COMMON-STOCK> 5,655,638
<SHARES-COMMON-PRIOR> 5,655,638
<ACCUMULATED-NII-CURRENT> 335,926
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 196,829
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 13,517,487
<NET-ASSETS> 142,686,805
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,214,362
<OTHER-INCOME> 0
<EXPENSES-NET> (780,144)
<NET-INVESTMENT-INCOME> 3,434,218
<REALIZED-GAINS-CURRENT> 239,435
<APPREC-INCREASE-CURRENT> 2,243,466
<NET-CHANGE-FROM-OPS> 5,917,119
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,421,140)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,495,979
<ACCUMULATED-NII-PRIOR> 322,848
<ACCUMULATED-GAINS-PRIOR> (42,606)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 492,112
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 780,144
<AVERAGE-NET-ASSETS> 141,797,265
<PER-SHARE-NAV-BEGIN> 16.831
<PER-SHARE-NII> 0.607
<PER-SHARE-GAIN-APPREC> 0.439
<PER-SHARE-DIVIDEND> (0.605)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 17.272
<EXPENSE-RATIO> 1.63
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
