<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Economic Snapshot................................ 2
Performance Results.............................. 3
Glossary of Terms................................ 4
Portfolio Management Review...................... 5
Portfolio Highlights............................. 8
Portfolio of Investments......................... 9
Statement of Assets and Liabilities.............. 13
Statement of Operations.......................... 14
Statement of Changes in Net Assets............... 15
Financial Highlights............................. 16
Notes to Financial Statements.................... 18
Dividend Reinvestment Plan....................... 22
</TABLE>
VTN SAR 6/99
<PAGE> 2
LETTER TO SHAREHOLDERS
May 20, 1999
Dear Shareholder,
With the volatility that we've experienced in many financial markets in
recent months, some investors have sold securities because of uncertainty about
where the markets were going, only to be left rethinking whether they made the
right decision. We've witnessed this kind of market activity numerous times over
the past several years, sparked by concerns such as the impact of the Asian
economic crisis, high stock valuations, or, most recently, the stability of many
high-flying technology companies. While these fears eventually subsided,
investors who may have sold during this period were unable to reap the benefits
of the latest rally. That's partly because most of the recent big gains happened
in relatively short periods of time. This kind of volatility--and the danger of
making short-term decisions--highlights the importance of investing for the long
term, in accordance with your individual financial objectives.
Although the worst of the Asian crisis appears to be behind us, new concerns
are always emerging. In the coming months, we'll likely hear more about how the
year 2000 computer problem may affect the markets or that we're overdue for a
correction. While the markets could undoubtedly suffer as a result of these or
any number of other events, we encourage you to focus on your long-term
investment goals. Although nothing is certain, history has shown us that over
time, the markets tend to recover--and most investors want to be positioned to
take advantage of any recovery.
If you have concerns about market volatility or questions about how your
portfolio is structured to respond to these events, we encourage you to contact
your financial advisor. Your advisor can talk with you about sustaining a
long-term investment plan through a variety of market conditions. We hope that
Van Kampen Funds will play an important role as you and your advisor build a
portfolio designed to help you weather whatever the markets have in store.
Sincerely,
[SIG]
Richard F. Powers III
Chairman
Van Kampen Investment Advisory Corp.
[SIG]
Dennis J. McDonnell
President
Van Kampen Investment Advisory Corp.
1
<PAGE> 3
ECONOMIC SNAPSHOT
A surge in consumer confidence led to strong economic growth over the past
six months, as fears about the impact of the Asian financial crisis subsided. In
the fourth quarter, the nation's gross domestic product (GDP) rose at an
astounding 6.0 percent annual rate and remained strong at 4.5 percent through
the first quarter of 1999. This powerful level of growth is attributed to a
continued increase in consumer spending, a strong housing market, and high
retail sales--all the result of a more confident consumer given the positive
employment environment. The economy began to show signs of slowing down early in
1999, however, as corporate profits and wage growth declined.
Despite continued improvements in Asia and Latin America and the record
economic growth in the United States, inflation remained at bay in late 1998 as
commodity prices tumbled. Although rising oil prices pushed inflation up 3.3
percent on an annualized basis in the first four months of 1999, price increases
remained moderate enough overall to keep inflation-adjusted interest rates
attractive.
Our outlook for the domestic economy remains positive, although we
anticipate slower growth in the second half of the year. We look for a gradual
but steady rise in inflation throughout 1999 to more normal but certainly not
alarming levels. Internationally, low interest rates and improving financial
conditions should continue to support the economic progress we've witnessed
overseas.
INTEREST RATES AND INFLATION
April 30, 1997, through April 30, 1999
[LINE GRAPH]
<TABLE>
<CAPTION>
INTEREST RATES INFLATION
-------------- ---------
<S> <C> <C>
Apr 1997 6.0000 2.5000
5.6250 2.2000
6.5000 2.3000
Jul 1997 6.0000 2.2000
5.5000 2.2000
6.2500 2.2000
Oct 1997 5.7500 2.1000
5.6875 1.8000
6.5000 1.7000
Jan 1998 5.5625 1.6000
5.6250 1.4000
6.1250 1.4000
Apr 1998 5.6250 1.4000
5.6875 1.7000
6.0000 1.7000
Jul 1998 5.5625 1.7000
5.9375 1.6000
5.7500 1.5000
Oct 1998 5.2500 1.5000
4.8750 1.5000
4.0000 1.6000
Jan 1999 4.8125 1.7000
4.8750 1.6000
5.1250 1.7000
Apr 1999 4.9375 2.3000
</TABLE>
Interest rates are represented by the closing midline federal funds rate
on the last day of each month. Inflation is indicated by the annual
percent change of the Consumer Price Index for all urban consumers at
the end of each month.
2
<PAGE> 4
PERFORMANCE RESULTS FOR THE PERIOD ENDED APRIL 30, 1999
VAN KAMPEN TRUST FOR INVESTMENT GRADE
NEW YORK MUNICIPALS
(NYSE TICKER SYMBOL--VTN)
<TABLE>
<CAPTION>
<S> <C>
COMMON SHARE TOTAL RETURNS
Six-month total return based on market price(1)........... (.52%)
Six-month total return based on NAV(2).................... 1.32%
DISTRIBUTION RATES
Distribution rate as a % of closing common stock
price(3).................................................. 5.54%
Taxable-equivalent distribution rate as a % of closing
common stock price(4)..................................... 9.30%
SHARE VALUATIONS
Net asset value........................................... $ 17.59
Closing common stock price................................ $17.1250
Six-month high common stock price (12/29/98).............. $18.0000
Six-month low common stock price (01/29/99)............... $16.9375
Preferred share rate(5)................................... 3.070%
</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 #6, 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.
3
<PAGE> 5
GLOSSARY OF TERMS
CALL FEATURE: Allows the issuer to buy back a bond on specific dates at set
prices before maturity. These dates and prices are set when the bond is
issued. To compensate the bondholder for the potential loss of income and
ownership, a bond's 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.
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.
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.
INSURED BOND: A bond that is insured against default by the bond insurer. If the
issuer defaults, the insurance company will step in and take over payments
of interest and principal when due. Once a bond is insured, it typically
carries the rating of the insurer. Most insurers are rated AAA.
INVESTMENT-GRADE BONDS: Securities rated BBB and above by Standard & Poor's or
Baa and above by Moody's Investors Service. Bonds rated below BBB or Baa are
noninvestment grade.
MATURITY LENGTH: The time it takes for a bond to mature. A bond issued in 1998
and maturing in 2008 is a 10-year bond.
MUNICIPAL BOND: A debt security issued by a state, municipality, or other
government entity to finance capital expenditures of public projects, such
as the construction of highways, public works, or school buildings. Interest
on public-purpose municipal bonds is exempt from federal income taxes and,
in some states, from state and local income taxes.
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.
REFUNDING: Retiring an outstanding bond issue at maturity using money from the
sale of a new offering.
YIELD: The annual rate of return on an investment, expressed as a percentage.
YIELD SPREAD: The additional yield investors can earn by either investing in
bonds with longer maturities or by investing in bonds with lower ratings.
The spread is the difference in yield between bonds with short versus long
maturities or the difference in yield between high-quality bonds and
lower-quality bonds.
4
<PAGE> 6
PORTFOLIO MANAGEMENT REVIEW
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
We recently spoke with the management team of the Van Kampen Trust for
Investment Grade New York Municipals about the key events and economic forces
that shaped the markets during the reporting period. The team includes Dennis S.
Pietrzak, portfolio manager, and Peter W. Hegel, chief investment officer for
fixed-income investments. The following comments reflect their views on the
Trust's performance during the six months ended April 30, 1999.
Q HOW WOULD YOU DESCRIBE THE CONDITIONS IN THE MUNICIPAL MARKET DURING THE
PAST SIX MONTHS?
A Although most of the financial markets experienced volatility during the
period, the municipal market remained relatively stable. For the majority
of the six months, long-term municipal bond yields remained within a range
of about 5.1 to 5.3 percent, even as the Federal Reserve cut interest rates.
Much of the stability in the municipal market can be attributed to its isolation
from turbulence abroad. Concerns about the financial conditions in Asia and
Latin America hurt the stock and high-yield bond markets last fall, but had
little effect on municipals.
The positive economic and market conditions encouraged more municipalities
to take advantage of low interest rates and issue new bonds. Although the amount
of municipal debt increased, the credit quality of many issuers was not
compromised--in fact, it improved as the positive economic environment led to
stronger balance sheets. As a result, we saw more issuers using municipal bonds
to finance special growth and expansion projects, as opposed to financing their
regular operations.
The proportion of higher-yielding municipal bonds also increased during the
period as the number of insured bonds declined. Because bond insurers tightened
their underwriting criteria, more issuers came to market without insurance and
offered higher yields to compensate bondholders for the increased credit risk.
This benefited the Trust because it allowed our experienced research staff to
seek out those higher-yielding bonds that we felt had strong underlying quality.
Q WHY WERE MUNICIPAL BONDS SO ATTRACTIVE RELATIVE TO COMPARABLE TREASURY
BONDS?
A Toward the end of 1998, the yields on 30-year insured municipal bonds and
comparable U.S. Treasury bonds reached equivalent levels, which is a rare
occurrence. Typically, investment-grade municipal bonds have offered about 85 to
90 percent as much yield as comparable Treasury bonds because their interest
payments are exempt from federal income taxes. However, as Treasury yields fell
and municipal yields remained stable, the yield difference between the two types
of bonds shrank. Early in 1999, investors recognized the tremendous
opportunities available in the municipal
5
<PAGE> 7
market, and demand for municipals began to increase. In conjunction with a
recent slowdown in supply, this boost in municipal demand pushed the
municipal-to-Treasury yield ratio back to more traditional but still attractive
levels.
Q WHAT STRATEGIES DID YOU USE TO MANAGE THE TRUST?
A Our focus was on supporting the Trust's income stream while monitoring its
risk level and price volatility. As a result, most of our purchases were
bonds with 15-to 20-year maturities, as the intermediate range of the
yield curve offered almost as much yield as comparable 30-year bonds but is
potentially less volatile. We would have received minimal incremental yield for
assuming the additional interest-rate risk associated with purchasing
longer-maturity bonds.
Continued economic strength, state and local budget surpluses, and heavy
municipal bond issuance have made New York a thriving municipal market. The wide
selection of available bonds provided a number of opportunities to find
attractive securities with appreciation potential during the reporting period.
In particular, we acquired insured bonds because we were able to purchase these
high-quality securities at yields that were quite competitive with lower-rated
bonds.
In addition, we sold bonds in the portfolio that had a high risk of being
called, or repaid early by the issuer. These higher-yielding bonds had increased
in value since we purchased them, so we took advantage of the opportunity to
sell them at a premium. To help protect the Trust from future bond calls, we
began to replace some of our housing bonds. These bonds carry a risk that the
mortgage holder will refinance the mortgage or pay it off early, especially
during a low interest-rate environment like we are currently experiencing. Thus,
housing bonds are more likely than many other issues to be called from the
portfolio.
Q HOW DID YOU FIND VALUE IN THE MUNICIPAL MARKET?
A By working closely with our experienced research analysts, we continued to
look for bonds that may be temporarily out of favor but that we feel have
the potential to appreciate in price if market conditions change. For
example, we had previously purchased securities that were subject to the
alternative minimum tax (AMT) because they offered very attractive yields during
a time when AMT bonds were plentiful. Since that time, the supply of AMT bonds
has dropped significantly, so we sold some AMT holdings and replaced them with
insured bonds that offered approximately the same yield--effectively increasing
the quality of the portfolio without sacrificing yield. For additional portfolio
highlights, please refer to page 8.
6
<PAGE> 8
Q HOW DID THE TRUST PERFORM DURING THE PERIOD?
A During the past six months, the Trust generated a total return of -0.52
percent(1) based on market price. This reflects a decrease in market price
from $17.6875 per share on October 31, 1998, to $17.1250 on April 30,
1999. In addition, the Trust provided a distribution rate of 5.54 percent(3)
based on its closing common stock price on April 30, 1999. Because the Trust is
exempt from federal and state income taxes, this distribution rate is equivalent
to a yield of 9.30 percent(4) on a taxable investment for shareholders in the
40.4 percent federal and state combined income tax bracket. The Trust's monthly
dividend of $.0790 per share was unchanged during the reporting period. Past
performance does not guarantee future results. Please refer to the footnotes and
chart on page 3 for additional Trust performance results.
Q WHAT DO YOU SEE AHEAD FOR THE MUNICIPAL MARKET?
A Strong economic performance should continue to bolster the credit
conditions of municipal issuers. In addition, we expect that this economic
strength will continue to make municipalities more likely to issue debt
for special projects rather than for general operating financing.
Although insured debt has been increasing in recent years, we have started
to see a reversal of this trend in the last few months, as municipal bond
insurers have become more cautious. If this caution continues, credit spreads
may widen as the proportion of higher-yielding uninsured bonds increases.
Finally, we see the potential for changes in traditional economic activity
toward the end of the year because of investor concerns about the year 2000
computer problem. These temporary concerns, however, may result in attractive
investment opportunities that our research staff can explore to uncover
potential value.
[SIG]
Dennis S. Pietrzak
Portfolio Manager
[SIG]
Peter W. Hegel
Chief Investment Officer
Fixed Income Investments
7
<PAGE> 9
PORTFOLIO HIGHLIGHTS
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
TOP FIVE PORTFOLIO SECTORS AS A PERCENTAGE OF LONG-TERM INVESTMENTS
<TABLE>
<CAPTION>
AS OF APRIL 30, 1999
<S> <C>
General Purpose............. 22.3%
Transportation.............. 16.7%
Public Building............. 9.9%
Other Care.................. 8.6%
Health Care................. 7.3%
</TABLE>
<TABLE>
<CAPTION>
AS OF OCTOBER 31, 1998
<S> <C>
General Purpose............. 22.5%
Transportation.............. 17.0%
Public Building............. 10.0%
Other Care.................. 8.7%
Health Care................. 7.4%
</TABLE>
PORTFOLIO COMPOSITION BY CREDIT QUALITY AS A PERCENTAGE OF LONG-TERM INVESTMENTS
AS OF APRIL 30, 1999
[PIE CHART]
<TABLE>
<CAPTION>
AAA/Aaa AA/Aa A/A BBB/Baa
------- ----- --- -------
<S> <C> <C> <C> <C>
37.5% 21.7% 21.7% 19.1%
</TABLE>
AS OF OCTOBER 31, 1998
[PIE CHART]
<TABLE>
<CAPTION>
AAA/Aaa AA/Aa A/A BBB/Baa
------- ----- --- -------
<S> <C> <C> <C> <C>
36.8% 21.9% 22% 19.3%
</TABLE>
Based upon the highest credit quality ratings as issued by Standard & Poor's or
Moody's, respectively.
DISTRIBUTION HISTORY
FOR THE PERIOD ENDED APRIL 30, 1999
[BAR GRAPH]
Distribution per Common Share
<TABLE>
<CAPTION>
DIVIDENDS CAPITAL GAIN
--------- ------------
<S> <C> <C>
'Nov 1998' 0.079 0
'Dec 1998' 0.079 0.0046
'Jan 1999' 0.079 0
'Feb 1999' 0.079 0
'Mar 1999' 0.079 0
'Apr 1999' 0.079 0
</TABLE>
The distribution history represents past performance of the Trust and does not
predict the Trust's future distributions.
8
<PAGE> 10
PORTFOLIO OF INVESTMENTS
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS 99.8
NEW YORK 90.3%
$ 3,000 Cohoes, NY Indl Dev Agy Indl Dev Rev
Norlite Corp Proj Ser B (Prerefunded @
05/01/02)............................. 6.750% 05/01/09 $ 3,297,540
3,870 Grand Cent Dist Mgmt Assn Inc NY
Business Impt Dist Cap Impt
(Prerefunded @ 01/01/02) (b).......... 6.500 01/01/22 4,222,828
1,130 Groton, NY Cmnty Hlthcare Cent Inc
Hlthcare Fac Rev Groton Cmnty Ser A
(FHA Gtd)............................. 7.450 07/15/21 1,299,692
2,295 Metropolitan Tran Auth NY Svcs
Contract Commuter Fac Ser O........... 5.750 07/01/07 2,494,872
3,000 Metropolitan Tran Auth NY Svcs
Contract Tran Fac Ser 5 Rfdg.......... 7.000 07/01/12 3,243,360
1,355 Nassau Cnty, NY Genl Impt Ser Q (FGIC
Insd)................................. 5.200 08/01/13 1,421,639
1,100 Nassau Cnty, NY Genl Impt Ser Q (FGIC
Insd)................................. 5.200 08/01/14 1,149,808
3,765 New York City Cap Apprec Ser I
(Escrowed to Maturity) (FSA Insd)..... * 08/01/01 3,470,916
4,135 New York City Cap Apprec Ser I (FSA
Insd)................................. * 08/01/01 3,812,015
2,500 New York City Indl Dev Agy Civic Fac
Rev The Lighthouse Inc. (Prerefunded @
07/01/02)............................. 6.500 07/01/22 2,749,125
2,000 New York City Ser A................... 7.000 08/01/04 2,268,900
5,260 New York City Ser B................... 6.600 10/01/16 5,732,611
4,740 New York City Ser B (Prerefunded @
10/01/02)............................. 6.600 10/01/16 5,234,619
960 New York City Ser D................... 6.500 02/15/06 1,074,422
1,790 New York City Ser D (Prerefunded @
02/15/05)............................. 6.500 02/15/06 2,029,932
30 New York City Ser D................... 7.500 02/01/16 33,058
5 New York City Ser D................... 7.500 02/01/17 5,510
1,985 New York City Ser D (Prerefunded @
02/01/02)............................. 7.500 02/01/16 2,209,940
995 New York City Ser D (Prerefunded @
02/01/02)............................. 7.500 02/01/17 1,107,753
2,300 New York City Ser G Rfdg.............. 5.700 08/01/08 2,458,884
1,000 New York City Subser A1 (Embedded
Swap)................................. 5.435 08/01/12 1,068,090
1,000 New York St Dorm Auth Rev Court Fac
Lease Ser A........................... 5.625 05/15/13 1,039,880
1,500 New York St Dorm Auth Rev Court Fac
Lease Ser A........................... 5.375 05/15/16 1,516,905
</TABLE>
See Notes to Financial Statements
9
<PAGE> 11
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 2,500 New York St Dorm Auth Rev Grace Manor
Hlthcare Fac.......................... 6.150% 07/01/18 $ 2,761,375
4,460 New York St Dorm Auth Rev Mtg KMH
Homes Inc. (FHA Gtd).................. 6.950 08/01/31 4,755,520
1,835 New York St Dorm Auth Rev NY Pub Lib
Ser A (MBIA Insd)..................... * 07/01/02 1,631,168
1,910 New York St Dorm Auth Rev NY Pub Lib
Ser A (MBIA Insd)..................... * 07/01/03 1,627,225
1,000 New York St Dorm Auth Rev Nyack Hosp
Rfdg.................................. 6.250 07/01/13 1,060,750
5,010 New York St Dorm Auth Rev St Univ Edl
Fac Ser B Rfdg........................ 5.250 05/15/19 5,144,819
1,000 New York St Dorm Auth Revs NY Univ Ser
A (a)................................. 5.250 07/01/06 1,041,200
1,000 New York St Dorm Auth Revs NY Univ Ser
A (a)................................. 5.250 07/01/07 1,043,320
4,100 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 4,316,890
1,500 New York St Energy Resh & Dev Auth Gas
Fac Rev Brooklyn Union Gas Ser B (MBIA
Insd)................................. 6.750 02/01/24 1,633,710
4,000 New York St Energy Resh & Dev Auth Gas
Fac Rev Brooklyn Union Gas Ser C (MBIA
Insd) (b)............................. 5.600 06/01/25 4,149,280
800 New York St Environmental Fac Corp
Pollutn Ctl Rev St Wtr Rev............ 6.600 06/15/09 904,480
1,200 New York St Environmental Fac Corp
Pollutn Ctl Rev St Wtr Rev
(Prerefunded @ 06/15/04).............. 6.600 06/15/09 1,364,796
3,500 New York St Hsg Fin Agy Rev
Multi-Family Hsg Secured Mtg Pgm Ser
A..................................... 7.050 08/15/24 3,763,340
1,885 New York St Hsg Fin Agy Rev
Multi-Family Hsg Secured Mtg Pgm Ser
C..................................... 6.950 08/15/24 1,987,676
1,970 New York St Loc Govt Assistance Corp
Ser B (Prerefunded 04/01/01).......... 7.250 04/01/07 2,141,035
4,675 New York St Med Care Fac Fin Agy Rev
Hosp & Nursing Home Methodist Ser A
(Prerefunded @ 08/15/02) (FHA Gtd).... 6.700 08/15/23 5,156,946
935 New York St Med Care Fac Fin Agy Rev
Long Term Hlthcare Ser A (FSA Insd)... 6.800 11/01/14 1,023,451
</TABLE>
See Notes to Financial Statements
10
<PAGE> 12
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 300 New York St Med Care Fac Fin Agy Rev
Mental Hlth Svcs Fac Ser C............ 7.300% 02/15/21 $ 326,193
570 New York St Med Care Fac Fin Agy Rev
Mental Hlth Svcs Fac Ser C
(Prerefunded @ 08/15/01).............. 7.300 02/15/21 626,652
2,050 New York St Med Care Fac Fin Agy Rev
Saint Peter's Hosp Proj Ser A (AMBAC
Insd)................................. 5.375 11/01/20 2,093,932
3,735 New York St Med Care Facs Fin Agy Rev
Hosp & Nurs Ser B..................... 6.950 02/15/32 4,120,788
765 New York St Med Care Facs Fin Agy Rev
Hosp & Nurs Ser B (Prerefunded @
02/15/02)............................. 6.950 02/15/32 844,017
4,000 New York St Mtg Agy Rev Homeowner Mtg
Ser 28................................ 7.050 10/01/23 4,246,520
2,000 New York St Mtg Agy Rev Homeowner Mtg
Ser 42................................ 6.400 10/01/20 2,087,900
1,755 New York St Mtg Agy Rev Homeowner Mtg
Ser 52................................ 6.100 04/01/26 1,871,602
1,000 New York St Muni Bond Bk Agy Spl Pgm
Rev Buffalo Ser A..................... 6.875 03/15/06 1,078,630
2,000 New York St Thruway Auth Svc Contract
Rev Loc Hwy & Brdg.................... 5.750 04/01/08 2,172,180
2,500 New York St Urban Dev Corp Rev
Correctional Cap Fac Ser A Rfdg....... 5.500 01/01/14 2,659,500
1,625 New York St Urban Dev Corp Rev Proj
Cent for Indl Innovation Rfdg......... 5.500 01/01/13 1,730,381
20,000 New York St Urban Dev Corp Rev St
Office South Mall Ser A............... * 01/01/11 10,409,400
1,750 Niagara Falls, NY Brdg Comm Toll Rev
(Prerefunded @ 10/01/02) (FGIC
Insd)................................. 6.125 10/01/19 1,921,588
4,500 Port Auth NY & NJ Cons 97th Ser (FGIC
Insd) (b)............................. 6.650 01/15/23 5,020,425
2,000 Port Auth NY & NJ Delta Airls Inc Proj
Ser 1R................................ 6.950 06/01/08 2,162,420
4,000 Port Auth NY & NJ Spl Oblig Rev Spl
Proj JFK Intl Arpt Terminal 6 (MBIA
Insd)................................. 5.750 12/01/25 4,240,080
2,315 Rensselaer, NY Hsg Auth Multi-Family
Rev Mtg Renwyck Pl Ser A.............. 7.650 01/01/11 2,526,822
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 2,140 Rensselaer, NY Hsg Auth Multi-Family
Rev Mtg Van Rensselaer Heights Ser A.. 7.750% 01/01/11 $ 2,342,144
1,825 Syracuse, NY Ctfs Partn Syracuse
Hancock Intl Arpt..................... 6.625 01/01/12 1,935,504
------------
152,865,958
------------
GUAM 3.9%
2,000 Guam Arpt Auth Rev Ser B.............. 6.400 10/01/05 2,184,800
3,000 Guam Govt Ltd Oblig Hwy Ser A
(FSA Insd)............................ 6.250 05/01/07 3,259,410
1,000 Guam Pwr Auth Rev Ser A............... 6.625 10/01/14 1,112,510
------------
6,556,720
------------
PUERTO RICO 5.6%
5,000 Puerto Rico Comwlth Hwy & Tran Auth
Hwy Rev Ser Y Rfdg (Embedded Cap)
(FSA Insd)............................ 5.730 07/01/21 5,858,400
2,250 Puerto Rico Comwlth Pub Impt
(Prerefunded @ 07/01/02).............. 6.800 07/01/21 2,497,072
1,000 Puerto Rico Pub Bldgs Auth Rev Gtd Ser
K (Prerefunded @ 07/01/02) (b)........ 6.875 07/01/21 1,112,030
------------
9,467,502
------------
TOTAL LONG-TERM INVESTMENTS 99.8%
(Cost $152,192,679)............................................... 168,890,180
SHORT-TERM INVESTMENTS 0.2%
(Cost $300,000)................................................... 300,000
------------
TOTAL INVESTMENTS 100.0%
(Cost $152,492,679)............................................... 169,190,180
LIABILITIES IN EXCESS OF OTHER ASSETS 0.0%......................... (46,259)
------------
NET ASSETS 100.0%.................................................. $169,143,921
============
</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.
AMBAC--AMBAC Indemnity Corporation
FGIC--Financial Guaranty Insurance Company
FHA--Federal Housing Administration
FSA--Financial Security Assurance Inc.
MBIA--Municipal Bond Investors Assurance Corp.
See Notes to Financial Statements
12
<PAGE> 14
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $152,492,679)....................... $169,190,180
Cash........................................................ 62,145
Interest Receivable......................................... 2,355,258
Other....................................................... 1,514
------------
Total Assets.......................................... 171,609,097
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 2,059,300
Income Distributions--Common and Preferred Shares......... 94,607
Investment Advisory Fee................................... 90,449
Administrative Fee........................................ 27,831
Affiliates................................................ 14,540
Trustees' Deferred Compensation and Retirement Plans........ 98,788
Accrued Expenses............................................ 79,661
------------
Total Liabilities..................................... 2,465,176
------------
NET ASSETS.................................................. $169,143,921
============
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000
shares, 2,400 issued with liquidation preference of
$25,000 per share)........................................ $ 60,000,000
------------
Common Shares ($.01 par value with an unlimited number of
shares authorized, 6,203,651 shares issued and
outstanding).............................................. 62,037
Paid in Surplus............................................. 91,279,413
Net Unrealized Appreciation................................. 16,697,501
Accumulated Undistributed Net Investment Income............. 1,118,932
Accumulated Net Realized Loss............................... (13,962)
------------
Net Assets Applicable to Common Shares................ 109,143,921
------------
NET ASSETS.................................................. $169,143,921
============
NET ASSET VALUE PER COMMON SHARE ($109,143,921 divided
by 6,203,651 shares outstanding).......................... $ 17.59
============
</TABLE>
See Notes to Financial Statements
13
<PAGE> 15
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 4,885,355
-----------
EXPENSES:
Investment Advisory Fee..................................... 547,472
Administrative Fee.......................................... 168,453
Preferred Share Maintenance................................. 75,061
Trustees' Fees and Related Expenses......................... 12,839
Custody..................................................... 6,697
Legal....................................................... 5,480
Other....................................................... 91,658
-----------
Total Expenses.......................................... 907,660
-----------
NET INVESTMENT INCOME....................................... $ 3,977,695
===========
REALIZED AND UNREALIZED GAIN/LOSS ON INVESTMENTS:
Net Realized Loss........................................... $ (13,962)
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 18,181,816
End of the Period......................................... 16,697,501
-----------
Net Unrealized Depreciation During the Period............... (1,484,315)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $(1,498,277)
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 2,479,418
===========
</TABLE>
See Notes to Financial Statements
14
<PAGE> 16
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 1999
and the Year Ended October 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1999 October 31, 1998
- --------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income............................. $ 3,977,695 $ 8,019,002
Net Realized Gain/Loss............................ (13,962) 38,013
Net Unrealized Appreciation/Depreciation During
the Period...................................... (1,484,315) 3,141,562
----------- ------------
Change in Net Assets from Operations.............. 2,479,418 11,198,577
----------- ------------
Distributions from Net Investment Income:
Common Shares................................... (2,940,478) (5,853,250)
Preferred Shares................................ (945,475) (2,075,399)
----------- ------------
(3,885,953) (7,928,649)
----------- ------------
Distributions from Net Realized Gain:
Common Shares................................... (28,213) (152,715)
Preferred Shares................................ (9,800) (54,048)
----------- ------------
(38,013) (206,763)
----------- ------------
Total Distributions............................... (3,923,966) (8,135,412)
----------- ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT
ACTIVITIES...................................... (1,444,548) 3,063,165
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestments................................... 47,424 -0-
----------- ------------
TOTAL INCREASE/DECREASE IN NET ASSETS............. (1,397,124) 3,063,165
NET ASSETS:
Beginning of the Period........................... 170,541,045 167,477,880
----------- ------------
End of the Period (Including accumulated
undistributed net investment income of
$1,118,932 and $1,027,190, respectively)........ $169,143,921 $170,541,045
=========== ============
</TABLE>
See Notes to Financial Statements
15
<PAGE> 17
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one common share
of the Trust outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
April 30, --------------------
1999 1998 1997
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of the Period (a)..... $ 17.826 $ 17.332 $ 16.634
-------- -------- --------
Net Investment Income............................ .641 1.293 1.284
Net Realized and Unrealized Gain/Loss............ (.241) .514 .695
-------- -------- --------
Total from Investment Operations................. .400 1.807 1.979
-------- -------- --------
Less:
Distributions from Net Investment Income:
Paid to Common Shareholders.................. .474 .944 .900
Common Share Equivalent of Distributions Paid
to Preferred Shareholders.................. .152 .335 .337
Distributions from Net Realized Gain
Paid to Common Shareholders.................. .005 .025 .032
Common Share Equivalent of Distributions Paid
to Preferred Shareholders.................. .002 .009 .012
-------- -------- --------
Total Distributions.............................. .633 1.313 1.281
-------- -------- --------
Net Asset Value, End of the Period............... $ 17.593 $ 17.826 $ 17.332
======== ======== ========
Market Price Per Share at End of the Period...... $17.1250 $17.6875 $15.5625
Total Investment Return at Market Price (b)...... (.52%)* 20.29% 13.08%
Total Return at Net Asset Value (c).............. 1.32%* 8.69% 10.12%
Net Assets at End of the Period (In millions).... $169.1 $170.5 $167.5
Ratio of Expenses to Average Net Assets
Applicable to Common Shares (d)(2)............. 1.67% 1.66% 1.70%
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (e)......... 5.57% 5.45% 5.63%
Portfolio Turnover............................... 2%* 1% 8%
* Non-Annualized
(1) If certain expenses had not been assumed by the investment adviser for the period
ended October 31, 1992, the annualized ratios of expenses to average net assets
applicable to common shares, expenses to average net assets including preferred
shares and net investment income to average net assets applicable to common shares
would have been 1.58%, 1.10% and 5.19%, respectively.
(2) Ratio of Expenses to Average Net Assets
Including Preferred Shares.................. 1.08% 1.07% 1.08%
</TABLE>
(a) Net Asset Value at March 27, 1992 is adjusted for common and preferred share
offering costs of $.258 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) Beginning with the year ended October 31, 1995, the Ratios of Expenses are
based upon Total Expenses which does not reflect credits earned on overnight
cash balances.
(e) Net Investment Income is adjusted for the common share equivalent of
distributions paid to preferred shareholders.
16
<PAGE> 18
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 27, 1992
(Commencement
Year Ended October 31, of Investment
- --------------------------------- Operations) to
1996 1995 1994 1993 October 31, 1992
- -----------------------------------------------------------------
<S> <C> <C> <C> <C>
$16.487 $14.801 $17.621 $14.812 $ 14.742
------- ------- ------- ------- --------
1.302 1.303 1.337 1.352 .607
.097 1.783 (2.869) 2.766 .027
------- ------- ------- ------- --------
1.399 3.086 (1.532) 4.118 .634
------- ------- ------- ------- --------
.900 1.000 1.020 1.020 .425
.352 .384 .268 .289 .139
-0- .013 -0- -0- -0-
-0- .003 -0- -0- -0-
------- ------- ------- ------- --------
1.252 1.400 1.288 1.309 .564
------- ------- ------- ------- --------
$16.634 $16.487 $14.801 $17.621 $ 14.812
======= ======= ======= ======= ========
$14.625 $14.375 $13.125 $17.125 $ 15.000
8.09% 17.49% (18.07%) 21.52% 2.79%*
6.50% 18.88% (10.55%) 26.50% 1.48%*
$163.2 $162.2 $151.8 $169.3 $151.8
1.73% 1.78% 1.70% 1.62% 1.49%(1)
5.78% 5.89% 6.55% 6.45% 5.28%(1)
20% 54% 38% 18% 24%*
1.09% 1.10% 1.07% 1.02% 1.03%(1)
</TABLE>
See Notes to Financial Statements
17
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen Trust for Investment Grade New York Municipals (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 substantially all of its assets in New York
municipal securities rated investment grade at the time of investment. The Trust
commenced investment operations on March 27, 1992.
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--Municipal bonds are valued by independent pricing
services or dealers using the mean of the bid and asked prices or, in the
absence of market quotations, at fair value based upon yield data relating to
municipal bonds with similar characteristics and general market conditions.
Securities which are not valued by independent pricing services are valued at
fair value using 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.
18
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
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 April 30, 1999, for federal income tax purposes, cost of long- and
short-term investments is $152,492,679; the aggregate gross unrealized
appreciation is $16,697,501 and the aggregate gross unrealized depreciation is
$0, resulting in net unrealized appreciation on long- and short-term investments
of $16,697,501.
E. DISTRIBUTION OF INCOME AND GAINS--The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, which are included as ordinary income for tax
purposes.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen
Investment Advisory Corp. (the "Adviser") will provide investment advice and
facilities to the Trust for an annual fee payable monthly of .65% 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
daily 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.
For the six months ended April 30, 1999, the Trust recognized expenses of
approximately $1,300 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 April 30, 1999, the Trust recognized expenses of
approximately $31,900 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.
19
<PAGE> 21
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
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 April 30, 1999 and October 31, 1998, common shares paid in surplus aggregated
$91,279,413 and $91,232,016, respectively. Transactions in common shares were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998
- --------------------------------------------------------------------------
<S> <C> <C>
Beginning Shares...................... 6,200,987 6,200,987
Shares Issued Through Dividend
Reinvestment........................ 2,664 0
--------- ---------
Ending Shares......................... 6,203,651 6,200,987
========= =========
</TABLE>
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sale of investments,
excluding short-term investments, were $4,654,528 and $2,690,773, respectively.
5. DERIVATIVE FINANCIAL INSTRUMENTS
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
The Trust uses Indexed Securities, a type of derivative instrument, as a
hedge against a rise in short-term interest rates which are paid on the Trust's
preferred shares. All of the Trust's portfolio holdings, including derivative
instruments, are marked to market each day with the change in value reflected in
the unrealized appreciation/depreciation. Upon disposition, a realized gain or
loss is recognized accordingly.
The following types of Indexed Securities are identified in the portfolio of
investments. The price of these securities may be more volatile than the price
of a comparable fixed rate security.
A. EMBEDDED CAPS--These securities include 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.
20
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
B. EMBEDDED SWAPS--These securities include a swap component such that the fixed
coupon component of the underlying bond is adjusted by the difference between
the security's fixed swap rate and the floating swap index.
6. PREFERRED SHARES
Effective with the close of business on April 23, 1999, the liquidation
preference on the Trust's preferred shares decreased from $50,000 to $25,000 per
share. This decrease was effected by means of a 2 for 1 stock split that doubled
the Trust's number of outstanding preferred shares. The total liquidation value
for the Trust was unchanged.
As of April 30, 1999, the Trust has outstanding 2,400 Auction Preferred
Shares ("APS"). Dividends are cumulative and the dividend rate is currently
reset every 28 days through an auction process. The rate in effect on April 30,
1999, was 3.070%. During the six months ended April 30, 1999, the rates ranged
from 2.900% to 3.625%.
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 $25,000 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.
21
<PAGE> 23
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
changes 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 Inc.
Attn: Closed-End Funds
2800 Post Oak Blvd.
Houston, TX 77056
22
<PAGE> 24
VAN KAMPEN FUNDS
EQUITY FUNDS
Domestic
Aggressive Equity
Aggressive Growth
American Value
Comstock
Emerging Growth
Enterprise
Equity Growth
Equity Income
Growth
Growth and Income
Harbor
Pace
Real Estate Securities
Utility
Value
Global/International
Asian Growth
Emerging Markets
European Equity
Global Equity
Global Equity Allocation
Global Franchise
Global Managed Assets
International Magnum
Latin American
FIXED-INCOME FUNDS
Income
Corporate Bond
Global Fixed Income
Global Government Securities
Government Securities
High Income Corporate Bond
High Yield
High Yield & Total Return
Limited Maturity Government
Short-Term Global Income
Strategic Income
U.S. Government
U.S. Government Trust for Income
Worldwide High Income
Tax Exempt Income
California Insured Tax Free
Florida Insured Tax Free Income
High Yield Municipal
Insured Tax Free Income
Intermediate Term Municipal Income
Municipal Income
New York Tax Free Income
Pennsylvania Tax Free Income
Tax Free High Income
Capital Preservation
Reserve
Tax Free Money
SENIOR LOAN
Prime Rate Income Trust
Senior Floating Rate
To find out more about any of these funds, ask your financial advisor 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 fund prospectus or to receive additional
fund information, choose from one of the following:
- - visit our Web site at WWW.VANKAMPEN.COM--to view a prospectus, select Download
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.VANKAMPEN.COM and selecting Contact Us
23
<PAGE> 25
VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
BOARD OF TRUSTEES
DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
DENNIS J. MCDONNELL*--Chairman
STEVE MULLER
THEODORE A. MYERS
DON G. POWELL*
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN*
OFFICERS
DENNIS J. MCDONNELL*
President
A. THOMAS SMITH, III*
Vice President and Secretary
JOHN L. SULLIVAN*
Vice President, Treasurer and Chief Financial Officer
CURTIS W. MORELL*
Vice President and Chief Accounting Officer
TANYA M. LODEN*
Controller
PETER W. HEGEL*
EDWARD C. WOOD, III*
Vice Presidents
INVESTMENT ADVISER
VAN KAMPEN
INVESTMENT ADVISORY CORP.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, Illinois 60181-5555
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 LLP
303 East Wacker Drive
Chicago, Illinois 60601
* "Interested" persons of the Trust, as defined in the Investment Company
Act of 1940.
(C) Van Kampen Funds Inc., 1999 All rights reserved.
(SM) denotes a service mark of Van Kampen Funds Inc.
24
<PAGE> 26
YEAR 2000 READINESS DISCLOSURE
Like other mutual funds, financial and business organizations and individuals
around the world, the Trust could be adversely affected if the computer systems
used by the Trust's investment adviser and other service providers do not
properly process and calculate date-related information and data from and after
January 1, 2000. This is commonly known as the "Year 2000 Problem." The Trust's
investment adviser is taking steps that it believes are reasonably designed to
address the Year 2000 Problem with respect to computer systems that it uses and
to obtain reasonable assurances that comparable steps are being taken by the
Trust's other major service providers. At this time, there can be no assurances
that these steps will be sufficient to avoid any adverse impact to the Trust. In
addition, the Year 2000 Problem may adversely affect the markets and the issuers
of securities in which the Trust may invest that, in turn, may adversely affect
the net asset value of the Trust. Improperly functioning trading systems may
result in settlement problems and liquidity issues. In addition, corporate and
governmental data processing errors may result in production problems for
individual companies or issuers and overall economic uncertainty. Earnings of
individual issuers will be affected by remediation costs, which may be
substantial and may be reported inconsistently in U.S. and foreign financial
statements. Accordingly, the Trust's investments may be adversely affected. The
statements above are subject to the Year 2000 Information and Readiness
Disclosure Act, which may limit the legal rights regarding the use of such
statements in the case of dispute.
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<NAME> TR. FOR INV. GRADE NEW YORK MUNICIPAL
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