<PAGE> 1
<TABLE>
<S> <C>
Table of Contents
OVERVIEW
LETTER TO SHAREHOLDERS 1
ECONOMIC SNAPSHOT 2
PERFORMANCE SUMMARY
RETURN HIGHLIGHTS 3
PORTFOLIO AT A GLANCE
CREDIT QUALITY 4
SIX-MONTH DIVIDEND HISTORY 4
TOP FIVE INDUSTRIES 5
NET ASSET VALUE AND MARKET PRICE 5
Q&A WITH YOUR PORTFOLIO MANAGERS 6
GLOSSARY OF TERMS 10
BY THE NUMBERS
YOUR TRUST'S INVESTMENTS 11
FINANCIAL STATEMENTS 17
NOTES TO FINANCIAL STATEMENTS 22
TRUST OFFICERS AND IMPORTANT ADDRESSES 25
</TABLE>
It is times like these when money-management experience may make a difference.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
<PAGE> 2
OVERVIEW
LETTER TO SHAREHOLDERS
May 19, 2000
Dear Shareholder,
Whether you have held your Trust for years or just joined the Van Kampen family
of shareholders in the last few months, you are likely to have questions and
even some concerns about how recent market volatility has affected your
investment. I encourage you to review the following Q&A in which your portfolio
manager provides an update on how your Trust is being managed in this
environment.
It is times like these when money-management experience may make a difference.
Toward that end, you should know that Van Kampen is one of the nation's oldest
investment-management firms, with a history of money management dating back to
1926. Our portfolio managers have invested in all types of market
conditions--during bull and bear markets, periods of inflation and rising
interest rates, and now a technology revolution. We have managed money long
enough to understand short-term market volatility and the value of investing for
the long term.
As we head into the second half of 2000, count on us to
continue to draw on the wisdom of our 76 years of experience.
Along those lines, Van Kampen's "Generations of Experience" is
the theme of a national advertising campaign that kicked off
this spring. The message emphasizes our depth of
investment-management history, as well as our firm belief that with the right
investments, anyone can realize life's true wealth.
Sincerely,
[SIG]
Richard F. Powers, III
President and CEO
Van Kampen Investments
1
<PAGE> 3
ECONOMIC SNAPSHOT
ECONOMIC GROWTH
ECONOMIC GROWTH REMAINED STRONG, PRIMARILY DUE TO ACTIVE CONSUMER AND BUSINESS
SPENDING. GROSS DOMESTIC PRODUCT, THE PRIMARY MEASURE OF ECONOMIC GROWTH,
INCREASED AT AN ANNUALIZED RATE OF 5.4 PERCENT IN THE FIRST QUARTER OF 2000.
WHILE THIS FIGURE INDICATES A MODEST SLOWDOWN FROM THE PREVIOUS TWO QUARTERS, IT
NEVERTHELESS REPRESENTS A HIGH RATE OF ECONOMIC GROWTH.
CONSUMER SPENDING AND EMPLOYMENT
INFLATION FEARS CONTINUED TO MOUNT BECAUSE OF STRONG CONSUMER SPENDING AND THE
TIGHT LABOR MARKET. FOR MOST OF THE REPORTING PERIOD, RISING INTEREST RATES DID
LITTLE TO REIN IN ROBUST CONSUMER SPENDING. ALTHOUGH RETAIL SALES GROWTH
MODERATED IN APRIL, THE FACTORS UNDERPINNING CONSUMER ACTIVITY REMAINED LARGELY
UNCHANGED--RISING WAGES, LOW UNEMPLOYMENT, AND A GENERALLY FAVORABLE (THOUGH
VOLATILE) STOCK MARKET.
IN ADDITION, THE JOBLESS RATE HOVERED NEAR ITS LOWEST LEVEL IN THREE DECADES.
THE EMPLOYMENT COST INDEX ACCELERATED SHARPLY IN THE FIRST QUARTER OF 2000,
REFLECTING RISING WAGES AS EMPLOYERS VIE TO ATTRACT AND RETAIN SKILLED WORKERS.
THESE WAGE PRESSURES, IN TURN, BEGAN TO AFFECT PRICES, AS COMPANIES STARTED TO
RAISE THE COST OF GOODS AND SERVICES TO COMPENSATE FOR HIGHER LABOR COSTS.
INTEREST RATES AND INFLATION
STRONG GDP DATA, CONSUMER SPENDING, AND EMPLOYMENT PROMPTED THE FEDERAL RESERVE
BOARD TO SEEK TO SLOW THE PACE OF ECONOMIC GROWTH AND WARD OFF INFLATION. THE
FED INCREASED THE FEDERAL FUNDS RATE BY 0.25 PERCENT FIVE TIMES BETWEEN JUNE
1999 AND APRIL 2000. [EDITOR'S NOTE: THE FED RAISED RATES BY 0.50 PERCENT ON MAY
16.] DESPITE THE FED'S CONCERNS, THE CONSUMER PRICE INDEX, A MEASURE OF
INFLATION, ROSE A MODERATE 3.0 PERCENT DURING THE 12 MONTHS ENDED APRIL 30,
2000.
INTEREST RATES AND INFLATION
(April 30, 1998 - April 30, 2000)
[LINE GRAPH]
<TABLE>
<CAPTION>
INTEREST RATES INFLATION
-------------- ---------
<S> <C> <C>
Apr 98 5.50 1.40
5.50 1.70
5.50 1.70
Jul 98 5.50 1.70
5.50 1.60
5.25 1.50
Oct 98 5.00 1.50
4.75 1.50
4.75 1.60
Jan 99 4.75 1.70
4.75 1.60
4.75 1.70
Apr 99 4.75 2.30
4.75 2.10
5.00 2.00
Jul 99 5.00 2.10
5.25 2.30
5.25 2.60
Oct 99 5.25 2.60
5.50 2.60
5.50 2.70
Jan 00 5.50 2.70
5.75 3.20
6.00 3.70
Apr 00 6.00 3.00
</TABLE>
Interest rates are represented by the closing midline federal funds target 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 SUMMARY
RETURN HIGHLIGHTS
(as of April 30, 2000)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
<S> <C> <C>
NYSE Ticker Symbol VTN
---------------------------------------------------------------------------
Six-month total return based on market price(1) 0.08%
---------------------------------------------------------------------------
Six-month total return based on NAV(2) 2.02%
---------------------------------------------------------------------------
Distribution rate as a % of closing common stock
price(3) 7.00%
---------------------------------------------------------------------------
Taxable-equivalent distribution rate as a % of closing
common stock price(4) 11.74%
---------------------------------------------------------------------------
Net asset value $16.14
---------------------------------------------------------------------------
Closing common stock price $14.750
---------------------------------------------------------------------------
Six-month high common stock price (11/01/99) $15.375
---------------------------------------------------------------------------
Six-month low common stock price (12/28/99) $13.500
---------------------------------------------------------------------------
Preferred share rate(5) 4.30%
---------------------------------------------------------------------------
</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 is no guarantee of 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
PORTFOLIO AT A GLANCE
CREDIT QUALITY
(as a percentage of long-term investments)
<TABLE>
<CAPTION>
As of April 30, 2000
<S> <C> <C>
- AAA/Aaa............ 34.3%
- AA/Aa.............. 26.7%
- A/A................ 34.0%
- BBB/Baa............ 5.0%
[PIE CHART]
<CAPTION>
As of October 31, 1999
<S> <C> <C>
- AAA/Aaa............ 38.9%
- AA/Aa.............. 19.4%
- A/A................ 19.8%
- BBB/Baa............ 18.3%
- Non-Rated.......... 3.6%
[PIE CHART]
</TABLE>
Based upon the highest credit quality ratings as issued by Standard & Poor's or
Moody's, respectively.
SIX-MONTH DIVIDEND HISTORY
(for the six months ending April 30, 2000, for common shares)
[BAR GRAPH]
<TABLE>
<CAPTION>
DIVIDENDS
---------
<S> <C>
11/99 0.083
12/99 0.083
1/00 0.083
2/00 0.083
3/00 0.086
4/00 0.086
</TABLE>
The dividend history represents past performance of the Trust and is no
guarantee of the Trust's future dividends.
4
<PAGE> 6
TOP FIVE INDUSTRIES
(as a percentage of long-term investments)
[INVESTMENT PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
APRIL 30, 2000 OCTOBER 31, 1999
-------------- ----------------
<S> <C> <C>
General Purpose 18.10 22.60
Transportation 13.70 15.50
Public Building 11.50 10.90
Other Care 8.00 8.70
Single-Family Housing 8.00 6.50
</TABLE>
NET ASSET VALUE AND MARKET PRICE
(based upon quarter-end values--March 1992 through April 2000)
[INVESTMENT PERFORMANCE GRAPH]
<TABLE>
<CAPTION>
NET ASSET VALUE MARKET PRICE
--------------- ------------
<S> <C> <C>
3/92 14.9100 14.9100
15.2800 15.5000
15.4300 15.1250
15.5000 15.1250
3/93 16.4400 16.2500
16.9900 16.3750
17.6900 16.7500
17.5800 16.5000
3/94 15.8500 15.0000
15.5800 14.7500
15.3400 14.0000
14.4900 12.7500
3/95 15.7500 14.2500
16.0300 14.5000
16.2200 14.1250
17.1000 14.5000
3/96 16.2900 14.2500
16.1000 14.6250
16.4500 14.6250
16.7100 14.6250
3/97 16.3600 14.3750
16.8900 15.3750
17.2900 15.6250
17.5600 16.8125
3/98 17.5300 16.6250
17.5400 16.6875
17.9500 17.5000
17.7500 17.6875
3/99 17.6000 17.3125
16.9300 16.3120
16.6000 15.8125
16.1800 14.1250
16.3700 14.6250
4/00 16.1400 14.7500
</TABLE>
The solid line above represents the Trust's net asset value (NAV), which
indicates overall changes in value among the Trust's underlying securities. The
Trust's market price is represented by the dashed line, which indicates the
price the market is willing to pay for shares of the Trust at a given time.
Market price is influenced by a range of factors, including supply and demand
and market conditions.
5
<PAGE> 7
Q&A WITH YOUR PORTFOLIO MANAGERS
WE RECENTLY SPOKE WITH REPRESENTATIVES OF THE ADVISER OF THE VAN KAMPEN TRUST
FOR INVESTMENT GRADE NEW YORK MUNICIPALS ABOUT THE KEY EVENTS AND ECONOMIC
FORCES THAT SHAPED THE MARKETS DURING THE PAST SIX MONTHS. THE REPRESENTATIVES
INCLUDE DENNIS S. PIETRZAK, PORTFOLIO MANAGER, WHO HAS MANAGED THE TRUST SINCE
1995 AND WORKED IN THE INVESTMENT INDUSTRY SINCE 1968. THE FOLLOWING COMMENTS
REFLECT THE REPRESENTATIVES' VIEWS ON THE TRUST'S PERFORMANCE DURING THE SIX
MONTHS ENDED APRIL 30, 2000.
Q WHAT WERE THE MOST IMPORTANT
DEVELOPMENTS IN THE FIXED-INCOME MARKETS DURING THE REPORTING PERIOD?
A Generally higher interest rates,
sparked by inflation worries, set the tone for the fixed-income markets during
the past six months. As the economy continued its strong advance, the markets
reacted warily to signs of potential inflationary pressures--such as rising
employment costs, healthy job growth, strong consumer spending, and spikes in
commodities prices, especially oil. These concerns fueled a steady sell-off
through the fourth quarter of 1999 and into January 2000.
To slow the economy and keep prices from rising, the Federal Reserve Board
gradually pushed short-term interest rates higher, raising the fed funds rate (a
key short-term lending rate) three times between November 1999 and April 2000.
(Editor's note: On May 16, 2000, after the reporting period ended, the Fed
raised rates a fourth time.)
In times of rising interest rates, bond prices trend downward. Add to that
the lingering effects of the Year 2000 (Y2K) computer scare early in the first
quarter of 2000, and you can see why this was a challenging period for many
fixed-income investors.
Q HOW DID THE MUNICIPAL
BOND MARKET REACT TO THESE CONDITIONS?
A Not surprisingly, higher interest
rates hurt municipal bond prices, but we believe there's always opportunity in
the market. In the past few months, we've actually seen some fairly significant
price swings--both up and down--as investors tried to anticipate the Fed's next
move and the direction of interest rates. The market was weak in late 1999 and
early 2000, but we had a nice rally in February and March, which tapered off in
April.
The strong economy has bolstered the financial condition of many
municipalities across the country, so the pace of new municipal bond issuance
dropped sharply (about 40 percent) from a year ago. With their coffers full,
municipalities haven't needed to turn to the bond market for financing. Also,
6
<PAGE> 8
higher interest rates made it more difficult for issuers to refund outstanding
bond issues, which has been a source of new investment opportunities in the
past.
Q HOW WOULD YOU DESCRIBE NEW
YORK'S ECONOMIC AND MUNICIPAL MARKET ENVIRONMENT DURING THE PERIOD?
A Strong economic gains, particularly
in New York City, contributed to rising state tax revenues and helped build
general fund surpluses. Improved fiscal management has led to increased
financial reserves, which might be used to reduce outstanding debt. Momentum in
the state economy continues to be driven by New York City and the metropolitan
area, though upstate counties and cities have recently shown a pick-up in
economic activity. Though overall issuance is down, New York continued to be one
of the most active municipal markets, ranking second in the nation for bond
sales volume in 1999 and in the first quarter of 2000.
Q WHAT STRATEGIES DID YOU FOLLOW
IN MANAGING THE TRUST?
A Strategically, we've been moving in
a new direction since early this year. We made the decision to manage the Trust
relative to a new benchmark, rather than the Lipper peer group, which meant that
we needed to make some adjustments to the Trust's structure. The Trust's
benchmark is now the Lehman Brothers New York Municipal Bond Index with
maturities greater than five years. Specifically, we increased the duration of
the portfolio (a measure of its sensitivity to changes in interest rates) to
more closely track the performance of the new benchmark index. The benchmark
provides the shareholder with general municipal market returns, and the
leveraged structure provides the opportunity for enhanced dividends.
Fortunately, the municipal bond market played into our hands and gave us
some excellent opportunities to implement this new strategy. Beginning in late
January, we began purchasing deeply discounted bonds. These were securities that
had been issued a year or so ago with coupons of 4.75, 5.00, or 5.25 percent. As
interest rates went up over time, these bonds began selling at a deep discount,
with some as low as 80 cents on the dollar.
At the same time, the Trust held a number of older, prerefunded issues with
higher coupons in the 6.50 to 7.50 percent range. Such prerefunded issues tend
to decrease the duration of a portfolio because they have shorter lives than
their stated maturities. But because of their attractive coupons, these bonds
were trading at a premium to par, presenting us with an opportunity to capture
some solid capital gains. Because these bonds were scheduled to be called or
refunded within the next year or two, we chose to sell them while the demand for
them--and therefore their market price--was high.
This combination of buying deep-discount bonds and selling prerefunded
issues enabled us to lengthen the duration of the portfolio without drastically
altering the income
7
<PAGE> 9
stream that the Trust will be earning over time. While we've seen a slight
decline in portfolio income in the short run, buying the deeply discounted bonds
enabled us to purchase more par value per dollar invested. In some cases, for
example, we were able to pick up $1 million worth of bond par value for just
$800,000.
Q WHAT AREAS OF THE MUNICIPAL
MARKET WERE MOST ATTRACTIVE TO YOU?
A Our philosophy is to seek bonds
that we feel represent the best values compared with similar offerings in the
marketplace. During the past six months, we did not specifically target one area
of the market over another. We did, however, maintain significant concentrations
in certain sectors, including general purpose, transportation, and public
building bonds, each of which represented more than 11 percent of the
portfolio's long-term investments.
Many of our portfolio-management decisions were based on pricing issues,
such as the availability of deep discounts, or structural issues, such as
extending duration or maintaining adequate call protection and diversification
for the portfolio. For additional portfolio highlights, please refer to page 4.
Q HOW DID THE TRUST PERFORM
DURING THE PERIOD?
A For the six-month period ended
April 30, 2000, the Trust returned 0.08 percent based on market price. At the
same time, the Trust's market price decreased from $15.25 per share on October
31, 1999, to $14.75 per share on April 30, 2000. By comparison, the total return
of the Trust's peer group (as represented by the Lehman Brothers New York
Municipal Bond Index) was 2.77 percent for the same period.
In addition, the Trust's dividend was increased to $0.086 per share, up from
$0.083 per share, in March 2000 reflecting a slight increase in the Trust's
income stream. This monthly tax-exempt dividend translates to a distribution
rate of 7.00 percent based on the Trust's closing common stock price on April
30, 2000.
Because the Trust is exempt from federal and New York income taxes, this
distribution rate is equivalent to a yield of 11.74 percent for an investor in
the 40.4 percent combined federal and state income-tax bracket. Please refer to
the chart and footnotes on page 3 for additional performance results. Past
performance is no guarantee of future results.
Q WHAT DO YOU SEE AHEAD
FOR THE ECONOMY AND THE MUNICIPAL MARKET?
A All eyes will be on the key
economic statistics, such as GDP growth, employment costs, and the unemployment
rate. These figures measure the economy's strength and rate of growth and may
influence whether the Fed will continue to raise short-term interest rates. We
expect that the inflation rate may increase, but it's likely to remain in a
moderate range for the near term. It's
8
<PAGE> 10
anticipated that the Fed will continue to increase short-term rates by the end
of the summer, perhaps by more than 0.50 percent. Higher interest rates will, in
turn, put pressure on the municipal market in the short run.
Increased stock-price volatility in April has increased investor skepticism,
but investors continue to see price pullbacks as opportunities to buy
aggressive-growth stocks. It may take a much deeper, more sustained decline in
these stocks to convince investors to rethink their asset allocation decisions.
If the stock market does fall sharply, we could see a flight to quality, as
investors pursue investments that typically carry less risk. Such conditions
might benefit investment-grade municipal bonds.
Low municipal-bond supply could continue throughout 2000, especially if
interest rates trend higher, as expected, throughout the first half of the year.
Overall, the lower supply of bonds should help to shore up prices, as demand
remains strong. Investors can tolerate periodic price swings if they keep
long-term perspectives and continue to value the steady stream of tax-exempt
income that municipal bonds provide. As always, we will rely on our strong
research efforts to evaluate opportunities in the marketplace and identify
securities that may offer superior investment potential and value over time.
9
<PAGE> 11
GLOSSARY OF TERMS
A HELPFUL GUIDE TO SOME OF THE COMMON TERMS YOU'RE LIKELY TO SEE IN THIS REPORT
AND OTHER FINANCIAL PUBLICATIONS.
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.
DURATION: A measure of the sensitivity of a bond's price to changes in interest
rates, expressed in years. Each year of duration represents an expected 1
percent change in the price of a bond for every 1 percent change in interest
rates. The longer a bond's duration, the greater the effect of interest-rate
movements on its price. Typically, funds with shorter durations perform better
in rising rate environments, while funds with longer durations perform better
when rates decline.
INFLATION: A persistent and measurable rise in the general level of prices.
Inflation is widely measured by the Consumer Price Index, an economic indicator
that measures the change in the cost of purchased goods and services.
MATURITY DATE: The date a bond expires, usually at face value.
MATURITY LENGTH: The time it takes for a bond to mature. A bond issued in 1999
and maturing in 2009 is a 10-year bond.
PREREFUNDING: The process of issuing new bonds to refinance an outstanding
municipal bond issue prior to its maturity or call date. The proceeds from the
new bonds are generally invested in U.S. government securities. Prerefunding
typically occurs when interest rates decline and an issuer replaces its
higher-yielding bonds with current lower-yielding issues.
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.
10
<PAGE> 12
BY THE NUMBERS
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
THE FOLLOWING PAGES DETAIL THE SPECIFIC HOLDINGS OF YOUR TRUST AT THE END OF THE
REPORTING PERIOD.
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
MUNICIPAL BONDS 101.0%
NEW YORK 91.0%
$3,000 Cohoes, NY Indl Dev Agy Indl Dev Rev
Norlite Corp Proj Ser B (Prerefunded @
05/01/02)............................. 6.750% 05/01/09 $ 3,153,930
3,870 Grand Cent Dist Mgmt Assn Inc NY
Business Impt Dist Cap Impt
(Prerefunded @ 01/01/02) (b).......... 6.500 01/01/22 4,048,717
1,115 Groton, NY Cmnty Hlthcare Cent Inc
Hlthcare Fac Rev Groton Cmnty Ser A
(FHA Gtd)............................. 7.450 07/15/21 1,222,073
5,000 Long Island Pwr Auth NY Cap Apprec
(FSA Insd) (a)........................ * 06/01/19 1,624,850
2,295 Metropolitan Tran Auth NY Svcs
Contract Commuter Fac Ser O........... 5.750 07/01/07 2,342,736
2,000 Metropolitan Tran Auth NY Svcs
Contract Tran Fac Ser 5 Rfdg.......... 7.000 07/01/12 2,082,300
6,940 New York City Cap Apprec Ser I
(Escrowed to Maturity) (FSA Insd)..... * 08/01/01 6,532,900
960 New York City Cap Apprec Ser I (FSA
Insd)................................. * 08/01/01 903,686
2,500 New York City Indl Dev Agy Civic Fac
Rev The Lighthouse Inc. (Prerefunded @
07/01/02) (LOC: Chase Manhattan
Bank)................................. 6.500 07/01/22 2,628,750
3,200 New York, NY City Muni Wtr Fin Auth
Wtr & Swr Sys Rev Ser A (FGIC Insd)... 4.750 06/15/31 2,604,448
3,900 New York City Muni Wtr Fin Auth Wtr &
Swr Sys Rev Ser B (FSA Insd).......... 5.250 06/15/29 3,487,068
2,000 New York City Ser A................... 7.000 08/01/04 2,136,900
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$3,335 New York City Ser B................... 6.600% 10/01/16 $ 3,440,119
2,000 New York City Ser B (Prerefunded @
10/01/02)............................. 6.600 10/01/16 2,105,540
10 New York City Ser D................... 7.500 02/01/16 10,524
2,005 New York City Ser D (Prerefunded @
02/01/02)............................. 7.500 02/01/16 2,124,257
5 New York City Ser D................... 7.500 02/01/17 5,262
995 New York City Ser D (Prerefunded @
02/01/02)............................. 7.500 02/01/17 1,054,183
2,300 New York City Ser G Rfdg.............. 5.700 08/01/08 2,341,515
5,000 New York City Ser H................... 5.000 03/15/29 4,206,650
1,000 New York City Subser A1 (Embedded
Swap) (c) (d)......................... 3.830/5.750 08/01/12 1,000,790
2,000 New York St Dorm Auth Rev City Univ
Sys Cons Third Genl 1 (FSA Insd)...... 5.500 07/01/29 1,887,760
1,500 New York St Dorm Auth Rev Court Fac
Lease Ser A........................... 5.375 05/15/16 1,390,365
2,500 New York St Dorm Auth Rev Grace Manor
Hlthcare Fac.......................... 6.150 07/01/18 2,550,700
1,250 New York St Dorm Auth Rev Hosp NY &
Presbyterian (AMBAC Insd)............. 4.750 08/01/27 1,025,450
4,460 New York St Dorm Auth Rev Mtg KMH
Homes Inc. (FHA Gtd).................. 6.950 08/01/31 4,624,574
1,835 New York St Dorm Auth Rev NY Pub Lib
Ser A (MBIA Insd)..................... * 07/01/02 1,648,986
1,910 New York St Dorm Auth Rev NY Pub Lib
Ser A (MBIA Insd)..................... * 07/01/03 1,629,536
1,000 New York St Dorm Auth Rev NY Univ Ser
A (AMBAC Insd) (a).................... 5.250 07/01/06 999,190
1,000 New York St Dorm Auth Rev NY Univ Ser
A (AMBAC Insd) (a).................... 5.250 07/01/07 997,620
1,000 New York St Dorm Auth Rev Nyack Hosp
Rfdg.................................. 6.250 07/01/13 945,790
1,000 New York St Dorm Auth Rev St Univ Edl
Fac 1989 Res (MBIA Insd).............. 6.000 05/15/15 1,041,350
</TABLE>
See Notes to Financial Statements
12
<PAGE> 14
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$5,010 New York St Dorm Auth Rev St Univ Edl
Fac Ser B Rfdg........................ 5.250% 05/15/19 $ 4,691,915
1,500 New York St Energy Resh & Dev Auth Gas
Fac Rev Brooklyn Union Gas Ser B (MBIA
Insd)................................. 6.750 02/01/24 1,571,010
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 3,766,440
800 New York St Environmental Fac Corp
Pollutn Ctl Rev St Wtr Rev............ 6.600 06/15/09 854,488
1,200 New York St Environmental Fac Corp
Pollutn Ctl Rev St Wtr Rev
(Prerefunded @ 06/15/04).............. 6.600 06/15/09 1,284,744
3,500 New York St Hsg Fin Agy Rev
Multi-Family Hsg Secured Mtg Pgm Ser
A..................................... 7.050 08/15/24 3,649,205
1,860 New York St Hsg Fin Agy Rev
Multi-Family Hsg Secured Mtg Pgm Ser
C..................................... 6.950 08/15/24 1,899,060
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 4,920,671
935 New York St Med Care Fac Fin Agy Rev
Long Term Hlthcare Ser A (FSA Insd)... 6.800 11/01/14 981,049
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 1,912,548
3,735 New York St Med Care Facs Fin Agy Rev
Hosp & Nursing Ser B.................. 6.950 02/15/32 3,937,624
765 New York St Med Care Facs Fin Agy Rev
Hosp & Nursing Ser B (Prerefunded @
02/15/02)............................. 6.950 02/15/32 806,501
</TABLE>
See Notes to Financial Statements
13
<PAGE> 15
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$2,000 New York St Mtg Agy Rev Homeowner Mtg
Ser 42................................ 6.400% 10/01/20 $ 2,030,960
1,755 New York St Mtg Agy Rev Homeowner Mtg
Ser 52................................ 6.100 04/01/26 1,755,878
5,500 New York St Mtg Agy Rev Homeowner Mtg
Ser 71................................ 5.400 04/01/29 4,960,340
4,750 New York St Mtg Agy Rev Homeowner Mtg
Ser 79................................ 5.300 04/01/29 4,215,245
1,000 New York St Muni Bond Bk Agy Spl Pgm
Rev Buffalo Ser A..................... 6.875 03/15/06 1,039,470
2,000 New York St Thruway Auth Svc Contract
Rev Loc Hwy & Brdg.................... 5.750 04/01/08 2,042,620
2,000 New York St Urban Dev Corp Rev
Correctional Facs Svc Contract Ser B
(AMBAC Insd).......................... 4.750 01/01/28 1,646,880
2,500 New York St Urban Dev Corp Rev
Correctional Facs Ser A Rfdg.......... 5.500 01/01/14 2,467,900
1,625 New York St Urban Dev Corp Rev Proj
Cent for Indl Innovation Rfdg......... 5.500 01/01/13 1,610,976
20,000 New York St Urban Dev Corp Rev St
Office South Mall Ser A............... * 01/01/11 10,168,600
4,500 Port Auth NY & NJ Cons 97th Ser (FGIC
Insd) (b)............................. 6.650 01/15/23 4,687,200
2,000 Port Auth NY & NJ Delta Airls Inc Proj
Ser 1R................................ 6.950 06/01/08 2,098,620
2,500 Port Auth NY & NJ Spl Oblig Rev Spl
Proj JFK Intl Arpt Terminal 6 (MBIA
Insd)................................. 5.750 12/01/25 2,423,375
2,205 Rensselaer, NY Hsg Auth Multi-Family
Rev Mtg Renwyck Pl Ser A.............. 7.650 01/01/11 2,366,935
2,035 Rensselaer, NY Hsg Auth Multi-Family
Rev Mtg Van Rensselaer Heights Ser
A..................................... 7.750 01/01/11 2,184,165
1,825 Syracuse, NY Ctfs Partn Syracuse
Hancock Intl Arpt..................... 6.625 01/01/12 1,891,375
------------
145,664,313
------------
</TABLE>
See Notes to Financial Statements
14
<PAGE> 16
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
PAR
AMOUNT MARKET
(000) DESCRIPTION COUPON MATURITY VALUE
<C> <S> <C> <C> <C>
GUAM 3.9%
$2,000 Guam Arpt Auth Rev Ser B.............. 6.400% 10/01/05 $ 2,072,440
3,000 Guam Govt Ltd Oblig Hwy Ser A (FSA
Insd)................................. 6.250 05/01/07 3,131,160
1,000 Guam Pwr Auth Rev Ser A (Prerefunded @
10/01/04)............................. 6.625 10/01/14 1,086,270
------------
6,289,870
------------
PUERTO RICO 5.5%
5,000 Puerto Rico Comwlth Hwy & Tran Auth
Hwy Rev Ser Y Rfdg (FSA Insd)......... 6.250 07/01/21 5,383,450
2,250 Puerto Rico Comwlth Pub Impt
(Prerefunded @ 07/01/02).............. 6.800 07/01/21 2,384,370
1,000 Puerto Rico Pub Bldgs Auth Rev Gtd Ser
K (Prerefunded @ 07/01/02) (b)........ 6.875 07/01/21 1,061,250
------------
8,829,070
------------
U. S. VIRGIN ISLANDS 0.6%
1,000 Virgin Islands Pub Fin Auth Rev Gross
Rcpts Taxes Ln Nt Ser A (ACA Insd).... 6.125 10/01/29 991,860
------------
TOTAL LONG-TERM INVESTMENTS 101.0%
(Cost $154,816,548).................................................. 161,775,113
SHORT-TERM INVESTMENTS 0.1%
(Cost $100,000)...................................................... 100,000
------------
TOTAL INVESTMENTS 101.1%
(Cost $154,916,548).................................................. 161,875,113
LIABILITIES IN EXCESS OF OTHER ASSETS (1.1%).......................... (1,725,146)
------------
NET ASSETS 100.0%..................................................... $160,149,967
============
</TABLE>
See Notes to Financial Statements
15
<PAGE> 17
YOUR TRUST'S INVESTMENTS
April 30, 2000 (Unaudited)
* 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.
(c) An Embedded Cap security includes a cap strike level such that coupon
payment may be supplemented by cap payments if the floating rate index upon
which it 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.
These 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.
(d) Security converts to a fixed coupon rate at a predetermined date.
ACA--American Capital Access
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
16
<PAGE> 18
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2000 (Unaudited)
<TABLE>
<S> <C>
ASSETS:
Total Investments (Cost $154,916,548)....................... $161,875,113
Cash........................................................ 26,758
Interest Receivable......................................... 2,357,679
Other....................................................... 9,963
------------
Total Assets............................................ 164,269,513
------------
LIABILITIES:
Payables:
Investments Purchased..................................... 3,729,750
Investment Advisory Fee................................... 85,911
Income Distributions -- Common and Preferred Shares....... 78,038
Administrative Fee........................................ 26,434
Affiliates................................................ 8,934
Trustees' Deferred Compensation and Retirement Plans........ 107,422
Accrued Expenses............................................ 83,057
------------
Total Liabilities....................................... 4,119,546
------------
NET ASSETS.................................................. $160,149,967
============
NET ASSETS CONSIST OF:
Preferred Shares ($.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................................. 6,958,565
Accumulated Undistributed Net Investment Income............. 1,044,284
Accumulated Net Realized Gain............................... 805,668
------------
Net Assets Applicable to Common Shares.................. 100,149,967
------------
NET ASSETS.................................................. $160,149,967
============
NET ASSET VALUE PER COMMON SHARE ($100,149,967 divided by
6,203,651 shares outstanding)............................. $ 16.14
============
</TABLE>
See Notes to Financial Statements
17
<PAGE> 19
Statement of Operations
For the Six Months Ended April 30, 2000 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 4,913,968
-----------
EXPENSES:
Investment Advisory Fee..................................... 519,530
Administrative Fee.......................................... 159,856
Preferred Share Maintenance................................. 80,832
Custody..................................................... 7,860
Legal....................................................... 4,162
Trustees' Fees and Related Expenses......................... 3,238
Other....................................................... 77,808
-----------
Total Expenses.......................................... 853,286
-----------
NET INVESTMENT INCOME....................................... $ 4,060,682
===========
REALIZED AND UNREALIZED GAIN/LOSS ON INVESTMENTS:
Net Realized Gain........................................... $ 831,711
-----------
Unrealized Appreciation/Depreciation:
Beginning of the Period................................... 8,726,243
End of the Period......................................... 6,958,565
-----------
Net Unrealized Depreciation During the Period............... (1,767,678)
-----------
NET REALIZED AND UNREALIZED LOSS............................ $ (935,967)
===========
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 3,124,715
===========
</TABLE>
See Notes to Financial Statements
18
<PAGE> 20
Statement of Changes in Net Assets
For the Six Months Ended April 30, 2000 and the Year Ended
October 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
----------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................. $ 4,060,682 $ 8,054,785
Net Realized Gain/Loss................................ 831,711 (26,043)
Net Unrealized Depreciation During the Period......... (1,767,678) (9,455,573)
------------ ------------
Change in Net Assets from Operations.................. 3,124,715 (1,426,831)
------------ ------------
Distributions from Net Investment Income:
Common Shares....................................... (3,126,640) (5,930,554)
Preferred Shares.................................... (1,120,392) (1,920,787)
------------ ------------
(4,247,032) (7,851,341)
------------ ------------
Distributions from Net Realized Gain:
Common Shares....................................... -0- (28,213)
Preferred Shares.................................... -0- (9,800)
------------ ------------
-0- (38,013)
------------ ------------
Total Distributions................................... (4,247,032) (7,889,354)
------------ ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES... (1,122,317) (9,316,185)
FROM CAPITAL TRANSACTIONS:
Value of Common Shares Issued Through Dividend
Reinvestments....................................... -0- 47,424
------------ ------------
TOTAL DECREASE IN NET ASSETS.......................... (1,122,317) (9,268,761)
NET ASSETS:
Beginning of the Period............................... 161,272,284 170,541,045
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $1,044,284 and $1,230,634,
respectively)....................................... $160,149,967 $161,272,284
============ ============
</TABLE>
See Notes to Financial Statements
19
<PAGE> 21
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, -------------------
2000 1999 1998
---------------------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF THE PERIOD (A)....... $16.324 $17.826 $ 17.332
------- ------- --------
Net Investment Income............................ .655 1.299 1.293
Net Realized and Unrealized Gain/Loss............ (.150) (1.528) .514
------- ------- --------
Total from Investment Operations................... .505 (.229) 1.807
------- ------- --------
Less:
Distributions from Net Investment Income:
Paid to Common Shareholders.................... .504 .956 .944
Common Share Equivalent of Distributions Paid
to Preferred Shareholders.................... .181 .310 .335
Distributions from Net Realized Gain:
Paid to Common Shareholders.................... -0- .005 .025
Common Share Equivalent of Distributions Paid
to Preferred Shareholders.................... -0- .002 .009
------- ------- --------
Total Distributions................................ .685 1.273 1.313
------- ------- --------
Net Asset Value, End of the Period................. $16.144 $16.324 $ 17.826
======= ======= ========
Market Price Per Share at End of the Period........ $14.750 $15.250 $17.6875
Total Investment Return at Market Price (b)........ 0.08%* -8.73% 20.29%
Total Return at Net Asset Value (c)................ 2.02%* -3.26% 8.69%
Net Assets at End of the Period (In millions)...... $ 160.1 $ 161.3 $ 170.5
Ratio of Expenses to Average Net Assets Applicable
to Common Shares (d)(2).......................... 1.70% 1.68% 1.66%
Ratio of Net Investment Income to Average Net
Assets Applicable to Common Shares (e)........... 5.86% 5.72% 5.45%
Portfolio Turnover................................. 17%* 4% 1%
* 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.................... 1.07% 1.07% 1.07%
</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 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.
(c) 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.
(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.
20
<PAGE> 22
<TABLE>
<CAPTION>
MARCH 27, 1992
(COMMENCEMENT
YEAR ENDED OCTOBER 31, OF INVESTMENT
----------------------------------------------------- OPERATIONS) TO
1997 1996 1995 1994 1993 OCTOBER 31, 1992
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 16.634 $16.487 $14.801 $17.621 $14.812 $14.742
-------- ------- ------- ------- ------- -------
1.284 1.302 1.303 1.337 1.352 .607
.695 .097 1.783 (2.869) 2.766 .027
-------- ------- ------- ------- ------- -------
1.979 1.399 3.086 (1.532) 4.118 .634
-------- ------- ------- ------- ------- -------
.900 .900 1.000 1.020 1.020 .425
.337 .352 .384 .268 .289 .139
.032 -0- .013 -0- -0- -0-
.012 -0- .003 -0- -0- -0-
-------- ------- ------- ------- ------- -------
1.281 1.252 1.400 1.288 1.309 .564
-------- ------- ------- ------- ------- -------
$ 17.332 $16.634 $16.487 $14.801 $17.621 $14.812
======== ======= ======= ======= ======= =======
$15.5625 $14.625 $14.375 $13.125 $17.125 $15.000
13.08% 8.09% 17.49% -18.07% 21.52% 2.79%*
10.12% 6.50% 18.88% -10.55% 26.50% 1.48%*
$ 167.5 $ 163.2 $ 162.2 $ 151.8 $ 169.3 $ 151.8
1.70% 1.73% 1.78% 1.70% 1.62% 1.49%(1)
5.63% 5.78% 5.89% 6.55% 6.45% 5.28%(1)
8% 20% 54% 38% 18% 24%*
1.08% 1.09% 1.10% 1.07% 1.02% 1.03%(1)
</TABLE>
See Notes to Financial Statements
21
<PAGE> 23
NOTES TO
FINANCIAL STATEMENTS
April 30, 2000 (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, which approximates market value.
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 is amortized and original issue discount is accreted over the expected
life of each applicable security.
22
<PAGE> 24
NOTES TO
FINANCIAL STATEMENTS
April 30, 2000 (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.
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 October 31, 1999, the Fund had an accumulated capital loss
carryforward for tax purposes of $26,043 which will expire on October 31, 2007.
At April 30, 2000, for federal income tax purposes, cost of long- and
short-term investments is $154,916,548; the aggregate gross unrealized
appreciation is $7,283,102 and the aggregate gross unrealized depreciation is
$324,537, resulting in net unrealized appreciation on long- and short-term
investments of $6,958,565.
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, 2000, the Trust recognized expenses of
approximately $1,200 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, 2000, the Trust recognized expenses of
approximately $8,100 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.
23
<PAGE> 25
NOTES TO
FINANCIAL STATEMENTS
April 30, 2000 (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, 2000 and October 31, 1999, common shares paid in surplus aggregated
$91,279,413. Transactions in common shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
<S> <C> <C>
Beginning Shares.................................... 6,203,651 6,200,987
Shares Issued Through Dividend Reinvestment......... -0- 2,664
--------- ---------
Ending Shares....................................... 6,203,651 6,203,651
========= =========
</TABLE>
4. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sale of investments,
excluding short-term investments, were $27,740,133 and $27,351,526,
respectively.
5. PREFERRED SHARES
As of April 30, 2000, 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, 2000, was
4.300%. During the six months ended April 30, 2000, the rates ranged from 3.200%
to 4.300%.
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.
24
<PAGE> 26
TRUST OFFICERS AND IMPORTANT ADDRESSES
VAN KAMPEN TRUST FOR INVESTMENT GRADE
NEW YORK MUNICIPALS
BOARD OF TRUSTEES
DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
THEODORE A. MYERS
RICHARD F. POWERS, III* - Chairman
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN*
OFFICERS
RICHARD F. POWERS, III*
President
STEPHEN L. BOYD*
Executive Vice President and
Chief Investment Officer
A. THOMAS SMITH III*
Vice President and Secretary
JOHN L. SULLIVAN*
Vice President, Treasurer and
Chief Financial Officer
RICHARD A. CICCARONE*
JOHN R. REYNOLDSON*
MICHAEL H. SANTO*
JOHN H. ZIMMERMANN, 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(1)
DELOITTE & TOUCHE LLP
180 North Stetson Avenue
Chicago, Illinois 60601
(1) Independent accountants for the Trust perform an annual audit of the Trust's
financial statements. The Board of Trustees has engaged Deloitte & Touche
LLP to be the Trust's independent accountants.
KPMG LLP, located at 303 West Wacker Drive, Chicago, IL 60601 ("KPMG"),
ceased being the Trust's independent accountants effective April 14, 2000.
The cessation of the client- auditor relationship between the Trust and KPMG
was based solely on a possible future business relationship by KPMG with an
affiliate of the Trust's investment adviser.
* "Interested persons" of the Trust, as defined in the Investment Company Act
of 1940, as amended.
(C) Van Kampen Funds Inc., 2000. All rights reserved.
(SM) denotes a service mark of Van Kampen Funds Inc.
25
