(logo)
Putnam
New York
Investment
Grade
Municipal
Trust
Annual
Report
April 30, 1994
(artwork)
For investors seeking high current income free from federal
income tax and New York State and City personal income tax,
consistent with preservation of capital
Contents
2 How your fund performed
3 From the Chairman
4 Report from Putnam Management
Annual Report
6 Report of Independent Accountants
7 Portfolio of investments owned
9 Financial statements
17 Fund performance supplement
18 Federal tax information
19 Your Trustees
A member
of the Putnam
Family of Funds
<PAGE>
How your
fund performed
For periods ended April 30, 1994
Total Return* Lehman
Fund Brothers Consumer
Market Municipal Price
(common shares) NAV price Bond Index Index
1 year 2.26% 3.25% 2.16% 2.36%
Life-of-fund
(since 11/27/92) 8.73 1.23 8.11 3.80
annualized 6.03 0.86 5.61 2.64
Market
Share data (common shares) NAV price
April 30, 1993 $14.57 $15.000
April 30, 1994 $13.86 $13.500
Distributions(a)
Fiscal year ended Short-term
April 30, 1994 Investment capital
(common shares) Number income gains Total
12 $0.93 $0.154 $1.084
(preferred shares) Total
200 shares -- Series A $1,857.19 $221.71 $2,078.90
Taxable equivalents+
Current returns Market Market
at the end of the period NAV price NAV price
Current dividend rate 6.71% 6.89% 12.63% 12.97%
* Performance data represent past results. Investment return and
principal value will fluctuate so an investor's shares, when
sold, may be worth more or less than their original cost.
(a) Capital gains, if any, are taxable for federal and, in most
cases, state purposes. For some investors, investment income may
also be subject to the alternative minimum tax.
+ Assumes maximum 46.88% combined New York state, city and
federal tax rate. Results for investors subject to lower tax
rates would not be as advantageous, although many such investors
would still have the opportunity to receive attractive tax
benefits from a fund investment. Consult your tax advisor for
guidance.
<PAGE>
Terms you need to know
Total return is the change in value of an investment from the
beginning to the end of a period, assuming the reinvestment of
all distributions. It may be shown at net asset value or at
market price.
Net asset value (NAV) is the value of all your fund's assets,
minus any liabilities, the liquidation preference and cumulative
undeclared dividends on the remarketed preferred shares, divided
by the number of outstanding common shares. (See Note 1 to
financial statements)
Market price is the current trading price of one share of the
fund. Market prices are set by transactions between buyers and
sellers on the New York Stock Exchange.
Current dividend rate is calculated by annualizing the income
portion of the fund's most recent distribution and dividing by
the NAV or market price on the last day of the period.
Taxable equivalent return is the rate at which a taxable
investment would have to generate income to equal the fund's
current dividend rate or yield.
Please see the fund performance supplement on page 17 for
additional information about performance comparisons.
<PAGE>
From the
Chairman
(photograph of George Putnam)
(c) Karsh, Ottawa
George Putnam
Chairman
of the Trustees
Dear Shareholder:
Many shareholders have been asking us whether we think the
volatility that hit the securities markets in February and March
was a prelude to further decline during the rest of 1994. We have
been pointing out that the recent adjustments in the markets are
a natural occurrence at this stage of the economic recovery.
We believe some volatility will likely continue for a while as
investors digest new realities in areas such as interest rates,
inflation, and the pace of the recovery. But the economy is still
strong, interest rates remain historically low, and inflation
appears under control. It is important for investors to remember
that mutual fund investing should be looked at as a long-term
investment. We often say that it is time, not timing, combined
with a proven strategy that will achieve the most attractive
results.
The ability to fine-tune a portfolio in response to changing
economic conditions demonstrates a significant advantage of
professional management. Fund manager David Eurkus has worked to
minimize the price volatility that naturally results from a
rising interest rate environment while capturing the higher
income potential offered by newer municipal bonds coming to
market.
In spite of recent volatility and speculation about future
interest rate increases, we believe Putnam New York Investment
Grade Municipal Trust is a methodically structured portfolio that
will continue to deliver attractive levels of tax-free income for
the balance of this year and beyond.
Respectfully yours,
(signature of George Putnam)
George Putnam
June 15, 1994
<PAGE>
Report from
Putnam Management
Top 10 holdings
---------------------------
Based on percentage of net assets as of 4/30/94
New York State Med. Care
Fac. Fin. Agcy. Rev. Bonds
New York State Energy
Research & Dev. Auth. Elec.
Fac. Rev. Bonds
Port Auth. of NY & NJ
Cons. RIBS
New York State Dorm. Auth.
Rev. Bonds
New York City, General
Obligation Bonds
Babylon, Indl. Dev. Agcy.
Resource Recvy. Rev.
Bonds
New York State Energy
Research & Dev. Auth. Poll.
Control Rev. Bonds
Virgin Islands, Pub. Fin. Auth.
Rev. Bonds
New York State Pwr. Auth.
Gen. Purpose Rev. Bonds
New York State Environmental
Fac. Corp. Poll. Control Rev.
Bonds
February 1994 brought the first in a series of short-term
interest rate increases by the Federal Reserve, billed as a pre-
emptive strike against inflation. Combined, the first three
increases raised short-term rates by 1.25% affecting the entire
fixed-income market. Although municipal bond investments were
among those hit hardest, we are pleased to report that Putnam New
York Investment Grade Municipal Trust Fund completed fiscal 1994
with a positive total return at net asset value (see page 2 for
performance details).
How the market responded As interest rates increased, the value
of bonds decreased, sparking a selloff among municipal bond
shareholders that affected primarily no-load funds. Fund
managers, in order to meet the liquidation requests of their
investors, began to sell bonds to raise the capital to cover
redemptions. Securities dealers were not motivated to buy bonds
because their firms already had a large inventory of bonds on
hand because of their own optimistic view of anticipated demand.
As a result of the excess supply, accompanied by an extreme lack
of demand, bond prices dropped even further.
<PAGE>
After the dust settled, municipal bonds were yielding
approximately 98% of Treasury bonds on a pre-tax basis and were
available at undervalued prices.
In light of the recent market correction, it is important to
remember that mutual fund investments should be looked at as a
long-term investment -- even if its primary purpose is to provide
current income. With a proven strategy and an appropriate time
frame, even an investor who consistently buys at the worst
possible time may achieve extremely attractive results. Those who
can take advantage of the price trends in this market have the
potential for even greater gains. We believe that today's post-
correction prices and higher yields represent an excellent
opportunity for investors.
Supply/demand dynamics While short-term rates can erode the total
return of long-term bond funds, we believe that positive
supply/demand dynamics may help offset the damage. Rising
interest rates have had a sobering effect on the refinancing
phenomenon, reducing supply from one of the largest sources of
new issues.
Because new issuance of municipal bonds has declined by almost
40% this year already, demand is likely to outpace supply. In the
face of higher taxes and strengthening demand, shrinking supply
could further enhance the value of the bonds in the portfolio,
and thus, the fund's net asset value.
Diversified state economy adds stability New York is one of the
country's top issuers of municipal bonds. When it comes to
selecting investments, the sheer size and diversity of the Empire
State's economy provides a ready-made opportunity for a well-
diversified portfolio. As of April 30, 1994, your fund owns 30
separate bond issues with an average quality rating of A. Nearly
65% of the portfolio is invested in utility, health care,
transportation, and education bonds--industries which typically
carry some of the higher-quality, higher-coupon bonds in the
municipal bond universe.
Upgrade potential could boost returns While there can be no
guarantees, we believe there is a strong possibility that New
York state's general obligation bonds could be upgraded sometime
this year. An upgrade in these tax-based bonds could portend
upgrades of bonds issued by major state agencies financed through
state appropriations. The State and City university systems and
medical facilities are examples of agencies that could benefit.
Such an event could be quite positive for your fund, as prices of
these holdings could appreciate to reflect rising investor
confidence and demand.
Overall, our strategy is to remain fully invested while
continuing to maintain a well-diversified portfolio. Of course,
we will carefully monitor the effectiveness of this strategy and
make adjustments to the portfolio as market conditions warrant.
Although we will remain cautious in the near term, we will
continue to maintain a positive outlook for the municipal bond
market as a whole. Despite the current correction in the market,
inflation still appears relatively low. Once the market
recognizes this, we believe it will stabilize and the strong
fundamentals that make municipal bonds such an attractive
investment will begin to reward shareholders to a greater extent.
(bar chart)
Top industry sectors (based on percentage of net assets as of
4/30/94)
Utilities/Water and Sewer 29.2%
Hospitals/Health care 21.2%
Transportation 14.0%
Education 10.5%
<PAGE>
Putnam
New York
Investment
Grade
Municipal
Trust
Annual Report
For the year ended April 30, 1994
Report of Independent Accountants
To the Trustees and Shareholders of
Putnam New York Investment Grade Municipal Trust
In our opinion, the accompanying statement of assets and
liabilities, including the portfolio of investments owned
(except for bond ratings), and the related statements of
operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the
financial position of Putnam New York Investment Grade Municipal
Trust (the "Fund") at April 30, 1994, and the results of its
operations, the changes in its net assets and the financial
highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits
of these financial statements in accordance with generally
accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant
estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits,
which included confirmation of investments owned at April 30,
1994 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
Price Waterhouse
Boston, Massachusetts
June 15, 1994
<PAGE>
<TABLE>
<CAPTION>
Portfolio of
investments owned
April 30, 1994
Municipal Bonds and Notes (98.2%)(a)
Principal Amount Ratings(b) Value
<S> <C> <C> <C> <C>
New York (90.9%)
$1,610,000 Albany, Parking Auth. Rev. Bonds Ser. A,
6.85s, 11/1/12 Baa $ 1,636,163
3,000,000 Babylon, Indl. Dev. Agcy. Resource Recvy. Rev.
Bonds (Ogden Martin Syst.), Ser. A, 8 1/2s, 1/1/19 Baa 3,307,500
650,000 Ithaca, Hsg. Corp. Mtge. Rev. Bonds (Eddygate
Park Apts. Project), 9s, 6/1/06 BBB/P 656,500
1,500,000 Metro. Trans. Auth. Transit Fac. Rev. Bonds
Ser. F, 8 3/8s, 7/1/16 AAA 1,648,125
500,000 NY City, Cultural Res. Variable Rate Demand
Notes (VRDN) (American Museum of Natural
History), Ser. B, Municipal Bond Insurance
Assn. 3.15s, 4/1/21 AAA 500,000
NY City, General Obligation Bonds
1,385,000 Ser. A, 8s, 8/15/19 A 1,629,106
1,700,000 Ser. B, 7s, 10/1/13 A 1,825,375
1,300,000 NY State Dorm. Auth. Residual Interest Bonds
(RIBS) (Cornell U.) 11.227s, 7/1/30,
(acquired 1/6/93, cost $1,533,675)(c) AA/P 1,550,250
NY State Dorm. Auth. Rev. Bonds
1,600,000 (The Society of NY Hosp.), 9 3/4s, 7/1/15 Baa 1,644,000
1,800,000 (State U. Edl. Facs.), Ser. A, 6 3/4s, 5/15/21 Baa 1,993,500
3,500,000 NY State Energy Research & Dev. Auth. Elec.
Fac. Rev. Bonds (Cons. Edison Co. of NY, Inc.
Project), 9s, 8/15/20 Aa 3,736,250
NY State Energy Research & Dev. Auth. Poll. Control Rev. Bonds
1,600,000 (Niagara Mohawk Pwr. Corp.), Ser. I, 8 7/8s, 11/1/25 Baa $ 1,712,000
600,000 Ser A, VRDN, 3.05s, 7/1/15 A1 600,000
1,600,000 NY State Environmental Fac. Corp. Poll. Control
Rev. Bonds (State Wtr. Revolving Fund),
Ser. A, 7 1/2s, 6/15/12 Aa 1,792,000
1,800,000 NY State Local Govt. Asst. Corp. Rev. Bonds
Ser. B, 6 1/4s, 4/1/21 A 1,788,750
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
1,600,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. A,
Federal Housing Admin. (FHA) Insd., 8s, 2/15/27 AA 1,756,000
1,450,000 (Mental Hlth. Svcs. Fac.), Ser. D. 7.4s, 2/15/18 Baa 1,564,188
1,600,000 Ser. A, 7.35s, 8/15/11 BBB 1,728,000
1,800,000 (Hosp. & Nursing Home Insd. Mtge.),
Ser. C, 6.65s, 8/15/32 Aa 1,824,750
1,800,000 (Hosp. & Nursing Home Insd. Mtge.),
Ser. D, FHA Insd., 6.6s, 2/15/31 AA 1,827,000
1,800,000 (Hosp. & Nursing Home Insd. Mtge.),
Ser. C, FHA Insd., 6 3/8s, 8/15/29 AAA 1,768,500
1,800,000 NY State Pwr. Auth. Gen. Purpose Rev. Bonds
Ser. AA, 6 1/4s, 1/1/23 AA 1,809,000
2,000,000 NY State Pwr. Auth. RIBS 7.014s, 1/1/14,
(acquired 12/8/93, cost $1,860,000)(c) AA 1,490,000
1,450,000 NY State Urban Dev. Corp. Rev. Bonds
(Correctional Fac.), 8s, 1/1/15 Aaa 1,560,563
2,000,000 Port Auth. of NY & NJ Cons. Bonds 53rd
Ser., 8.7s, 7/15/20 AA $ 2,135,000
1,400,000 Port Auth. of NY & NJ Cons. RIBS 10.334s,
8/1/26, (acquired 7/19/93, cost $1,687,700)(c) AA 1,505,000
44,987,520
Puerto Rico (3.1%)
1,365,000 Puerto Rico, Pub. Bldgs. Auth. Ed. & Hlth. Facs.
Rev. Bonds Ser. L, 6 7/8s, 7/1/21 AAA 1,533,918
Virgin Islands (4.2%)
2,000,000 Virgin Islands, Pub. Fin. Auth. Rev. Bonds
(Matching Funds Loan Notes),
Ser. A, 7 1/4s, 10/1/18 BBB/P 2,092,500
Total Investments (cost $49,032,289)(d) $48,613,938
(a) Percentages indicated are based on total net assets of $49,479,704. Net assets
available to common shareholders are $39,465,525, which corresponds to a net asset value
per common share of $13.86.
(b) The Moody's or Standard & Poor's ratings indicated are believed to be the most recent
ratings available at April 30, 1994 for the securities listed. Ratings are generally
ascribed to securities at the time of issuance. While the agencies may from time to time
revise such ratings, they undertake no obligation to do so, and the ratings do not
necessarily represent ratings which the agencies would ascribe to these securities at
April 30, 1994. Securities rated by Putnam are indicated by "/P" and are not publicly
rated. Ratings are not covered by the Report of Independent Accountants.
(c) Restricted as to public resale. At the date of acquisition, these securities were
valued at cost. There were no outstanding unrestricted securities of the same class as
those held. Total market value of the restricted securities owned at April 30, 1994 was
$4,545,250 or 9.2% of net assets.
(d) The aggregate identified cost for federal income tax purposes is $49,032,289
resulting in gross unrealized appreciation and depreciation of $832,457 and $1,250,808,
respectively, or net unrealized depreciation of $418,351.
The rates shown on Variable Rate Demand Notes and Residual Interest Bonds are the current
interest rates at April 30, 1994, which are subject to change based on the terms of the
security.
The Fund had the following industry group concentrations greater than 10% on April 30,
1994 (as a percentage of net assets):
Utilities/Water & Sewer 29.2%
Hospitals/Health Care 21.2
Transportation 14.0
Education 10.5
The Fund had the following insurance concentration greater than 10% on April 30, 1994 (as
a percentage of net assets):
FHA 10.8%
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Statement of
assets and liabilities
April 30, 1994
<S> <C> <C>
Assets
Investments in securities, at value (identified cost $49,032,289) (Note 1) $48,613,938
Cash 260,839
Interest receivable 1,019,369
Unamortized organization expenses (Note 1) 8,228
Total assets 49,902,374
Liabilities
Distributions payable to shareholders $254,116
Payable for compensation of Manager (Note 4) 85,887
Payable for investor servicing and custodian fees (Note 4) 8,085
Payable for administrative services (Note 4) 2,178
Payable for offering and organization costs (Notes 1, 2 and 3) 26,874
Other accrued expenses 45,530
Total liabilities 422,670
Net assets $49,479,704
Represented by
Series A remarketed preferred shares, without par value;
200 shares authorized (200 shares issued at $50,000 per share
liquidation preference) (Note 3) $10,000,000
Common shares, without par value; unlimited shares authorized;
2,847,092 shares outstanding 39,508,682
Undistributed net investment income 135,602
Accumulated net realized gain on investments 253,771
Net unrealized depreciation of investments (418,351)
Net assets $49,479,704
<PAGE>
Computation of net asset value
Remarketed preferred shares at liquidation preference $10,000,000
Cumulative undeclared income dividends on remarketed
preferred shares --
Cumulative undeclared capital gain dividends on remarketed
preferred shares 14,179
Net assets allocated to remarketed preferred shares at
liquidation preference 10,014,179
Net assets available to common shares:
Net asset value per share $13.86 ($39,465,525 divided by 2,847,092 shares) 39,465,525
Net assets $49,479,704
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of
operations
For the year ended April 30, 1994
<S> <C> <C>
Tax exempt interest income $3,514,182
Expenses:
Compensation of Manager (Note 4) $364,411
Investor servicing and custodian fees (Note 4) 40,250
Compensation of Trustees (Note 4) 5,438
Reports to shareholders 8,041
Auditing 41,116
Legal 8,326
Postage 4,300
Administrative services (Note 4) 5,018
Amortization of organization expenses (Note 1) 2,291
Preferred share remarketing agent fees 30,000
Other 8,890
Total expenses 518,081
Net investment income 2,996,101
Net realized gain on investments (Notes 1 and 4) 507,759
Net unrealized depreciation of investments during the period (2,004,082)
Net loss on investments (1,496,323)
Net increase in net assets resulting from operations $1,499,778
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Statement of
changes in net assets
For the period
November 27, 1992
For The (commencement of
year ended operations) to
April 30 April 30
1994 1993*
<S> <C> <C>
Increase/(Decrease) in net assets
Operations:
Net investment income $2,996,101 $1,119,636
Net realized gain on investments 507,759 228,796
Net unrealized (depreciation) appreciation
of investments (2,004,082) 1,585,731
Net increase in net assets resulting from operations 1,499,778 2,934,163
Distributions to remarketed preferred shareholders from:
Net investment income (371,438) (77,902)
Net realized gains (44,341) --
Net increase in net assets resulting from operations
applicable to common shareholders (excluding
cumulative undeclared dividends on
remarketed preferred shares of $14,179
and $0, respectively) 1,083,999 2,856,261
Distributions to common shareholders from:
Net investment income (2,647,978) (882,817)
Net realized gains (438,443) --
Increase from capital share transactions
Issuance of remarketed preferred shares (Note 3) -- 10,000,000
Issuance of common shares (Note 2) -- 39,745,663
Underwriting commissions and offering costs on
remarketed preferred shares and common
shares (Notes 2 and 3) (8,855) (328,126)
Total (decrease) increase in net assets (2,011,277) 51,390,981
Net assets
Beginning of period 51,490,981 100,000
End of period (including undistributed net
investment income of $135,602 and $158,917,
respectively) $49,479,704 $51,490,981
Number of fund shares
Common shares outstanding at
beginning of period 2,847,092 7,092
Shares issued in public offering -- 2,840,000
Common shares issued in connection with
reinvestment of distributions -- --
Common shares outstanding at end of period 2,847,092 2,847,092
Remarketed preferred shares at
beginning of period 200 --
Remarketed preferred shares issued in
public offering -- 200**
Remarketed preferred shares outstanding
at end of period 200 200
* See Note 2.
** From issuance on February 18, 1993 (see Note 3).
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Financial
Highlights
(For a share outstanding throughout the period)
For the period
November 27, 1992
For the (commencement of
year ended operations) to
April 30 April 30
1994 1993
<S> <C> <C>
Net Asset Value, Beginning of Period (common shares) $14.57 $13.99*
Investment Operations:
Net Investment Income 1.05 .40(a)
Net Realized and Unrealized (Loss) Gain on Investments (.53) .64
Total from Investment Operations .52 1.04
Less Distributions from:
Net Investment Income:
to Preferred Shareholders (.13) (.03)**
to Common Shareholders (.93) (.31)
Net Realized Gains:
to Preferred Shareholders (.02) --
to Common Shareholders (.15) --
Total Distributions (1.23) (.34)
Preferred Share Offering Costs -- (.12)
Net Asset Value, End of period (common shares) $13.86 $14.57
Market Value, End of period (common shares) $13.50 $15.00
Total Investment Return at Market Value (%)
(common shares)(e) (3.25) 4.86(c)
Net Assets, End of Period (Total Fund) (in thousands) $49,480 $51,491
Ratio of Expenses to Average Net Assets (%)(b) 1.23 .82(a)(c)
Ratio of Net Investment Income to Average Net Assets (%)(b) 6.23 6.12(a)(c)
Portfolio Turnover Rate (%) 15.18 32.27(d)
* Represents initial net asset value of $14.10 less offering expenses of approximately
$0.11.
** Preferred shares were issued on February 18, 1993.
(a) Reflects a waiver of the management fee for the period November 27, 1992 to February
19, 1993. As a result of such waiver, expenses of the Fund for the period ended April 30,
1993 reflect a reduction of approximately $0.02 per share.
(b) Ratios reflect net assets available to common shares only; net investment income
ratio also reflects reduction for dividend payments to preferred shareholders.
(c) Annualized.
(d) Not annualized.
(e) Total investment return assumes dividend reinvestment and does not reflect the effect
of sales charges.
</TABLE>
<PAGE>
Notes to
financial statements
April 30, 1994
Note 1 Significant accounting policies
The Fund is registered under the Investment Company Act of 1940,
as amended, as a non-diversified, closed-end management
investment company. The Fund's investment objective is to seek
high current income exempt from federal income tax and New York
State and City personal income tax. The Fund intends to achieve
its objective by investing in investment grade municipal
securities constituting a portfolio that the Fund's Manager
believes to be consistent with preservation of capital.
The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its
financial statements. The policies are in conformity with
generally accepted accounting principles.
A) Security valuation Tax-exempt bonds and notes are stated on
the basis of valuations provided by a pricing service, approved
by the Trustees, which uses information with respect to
transactions in bonds, quotations from bond dealers, market
transactions in comparable securities and various relationships
between securities in determining value. The fair value of
restricted securities is determined by the Manager following
procedures approved by the Trustees, and such valuations and
procedures are reviewed periodically by the Trustees.
B) Security transactions and related investment income Security
transactions are accounted for on the trade date (date the order
to buy or sell is executed). Interest income is recorded on the
accrual basis.
C) Determination of net asset value Net asset value of the common
shares is determined by dividing the value of all assets of the
Fund (including accrued interest and dividends), less all
liabilities (including accrued expenses), and the liquidation
value of any outstanding remarketed preferred shares, by the
total number of common shares outstanding.
D) Federal taxes It is the policy of the Fund to distribute all
of its income within the prescribed time and otherwise comply
with the provisions of the Internal Revenue Code applicable to
regulated investment companies. It is also the intention of the
Fund to distribute an amount sufficient to avoid imposition of
any excise tax under Section 4982 of the Internal Revenue Code of
1986. Therefore, no provision has been made for federal taxes on
income or capital gains or unrealized appreciation of securities
held and excise tax on income and capital gains.
<PAGE>
E) Distributions to shareholders Distributions to common and
preferred shareholders are recorded by the Fund on the ex-
dividend date. Dividends on remarketed
preferred shares become payable when, as and if, declared by the
Trustees. Each dividend period for the remarketed preferred
shares is generally a 30-day period until January 20, 1995. The
applicable dividend rate for the remarketed preferred shares on
April 30, 1994 was 3.95% per annum and fixed until January 20,
1995. Each subsequent dividend period will generally be a 28-day
period and the applicable dividend rate will be the dividend rate
determined by the remarketing agent.
F) Amortization of bond premium and discount Any premium
resulting from the purchase of securities in excess of maturity
value is amortized on a yield-to-maturity basis. Discount on
zero-coupon bonds, stepped-coupon bonds and original issue
discount bonds is accreted according to the effective yield
method.
G) Unamortized organization expenses Expenses incurred by the
Fund in connection with its organization aggregated $11,494.
These expenses are being amortized on a straight-line basis over
a five-year period.
Note 2 Initial capitalization and offering of shares
The Fund was established as a Massachusetts business trust under
the laws of Massachusetts on October 5, 1992.
During the period October 5, 1992 to November 26, 1992 the Fund
had no operations other than those related to organizational
matters, including the initial capital contribution of $100,000,
and the issuance of 7,092 common shares to Putnam Mutual Funds
Corp., a wholly-owned subsidiary of Putnam Investments, Inc., on
November 12, 1992.
On November 27, 1992, the Fund completed the initial offering of
2,600,000 of its common shares for which it received net proceeds
of $36,660,000 before deducting $307,192 of initial offering
expenses. Such offering expenses and the Fund's organizational
expenditures were paid initially by Putnam Investment Management,
Inc. "Putnam Management," the Fund's Manager, a wholly-owned
subsidiary of Putnam Investments, Inc., and the Fund reimburses
the Manager for such costs. Regular investment operations
commenced on November 27, 1992.
On January 19, 1993, the Fund completed a supplemental offering
240,000 common shares for which it received net proceeds of
$3,384,000.
<PAGE>
Note 3 Remarketed preferred shares
On February 18, 1993, the Fund issued 200 Remarketed Preferred
Shares (Series A). Proceeds to the Fund before, underwriting
expenses of $175,500 and offering expenses of $153,126, amounted
to $10,000,000. Such offering expenses and the Fund's
underwriting expenditures were paid initially by Putnam
Management, and the Fund is obligated to reimburse the Manager
for such costs. These expenses were charged against net assets of
the Fund available to common shareholders. The Series A
remarketed preferred shares are redeemable at the option of the
Fund on any remarketing date at a redemption price of $50,000 per
share, plus an amount equal to any dividends accumulated on a
daily basis but unpaid through the redemption date (whether or
not such dividends have been declared) and, in certain
circumstances, a call premium. There were no undeclared income
dividends on remarketed preferred shares at April 30, 1994.
It is anticipated that dividends paid to holders of remarketed
preferred shares will be considered tax-exempt dividends under
the Internal Revenue Code of 1986, as amended. To the extent that
the Fund earns taxable income and capital gains by the conclusion
of a fiscal year, it will be required to apportion to the holders
of the remarketed preferred shares throughout that year
additional dividends as necessary to result in an after-tax yield
equivalent to the applicable dividend rate for the period.
During the year ended April 30, 1994 the Fund incurred additional
dividends of $35,522.
Under the Investment Company Act of 1940, the Fund is required to
maintain asset coverage of at least 200% with respect to the
remarketed preferred shares as of the last business day of each
month in which any such shares are outstanding. Additionally, the
Fund is required to meet more stringent asset coverage
requirements under the terms of the remarketed preferred shares
and the shares' rating agencies. Should these requirements not be
met, or should dividends accrued on the remarketed preferred
shares not be paid, the Fund may be restricted in its ability to
declare dividends to common shareholders or may be required to
redeem certain of the remarketed preferred shares. At April 30,
1994, there were no such restrictions on the Fund.
Note 4 Management fee, administrative services, and other
transactions
Compensation of Putnam Management for management and investment
advisory services is paid quarterly based on the average net
assets of the Fund, including net assets attributable to
remarketed preferred shares. Such fee is based on the annual rate
of 0.70% of the first $500 million of the average net asset value
of the Fund, 0.60% of the next $500 million, 0.55% of the next
$500 million, and 0.50% of any excess over $1.5 billion of such
average net asset value.
If dividends payable on remarketed preferred shares during any
dividend payment period plus any expenses attributable to
remarketed preferred shares for the period exceed the Fund's net
income attributable to the proceeds of the remarketed preferred
shares during that period, then the fee payable to Putnam
Management for that period will be reduced by the amount of the
excess (but not more than .70% of the liquidation preference of
the remarketed preferred shares outstanding during the period).
In connection with the initial offering of shares of the Fund,
Putnam Management agreed to waive its management fee from the
period November 27, 1992 (commencement of operations) to February
19, 1993.
The Fund also reimburses the Manager for the compensation and
related expenses of certain officers of the Fund and their staff
who provide administrative services to the Fund. The aggregate
amount of all such reimbursements is determined annually by the
Trustees. For the year ended April 30, 1994, the Fund paid $
5,018 for these services.
Trustees of the Fund receive an annual Trustee's fee of $520 and
an additional fee for each Trustees' meeting attended. Trustees
who are not interested persons of the Manager and who serve on
committees of the Trustees receive additional fees for attendance
at certain committee meetings.
Custodial functions for the Fund's assets are provided by The
Putnam Fiduciary Trust Company (PFTC), a subsidiary of Putnam
Investments, Inc. Investor servicing agent functions are provided
by Putnam Investor Services, a division of PFTC. Fees paid for
these investor servicing and custodial functions for the year
ended April 30, 1994 amounted to $40,250.
Investor servicing and custodian fees reported in the Statement
of operations for the year ended April 30, 1994 have been reduced
by credits allowed by PFTC.
Note 5 Purchases and sales of securities
During the year ended April 30, 1994, purchases and sales of
investment securities other than short-term investments
aggregated $8,449,953 and $7,642,605, respectively. Purchases and
sales of short-term municipal obligations aggregated $3,000,000
and $4,800,000, respectively. In determining the net gain or loss
on securities sold, the cost of securities has been determined on
the identified cost basis.
<PAGE>
Fund performance supplement
New York Investment Grade Municipal Trust is a portfolio managed
for high current income free from New York City, State and
federal income tax, consistent with preservation of capital.
The Lehman Brothers Municipal Bond Index is an unmanaged list of
long-term, fixed-rate, investment-grade, tax-exempt bonds
representative of the municipal bond market. The index does not
take into account brokerage commissions or other costs, may
include bonds different from those in the fund, and may pose
different risks from the fund.
The Consumer Price Index is a commonly used measure of inflation;
it does not represent an investment return.
The fund performance supplement has been prepared by Putnam
Management to provide additional information about the fund and
the indexes used for performance comparisons. The information is
not part of the portfolio of investments owned or the financial
statements.
Federal
income
tax information
The fund has designated all dividends paid from net investment
income during the fiscal year as exempt-interest dividends. Thus,
100% of these distributions are exempt from federal income tax.
For residents of the state of New York, 100% of the Fund's
distributions are also exempt from New York personal income tax.
During the fiscal year the fund distributed $0.165 per share from
short-term capital gains constituting "dividend income" for
federal income tax purposes.
The form 1099 you will receive in January 1995 will show the tax
status of all distributions paid to your account in calendar
1994.
<PAGE>
<TABLE>
<CAPTION>
Selected quarterly data*
(Unaudited)
For the period
November 27, 1992
(commencement of
Three months ended operations) to
April 30 January 31 October 31 July 31 April 30 January 31
1994 1993 1993 1993 1993** 1993
<S> <C> <C> <C> <C> <C> <C>
Total investment income
Total $878,124 $882,072 $892,116 $861,870 $813,747 $445,910
Per Share*** $.30 $.31 $.32 $.30 $.29 $.16
Net investment income available to common shareholders
Total $622,094 $685,489 $661,473 $655,607 $599,278 $442,456
Per Share*** $.22 $.24 $.23 $.23 $.21 $.16
Net realized and unrealized (loss) gain on investments
Total $(3,221,304) $(25,853) $914,702 $836,132 $855,666 $958,861
Per Share*** $(1.15) $(.01) $.34 $.29 $.30 $.34
Net (decrease) increase in net assets available to common shareholders resulting from operations
Total $(2,643,551) $659,636 $1,576,175 $1,491,739 $1,454,944 $1,401,317
Per Share*** $(.95) $.23 $.57 $.52 $.51 $.50
Net assets available to common shareholders at end of period
Total $39,465,525 $42,785,170 $43,214,505 $42,320,607 $41,490,981 $40,977,318
Per Share*** $13.86 $15.03 $15.18 $14.86 $14.57 $14.39
* In connection with the initial offering of shares of the Fund, Putnam Management agreed to waive its management fee
for the period November 27, 1992 to February 19, 1993.
** Preferred shares were issued on February 18, 1993.
*** Per common share.
/TABLE
<PAGE>
Your Trustees
George Putnam
Chairman
Chairman and President, The Putnam Funds
William F. Pounds
Vice Chairman
The Putnam Funds, Professor of Management,
Alfred P. Sloan School of Management,
Massachusetts Institute of Technology
Jameson Adkins Baxter
President,
Baxter Associates, Inc.
Hans H. Estin
Vice Chairman,
North American
Management Corporation
John A. Hill
Principal and
Managing Director,
First Reserve Corp.
Elizabeth T. Kennan
President
Mount Holyoke College
Lawrence J. Lasser
President and
Chief Executive Officer,
Putnam Investments, Inc.
Robert E. Patterson
Executive Vice President,
Cabot Partners
Limited Partnership
Donald S. Perkins
Director of various
corporations
George Putnam, III
President, New Generation
Research, Inc.
A.J.C. Smith
Chairman of the Board
and Chief Executive Officer,
Marsh & McLennan
Companies, Inc.
<PAGE>
W. Nicholas Thorndike
Director of various
corporations
<PAGE>
Putnam
New York
Investment
Grade
Municipal
Trust
Fund information
Investment manager
Putnam Investment Management, Inc.
One Post Office Square
Boston, MA 02109
Marketing services
Putnam Mutual Funds Corp.
One Post Office Square
Boston, MA 02109
Investor servicing agent
Putnam Investor Services
Mailing address:
P.O. Box 41203
Providence, RI 02940-1203
1-800-225-1581
Custodian
Putnam Fiduciary
Trust Company
Legal counsel
Ropes & Gray
Independent accountants
Price Waterhouse
(DALBAR logo)
Putnam Investor Services
has received the DALBAR
award each year since the
award's 1990 inception.
In more than 10,000 tests
of 38 shareholder
service components,
Putnam outperformed
the industry standard
in every category.
185-12425<PAGE>
Officers
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
John R. Verani
Vice President
Gary N. Coburn
Vice President
James E. Erickson
Vice President
David Eurkus
Vice President and Fund Manager
William N. Shiebler
Vice President
John D. Hughes
Vice President and Treasurer
Paul O'Neil
Vice President
Beverly Marcus
Clerk and Assistant Treasurer
This report is for the information of shareholders of Putnam New
York Investment Grade Municipal Trust. It may also be used as
sales literature when preceded or accompanied by the current
prospectus, which gives details of sales charges, investment
objectives and operating policies of the fund.
<PAGE>
-------------------
Bulk Rate
U.S. Postage
Paid
Boston, MA
Permit No. 53749
-------------------
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
<PAGE>
APPENDIX TO FORM N30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN
PRINTED AND EDGAR-FILED TEXTS:
(1) Rule lines for tables are omitted.
(2) Boldface and italic typefaces are displayed in normal type.
(3) Headers (e.g, the name of the fund) and footers (e.g., page
numbers and "The accompanying notes are an integral part of these
financial statements") are omitted.
(4) Because the printed page breaks are not reflected, certain
tabular and columnar headings and symbols are displayed
differently in this filing.
(5) Bullet points and similar graphic signals are omitted.
(6) Page numbering is different.
