Putnam New York Investment Grade Municipal Trust
SEMIANNUAL REPORT
October 31, 1994
[LOGO]
BOSTON * LONDON * TOKYO
<PAGE>
Performance highlights
"Our extensive credit research capabilities allow us to take advantage
of various disparities that may occur among various industry sectors
or regions of the state."
- -- David J. Eurkus, fund manager
Performance should always be considered in light of a fund's
investment strategy. Putnam New York Investment Grade Municipal Trust
is designed for investors seeking a high current income exempt from
federal and New York State and City personal income tax as Putnam
Investment Management believes is consistent with preservation of
capital.
SEMIANNUAL RESULTS AT A GLANCE
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- -----------------------------------------------------------------
Total return NAV Market price
- -----------------------------------------------------------------
(change in value during period
plus reinvested distributions)
6 months ended 10/31/94 -1.47% -7.01%
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Share value NAV Market price
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4/30/94 $13.86 $13.500
10/31/94 13.19 12.125
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Capital gains(1)
Long- Short-
Distributions No. Income term term Total
- -----------------------------------------------------------------
Common shares 6 $0.465 -- -- $0.465
Preferred shares
(200 shares) 987.48 -- -- 987.48
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<S> <C> <C>
Current return NAV Market price
- -----------------------------------------------------------------
End of period
Current dividend rate(2) 7.05% 7.67%
Taxable equivalent(3) 12.67 13.79
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<FN>
Performance data represent past results. For performance over longer
periods, see page 8. (1) Capital gains are taxable for federal and, in
most cases, state tax purposes. For some investors, investment income
may also be subject to the federal Alternative Minimum Tax. Investment
income may be subject to state and local taxes. (2) Income portion of
most recent distribution, annualized and divided by NAV or market
price at end of period. (3) Assumes maximum 44.36% combined federal
and state tax rate. Results for investors subject to lower tax rates
would not be as advantageous.
</TABLE>
<PAGE>
From the Chairman
[PHOTO]
(c) Karsh, Ottawa
Dear Shareholder:
When markets turn down, investors with vision look beyond the
unfolding negatives for opportunities farther down the road.
Throughout the first half of Putnam New York Investment Grade
Municipal Trust's fiscal year, there was plenty to obstruct the view.
The six months ended October 31, 1994, began in the midst of a bond
market decline touched off by the Federal Reserve Board's increase in
short-term interest rates. Had Fund Manager David Eurkus not taken
defensive action some months earlier, the toll on performance would
likely have been greater. Even so, the fund joined most other fixed-
income investments in the decline.
But Dave sees emerging strengths for tax-exempt securities. Supplies
may become tighter as fewer issues come to market and more investors
seek tax relief. He believes many sectors of the tax-exempt market,
including health care, education, and resource recovery, are poised
for growth.
Dave will focus on these positive factors as he seeks out the most
promising opportunities for your fund. His report on performance for
the first half of fiscal '95 and what he sees in store for the
remainder of the period follows.
Respectfully yours,
[SIGNATURE]
George Putnam
Chairman of the Trustees
December 14, 1994
<PAGE>
Report from the fund manager
David J. Eurkus
Damage control in a turbulent municipal bond market and positioning
for a market recovery have been our major priorities in managing
Putnam New York Investment Grade Municipal Trust over the past several
months. During the six months ended October 31, 1994, the fund
provided a total return of -1.47% at net asset value.
Meanwhile, it continued to deliver a competitive stream of income. Its
tax-free current dividend rate of 7.05% at net asset value at the end
of the period was comparable with a 12.67% taxable return for an
investor taxed at the maximum 44.36% combined federal and state rate.
Results for investors in lower brackets would not have been as
advantageous.
PROFILE OF A NERVOUS MARKET
As we have seen as recently as mid-November, the Federal Reserve Board
remains determined to use increases in short-term interest rates to
keep inflation in check. The overall result of the policy is to raise
rates across the board. While this may have positive implications for
the income stream of bond portfolios, including your fund's, the most
significant result thus far has been to keep the fixed-income markets
jittery and, therefore, volatile.
Some relative calm returned briefly as the bond market stabilized over
the summer. In early October, when many large tax-exempt bond funds
started making fiscal-year-end portfolio adjustments for tax purposes,
municipal bonds began selling at large discounts to taxable bonds.
This sell-off created yet another disruption in the battered municipal
bond market.
Opportunity is often the companion of turmoil. In this oversold
market, we are seeking out attractively priced issues to add to your
fund's portfolio. Perhaps more significantly, however, we believe the
market is now near the bottom. If it recovers over the next several
months, as we believe it will, the effect should be a healthy rise in
your fund's net asset value.
EMPHASIS REMAINS ON CAUTION
Since the current unsettled market environment seems destined to
persist for a while, we will continue to use a cautious approach in
managing your fund. The firmness of our resolve is evidenced by the
minimal changes we have made in the portfolio's sector weightings
during the period.
Our most important defensive strategy has been to keep the portfolio's
duration relatively short. Duration measures the price sensitivity of
a bond or a portfolio of bonds to a change in interest rates. Like
maturity, with which it is often confused, duration is measured in
years. The shorter the duration, the less volatility you can generally
expect from the portfolio.
We also used bonds whose stated yields are higher than prevailing
interest rates. Holding these so-called premium-coupon bonds in a
rising-rate environment can help reduce price fluctuations because
their higher yields tend to make their prices less sensitive to rising
interest rates. Furthermore, these bonds' higher income stream
represents a greater portion of their return. We believe this
combination should provide at least a temporary floor for their
prices.
CREDIT QUALITY OVERVIEW*
[PIE CHART]
Plot information
- -----------------------------------------------------------------
AAA = 26.9%
AA = 28.0%
A = 10.3%
BBB/Baa = 33.1%
*Based on net assets on 10/31/94.
NEW YORK DEBT APPEARS LIKELY TO REMAIN IN SHORT SUPPLY
Since the fund began its new fiscal year on May 1, 1994, we have
become more convinced than ever that a supply/demand balance favorable
to New York tax-exempt investors will remain in place for the next
several months. Nationally, as well as in New York, the pace of
refinancing older higher-interest rate debt has fallen off. Overall,
issuance of new municipal debt is more than 40% behind year-earlier
levels.
In New York, a debt-reform policy has cut the level of issuance of new
debt in half, from $30 billion in 1993 to a projected $15 billion in
1994. While the election of a new governor may change this policy, we
expect that New York municipal debt will remain in short supply over
the new term.
New York has also taken steps to improve the efficiency of publicly
funded programs. Along with a dwindling supply of debt, these new
efficiency measures could make the state's securities unusually
attractive investments over the long term.
Furthermore, New York state's economy, broad and diversified, should
continue to rejuvenate. The Port of New York and New Jersey is
enjoying the highest revenues in more than a decade as it handles a
growing stream of exports to major European and South American
economies. Upstate, brisk trade with Canada is pumping life into
business. As a result, we believe tax revenues will continue to grow.
If this occurs, the quality of outstanding debt across the state
should improve.
TAX-CONSCIOUS INVESTORS SHOULD KEEP DEMAND STEADY
Nationally, implementation of the new tax law at the beginning of 1994
has resulted in higher taxes for many investors. The higher federal
income tax rates have made interest in tax-free securities more
intense.
TOP INDUSTRY SECTORS*
[BAR CHART]
Plot Points
- -----------------------------------------------------------------
Hospitals/Health care 20.7%
Transportation 14.1%
Education 14.0%
Utilities 13.9%
*Based on net assets on 10/31/94.
In New York, even though tax reduction was a major theme of George
Pataki's gubernatorial campaign, we do not believe tax cuts will be
enacted without an accompanying reduction in spending. As this report
was being written, we saw no evidence that Governor-elect Pataki or
the legislature are ready to address that side of the ledger with the
required vigor. For New Yorkers, whose incomes, therefore, are likely
to remain among the nation's most highly taxed, the incentive to seek
tax-free income should be even more intense.
OUTLOOK: POSITIONED FOR RECOVERY
The combined prospect of a short supply and heightened demand should
translate into a stronger New York municipal bond market once current
uncertainties have been surmounted. Your fund's portfolio is well
balanced and diversified across the broad spectrum of New York's
industry. Because we are locking in higher yields as opportunities
arise, we also believe the fund will continue to provide a competitive
stream of current income in the months ahead.
All of these factors lead us to believe that your fund is well
protected against further near-term turbulence and well positioned to
participate in the recovery which must eventually come to the New York
and national tax-exempt bond markets.
The views expressed here are exclusively those of Putnam Management
and are not meant as investment advice.
<PAGE>
Performance summary
This section provides, at a glance, information about your fund's
performance. Total return shows how the value of the fund's shares
changed over time, assuming you held the shares through the entire
period and reinvested all distributions back into the fund. We show
total return in two ways: on a cumulative long-term basis and on
average how the fund might have grown each year over varying periods.
For comparative purposes, we show how the fund performed relative to
appropriate indexes and benchmarks.
TOTAL RETURN FOR PERIODS ENDED 10/31/94
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Lehman Bros.
Municipal
NAV Market Price Bond Index CPI
- ----------------------------------------------------------------------
6 months -1.47% -7.01% -0.85 1.43%
1 year -6.21 -14.17 -4.36 2.61
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Life of fund
(since 11/27/92) 7.13 -8.15 7.19 5.28
Annual average 3.63 -4.31 3.66 2.70
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TOTAL RETURN FOR PERIODS ENDED 9/30/94
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NAV MARKET PRICE
- ----------------------------------------------------------------------
6 months 0.50% -6.69%
1 year -3.78 -10.74
- ----------------------------------------------------------------------
Life of fund
(since 11/27/92) 9.20 -4.97
Annual average 4.90 -2.73
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<FN>
Performance data represent past results. Investment returns and
principal value will fluctuate so an investor's shares, when sold, may
be worth more or less than their original cost. Fund performance data
do not take into account any adjustment for taxes payable on
reinvested distributions.
</TABLE>
<PAGE>
TERMS AND DEFINITIONS
Net asset value (NAV) is the value of all your fund's assets, minus
any liabilities, the liquidation preference and cumulative undeclared
dividends paid on the remarketed preferred shares, divided by the
number of outstanding common shares.
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 American Stock Exchange.
COMPARATIVE BENCHMARKS
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 than the fund.
Consumer Price Index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
<PAGE>
Portfolio of investments owned
October 31, 1994 (Unaudited)
MUNICIPAL BONDS AND NOTES (98.3%)(a)
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PRINCIPAL AMOUNT RATINGS(b) VALUE
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New York (91.0%)
- ----------------------------------------------------------------------
$1,610,000 Albany, Parking Auth. Rev.
Bonds, Ser. A, 6.85s, 11/1/12 Baa $1,587,862
3,000,000 Babylon, Indl. Dev. Agcy.
Resource Recvy. Rev. Bonds
(Ogden Martin Syst.),
Ser. A, 8 1/2s, 1/1/19 Baa 3,232,500
960,000 Ithaca, Hsg. Corp. Mtge. Rev.
Bonds (Eddygate Park Apts.
Project), 9s, 6/1/06 BBB/P 957,600
1,500,000Metro. Trans. Auth. Transit Fac.
Rev. Bonds, Ser. F, 8 3/8s, 7/1/16 AAA 1,616,250
600,000NY City General Obligation (G.O.)
Variable Rate Demand Notes
(VRDN), Sub. Ser. B4,
3 1/2s, 8/15/23 VMIG1 600,000
500,000 NY City, Cultural Res. VRDN
(American Museum of Natural
History), Ser. B, Municipal Bond
Insurance Assn. (MBIA),
3.1s, 4/1/21 AAA 500,000
NY City, G.O Bonds
1,385,000 Ser. A, 8s, 8/15/19 A 1,585,825
1,700,000 Ser. B, 7s, 10/1/13 A 1,674,500
1,300,000 NY State Dorm. Auth. Residual
Interest Bonds (RIBS) (Cornell U.),
10.764s, 7/1/30 (acquired 1/6/93,
cost $1,533,675)(c) AA 1,480,375
NY State Dorm. Auth. Rev. Bonds
1,500,000(City U.), Ser. T, 10 1/4s, 7/1/12 Baa 1,580,625
1,600,000 (The Society of NY Hosp.),
9 3/4s, 7/1/15 Baa 1,640,000
1,800,000 (State Univ. Edl. Facs.),
Ser. A, 6 3/4s, 5/15/21 AAA 1,944,000
3,500,000NY State Energy Research & Dev.
Auth. Elec. Fac. Rev. Bonds
(Cons. Edison Co. of NY, Inc.
Project), 9s, 8/15/20 Aa 3,661,875
1,600,000NY State Energy Research & Dev.
Auth. Poll. Control Rev. Bonds
(Niagara Mohawk Pwr. Corp.),
Ser I, 8 7/8s, 11/1/25 Baa 1,684,000
1,600,000NY State Environmental Fac. Corp.
Poll. Control Rev. Bonds (State
Wtr. Revolving Fund), Ser A,
7 1/2s, 6/15/12 Aa 1,742,000
1,800,000NY State Local Govt. Asst. Corp.
Rev. Bonds Ser. B, 6 1/4s, 4/1/21 A 1,653,750
1,310,000 NY State Med. Care Fac. Fin.
Agcy. Rev. Bonds (Mental Hlth.
Svcs. Fac.), Ser. D, 7.4s, 2/15/18 Baa 1,362,400
NY State Med. Care Fac. Fin. Agcy.
Rev. Bonds (Hosp. & Nursing Home Mtge.)
1,600,000Ser. A, Federal Housing Admin.
(FHA) Insd., 8s, 2/15/27 Aaa 1,732,000
1,600,000 Ser. A, 7.35s, 8/15/11 Baa 1,678,000
1,800,000 Ser. C, 6.65s, 8/15/32 Aa 1,710,000
1,800,000Ser. D, FHA Insd., 6.6s, 2/15/31 AAA 1,716,750
1,800,000Ser. C, FHA Insd., 6 3/8s, 8/15/29 AAA 1,651,500
2,000,000 NY State Pwr. Auth. RIBS
5.843s, 1/1/14 (acquired 12/8/93,
cost $1,860,000)(c) AA $1,255,000
1,450,000NY State Urban Dev. Corp. Rev. Bonds
(Correctional Fac.), 8s, 1/1/15 Aaa 1,533,375
2,000,000Port Auth. of NY & NJ Cons. Bonds
53rd Ser., 8.7s, 7/15/20 AA 2,100,000
1,400,000 Port Auth. of NY & NJ Cons.
RIBS 9.435s, 8/1/26 (acquired 7/19/93,
cost $1,687,700)(c) AA 1,384,250
------------
43,264,437
Puerto Rico (3.1%)
- ----------------------------------------------------------------------
1,365,000 Puerto Rico, Pub. Bldg. Auth.
Edl. & Hlth. Fac. Rev. Bonds,
Ser. L, 6 7/8s, 7/1/21 AAA 1,494,675
Virgin Islands (4.2%)
- ----------------------------------------------------------------------
2,000,000Virgin Islands, Pub. Fin. Auth.
Rev. Bonds (Matching Funds Loan
Notes), Ser. A, 7 1/4s, 10/1/18 BBB/P 1,987,500
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Total Investments (cost $49,048,142)(d) $46,746,612
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<FN>
NOTES
(a) Percentages indicated are based on total net assets of
$47,552,671. Net assets available to common shareholders are
$37,558,492, which corresponds to a net asset value per common
share of $13.18.
(b) The Moody's or Standard & Poor's ratings indicated are believed
to be the most recent ratings available at October 31, 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 what the
agencies would ascribe to these securities at October 31, 1994.
Securities rated by Putnam are indicated by "/P" and are not
publicly rated.
(c) Restricted as to public resale, excluding 144A securities. 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 October 31, 1994 was $4,119,625 or 8.7% of net assets.
(d The aggregate identified cost on a tax basis is $49,048,142
resulting in gross unrealized appreciation and depreciation of
$229,710, and $2,531,240, respectively, or net unrealized
depreciation of $2,301,530.
The rates shown on Residual Interest Bonds (RIBS) which are
securities paying variable interest rates that vary inversely to
changes in market interest rates and Variable Rate Demand Notes
(VRDN), are the current interest rates at October 31, 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 October 31, 1994 (as a percentage of net assets):
Hospitals/Health Care 20.7%
Transportation 14.1
Education 14.0
Utilities 13.9
The fund had the following insurance concentration greater than
10% on October 31, 1994 (as a percentage of net assets):
FHA 10.7%
</TABLE>
<PAGE>
Statement of assets and liabilities
October 31, 1994 (Unaudited)
<TABLE><CAPTION>
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Assets
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Investments in securities, at value
(identified cost $49,048,142) (Note 1) $46,746,612
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Cash 223,815
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Interest receivable 1,007,166
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Unamortized organization expenses (Note 1) 7,073
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Total assets 47,984,666
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Liabilities
- ----------------------------------------------------------------------
Distributions payable to shareholders $254,114
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Payable for compensation of Manager (Note 3) 87,647
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Payable for investor servicing and custodian fees (Note 3) 9,567
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Payable for compensation of Trustees (Note 3) 89
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Payable for administrative services (Note 3) 1,894
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Payable for offering and organization costs (Notes 1 and 2) 26,874
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Other accrued expenses 51,810
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Total liabilities 431,995
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Net assets $47,552,671
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Represented by
- ----------------------------------------------------------------------
Remarketed preferred shares, without par value;
200 shares authorized (200 shares issued at
$50,000 per share liquidation preference) (Note 2) $10,000,000
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Common shares, without par value; unlimited
shares authorized; 2,847,092 shares outstanding 39,508,682
- ----------------------------------------------------------------------
Undistributed net investment income 112,924
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Accumulated net realized gain on investment transactions 232,595
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Net unrealized depreciation of investments (2,301,530)
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Net assets $47,552,671
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Computation of net asset value
- ----------------------------------------------------------------------
Remarketed preferred shares at liquidation preference $10,000,000
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Cumulative undeclared dividends on remarketed preferred shares 14,179
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Net assets allocated to remarketed preferred
shares at liquidation preference 10,014,179
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Net assets available to common shares:
Net asset value per share $13.18
($37,538,492 divided by 2,847,092 shares) 37,538,492
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Net assets $47,552,671
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</TABLE>
<PAGE>
Statement of operations
For the six months ended October 31, 1994 (Unaudited)
<TABLE><CAPTION>
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Tax exempt interest income $1,774,555
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Expenses:
- ----------------------------------------------------------------------
Compensation of Manager (Note 3) 174,797
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Investor servicing and custodian fees (Note 3) 23,388
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Compensation of Trustees (Note 3) 4,804
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Reports to shareholders 17,650
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Auditing 19,949
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Legal 5,345
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Postage 4,847
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Administrative services (Note 3) 2,530
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Amortization of organization expenses (Note 1) 1,155
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Registration fees 605
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Exchange listing fees 3,781
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Preferred share remarketing agent fees 15,083
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Other 1,419
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Total expenses 275,353
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Net investment income 1,499,202
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Net realized loss on investments (Notes 1 and 4) (21,176)
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Net unrealized depreciation of investments
during the period (1,883,179)
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Net loss on investments (1,904,355)
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Net decrease in net assets resulting from operations $(405,153)
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</TABLE>
<PAGE>
Statement of changes in net assets
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Six months ended Year ended
October 31 April 30
1994* 1994
- ----------------------------------------------------------------------
Decrease in net assets
- ----------------------------------------------------------------------
Operations:
- ----------------------------------------------------------------------
Net investment income $1,499,202 $2,996,101
- ----------------------------------------------------------------------
Net realized gain (loss) on investments (21,176) 507,759
- ----------------------------------------------------------------------
Net unrealized (depreciation)
appreciation of investments (1,883,179) (2,004,082)
- ----------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from operations (405,153) 1,499,778
- ----------------------------------------------------------------------
Distributions to remarketed preferred shareholders from:
- ----------------------------------------------------------------------
Net Investment Income (197,496) (371,438)
- ----------------------------------------------------------------------
Net realized gains -- (44,341)
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Net increase (decrease) in net assets
resulting from operations applicable to
common shareholders (excluding cumulative
undeclared dividends on remarketed
preferred shares of $14,179 and $14,179,
respectively) (602,649) 1,083,999
- ----------------------------------------------------------------------
Distributions to common shareholders from:
- ----------------------------------------------------------------------
Net investment income (1,324,384) (2,647,978)
- ----------------------------------------------------------------------
Net realized gain on investments -- (438,443)
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Underwriting commissions and offering
costs on remarketed preferred shares (Note 2) -- (8,855)
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Total decrease in net assets (1,927,033) (2,011,277)
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Net assets
- ----------------------------------------------------------------------
Beginning of period 49,479,704 51,490,981
- ----------------------------------------------------------------------
End of period (including undistributed
net investment income of $112,924 and
$135,602, respectively) $47,552,671 $49,479,704
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Number of fund shares
- ----------------------------------------------------------------------
Common shares outstanding at beginning
and end of period 2,847,092 2,847,092
- ----------------------------------------------------------------------
Remarketed preferred shares outstanding at
beginning and end of period 200 200
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<FN>
* Unaudited.
</TABLE>
<PAGE>
Financial highlights
(For a share outstanding throughout the period)
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For the period
November 27, 1992
Six months (commencement
ended Year ended of operations) to
October 31 April 30 April 30
1994*** 1994 1993
- ----------------------------------------------------------------------
Net asset value,
beginning of period $13.86 $14.57 $13.99*
- ----------------------------------------------------------------------
Investment operations:
- ----------------------------------------------------------------------
Net investment income .53 1.05 .40(a)
- ----------------------------------------------------------------------
Net realized and unrealized
gain on investments (.66) (.53) .64
- ----------------------------------------------------------------------
Total from investment operations (.13) .52 1.04
- ----------------------------------------------------------------------
Less distributions from:
- ----------------------------------------------------------------------
Net investment income:
- ----------------------------------------------------------------------
to preferred shareholders (.07) (.13) (.03)**
- ----------------------------------------------------------------------
to common shareholders (.47) (.93) (.31)
- ----------------------------------------------------------------------
Net realized gain on investments
- ----------------------------------------------------------------------
to preferred shareholders** -- (.02) --
- ----------------------------------------------------------------------
to common shareholders -- (.15) --
- ----------------------------------------------------------------------
Total distributions (.54) (1.23) (.34)
- ----------------------------------------------------------------------
Preferred share offering costs -- -- (.12)
- ----------------------------------------------------------------------
Net asset value, end of period
(common shares) $13.19 $13.86 $14.57
- ----------------------------------------------------------------------
Market value, end of period
(common shares) 12.13 $13.50 $15.00
- ----------------------------------------------------------------------
Total investment return at market
value (common shares) (%)(d) (7.01)(c) (3.25) 2.09(c)
- ----------------------------------------------------------------------
Net assets, end of period
(in thousands) $47,553 $49,480 $51,491
- ----------------------------------------------------------------------
Ratio of expenses to average
net assets (%)(b) .70(c) 1.23 .35(a)(c)
- ----------------------------------------------------------------------
Ratio of net investment income
to average net assets (%)(b) 3.33(c) 6.23 2.60(a)(c)
- ----------------------------------------------------------------------
Portfolio turnover rate (%) 4.01(c) 15.18 32.27(c)
- ----------------------------------------------------------------------
<FN>
* Represents initial net asset value of $14.10 less offering
expenses of approximately $0.11.
** Preferred shares were issued on February 18, 1993
*** Unaudited
(a) Reflects a waiver of the management fee for the period November
27, 1992 to February 19, 1993. As a result of the waiver,
expenses of the fund for the period ended April 30, 1993 reflect
a reduction of $0.02 per share.
(b) Ratios reflect net assets available to common shares only; net
investment income ratio also reflects reduction for income
dividend payments to preferred shareholders.
(c) Not annualized.
(d) Total investment return assumes dividend reinvestment and does
not reflect the effect of sales charges.
<PAGE>
Notes to financial statements
October 31, 1994 (Unaudited)
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 a 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.
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 rates for the remarketed preferred shares on
October 31, 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 determined by the remarketing
agent.
The amount and character of income and gains to be distributed are
determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences
include treatment of organization expenses, wash sales and futures
contracts. Reclassifications are made to the fund's capital accounts
at the close of the fund's fiscal year to reflect income and gains
available for distribution (or available capital loss carryovers)
under income tax regulations.
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
Remarketed preferred shares
The 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. At October 31, 1994 cumulative undeclared dividends were
$14,179.
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 six months ended
October 31, 1994, the fund incurred no additional dividends.
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 October 31, 1994, there were no such restrictions
on the fund.
Note 3
Management fee, administrative services, and other transactions
Compensation of Putnam Investment Management, Inc. (Putnam Management)
the fund's manager, a wholly owned subsidiary of Putnam Investments,
Inc. 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 in the aggregate
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 outstanding
during the period).
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 six
months ended October 31, 1994, the fund paid $2,530 for these
services.
Trustees of the fund receive an annual Trustee's fee of $510 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 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 six months ended October 31,
1994 amounted to $23,388.
Investor servicing and custodian fees reported in the Statement of
operations for the six months ended October 31, 1994 have been reduced
by credits allowed by PFTC.
Note 4
Purchases and sales of securities
During the six months ended October 31, 1994, purchases and sales of
investment securities other than short-term investments aggregated
$1,941,349 and $1,887,162 respectively. Purchases and sales of short-
term municipal obligations aggregated $800,000 and $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>
Selected quarterly data* (Unaudited)
</TABLE>
<TABLE><CAPTION>
<S> <C> <C> <C>
Three months ended
- ----------------------------------------------------------------------
October 31 July 31 April 30
1994 1994 1994
- ----------------------------------------------------------------------
Total investment income
Total $882,892 $891,663 $878,124
Per share(+) $.31 $.31 $.30
- ----------------------------------------------------------------------
Net investment income available to common shareholders
Total $638,855 $662,851 $622,094
Per share(+) $.23 $.23 $.22
- ----------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments
Total $(1,859,549) $(44,806) $(3,221,304)
Per share(+) $(.64) $(.02) $(1.15)
- ----------------------------------------------------------------------
Net increase (decrease) in net assets available to common
shareholders resulting from operations
Total $(1,220,694) $618,045 $(2,643,551)
Per share(+) $(.41) $.21 $(.95)
- ----------------------------------------------------------------------
Net assets available to common shareholders at end of period
Total $37,538,492 $39,421,581 $39,465,525
Per share(+) $13.19 $13.85 $13.86
- ----------------------------------------------------------------------
Selected quarterly data (continued)
<C> <C> <C> <C> <C>
For the period
November 27, 1992
- ----------------------------------------------------- (commencement of
January 31 October 31 July 31 April 30 operations) of
1994 1993 1993 1993 January 31, 1993
- ----------------------------------------------------------------------
$882,072 $892,116 $861,870 $813,747 $445,910
$.31 $.32 $.30 $.29 $.16
- ----------------------------------------------------------------------
$685,489 $661,473 $655,607 $599,278 $442,456
$.24 $.23 $.23 $.21 $.16
- ----------------------------------------------------------------------
$(25,853) $914,702 $836,132 $855,666 $958,861
$(.01) $.34 $.29 $.30 $.34
- ----------------------------------------------------------------------
$659,636 $1,576,175 $1,491,739 $1,454,944 $1,401,317
$.23 $.57 $.52 $.51 $.50
- ----------------------------------------------------------------------
$42,785,170 $43,214,505$42,320,607 $41,490,981 $40,977,318
$15.03 $15.18 $14.86 $14.57 $14.39
- ----------------------------------------------------------------------
<FN>
* 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>
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
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
George Putnam, Chairman
William F. Pounds, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
John A. Hill
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
George Putnam, III
A.J.C. Smith
W. Nicholas Thorndike
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
Gary N. Coburn
Vice President
James E. Erickson
Vice President
Blake Anderson
Vice President
David J. Eurkus
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O'Neil
Vice President
John D. Hughes
Vice President and Treasurer
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, and the most recent copy of Putnam's
Quarterly Performance Summary. For more information, or to request a
prospectus, call toll free: 1-800-225-1581.
<PAGE>
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
Bulk Rate
U.S. Postage
PAID
Putnam
Investments
183-15437
<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 names of the fund) and footers (e.g. page
numbers and OThe accompanying notes are an integral part of these
financial statementsO) 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 symbols are omitted.
(6) Page Numbering is different.
