Putnam
New York
Investment Grade
Municipal Trust
SEMIANNUAL REPORT
October 31, 1997
[LOGO: BOSTON * LONDON * TOKYO]
Fund highlights
* "Teamwork, including the efforts of an exceptional group of credit
and industry analysts, continues to drive the performance of Putnam
New York Investment Grade Municipal Trust and enable it to maintain a
solid dividend even in today's low interest-rate environment."
-- Howard K. Manning, fund manager
* "I now believe that the next scarcity will be in municipal bonds and
that the dearth will last a decade or more. That means higher prices
and lower yields. It means buy your municipals now."
-- "Why Munis are a Compelling Buy -- Now,"
Marilyn Cohen, Forbes, October 20, 1997
CONTENTS
4 Report from Putnam Management
9 Fund performance summary
12 Portfolio holdings
14 Financial statements
21 Results of October 9, 1997 shareholder meeting
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
[copyright] Karsh, Ottawa
Dear Shareholder:
Against a backdrop of lingering concerns about the economy, interest
rates, and renewed inflation, the municipal bond market maintained a
semblance of stability during the six months ended October 31, 1997. In
that respect, investors mirrored the mood in the national tax-exempt
market.
Recognizing the fragility of this generally positive environment,
Howard Manning, Putnam New York Investment Grade Municipal Trust's
manager, pursued a slightly defensive policy during the period, which
encompasses the first half of the fund's fiscal year. As he looks
toward the months immediately ahead, Howard sees little reason to waver
from this course.
In the report that follows, he provides more details about the fiscal
year's first half and provides some insights into what he believes is
in store for the second half.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
December 17, 1997
Report from the Fund Manager
Howard K. Manning
Over the past year, New York municipal bond investors benefited from a
favorable economic and interest-rate environment at the national,
state, and local levels. With this as a backdrop, Putnam New York
Investment Grade Municipal Trust delivered attractive results by
leveraging its in-depth research capabilities to emphasize relative
value, yield curve positioning, and credit selection. These strategies
have created a solid, yet flexible structure that should continue to
help the portfolio produce a high level of income free from federal,
New York State, and New York City income taxes. For a look at more
detailed performance figures, please refer to the performance summary
that begins on page 9.
* MUNICIPAL MARKET FEELS EFFECTS OF OCTOBER CORRECTION
Although an atmosphere of low volatility and narrow trading ranges
characterized fixed-income markets for most of 1997, the last week of
October changed all that. The Pacific Rim crisis and the worldwide
equity markets correction sparked enormous day-to-day volatility in the
stock and bond markets, and their influence has certainly been felt in
the municipal bond markets.
Early in the year, these markets were enjoying relative stability,
stemming from an ongoing tug of war between high economic growth (bad
for the bond market) and favorable low-inflation news (good for the
bond market). Due to the low interest rate environment, we have seen
many new issues and refunding issues come to market and the
overabundant supply has held back bond prices. The October correction
in world equity markets, however, resulted in an explosive rally for
bonds. Since then, municipal bond yields have become extremely
attractive relative to taxable Treasuries, and we have been taking full
advantage of the resulting opportunities.
* NEW YORK MUNICIPAL INVESTORS BENEFIT FROM STATE'S FISCAL STRENGTH
Within this relatively positive national economic and interest-rate
environment, New York municipal bond investors found the semiannual
period ripe with opportunity. In New York, the state's solid economic
health and sound fiscal management earned it rating upgrades for its
general obligation and state-appropriated bonds.
The year's highlight, however, was New York City. Shining from Wall
Street's banner year and investor demand for higher-yielding bonds, the
city's general obligation bonds rose in price to become some of the
top-performing municipal bonds nationally. The conservative assumptions
in Mayor Giuliani's fiscal 1998 budget, especially with regard to
earnings expectations for Wall Street firms, led us to conclude that
the bonds' prospects in the months ahead remain attractive.
While the rating agencies did not raise New York City's credit ratings,
investors recognized the situation as a promising opportunity. Higher
tax revenues offset some of the city's need to issue new debt. This led
to anticipation of a lower supply that investors believed could boost
prices of existing bonds. Furthermore, the city's longer-term debt
burdens were expected to be alleviated in part with the establishment
of the Transitional Finance Authority.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Health care 21.2%
Education 20.7%
Transportation 15.1%
Utilties 9.9%
Housing 8.2%
*Based on net assets as of 10/31/97. Holdings will vary over time.
In addition to credit factors, we believe spread compression helped
stimulate demand for New York municipal bonds. This phenomenon drove
the prices of lower-rated bonds higher -- and yields lower -- than
their higher-rated counterparts. Demand was particularly strong for New
York municipal bonds in general, since New York City and New York
state-appropriated bonds represent the largest and most liquid BBB-
rated market within the national tax-exempt sector.
* TARGETED RESEARCH TAGS TOP-PERFORMING AIRLINE BONDS
Careful security selection and in-depth credit research often represent
important tools for improving fund returns, and this semiannual period
was no exception. This process entails identifying the most promising
issues within the credit markets and is especially important when
reviewing higher-risk bond issuers. For the past three years,
tremendous profitability among leading airline carriers and attractive
revenue bond structures have led Putnam's research department to view
airline industry bonds very positively. Over the past six months, the
fund benefited from this bullishness through its substantial position
in New York City Industrial Development Authority bonds, which are
backed by American Airlines. In fact, these bonds were among the best-
performing bonds in the municipal marketplace during the period.
* FLEXIBLE STRUCTURE FOCUSED ON INCOME AND RELATIVE VALUE
Interest rates have remained relatively low throughout the semiannual
period, with no real sign that they will begin to rise anytime soon.
Accordingly your fund focused on capturing relative value rather than
making interest-rate management a key focus. We structured the
portfolio to reflect a neutral interest-rate stance and built positions
we believed would provide attractive income over the long term.
[GRAPHIC OMITTED: pie chart CREDIT QUALITY OVERVIEW]
CREDIT QUALITY OVERVIEW*
A 7.8%
Aa 21.3%
Aaa 37.9%
Baa 30.6%
VMIGI 2.4%
* As a percentage of market value as of 10/31/97. A bond rated Baa or
higher is considered investment grade. All ratings reflect Moody's
descriptions unless noted otherwise; percentages may include unrated
bonds considered by Putnam Management to be of comparable quality.
Ratings will vary over time.
One of our strategies was to sell the fund's more interest-rate
sensitive holdings, including bonds that had low coupons with
maturities longer than 20 years. We replaced them with bonds in the 5
1/4% to 6 1/2% coupon range with maturities of approximately 15 to 20
years. These bonds offer extremely attractive yields now, along with
the potential to increase in value as they approach maturity and shift
to the shorter end of the yield curve.
We also found relative value through the purchase of premium bonds --
those selling at prices above par value -- with high coupons. During
the period, these holdings produced high income for the fund. At the
same time, their defensive structure generally means that they
experience less price volatility in response to changing interest rates
than do discount or current-coupon bonds.
The current low interest-rate environment also made financial leverage
a particularly powerful tool for enhancing the fund's dividend during
the period. This technique involves issuing preferred shares that pay
dividends at prevailing short-term rates and then selling these shares
to corporate and institutional investors; the resulting assets are then
invested in longer-term bonds with higher yields. The difference
between the dividend paid to the holders of preferred shares and the
income earned by the fund from its longer-term investments augments the
flow of income to holders of common shares. With demand for short-term
municipal products high and interest rates low during the period,
financial leverage was an ideal way to boost income.
* SEEKING OPPORTUNITY IN VOLATILITY
Once the worldwide equity markets have settled down -- which may take a
few months -- we expect to return to a more typical municipal bond
market environment. For the time being though, it appears that most
markets, including municipals, have lost sight of the fundamental
economic reasons that typically cause extreme reactions. We realize
that volatility can be very unsettling for investors, but as
professional money managers, we can take advantage of these short-term
distortions and improve the fund's return over time.
While national trends may remain a bit unsettled for some time, the
credit outlook for New York City and New York State remains strong.
This, combined with ongoing healthy demand for municipal bonds, should
cause the state's municipal bond prices to rise further relative to
alternative investments. In our opinion, these same factors would
cushion the effects of a softening in the market, thus creating a floor
if prices were to decline. As time goes on, however, we continue to
think the strong economy will put moderate upward pressure on interest
rates. We anticipate that the news on inflation will slowly
deteriorate. Consequently, we will keep a vigilant eye on the economy
while continuing to rely on in-depth research to evaluate new and
existing holdings for the fund.
The views expressed here are exclusively those of Putnam Management.
They are not meant as investment advice. Although the described
holdings were viewed favorably as of 10/31/97, there is no guarantee
the fund will continue to hold these securities in the future.
Performance summary
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 high current income free from federal, state, and
New York City income tax, consistent with preservation of capital.
TOTAL RETURN FOR PERIODS ENDED 10/31/97
Lehman Bros. Consumer
Market Municipal Price
NAV price Bond Index Index
- -----------------------------------------------------------------------
6 months 7.02% 8.94% 6.36% 0.87%
- -----------------------------------------------------------------------
1 year 8.89 8.19 8.50 2.08
- -----------------------------------------------------------------------
Life of fund (11/27/92) 38.89 25.88 41.23 13.80
Annual average 6.89 4.78 7.27 2.66
- -----------------------------------------------------------------------
Performance data represent past results and do not reflect future
performance. They do not take into account any adjustment for taxes
payable on reinvested distributions. Investment returns, net asset
value and market price will fluctuate so that an investor's shares when
sold may be worth more or less than their original cost.
PRICE AND DISTRIBUTION INFORMATION
6 months ended 10/31/97
- -----------------------------------------------------------------------
Distributions (common shares)
- -----------------------------------------------------------------------
Number 6
- -----------------------------------------------------------------------
Income $0.405
- -----------------------------------------------------------------------
Capital gains1
- -----------------------------------------------------------------------
Total $0.405
- -----------------------------------------------------------------------
Preferred shares Series A (200 shares)
- -----------------------------------------------------------------------
Income $966.57
- -----------------------------------------------------------------------
Total $966.57
- -----------------------------------------------------------------------
Share value (common shares): NAV Market price
- -----------------------------------------------------------------------
4/30/97 $13.49 $12.875
- -----------------------------------------------------------------------
10/31/97 14.02 13.625
- -----------------------------------------------------------------------
Current return (common shares): NAV Market price
- -----------------------------------------------------------------------
Current dividend rate2 5.78% 5.94%
- -----------------------------------------------------------------------
Taxable equivalent3 10.72 11.02
- -----------------------------------------------------------------------
1Capital gains, if any, 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.
2Income portion of most recent distribution, annualized and divided by
NAV or POP at end of period.
3Assumes maximum 46.08% combined federal ,state and city tax rate and
end-of-period dividend rate. Results for investors subject to lower
tax rates would not be as advantageous.
TOTAL RETURN FOR PERIODS ENDED 9/30/97
(most recent calendar quarter)
Market
NAV price
- -----------------------------------------------------------------------
6 months 7.30% 10.46%
- -----------------------------------------------------------------------
1 year 9.70 11.77
- -----------------------------------------------------------------------
Life of fund (11/27/92) 38.11 26.99
Annual average 6.90 5.60
- -----------------------------------------------------------------------
Performance data represent past results and do not reflect future
performance. They do not take into account any adjustment for taxes
payable on reinvested distributions. Investment returns, net asset
value and market price will fluctuate so that an investor's shares when
sold may be worth more or less than their original cost.
TERMS AND DEFINITIONS
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 in the fund.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities and the net assets allocated to 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
New York 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.
Consumer Price Index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
*Securities indexes assume reinvestment of all distributions and
interest payments and do not take in account brokerage fees or taxes.
Securities in the fund do not match those in the indexes and
performance of the fund will differ. It is not possible to invest
directly in an index.
<TABLE>
<CAPTION>
Portfolio of investments owned
October 31, 1997 (Unaudited)
Key to Abbreviations
AMBAC -- AMBAC Indemnity Corporation
FGIC -- Financial Guaranty Insurance Company
FHA Insd. -- Federal Housing Administration Insured
FSA -- Financial Security Assurance
G.O. Bonds -- General Obligation Bonds
IFB -- Inverse Floating Rate Bonds
VRDN -- Variable Rate Demand Notes
MUNICIPAL BONDS AND NOTES (101.1%) *
PRINCIPAL AMOUNT RATINGS** VALUE
<S> <C> <C> <C>
New York (89.7%)
- ------------------------------------------------------------------------------------------------
$ 905,000 Ithaca, Hsg. Corp. Mtge. Rev. Bonds
(Eddygate Park Apts.), 9s, 6/1/06 BBB+/P $ 941,326
1,000,000 Metropolitan Trans. Auth. Svcs. Contract Fac.
Rev. Bonds (Trans. Fac.), Ser. O, 5 3/4s, 7/1/13 Baa 1,051,250
NY City, G.O. Bonds
1,385,000 Ser. A, 8s, 8/15/19 Aaa 1,587,556
525,000 Ser. I, 6 1/4s, 4/15/17 Baa 555,844
1,000,000 Ser. F, 5 7/8s, 8/1/24 Baa 1,023,750
1,155,000 Ser. F, 5 3/4s, 2/1/19 Baa 1,166,550
2,000,000 NY City, G.O. IFB, AMBAC, 8.09s, 9/1/11 Aaa 2,277,500
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
(American Airlines, Inc.)
1,400,000 8s, 7/1/20 Baa 1,473,500
1,525,000 6.9s, 8/1/24 Baa 1,690,844
1,300,000 NY State Dorm. Auth. IFB (Cornell U.), 10.898s,
7/1/30 (acquired 1/6/93 cost $1,533,675)
[DBL. DAGGER] Aa 1,548,625
NY State Dorm. Auth. Rev. Bonds
1,500,000 (City U.), Ser. C, 8 1/8s, 7/1/08 Baa 1,570,545
1,500,000 (State U. Edl. Fac.), Ser. A, 7 1/2s, 5/15/13 A 1,856,250
2,000,000 (Cornell U.), Ser. A, 7 3/8s, 7/1/20 Aa 2,187,500
2,000,000 (Mental Hlth. Svcs.), Ser. A, 5 3/4s, 2/15/27 Baa 2,027,500
1,190,000 (City U. Syst.), Ser. 1, 5 1/4s, 7/1/17 Baa 1,151,325
1,000,000 NY State Energy Res. & Dev. Auth. Poll. Control
Rev. Bonds (Niagara Mohawk Pwr. Corp.),
Ser. A, FGIC, 7.2s, 7/1/29 Aaa 1,151,250
2,000,000 NY State Energy Res. & Dev. Auth. Rev. Bonds
(Cons. Edison Co.), Ser. A, 7 1/2s, 1/1/26 A 2,145,000
1,600,000 NY State Env. Fac. Corp. Poll. Control Rev. Bonds
(State Wtr. Revolving Fund), Ser. A, 7 1/2s,
6/15/12 Aa 1,754,000
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
1,730,000 (Hosp. & Nursing Home), Ser. B, FHA Insd.,
8s, 2/15/28 AAA 1,816,258
360,000 (Mental Hlth.), Ser. D, 7.4s, 2/15/18 Baa 399,600
940,000 (Mental Hlth.), Ser. D, 7.4s, Prerefunded, 2/15/18 BBB+/P 1,069,250
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
1,800,000 (Hosp. & Nursing Home Insd. Mtge.),
Ser. C, 6.65s, 8/15/32 Aa 1,930,500
1,800,000 (Hosp. & Nursing Home Insd. Mtge.),
Ser. D, FHA Insd., 6.6s, 2/15/31 AAA 1,930,500
1,800,000 (Hosp. & Nursing Home Insd. Mtge.),
Ser. C, FHA Insd., 6 3/8s, 8/15/29 Aaa 1,910,250
1,800,000 NY State Mtge. Agcy. Rev. Bonds
(Homeownership Dev. Program),
Ser. BB-2, 7.95s, 10/1/15 Aaa 1,849,824
2,075,000 NY State Urban Dev. Corp. Rev. Bonds
(State Fac.), 7 1/2s, 4/1/20 Aaa 2,331,781
1,000,000 Onondaga Cnty., Indl. Dev. Agcy. Rev. Bonds
(Bristol-Meyers Squibb Co.), 5 3/4s, 3/1/24 Aaa 1,065,000
1,400,000 Port Auth. NY & NJ Cons. IFB, 9.204s, 8/1/26
(acquired 7/19/93 cost $1,687,700) [DBL. DAGGER] Aa 1,624,000
1,500,000 Port Auth. NY & NJ Cons. Rev. Bonds,
Ser. 93rd, 6 1/8s, 6/1/94 Aa 1,681,875
--------------
44,768,953
Puerto Rico (11.4%)
- ------------------------------------------------------------------------------------------------
1,200,000 PR Cmnwlth. Govt. Dev. Bank VRDN 3.35s,
11/30/97 VMIG1 1,200,000
1,500,000 PR Elec. Pwr. Auth. IFB, FSA, 8.208s, 7/1/23 Aaa 1,642,500
1,129,388 PR Hsg. Fin. Corp. Rev. Bonds (Bayamon Hsg. Dev.),
FHA Insd., 7 1/2s, 7/1/21 BBB+/P 1,324,208
1,365,000 PR Pub. Bldg. Auth. Gtd. Ed. & Hlth. Fac. Rev. Bonds,
Ser. L, 6 7/8s, 7/1/21 Aaa 1,537,331
--------------
5,704,039
- ------------------------------------------------------------------------------------------------
Total Investments (cost $49,834,364) *** $50,472,992
- ------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $49,917,043.
** The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings
available at October 31, 1997 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, 1997 Securities rated by
Putnam are indicated by "/P" and are not publicly rated.
*** The aggregate identified cost on a tax basis is $49,834,364, resulting in gross unrealized
appreciation and depreciation of $3,132,190 and $2,493,562, respectively, or net unrealized
appreciation of $638,628.
[DBL. DAGGER] Restricted, excluding 144A securities, as to public resale. The total market value of
restricted securities held at October 31, 1997 was $3,172,625 or 6.4% of net assets.
The rates shown on VRDN and IFBs, which are securities paying interest rates that vary inversely
to changes in the market interest rates, are the current interest rates at October 31, 1997.
The fund had the following industry group concentrations greater than 10% at October 31, 1997
(as a percentage of net assets):
Healthcare 21.2%
Education 20.7
Transportation 15.1
The fund had the following insurance concentration greater than 10% at October 31, 1997 (as a
percentage of net assets):
FHA Insd. 14.0%
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
October 31, 1997 (Unaudited)
<S> <C>
Assets
- ------------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $49,834,364) (Note 1) $50,472,992
- ------------------------------------------------------------------------------------------------
Cash 120,155
- ------------------------------------------------------------------------------------------------
Interest receivable 795,831
- ------------------------------------------------------------------------------------------------
Unamortized organization expenses (Note 1) 209
- ------------------------------------------------------------------------------------------------
Total assets 51,389,187
Liabilities
- ------------------------------------------------------------------------------------------------
Distributions payable to shareholders 192,159
- ------------------------------------------------------------------------------------------------
Payable for securities purchased 1,139,630
- ------------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 89,563
- ------------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 4,122
- ------------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 5,860
- ------------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 358
- ------------------------------------------------------------------------------------------------
Other accrued expenses 40,452
- ------------------------------------------------------------------------------------------------
Total liabilities 1,472,144
- ------------------------------------------------------------------------------------------------
Net assets $49,917,043
Represented by
- ------------------------------------------------------------------------------------------------
Series A remarketed preferred shares (200 shares issued and
outstanding at $50,000 per share) (Note 4) $10,000,000
- ------------------------------------------------------------------------------------------------
Paid-in capital -- common shares (unlimited shares authorized) (Note 1) 39,508,979
- ------------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 88,983
- ------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (Note 1) (319,547)
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 638,628
- ------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $49,917,043
Computation of net asset value
- ------------------------------------------------------------------------------------------------
Series A remarketed preferred shares $10,000,000
- ------------------------------------------------------------------------------------------------
Cumulative undeclared dividends on remarketed preferred shares 7,233
- ------------------------------------------------------------------------------------------------
Net assets allocated to remarketed preferred shares --
liquidation preference $10,007,233
- ------------------------------------------------------------------------------------------------
Net assets available to common shares $39,909,810
- ------------------------------------------------------------------------------------------------
Net asset value per common share
($39,909,810 divided by 2,847,092 shares) $14.02
- ------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended October 31, 1997 (Unaudited)
<S> <C>
Tax exempt interest income: $1,597,242
- ------------------------------------------------------------------------------------------------
Expenses:
Compensation of Manager (Note 2) 176,717
- ------------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 25,274
- ------------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 4,454
- ------------------------------------------------------------------------------------------------
Administrative services (Note 2) 2,148
- ------------------------------------------------------------------------------------------------
Amortization of organization expenses (Note I) 1,143
- ------------------------------------------------------------------------------------------------
Reports to shareholders 7,022
- ------------------------------------------------------------------------------------------------
Registration fees 75
- ------------------------------------------------------------------------------------------------
Auditing 26,206
- ------------------------------------------------------------------------------------------------
Legal 6,899
- ------------------------------------------------------------------------------------------------
Postage 4,863
- ------------------------------------------------------------------------------------------------
Exchange listing fees 2,000
- ------------------------------------------------------------------------------------------------
Preferred share remarketing agent fees 8,424
- ------------------------------------------------------------------------------------------------
Other 1,463
- ------------------------------------------------------------------------------------------------
Total expenses 266,688
- ------------------------------------------------------------------------------------------------
Expense reduction (Note 2) (9,364)
- ------------------------------------------------------------------------------------------------
Net expenses 257,324
- ------------------------------------------------------------------------------------------------
Net investment income 1,339,918
- ------------------------------------------------------------------------------------------------
Net realized gain on investments (Notes 1 and 3) 1,024,297
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 465,387
- ------------------------------------------------------------------------------------------------
Net gain on investments 1,489,684
- ------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $2,829,602
- ------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Six months ended Year ended
October 31 April 30
1997* 1996
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
- ---------------------------------------------------------------------------------------------
Operations:
- ---------------------------------------------------------------------------------------------
Net investment income $1,339,918 $2,691,983
- ---------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 1,024,297 (372,632)
- ---------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 465,387 171,843
- ---------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 2,829,602 2,491,194
- ---------------------------------------------------------------------------------------------
Distributions to remarketed preferred shareholders:
- ---------------------------------------------------------------------------------------------
From net investment income (193,313) (334,279)
- ---------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations
applicable to common shareholders
(excluding cumulative undeclared dividends on
remarketed preferred shares of $7,233
and $20,245 respectively) 2,636,289 2,156,915
- ---------------------------------------------------------------------------------------------
Distributions to common shareholders:
- ---------------------------------------------------------------------------------------------
From net investment income (1,152,975) (2,305,855)
- ---------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,483,314 (148,940)
Net assets
- ---------------------------------------------------------------------------------------------
Beginning of period 48,433,729 48,582,669
- ---------------------------------------------------------------------------------------------
End of period (including undistributed net investment
income of $88,983 and $95,353, respectively) $49,917,043 $48,433,729
- ---------------------------------------------------------------------------------------------
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
- ---------------------------------------------------------------------------------------------
*Unaudited
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------------------------------
Six months
ended For the period
Per-share October 31 Nov. 27, 1992+
operating performance (Unaudited) Year ended April 30 to April 30
- --------------------------------------------------------------------------------------------------------
1997 1997 1996 1995 1994 1993
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (common shares) $13.49 $13.54 $13.50 $13.86 $14.57 $13.99(d)
- --------------------------------------------------------------------------------------------------------
Investment operations
- --------------------------------------------------------------------------------------------------------
Net investment income .47 .95 .98 1.06 1.05 .40(e)
- --------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .53 (.07) .07 (.26) (.53) .64
- --------------------------------------------------------------------------------------------------------
Total from investment operations 1.00 .88 1.05 .80 .52 1.04
- --------------------------------------------------------------------------------------------------------
Less distributions from:
- --------------------------------------------------------------------------------------------------------
Net investment income:
- --------------------------------------------------------------------------------------------------------
To preferred shareholders (.06) (.12) (.13) (.13) (.13) (.03)(f)
- --------------------------------------------------------------------------------------------------------
To common shareholders (.41) (.81) (.88) (.94) (.93) (.31)
- --------------------------------------------------------------------------------------------------------
Net realized gain on investments:
- --------------------------------------------------------------------------------------------------------
To preferred shareholders -- -- -- (.01) (.02) --
- --------------------------------------------------------------------------------------------------------
To common shareholders -- -- -- (.08) (.15) --
- --------------------------------------------------------------------------------------------------------
Total distributions (.47) (.93) (1.01) (1.16) (1.23) (.34)
- --------------------------------------------------------------------------------------------------------
Preferred share offering costs -- -- -- -- -- (.12)
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period
(common shares) $14.02 $13.49 $13.54 $13.50 $13.86 $14.57
- --------------------------------------------------------------------------------------------------------
Market value, end of period
(common shares $13.625 $12.875 $13.000 $13.625 $13.500 $15.000
- --------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- --------------------------------------------------------------------------------------------------------
Total investment return at market
value (common shares) (%)(a) 8.94* 5.34 1.78 9.09 (3.25) 2.09*
- --------------------------------------------------------------------------------------------------------
Net assets, end of period
(total fund) (in thousands) $49,917 $48,434 $48,583 $48,443 $49,480 $51,491
- --------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b)(c) .67* 1.44 1.34 1.35 1.23 .35*(e)
- --------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%)(b) 2.93* 6.10 6.19 6.87 6.23 2.60*(e)
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 17.39* 49.71 84.87 8.55 15.18 32.27*
- --------------------------------------------------------------------------------------------------------
+ Commencement of operations.
* Not annualized.
(a) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
(b) Ratios reflect net assets available to common shares only; net investment income ratio also reflects
reduction for distributions to preferred shareholders.
(c) The ratio of expenses to average net assets for the year ended April 30, 1996 and thereafter, includes
amounts paid through expense offset arrangements. Prior period ratios exclude these amounts. (Note 2).
(d) Represents initial net asset value of $14.10 less offering expenses of approximately $0.11.
(e) 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.
(f) Preferred shares were issued on February 18, 1993.
</TABLE>
Notes to financial statements
October 31, 1997 (Unaudited)
Note 1
Significant accounting policies
Putnam New York Investment Grade Municipal Trust (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 a 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 Putnam
Investment Management, Inc., ("Putnam Management') the fund's Manager
a wholly-owned subsidiary of Putnam Investments, Inc., 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 preparation of financial statements is in conformity
with generally accepted accounting principles and requires management
to make estimates and assumptions that affect the reported amounts of
assets and liabilities. Actual results could differ from those
estimates.
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 Putnam Management 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) 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, as amended.
Therefore, no provision has been made for federal taxes on income,
capital gains or unrealized appreciation on securities held nor for
excise tax on income and capital gains.
At April 30, 1997, the fund had a capital loss carryover of
approximately $1,331,000 available to offset future capital gains, if
any. The amount of the carryover and the expiration dates are:
Loss Carryover Expiration
- ------------------ ----------------
$ 21,000 April 30, 2003
818,000 April 30, 2004
492,000 April 30, 2005
D) 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 28 day period. The
applicable dividend rate for the remarketed preferred shares on
October 31, 1996 was 3.30%. 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. Reclassifications are made to the fund's capital accounts
to reflect income and gains available for distribution (or available
capital loss carryovers) under income tax regulations.
E) Determination of net asset value Net asset value of the common
shares is determined by dividing the value of all assets of the fund,
less all liabilities and the liquidation preference of any
outstanding remarketed preferred shares, by the total number of
common shares outstanding.
F) Amortization of bond premium and accretion of bond discount Any
premium resulting from the purchase of securities in excess of
maturity value is amortized on a yield-to-maturity basis. The premium
in excess of the call price, if any, is amortized to the call date;
thereafter, the remaining excess premium is amortized to maturity.
Discounts on original issue discount bonds are accreted according to
the effective yield method.
G) Unamortized organization expenses Expenses incurred by the fund in
connection with its organization, its registration with the
Securities and Exchange Commission and with various states and the
initial public offering of its shares were $11,494. These expenses
are being amortized on a straight-line basis over a five-year period.
Note 2
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. Such fee is based on the following annual rates: 0.70%
of the first $500 million of average net assets, 0.60% of the next
$500 million, 0.55% of the next $500 million, and 0.50% of any excess
over $1.5 billion.
If dividends payable on remarketed preferred shares during any
dividend payment period plus any expenses attributable to remarketed
preferred shares for that 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).
The fund reimburses Putnam Management an allocated amount 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.
Custodial functions for the fund's assets are provided by Putnam
Fiduciary Trust Company (PFTC), a wholly-owned subsidiary of Putnam
Investments, Inc. Investor servicing agent functions are provided by
Putnam Investor Services, a division of PFTC.
For the six months ended October 31, 1997, fund expenses were reduced
by $9,364 under expense offset arrangements with PFTC and brokerage
service arrangements. Investor servicing and custodian fees reported
in the Statement of operations exclude these credits. The fund could
have invested a portion of the assets utilized in connection with the
expense offset arrangements in an income producing asset if it had
not entered into such arrangements.
Trustees of the fund receive an annual Trustees fee of which $433 has
been allocated to the fund and an additional fee for each Trustee's
meeting attended. Trustees who are not interested persons of Putnam
Management and who serve on committees of the Trustees receive
additional fees for attendance at certain committee meetings.
The fund has adopted a Trustee Fee Deferral Plan (the "Deferral
Plan") which allows the Trustees to defer the receipt of all or a
portion of Trustees Fees payable on or after July 1, 1995. The
deferred fees remain in the fund and are invested in certain Putnam
funds until distribution in accordance with the Deferral Plan.
The fund has adopted an unfunded noncontributory defined benefit
pension plan (the "Pension Plan") covering all Trustees of the fund
who have served as Trustee for at least five years. Benefits under
the Pension Plan are equal to 50% of the Trustee's average total
retainer and meeting fees for the three years preceding retirement.
Pension expense for the fund is included in Compensation of trustees
in the Statement of operations. Accrued pension liability is included
in Payable for compensation of Trustees in the Statement of assets
and liabilities.
Note 3
Purchase and sales of securities
During the six months ended October 31, 1997, purchases and sales of
investment securities other than short-term investments aggregated
$8,537,405 and $8,413,073, respectively. There were no purchases and
sales of U.S. government obligations. In determining the net gain or
loss on securities sold, the cost of securities has been determined
on the identified cost basis.
Note 4
Remarketed preferred shares
The Series A shares are redeemable at the option of the fund on any
dividend payment 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.
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. 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 equivalent to the applicable
dividend rate for the period.
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
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, 1997, no such restrictions have been
placed on the fund.
Results of October 9, 1997 shareholder meeting
(Unaudited)
A meeting of shareholders of the fund was held on October 9, 1997. At
the meeting, each of the nominees for Trustees was elected, as
follows:
Common Shares Preferred Shares
Votes Votes
Votes for withheld Votes for withheld
Jameson Adkins Baxter 2,647,531 28,948 190 0
Hans H. Estin 2,646,531 29,948 190 0
R.J. Jackson 2,647,531 28,948 190 0
Elizabeth T. Kennan 2,647,531 28,948 190 0
Lawrence J. Lasser 2,647,531 28,948 190 0
Donald S. Perkins 2,646,306 30,173 190 0
William F. Pounds 2,646,306 30,173 190 0
George Putnam 2,647,531 28,948 190 0
George Putnam, III 2,646,306 30,173 190 0
A.J.C. Smith 2,647,531 28,948 190 0
W. Nicholas Thorndike 2,642,451 34,028 190 0
A proposal to ratify the selection of Price Waterhouse L.L.P. as
auditors for the fund was approved as follows:
Common Shares -- 2,628,125 votes for, and 8,422 votes against, with
39,932 abstentions and non-broker votes.
Preferred Shares -- 190 votes for, and 0 votes against, with 0
abstentions and non-broker votes.
All tabulations are rounded to nearest whole number.
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
Ronald J. Jackson
Elizabeth T. Kennan
Lawrence J. Lasser
Robert E. Patterson
Donald S. Perkins
George Putnam, III
A.J.C. Smith
W. Thomas Stephens
W. Nicholas Thorndike
OFFICERS
George Putnam
President
Charles E. Porter
Executive Vice President
Patricia C. Flaherty
Senior Vice President
John D. Hughes
Senior Vice President and Treasurer
Lawrence J. Lasser
Vice President
Gordon H. Silver
Vice President
Gary N. Coburn
Vice President
William J. Curtin
Vice President
Jerome J. Jacobs
Vice President
Howard K. Manning
Vice President and Fund Manager
William N. Shiebler
Vice President
John R. Verani
Vice President
Paul M. O'Neil
Vice President
Beverly Marcus
Clerk and Assistant Treasurer
Call 1-800-225-1581 weekdays from 9 a.m. to 5 p.m. Eastern Time for
up-to-date information about the fund's NAV.
[LOGO OMITTED]
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
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Putnam
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