Putnam
New York
Investment Grade
Municipal Trust
ANNUAL REPORT
April 30, 1997
[LOGO: BOSTON * LONDON * TOKYO]
Fund highlights
* "Much of Putnam New York Investment Grade Municipal Trust's success
can be attributed to the significant resources behind the fund -- including
our Economic and Interest Rate Committee and a group of analysts dedicated
to the New York municipal bond market -- that make management a team
process."
-- Howard K. Manning, Fund Manager
* "Based on tax-equivalent yields alone, muni funds easily outshine
most taxable-bond funds."
-- Morningstar Mutual Funds, March 1997
CONTENTS
4 Report from Putnam Management
8 Fund performance summary
12 Portfolio holdings
14 Financial statements
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
[copyright] Karsh, Ottawa
Dear Shareholder:
In few places is the power of suggestion more aptly demonstrated than the
securities markets. For months, the municipal bond markets have translated
conjecture over the prospect of an increase in short-term interest rates by
the Federal Reserve Board into volatility. Instead of settling down after the
Fed finally raised rates by a quarter point in late March, the markets
immediately began responding to the suggestion that the Fed was about to raise
rates again, if not in May, then at some point.
Uncertainty heightens the intensity of volatility, as we have seen throughout
Putnam New York Investment Grade Municipal Trust's fiscal year. Over the long
term, however, rational research and analysis, backed by expertise and
experience, play a larger role in investment success -- and thus generally
work to the advantage of those who maintain a long-term investment
perspective.
Since Fund Manager Howard Manning believes the current volatility may continue
for a while, this seems an appropriate time to counsel patience. In the
following report, Howard explains how he has been dealing with the current
market environment for New York municipal bonds and what he sees in prospect
for the months ahead.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
June 18, 1997
Report from the Fund Manager
Howard K. Manning
The anticipation and eventual reality of rising interest rates brought an
additional challenge to the prevailing investment climate during Putnam New
York Investment Grade Municipal Trust's 1997 fiscal year. However, your fund
successfully weathered the challenging environment, posting positive returns
at both net asset value and market price for the 12 months ended April 30,
1997.
In keeping with the fund's primary objective of providing a high level of
income free from federal, New York state, and New York City income taxes, we
have been able to maintain the monthly distributions at an attractive level.
For investors who pay the maximum 46.08% combined federal, state, and city tax
rate, a fully taxable investment would have had to provide a current yield of
11.13% to equal the fund's 6.00% dividend rate at net asset value at period's
end. For a look at more detailed fund performance figures, please refer to the
performance summary that begins on page 8.
* NEW YORK BONDS UNDER PRESSURE FROM RISING NATIONAL RATES
Despite benign inflation numbers in the early months of calendar 1997, the
second half of the fund's fiscal year began amid continued investor concerns
over increasing economic growth. After months of speculation, the Federal
Reserve Board acted in March to cool the economy's momentum with its first
interest-rate increase in more than two years. Although the increase of 25
basis points, or one quarter of one percentage point, in the federal funds
rate -- the rate banks charge each other for overnight loans -- surprised few,
it nevertheless put downward pressure on bond prices in general.
The market for New York municipal bonds generally followed this and other,
broader fixed-income trends throughout the fiscal year. In this environment,
we relied on careful credit selection to secure yield opportunities while
reducing the portfolio's sensitivity to rising interest rates. One means of
doing so involved purchasing premium bonds, those selling at prices above par
value, with high coupons. Such holdings help maintain the fund's income stream
while generally experiencing less price volatility in response to changing
interest rates than do discount bonds.
Another structural strategy we employed emphasized bonds with stated
maturities of 15 to 20 years. These bonds offer attractive yield levels now,
combined with the potential to increase in value as they approach maturity and
shift to the shorter end of the yield curve -- a phenomenon known as curve (or
coupon) roll. Capitalizing on this appreciation potential -- which operates
independently of interest-rate changes -- can enable us to build the overall
value of the portfolio over time.
* FUND PERFORMANCE HELPED BY LOCAL TRENDS
Closer to home, the timing of New York state and New York City fiscal years,
ending March 31 and June 30, respectively, offered the fund additional
opportunities. Over the past three years, we have seen seasonal yield swings
in New York municipal bonds that follow the state and city budget negotiation
processes. In this cycle, yields become increasingly attractive as budgets
move from impasse to resolution and open the way for an increased supply of
new bond issues. As new issuance subsides, prices generally recover with
yields moving correspondingly lower.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Education 18.4%
Health Care 18.4%
Transportation 14.9%
Utilities 9.9%
Housing 8.4%
Footnote reads:
*Based on net assets as of 4/30/97. Holdings will vary over time.
Because the fund's fiscal year would draw to a close in the latter part of
this cycle, we reduced portfolio holdings of state-appropriated bonds and
other issues whose yields had become less attractive on a relative basis. In
their place, we emphasized investments in essential-service revenue bonds,
which derive their income from user fees and are therefore relatively immune
to the fluctuations of the budget process.
Several factors combined during the period to enhance investors' perceptions
of New York City's credit situation. Continued confidence in Mayor Giuliani's
leadership, an$800 million budget surplus, and the advent of the Transitional
Finance Authority as the city reached its debt cap all helped boost the
performance of city bonds. The portfolio's position in New York City issues
made a positive contribution to fund performance during the period. The city's
improving credit situation may benefit the fund further if any of the major
credit-rating agencies should confirm investor perceptions with a quality
upgrade.
The last primary driver of your fund's performance is financial leverage. To
enhance income stream, the fund issues preferred shares that pay dividends at
prevailing short-term rates. These shares are sold 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 holders
of preferred shares and the income earned by the fund augments the flow of
income to holders of common shares.
* FUND MAINTAINS DEFENSIVE POSTURE WHILE POISED FOR OPPORTUNITIES
As the fund enters fiscal 1998, the portfolio remains defensively positioned
against changing interest rates. Average portfolio quality remains high. We
consider bonds rated Aaa and Aa to offer better relative value than their
lower-rated counterparts at present given the current compression of yields
along the quality curve. That is, lower-rated bonds currently do not offer
much in the way of additional yield to reward investors for taking on an added
level of investment risk.
[GRAPHIC OMITTED: pie chart CREDIT QUALITY OVERVIEW]
CREDIT QUALITY OVERVIEW*
Aaa 37.1%
Baa 29.3%
Aa 29.1%
A 4.5%
Footnote reads:
* As a percentage of market value as of 4/30/97. 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.
Over the longer term, we believe the state and city budget processes, which
continue to spur seasonal market changes, are poised to take advantage of
any resulting investment opportunities. Should the broader fixed-income market
begin to show signs of a rally, we plan to seek appropriate new investment
opportunities by reducing holdings in the prerefunded bonds we currently favor.
Prerefunding occurs when an issuer floats a bond to raise capital to pay off,
or retire, an older bond. The proceeds from the newer issue are held in
top-quality, short-term instruments until the old debt can be paid off,
usually at its first call date. The typical effect of a prerefunding is the
same as that of an actual credit upgrade -- price appreciation. In the
meantime, these bonds add significantly to the fund's income stream. As
always, we will continue to balance the fund's primary goal of providing a
high level of tax-free income with concern for the preservation of capital.
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 4/30/97, 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 4/30/97
Lehman Bros.
Municipal Consumer
Market Bond Price
NAV price Index Index
- ------------------------------------------------------------------------------
1 year 5.97% 5.34% 6.66% 2.50%
- ------------------------------------------------------------------------------
Life (11/27/92) 29.77 15.51 32.79 12.82
Annual average 6.07 3.32 6.64 2.77
- ------------------------------------------------------------------------------
TOTAL RETURN FOR PERIODS ENDED 3/31/97
(most recent calendar quarter)
Market
NAV price
- ------------------------------------------------------------------------------
1 year 4.73% 3.35%
- ------------------------------------------------------------------------------
Life (11/27/92) 28.72 14.92
Annual average 5.99 3.26
- ------------------------------------------------------------------------------
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
12 months ended 4/30/97
Distributions (common shares)
- ------------------------------------------------------------------------------
Number 12
- ------------------------------------------------------------------------------
Income $0.810
- ------------------------------------------------------------------------------
Capital gains1 --
- ------------------------------------------------------------------------------
Total $0.810
- ------------------------------------------------------------------------------
Preferred shares,
Series A (200 shares)
- ------------------------------------------------------------------------------
Income $1,671.40
- ------------------------------------------------------------------------------
Total $1,674.40
- ------------------------------------------------------------------------------
Share value (common shares): NAV Market price
- ------------------------------------------------------------------------------
4/30/96 $13.54 $13.000
- ------------------------------------------------------------------------------
4/30/97 13.49 12.875
- ------------------------------------------------------------------------------
Current return (common shares): NAV Market price
- ------------------------------------------------------------------------------
End of period
- ------------------------------------------------------------------------------
Current dividend rate2 6.00% 6.29%
- ------------------------------------------------------------------------------
Taxable equivalent3 11.13 11.67
- ------------------------------------------------------------------------------
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 market price at end of period.
3Assumes maximum 46.08% combined federal, state and city tax rate.
Results for investors subject to lower tax rates would not be as
advantageous.
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 American
Stock Exchange.
COMPARATIVE BENCHMARKS
Consumer Price Index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
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, taxes, or other costs, may include bonds different from those
in the fund, and may pose different risks than the fund. The index assumes
reinvestment of all distributions and interest payments. It is not
possible to invest directly in an index.
Report of independent accountants
To the Trustees and Shareholders of
Putnam New York Investment Grade Municipal Trust
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments owned (except for bond ratings), and
the related statements of operations and of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of Putnam New York Investment Grade Municipal Trust (the "fund") at
April 30, 1997, and the results of its operations, the changes in its net
assets, and the financial highlights for the periods indicated, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of investments owned at April 30, 1997
by correspondence with the custodian, provide a reasonable basis for the
opinion expressed above.
Price Waterhouse LLP
Boston, Massachusetts
June 10, 1997
<TABLE>
<CAPTION>
Portfolio of investments owned
April 30, 1997
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
MUNICIPAL BONDS AND NOTES (98.5%) *
PRINCIPAL AMOUNT RATINGS** VALUE
New York (89.6%)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 925,000 Ithaca, Hsg. Corp. Mtge. Rev. Bonds
(Eddygate Park Apts.), 9s, 6/1/06 BBB/P $ 963,831
1,000,000 Metropolitan Trans. Auth. Svcs. Contract
Fac. Rev. Bonds (Trans. Fac.), Ser. O, 5 3/4s, 7/1/13 Baa 986,250
NY City, G.O. Bonds
1,385,000 Ser. A, 8s, 8/15/19 AAA/P 1,571,975
1,000,000 Ser. F, 5 7/8s, 8/1/24 Baa 950,000
2,000,000 NY City, G.O. Bonds IFB, AMBAC, 7.97s, 9/1/11 AAA 2,117,500
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
1,400,000 (American Airlines, Inc.), 8s, 7/1/20 Baa 1,480,500
1,525,000 (American Airlines, Inc.), 6.9s, 8/1/24 Baa 1,643,188
1,500,000 NY City, Muni. Assistance Corp. Rev. Bonds,
Ser. I, 6 1/4s, 7/1/05 AA 1,612,500
1,300,000 NY State Dorm. Auth. IFB (Cornell U.), 10.467s,
7/1/30(aquired 1/6/93 cost $1,533,675) [DBL. DAGGER] AA 1,516,125
NY State Dorm. Auth. Rev. Bonds
1,500,000 (City U.), Ser. C, 8 1/8s, 7/1/08 Baa 1,586,250
1,500,000 (State U. Edl. Fac.), Ser. A, 7 1/2s, 5/15/13 Baa 1,766,250
2,000,000 (Cornell U.), Ser. A, 7 3/8s, 7/1/20 AA 2,172,500
2,000,000 (Mental Hlth. Svcs.), Ser. A, 5 3/4s, 2/15/27 Baa 1,887,500
2,000,000 NY State Energy Res. & Dev. Auth. Rev. Bonds
(Cons. Edison Co.), Ser. A, 7 1/2s, 1/1/26 A 2,140,000
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 1,125,000
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 1,746,000
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
1,730,000 (Hosp. & Nursing Home), Ser. B, FHA Insd., 8s,
2/15/28 AAA 1,835,963
360,000 (Mental Hlth.), Ser. D, 7.4s, 2/15/18 Baa 395,550
940,000 (Mental Hlth.), Ser. D, Prerefunded, 7.4s, 2/15/18 BBB 1,053,975
1,800,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C,
6.65s, 8/15/32 AA 1,876,500
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
1,800,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. D,
FHA Insd., 6.6s, 2/15/31 AAA 1,874,250
1,800,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C,
FHA Insd., 6 3/8s, 8/15/29 AAA 1,854,000
1,800,000 NY State Mtge. Agcy. Rev. Bonds (Homeownership
Dev. Program), Ser. BB-2, 7.95s, 10/1/15 AA 1,846,134
2,075,000 NY State Urban Dev. Corp. Rev. Bonds
(State Fac.), 7 1/2s, 4/1/20 AAA 2,311,031
2,000,000 Onondaga Cnty., Indl. Dev. Agcy. Rev. Bonds
(Bristol-Meyers Squibb Co.), 5 3/4s, 3/1/24 AAA 1,992,500
1,500,000 Port Auth. NY & NJ Cons. Rev. Bonds, Ser. 93rd,
6 1/8s, 6/1/94 AA 1,548,750
1,400,000 Port Auth. NY & NJ Cons. IFB, 9.303s, 8/1/26
(acquired 7/19/93 cost $1,687,700) [DBL. DAGGER] AA 1,547,000
-----------
43,401,022
Puerto Rico (8.9%)
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 PR Elec. Pwr. Auth. IFB, FSA, 8.095s, 7/1/23 AAA 1,513,125
1,146,710 PR Hsg. Fin. Corp. Rev. Bonds
(Bayamon Hsg. Dev.), FHA Insd., 7 1/2s, 7/1/21 BBB 1,268,548
1,365,000 PR Pub. Bldg. Auth. Gtd. Ed. & Hlth. Fac. Rev. Bonds,
Ser. L, 6 7/8s, 7/1/21 AAA 1,511,738
-----------
4,293,411
- --------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $47,521,192) *** $47,694,433
- --------------------------------------------------------------------------------------------------------------------------
* Percentages indicated are based on net assets of $48,433,729.
** The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings
available at April 30, 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 April 30, 1997. Securities rated by Putnam are indicated by "/P" and are not
publicly rated. Ratings are not covered by the Report of independent accountants.
*** The aggregate identified cost on a tax basis is $47,521,192, resulting in gross unrealized
appreciation and depreciation of $2,685,001 and $2,511,760, respectively, or net unrealized
appreciation of $173,241.
[DBL. DAGGER] Restricted, excluding 144A securities, as to public resale. The total market value of
restricted securities held at April 30, 1997 was $3,063,125 or 6.3% of net assets.
The rate shown on IFBs, which are securities paying interest rates that vary inversely to changes in the
market interest rates, are the current interest rates at April 30, 1997.
The fund had the following industry group concentrations greater than 10% at April 30, 1997
(as a percentage of net assets):
Education 18.4%
Healthcare 18.4
Transportation 14.9
The fund had the following insurance concentration greater than 10% at April 30, 1997 (as a percentage
of net assets):
FHA Insd. 14.1%
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
April 30, 1997
<S> <C>
Assets
- ---------------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $47,521,192) (Note 1) $ 47,694,433
- ---------------------------------------------------------------------------------------------------
Cash 280,391
- ---------------------------------------------------------------------------------------------------
Interest receivable 785,942
- ---------------------------------------------------------------------------------------------------
Unamortized organization expenses (Note 1) 1,352
- ---------------------------------------------------------------------------------------------------
Total assets 48,762,118
Liabilities
- ---------------------------------------------------------------------------------------------------
Distributions payable to shareholders 192,161
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 79,388
- ---------------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 4,439
- ---------------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 386
- ---------------------------------------------------------------------------------------------------
Other accrued expenses 52,015
- ---------------------------------------------------------------------------------------------------
Total liabilities 328,389
- ---------------------------------------------------------------------------------------------------
Net assets $ 48,433,729
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) 95,353
- ---------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (Note 1) (1,343,844)
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 173,241
- ---------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $ 48,433,729
Net assets available to:
- ---------------------------------------------------------------------------------------------------
Series A remarketed preferred shares 10,000,000
- ---------------------------------------------------------------------------------------------------
Cumulative undeclared dividends on
remarketed preferred shares 20,245
- ---------------------------------------------------------------------------------------------------
Net assets allocated to remarketed preferred shares --
liquidation preference $ 10,020,245
- ---------------------------------------------------------------------------------------------------
Net assets available to common shares $ 38,413,484
- ---------------------------------------------------------------------------------------------------
Net asset value per common shares
($38,413,484 divided by 2,847,092 shares) $ 13.49
- ---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Year ended April 30, 1997
<S> <C>
Tax exempt interest income: 3,186,832
Expenses:
- --------------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) $ 340,290
- --------------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 45,692
- --------------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 12,341
- --------------------------------------------------------------------------------------------------
Administrative services (Note 2) 4,666
- --------------------------------------------------------------------------------------------------
Amortization of organization expenses (Note 1) 2,292
- --------------------------------------------------------------------------------------------------
Reports to shareholders 26,151
- --------------------------------------------------------------------------------------------------
Auditing 43,302
- --------------------------------------------------------------------------------------------------
Legal 8,312
- --------------------------------------------------------------------------------------------------
Postage 6,429
- --------------------------------------------------------------------------------------------------
Exchange listing fees 4,667
- --------------------------------------------------------------------------------------------------
Preferred share remarketing agent fees 43,836
- --------------------------------------------------------------------------------------------------
Other 17,804
- --------------------------------------------------------------------------------------------------
Total expenses 555,782
- --------------------------------------------------------------------------------------------------
Expense reduction (Note 2) (60,933)
- --------------------------------------------------------------------------------------------------
Net expenses 494,849
- --------------------------------------------------------------------------------------------------
Net investment income 2,691,983
- --------------------------------------------------------------------------------------------------
Net realized loss on investments (Notes 1 and 3) (419,006)
- --------------------------------------------------------------------------------------------------
Net realized gain on futures contracts (Note 1) 46,374
- --------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the year 171,843
- --------------------------------------------------------------------------------------------------
Net loss on investments (200,789)
- --------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $2,491,194
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of changes in net assets
Year ended April 30
1997 1996
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
- ----------------------------------------------------------------------------------------------------------------------
Operations:
- ----------------------------------------------------------------------------------------------------------------------
Net investment income $ 2,691,983 $ 2,809,568
- ----------------------------------------------------------------------------------------------------------------------
Net realized loss on investments (372,632) (670,420)
- ----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 171,843 875,627
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 2,491,194 3,014,775
- ----------------------------------------------------------------------------------------------------------------------
Distributions to remarketed preferred shareholders:
- ----------------------------------------------------------------------------------------------------------------------
From net investment income (334,279) (370,010)
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations
applicable to common shareholders
(excluding cumulative undeclared dividends on
remarketed preferred shares of $20,245
and $19,521 respectively) 2,156,915 2,644,765
- ----------------------------------------------------------------------------------------------------------------------
Distributions to common shareholders:
- ----------------------------------------------------------------------------------------------------------------------
From net investment income (2,305,855) (2,505,203)
- ----------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (148,940) 139,562
Net assets
- ----------------------------------------------------------------------------------------------------------------------
Beginning of year 48,582,669 48,443,107
- ----------------------------------------------------------------------------------------------------------------------
End of year (including undistributed net investment
income of $95,353 and $43,655, respectively) $48,433,729 $48,582,669
- ----------------------------------------------------------------------------------------------------------------------
Number of fund shares
- ----------------------------------------------------------------------------------------------------------------------
Common shares outstanding at beginning and end of year 2,847,092 2,847,092
- ----------------------------------------------------------------------------------------------------------------------
Remarketed preferred shares outstanding at beginning and
end of year 200 200
- ----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
- ------------------------------------------------------------------------------------------------------------------------------------
For the period
Per-share Nov. 27, 1992+
operating performance Year ended April 30 to April 30
- ------------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period
(common shares) $13.54 $13.50 $13.86 $14.57 $13.99 (d)
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income .95 .98 1.06 1.05 .40 (e)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (.07) .07 (.26) (.53) .64
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .88 1.05 .80 .52 1.04
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income:
- ------------------------------------------------------------------------------------------------------------------------------------
To preferred shareholders (.12) (.13) (.13) (.13) (.03) (f)
- ------------------------------------------------------------------------------------------------------------------------------------
To common shareholders (.81) (.88) (.94) (.93) (.31)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain
on investments:
- ------------------------------------------------------------------------------------------------------------------------------------
To preferred shareholders -- -- (.01) (.02) --
- ------------------------------------------------------------------------------------------------------------------------------------
To common shareholders -- -- (.08) (.15) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.93) (1.01) (1.16) (1.23) (.34)
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred share offering costs -- -- -- -- (.12)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period
(common shares) $13.49 $13.54 $13.50 $13.86 $14.57
- ------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period
(common shares) $12.875 $13.000 $13.625 $13.500 $15.000
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment return at market value
(common shares) (%)(a) 5.34 1.78 9.09 (3.25) 2.09*
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(total fund) (in thousands) $48,434 $48,583 $48,443 $49,480 $51,491
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b)(c) 1.44 1.34 1.35 1.23 .35* (e)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%)(b) 6.10 6.19 6.87 6.23 2.60* (e)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 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
April 30, 1997
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 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) Futures and options contracts The fund may use futures and options
contracts to hedge against changes in the values of securities the fund owns
or expects to purchase. The fund may also write options on securities it owns
or in which it may invest to increase its current returns.
The potential risk to the fund is that the change in value of futures and
options contracts may not correspond to the change in value of the hedged
instruments. In addition, losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparty to the contract is unable to perform.
Futures contracts are valued at the quoted daily settlement prices established
by the exchange on which they trade. Exchange traded options are valued at the
last sale price, or if no sales are reported, the last bid price for purchased
options and the last ask price for written options. Options traded
over-the-counter are valued using prices supplied by dealers.
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 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
$1,331,000 available to offset future capital gains, if any. The amount
of the carryover and the expiration dates are:
Loss Carryover Expiration
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$ 21,000 April 30, 2003
818,000 April 30, 2004
492,000 April 30, 2005
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 28 day period. The applicable dividend rate for the remarketed
preferred shares on April 30, 1997 was 3.70%. 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 and realized
gains and losses on certain futures contracts. 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. For the year ended April 30, 1997, the fund reclassified $151 to
decrease undistributed net investment income and $151 to increase
paid-in-capital. The calculation of net investment income per share in the
financial highlights table excludes these adjustments.
F) 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), less all liabilities (including accrued expenses) and the
liquidation preference of any outstanding remarketed preferred shares, by the
total number of common shares outstanding.
G) 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. Discounts on original issue discounts
bonds are accreted according to the effective yield method.
H) 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
weekly 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 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 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 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 year ended April 30, 1997, fund expenses were reduced by $60,933 under
expense offset arrangements with PFTC. 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 $450 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 "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 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 year ended April 30, 1997, purchases and sales of investment
securities other than short-term investments aggregated $28,589,424 and
$22,972,345, 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 remarketed preferred 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, 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 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 April
30, 1997, no such restrictions have been placed on the fund.
Federal tax information
(Unaudited)
The fund has designated 100% of dividends paid from net investment income during
the fiscal year as tax exempt for Federal income tax purposes.
The Form 1099 you receive in January 1998 will show the tax status of all
distributions paid to you account calendar 1997.
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
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
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. 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
Blake E. Anderson
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.
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PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
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Bulk Rate
U.S. Postage
PAID
Putnam
Investments
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33891-185 6/97
