Putnam
New York
Investment Grade
Municipal Trust
SEMIANNUAL REPORT ON PERFORMANCE AND OUTLOOK
10-31-99
[LOGO: BOSTON * LONDON * TOKYO]
From the Chairman
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
[copyright] Karsh, Ottawa
Dear Shareholder:
As some of the most sought-after bonds in the municipal market, New York
municipal securities, including those that make up Putnam New York
Investment Grade Municipal Trust's portfolio, remain in high demand.
However, the Federal Reserve Board's bias toward raising interest rates
and lingering questions about the strength of the economy unnerved
fixed-income investors for much of the six months ended October 31, 1999.
Bond prices fell sharply and yields rose during the period, as investors
grappled with fears of higher inflation. In October, however, some welcome
economic news suggested that the vigorous U.S. economy might actually be
cooling. Value-minded, tax-sensitive investors took advantage of the
attractive bond prices, and municipal bond prices strengthened a bit.
Thus, while performance for this semiannual period is somewhat
disappointing, your fund's manager, Richard Wyke, believes more rewarding
opportunities lie ahead.
Total return for 6 months ended 10/31/99
NAV Market price
- --------------------------------------------------------------------------
-5.02% -6.64%
- --------------------------------------------------------------------------
Past performance is no indication of future results. Performance
information for longer periods begins on page 7.
* HIGHER RATES MAY HAVE SILVER LINING
Although there are no guarantees in investing, if history tells us
anything about bond investing, it is this: buying a bond fund after a bad
year is a smart thing to do. The bond market has endured its toughest year
since 1994, making it the second-worst year on record, as a result of two
moves by the Fed to raise interest rates and inflation fears. Today we
believe investors are faced with considerable opportunities -- just as
there were opportunities following the bond bear markets of 1989 and 1994.
[GRAPHIC OMITTED: pie chart CREDIT QUALITY OVERVIEW]
CREDIT QUALITY OVERVIEW*
A -- 26.0%
Baa/BBB -- 20.6%
Aaa/AAA -- 34.9%
Aa/AA -- 18.5%
Footnote reads:
*As a percentage of market value as of 10/31/99. A bond rated Baa/BBB or
higher is considered investment grade. All ratings reflect Moody's and
Standard & Poor's descriptions unless noted otherwise; percentages may
include unrated bonds considered by Putnam Management to be of comparable
quality. Ratings will vary over time.
The rise in interest rates produced one particularly desirable outcome.
Yields across the municipal bond universe crossed into the 6% territory.
The situation is creating attractive opportunities for Rick to lock in
additional income. Recently a 30-year AAA-rated municipal bond offered a
6% yield -- a superb level of tax-free income, registering almost 97% of
the yield on a 30-year taxable Treasury bond. With inflation still
remarkably low at 3% or less, the after-tax, after-inflation returns are
the highest they have been in years.
"Whether it's restructuring their asset allocation, putting available cash
to work after months of sideline-sitting, or just enhancing their already
hefty tax-free portfolios, many retail investors are buying municipals with
hurricane force."
- -- The Bond Buyer, September 23, 1999
Most of this attractive opportunity can be explained by the Y2K issue,
which has had a massive impact on all markets, except for Treasuries. Most
municipalities have accelerated their bond issues out of concern that Y2K
complications may affect the financial markets. We expect a supply void in
the fourth quarter as issuers dodge any potential complications with
settlement issues at year's end. If this occurs, it should support higher
bond prices.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Education 22.6%
Transportation 17.3%
Hospitals/
health care 15.3%
Utilities 15.0%
Housing 4.4%
Footnote reads:
*Based on net assets as of 10/31/99. Holdings will vary over time.
* STEEPENING YIELD CURVE BENEFITS LEVERAGING STRATEGY
Interest rates on long-term municipal bonds climbed approximately half a
percentage point during the semiannual period. Shorter-term rates rose
less dramatically, resulting in a steeper municipal bond yield curve. The
attractive spread between short- and long-term yields makes the fund's
leveraging strategy particularly productive.
With leveraging, the fund issues preferred shares that pay dividends at
prevailing short-term money market 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 rates paid to holders of preferred shares and the rates earned by the
fund augments the flow of income to holders of common shares. Thus the
greater the spread between longer- and shorter-term rates, the greater the
benefit to the common shareholders.
* SECTORS HELPED BY STRONG ECONOMY
While higher interest rates are negatively affecting bond prices at
present, Rick remains quite optimistic about prospects for your fund's
holdings over the longer term. The resiliency of the U.S. economy has been
one of the biggest contributors to the improving creditworthiness of the
underlying issuers. Three sectors, New York City general obligation,
airline, and utilities bonds, illustrate this point.
The rating agencies continue to view New York municipal debt extremely
favorably. The booming securities industry, which is largely credited with
sparking several years of prosperity, is helping the state's economy grow
at its fastest pace since the 1980s. In New York City, three years of
record operating surpluses have led to a reduced reliance on short-term
borrowing. The fund's pool of New York City general obligation bonds has
been a direct beneficiary and they have been experiencing repeated
upgrades by the rating agencies.
In the transportation sector, a booming economy helped the airline
industry post record years of profits in 1997 and 1998. Today airlines
remain quite attractive, but the recent surge in jet fuel prices, harsh
hurricane weather, and the potential for fare wars are likely to pinch
earnings over the near term. Rick remains optimistic about prospects for
the fund's holdings, including investments in bonds backed by revenues
generated by American Airlines, given the increased level of international
travel brought on by economic recovery in Asia and Latin America. In
addition, distribution costs are falling as commission payments to travel
agents decline and bookings through Web sites increase.
Deregulation continues to shape the utilities industry. Fund holdings are
focused on providers of electricity through proprietary transmission and
distribution systems rather than through the less stable generation of
electric power. Investments in Long Island Power Authority bonds are
performing better than analysts' expectations because of the strong
economy, effective management, and a commitment to debt reduction.
Another revenue bond backed by Consolidated Edison, which provides
electric service to New York City and surrounding communities, should
benefit from ConEd's pending acquisition of Northeast Utilities to expand
its market. The new acquisition is currently selling its
electricity-generating assets to focus exclusively on transmission and
distribution. Rick anticipates that Northeast Utilities'-backed bonds will
experience a credit upgrade as the utility moves away from its fully
integrated status.
* OUTLOOK CALLS FOR PATIENCE, NOT PANIC
Although the Fed did not raise interest rates in October, it did take
action in November, leading to expectations that further increases could
follow. However, these expectations have already been priced into the bond
market's behavior, clearing the way for better performance. There may be
some stumbling blocks ahead, but Rick believes that the major ones are
behind us. With this sentiment, he is now more inclined to take slightly
more risk in the portfolio, extending maturities as opportunities arise.
It has always been our belief that bear markets are not bad as long as
investors do not panic. Bear markets provide us with the opportunity to
add yield, find exceptional credits, and improve call protection --
strategies that can be rewarding for shareholders over time.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
December 15, 1999
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 10/31/99, there is no guarantee the fund will
continue to hold these securities in the future.
Performance summary
This section provides information about your fund's performance, which should
always be considered in light of its 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 10/31/99
Lehman Bros. Consumer
Market Municipal price
(common shares) NAV price Bond Index index
- -----------------------------------------------------------------------------
6 months -5.02% -6.64% -3.46% 1.20%
- -----------------------------------------------------------------------------
1 year -3.77 -8.87 -1.78 2.69
- -----------------------------------------------------------------------------
5 years 34.35 41.94 39.77 12.51
Annual average 6.08 7.26 6.93 2.39
- -----------------------------------------------------------------------------
Life of fund (11/27/92) 43.82 30.37 49.85 18.45
Annual average 5.39 3.91 6.02 2.48
- -----------------------------------------------------------------------------
TOTAL RETURN FOR PERIODS ENDED 9/30/99 (most recent calendar quarter)
Market
(common shares) NAV price
- -----------------------------------------------------------------------------
6 months 1.83% -3.70%
- -----------------------------------------------------------------------------
1 year -2.64 -7.23
- -----------------------------------------------------------------------------
5 years 33.55 37.80
Annual average 5.96 6.62
- -----------------------------------------------------------------------------
Life of fund (11/27/92) 45.83 30.96
Annual average 5.67 4.02
- -----------------------------------------------------------------------------
Past performance is no assurance of future results. More recent returns may be
more or less than those shown. 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 10/31/99
- ----------------------------------------------------------------------------
Distributions (common shares)
- ----------------------------------------------------------------------------
Number 6
- ----------------------------------------------------------------------------
Income $0.405
- ----------------------------------------------------------------------------
Capital gains1 --
- ----------------------------------------------------------------------------
Total $0.405
- ----------------------------------------------------------------------------
Preferred shares Series A (200 shares)
- ----------------------------------------------------------------------------
Income $801.65
- ----------------------------------------------------------------------------
Capital gains1 --
- ----------------------------------------------------------------------------
Total $801.65
- ----------------------------------------------------------------------------
Share value (common shares) NAV Market price
- ----------------------------------------------------------------------------
4/30/99 $14.03 $13.875
- ----------------------------------------------------------------------------
10/31/99 12.93 12.563
- ----------------------------------------------------------------------------
Current return (common shares)
- ----------------------------------------------------------------------------
Current dividend rate2 6.26% 6.45%
- ----------------------------------------------------------------------------
Taxable equivalent3 11.54 11.89
- ----------------------------------------------------------------------------
1 Capital 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.
2 Income portion of most recent distribution, annualized and divided by
NAV or market price at end of period.
3 Assumes maximum 45.77% 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 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. This index assumes reinvestment of all
distributions and interest payments and does not take into 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.
Consumer price index (CPI) is a commonly used measure of inflation; it
does not represent an investment return.
A guide to the financial statements
These sections of the report constitute the fund's financial
statements.
The fund's portfolio lists all the fund's investments and their values as
of the last day of the reporting period. Holdings are organized by asset
type and industry sector, country, or state to show areas of concentration
and diversification.
Statement of assets and liabilities shows how the fund's net assets and
share price are determined. All investment and noninvestment assets are
added together. Any unpaid expenses and other liabilities are subtracted
from this total. The result is divided by the number of shares to
determine the net asset value per share, which is calculated separately
for each class of shares. (For funds with preferred shares, the amount
subtracted from total assets includes the net assets allocated to
remarketed preferred shares.)
Statement of operations shows the fund's net investment gain or loss for
the reporting period. This is determined by adding up all the fund's
earnings -- from dividends and interest income -- and subtracting its
operating expenses. This statement also lists any net gain or loss the
fund realized on the sales of its holdings and -- for holdings that remain
in the portfolio -- any change in unrealized gains or losses over the
period.
Statement of changes in net assets shows how the fund's net assets were
affected by distributions to shareholders and by changes in the number of
the fund's shares. It lists distributions and their sources (net
investment income or realized capital gains) over the current reporting
period and the most recent fiscal year-end. The distributions listed here
may not match the sources listed in the Statement of operations because
the distributions are determined on a tax basis and may be paid in a
different period from the one in which they were earned.
Financial highlights provide an overview of the fund's investment results,
per-share distributions, expense ratios, net investment income ratios and
portfolio turnover in one summary table, reflecting the five most recent
reporting periods. In a semiannual report, the highlight table also
includes the current reporting period. For open-end funds, a separate
table is provided for each share class.
<TABLE>
<CAPTION>
The fund's portfolio
October 31, 1999 (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
MUNICIPAL BONDS AND NOTES (98.0%) (a)
PRINCIPAL AMOUNT RATING (RAT) VALUE
<S> <C> <C> <C>
New York (88.9%)
- --------------------------------------------------------------------------------------------------------------------------
$ 860,000 Ithaca, Hsg. Corp. Mtge. Rev. Bonds
(Eddygate Park Apts.), 9s, 6/1/06 BBB+/P $ 869,675
1,000,000 Long Island, Pwr. Auth. NY Elec. Syst. Rev. Bonds,
Ser. A, 5 1/4s, 12/1/26 A- 870,000
500,000 Metropolitan Trans. Auth. Svcs. Contract
Rev. Bonds (Trans. Fac.), Ser. O, 5 3/4s, 7/1/13 Baa1 501,875
1,000,000 Niagara Falls NY City Schl. Dist. , 5 7/8s, 6/15/19 Baa3 957,500
NY City, G.O. Bonds
1,385,000 Ser. A, 8s, 8/15/19 AAA 1,494,069
235,000 Ser. B, 6 3/4s, 10/1/17 A3 253,213
500,000 Ser. I, 6 1/4s, 4/15/17 A3 508,750
25,000 Ser. I, 6 1/4s, 4/15/17, Prerefunded A3 27,156
65,000 Ser. D, 6s, 2/15/25 A3 64,025
50,000 Ser. D, 6s, 2/15/25, Prerefunded A3 53,250
1,000,000 Ser. F, 5 7/8s, 8/1/24 A3 967,500
1,155,000 Ser. F, 5 3/4s, 2/1/19 A3 1,113,131
2,000,000 NY City, G.O. Bonds IFB, AMBAC, 8.12s, 9/1/11(SEG) Aaa 2,107,500
1,000,000 NY City, Indl. Dev. Agcy. Rev. Bonds
(Terminal One Group), 6s, 1/1/15 A 996,250
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
(American Airlines, Inc.)
1,500,000 8s, 7/1/20 Baa1 1,353,750
1,525,000 6.9s, 8/1/24 Baa1 1,584,094
1,500,000 NY City, Muni. Wtr. & Swr. Fin. Auth. Rev. Bonds,
Ser. A, 4 3/4s, 6/15/31 Aaa 1,211,250
1,300,000 NY State Dorm. Auth. IFB (Cornell U.), 10.702s,
7/1/30 (acquired 1/6/93, cost $1,533,675) (RES) Aa2 1,383,096
NY State Dorm. Auth. Rev. Bonds
1,500,000 (State U. Edl. Fac.), Ser. A, 7 1/2s, 5/15/13 A 1,753,125
2,000,000 (Cornell U.), Ser. A, 7 3/8s, 7/1/20 Aa2 2,074,100
2,000,000 (Mental Hlth. Svcs. Fac.), Ser. A, 5 3/4s, 2/15/27 A3 1,887,500
1,190,000 (City U. Syst. Construction), Ser. 1, 5 1/4s, 7/1/17 Baa1 1,069,513
2,000,000 NY State Energy Res. & Dev. Auth. Elec. Fac.
Rev. Bonds (Consolidated Edison Co. of NY, Inc.),
Ser. A, 7 1/2s, 1/1/26 A1 2,030,720
1,000,000 NY State Energy Res. & Dev. Auth. Poll. Control
Rev. Bonds (Niagra Mohawk Pwr. Corp.), Ser. A,
FGIC, 7.2s, 7/1/29 Aaa 1,100,000
1,600,000 NY State Env. Fac. Corp. Poll. Control Rev. Bonds
(State Wtr. Revolving Fund), Ser. A, 7 1/2s,
6/15/12 Aa2 1,660,592
2,000,000 NY State Hsg. Fin. Agcy. Svcs. Contract Oblig.
Rev. Bonds, Ser. A, 5 7/8s, 9/15/14 Baa1 1,992,500
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
360,000 (Mental Hlth.), Ser. D, 7.4s, 2/15/18 A3 381,600
940,000 (Mental Hlth.), Ser. D, 7.4s, 2/15/18, Prerefunded A3 1,017,550
1,720,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C,
6.65s, 8/15/32 Aa2 1,786,650
80,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C,
6.65s, 8/15/32, Prerefunded Aa2 86,100
895,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. D,
FHA Insd., 6.6s, 2/15/31 AAA 929,681
905,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. D,
FHA Insd., 6.6s, 2/15/31, Prerefunded AAA 978,531
1,800,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C,
FHA Insd., 6 3/8s, 8/15/29 AAA 1,876,500
2,075,000 NY State Urban Dev. Corp. Rev. Bonds, 7 1/2s,
4/1/20 Aaa 2,209,875
1,000,000 Onondaga Cnty., Indl. Dev. Agcy. Rev. Bonds
(Bristol-Meyers Squibb Co.), 5 3/4s, 3/1/24 Aaa 977,500
1,400,000 Port Auth. NY & NJ Cons. Rev. IFB, 8.936s, 8/1/26
(acquired 7/19/93, $1,687,700) (RES) AA- 1,519,000
-------------
41,647,121
Puerto Rico (9.1%)
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 PR Elec. Pwr. Auth. IFB, FSA, 8.208s, 7/1/23 Aaa 1,657,500
1,033,921 PR Hsg. Fin. Corp. Rev. Bonds (Bayamon Hsg. Dev.),
FHA Insd., 7 1/2s, 7/1/21 BBB+/P 1,138,606
1,365,000 PR Pub. Bldg. Auth. Gtd. Ed. & Hlth. Fac. Rev. Bonds,
Ser. L, 6 7/8s, 7/1/21 Aaa 1,475,906
-------------
4,272,012
- --------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $46,871,739) (b) $ 45,919,133
- --------------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $46,834,464.
(RAT) The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings available at
October 31, 1999 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, 1999. Securities
rated by Putnam are indicated by "/P" and are not publicly rated.
(b) The aggregate identified cost on a tax basis is $46,945,029, resulting in gross unrealized appreciation and
depreciation of $658,281 and $1,684,177, respectively, or net unrealized depreciation of $1,025,896.
(SEG) A portion of this security was pledged and segregated with the custodian to cover margin requirements for futures
contracts at October 31, 1999.
(RES) Restricted, excluding 144A securities, as to public resale. The total market value of restricted securities held
at October 31, 1999 was $2,902,096 or 6.2% of net assets.
The rates shown on IFB, which are securities paying interest rates that vary inversely to changes in the market
interest rates, are the current interest rates at October 31, 1999.
The fund had the following industry group concentrations greater than 10% at October 31, 1999 (as a percentage of
net assets):
Education 22.6%
Transportation 17.3
Hospital/health care 15.3
Utilities 15.0
The fund had the following insurance concentration greater than 10% at October 31, 1999 (as a percentage of net
assets):
FHA Insd. 10.5%
- -------------------------------------------------------------------------------
Futures Contracts Outstanding at October 31, 1999 (Unaudited)
Aggregate Face Expiration Unrealized
Total Value Value Date Depreciation
- -------------------------------------------------------------------------------
Muni Bond Index (long) $4,415,000 $4,541,703 Dec-99 $(126,703)
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of assets and liabilities
October 31, 1999 (Unaudited)
<S> <C>
Assets
- -----------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $46,871,739) (Note 1) $45,919,133
- -----------------------------------------------------------------------------------------------
Cash 390,771
- -----------------------------------------------------------------------------------------------
Interest receivable 786,955
- -----------------------------------------------------------------------------------------------
Receivable for variation margin 40,000
- -----------------------------------------------------------------------------------------------
Total assets 47,136,859
Liabilities
- -----------------------------------------------------------------------------------------------
Distributions payable to shareholders 192,153
- -----------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 84,458
- -----------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 3,277
- -----------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 9,981
- -----------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 354
- -----------------------------------------------------------------------------------------------
Other accrued expenses 12,172
- -----------------------------------------------------------------------------------------------
Total liabilities 302,395
- -----------------------------------------------------------------------------------------------
Net assets $46,834,464
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) 39,510,376
- -----------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 99,336
- -----------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (Note 1) (1,695,939)
- -----------------------------------------------------------------------------------------------
Net unrealized depreciation of investments (1,079,309)
- -----------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $46,834,464
Net assets available to:
- -----------------------------------------------------------------------------------------------
Series A remarketed preferred shares $10,000,000
- -----------------------------------------------------------------------------------------------
Cumulative undeclared dividends on remarketed preferred shares 8,767
- -----------------------------------------------------------------------------------------------
Net assets allocated to remarketed preferred
shares -- liquidation preference $10,008,767
- -----------------------------------------------------------------------------------------------
Net assets available to common shares $36,825,697
- -----------------------------------------------------------------------------------------------
Net asset value per common share
($36,825,697 divided by 2,847,092 shares) $12.93
- -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of operations
Six months ended October 31, 1999 (Unaudited)
<S> <C>
Tax exempt interest income: $ 1,545,895
- -----------------------------------------------------------------------------------------------
Expenses:
- -----------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 170,300
- -----------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 24,456
- -----------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 4,540
- -----------------------------------------------------------------------------------------------
Administrative services (Note 2) 2,195
- -----------------------------------------------------------------------------------------------
Reports to shareholders 6,205
- -----------------------------------------------------------------------------------------------
Registration fees 75
- -----------------------------------------------------------------------------------------------
Auditing 21,651
- -----------------------------------------------------------------------------------------------
Legal 2,513
- -----------------------------------------------------------------------------------------------
Postage 1,656
- -----------------------------------------------------------------------------------------------
Preferred share remarketing agent fees 19,249
- -----------------------------------------------------------------------------------------------
Exchange listing fees 667
- -----------------------------------------------------------------------------------------------
Total expenses 253,507
- -----------------------------------------------------------------------------------------------
Expense reduction (Note 2) (6,281)
- -----------------------------------------------------------------------------------------------
Net expenses 247,226
- -----------------------------------------------------------------------------------------------
Net investment income 1,298,669
- -----------------------------------------------------------------------------------------------
Net realized loss on investments (Notes 1 and 3) (9,540)
- -----------------------------------------------------------------------------------------------
Net realized loss on futures contracts (Note 1) (184,538)
- -----------------------------------------------------------------------------------------------
Net unrealized depreciation of investments and
futures contracts during the period (2,928,329)
- -----------------------------------------------------------------------------------------------
Net loss on investments (3,122,407)
- -----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(1,823,738)
- -----------------------------------------------------------------------------------------------
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
1999* 1999
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
- ---------------------------------------------------------------------------------------------------------------
Operations:
- ---------------------------------------------------------------------------------------------------------------
Net investment income $ 1,298,669 $ 2,593,427
- ---------------------------------------------------------------------------------------------------------------
Net realized loss on investments (194,078) (126,307)
- ---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments (2,928,329) 359,370
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (1,823,738) 2,826,490
Distributions to remarketed preferred shareholders:
- ---------------------------------------------------------------------------------------------------------------
From net investment income (160,329) (312,726)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations applicable to common shareholders
(excluding cumulative undeclared dividends on
remarketed preferred shares of $8,767 and
$18,986, respectively) (1,984,067) 2,513,764
Distributions to common shareholders:
- ---------------------------------------------------------------------------------------------------------------
From net investment income (1,152,833) (2,308,606)
- ---------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (3,136,900) 205,158
Net assets
- ---------------------------------------------------------------------------------------------------------------
Beginning of period 49,971,364 49,766,206
- ---------------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment
income of $99,336 and $113,829, respectively) $46,834,464 $49,971,364
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
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
(For a share outstanding throughout the period)
- ------------------------------------------------------------------------------------------------------------------------------------
Six months
ended
Per-share October 31
operating performance (Unaudited) Year ended April 30
- ------------------------------------------------------------------------------------------------------------------------------------
1999 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (common shares) $14.03 $13.96 $13.49 $13.54 $13.50 $13.86
- ------------------------------------------------------------------------------------------------------------------------------------
Investment operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income .46 .91 .95 .95 .98 1.06
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (1.10) .08 .45 (.07) .07 (.26)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (.64) .99 1.40 .88 1.05 .80
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income:
- ------------------------------------------------------------------------------------------------------------------------------------
To preferred shareholders (.05) (.11) (.12) (.12) (.13) (.13)
- ------------------------------------------------------------------------------------------------------------------------------------
To common shareholders (.41) (.81) (.81) (.81) (.88) (.94)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments:
- ------------------------------------------------------------------------------------------------------------------------------------
To preferred shareholders -- -- -- -- -- (.01)
- ------------------------------------------------------------------------------------------------------------------------------------
To common shareholders -- -- -- -- -- (.08)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (.46) (.92) (.93) (.93) (1.01) (1.16)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period
(common shares) $12.93 $14.03 $13.96 $13.49 $13.54 $13.50
- ------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period
(common shares) $12.563 $13.875 $13.625 $12.875 $13.000 $13.625
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Total return at market
value (common shares) (%)(a) (6.64)* 7.82 12.12 5.34 1.78 9.09
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(total fund) (in thousands) $46,834 $49,971 $49,766 $48,434 $48,583 $48,443
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Ratio of expenses to
average net assets (%)(b)(c) .66* 1.32 1.31 1.44 1.34 1.35
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Ratio of net investment income
to average net assets (%)(b) 3.00* 5.66 5.90 6.10 6.19 6.87
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) --* 24.04 18.22 49.71 84.87 8.55
- ------------------------------------------------------------------------------------------------------------------------------------
* Not Annualized.
(a) Total return assumes dividend reinvestment.
(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)
</TABLE>
Notes to financial statements
October 31, 1999 (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 a high current income exempt from federal
income tax and New York State and City personal income tax. The fund
intends to achieve its objective by investing in investment grade
municipal securities constituting a portfolio that 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
of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period.
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. Restricted
securities are stated at fair value following procedures approved by the
Trustees. 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). Gains or losses on securities sold are determined on
the identified cost basis.
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. When the contract is closed, the fund records a realized gain or
loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed. Realized gains and
losses on purchased options are included in realized gains and losses on
investment securities.
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, 1999, the fund had a capital loss carryover of approximately
$1,257,000 available to offset future capital gains, if any. The amount of
the carryover and the expiration dates are:
Loss Carryover Expiration
- -------------- --------------
$765,000 April 30, 2004
492,000 April 30, 2005
E) Distributions to shareholders Distributions to common and preferred
shareholders from net investment income 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, 1999 was
2.85%. 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.
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, less all
liabilities 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
discount bonds are accreted according to the yield to maturity basis.
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% thereafter.
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 gross 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 0.70% 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 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, 1999, fund expenses were reduced by
$6,281 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.
Each Trustee of the fund receives an annual Trustee fee, of which $411 has
been allocated to the fund, and an additional fee for each Trustee's
meeting attended. 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
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 a 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
Purchases and sales of securities
During the six months ended October 31, 1999, cost of purchases and
proceeds from sales of investment securities other than short-term
investments aggregated $-- and $160,438, respectively. There were no
purchases and sales of U.S. government obligations.
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, 1999, no such restrictions have been
placed on the fund.
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Fund information
WEB SITE
www.putnaminv.com
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
John A. Hill, Vice Chairman
Jameson Adkins Baxter
Hans H. Estin
Ronald J. Jackson
Paul L. Joskow
Elizabeth T. Kennan
Lawrence J. Lasser
John H. Mullin III
Robert E. Patterson
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
Ian C. Ferguson
Vice President
Brett C. Browchuk
Vice President
Stephen Oristaglio
Vice President
Jerome J. Jacobs
Vice President
Richard P. Wyke
Vice President and Fund Manager
Richard A. Monaghan
Vice President
John R. Verani
Vice President
Call 1-800-225-1581 weekdays from 9 a.m. to 5 p.m. Eastern Time, or visit
our Web site (www.putnaminv.com.) any 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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