Putnam
New York
Investment Grade
Municipal Trust
ANNUAL REPORT ON PERFORMANCE AND OUTLOOK
4-30-00
[SCALE LOGO OMITTED]
FROM THE CHAIRMAN
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM]
[COPYRIGHT] Karsh, Ottawa
Dear Shareholder:
The markets continued to provide their share of challenges and
opportunities as your fund closed its books on fiscal year 2000. In the
following report, the fund's manager discusses performance for the
period and prospects for the months ahead.
This is the last letter to you and the other shareholders of Putnam New
York Investment Grade Municipal Trust that I will be signing. After
more than 30 years as Chairman of the Trustees and President of the
Putnam Funds, the time has come for me to step aside. As of July 1,
2000, John Hill will become Chairman. John is currently an independent
Trustee and has served on the board for the past 14 years. In addition,
my son, George Putnam, III, will take on the role of President. I am
confident that the leadership of the funds will be in exceptionally
strong hands.
I will become Chairman Emeritus, remain a Putnam shareholder, and stay
in close touch with the funds. It has been my privilege to serve you.
Respectfully yours,
/S/GEORGE PUTNAM
George Putnam
Chairman of the Trustees
June 21, 2000
REPORT FROM THE FUND MANAGER
Richard P. Wyke
Although it is still wavering from a year of steady interest-rate
increases, the municipal bond market may slowly be approaching the point
at which the news gets better. It may not seem like good news, but a
responsible Federal Reserve Board, like the one we have, is positive for
bond investors. To be sure, Fed policy and rising interest rates have
had a negative effect on bond prices, as evidenced by the performance of
Putnam New York Investment Grade Municipal Trust for the 12 months ended
April 30, 2000. However, in the longer run, short-term interest-rate
increases should keep inflation, the bond market's worst enemy, under
control.
Total return for 12 months ended 4/30/00
NAV Market price
----------------------------------------------
-2.61% -7.75%
----------------------------------------------
Past performance is no indication of future results. Performance
information for longer periods begins on page 5.
* HIGH LEVEL OF INCOME SHOULD COMFORT INVESTORS
While long-term insured municipal bonds have historically yielded about
85% of comparable 30-year U.S. Treasury bonds, that ratio is now above
95%. That close relationship translates into an attractive level of
tax-free income for most municipal bond funds, including your fund.
There is a reason for this close relationship between Treasury bonds and
municipal bonds. The Treasury's highly publicized debt buyback program
has shrunk the supply of outstanding long-term bonds at the same time
that investors are demanding the relative safety of government bonds.
Consequently, because of the relationship of supply and demand, Treasury
bond prices have risen while yields have moved down, closer to municipal
bond yields.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Hospital/
health care 22.5%
Education 15.5%
Transportation 11.8%
Utilities 8.8%
Water and sewer 6.3%
Footnote reads:
*Based on net assets as of 4/30/00. Holdings will vary over time.
* LOWER TIER OF INVESTMENT-GRADE SECTOR OFFERS OPPORTUNITY
We are working hard to maintain the fund's relatively high level of
tax-free income. One way we seek to do this is by looking for securities
at the lower end of the investment-grade spectrum -- primarily
BBB/Baa-rated credits. This is the point at which we rely heavily on the
expertise of our analytical team because there is intense competition,
especially in New York City and among the state agencies, for a limited
supply of lower-tier investment-grade bonds. Because of the strong
economy, aggressive tax cuts, and a sizable budget surplus, the state of
New York has seen a fair amount of credit upgrades among its cities,
counties, and developmental authorities, so it is currently difficult to
find the BBB/Baa-rated issuers.
One attractive purchase in the fund came from a sector that has been
under considerable pressure: the hospital/health-care sector. The
pressure began with the Balanced Budget Act of 1997 and has negatively
affected hospital revenues ever since. The situation grew worse with the
excess of hospitals and beds, the growth of managed care, and the many
unsuccessful acquisitions that took place in the past few years. Our
analysts now believe that there is justification for a more optimistic
outlook for the health-care sector because there are rumblings of
further relief from Congress as well as signs of better management.
[GRAPHIC OMITTED: pie chart CREDIT QUALITY OVERVIEW]
CREDIT QUALITY OVERVIEW*
AAA/Aaa -- 34.0%
AA/Aa -- 15.7%
A -- 33.9%
BBB/Baa -- 16.4%
Footnote reads:
*As a percentage of market value as of 4/30/00. 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.
Because the sector offers a great deal of lower-tier investment grade
bonds with relatively high yields, it currently is the largest industry
sector in the portfolio. And higher risk, if selectively taken, can mean
opportunity. After careful analysis, we purchased Baa1-rated revenue
bonds issued by the New York Dormitory Authority for renovations to the
Mount Sinai Medical Center.
* BOND MARKETS CONTINUE TO FACE PRESSURE NEAR TERM
When interest rates are rising, a natural reaction among investors can
be to buy guaranteed certificates of deposit in preference to tax-free
bond fund investments because the unchanging income from CDs seems more
appealing. In such an environment, however, investors may find they end
up with only one to two years of attractive income and are then out of
the bond market during the period of its strongest returns -- just when
the direction of interest rates turns around. The investment value and
return on bond funds, of course, will fluctuate with the market.
Although the principal value of CDs is generally insured and their rate
of return is fixed, CDs may be subject to penalties for early
withdrawals and the income they provide is fully taxable.
As of the writing of this report, the Fed has adopted a more aggressive
stance in its fight against inflation, pushing short-term interest rates
up for the sixth time in the past year, this time by half a percentage
point. This was the first time the central bank raised rates that
sharply in more than five years. Surprisingly, throughout all of the
Fed's rate increases, the economic boom has continued, growth has
accelerated, and unemployment has declined.
With more interest rate increases to come if economic activity does not
slow, the markets are likely to be unstable in the near term. Once
economic data such as retail sales and housing sales reports reveal that
economic growth is finally slowing, bond markets, including the
municipal bond market, should perform better.
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 4/30/00, 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 4/30/00
Lehman Brothers
Market Municipa1 Consumer
(common shares) NAV price Bond Index price index
------------------------------------------------------------------
1 year -2.61% -7.75% -0.92% 3.01%
------------------------------------------------------------------
5 years 28.76 19.51 33.34 12.71
Annual average 5.19 3.63 5.92 2.42
------------------------------------------------------------------
Life of fund 47.38 28.77 53.79 20.56
(since 11/27/92)
Annual average 5.37 3.47 5.98 2.55
------------------------------------------------------------------
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 12 MONTHS ENDED 4/30/00
-----------------------------------------------------------
Distributions (common shares)
-----------------------------------------------------------
Number 12
-----------------------------------------------------------
Income $0.810
-----------------------------------------------------------
Capital gains1 --
-----------------------------------------------------------
Total $0.810
-----------------------------------------------------------
Preferred shares Series A (200 shares)
-----------------------------------------------------------
Income $1,610.58
-----------------------------------------------------------
Capital gains1 --
-----------------------------------------------------------
Total $1,610.58
-----------------------------------------------------------
Share value (common shares) NAV Market price
-----------------------------------------------------------
4/30/99 $14.03 $13.875
-----------------------------------------------------------
4/30/00 12.81 12.000
-----------------------------------------------------------
Current return (common shares/end of period)
-----------------------------------------------------------
Current dividend rate2 6.32% 6.75%
-----------------------------------------------------------
Taxable equivalent3 11.71 12.50
-----------------------------------------------------------
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 combined 46.02% federal, New York state and New York City tax
rate. Results for investors subject to lower tax rates would not be as
advantageous.
TOTAL RETURN FOR PERIODS ENDED 3/31/00 (most recent calendar quarter)
Market
(common shares) NAV price
-------------------------------------------------
1 year -1.59% -12.03%
-------------------------------------------------
5 years 30.29 22.13
Annual average 5.44 4.08
-------------------------------------------------
Life of fund 48.74 26.05
(since 11/27/92)
Annual average 5.56 3.20
-------------------------------------------------
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 values, and market price will fluctuate so that an
investor's shares when sold may be worth more or less than their
original cost.
TERMS AND DEFINITIONS
Total return shows how the value of the fund's shares changed over time,
assuming you held the shares through the entire period and reinvested
all distributions in the fund.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities, and the net assets allocated to remarketed preferred
shares, divided by the number of outstanding common shares.
Market price is the current trading price of one share of the fund.
Market prices are set by transactions between buyers and sellers on the
American Stock Exchange.
COMPARATIVE BENCHMARKS
Lehman Brothers Municipal Bond Index is an unmanaged list of long-term
fixed-rate investment-grade tax-exempt bonds representative of the
municipal bond market. The index 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 index 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, preceded by the Report of independent
accountants, 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.
REPORT OF INDEPENDENT ACCOUNTANTS
For the fiscal year ended April 30, 2000
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 fund's portfolio (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, 2000, and the results of its operations, the
changes in its net assets and the financial highlights for the periods
indicated, in conformity with accounting principles generally accepted
in the United States. 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
auditing standards generally accepted in the United States, 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, 2000 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
June 9, 2000
<TABLE>
<CAPTION>
THE FUND'S PORTFOLIO
April 30, 2000
KEY TO ABBREVIATIONS
AMBAC -- AMBAC Indemnity Corporation
COP -- Certificate of Participation
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 (100.2%) (a)
PRINCIPAL AMOUNT RATING(RAT) VALUE
<S> <C> <C>
New York (91.3%)
-------------------------------------------------------------------------------------------------------------------
$ 860,000 Ithaca, Hsg. Corp. Mtge. Rev. Bonds (Eddygate
Park Apts.), 9s, 6/1/06 BBB+/P $ 866,450
1,000,000 Long Island, Pwr. Auth. NY Elec. Syst. Rev. Bonds,
Ser. A, 5 1/4s, 12/1/26 Baa1 877,500
500,000 Metropolitan Trans. Auth. Svcs. Contract Rev. Bonds
(Trans. Fac.), Ser. O, 5 3/4s, 7/1/13 A 504,375
1,000,000 Niagara Falls NY City School Dist. COP,
5 7/8s, 6/15/19 Baa3 958,750
NY City, G.O. Bonds
1,385,000 Ser. A, 8s, 8/15/19 AAA 1,462,906
235,000 Ser. B, 6 3/4s, 10/1/17 A3 248,513
500,000 Ser. I, 6 1/4s, 4/15/17 A3 517,500
25,000 Ser. I, 6 1/4s, 4/15/17 Prerefunded A3 26,813
65,000 Ser. D, 6s, 2/15/25 A3 64,431
50,000 Ser. D, 6s, 2/15/25 Prerefunded A3 52,438
1,000,000 Ser. F, 5 7/8s, 8/1/24 A3 976,250
1,155,000 Ser. F, 5 3/4s, 2/1/19 A3 1,129,013
2,000,000 NY City, G.O. Bonds IFB, AMBAC, 6.82s, 9/1/11 (SEG) Aaa 2,102,500
1,000,000 NY City, Indl. Dev. Agcy. Rev. Bonds (Terminal
One Group), 6s, 1/1/15 A 1,000,000
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
(American Airlines, Inc.)
1,525,000 6.9s, 8/1/24 Baa1 1,563,125
1,500,000 5.4s, 7/1/20 Baa1 1,291,875
1,500,000 NY City, Muni. Wtr. & Swr. Fin. Auth. Rev. Bonds,
Ser. A, 4 3/4s, 6/15/31 Aaa 1,218,750
NY State Dorm. Auth. Rev. Bonds
1,500,000 (State U. Edl. Fac.), Ser. A, 7 1/2s, 5/15/13 Aa2 1,762,500
2,000,000 (Cornell U.), Ser. A, 7 3/8s, 7/1/20 Aa2 2,047,100
1,000,000 (Mnt. Sinai Hlth.), Ser. A, 6 1/2s, 7/1/25 Baa1 989,000
2,000,000 (Mental Hlth. Svcs. Fac.), Ser. A, 5 3/4s, 2/15/27 A 1,905,000
1,500,000 (Dept. of Hlth.), 5 1/2s, 7/1/25 A 1,374,375
1,190,000 (City U. Syst. Construction), Ser. 1, 5 1/4s, 7/1/17 A 1,099,263
2,000,000 NY State Energy Res. & Dev. Auth. Elec. Fac.
Rev. Bonds (Cons. Edison Co. of NY, Inc.),
Ser. A, 7 1/2s, 1/1/26 A1 2,028,680
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 1,091,250
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 1,636,688
2,000,000 NY State Hsg. Fin. Agcy. Svcs. Contract Oblig.
Rev. Bonds, Ser. A, 5 7/8s, 9/15/14 A 2,005,000
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
360,000 (Mental Hlth. Svcs. Fac.), Ser. D, 7.4s, 2/15/18 A 379,350
940,000 (Mental Hlth. Svcs. Fac.), Ser. D, 7.4s, 2/15/18
Prerefunded A 998,750
1,720,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C,
6.65s, 8/15/32 Aa2 1,778,050
80,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C,
6.65s, 8/15/32 Prerefunded Aa2 84,700
1,800,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. D,
FHA Insd., 6.6s, 2/15/31 AAA 1,910,250
1,800,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C,
FHA Insd., 6 3/8s, 8/15/29 AAA 1,860,750
2,075,000 NY State Urban Dev. Corp. Rev. Bonds,
7 1/2s, 4/1/20 Aaa 2,173,521
1,000,000 Onondaga Cnty., Indl. Dev. Agcy. Rev. Bonds
(Bristol-Meyers Squibb Co.), 5 3/4s, 3/1/24 Aaa 962,500
1,400,000 Port Auth. NY & NJ Cons. Rev. IFB, 8.53s, 8/1/26
(acquired 7/19/93, $1,687,700) (RES) A1 1,487,500
----------------
42,435,416
Puerto Rico (9.0%)
-------------------------------------------------------------------------------------------------------------------
1,500,000 PR Elec. Pwr. Auth. IFB, FSA, 6.58s, 7/1/23 Aaa 1,610,625
1,012,872 PR Hsg. Fin. Corp. Rev. Bonds (Bayamon Hsg. Dev.),
FHA Insd., 7 1/2s, 7/1/21 BBB+/P 1,117,956
1,365,000 PR Pub. Bldg. Auth. Gtd. Ed. & Hlth. Fac. Rev. Bonds,
Ser. L, 6 7/8s, 7/1/21 Aaa 1,445,194
----------------
4,173,775
-------------------------------------------------------------------------------------------------------------------
Total Investments (cost $47,674,431) (b) $ 46,609,191
-------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $46,503,863.
(RAT) The Moody's or Standard & Poor's ratings indicated are believed to
be the most recent ratings available at April 30, 2000 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, 2000. Securities rated by Putnam are indicated
by "/P" and are not publicly rated. Ratings are not covered by the
Report of independent accountants.
(b) The aggregate identified cost on a tax basis is $47,747,720,
resulting in gross unrealized appreciation and depreciation of $595,345
and $1,733,874, respectively, or net unrealized depreciation of
$1,138,529.
(RES) Restricted, excluding 144A securities, as to public resale.
The total market value of restricted securities held at April 30,
2000 was $1,487,500 or 3.2% of net assets.
(SEG) A portion of this security was pledged and segregated with the
custodian to cover margin requirements for futures contracts at April
30, 2000.
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 April 30, 2000.
The fund had the following industry group concentrations greater
than 10% at April 30, 2000 (as a percentage of net assets):
Hospital/health care 22.5%
Education 15.5
Transportation 11.8
The fund had the following insurance concentration greater than
10% at April 30, 2000 (as a percentage of net assets):
FHA Insd. 10.5%
----------------------------------------------------------------------------
Futures Contracts Outstanding at April 30, 2000
Aggregate Face Expiration Unrealized
Total Value Value Date Appreciation
----------------------------------------------------------------------------
Municipal Bond Index
(Long) $4,381,281 $4,346,239 Jun-00 $35,042
----------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
<S> <C>
Assets
-------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $47,674,431) (Note 1) $46,609,191
-------------------------------------------------------------------------------------------
Cash 397,805
-------------------------------------------------------------------------------------------
Interest receivable 777,867
-------------------------------------------------------------------------------------------
Receivable for variation margin 5,875
-------------------------------------------------------------------------------------------
Total assets 47,790,738
Liabilities
-------------------------------------------------------------------------------------------
Distributions payable to shareholders 192,151
-------------------------------------------------------------------------------------------
Payable for securities purchased 994,908
-------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 80,346
-------------------------------------------------------------------------------------------
Payable for investor servicing and custodian fees (Note 2) 1,490
-------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 10,899
-------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 325
-------------------------------------------------------------------------------------------
Other accrued expenses 6,756
-------------------------------------------------------------------------------------------
Total liabilities 1,286,875
-------------------------------------------------------------------------------------------
Net assets $46,503,863
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) 46,668
-------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (Note 1) (2,022,983)
-------------------------------------------------------------------------------------------
Net unrealized depreciation of investments (1,030,198)
-------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to
capital shares outstanding $46,503,863
Net assets available to:
-------------------------------------------------------------------------------------------
Series A remarketed preferred shares $10,000,000
-------------------------------------------------------------------------------------------
Cumulative undeclared dividends on remarketed preferred shares 24,986
-------------------------------------------------------------------------------------------
Net assets allocated to remarketed preferred
shares -- liquidation preference $10,024,986
-------------------------------------------------------------------------------------------
Net assets available to common shares $36,478,877
-------------------------------------------------------------------------------------------
Net asset value per common share
($36,478,877 divided by 2,847,092 shares) $12.81
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Year ended April 30, 2000
<S> <C>
Tax exempt interest income: $3,082,036
-------------------------------------------------------------------------------------------
Expenses:
-------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 332,431
-------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 46,203
-------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 9,342
-------------------------------------------------------------------------------------------
Administrative services (Note 2) 4,118
-------------------------------------------------------------------------------------------
Reports to shareholders 10,736
-------------------------------------------------------------------------------------------
Registration fees 75
-------------------------------------------------------------------------------------------
Auditing 71,876
-------------------------------------------------------------------------------------------
Legal 4,675
-------------------------------------------------------------------------------------------
Postage 3,053
-------------------------------------------------------------------------------------------
Preferred share remarketing agent fees 38,278
-------------------------------------------------------------------------------------------
Exchange listing fees 667
-------------------------------------------------------------------------------------------
Other 17,784
-------------------------------------------------------------------------------------------
Total expenses 539,238
-------------------------------------------------------------------------------------------
Expense reduction (Note 2) (17,869)
-------------------------------------------------------------------------------------------
Net expenses 521,369
-------------------------------------------------------------------------------------------
Net investment income 2,560,667
-------------------------------------------------------------------------------------------
Net realized loss on investments (Notes 1 and 3) (179,555)
-------------------------------------------------------------------------------------------
Net realized loss on futures contracts (Note 1) (341,567)
-------------------------------------------------------------------------------------------
Net unrealized depreciation of investments and
futures contracts during the year (2,879,218)
-------------------------------------------------------------------------------------------
Net loss on investments (3,400,340)
-------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(839,673)
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Year ended Year ended
April 30 April 30
2000 1999
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
--------------------------------------------------------------------------------------------------
Operations:
--------------------------------------------------------------------------------------------------
Net investment income $ 2,560,667 $ 2,593,427
--------------------------------------------------------------------------------------------------
Net realized loss on investments (521,122) (126,307)
--------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments (2,879,218) 359,370
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (839,673) 2,826,490
--------------------------------------------------------------------------------------------------
Distributions to remarketed preferred shareholders:
--------------------------------------------------------------------------------------------------
From net investment income (322,116) (312,726)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations applicable to common shareholders
(excluding cumulative undeclared dividends on
remarketed preferred shares of $24,986 and
$18,986, respectively) (1,161,789) 2,513,764
--------------------------------------------------------------------------------------------------
Distributions to common shareholders:
--------------------------------------------------------------------------------------------------
From net investment income (2,305,712) (2,308,606)
--------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (3,467,501) 205,158
Net assets
--------------------------------------------------------------------------------------------------
Beginning of year 49,971,364 49,766,206
--------------------------------------------------------------------------------------------------
End of year (including undistributed net investment
income of $46,668 and $113,829, respectively) $46,503,863 $49,971,364
--------------------------------------------------------------------------------------------------
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)
------------------------------------------------------------------------------------------------
Per-share
operating performance Year ended April 30
------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (common shares) $14.03 $13.96 $13.49 $13.54 $13.50
------------------------------------------------------------------------------------------------
Investment operations
------------------------------------------------------------------------------------------------
Net investment income .90 .91 .95 .95 .98
------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (1.19) .08 .45 (.07) .07
------------------------------------------------------------------------------------------------
Total from investment operations (.29) .99 1.40 .88 1.05
------------------------------------------------------------------------------------------------
Less distributions from:
------------------------------------------------------------------------------------------------
Net investment income:
------------------------------------------------------------------------------------------------
To preferred shareholders (.12) (.11) (.12) (.12) (.13)
------------------------------------------------------------------------------------------------
To common shareholders (.81) (.81) (.81) (.81) (.88)
------------------------------------------------------------------------------------------------
Total distributions (.93) (.92) (.93) (.93) (1.01)
------------------------------------------------------------------------------------------------
Net asset value, end of period
(common shares) $12.81 $14.03 $13.96 $13.49 $13.54
------------------------------------------------------------------------------------------------
Market value, end of period
(common shares) $12.000 $13.875 $13.625 $12.875 $13.000
------------------------------------------------------------------------------------------------
Ratios and supplemental data
------------------------------------------------------------------------------------------------
Total return at market
value (common shares)(%)(a) (7.75) 7.82 12.12 5.34 1.78
------------------------------------------------------------------------------------------------
Net assets, end of period
(total fund)(in thousands) $46,504 $49,971 $49,766 $48,434 $48,583
------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b)(c) 1.44 1.32 1.31 1.44 1.34
------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%)(b) 5.96 5.66 5.90 6.10 6.19
------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 3.32 24.04 18.22 49.71 84.87
------------------------------------------------------------------------------------------------
(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) Includes amounts paid through expense offset arrangements (Note 2).
</TABLE>
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
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, 2000, the fund had a capital loss carryover of
approximately $1,689,000 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
432,000 April 30, 2008
E) Distributions to shareholders Distributions to common and preferred
shareholders from net investment income are recorded by the fund on the
ex-dividend date. Capital gains, if any, are recorded on the ex-dividend
date and paid at least annually. 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, 2000 was 3.50%. 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 temporary and permanent
differences of losses on wash sale transactions, post-October loss
deferrals, unrealized gains and losses on certain futures contracts,
paydown adjustment for mortgage backed securities, and prior year
straddle loss deferrals. 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 period ended April 30, 2000, the fund required no such
reclassifications.
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 year ended April 30, 2000, fund expenses were reduced by $17,869
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 $423
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 year ended April 30, 2000, cost of purchases and proceeds
from sales of investment securities other than short-term investments
aggregated $2,382,720 and $1,546,920, 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 April 30, 2000, 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 2001 will show the tax status of
all distributions paid to your account in calendar 2000.
RESULTS OF OCTOBER 7, 1999 SHAREHOLDER MEETING
(Unaudited)
An annual meeting of shareholders of the fund was held on October 7,
1999. At the meeting, each of the nominees for Trustees was elected, as
follows:
Common Shares
Votes
Votes for withheld
Jameson Adkins Baxter 2,574,241 41,482
Hans H. Estin 2,573,771 41,952
Ronald J. Jackson 2,575,131 40,592
Paul L. Joskow 2,575,131 40,592
Elizabeth T. Kennan 2,573,431 42,292
Lawrence J. Lasser 2,575,131 40,592
John H. Mullin III 2,573,731 41,992
William F. Pounds 2,574,091 41,632
George Putnam 2,575,131 40,592
George Putnam, III 2,575,131 40,592
A.J.C. Smith 2,574,121 41,602
W. Thomas Stephens 2,572,721 43,002
W. Nicholas Thorndike 2,574,441 41,282
Preferred Shares
Votes
Votes for withheld
John A. Hill 197 0
Robert E. Patterson 197 0
A proposal to ratify the selection of PricewaterhouseCoopers LLP as the
independent auditors of your fund was approved as follows:
Common Shares -- 2,570,279 votes for, and 3,092 votes against, with
42,352 abstentions.
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
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
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
Richard G. Leibovitch
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.
[LOGO OMITTED]
PUTNAM INVESTMENTS
The Putnam Funds
One Post Office Square
Boston, Massachusetts 02109
---------------------
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PUTNAM
INVESTMENTS
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For account balances, economic forecasts, and the latest on Putnam funds, visit
www.putnaminv.com
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