Putnam
New York
Investment Grade
Municipal Trust
SEMIANNUAL REPORT ON PERFORMANCE AND OUTLOOK
10-31-00
[SCALE LOGO OMITTED]
FROM THE TRUSTEES
[GRAPHIC OMITTED: PHOTO OF JOHN A. HILL AND GEORGE PUTNAM, III]
Dear Shareholder:
Against a backdrop of declining interest rates, low inflation, and
economic prosperity, municipal bonds rallied during the six months ended
October 31, 2000. Municipal securities also benefited from the increased
volatility in the stock market, leading investors to seek the relative
calm of fixed-income securities -- as well as the diversification
advantages these securities provide. Heightened demand combined with a
low supply of new tax-free securities coming to market helped to push
municipal bonds prices higher. Your fund has been positioned for an
eventual turnaround in the fixed-income markets for some time. We have
extended the portfolio's duration and invested in selected bonds with
the potential for credit upgrades at the lower end of the
investment-grade spectrum, with positive results.
Total return for 6 months ended 10/31/00
NAV Market price
-----------------------------------------------------------------------
6.36% 5.91%
-----------------------------------------------------------------------
Past performance is not indicative of future results. Performance
information for longer periods begins on page 7.
* MUNICIPAL BOND MARKET REWARDS PATIENCE
This year, investors were reminded of one of the basic principles of
investing. When the financial markets turn around, they move so fast
that if investors aren't already positioned in the recovering sector,
they will be too late to benefit. When the Nasdaq plunged in March,
setting off a long string of declines in other equity markets, bonds
suddenly were the place to be. Even though the Federal Reserve Board was
absorbed in raising interest rates during the first half of the year,
the municipal bond market began to anticipate the beginning of a
slowdown in the economy and delivered better performance to investors
who had maintained their positions.
[GRAPHIC OMITTED: horizontal bar chart TOP INDUSTRY SECTORS]
TOP INDUSTRY SECTORS*
Health care 29.7%
Utilities 15.3%
Transportation 14.8%
Housing 8.3%
Education 8.0%
Footnote reads:
*Based on net assets as of 10/31/00. Holdings will vary over time.
For most of the past six months, we have begun to see positive total
returns as interest rates in the municipal market have fallen. In tandem
with declining interest rates and strong demand for high quality, liquid
bonds, the AAA sector of the municipal market has benefited the most. As
a result, we witnessed a dramatic difference in yield between the
highest-rated and lowest-rated municipal bonds (known as credit yield
spread). With 42% of its total net assets invested in AAA-rated or
insured New York municipal bonds on October 31, 2000, your fund
benefited from this trend.
As investors have moved into the highest-quality municipal bonds, the
prices of lower-rated bonds have lagged. While your fund invests only in
investment-grade bonds, we do scour the lower end of the
investment-grade spectrum for attractively priced municipal bonds with
strong income and price appreciation potential. In recent years in the
New York municipal bond market, it has been difficult to carry out this
strategy. As New York's credit quality has steadily improved, so too has
the credit quality of the outstanding municipal bonds issued by agencies
backed by the general credit and the taxing power of the state or its
local governments -- thereby effectively reducing the number of bonds
with lower investment-grade quality.
[GRAPHIC OMITTED: pie chart CREDIT QUALITY OVERVIEW]
CREDIT QUALITY OVERVIEW*
AAA/Aaa -- 38.2%
AA/Aa -- 7.2%
A -- 36.6%
BBB/Baa -- 18.0%
Footnote reads:
*As a percentage of market value as of 10/31/00. A bond rated Baa 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 fund's recent purchase of bonds issued by Bard College, a liberal
arts undergraduate college located on the banks of the Hudson River,
exemplifies this strategy. These bonds, while currently unrated by the
major rating agencies, have been assigned an internal rating of A3 by
Putnam's analysts and carry a 5 3/4% coupon. While this holding was
viewed favorably at the end of the period, it is subject to review and
adjustment in accordance with the fund's investment strategy, and may
vary in the future.
* SOUND STATE ECONOMY, POLITICAL LEADERSHIP GENERATES HISTORIC BUDGET
SURPLUS; SUPPLY DECLINE
Like much of the nation, the Empire State is enjoying strong economic
growth, which in turn is producing sizable budget surpluses. In fact,
New York City just recorded 20 consecutive years of operating surpluses,
despite a heavy debt burden. The size of the surplus for fiscal 2000 was
larger than any time in recorded history. Most certainly, Wall Street's
continued profitability is a significant factor in this positive state
of affairs.
Governor Pataki and the New York state legislature approved the Debt
Reform Act of 2000 with broad bipartisan effort. The passage of this
bill, which places restrictions on Albany's ability to issue new debt,
boosts the state's political credibility, because it preserves the
status quo debt burden level and minimizes the risk of any increase in
the state's debt. On another front, the state's political governance of
Nassau County's fiscal crisis highlights the capabilities of New York's
executive and legislative leadership to work together effectively.
Given these positive developments, both New York City and New York state
bonds received favorable reviews from the rating agencies. Moody's and
Standard & Poor's recently upgraded New York City from A3 and A- to A2
and A, respectively. Moody's also changed its outlook for New York State
from stable to positive -- a step that typically presages a credit
upgrade. These credit developments have, in turn, had a positive impact
on the prices of bonds held in your portfolio.
In contrast to 1999, the level of new issuance in New York has been
quite light this year. Higher interest rates, particularly in the first
half of 2000, effectively curtail the number of refinancings by
municipalities. (Much like homeowners, state and local governments will
replace bonds paying high interest rates with bonds paying lower
interest rates to reduce the cost of their debt burden in a low
interest-rate environment.) However, the distribution of proceeds from
the tobacco industry's settlement has begotten a whole new class of
municipal securities that allow counties to securitize their prospective
receipts. These "tobacco bonds" have received investment-grade ratings
from the major rating agencies that are typically AA, predicated in
large part of the future growth of demand for cigarettes. We are not
comfortable with the outlook for this sector going forward and have
chosen not to participate in this unusual offering.
* MORE FAVORABLE INTEREST-RATE SCENARIO ANTICIPATED
The Fed did not raise interest rates in October or November, and the
odds are very good that it will move to a neutral bias if the equity
markets remain volatile. There are signs that the economy is slowing a
bit and its hoped-for soft landing is becoming more of a reality. This
is welcome news for your fund's leveraging strategy. (In leveraging, the
fund issues and sells preferred shares to institutional investors at low
rates and reinvests the proceeds in longer-term, higher-paying bonds.)
As short-term interest rates rose earlier this year, some 50 basis
points, the cost of the fund's preferred shares rose by half a percent.
With approximately 21% of the fund leveraged through its preferred
shares, the increase was not insignificant. Overall, the decline in
interest rates over the past few months has eased this pressure
somewhat, and leveraging remains a profitable strategy for the fund.
As the negative cash flow out of municipal bond funds dwindles, a
consequence of improving performance, the investments in your fund are
well positioned to reap the benefits of rising prices and narrowing
credit spreads in one of the nation's largest and most dynamic municipal
bond marketplaces.
Respectfully yours,
/S/ JOHN A. HILL /S/ GEORGE PUTNAM, III
John A. Hill George Putnam, III
Chairman of the Trustees President of the Funds
December 20, 2000
A NOTE ABOUT DUPLICATE MAILINGS
In response to investors' requests, the SEC has modified mailing regulations
for semiannual and annual reports and prospectuses. Putnam is now able to
send a single copy of these materials to customers who share the same
address. This change will automatically apply to all shareholders except
those who notify us. If you would prefer to receive your own copy, please
call Putnam at 1-800-225-1581.
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 10/31/00
Lehman Bros.
Municipal Bond Consumer
(common shares) NAV Market price Index price index
-------------------------------------------------------------------------------
6 months 6.36% 5.91% 5.72% 1.52%
-------------------------------------------------------------------------------
1 year 9.01 4.66 8.51 3.45
-------------------------------------------------------------------------------
5 years 28.41 22.37 32.05 13.14
Annual average 5.13 4.12 5.72 2.50
-------------------------------------------------------------------------------
Life of fund
(since 11/27/92) 56.76 36.38 62.60 22.46
Annual average 5.83 3.99 6.33 2.59
-------------------------------------------------------------------------------
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 10/31/00
-------------------------------------------------------------------------------
Distributions (common shares)
-------------------------------------------------------------------------------
Number 6
-------------------------------------------------------------------------------
Income $0.405
-------------------------------------------------------------------------------
Capital gains1 --
-------------------------------------------------------------------------------
Total $0.405
-------------------------------------------------------------------------------
Preferred shares Series A (200 shares)
-------------------------------------------------------------------------------
Income $1,072.05
-------------------------------------------------------------------------------
Capital gains1 --
-------------------------------------------------------------------------------
Total $1,072.05
-------------------------------------------------------------------------------
Share value (common shares) NAV Market price
-------------------------------------------------------------------------------
4/30/00 $12.81 $12.000
-------------------------------------------------------------------------------
10/31/00 13.20 12.313
-------------------------------------------------------------------------------
Current return (common shares)
-------------------------------------------------------------------------------
Current
dividend
rate2 6.14% 6.58%
-------------------------------------------------------------------------------
Taxable
equivalent3 11.37 12.19
-------------------------------------------------------------------------------
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 Most recent distribution, excluding capital gains, annualized and
divided by NAV or market price at end of period.
3 Assumes maximum 46.02% combined federal, state, and city tax rate.
Results for investors subject to lower tax rates would not be as
advantageous.
TOTAL RETURN FOR PERIODS ENDED 9/30/00(most recent calendar quarter)
(common shares) NAV Market price
-------------------------------------------------------------------------------
6 months 4.28% 11.99%
-------------------------------------------------------------------------------
1 year 6.38 7.84
-------------------------------------------------------------------------------
5 years 28.97 25.08
Annual average 5.22 4.58
-------------------------------------------------------------------------------
Life of fund
(since 11/27/92) 55.10 41.16
Annual average 5.76 4.49
-------------------------------------------------------------------------------
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 and principal value will fluctuate so that an investor's shares
when sold may be worth more or less than their original cost.
TERMS AND DEFINITIONS
Total return shows how the value of the fund's shares changed over time,
assuming you held the shares through the entire period and reinvested
all distributions in the fund.
Net asset value (NAV) is the value of all your fund's assets, minus any
liabilities and the net assets allocated to remarketed preferred shares,
divided by the number of outstanding common shares.
Market price is the current trading price of one share of the fund.
Market prices are set by transactions between buyers and sellers on the
New York Stock Exchange.
COMPARATIVE BENCHMARKS
Lehman Brothers Municipal Bond Index is an unmanaged list of long-term
fixed-rate investment-grade tax-exempt bonds representative of the
municipal bond market. 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 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, 2000 (Unaudited)
KEY TO ABBREVIATIONS
AMBAC -- AMBAC Indemnity Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FHA Insd. -- Federal Housing Administration Insured
FRB -- Floating Rate Bonds
FSA -- Financial Security Assurance
G.O. Bonds -- General Obligation Bonds
IFB -- Inverse Floating Rate Bonds
MUNICIPAL BONDS AND NOTES (97.3%) (a)
PRINCIPAL AMOUNT RATING (RAT) VALUE
<S> <C> <C> <C>
New York (88.6%)
-------------------------------------------------------------------------------------------------------------------
$ 1,000,000 Dutchess Cnty., Indl. Dev. Agcy. Rev. Bonds
(Baird College Civic Fac.), 5 3/4s, 8/1/30 A3 $ 987,500
835,000 Ithaca, Hsg. Corp. Mtge. Rev. Bonds
(Eddygate Park Apts.), 9s, 6/1/06 BBB+/P 847,525
1,000,000 Long Island, Pwr. Auth. NY Elec. Syst. Rev. Bonds,
Ser. A, 5 1/4s, 12/1/26 A- 930,000
500,000 Metropolitan Trans. Auth. Svcs. Contract Fac. Rev.
Bonds (Trans. Fac.), Ser. O, 5 3/4s, 7/1/13 A 525,000
1,000,000 Niagara Falls NY City School Dist. COP, 5 7/8s,
6/15/19 Baa 1,002,500
NY City, G.O. Bonds
1,385,000 Ser. A, 8s, 8/15/19 Prerefunded AAA 1,444,555
235,000 Ser. B, 6 3/4s, 10/1/17 A- 248,513
500,000 Ser. I, 6 1/4s, 4/15/17 A 528,125
25,000 Ser. I, 6 1/4s, 4/15/17 Prerefunded A- 27,469
65,000 Ser. D, 6s, 2/15/25 A 66,219
50,000 Ser. D, 6s, 2/15/25 Prerefunded A- 53,250
1,000,000 Ser. F, 5 7/8s, 8/1/24 A 1,012,500
1,155,000 Ser. F, 5 3/4s, 2/1/19 A 1,166,550
2,000,000 NY City, G.O. Bonds IFB, AMBAC, 7.57s,
9/1/11 (SEG) Aaa 2,145,000
1,000,000 NY City, Indl. Dev. Agcy. Rev. Bonds
(Terminal One Group), 6s, 1/1/15 A 1,018,750
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
(American Airlines, Inc.)
1,525,000 6.9s, 8/1/24 Baa 1,578,375
1,500,000 5.4s, 7/1/20 Baa 1,342,500
1,500,000 NY City, Muni. Wtr. & Swr. Fin. Auth. Rev. Bonds,
Ser. A, FGIC, 4 3/4s, 6/15/31 Aaa 1,282,500
NY State Dorm. Auth. Rev. Bonds
1,500,000 (State U. Edl. Fac.), Ser. A, 7 1/2s, 5/15/13 A 1,818,750
1,000,000 (Mnt. Sinai Hlth.), Ser. A, 6 1/2s, 7/1/25 BBB+ 1,036,250
2,000,000 (Mental Hlth. Svcs. Fac.), Ser. A, 5 3/4s, 2/15/27 A 2,005,000
1,500,000 (Dept. of Hlth.), 5 1/2s, 7/1/25 Baa1 1,451,250
1,190,000 (City U. Syst. Construction), Ser. 1, 5 1/4s, 7/1/17 A 1,148,350
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 A 2,019,820
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 1,097,500
1,600,000 NY State Env. Fac. Corp. Poll. Control Rev. Bonds
(State Wtr. Revolving Fund), Ser. A, 7 1/2s,
6/15/12 AAA 1,636,800
2,000,000 NY State Hsg. Fin. Agcy. Svcs. Contract Oblig. Rev.
Bonds, Ser. A, 5 7/8s, 9/15/14 A 2,040,000
NY State Med. Care Fac. Fin. Agcy. Rev. Bonds
360,000 (Mental Hlth. Svcs. Fac.), Ser. D, 7.4s, 2/15/18 A 378,000
940,000 (Mental Hlth. Svcs. Fac.), Ser. D, 7.4s, 2/15/18
Prerefunded A 992,875
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 84,700
1,800,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. D,
FHA, 6.6s, 2/15/31 AAA 1,917,000
1,800,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C,
FHA Insd., 6 3/8s, 8/15/29 AAA 1,869,750
1,075,000 NY State Urban Dev. Corp. Rev. Bonds,
7 1/2s, 4/1/20 Aaa 1,110,344
1,000,000 Onondaga Cnty., Indl. Dev. Agcy. Rev. Bonds
(Bristol-Meyers Squibb Co.), 5 3/4s, 3/1/24 Aaa 1,007,500
1,400,000 Port Auth. NY & NJ Cons. Rev. IFB, 8.988s,
8/1/26 (acquired 7/19/93, cost 1,687,700) (RES) AA- 1,471,204
1,000,000 Port Auth. NY & NJ 144A FRB, Ser. N18,
8 3/4s, 12/1/17 Aaa 1,112,500
-------------
42,191,074
Puerto Rico (8.7%)
-------------------------------------------------------------------------------------------------------------------
1,500,000 PR Elec. Pwr. Auth. IFB, FSA, 7.589s, 7/1/23 Aaa 1,618,125
982,322 PR Hsg. Fin. Corp. Rev. Bonds (Bayamon
Hsg. Dev.), FHA Insd., 7 1/2s, 7/1/21 BBB+/P 1,086,694
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
-------------
4,150,013
-------------------------------------------------------------------------------------------------------------------
Total Investments (cost $46,333,514) (b) $ 46,341,087
-------------------------------------------------------------------------------------------------------------------
(a) Percentages indicated are based on net assets of $47,601,867.
(RAT) The Moody's or Standard & Poor's ratings indicated are believed to
be the most recent ratings available at October 31, 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 October 31, 2000. Securities rated by Putnam are indicated
by "/P" and are not publicly rated.
(b) The aggregate identified cost on a tax basis is $46,406,803,
resulting in gross unrealized appreciation and depreciation of
$1,095,291 and $1,161,007, respectively, or net unrealized depreciation
of $65,716.
(RES) Restricted, excluding 144A securities, as to public resale. The
total market value of restricted securities held at October 31, 2000 was
$1,471,204 or 3.1% of net assets.
(SEG) A portion of this security was pledged and segregated with the
custodian to cover margin requirements for futures contracts at October
31, 2000.
The rates shown on FRB and IFB are the current interest rates
shown at October 31, 2000 which are subject to change based on the terms
of the security.
The fund had the following industry group concentrations greater
than 10% at October 31, 2000 (as a percentage of net assets):
Health care 29.7%
Education 15.3
Transportation 14.8
The fund had the following insurance concentration greater than
10% at October 31, 2000 (as a percentage of net assets):
FHA Insd. 10.5%
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Futures Contracts Outstanding at October 31, 2000 (Unaudited)
Aggregate Face Expiration Unrealized
Total Value Value Date Appreciation
------------------------------------------------------------------------------
Muni Bond Index
(Long) $4,679,438 $4,658,534 Dec-00 $20,904
------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000 (Unaudited)
<S> <C>
Assets
-------------------------------------------------------------------------------------------
Investments in securities, at value
(identified cost $46,333,514) (Note 1) $46,341,087
-------------------------------------------------------------------------------------------
Cash 797,645
-------------------------------------------------------------------------------------------
Interest receivable 792,423
-------------------------------------------------------------------------------------------
Total assets 47,931,155
Liabilities
-------------------------------------------------------------------------------------------
Payable for variation margin 16,156
-------------------------------------------------------------------------------------------
Distributions payable to shareholders 192,154
-------------------------------------------------------------------------------------------
Payable for compensation of Manager (Note 2) 82,141
-------------------------------------------------------------------------------------------
Payable for compensation of Trustees (Note 2) 15,967
-------------------------------------------------------------------------------------------
Payable for administrative services (Note 2) 1,263
-------------------------------------------------------------------------------------------
Other accrued expenses 21,607
-------------------------------------------------------------------------------------------
Total liabilities 329,288
-------------------------------------------------------------------------------------------
Net assets $47,601,867
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
-------------------------------------------------------------------------------------------
Distributions in excess of net investment income (Note 1) (101,542)
-------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (Note 1) (1,835,444)
-------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 28,477
-------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to capital shares outstanding $47,601,867
Net assets available to:
-------------------------------------------------------------------------------------------
Series A remarketed preferred shares $10,000,000
-------------------------------------------------------------------------------------------
Cumulative undeclared dividends on remarketed preferred shares 13,479
-------------------------------------------------------------------------------------------
Net assets allocated to remarketed preferred shares --
liquidation preference $10,013,479
-------------------------------------------------------------------------------------------
Net assets available to common shares $37,588,388
-------------------------------------------------------------------------------------------
Net asset value per common share
($37,588,388 divided by 2,847,092 shares) $13.20
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six months ended October 31, 2000 (Unaudited)
<S> <C>
Tax exempt interest income: $1,465,905
-------------------------------------------------------------------------------------------
Expenses:
-------------------------------------------------------------------------------------------
Compensation of Manager (Note 2) 168,886
-------------------------------------------------------------------------------------------
Investor servicing and custodian fees (Note 2) 21,490
-------------------------------------------------------------------------------------------
Compensation of Trustees (Note 2) 8,692
-------------------------------------------------------------------------------------------
Administrative services (Note 2) 1,886
-------------------------------------------------------------------------------------------
Auditing 25,803
-------------------------------------------------------------------------------------------
Exchange listing fees 16,250
-------------------------------------------------------------------------------------------
Other 23,221
-------------------------------------------------------------------------------------------
Total expenses 266,228
-------------------------------------------------------------------------------------------
Expense reduction (Note 2) (19,500)
-------------------------------------------------------------------------------------------
Net expenses 246,728
-------------------------------------------------------------------------------------------
Net investment income 1,219,177
-------------------------------------------------------------------------------------------
Net realized loss on investments (Notes 1 and 3) (199,620)
-------------------------------------------------------------------------------------------
Net realized gain on futures contracts (Note 1) 387,159
-------------------------------------------------------------------------------------------
Net unrealized appreciation of investments and
futures contracts during the period 1,058,675
-------------------------------------------------------------------------------------------
Net gain on investments 1,246,214
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $2,465,391
-------------------------------------------------------------------------------------------
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
2000* 2000
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets
--------------------------------------------------------------------------------------------------
Operations:
--------------------------------------------------------------------------------------------------
Net investment income $ 1,219,177 $ 2,560,667
--------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 187,539 (521,122)
--------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments 1,058,675 (2,879,218)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 2,465,391 (839,673)
--------------------------------------------------------------------------------------------------
Distributions to remarketed preferred shareholders:
--------------------------------------------------------------------------------------------------
From net investment income (214,409) (322,116)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations
applicable to common shareholders (excluding cumulative
undeclared dividends on remarketed preferred shares of
$13,479 and $24,986, respectively) 2,250,982 (1,161,789)
--------------------------------------------------------------------------------------------------
Distributions to common shareholders:
--------------------------------------------------------------------------------------------------
From net investment income (1,152,978) (2,305,712)
--------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,098,004 (3,467,501)
Net assets
--------------------------------------------------------------------------------------------------
Beginning of period 46,503,863 49,971,364
--------------------------------------------------------------------------------------------------
End of period (including distributions in excess of
net investment income and undistributed net investment
income of $101,542 and $46,668, respectively) $47,601,867 $46,503,863
--------------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------------------------------------
2000 2000 1999 1998 1997 1996
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period (common shares) $12.81 $14.03 $13.96 $13.49 $13.54 $13.50
--------------------------------------------------------------------------------------------------------------
Investment operations
--------------------------------------------------------------------------------------------------------------
Net investment income .43 .90 .91 .95 .95 .98
--------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments .44 (1.19) .08 .45 (.07) .07
--------------------------------------------------------------------------------------------------------------
Total from investment operations .87 (.29) .99 1.40 .88 1.05
--------------------------------------------------------------------------------------------------------------
Less distributions from:
--------------------------------------------------------------------------------------------------------------
Net investment income:
--------------------------------------------------------------------------------------------------------------
To preferred shareholders (.07) (.12) (.11) (.12) (.12) (.13)
--------------------------------------------------------------------------------------------------------------
To common shareholders (.41) (.81) (.81) (.81) (.81) (.88)
--------------------------------------------------------------------------------------------------------------
Total distributions (.48) (.93) (.92) (.93) (.93) (1.01)
--------------------------------------------------------------------------------------------------------------
Net asset value, end of period
(common shares) $13.20 $12.81 $14.03 $13.96 $13.49 $13.54
--------------------------------------------------------------------------------------------------------------
Market value, end of period
(common shares) $12.313 $12.000 $13.875 $13.625 $12.875 $13.000
--------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
--------------------------------------------------------------------------------------------------------------
Total return at market
value (common shares)(%)(a) 5.91* (7.75) 7.82 12.12 5.34 1.78
--------------------------------------------------------------------------------------------------------------
Net assets, end of period
(total fund)(in thousands) $47,602 $46,504 $49,971 $49,766 $48,434 $48,583
--------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets (%)(b)(c) .72* 1.44 1.32 1.31 1.44 1.34
--------------------------------------------------------------------------------------------------------------
Ratio of net investment income
to average net assets (%)(b) 2.74* 5.96 5.66 5.90 6.10 6.19
--------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 9.80* 3.32 24.04 18.22 49.71 84.87
--------------------------------------------------------------------------------------------------------------
* 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) Includes amounts paid through expense offset arrangements (Note 2).
</TABLE>
NOTES TO FINANCIAL STATEMENTS
October 31, 2000 (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 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
taxable 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 October 31, 2000 was 4.1%. 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 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, 2000, fund expenses were reduced by
$19,500 under expense offset arrangements with PFTC and brokerage
service arrangements (only if applicable to your fund). 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 $405
has been allocated to the fund, and an additional fee for each Trustees
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, 2000, cost of purchases and
proceeds from sales of investment securities other than short-term
investments aggregated $4,519,040 and $5,638,690, 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, 2000, no such
restrictions have been placed on the fund.
RESULTS OF OCTOBER 5, 2000 SHAREHOLDER MEETING
(Unaudited)
An annual meeting of shareholders of the fund was held on October 5,
2000. At the meeting, each of the nominees for Trustees was elected, as
follows:
Common Shares
Votes
Votes for withheld
Jameson Adkins Baxter 2,587,384 19,987
Hans H. Estin 2,587,034 20,337
Ronald J. Jackson 2,587,384 19,987
Paul L. Joskow 2,587,384 19,987
Elizabeth T. Kennan 2,587,384 19,987
Lawrence J. Lasser 2,587,384 19,987
John H. Mullin III 2,587,384 19,987
George Putnam, III 2,587,384 19,987
A.J.C. Smith 2,587,384 19,987
W. Thomas Stephens 2,587,384 19,987
W. Nicholas Thorndike 2,587,384 19,987
Preferred Shares
Votes
Votes for withheld
J.A. Hill 200 0
R.E. Patterson 200 0
A proposal to ratify the selection of PricewaterhouseCoopers LLP as the
independent auditors of your fund was approved as follows:
Common Shares -- 2,583,487 votes for, and 6,392 votes against, with
17,492 abstentions.
All tabulations are rounded to nearest whole number.
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New features will be added to the site regularly. So be sure to bookmark
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FUND INFORMATION
WEB SITE
www.putnaminvestments.com
INVESTMENT MANAGER
Putnam Investment Management, Inc.
One Post Office Square
Boston, MA 02109
MARKETING SERVICES
Putnam Retail Management, Inc.
One Post Office Square
Boston, MA 02109
CUSTODIAN
Putnam Fiduciary Trust Company
LEGAL COUNSEL
Ropes & Gray
TRUSTEES
John A. Hill, 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, III
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
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.putnaminvestments.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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