<PAGE> 1
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................... 1
Performance Results.............................. 5
Portfolio of Investments......................... 6
Statement of Assets and Liabilities.............. 9
Statement of Operations.......................... 10
Statement of Changes in Net Assets............... 11
Financial Highlights............................. 12
Notes to Financial Statements.................... 13
</TABLE>
VNV SAR 6/97
<PAGE> 2
LETTER TO SHAREHOLDERS
June 5, 1997
Dear Shareholder,
As mentioned in your previous
report, VK/AC Holding, Inc., the parent
company of Van Kampen American Capital,
Inc., was acquired by Morgan Stanley
Group Inc., a world leader in asset
management. More recently, on February [PHOTO]
5, 1997, Morgan Stanley Group Inc. and
Dean Witter, Discover & Co. announced
their agreement to merge, and you
received a proxy in April. The merger DENNIS J. MCDONNELL AND DON G. POWELL
was completed on May 31, 1997, creating
the combined company of Morgan Stanley, Dean Witter, Discover & Co. This
preeminent global financial services firm boasts a market capitalization of $21
billion and leading market positions in securities, asset management, and credit
services. As the financial industry continues to witness unprecedented
consolidations and new partnerships, we believe that those firms that are
leaders in all facets of their business will be able to offer investors the
greatest opportunities and services as we move into the next century. We are
confident that this merger will provide investors with those benefits.
ECONOMIC REVIEW
Bond prices were volatile during the six months ended April 30, 1997. Prices
initially rose as the economy slowed, erasing fears of an interest rate hike by
the Federal Reserve Board. The November election of a Democratic president and
Republican Congress was positive for bonds because the split government was
viewed as a restraint on spending increases that could potentially swell the
budget deficit. In addition, support diminished for radical tax reform that
could threaten the tax-free status of municipal bonds.
By the beginning of 1997, the situation changed. Bond prices began to fall
as the economy picked up speed, culminating in a 5.60 percent annualized growth
rate in the first quarter. This strength, coupled with warnings by Fed Chairman
Alan Greenspan that tighter monetary policy might be appropriate, reignited
fears of a rate hike. On March 25, the Fed raised short-term rates by a modest
0.25 percent, which sent the 30-year Treasury bond yield above 7.00 percent for
the first time in six months. By the end of April, the 30-year Treasury bond
yield slipped back below 7.00 percent as the market turned its attention to
positive news about inflation, and bonds recovered some of their earlier losses.
Throughout most of the six months ended April 30, municipal bonds generally
outperformed Treasuries. Between October 31 and April 30, yields on long-term
municipal revenue bonds rose 21 basis points, while yields on 30-year Treasury
bonds jumped 31 basis points. Because bond yields move in the opposite direction
of prices, the smaller
Continued on page two
1
<PAGE> 3
increase in municipal yields meant that municipal bond prices did not fall as
sharply as Treasury bond prices did. A relatively stable supply of new issues,
combined with an increase in retail demand, contributed to the improved
performance of municipal bonds.
The New York state economy experienced steady growth, although its pace
lagged the national growth rate. The state had some success in controlling
spending, but this did not eliminate fears of future budget deficits, due in
part to tax cuts. The state's budget process, which has resulted in late budget
agreements for 13 consecutive years, remains dysfunctional.
FUND STRATEGY
In managing the Trust, we maintained a "barbell" approach to credit quality,
which means we invested in both the highest and lowest levels of the investment
grade rating spectrum. Investing at both ends of the rating spectrum helps to
balance the portfolio's volatility to interest rate movements. AAA-rated
securities have tended to perform better when interest rates are declining and
provide the potential for safety of principal. They are also extremely liquid
because most are insured bonds. BBB-rated and non-rated securities have tended
to perform better when rates are rising, and they have the potential to provide
additional income. As of April 30, approximately 36 percent of the Trust's long-
term investments were rated AAA, the highest credit rating assigned to bonds by
the Standard & Poor's Ratings Group, and approximately 44 percent were rated
BBB, the lowest rating Standard & Poor's assigns to bonds in the
investment-grade category. In addition, approximately 9 percent of long-term
investments were rated AA, and approximately 11 percent were rated A.
Portfolio Composition by Credit Quality
As a Precentage of Long-Terms Investments
as of April 30, 1997
<TABLE>
<S> <C>
AAA............................ 36.4%
AA............................. 8.5%
A.............................. 10.9%
BBB............................ 44.2%
</TABLE>
Based upon credit quality ratings issued by Standard & Poor's. For securities
not rated by Standard & Poors, the Moody's rating is used.
Assets were balanced between premium securities and discount bonds. (A bond
that is priced at its face value is selling at par. If it is priced below par,
it is selling at a discount. Conversely, a bond priced above par is selling at a
premium.) When interest rates are rising, as they were throughout most of the
period, premium bonds tend to be less volatile than discount bonds.
Portfolio turnover was minimal due to limited opportunities to purchase
bonds that had the potential for price appreciation. Activity was also limited
by the tight spreads between yields of AAA-rated bonds and lower-rated bonds.
These spreads remained
Continued on page three
2
<PAGE> 4
narrow due to the increasing number of insured bonds in the municipal market. As
a result, there was often not enough yield reward to justify the credit risk of
purchasing additional lower-rated securities.
We were able to enhance the yield and call protection of the Trust by
selling several low-yielding bonds that faced calls in the near term, and
purchasing high-yielding securities with longer call protection. In other words,
we hope to lessen the concentration of bonds that can be called at any one time.
When buying new securities for the portfolio, we use a "bottom-up" approach,
attempting to identify those bonds that we believe will outperform within a
particular sector and that can be purchased at an attractive price. In addition,
we seek to maintain a well-diversified selection of securities, especially among
the lower-rated bonds, in order to minimize credit risk.
We shortened the Trust's duration during this period of rising interest
rates in order to potentially reduce its volatility. Duration, which is
expressed in years, is a measure of a portfolio's sensitivity to interest rate
movements. Portfolios with long durations have tended to perform better when
rates are falling, and portfolios with short durations have tended to perform
better when rates are rising. At the end of the period, the Trust's duration
stood at 8.07 years compared to 8.16 years for the Lehman Brothers New York
Municipal Bond Index benchmark.
Six-month Dividend History
For the Perod Ended Apri 30, 1997
<TABLE>
Distribution per Share
----------------------
<S> <C>
Nov 1996............... $.0550
Dec 1996............... $.0600
Jan 1997............... $.0600
Feb 1997............... $.0600
Mar 1997............... $.0600
Apr 1997............... $.0600
</TABLE>
The dividend history represents past perfromance of the Trust and does not
predict the Trust's future distributions.
PERFORMANCE SUMMARY
We are pleased to report that the Van Kampen American Capital New York Value
Municipal Income Trust continued its positive performance over the first half of
its fiscal year. For the six-month period ended April 30, 1997, the Trust
generated a total return at market price of 5.20 percent(1). The Trust offered a
tax-exempt distribution rate of 6.06 percent(3), based on the closing common
stock price of $11.875 per share on April 30, 1997. Because income from the
Trust is exempt from federal and New York state income taxes, this distribution
rate represents a yield equivalent to a taxable investment
Continued on page four
3
<PAGE> 5
earning 10.20 percent(4) (for investors in the combined federal and state income
tax bracket of 40.6 percent). At the end of the reporting period, the closing
share price of the Trust traded at a 17 percent discount to its net asset value
of $14.30.
The earnings of the Trust exceeded the distribution rate and, as a result,
the Board of Trustees approved an increase in its monthly dividend from $0.055
to $0.060 per common share, payable December 31, 1996.
Top Five Portfolio Industry Holdings by Sector as of April 30, 1997 *
General Purpose.................................. 20.0%
Health Care...................................... 14.3%
Higher Education................................. 12.4%
Public Building.................................. 9.4%
Transportation................................... 8.2%
*As a Percentage of Long-Term Investments
MUNICIPAL MARKET OUTLOOK
We continue to see signs of a strong economy, although we do not expect the
unusually brisk growth rate of the first quarter to be sustained throughout the
year. As a result, we believe the Fed will monitor the economy closely and take
aggressive action to control growth if inflation picks up or the high growth
rate is sustained. However, if growth slows, we believe the Fed will leave rates
unchanged. Given this outlook, we expect that yields on the 30-year Treasury
bond will range between 6.75 and 7.40 percent for the remainder of the year,
with higher levels occurring early and lower yields dominating the second half
of 1997. Although short-term interest rates have risen, this has not had a
significant impact on the leveraged structure of the Trust.
We believe the Trust is positioned to perform well in the coming months, and
we do not anticipate major structural changes in the portfolio. In light of our
expectations for interest rates, we will continue to maintain a slightly
defensive posture by keeping a relatively short duration for the portfolio and
adjusting the duration when prudent. We will also continue to seek a balance
between the Trust's total return and its dividend income, as well as to add
value through security selection. Thank you for your continued confidence in Van
Kampen American Capital and your Trust's team of managers.
Sincerely,
[SIG]
Don G. Powell
Chairman
Van Kampen American Capital
Investment Advisory Corp.
[SIG]
Dennis J. McDonnell
President
Van Kampen American Capital
Investment Advisory Corp.
Please see footnotes on page five
4
<PAGE> 6
PERFORMANCE RESULTS FOR THE PERIOD ENDED APRIL 30, 1997
VAN KAMPEN AMERICAN CAPITAL NEW YORK VALUE MUNICIPAL INCOME TRUST
(NYSE TICKER SYMBOL--VNV)
<TABLE>
<CAPTION>
COMMON SHARE TOTAL RETURNS
<S> <C>
Six-month total return based on market price(1)........... 5.20%
Six-month total return based on NAV(2).................... 1.38%
DISTRIBUTION RATES
Distribution rate as a % of closing common stock
price(3).................................................. 6.06%
Taxable-equivalent distribution rate as a % of closing
common stock price(4)..................................... 10.20%
SHARE VALUATIONS
Net asset value........................................... $ 14.30
Closing common stock price................................ $11.875
Six-month high common stock price (03/07/97).............. $12.250
Six-month low common stock price (04/04/97)............... $11.375
Preferred share rate(5)................................... 3.90%
</TABLE>
(1)Total return based on market price assumes an investment at the market price
at the beginning of the period indicated, reinvestment of all distributions for
the period in accordance with the Trust's dividend reinvestment plan, and sale
of all shares at the closing common stock price at the end of the period
indicated.
(2)Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.
(3)Distribution rate represents the monthly annualized distributions of the
Trust at the end of the period and not the earnings of the Trust.
(4)The taxable-equivalent distribution rate is calculated assuming a 40.6%
combined federal and state income tax bracket which takes into consideration the
deductibility of individual state taxes paid.
(5)See "Notes to Financial Statements" footnote #4, for more information
concerning Preferred Share reset periods.
A portion of the interest income may be taxable for those investors subject to
the federal alternative minimum tax (AMT).
Past performance does not guarantee future results. Investment return, stock
price and net asset value will fluctuate with market conditions. Trust shares,
when sold, may be worth more or less than their original cost.
Market forecasts provided in this report may not necessarily come to pass.
5
<PAGE> 7
PORTFOLIO OF INVESTMENTS
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS
NEW YORK 88.5%
$1,000 Broome Cnty, NY Ctfs Partn Pub Safety Fac (MBIA
Insd)........................................... 5.250% 04/01/15 $ 948,760
465 Erie Cnty, NY Indl Dev Agy Civic Fac Rev Mercy
Hosp Buffalo Proj Ser A......................... 5.900 06/01/03 475,351
1,300 Erie Cnty, NY Indl Dev Agy Civic Fac Rev Mercy
Hosp Buffalo Proj Ser A......................... 6.250 06/01/10 1,307,852
985 Groton, NY Cmnty Hlthcare Cent Inc Hlthcare Fac
Rev Groton Cmnty Ser A (FHA Gtd)................ 7.450 07/15/21 1,106,273
2,000 Islip, NY Res Recovery Agy (AMBAC Insd)......... 7.250 07/01/11 2,326,480
1,675 Metropolitan Tran Auth NY Svc Contract Commuter
Fac Ser P....................................... 5.750 07/01/15 1,611,869
1,100 Montgomery, Otsego & Schoharie Cntys, NY Solid
Waste Mgmt Auth Solid Waste Sys Rev Ser B (MBIA
Insd)........................................... 5.250 01/01/14 1,054,515
2,000 Nassau Cnty, NY Genl Impt Ser Q (FGIC Insd)..... 5.200 08/01/14 1,905,040
2,000 New York City Indl Dev Agy Spl Fac Rev Terminal
One Group Assn Proj............................. 6.000 01/01/15 1,985,820
1,230 New York City Indl Dev Civic, YMCA Greater New
York Proj....................................... 5.850 08/01/08 1,231,882
1,500 New York City Indl Dev Civic, YMCA Greater New
York Proj....................................... 5.800 08/01/16 1,457,025
190 New York City Ser A............................. 7.750 08/15/06 210,262
2,810 New York City Ser A (Prerefunded @ 08/15/01).... 7.750 08/15/06 3,175,581
4,000 New York City Ser A Rfdg........................ 7.000 08/01/04 4,334,520
5,000 New York City Ser B (Embedded Cap) (b).......... 6.600 10/01/16 5,176,900
2,750 New York City Ser D............................. 6.500 02/15/06 2,907,960
1,500 New York City Ser E Rfdg (MBIA Insd)............ 6.200 08/01/08 1,611,855
1,000 New York St Dorm Auth Rev Mental Hlth Svcs Fac
Ser A........................................... 6.000 02/15/07 1,028,220
2,000 New York St Dorm Auth Rev City Univ Sys 3rd Genl
Res 2 Rfdg...................................... 6.000 07/01/05 2,068,900
1,000 New York St Dorm Auth Rev City Univ Sys Ser F... 5.000 07/01/20 858,330
2,500 New York St Dorm Auth Rev Cons City Univ Sys 2nd
Genl Res Ser A.................................. 5.750 07/01/13 2,477,725
1,500 New York St Dorm Auth Rev Cons City Univ Sys Ser
A............................................... 5.625 07/01/16 1,453,725
1,090 New York St Dorm Auth Rev Cons City Univ Sys Ser
A Rfdg.......................................... 6.000 07/01/06 1,125,567
2,500 New York St Dorm Auth Rev Court Fac Lease Ser
A............................................... 5.625 05/15/13 2,414,175
1,250 New York St Dorm Auth Rev Highland Cmnty Dev Ser
B (Mandatory Tender @ 07/01/01)................. 5.500 07/01/23 1,272,700
1,425 New York St Dorm Auth Rev Insd John T Mather Mem
Hosp Rfdg (Connie Lee Insd)..................... 6.500 07/01/08 1,553,806
1,000 New York St Dorm Auth Rev Insd John T Mather Mem
Hosp Rfdg (Connie Lee Insd)..................... 6.500 07/01/10 1,082,960
</TABLE>
See Notes to Financial Statements
6
<PAGE> 8
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$1,720 New York St Dorm Auth Rev Insd John T Mather Mem
Hosp Rfdg (Connie Lee Insd)..................... 6.500% 07/01/11 $ 1,857,583
2,000 New York St Dorm Auth Rev March of Dimes Birth
Defects Fndtn (AMBAC Insd)...................... 5.600 07/01/12 2,004,760
1,425 New York St Dorm Auth Rev Upstate Cmnty Colleges
Ser A........................................... 5.750 07/01/09 1,412,588
3,000 New York St Energy Resh & Dev Auth Gas Fac Rev
Brooklyn Union Gas Ser C (MBIA Insd)............ 5.600 06/01/25 2,847,570
1,000 New York St Energy Resh & Dev Auth St Svc
Contract Rev.................................... 6.000 04/01/07 1,019,400
2,000 New York St Environmental Fac Corp St Wtr
Pollutn Ctl Rev Ser E........................... 6.600 06/15/09 2,176,240
3,500 New York St Med Care Fac Fin Agy Rev
Presbyterian Hosp Mtg Ser A Rfdg (FHA Gtd)...... 5.250 08/15/14 3,322,410
3,000 New York St Med Care Fac Fin Agy Rev Saint
Peter's Hosp Proj Ser A (AMBAC Insd)............ 5.375 11/01/20 2,810,160
2,000 New York St Mtg Agy Rev Homeowner Mtg Ser 42
(FHA Gtd)....................................... 6.400 10/01/20 2,047,600
1,995 New York St Mtg Agy Rev Homeowner Mtg Ser 52.... 6.100 04/01/26 1,978,801
2,500 New York St Mtg Agy Rev Homeowner Mtg Ser 58.... 6.400 04/01/27 2,548,525
1,000 New York St Thruway Auth Svc Contract Rev Loc
Hwy & Brdg...................................... 5.750 04/01/09 996,540
3,200 New York St Urban Dev Corp Rev Correctional Cap
Fac Rfdg........................................ 5.625 01/01/07 3,200,704
2,150 New York St Urban Dev Corp Rev Correctional Cap
Fac Ser A Rfdg.................................. 5.500 01/01/14 2,050,562
1,000 New York St Urban Dev Corp Rev Proj Pine
Barrens......................................... 5.375 04/01/17 924,040
1,000 New York St Urban Dev Corp Rev St Fac Rfdg...... 5.500 04/01/07 990,920
1,060 Niagara Falls, NY Wtr Treatment Plant (MBIA
Insd)........................................... 7.250 11/01/10 1,229,314
650 Niagara Falls, NY Wtr Treatment Plant (MBIA
Insd)........................................... 7.000 11/01/14 719,413
2,000 Niagara, NY Frontier Tran Auth Arpt Greater
Buffalo Intl Arpt Rev Ser B (AMBAC Insd)........ 5.750 04/01/04 2,073,720
2,000 Port Auth NY & NJ Cons 97th Ser (FGIC Insd)..... 6.650 01/15/23 2,131,860
1,575 Rockland Cnty, NY Solid Waste Mgmt Auth Ser B
(AMBAC Insd).................................... 5.625 12/15/14 1,546,414
1,720 Westchester Cnty, NY Indl Dev Agy Arpt Fac Rev
Westchester Arpt Assn Ser A..................... 5.950 08/01/24 1,721,221
------------
89,774,398
------------
</TABLE>
See Notes to Financial Statements
7
<PAGE> 9
PORTFOLIO OF INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GUAM 4.2%
$2,500 Guam Arpt Auth Rev Ser B........................ 6.400% 10/01/05 $ 2,551,125
1,000 Guam Govt Ser A................................. 6.000 09/01/06 1,005,240
650 Guam Pwr Auth Rev Ser A......................... 6.625 10/01/14 675,785
------------
4,232,150
------------
PUERTO RICO 3.2%
3,000 Puerto Rico Comwlth Hwy & Tran Ser Y (Embedded
Cap) (FSA Insd) (b)............................. 5.730 07/01/21 3,228,780
------------
TOTAL LONG-TERM INVESTMENTS 95.9%
(Cost $94,056,791)(a)..................................................... 97,235,328
SHORT-TERM INVESTMENTS 2.1%
(Cost $2,100,000)(a)...................................................... 2,100,000
OTHER ASSETS IN EXCESS OF LIABILITIES 2.0%................................. 2,019,172
------------
NET ASSETS 100.0%.......................................................... 101,354,500
============
</TABLE>
(a) At April 30, 1997, cost of long- and short-term investments for federal
income tax purposes is $96,156,791; the aggregate gross unrealized
appreciation is $3,330,578 and the aggregate gross unrealized depreciation
is $152,041, resulting in net unrealized appreciation of $3,178,537.
(b) An Embedded Cap security includes a cap strike level such that the coupon
payment may be supplemented by cap payments if the floating rate index upon
which the cap is based rises above the strike level. The price of these
securities may be more volatile than the price of a comparable fixed rate
security. The Trust invests in these instruments as a hedge against a rise
in the short-term interest rates which it pays on its preferred shares.
These derivative instruments are marked to market each day with the change
in value reflected in the unrealized appreciation/depreciation on
securities. Upon disposition, a realized gain or loss is recognized
accordingly.
See Notes to Financial Statements
8
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Long-Term Investments, at Market Value (Cost $94,056,791)
(Note 1).................................................. $ 97,235,328
Short-Term Investments (Cost $2,100,000)(a) (Note 1)........ 2,100,000
Cash........................................................ 694,915
Receivables:
Interest.................................................. 1,546,001
Investments Sold.......................................... 65,000
Unamortized Organizational Costs (Note 1)................... 4,985
Other....................................................... 1,507
-----------
Total Assets.......................................... 101,647,736
-----------
LIABILITIES:
Payables:
Income Distributions -- Common and Preferred Shares....... 57,115
Investment Advisory Fee (Note 2).......................... 53,811
Administrative Fee (Note 2)............................... 16,557
Affiliates (Note 2)....................................... 10,457
Accrued Expenses............................................ 95,541
Deferred Compensation and Retirement Plans (Note 2)......... 59,755
-----------
Total Liabilities..................................... 293,236
-----------
NET ASSETS.................................................. $101,354,500
============
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000
shares, 800 issued with liquidation preference of $50,000
per share) (Note 4)....................................... $ 40,000,000
-----------
Common Shares ($.01 par value with an unlimited number of
shares authorized, 4,291,172 shares issued and
outstanding).............................................. 42,912
Paid in Surplus............................................. 62,940,596
Net Unrealized Appreciation on Investments.................. 3,178,537
Accumulated Undistributed Net Investment Income............. 574,096
Accumulated Net Realized Loss on Investments................ (5,381,641)
-----------
Net Assets Applicable to Common Shares................ 61,354,500
-----------
NET ASSETS.................................................. $101,354,500
------------
NET ASSET VALUE PER COMMON SHARE ($61,354,500 divided
by 4,291,172 shares outstanding).......................... $ 14.30
============
</TABLE>
See Notes to Financial Statements
9
<PAGE> 11
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................... $ 2,916,359
-----------
EXPENSES:
Investment Advisory Fee (Note 2)............................ 328,943
Administrative Fee (Note 2)................................. 101,219
Preferred Share Maintenance (Note 4)........................ 60,353
Trustees Fees and Expenses (Note 2)......................... 12,809
Custody..................................................... 11,312
Legal (Note 2).............................................. 5,792
Amortization of Organizational Costs (Note 1)............... 2,478
Other....................................................... 72,190
-----------
Total Expenses.......................................... 595,096
-----------
NET INVESTMENT INCOME....................................... $ 2,321,263
---------
REALIZED AND UNREALIZED GAIN/LOSS ON INVESTMENTS:
Net Realized Gain on Investments............................ $ 118,417
-----------
Unrealized Appreciation/Depreciation on Investments:
Beginning of the Period................................... 4,094,487
End of the Period......................................... 3,178,537
-----------
Net Unrealized Depreciation on Investments During the
Period.................................................... (915,950)
-----------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS............. $ (797,533)
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $ 1,523,730
===========
</TABLE>
See Notes to Financial Statements
10
<PAGE> 12
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 1997 and
the Year Ended October 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1997 October 31, 1996
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income................................... $ 2,321,263 $ 4,684,823
Net Realized Gain on Investments........................ 118,417 28,285
Net Unrealized Appreciation/Depreciation on Investments
During the Period..................................... (915,950) 714,143
------------ ------------
Change in Net Assets from Operations.................... 1,523,730 5,427,251
------------ ------------
Distributions from Net Investment Income:
Common Shares......................................... (1,523,285) (2,832,052)
Preferred Shares...................................... (658,158) (1,387,977)
------------ ------------
Total Distributions..................................... (2,181,443) (4,220,029)
------------ ------------
NET CHANGE IN NET ASSETS FROM INVESTMENT ACTIVITIES..... (657,713) 1,207,222
NET ASSETS:
Beginning of the Period................................. 102,012,213 100,804,991
------------ ------------
End of the Period (Including accumulated undistributed
net investment income of $574,096 and $434,276,
respectively)......................................... $101,354,500 $102,012,213
============ ============
</TABLE>
See Notes to Financial Statements
11
<PAGE> 13
FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one common share of
the Trust outstanding throughout the periods indicated. (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
April 30, 1993
(Commencement
Six Months Year Ended October 31, of Investment
Ended ----------------------------- Operations) to
April 30, 1997 1996 1995 1994 October 31, 1993
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of the Period (a)....... $14.451 $14.170 $12.234 $15.612 $14.697
------- ------- ------- ------- -------
Net Investment Income............. .541 1.091 1.071 1.041 .375
Net Realized and Unrealized
Gain/Loss on Investments........ (.186) .173 1.946 (3.182) .888
------- ------- ------- ------- -------
Total from Investment Operations... .355 1.264 3.017 (2.141) 1.263
------- ------- ------- ------- -------
Less:
Distributions from and in Excess
of Net Investment Income:
Paid to Common Shareholders..... .355 .660 .720 .839 .286
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders........ .153 .323 .361 .228 .062
Distributions from Net Realized
Gain on Investments (Note 1):
Paid to Common Shareholders..... -0- -0- -0- .142 -0-
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders........ -0- -0- -0- .028 -0-
------- ------- ------- ------- -------
Total Distributions................ .508 .983 1.081 1.237 .348
------- ------- ------- ------- -------
Net Asset Value, End of the
Period............................ $14.298 $14.451 $14.170 $12.234 $15.612
------- ------- ------- ------- -------
Market Price Per Share at End of
the Period........................ $11.875 $11.625 $11.375 $10.250 $14.875
Total Investment Return at
Market Price (b).................. 5.20%* 8.09% 18.15% (25.74%) 1.09%*
Total Return at Net Asset Value
(c)............................... 1.38%* 6.80% 22.35% (15.99%) 6.01%*
Net Assets at End of the Period (In
millions)......................... $101.4 $ 102.0 $100.8 $92.5 $107.0
Ratio of Expenses to Average Net
Assets Applicable to Common
Shares............................ 1.93% 1.95% 2.06% 1.88% 1.56%
Ratio of Expenses to Average Net
Assets............................ 1.18% 1.18% 1.20% 1.13% 1.17%
Ratio of Net Investment Income to
Average Net Assets Applicable to
Common Shares (d)................. 5.40% 5.41% 5.38% 5.82% 4.13%
Portfolio Turnover................. 11%* 51% 77% 91% 43%*
</TABLE>
(a) Net Asset Value at April 30, 1993, is adjusted for common and preferred
share offering costs of $.303 per common share.
(b) Total Investment Return at Market Price reflects the change in market value
of the common shares for the period indicated with reinvestment of dividends
in accordance with the Trust's dividend reinvestment plan.
(c) Total Return at Net Asset Value (NAV) reflects the change in value of the
Trust's assets with reinvestment of dividends based upon NAV.
(d) Net Investment Income is adjusted for the common share equivalent of
distributions paid to preferred shareholders.
* Non-Annualized
See Notes to Financial Statements
12
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Van Kampen American Capital New York Value Municipal Income Trust (the "Trust")
is registered as a non-diversified closed-end management investment company
under the Investment Company Act of 1940, as amended. The Trust's investment
objective is to seek to provide a high level of current income exempt from
federal as well as from New York State and New York City income taxes,
consistent with preservation of capital. The Trust will invest substantially all
of its assets in New York municipal securities rated investment grade at the
time of investment. The Trust commenced investment operations on April 30, 1993.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION--Investments are stated at value using market quotations
or, if such valuations are not available, estimates obtained from yield data
relating to instruments or securities with similar characteristics in accordance
with procedures established in good faith by the Board of Trustees. Short-term
securities with remaining maturities of 60 days or less are valued at amortized
cost.
B. SECURITY TRANSACTIONS--Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
maintain, in a segregated account with its custodian, assets having an aggregate
value at least equal to the amount of the when issued or delayed delivery
purchase commitments until payment is made. At April 30, 1997, there were no
when issued or delayed delivery purchase commitments.
C. INVESTMENT INCOME--Interest income is recorded on an accrual basis. Bond
premium and original issue discount are amortized over the expected life of each
applicable security.
13
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
D. ORGANIZATIONAL COSTS--The Trust has reimbursed Van Kampen American Capital
Distributors, Inc. or its affiliates (collectively "VKAC") for costs incurred in
connection with the Trust's organization in the amount of $25,000. These costs
are being amortized on a straight line basis over the 60 month period ending
April 29, 1998. Van Kampen American Capital Investment Advisory Corp. (the
"Adviser") has agreed that in the event any of the initial shares of the Trust
originally purchased by VKAC are redeemed during the amortization period, the
Trust will be reimbursed for any unamortized organizational costs in the same
proportion as the number of shares redeemed bears to the number of initial
shares held at the time of redemption.
E. FEDERAL INCOME TAXES--It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required.
The Trust intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At October 31, 1996, the Trust had an accumulated capital loss
carryforward for tax purposes of $5,500,058 which will expire between October
31, 2002 and October 31, 2003.
F. DISTRIBUTION OF INCOME AND GAINS--The Trust declares and pays dividends from
net investment income to common shareholders monthly. Net realized gains, if
any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, which are included as ordinary income for tax
purposes.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the Trust's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Trust for an annual fee payable
monthly of .65% of the average net assets of the Trust. In addition, the Trust
will pay a monthly administrative fee to VKAC, the Trust's Administrator, at an
annual rate of .20% of the average net assets of the Trust. The administrative
services provided by the Administrator include record keeping and reporting
responsibilities with respect to the Trust's portfolio and preferred shares and
providing certain services to shareholders.
14
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Certain legal expenses are paid to Skadden, Arps, Slate, Meagher & Flom
(Illinois), counsel to the Trust, of which a trustee of the Trust is an
affiliated person.
For the six months ended April 30, 1997, the Trust recognized expenses of
approximately $21,300 representing VKAC's cost of providing accounting and legal
services to the Trust.
Certain officers and trustees of the Trust are also officers and directors
of VKAC. The Trust does not compensate its officers or trustees who are officers
of VKAC.
The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of VKAC. Under the deferred compensation plan,
trustees may elect to defer all or a portion of their compensation to a later
date. Benefits under the retirement plan are payable for a ten-year period and
are based upon each trustee's years of service to the Trust. The maximum annual
benefit under the plan is equal to the trustees' annual retainer fee, which is
currently $2,500.
At April 30, 1997, VKAC owned 6,700 common shares of the Trust.
3. INVESTMENT TRANSACTIONS
During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $10,467,850 and $12,204,275,
respectively.
4. PREFERRED SHARES
The Trust has outstanding 800 Auction Preferred Shares ("APS"). Dividends are
cumulative and the dividend rate is currently reset every seven days through an
auction process. The rate in effect on April 30, 1997 was 3.90%. During the six
months ended April 30, 1997, the rates ranged from 2.50% to 4.10%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of Preferred Share Maintenance
expense.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $50,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.
15
<PAGE> 17
FUNDS DISTRIBUTED BY VAN KAMPEN AMERICAN CAPITAL
GLOBAL AND
INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund
EQUITY
Growth
Aggressive Growth Fund
Emerging Growth Fund
Enterprise Fund
Growth Fund
Pace Fund
Growth & Income
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund
FIXED INCOME
Corporate Bond Fund
Government Securities Fund
High Income Corporate Bond Fund
High Yield Fund
Limited Maturity Government Fund
Prime Rate Income Trust
Reserve Fund
U.S. Government Fund
U.S. Government Trust for Income
TAX-FREE
California Insured Tax Free Fund
Florida Insured Tax Free Income Fund
High Yield Municipal Fund
Insured Tax Free Income Fund
Intermediate Term Municipal Income Fund
Municipal Income Fund
New Jersey Tax Free Income Fund
New York Tax Free Income Fund
Pennsylvania Tax Free Income Fund
Tax Free High Income Fund
Tax Free Money Fund
MORGAN STANLEY
FUND, INC.
Aggressive Equity Fund
American Value Fund
Asian Growth Fund
Emerging Markets Fund
Global Equity Allocation Fund
Global Fixed Income Fund
High Yield Fund
International Magnum Fund
Latin American Fund
U.S. Real Estate Fund
Worldwide High Income Fund
Ask your investment representative for a prospectus containing more complete
information, including sales charges and expenses. Please read it carefully
before you invest or send money. Or call us weekdays from 7:00 a.m. to 7:00 p.m.
Central time at 1-800-341-2911 for Van Kampen American Capital funds, or
1-800-282-4404 for Morgan Stanley retail funds.
16
<PAGE> 18
VAN KAMPEN AMERICAN CAPITAL NEW YORK VALUE MUNICIPAL INCOME TRUST
BOARD OF TRUSTEES
DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
DENNIS J. MCDONNELL*--Chairman
THEODORE A. MYERS
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN*
OFFICERS
DENNIS J. MCDONNELL*
President
RONALD A. NYBERG*
Vice President and Secretary
EDWARD C. WOOD, III*
Vice President and Chief Financial Officer
CURTIS W. MORELL*
Vice President and Chief Accounting Officer
JOHN L. SULLIVAN*
Treasurer
TANYA M. LODEN*
Controller
PETER W. HEGEL*
Vice President
INVESTMENT ADVISER
VAN KAMPEN AMERICAN CAPITAL
INVESTMENT ADVISORY CORP.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
CUSTODIAN AND
TRANSFER AGENT
STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02105
LEGAL COUNSEL
SKADDEN, ARPS, SLATE,
MEAGHER & FLOM (ILLINOIS)
333 West Wacker Drive
Chicago, Illinois 60606
INDEPENDENT ACCOUNTANTS
KPMG PEAT MARWICK LLP
Peat Marwick Plaza
303 East Wacker Drive
Chicago, Illinois 60601
* "Interested" persons of the Trust, as defined in the Investment Company Act of
1940.
(C) Van Kampen American Capital Distributors, Inc., 1997 All rights reserved.
(SM) denotes a service mark of Van Kampen American Capital Distributors, Inc.
17
