N-30D 1 ANNUAL REPORT (logo) Putnam New York Investment Grade Municipal Trust Annual Report April 30, 1994 (artwork) For investors seeking high current income free from federal income tax and New York State and City personal income tax, consistent with preservation of capital Contents 2 How your fund performed 3 From the Chairman 4 Report from Putnam Management Annual Report 6 Report of Independent Accountants 7 Portfolio of investments owned 9 Financial statements 17 Fund performance supplement 18 Federal tax information 19 Your Trustees A member of the Putnam Family of Funds How your fund performed For periods ended April 30, 1994 Total Return* Lehman Fund Brothers Consumer Market Municipal Price (common shares) NAV price Bond Index Index 1 year 2.26% 3.25% 2.16% 2.36% Life-of-fund (since 11/27/92) 8.73 1.23 8.11 3.80 annualized 6.03 0.86 5.61 2.64 Market Share data (common shares) NAV price April 30, 1993 $14.57 $15.000 April 30, 1994 $13.86 $13.500 Distributions(a) Fiscal year ended Short-term April 30, 1994 Investment capital (common shares) Number income gains Total 12 $0.93 $0.154 $1.084 (preferred shares) Total 200 shares -- Series A $1,857.19 $221.71 $2,078.90 Taxable equivalents+ Current returns Market Market at the end of the period NAV price NAV price Current dividend rate 6.71% 6.89% 12.63% 12.97% * Performance data represent past results. Investment return and principal value will fluctuate so an investor's shares, when sold, may be worth more or less than their original cost. (a) Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may also be subject to the alternative minimum tax. + Assumes maximum 46.88% combined New York state, city and federal tax rate. Results for investors subject to lower tax rates would not be as advantageous, although many such investors would still have the opportunity to receive attractive tax benefits from a fund investment. Consult your tax advisor for guidance. Terms you need to know Total return is the change in value of an investment from the beginning to the end of a period, assuming the reinvestment of all distributions. It may be shown at net asset value or at market price. Net asset value (NAV) is the value of all your fund's assets, minus any liabilities, the liquidation preference and cumulative undeclared dividends on the remarketed preferred shares, divided by the number of outstanding common shares. (See Note 1 to financial statements) 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. Current dividend rate is calculated by annualizing the income portion of the fund's most recent distribution and dividing by the NAV or market price on the last day of the period. Taxable equivalent return is the rate at which a taxable investment would have to generate income to equal the fund's current dividend rate or yield. Please see the fund performance supplement on page 17 for additional information about performance comparisons. From the Chairman (photograph of George Putnam) (c) Karsh, Ottawa George Putnam Chairman of the Trustees Dear Shareholder: Many shareholders have been asking us whether we think the volatility that hit the securities markets in February and March was a prelude to further decline during the rest of 1994. We have been pointing out that the recent adjustments in the markets are a natural occurrence at this stage of the economic recovery. We believe some volatility will likely continue for a while as investors digest new realities in areas such as interest rates, inflation, and the pace of the recovery. But the economy is still strong, interest rates remain historically low, and inflation appears under control. It is important for investors to remember that mutual fund investing should be looked at as a long-term investment. We often say that it is time, not timing, combined with a proven strategy that will achieve the most attractive results. The ability to fine-tune a portfolio in response to changing economic conditions demonstrates a significant advantage of professional management. Fund manager David Eurkus has worked to minimize the price volatility that naturally results from a rising interest rate environment while capturing the higher income potential offered by newer municipal bonds coming to market. In spite of recent volatility and speculation about future interest rate increases, we believe Putnam New York Investment Grade Municipal Trust is a methodically structured portfolio that will continue to deliver attractive levels of tax-free income for the balance of this year and beyond. Respectfully yours, (signature of George Putnam) George Putnam June 15, 1994 Report from Putnam Management Top 10 holdings --------------------------- Based on percentage of net assets as of 4/30/94 New York State Med. Care Fac. Fin. Agcy. Rev. Bonds New York State Energy Research & Dev. Auth. Elec. Fac. Rev. Bonds Port Auth. of NY & NJ Cons. RIBS New York State Dorm. Auth. Rev. Bonds New York City, General Obligation Bonds Babylon, Indl. Dev. Agcy. Resource Recvy. Rev. Bonds New York State Energy Research & Dev. Auth. Poll. Control Rev. Bonds Virgin Islands, Pub. Fin. Auth. Rev. Bonds New York State Pwr. Auth. Gen. Purpose Rev. Bonds New York State Environmental Fac. Corp. Poll. Control Rev. Bonds February 1994 brought the first in a series of short-term interest rate increases by the Federal Reserve, billed as a pre- emptive strike against inflation. Combined, the first three increases raised short-term rates by 1.25% affecting the entire fixed-income market. Although municipal bond investments were among those hit hardest, we are pleased to report that Putnam New York Investment Grade Municipal Trust Fund completed fiscal 1994 with a positive total return at net asset value (see page 2 for performance details). How the market responded As interest rates increased, the value of bonds decreased, sparking a selloff among municipal bond shareholders that affected primarily no-load funds. Fund managers, in order to meet the liquidation requests of their investors, began to sell bonds to raise the capital to cover redemptions. Securities dealers were not motivated to buy bonds because their firms already had a large inventory of bonds on hand because of their own optimistic view of anticipated demand. As a result of the excess supply, accompanied by an extreme lack of demand, bond prices dropped even further. After the dust settled, municipal bonds were yielding approximately 98% of Treasury bonds on a pre-tax basis and were available at undervalued prices. In light of the recent market correction, it is important to remember that mutual fund investments should be looked at as a long-term investment -- even if its primary purpose is to provide current income. With a proven strategy and an appropriate time frame, even an investor who consistently buys at the worst possible time may achieve extremely attractive results. Those who can take advantage of the price trends in this market have the potential for even greater gains. We believe that today's post- correction prices and higher yields represent an excellent opportunity for investors. Supply/demand dynamics While short-term rates can erode the total return of long-term bond funds, we believe that positive supply/demand dynamics may help offset the damage. Rising interest rates have had a sobering effect on the refinancing phenomenon, reducing supply from one of the largest sources of new issues. Because new issuance of municipal bonds has declined by almost 40% this year already, demand is likely to outpace supply. In the face of higher taxes and strengthening demand, shrinking supply could further enhance the value of the bonds in the portfolio, and thus, the fund's net asset value. Diversified state economy adds stability New York is one of the country's top issuers of municipal bonds. When it comes to selecting investments, the sheer size and diversity of the Empire State's economy provides a ready-made opportunity for a well- diversified portfolio. As of April 30, 1994, your fund owns 30 separate bond issues with an average quality rating of A. Nearly 65% of the portfolio is invested in utility, health care, transportation, and education bonds--industries which typically carry some of the higher-quality, higher-coupon bonds in the municipal bond universe. Upgrade potential could boost returns While there can be no guarantees, we believe there is a strong possibility that New York state's general obligation bonds could be upgraded sometime this year. An upgrade in these tax-based bonds could portend upgrades of bonds issued by major state agencies financed through state appropriations. The State and City university systems and medical facilities are examples of agencies that could benefit. Such an event could be quite positive for your fund, as prices of these holdings could appreciate to reflect rising investor confidence and demand. Overall, our strategy is to remain fully invested while continuing to maintain a well-diversified portfolio. Of course, we will carefully monitor the effectiveness of this strategy and make adjustments to the portfolio as market conditions warrant. Although we will remain cautious in the near term, we will continue to maintain a positive outlook for the municipal bond market as a whole. Despite the current correction in the market, inflation still appears relatively low. Once the market recognizes this, we believe it will stabilize and the strong fundamentals that make municipal bonds such an attractive investment will begin to reward shareholders to a greater extent. (bar chart) Top industry sectors (based on percentage of net assets as of 4/30/94) Utilities/Water and Sewer 29.2% Hospitals/Health care 21.2% Transportation 14.0% Education 10.5% Putnam New York Investment Grade Municipal Trust Annual Report For the year ended April 30, 1994 Report of Independent Accountants To the Trustees and Shareholders of Putnam New York Investment Grade Municipal Trust In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments owned (except for bond ratings), and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Putnam New York Investment Grade Municipal Trust (the "Fund") at April 30, 1994, and the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of investments owned at April 30, 1994 by correspondence with the custodian, provide a reasonable basis for the opinion expressed above. Price Waterhouse Boston, Massachusetts June 15, 1994
Portfolio of investments owned April 30, 1994 Municipal Bonds and Notes (98.2%)(a) Principal Amount Ratings(b) Value New York (90.9%) $1,610,000 Albany, Parking Auth. Rev. Bonds Ser. A, 6.85s, 11/1/12 Baa $ 1,636,163 3,000,000 Babylon, Indl. Dev. Agcy. Resource Recvy. Rev. Bonds (Ogden Martin Syst.), Ser. A, 8 1/2s, 1/1/19 Baa 3,307,500 650,000 Ithaca, Hsg. Corp. Mtge. Rev. Bonds (Eddygate Park Apts. Project), 9s, 6/1/06 BBB/P 656,500 1,500,000 Metro. Trans. Auth. Transit Fac. Rev. Bonds Ser. F, 8 3/8s, 7/1/16 AAA 1,648,125 500,000 NY City, Cultural Res. Variable Rate Demand Notes (VRDN) (American Museum of Natural History), Ser. B, Municipal Bond Insurance Assn. 3.15s, 4/1/21 AAA 500,000 NY City, General Obligation Bonds 1,385,000 Ser. A, 8s, 8/15/19 A 1,629,106 1,700,000 Ser. B, 7s, 10/1/13 A 1,825,375 1,300,000 NY State Dorm. Auth. Residual Interest Bonds (RIBS) (Cornell U.) 11.227s, 7/1/30, (acquired 1/6/93, cost $1,533,675)(c) AA/P 1,550,250 NY State Dorm. Auth. Rev. Bonds 1,600,000 (The Society of NY Hosp.), 9 3/4s, 7/1/15 Baa 1,644,000 1,800,000 (State U. Edl. Facs.), Ser. A, 6 3/4s, 5/15/21 Baa 1,993,500 3,500,000 NY State Energy Research & Dev. Auth. Elec. Fac. Rev. Bonds (Cons. Edison Co. of NY, Inc. Project), 9s, 8/15/20 Aa 3,736,250 NY State Energy Research & Dev. Auth. Poll. Control Rev. Bonds 1,600,000 (Niagara Mohawk Pwr. Corp.), Ser. I, 8 7/8s, 11/1/25 Baa $ 1,712,000 600,000 Ser A, VRDN, 3.05s, 7/1/15 A1 600,000 1,600,000 NY State Environmental Fac. Corp. Poll. Control Rev. Bonds (State Wtr. Revolving Fund), Ser. A, 7 1/2s, 6/15/12 Aa 1,792,000 1,800,000 NY State Local Govt. Asst. Corp. Rev. Bonds Ser. B, 6 1/4s, 4/1/21 A 1,788,750 NY State Med. Care Fac. Fin. Agcy. Rev. Bonds 1,600,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. A, Federal Housing Admin. (FHA) Insd., 8s, 2/15/27 AA 1,756,000 1,450,000 (Mental Hlth. Svcs. Fac.), Ser. D. 7.4s, 2/15/18 Baa 1,564,188 1,600,000 Ser. A, 7.35s, 8/15/11 BBB 1,728,000 1,800,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C, 6.65s, 8/15/32 Aa 1,824,750 1,800,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. D, FHA Insd., 6.6s, 2/15/31 AA 1,827,000 1,800,000 (Hosp. & Nursing Home Insd. Mtge.), Ser. C, FHA Insd., 6 3/8s, 8/15/29 AAA 1,768,500 1,800,000 NY State Pwr. Auth. Gen. Purpose Rev. Bonds Ser. AA, 6 1/4s, 1/1/23 AA 1,809,000 2,000,000 NY State Pwr. Auth. RIBS 7.014s, 1/1/14, (acquired 12/8/93, cost $1,860,000)(c) AA 1,490,000 1,450,000 NY State Urban Dev. Corp. Rev. Bonds (Correctional Fac.), 8s, 1/1/15 Aaa 1,560,563 2,000,000 Port Auth. of NY & NJ Cons. Bonds 53rd Ser., 8.7s, 7/15/20 AA $ 2,135,000 1,400,000 Port Auth. of NY & NJ Cons. RIBS 10.334s, 8/1/26, (acquired 7/19/93, cost $1,687,700)(c) AA 1,505,000 44,987,520 Puerto Rico (3.1%) 1,365,000 Puerto Rico, Pub. Bldgs. Auth. Ed. & Hlth. Facs. Rev. Bonds Ser. L, 6 7/8s, 7/1/21 AAA 1,533,918 Virgin Islands (4.2%) 2,000,000 Virgin Islands, Pub. Fin. Auth. Rev. Bonds (Matching Funds Loan Notes), Ser. A, 7 1/4s, 10/1/18 BBB/P 2,092,500 Total Investments (cost $49,032,289)(d) $48,613,938 (a) Percentages indicated are based on total net assets of $49,479,704. Net assets available to common shareholders are $39,465,525, which corresponds to a net asset value per common share of $13.86. (b) The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings available at April 30, 1994 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 ratings which the agencies would ascribe to these securities at April 30, 1994. Securities rated by Putnam are indicated by "/P" and are not publicly rated. Ratings are not covered by the Report of Independent Accountants. (c) Restricted as to public resale. At the date of acquisition, these securities were valued at cost. There were no outstanding unrestricted securities of the same class as those held. Total market value of the restricted securities owned at April 30, 1994 was $4,545,250 or 9.2% of net assets. (d) The aggregate identified cost for federal income tax purposes is $49,032,289 resulting in gross unrealized appreciation and depreciation of $832,457 and $1,250,808, respectively, or net unrealized depreciation of $418,351. The rates shown on Variable Rate Demand Notes and Residual Interest Bonds are the current interest rates at April 30, 1994, which are subject to change based on the terms of the security. The Fund had the following industry group concentrations greater than 10% on April 30, 1994 (as a percentage of net assets): Utilities/Water & Sewer 29.2% Hospitals/Health Care 21.2 Transportation 14.0 Education 10.5 The Fund had the following insurance concentration greater than 10% on April 30, 1994 (as a percentage of net assets): FHA 10.8% /TABLE
Statement of assets and liabilities April 30, 1994 Assets Investments in securities, at value (identified cost $49,032,289) (Note 1) $48,613,938 Cash 260,839 Interest receivable 1,019,369 Unamortized organization expenses (Note 1) 8,228 Total assets 49,902,374 Liabilities Distributions payable to shareholders $254,116 Payable for compensation of Manager (Note 4) 85,887 Payable for investor servicing and custodian fees (Note 4) 8,085 Payable for administrative services (Note 4) 2,178 Payable for offering and organization costs (Notes 1, 2 and 3) 26,874 Other accrued expenses 45,530 Total liabilities 422,670 Net assets $49,479,704 Represented by Series A remarketed preferred shares, without par value; 200 shares authorized (200 shares issued at $50,000 per share liquidation preference) (Note 3) $10,000,000 Common shares, without par value; unlimited shares authorized; 2,847,092 shares outstanding 39,508,682 Undistributed net investment income 135,602 Accumulated net realized gain on investments 253,771 Net unrealized depreciation of investments (418,351) Net assets $49,479,704 Computation of net asset value Remarketed preferred shares at liquidation preference $10,000,000 Cumulative undeclared income dividends on remarketed preferred shares -- Cumulative undeclared capital gain dividends on remarketed preferred shares 14,179 Net assets allocated to remarketed preferred shares at liquidation preference 10,014,179 Net assets available to common shares: Net asset value per share $13.86 ($39,465,525 divided by 2,847,092 shares) 39,465,525 Net assets $49,479,704
Statement of operations For the year ended April 30, 1994 Tax exempt interest income $3,514,182 Expenses: Compensation of Manager (Note 4) $364,411 Investor servicing and custodian fees (Note 4) 40,250 Compensation of Trustees (Note 4) 5,438 Reports to shareholders 8,041 Auditing 41,116 Legal 8,326 Postage 4,300 Administrative services (Note 4) 5,018 Amortization of organization expenses (Note 1) 2,291 Preferred share remarketing agent fees 30,000 Other 8,890 Total expenses 518,081 Net investment income 2,996,101 Net realized gain on investments (Notes 1 and 4) 507,759 Net unrealized depreciation of investments during the period (2,004,082) Net loss on investments (1,496,323) Net increase in net assets resulting from operations $1,499,778
Statement of changes in net assets For the period November 27, 1992 For The (commencement of year ended operations) to April 30 April 30 1994 1993* Increase/(Decrease) in net assets Operations: Net investment income $2,996,101 $1,119,636 Net realized gain on investments 507,759 228,796 Net unrealized (depreciation) appreciation of investments (2,004,082) 1,585,731 Net increase in net assets resulting from operations 1,499,778 2,934,163 Distributions to remarketed preferred shareholders from: Net investment income (371,438) (77,902) Net realized gains (44,341) -- Net increase in net assets resulting from operations applicable to common shareholders (excluding cumulative undeclared dividends on remarketed preferred shares of $14,179 and $0, respectively) 1,083,999 2,856,261 Distributions to common shareholders from: Net investment income (2,647,978) (882,817) Net realized gains (438,443) -- Increase from capital share transactions Issuance of remarketed preferred shares (Note 3) -- 10,000,000 Issuance of common shares (Note 2) -- 39,745,663 Underwriting commissions and offering costs on remarketed preferred shares and common shares (Notes 2 and 3) (8,855) (328,126) Total (decrease) increase in net assets (2,011,277) 51,390,981 Net assets Beginning of period 51,490,981 100,000 End of period (including undistributed net investment income of $135,602 and $158,917, respectively) $49,479,704 $51,490,981 Number of fund shares Common shares outstanding at beginning of period 2,847,092 7,092 Shares issued in public offering -- 2,840,000 Common shares issued in connection with reinvestment of distributions -- -- Common shares outstanding at end of period 2,847,092 2,847,092 Remarketed preferred shares at beginning of period 200 -- Remarketed preferred shares issued in public offering -- 200** Remarketed preferred shares outstanding at end of period 200 200 * See Note 2. ** From issuance on February 18, 1993 (see Note 3). /TABLE
Financial Highlights (For a share outstanding throughout the period) For the period November 27, 1992 For the (commencement of year ended operations) to April 30 April 30 1994 1993 Net Asset Value, Beginning of Period (common shares) $14.57 $13.99* Investment Operations: Net Investment Income 1.05 .40(a) Net Realized and Unrealized (Loss) Gain on Investments (.53) .64 Total from Investment Operations .52 1.04 Less Distributions from: Net Investment Income: to Preferred Shareholders (.13) (.03)** to Common Shareholders (.93) (.31) Net Realized Gains: to Preferred Shareholders (.02) -- to Common Shareholders (.15) -- Total Distributions (1.23) (.34) Preferred Share Offering Costs -- (.12) Net Asset Value, End of period (common shares) $13.86 $14.57 Market Value, End of period (common shares) $13.50 $15.00 Total Investment Return at Market Value (%) (common shares)(e) (3.25) 4.86(c) Net Assets, End of Period (Total Fund) (in thousands) $49,480 $51,491 Ratio of Expenses to Average Net Assets (%)(b) 1.23 .82(a)(c) Ratio of Net Investment Income to Average Net Assets (%)(b) 6.23 6.12(a)(c) Portfolio Turnover Rate (%) 15.18 32.27(d) * Represents initial net asset value of $14.10 less offering expenses of approximately $0.11. ** Preferred shares were issued on February 18, 1993. (a) Reflects a waiver of the management fee for the period November 27, 1992 to February 19, 1993. As a result of such waiver, expenses of the Fund for the period ended April 30, 1993 reflect a reduction of approximately $0.02 per share. (b) Ratios reflect net assets available to common shares only; net investment income ratio also reflects reduction for dividend payments to preferred shareholders. (c) Annualized. (d) Not annualized. (e) Total investment return assumes dividend reinvestment and does not reflect the effect of sales charges.
Notes to financial statements April 30, 1994 Note 1 Significant accounting policies The Fund is registered under the Investment Company Act of 1940, as amended, as a non-diversified, closed-end management investment company. The Fund's investment objective is to seek high current income exempt from federal income tax and New York State and City personal income tax. The Fund intends to achieve its objective by investing in investment grade municipal securities constituting a portfolio that the Fund's Manager 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 policies are in conformity with generally accepted accounting principles. A) Security valuation Tax-exempt bonds and notes are stated on the basis of valuations provided by a pricing service, approved by the Trustees, which uses information with respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various relationships between securities in determining value. The fair value of restricted securities is determined by the Manager following procedures approved by the Trustees, and such valuations and procedures are reviewed periodically by the Trustees. B) Security transactions and related investment income Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Interest income is recorded on the accrual basis. C) Determination of net asset value Net asset value of the common shares is determined by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses), and the liquidation value of any outstanding remarketed preferred shares, by the total number of common shares outstanding. 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. Therefore, no provision has been made for federal taxes on income or capital gains or unrealized appreciation of securities held and excise tax on income and capital gains. E) Distributions to shareholders Distributions to common and preferred shareholders are recorded by the Fund on the ex- dividend date. Dividends on remarketed preferred shares become payable when, as and if, declared by the Trustees. Each dividend period for the remarketed preferred shares is generally a 30-day period until January 20, 1995. The applicable dividend rate for the remarketed preferred shares on April 30, 1994 was 3.95% per annum and fixed until January 20, 1995. Each subsequent dividend period will generally be a 28-day period and the applicable dividend rate will be the dividend rate determined by the remarketing agent. F) Amortization of bond premium and discount Any premium resulting from the purchase of securities in excess of maturity value is amortized on a yield-to-maturity basis. Discount on zero-coupon bonds, stepped-coupon bonds and original issue discount bonds is accreted according to the effective yield method. G) Unamortized organization expenses Expenses incurred by the Fund in connection with its organization aggregated $11,494. These expenses are being amortized on a straight-line basis over a five-year period. Note 2 Initial capitalization and offering of shares The Fund was established as a Massachusetts business trust under the laws of Massachusetts on October 5, 1992. During the period October 5, 1992 to November 26, 1992 the Fund had no operations other than those related to organizational matters, including the initial capital contribution of $100,000, and the issuance of 7,092 common shares to Putnam Mutual Funds Corp., a wholly-owned subsidiary of Putnam Investments, Inc., on November 12, 1992. On November 27, 1992, the Fund completed the initial offering of 2,600,000 of its common shares for which it received net proceeds of $36,660,000 before deducting $307,192 of initial offering expenses. Such offering expenses and the Fund's organizational expenditures were paid initially by Putnam Investment Management, Inc. "Putnam Management," the Fund's Manager, a wholly-owned subsidiary of Putnam Investments, Inc., and the Fund reimburses the Manager for such costs. Regular investment operations commenced on November 27, 1992. On January 19, 1993, the Fund completed a supplemental offering 240,000 common shares for which it received net proceeds of $3,384,000. Note 3 Remarketed preferred shares On February 18, 1993, the Fund issued 200 Remarketed Preferred Shares (Series A). Proceeds to the Fund before, underwriting expenses of $175,500 and offering expenses of $153,126, amounted to $10,000,000. Such offering expenses and the Fund's underwriting expenditures were paid initially by Putnam Management, and the Fund is obligated to reimburse the Manager for such costs. These expenses were charged against net assets of the Fund available to common shareholders. The Series A remarketed preferred shares are redeemable at the option of the Fund on any remarketing 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. There were no undeclared income dividends on remarketed preferred shares at April 30, 1994. It is anticipated that dividends paid to holders of remarketed preferred shares will be considered tax-exempt dividends under the Internal Revenue Code of 1986, as amended. To the extent that the Fund earns taxable income and capital gains by the conclusion of a fiscal year, it will be required to apportion to the holders of the remarketed preferred shares throughout that year additional dividends as necessary to result in an after-tax yield equivalent to the applicable dividend rate for the period. During the year ended April 30, 1994 the Fund incurred additional dividends of $35,522. 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 the 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, 1994, there were no such restrictions on the Fund. Note 4 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, including net assets attributable to remarketed preferred shares. Such fee is based on the annual rate of 0.70% of the first $500 million of the average net asset value of the Fund, 0.60% of the next $500 million, 0.55% of the next $500 million, and 0.50% of any excess over $1.5 billion of such average net asset value. If dividends payable on remarketed preferred shares during any dividend payment period plus any expenses attributable to remarketed preferred shares for the period exceed the Fund's net income attributable to the proceeds of the remarketed preferred shares during that period, then the fee payable to Putnam Management for that period will be reduced by the amount of the excess (but not more than .70% of the liquidation preference of the remarketed preferred shares outstanding during the period). In connection with the initial offering of shares of the Fund, Putnam Management agreed to waive its management fee from the period November 27, 1992 (commencement of operations) to February 19, 1993. The Fund also reimburses the Manager 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. For the year ended April 30, 1994, the Fund paid $ 5,018 for these services. Trustees of the Fund receive an annual Trustee's fee of $520 and an additional fee for each Trustees' meeting attended. Trustees who are not interested persons of the Manager and who serve on committees of the Trustees receive additional fees for attendance at certain committee meetings. Custodial functions for the Fund's assets are provided by The 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. Fees paid for these investor servicing and custodial functions for the year ended April 30, 1994 amounted to $40,250. Investor servicing and custodian fees reported in the Statement of operations for the year ended April 30, 1994 have been reduced by credits allowed by PFTC. Note 5 Purchases and sales of securities During the year ended April 30, 1994, purchases and sales of investment securities other than short-term investments aggregated $8,449,953 and $7,642,605, respectively. Purchases and sales of short-term municipal obligations aggregated $3,000,000 and $4,800,000, respectively. In determining the net gain or loss on securities sold, the cost of securities has been determined on the identified cost basis. Fund performance supplement New York Investment Grade Municipal Trust is a portfolio managed for high current income free from New York City, State and federal income tax, consistent with preservation of capital. The Lehman Brothers Municipal Bond Index is an unmanaged list of long-term, fixed-rate, investment-grade, tax-exempt bonds representative of the municipal bond market. The index does not take into account brokerage commissions or other costs, may include bonds different from those in the fund, and may pose different risks from the fund. The Consumer Price Index is a commonly used measure of inflation; it does not represent an investment return. The fund performance supplement has been prepared by Putnam Management to provide additional information about the fund and the indexes used for performance comparisons. The information is not part of the portfolio of investments owned or the financial statements. Federal income tax information The fund has designated all dividends paid from net investment income during the fiscal year as exempt-interest dividends. Thus, 100% of these distributions are exempt from federal income tax. For residents of the state of New York, 100% of the Fund's distributions are also exempt from New York personal income tax. During the fiscal year the fund distributed $0.165 per share from short-term capital gains constituting "dividend income" for federal income tax purposes. The form 1099 you will receive in January 1995 will show the tax status of all distributions paid to your account in calendar 1994.
Selected quarterly data* (Unaudited) For the period November 27, 1992 (commencement of Three months ended operations) to April 30 January 31 October 31 July 31 April 30 January 31 1994 1993 1993 1993 1993** 1993 Total investment income Total $878,124 $882,072 $892,116 $861,870 $813,747 $445,910 Per Share*** $.30 $.31 $.32 $.30 $.29 $.16 Net investment income available to common shareholders Total $622,094 $685,489 $661,473 $655,607 $599,278 $442,456 Per Share*** $.22 $.24 $.23 $.23 $.21 $.16 Net realized and unrealized (loss) gain on investments Total $(3,221,304) $(25,853) $914,702 $836,132 $855,666 $958,861 Per Share*** $(1.15) $(.01) $.34 $.29 $.30 $.34 Net (decrease) increase in net assets available to common shareholders resulting from operations Total $(2,643,551) $659,636 $1,576,175 $1,491,739 $1,454,944 $1,401,317 Per Share*** $(.95) $.23 $.57 $.52 $.51 $.50 Net assets available to common shareholders at end of period Total $39,465,525 $42,785,170 $43,214,505 $42,320,607 $41,490,981 $40,977,318 Per Share*** $13.86 $15.03 $15.18 $14.86 $14.57 $14.39 * In connection with the initial offering of shares of the Fund, Putnam Management agreed to waive its management fee for the period November 27, 1992 to February 19, 1993. ** Preferred shares were issued on February 18, 1993. *** Per common share. /TABLE Your Trustees George Putnam Chairman Chairman and President, The Putnam Funds William F. Pounds Vice Chairman The Putnam Funds, Professor of Management, Alfred P. Sloan School of Management, Massachusetts Institute of Technology Jameson Adkins Baxter President, Baxter Associates, Inc. Hans H. Estin Vice Chairman, North American Management Corporation John A. Hill Principal and Managing Director, First Reserve Corp. Elizabeth T. Kennan President Mount Holyoke College Lawrence J. Lasser President and Chief Executive Officer, Putnam Investments, Inc. Robert E. Patterson Executive Vice President, Cabot Partners Limited Partnership Donald S. Perkins Director of various corporations George Putnam, III President, New Generation Research, Inc. A.J.C. Smith Chairman of the Board and Chief Executive Officer, Marsh & McLennan Companies, Inc. W. Nicholas Thorndike Director of various corporations Putnam New York Investment Grade Municipal Trust Fund information Investment manager Putnam Investment Management, Inc. One Post Office Square Boston, MA 02109 Marketing services Putnam Mutual Funds Corp. One Post Office Square Boston, MA 02109 Investor servicing agent Putnam Investor Services Mailing address: P.O. Box 41203 Providence, RI 02940-1203 1-800-225-1581 Custodian Putnam Fiduciary Trust Company Legal counsel Ropes & Gray Independent accountants Price Waterhouse (DALBAR logo) Putnam Investor Services has received the DALBAR award each year since the award's 1990 inception. In more than 10,000 tests of 38 shareholder service components, Putnam outperformed the industry standard in every category. 185-12425 Officers George Putnam President Charles E. Porter Executive Vice President Patricia C. Flaherty Senior Vice President Lawrence J. Lasser Vice President Gordon H. Silver Vice President John R. Verani Vice President Gary N. Coburn Vice President James E. Erickson Vice President David Eurkus Vice President and Fund Manager William N. Shiebler Vice President John D. Hughes Vice President and Treasurer Paul O'Neil Vice President Beverly Marcus Clerk and Assistant Treasurer This report is for the information of shareholders of Putnam New York Investment Grade Municipal Trust. It may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details of sales charges, investment objectives and operating policies of the fund. ------------------- Bulk Rate U.S. Postage Paid Boston, MA Permit No. 53749 ------------------- The Putnam Funds One Post Office Square Boston, Massachusetts 02109 APPENDIX TO FORM N30D FILINGS TO DESCRIBE DIFFERENCES BETWEEN PRINTED AND EDGAR-FILED TEXTS: (1) Rule lines for tables are omitted. (2) Boldface and italic typefaces are displayed in normal type. (3) Headers (e.g, the name of the fund) and footers (e.g., page numbers and "The accompanying notes are an integral part of these financial statements") are omitted. (4) Because the printed page breaks are not reflected, certain tabular and columnar headings and symbols are displayed differently in this filing. (5) Bullet points and similar graphic signals are omitted. (6) Page numbering is different.