Item 1. Report to Stockholders:

The following is a copy of the report transmitted to stockholders pursuant

to Rule 30e-1 under the Investment Company Act of 1940:

What makes Putnam different?

In 1830, Massachusetts Supreme Judicial Court Justice Samuel Putnam established The Prudent Man Rule, a legal foundation for responsible money management.

THE PRUDENT MAN RULE

All that can be required of a trustee to invest is that he shall conduct himself faithfully and exercise a sound discretion. He is to observe how men of prudence, discretion, and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety of the capital to be invested.

A time-honored tradition in money management

Since 1937, our values have been rooted in a profound sense of responsibility for the money entrusted to us.

A prudent approach to investing

We use a research-driven team approach to seek consistent, dependable, superior investment results over time, although there is no guarantee a fund will meet its objectives.

Funds for every investment goal

We offer a broad range of mutual funds and other financial products so investors and their advisors can build diversified portfolios.

A commitment to doing what’s right for investors

We have stringent investor protections and provide a wealth of information about the Putnam funds.

Industry-leading service

We help investors, along with their financial advisors, make informed investment decisions with confidence.

Putnam New York
Investment Grade
Municipal Trust

10| 31| 05

Semiannual Report

Message from the Trustees	2
About the fund	4
Report from the fund managers	7
Performance	12
Your fund’s management	14
Terms and definitions	17
Trustee approval of management contract	18
Other information for shareholders	23
Financial statements	24
Shareholder meeting results	38

Cover photograph: © Richard H. Johnson

Message from the Trustees

Dear Fellow Shareholder

During the period that ended October 31, 2005, domestic stocks advanced at a pace reflecting their long-term average returns, while bonds registered sub-par results. Outside the United States, most markets showed more impressive gains. Although U.S. economic growth proceeded at a steady pace, new concerns emerged. High energy prices, the Federal Reserve Board’s program of interest-rate increases, and the impact of the unusually active 2005 hurricane season proved challenging to consumers and sparked brief bouts of volatility in financial markets. Putnam Management believes that energy prices, interest rates, and the after-effects of this year’s storms are likely to continue to shape investment opportunities and risks in the months to come.

Amid the uncertainties of this environment, the professional research, diversification, and active management that mutual funds provide continue to make them an intelligent choice for investors. We want you to know that Putnam Investments’ management team, under the leadership of Chief Executive Officer Ed Haldeman, continues to focus on investment performance and remains committed to putting the interests of shareholders first. In keeping with these goals, we have redesigned and expanded our shareholder reports to make it easier for you to learn more about your fund. Furthermore, on page 18 we provide information about the 2005 approval by the Trustees of your fund’s management contract with Putnam.

We would also like to take this opportunity to announce the retirement of one of your fund’s Trustees, Ronald J. Jackson, who has been an independent Trustee of the Putnam funds since 1996. We thank him for his service.

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In the following pages, members of your fund’s management team discuss the fund’s performance and strategies, and their outlook for the months ahead. As always, we thank you for your support of the Putnam funds.

Putnam New York Investment Grade Municipal Trust:
tax-favored income for New York investors

Municipal bonds, which finance important public projects, can also help investors keep more of their income. Issued by states and local municipalities to raise funds for building and maintaining public facilities, municipal bonds offer income that is generally exempt from federal income taxes. For residents of the state where the bond is issued, income is typically exempt from state and local taxes as well. In New York, this tax exemption is an especially powerful advantage because the state’s top income-tax rate is one of the highest in the United States.

The New York municipal bond market offers investors one of the broadest arrays of opportunities available. It is not only the oldest state municipal bond market -- the first municipal bond was issued in New York in 1812 -- but also one of the largest and most diverse. New York bonds encompass virtually every sector of the municipal bond market.

Putnam New York Investment Grade Municipal Trust capitalizes on the broad opportunities available in New York by investing in bonds across a range of market sectors. Municipal bonds are backed by either the issuing city or town or by revenues collected from usage fees. The fund’s investments focus on investment-grade bonds. In addition, the fund uses leverage -- that is, it invests with borrowed funds, raised by issuing preferred shares -- to seek a higher level of income for shareholders.

The fund’s management team is backed by the resources of Putnam’s fixed-income organization, one of the largest in the investment industry. The breadth of their expertise and their commitment to ongoing research give Putnam a distinct advantage over smaller firms. The fund invests in fewer issuers or concentrates its investments by region, and involves more risk than a fund that invests more broadly.

Municipal bonds may finance a range of community projects
and thus play a key role in local development.

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This active management can be invaluable to investors seeking tax-advantaged income.

Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. Mutual funds that invest in bonds are subject to certain risks, including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. Tax-free funds may not be suitable for IRAs and other non-taxable accounts. Leverage can mean higher returns, but adds risk and may increase share price volatility.

How do closed-end funds differ from open-end funds?

More assets at work Open-end funds must maintain a cash position to meet redemptions. Closed-end funds need not do so and can keep more of their assets invested in the market.

Traded like stocks Closed-end fund shares are traded on stock exchanges, and their prices fluctuate in response to supply and demand, among other factors.

Market price vs. net asset value Like an open-end fund’s net asset value (NAV) per share, the NAV of a closed-end fund share equals the current value of the fund’s assets, minus its liabilities, divided by the number of shares outstanding. When buying or selling closed-end fund shares, you pay or receive the market price, which may be higher or lower than the NAV.

Strategies for higher income Closed-end funds have greater flexibility to use strategies such as “leverage” -- for example, issuing preferred shares to raise capital, then seeking to invest it at higher rates to enhance income for common shareholders.

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Putnam New York Investment Grade Municipal Trust is a leveraged fund that seeks to provide as high a level of current income free from federal income tax and New York state and city personal income taxes as Putnam Management believes is consistent with the preservation of capital. It may be suitable for investors seeking tax-free income from high-quality investments primarily issued in New York and who are willing to accept the risks associated with leverage.

Highlights 

* For the six months ended October 31, 2005, Putnam New York Investment Grade Municipal 

  Trust returned 0.67% at net asset value (NAV) and 0.76% at market price. 

* The fund’s benchmark, the Lehman Municipal Bond Index, returned 0.58%. 

* The average return for the fund’s Lipper category, New York Municipal Debt Funds 

  (closed-end), was 1.70%. 

* The fund’s monthly dividend was reduced to $0.0438 per share, effective in June. See page 11 

  for details. 

* Additional fund performance, comparative performance, and Lipper data can be found in the 

  performance section beginning on page 12. 

Performance

It is important to note that a fund’s performance at market price may differ from its results at NAV. Although market price performance generally reflects investment results, it may also be influenced by several other factors, including changes in investor perceptions of the fund or its investment advisor, market conditions, fluctuations in supply and demand for the fund’s shares, and changes in fund distributions.

Total return for periods ended 10/31/05

Since the fund's inception (11/27/92), average annual return is 6.00% at NAV and 4.20% at market price.
	Average annual return		Cumulative return
	NAV	Market price	NAV	Market price
10 years	5.69%	4.33%	73.93%	52.75%
5 years	6.26	4.53	35.44	24.82
1 year	4.54	1.52	4.54	1.52
6 months	--	--	0.67	0.76

Data is historical. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return, net asset value, and market price will fluctuate and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes.

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Report from the fund managers

The period in review

For the six months ended October 31, 2005, your fund’s performance at NAV was in line with that of its benchmark, the Lehman Municipal Bond Index, a nationally diversified index of municipal bonds. However, the fund lagged the average for its Lipper category of closed-end funds that invest in New York municipal securities. During the period, lower-quality bonds generally outperformed the investment-grade bonds in which your fund invests. Moreover, the benefits we were able to produce from our emphasis on tobacco settlement bonds and other strong-performing holdings were overshadowed by the fund’s yield curve positioning and our relatively conservative use of leverage.

Market overview

Signs of solid economic growth, and the desire to curb the potential inflation that often accompanies growth, prompted the Federal Reserve Board (the Fed) to increase short-term interest rates four times in 0.25% increments during the first half of the fund’s fiscal year. As a result, the federal funds rate rose from 2.75% at the beginning of the period to 3.75% at period-end. Yields rose across all maturities during the period and the yield curve flattened as shorter-term rates rose more than longer-term rates. The yield curve is a graphical representation of bond yields with the same quality plotted from the shortest to the longest maturity.

An improving economy and rising corporate earnings contributed to the strong performance of lower-rated bonds. Among uninsured bonds in general and especially bonds rated Baa and below, yield spreads tightened, benefiting from strong interest among buyers in search of higher yields. Based on continued favorable legal rulings, yields on tobacco settlement bonds declined, and their prices rose accordingly. Airline-related industrial development bonds (IDBs) exhibited a high level of volatility and ended on weakness as both Northwest and Delta filed for bankruptcy in September 2005. No single state performed notably better than other states. Callable bonds (which can be redeemed by their issuers before maturity) outperformed

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non-callable bonds, as investors generally expect that callable bonds will be less sensitive to interest-rate increases.

Strategy overview

Given our expectation for rising interest rates, we maintained a short (defensive) duration position for your portfolio. Duration is a measure of a fund’s sensitivity to changes in interest rates. Having a shorter-duration portfolio may help protect principal when interest rates are rising, but it can reduce the fund’s potential for appreciation when rates fall. Your fund benefited from its defensive duration strategy.

During the period, we took steps to better position the portfolio for a flattening yield curve. However, the degree of flattening exceeded our efforts to mitigate its impact, resulting in a net negative contribution to relative results from the fund’s yield curve position. An overweight to tobacco settlement bonds relative to the fund’s peer group contributed to results as this sector outperformed.

Your fund’s holdings

Tobacco settlement bonds were the fund’s top performers for the fiscal period. Payments from these bonds are secured by income from tobacco companies’ settlement obligations to municipalities. A separate lawsuit brought in 1999 by the U.S. Department of Justice (DOJ) against the major tobacco companies -- seeking billions of

Market sector performance

These indexes provide an overview of performance in different market sectors for the six months ended 10/31/05.

Bonds
Lehman Municipal Bond Index (tax-exempt bonds)	0.58%
Lehman Aggregate Bond Index (broad bond market)	0.15%
Lehman Government Bond Index (U.S. Treasury and agency securities)	0.07%
JP Morgan Global High Yield Index (global high-yield corporate bonds)	3.50%
Equities
S&P 500 Index (broad stock market)	5.27%
Russell 1000 Index (large-company stocks)	6.18%
Russell 2000 Index (stocks of small and midsize companies)	12.25%

dollars that the DOJ insisted had been obtained fraudulently from the sale of cigarettes -- had posed a threat to this income stream. This sector benefited from a February 4, 2005, ruling by the U.S. Circuit Court of Appeals for the District of Columbia against the federal government. Investors appear to believe this has mitigated the potential financial impact of the DOJ’s lawsuit against tobacco companies, and demand for these bonds has strengthened, boosting their prices.

Among individual issuers, industrial development bonds (IDBs) issued for Triborough Bridge and Tunnel Authority were among the most powerful contributors to the fund’s results during the period. IDBs are issued by municipalities but backed by the credit of the company or institution benefiting from the financing. Investor perceptions about the backing company’s health, or that of its industry group, typically affect the prices of these bonds more than the rating of the issuing municipality. The fund’s Triborough holdings rose sharply in value when they were pre-refunded in July. Pre-refunding occurs when an issuer refinances an older, higher-coupon bond by issuing new bonds at current, lower interest rates. The proceeds are rolled over into a secure investment -- usually U.S. Treasury securities -- that matures at the older bond’s first call date, effectively raising the bonds’ perceived rating and

Average effective maturity also takes into account put and call features, where applicable, and reflects prepayments for mortgage-backed securities.

frequently its market value. The market now values these bonds as Aaa bonds, which is an upgrade, and the effective maturity of the bonds shortened from 2032 to 2012 due to the pre-refunding.

Thanks to the close attention of our team of analysts, your fund generally avoided the pitfalls experienced by other funds that held airline-related industrial development bonds (IDBs). IDBs are issued by municipalities but backed by the credit of the institution benefiting from the financing. Investor perceptions about the backer’s health, or that of its industry group, can affect the prices of these bonds to a greater extent than the rating of the issuing municipality. We felt the return prospects of these bonds did not justify the risks, given the airlines’ high fixed costs and pricing competition among carriers. The fund still holds a small position in IDBs issued for British Airways -- a holding with a higher rating than many of its competitors.

In general, credit spreads (the difference in yields available from higher-versus lower-rated bonds within the investment-grade spectrum) have been gradually narrowing in the past two years to a point where we no longer feel that the additional yield available from bonds from the lower tiers justifies their additional risk. Consequently, we have been diversifying the fund’s portfolio, weighing the outlook for individual issuers against their fundamental credit quality and such features as liquidity.

Credit quality overview

Credit qualities shown as a percentage of portfolio value as of 10/31/05. A bond rated Baa or higher is considered investment grade. The chart reflects Moody’s ratings; percentages may include bonds not rated by Moody's but considered by Putnam Management to be of comparable quality. Ratings will vary over time.

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Please note that the holdings discussed in this report may not have been held by the fund for the entire period discussed, are subject to review in accordance with the fund’s investment strategy, and may vary in the future.

Of special interest

Fund’s dividend reduced

Several older portfolio holdings were called or matured during the period, requiring reinvestment of the assets at current, lower interest rates. To reflect this reduction in earnings, the fund’s monthly dividend was reduced from $0.0493 to $0.0438, effective with the June 2005 distribution.

The outlook for your fund

The following commentary reflects anticipated developments that could affect your fund over the next six months, as well as your management team’s plans for responding to them.

We expect the Fed to maintain its policy of increasing rates through 2005 and into 2006. We also expect more Fed tightening than is currently anticipated by the market, and believe that bond yields may begin to rise more quickly as other investors come to the same conclusion. We currently plan to maintain the fund’s defensive duration and to continue to seek opportunities to increase the fund’s exposure to callable bonds, which, in our opinion, are likely to outperform in a rising-rate cycle.

We have a positive view of the single-family housing sector and plan to add selectively to the fund’s positions. As the outperformance of lower-rated, higher-yielding bonds is slowing, we will look for opportunities to reduce the fund’s exposure to this segment of the credit spectrum. We remain bearish on airline-related IDBs, while our view on tobacco settlement bonds is positive.

We will continue to search for the most attractive opportunities among tax-exempt securities, and work to balance the pursuit of current income with prudent risk management.

The views expressed in this report are exclusively those of Putnam Management. They are not meant as investment advice.

This fund invests in fewer issuers or concentrates its investments by region or sector, and involves more risk than a fund that invests more broadly. Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds may be subject to state and local taxes. Mutual funds that invest in bonds are subject to certain risks, including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. The fund uses leverage, which involves risk and may increase the volatility of the fund’s net asset value.

The fund’s shares trade on a stock exchange at market prices, which may be higher or lower than the fund’s net asset value.

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Your fund’s performance

This section shows your fund’s performance during the first half of its fiscal year, which ended October 31, 2005. In accordance with regulatory requirements, we also include performance for the most current calendar quarter-end. Performance should always be considered in light of a fund’s investment strategy. Data represents past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return, net asset value, and market price will fluctuate, and you may have a gain or a loss when you sell your shares.

Fund performance

Total return for periods ended 10/31/05

			Lehman	Lipper New York
			Municipal	Municipal Debt
		Market	Bond	Funds (closed-end)
	NAV	price	Index	category average*
Annual average
Life of fund
(since 11/27/92)	6.00%	4.20%	6.19%	6.29%
10 years	73.93	52.75	76.52	82.55
Annual average	5.69	4.33	5.85	6.17
5 years	35.44	24.82	33.70	43.39
Annual average	6.26	4.53	5.98	7.42
1 year	4.54	1.52	2.54	5.87
6 months	0.67	0.76	0.58	1.70

	Performance assumes reinvestment of distributions and does not account for taxes.
	Index and Lipper results should be compared to fund performance at net asset value. Lipper calculations for reinvested dividends may differ from actual performance.
*	Over the 6-month and 1-, 5-, and 10-year periods ended 10/31/05, there were 20, 20, 9, and 7 funds, respectively, in this Lipper category.

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Fund price and distribution information
For the six-month period ended 10/31/05
Distributions -- common shares
Number	6
Income1	$0.2683
Capital gains1	--
Total	$0.2683
	Series A
Distributions -- preferred shares	(200 shares)
Income1	$630.97
Capital gains1	--
Total	$630.97
Share value (common shares)	NAV	Market price
4/30/05	$13.75	$11.81
10/31/05	13.54	11.64
Current yield (common shares, end of period)
Current dividend rate2	3.88%	4.52%
Taxable equivalent3	6.80	7.92

1	Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally exempt funds 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 42.9% federal, state, and city tax rate for 2005. Results for investors subject to lower tax rates would not be as advantageous.

Fund performance for most recent calendar quarter

Total return for periods ended 9/30/05

	NAV	Market price
Annual average
Life of fund (since 11/27/92)	6.11%	4.42%
10 years	78.10	54.41
Annual average	5.94	4.44
5 years	38.09	23.45
Annual average	6.67	4.30
1 year	6.81	5.91
6 months	3.71	5.35

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Your fund’s management

Your fund is managed by the members of the Putnam Tax Exempt Fixed-Income Team. David Hamlin is the Portfolio Leader, and Paul Drury, Susan McCormack, and James St. John are Portfolio Members of your fund. The Portfolio Leader and Portfolio Members coordinate the team’s management of the fund.

For a complete listing of the members of the Putnam Tax Exempt Fixed-Income Team, including those who are not Portfolio Leaders or Portfolio Members of your fund, visit Putnam’s Individual Investor Web site at www.putnam.com.

Fund ownership by the Portfolio Leader and Portfolio Members

The table below shows how much the fund’s current Portfolio Leader and Portfolio Members have invested in the fund (in dollar ranges). Information shown is as of October 31, 2005, and October 31, 2004.

			$1 --	$10,001 --	$50,001 --	$100,001 --	$500,001 --	$1,000,001
	Year	$0	$10,000	$50,000	$100,000	$500,000	$1,000,000	and over
David Hamlin	2005	*
Portfolio Leader	2004	*
Paul Drury	2005	*
Portfolio Member	2004	*
Susan McCormack	2005	*
Portfolio Member	2004	*
James St. John	2005	*
Portfolio Member	2004	*

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Fund manager compensation

The total 2004 fund manager compensation that is attributable to your fund is approximately $10,000. This amount includes a portion of 2004 compensation paid by Putnam Management to the fund managers listed in this section for their portfolio management responsibilities, calculated based on the fund assets they manage taken as a percentage of the total assets they manage. The compensation amount also includes a portion of the 2004 compensation paid to the Chief Investment Officer of the team and the Group Chief Investment Officer of the fund’s broader investment category for their oversight responsibilities, calculated based on the fund assets they oversee taken as a percentage of the total assets they oversee. This amount does not include compensation of other personnel involved in research, trading, administration, systems, compliance, or fund operations; nor does it include non-compensation costs. These percentages are determined as of the fund’s fiscal period-end. For personnel who joined Putnam Management during or after 2004, the calculation reflects annualized 2004 compensation or an estimate of 2005 compensation, as applicable.

Other Putnam funds managed by the Portfolio Leader and Portfolio Members

David Hamlin is the Portfolio Leader and Paul Drury, Susan McCormack, and James St. John are Portfolio Members for Putnam’s tax-exempt funds for the following states: Arizona, California, Florida, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio, and Pennsylvania. The same group also manages Putnam AMT-Free Insured Municipal Fund, Putnam California Investment Grade Municipal Trust, Putnam High Yield Municipal Trust, Putnam Investment Grade Municipal Trust, Putnam Managed Municipal Income Trust, Putnam Municipal Bond Fund, Putnam Municipal Opportunities Trust, Putnam Tax Exempt Income Fund, Putnam Tax-Free Health Care Fund, and Putnam Tax-Free High Yield Fund.

David Hamlin, Paul Drury, Susan McCormack, and James St. John may also manage other accounts and variable trust funds advised by Putnam Management or an affiliate.

Changes in your fund’s Portfolio Leader and Portfolio Members

Your fund’s Portfolio Leader and Portfolio Members did not change during the year ended October 31, 2005.

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Fund ownership by Putnam’s Executive Board

The table below shows how much the members of Putnam’s Executive Board have invested in the fund (in dollar ranges). Information shown is as of October 31, 2005, and October 31, 2004.

			$1 --	$10,001 --	$50,001--	$100,001
	Year	$0	$10,000	$50,000	$100,000	and over
Philippe Bibi	2005	*
Chief Technology Officer	2004	*
Joshua Brooks	2005	*
Deputy Head of Investments	N/A
William Connolly	2005	*
Head of Retail Management	N/A
Kevin Cronin	2005	*
Head of Investments	2004	*
Charles Haldeman, Jr.	2005		*
President and CEO	2004	*
Amrit Kanwal	2005	*
Chief Financial Officer	2004	*
Steven Krichmar	2005	*
Chief of Operations	2004	*
Francis McNamara, III	2005	*
General Counsel	2004	*
Richard Robie, III	2005	*
Chief Administrative Officer	2004	*
Edward Shadek	2005	*
Deputy Head of Investments	N/A
Sandra Whiston	2005	*
Head of Institutional Management	N/A

N/A indicates the individual was not a member of Putnam’s Executive Board as of 10/31/04.

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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 any outstanding 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 exchanges such as the American Stock Exchange and the New York Stock Exchange.

Comparative indexes

JP Morgan Global High Yield Index is an unmanaged index of global high-yield fixed-income securities.

Lehman Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.

Lehman Government Bond Index is an unmanaged index of U.S. Treasury and agency securities.

Lehman Municipal Bond Index is an unmanaged index of long-term fixed-rate investment-grade tax-exempt bonds.

Russell 1000 Index is an unmanaged index of the 1,000 largest companies in the Russell 3000 Index.

Russell 2000 Index is an unmanaged index of the 2,000 smallest companies in the Russell 3000 Index.

S&P 500 Index is an unmanaged index of common stock performance.

Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.

Lipper is a third-party industry-ranking entity that ranks mutual funds. Lipper rankings are based on total return at net asset value and do not reflect sales charges. Funds are ranked among other funds with similar current investment styles or objectives as determined by Lipper. Lipper category averages reflect performance trends for funds within a category.

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Trustee approval of
management contract

General conclusions

The Board of Trustees of the Putnam funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of your fund’s management contract with Putnam Management. In this regard, the Board of Trustees, with the assistance of its Contract Committee consisting solely of Trustees who are not “interested persons” (as such term is defined in the Investment Company Act of 1940, as amended) of the Putnam funds (the “Independent Trustees”), requests and evaluates all information it deems reasonably necessary under the circumstances. Over the course of several months beginning in March and ending in June 2005, the Contract Committee met five times to consider the information provided by Putnam Management and other information developed with the assistance of the Board’s independent counsel and independent staff. The Contract Committee reviewed and discussed key aspects of this information with all of the Independent Trustees. Upon completion of this review, the Contract Committee recommended and the Independent Trustees approved the continuance of your fund’s management contract, effective July 1, 2005.

This approval was based on the following conclusions:

• That the fee schedule currently in effect for your fund, subject to certain changes noted below, represents reasonable compensation in light of the nature and quality of the services being provided to the fund, the fees paid by competitive funds and the costs incurred by Putnam Management in providing such services, and
  
  
• That such fee schedule represents an appropriate sharing between fund shareholders and Putnam Management of such economies of scale as may exist in the management of the fund at current asset levels.

These conclusions were based on a comprehensive consideration of all information provided to the Trustees and were not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered these factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors. It is also important to recognize that the fee arrangements for your fund and the other Putnam funds are the result of many years of review and discussion between the Independent Trustees and Putnam Management, that certain aspects of such arrangements may receive greater scrutiny in some years than others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements in prior years.

Model fee schedules and categories; total expenses

The Trustees’ review of the management fees and total expenses of the Putnam funds focused on three major themes:

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• Consistency. The Trustees, working in cooperation with Putnam Management, have devel- oped and implemented a series of model fee schedules for the Putnam funds designed to ensure that each fund’s management fee is consistent with the fees for similar funds in the Putnam family of funds and compares favorably with fees paid by competitive funds spon- sored by other investment advisors. Under this approach, each Putnam fund is assigned to one of several fee categories based on a combination of factors, including competitive fees and perceived difficulty of management, and a common fee schedule is implemented for all funds in a given fee category. The Trustees reviewed the model fee schedules currently in effect for the Putnam funds, including fee levels and breakpoints, and the assignment of your fund to a particular fee category under this structure. (“Breakpoints” refer to reductions in fee rates that apply to additional assets once specified asset levels are reached.)

Since their inception, Putnam’s closed-end funds have generally had management fees that are higher than those of Putnam’s open-end funds pursuing comparable investment strategies. These differences ranged from five to 20 basis points. The Trustees have reexamined this matter and recommend that these differences be conformed to a uniform five basis points. As a result, the Trustees approved a reduction in the management fees for your fund. Under the new fee schedule, the fund pays a quarterly fee to Putnam Management at the lower of the following rates:

(a)	0.55% of the fund’s average net assets (including assets attributable to both common and preferred shares) or
(b)	0.65% of the first $500 million of the fund’s average net assets (including assets attributable to both common and preferred shares); 0.55% of the next $500 million; 0.50% of the next $500 million; 0.45% of the next $5 billion; 0.425% of the next $5 billion; 0.405% of the next $5 billion; 0.39% of the next $5 billion; and 0.38% thereafter

The new fee schedule for your fund will result in lower management fees paid by common shareholders. The Trustees approved the new fee schedule for your fund effective as of January 1, 2006, in order to provide Putnam Management an opportunity to accommodate the impact on revenues in its budget process for the coming year.

• Competitiveness. The Trustees also reviewed comparative fee and expense information for competitive funds, which indicated that, in a custom peer group of competitive funds selected by Lipper Inc., your fund ranked in the 71st percentile in management fees and in the 86th percentile in total expenses as of December 31, 2004 (the first percentile being the least expensive funds and the 100th percentile being the most expensive funds). The Trustees

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expressed their intention to monitor this information closely to ensure that fees and expenses of the Putnam funds continue to meet evolving competitive standards.


• Economies of scale. The Trustees concluded that the fee schedule currently in effect for your fund, subject to the changes noted above, represents an appropriate sharing of economies of scale at current asset levels. The Trustees examined the existing breakpoint structure of the Putnam funds’ management fees in light of competitive industry practices. The Trustees consid- ered various possible modifications to the Putnam Funds’ current breakpoint structure, but ultimately concluded that the current breakpoint structure continues to serve the interests of fund shareholders. Accordingly, the Trustees continue to believe that the fee schedules currently in effect for the funds, subject to the changes noted above, represent an appropriate sharing of economies of scale at current asset levels.

In connection with their review of the management fees and total expenses of the Putnam funds, the Trustees also reviewed the costs of the services to be provided and profits to be realized by Putnam Management and its affiliates from the relationship with the funds. This information included trends in revenues, expenses and profitability of Putnam Management and its affiliates relating to the investment management and distribution services provided to the funds. In this regard, the Trustees also reviewed an analysis of Putnam Management’s revenues, expenses and profitability with respect to the funds’ management contracts, allocated on a fund-by-fund basis.

Investment performance

The quality of the investment process provided by Putnam Management represented a major factor in the Trustees’ evaluation of the quality of services provided by Putnam Management under your fund’s management contract. The Trustees were assisted in their review of the funds’ investment process and performance by the work of the Investment Oversight Committees of the Trustees, which meet on a regular monthly basis with the funds’ portfolio teams throughout the year. The Trustees concluded that Putnam Management generally provides a high-quality investment process -- as measured by the experience and skills of the individuals assigned to the management of fund portfolios, the resources made available to such personnel, and in general the ability of Putnam Management to attract and retain high-quality personnel -- but also recognize that this does not guarantee favorable investment results for every fund in every time period. The Trustees considered the investment performance of each fund over multiple time periods and considered information comparing the fund’s performance with various benchmarks and with the performance of competitive funds. The Trustees noted the satisfactory investment performance of many Putnam funds. They also noted the disappointing investment performance of certain funds in recent years and continued to discuss with senior management of Putnam Management the factors contributing to such underperformance and actions being taken to improve performance. The Trustees recognized that, in recent years, Putnam Management has made significant changes in its investment personnel and processes and in the fund product line

20

to address areas of underperformance. The Trustees indicated their intention to continue to monitor performance trends to assess the effectiveness of these changes and to evaluate whether additional remedial changes are warranted.

In the case of your fund, the Trustees considered that your fund’s common share performance at net asset value was in the following percentiles of its Lipper Inc. peer group (compared using tax-adjusted performance to recognize the different federal income tax treatment for capital gains distributions and exempt-interest distributions) for the one-, three- and five-year periods ended December 31, 2004 (the first percentile being the best-performing funds and the 100th percentile being the worst-performing funds):

One-year period	Three-year period	Five-year period
70th	76th	69th

(Because of the passage of time, these performance results may differ from the performance results for more recent periods shown elsewhere in this report.) The Trustees noted the disappointing performance for your fund for the three-year period ended December 31, 2004. In this regard, the Trustees considered that the fund generally uses less investment leverage than the other closed-end funds in its Lipper peer group. Because investment leverage has the potential to increase a fund’s yield under some market conditions, the fund’s lower use of leverage may at times cause its performance to trail the performance of its peer group.

As a general matter, the Trustees believe that cooperative efforts between the Trustees and Putnam Management represent the most effective way to address investment performance problems. The Trustees believe that investors in the Putnam funds have, in effect, placed their trust in the Putnam organization, under the oversight of the funds’ Trustees, to make appropriate decisions regarding the management of the funds. Based on the responsiveness of Putnam Management in the recent past to Trustee concerns about investment performance, the Trustees believe that it is preferable to seek change within Putnam Management to address performance shortcomings. In the Trustees’ view, the alternative of terminating a management contract and engaging a new investment advisor for an underperforming fund would entail significant disruptions and would not provide any greater assurance of improved investment performance.

Brokerage and soft-dollar allocations; other benefits

The Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contract with your fund. These include principally benefits related to brokerage and soft-dollar allocations, whereby a portion of the commissions paid by a fund for brokerage is earmarked to pay for research services that may be utilized by a fund’s investment advisor. The Trustees believe that soft-dollar credits and other potential benefits associated with the allocation of fund brokerage, which pertains mainly to funds investing in equity securities, represent assets of the funds that should be used for the benefit of fund shareholders. This area has been marked by significant change in recent years. In

21

July 2003, acting upon the Contract Committee’s recommendation, the Trustees directed that allocations of brokerage to reward firms that sell fund shares be discontinued no later than December 31, 2003. In addition, commencing in 2004, the allocation of brokerage commissions by Putnam Management to acquire research services from third-party service providers has been significantly reduced, and continues at a modest level only to acquire research that is customarily not available for cash. The Trustees will continue to monitor the allocation of the funds’ brokerage to ensure that the principle of “best price and execution” remains paramount in the portfolio trading process.

The Trustees’ annual review of your fund’s management contract also included the review of your fund’s custodian agreement with Putnam Fiduciary Trust Company, which provides benefits to affiliates of Putnam Management.

Comparison of retail and institutional fee schedules

The information examined by the Trustees as part of their annual contract review has included for many years information regarding fees charged by Putnam Management and its affiliates to institutional clients such as defined benefit pension plans, college endowments, etc. This information included comparison of such fees with fees charged to the funds, as well as a detailed assessment of the differences in the services provided to these two types of clients. The Trustees observed, in this regard, that the differences in fee rates between institutional clients and the mutual funds are by no means uniform when examined by individual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients reflect to a substantial degree historical competitive forces operating in separate market places. The Trustees considered the fact that fee rates across all asset sectors are higher on average for mutual funds than for institutional clients, as well as the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to institutional clients of the firm, but have not relied on such comparisons to any significant extent in concluding that the management fees paid by your fund are reasonable.

22

Other information
for shareholders

Important notice regarding share repurchase program

In October 2005, the Trustees of your fund authorized Putnam Investments to implement a repurchase program on behalf of your fund, which would allow your fund to repurchase up to 5% of its outstanding shares over the 12 months following the announcement.

Important notice regarding delivery of shareholder documents

In accordance with SEC regulations, Putnam sends a single copy of annual and semiannual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2005, are available on the Putnam Individual Investor Web site, www.putnam.com/individual, and on the SEC’s Web site, www.sec.gov. If you have questions about finding forms on the SEC’s Web site, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain the fund’s Forms N-Q on the SEC’s Web site at www.sec.gov. In addition, the fund’s Forms N-Q may be reviewed and copied at the SEC’s public reference room in Washington, D.C. You may call the SEC at 1-800-SEC-0330 for information about the SEC’s Web site or the operation of the public reference room.

23

Financial statements

A guide to financial statements

These sections of the report, as well as the accompanying Notes, 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 liquidation preference of remarketed preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings -- from dividends and interest income -- and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings -- as well as any unrealized gains or losses over the period -- is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, 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.

24

The fund's portfolio 10/31/05 (Unaudited)
Key to abbreviations
AMBAC AMBAC Indemnity Corporation	G.O. Bonds General Obligation Bonds
FGIC Financial Guaranty Insurance Company	MBIA MBIA Insurance Company
FSA Financial Security Assurance	U.S. Govt. Coll. U.S. Government Collateralized
MUNICIPAL BONDS AND NOTES (122.3%)*
	Rating **		Principal amount		Value
New York (118.2%)
Albany Cnty., Indl. Dev. Agcy. Rev. Bonds
(Albany College of Pharmacy), Ser. A,
5 3/8s, 12/1/24	BBB-	$	300,000	$	310,107
Albany, Indl. Dev. Agcy. Civic Fac. Rev. Bonds
(Charitable Leadership), Ser. A , 6s, 7/1/19	Baa3		250,000		267,408
Chemung Cnty., Indl. Dev. Agcy. Civic Fac.
Rev. Bonds (Arnot Ogden Med. Ctr.), 5s, 11/1/34	A3		500,000		501,630
Dutchess Cnty., Indl. Dev. Agcy. Civic Fac. Rev.
Bonds (Bard College), 5 3/4s, 8/1/30	A3		700,000		750,057
Essex Cnty., Indl. Dev. Agcy. Rev. Bonds (Intl.
Paper Co.), Ser. A, 5 1/2s, 10/1/26	Baa2		250,000		254,585
Geneva, Indl. Dev. Agcy. Rev. Bonds
(Hobart & William Smith), Ser. A, 5 3/8s, 2/1/33	A		500,000		524,550
Hempstead, Indl. Dev. Agcy. Civic Fac.
Rev. Bonds (Hofstra U.), 5 1/4s, 7/1/16	A		395,000		415,038
Long Island, Pwr. Auth. NY Elec. Syst. Rev.
Bonds, Ser. A
5 1/4s, 12/1/26	A3		750,000		784,380
AMBAC, 5s, 9/1/29	Aaa		2,000,000		2,072,060
Madison Cnty., Indl. Dev. Agcy. Rev. Bonds
(Colgate U.), Ser. A, 5s, 7/1/23	Aa3		1,000,000		1,043,890
Metro. Trans. Auth. Rev. Bonds, Ser. A,
FSA, 5s, 11/15/30	Aaa		1,000,000		1,029,840
Metro. Trans. Auth. Svc. Contract Rev. Bonds
(Trans. Fac.), Ser. O, U.S. Govt. Coll.,
5 3/4s, 7/1/13	AAA		500,000		548,600
Ser. A , MBIA, 5 1/2s, 1/1/20	Aaa		1,000,000		1,093,620
Monroe Cnty., Indl. Dev. Agcy. Civic Fac. Rev. Bonds
(Highland Hosp. Rochester), 5s, 8/1/25	Baa1		250,000		251,515
Niagara Cnty., Indl. Dev. Agcy. Rev. Bonds, Ser. C,
5 5/8s, 11/15/24	Baa3		450,000		469,206
NY City, G.O. Bonds
Ser. I, U.S. Govt. Coll., 6 1/4s, 4/15/17
(Prerefunded)	Aaa		185,000		194,994
AMBAC, 6.05s, 9/1/11	Aaa		400,000		402,896
Ser. B, 5 3/4s, 8/1/16	A1		1,000,000		1,095,680
Ser. B, 5 1/2s, 12/1/31	A1		300,000		318,735
Ser. B, U.S. Govt. Coll., 5 1/2s, 12/1/31
(Prerefunded)	AAA		700,000		772,807
Ser. M, 5s, 4/1/24	A1		500,000		514,735

25

MUNICIPAL BONDS AND NOTES (122.3%)* continued
	Rating **		Principal amount		Value
New York continued
NY City, Hlth. & Hosp. Corp. Rev. Bonds
(Hlth. Syst.), Ser. A , 5 3/8s, 2/15/26	A2	$	300,000	$	309,567
NY City, Indl. Dev. Agcy. Rev. Bonds
(Brooklyn Navy Yard Cogen. Partners),
5.65s, 10/1/28	BBB--		750,000		742,260
NY City, Indl. Dev. Agcy. Civic Fac. Rev. Bonds
(Staten Island U. Hosp.), Ser. A, 6 3/8s, 7/1/31	B2		350,000		355,170
(Brooklyn Polytech. U. Project J), 6 1/8s, 11/1/30	BB+		250,000		249,523
(St. Francis College), 5s, 10/1/34	A--		250,000		254,125
NY City, Indl. Dev. Agcy. Special Arpt. Fac. Rev.
Bonds (Airis JFK I LLC), Ser. A, 5 1/2s, 7/1/28	Baa3		700,000		690,137
NY City, Indl. Dev. Agcy. Special Fac. Rev. Bonds
(Terminal One Group Assn.), 6s, 1/1/15	A3		1,000,000		1,005,530
(British Airways PLC), 5 1/4s, 12/1/32	Ba2		100,000		85,745
NY City, Muni. Wtr. & Swr. Fin. Auth. Rev. Bonds,
Ser. G, FSA, 5s, 6/15/34	Aaa		500,000		512,510
NY Cntys., Tobacco Trust II Rev. Bonds
(Tobacco Settlement), 5 3/4s, 6/1/43	BBB		1,000,000		1,050,130
NY Cntys., Tobacco Trust III Rev. Bonds
(Tobacco Settlement), 6s, 6/1/43	BBB		300,000		319,689
NY Cntys., Tobacco Trust IV Rev. Bonds,
Ser. A, 5s, 6/1/38	BBB		1,000,000		972,700
NY State Dorm. Auth. Rev. Bonds
(State U. Edl. Fac.), Ser. A, 7 1/2s, 5/15/13	AA--		875,000		1,066,756
(Mount Sinai Hlth.), Ser. A, 6 1/2s, 7/1/25	Ba1		250,000		265,033
(Mental Hlth.), Ser. A, 5 3/4s,
2/15/27 (Prerefunded)	AA--		45,000		47,328
(Mental Hlth.), Ser. A, 5 3/4s, 2/15/27	AA--		25,000		26,161
(Winthrop-U. Hosp. Assn.), Ser. A,
5 1/2s, 7/1/32	Baa1		450,000		467,334
(Dept. of Hlth.), 5 1/2s, 7/1/25 (Prerefunded)	AA--		870,000		900,859
(Dept. of Hlth.), 5 1/2s, 7/1/25	AA--		630,000		652,346
(North Shore Long Island Jewish Group),
5 3/8s, 5/1/23	A3		600,000		629,580
(NY Methodist Hosp.), 5 1/4s, 7/1/17	A3		300,000		317,295
(School Dist. Fin.), Ser. A, MBIA, 5 1/4s, 4/1/11	Aaa		1,000,000		1,079,930
(Lenox Hill Hosp. Oblig. Group), 5 1/4s, 7/1/08	Ba2		250,000		255,898
(NY U.), Ser. 2, AMBAC, 5s, 7/1/41	Aaa		1,500,000		1,528,770
(Rochester U.), Ser. A, 5s, 7/1/34	A1		500,000		510,895
(NYU), Ser. A, FGIC, 5s, 7/1/29	Aaa		1,000,000		1,035,480
Ser. A, FGIC, 5s, 3/15/27 (Prerefunded)	Aaa		1,000,000		1,082,440
(Dept. of Hlth.), Ser. 2, FGIC, 5s, 7/1/22	Aaa		1,000,000		1,046,430
NY State Dorm. Auth. Lease Rev. Bonds
(State U. Dorm. Facs.), Ser. A, MBIA, 5s, 7/1/24	Aaa		1,000,000		1,049,960
NY State Energy Research & Dev. Auth. Fac.
Mandatory Put Bonds, 4.7s, 10/1/12	A1		500,000		504,455
NY State Energy Research & Dev. Auth. Gas Fac. Rev.
Bonds (Brooklyn Union Gas), 6.952s, 7/1/26	A+		400,000		417,036
NY State Env. Fac. Corp. Rev. Bonds, 5s, 6/15/32	Aaa		250,000		257,973

26

MUNICIPAL BONDS AND NOTES (122.3%)* continued
	Rating **		Principal amount		Value
New York continued
NY State Env. Fac. Corp. Poll. Control Rev. Bonds
(State Wtr. Revolving Fund), Ser. A, 7 1/2s, 6/15/12	Aaa	$	125,000	$	134,838
NY State Hwy. Auth. Rev. Bonds
(Hwy. & Bridge Trust Fund), Ser. B, FGIC, 5s, 4/1/17	AAA		250,000		267,535
NY State Pwr. Auth. Rev. Bonds, 5s, 11/15/20	Aa2		750,000		786,203
NY State Thruway Auth. Rev. Bonds, Ser. A, MBIA
5 1/4s, 4/1/13	Aaa		1,000,000		1,091,510
5 1/4s, 4/1/12	Aaa		1,000,000		1,085,930
NY State Urban Dev. Corp. Rev. Bonds
(Personal Income Tax), Ser. C-1, 5s,
3/15/33 (Prerefunded)	AA		1,000,000		1,079,100
Port Auth. NY & NJ Cons. Rev. Bonds,
Ser. 124, 5s, 8/1/31	AA--		1,000,000		1,012,980
Port. Auth. NY & NJ Special Oblig. Rev. Bonds
(JFK Intl. Air Term. -- 6), MBIA, 5.9s, 12/1/17	Aaa		1,500,000		1,595,040
Sales Tax Asset Receivable Corp. Rev. Bonds,
Ser. A, MBIA, 5s, 10/15/25	Aaa		1,425,000		1,493,030
Saratoga Cnty., Indl. Dev. Agcy. Civic Fac. Rev.
Bonds (Saratoga Hosp.), Ser. A, 5s, 12/1/13	BBB+		100,000		104,038
Suffolk Cnty., Indl. Dev. Agcy. Civic Fac. Rev. Bonds
(Huntington Hosp.), Ser. B, 5 7/8s, 11/1/32	Baa1		500,000		522,855
Tobacco Settlement Fin. Auth. Rev. Bonds,
Ser. A-1, 5 1/2s, 6/1/18	AA--		1,000,000		1,081,760
Triborough Bridge & Tunnel Auth. Rev.
Bonds, Ser. A
5s, 1/1/32 (Prerefunded)	Aa2		845,000		909,812
5s, 1/1/32	Aa2		155,000		159,456
Westchester Cnty., Indl Dev. Agcy. Civic Fac. Rev.
Bonds (Guiding Eyes for the Blind), 5 3/8s, 8/1/24	BBB		165,000		170,636
Westchester, Tobacco Asset Securitization Corp. Rev.
Bonds, 5 1/8s, 6/1/38	BBB		500,000		499,585
Yonkers, Indl. Dev. Agcy. Civic Fac. Rev. Bonds
(St. John's Riverside Hosp.), Ser. A, 7 1/8s, 7/1/31	BB		250,000		257,630
					45,557,316
Puerto Rico (4.1%)
Children's Trust Fund Tobacco Settlement Rev. Bonds,
5 1/2s, 5/15/39	BBB		750,000		772,770
Cmnwlth. of PR, Hwy. & Trans. Auth. Rev. Bonds,
Ser. K, 5s, 7/1/17	BBB+		500,000		524,980
PR Indl. Tourist Edl. Med. & Env. Control Fac. Rev.
Bonds (Cogen. Fac.-AES), 6 5/8s, 6/1/26	Baa3		250,000		268,311
					1,566,061
TOTAL INVESTMENTS
Total investments (cost $45,409,204)				$	47,123,377

27

*	Percentages indicated are based on net assets of $38,524,230.
**	The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings available at October 31, 2005 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, 2005. Securities rated by Putnam are indicated by “/P”. Security ratings are defined in the Statement of Additional Information.
	The rates shown on Mandatory Put Bonds are the current interest rates at October 31, 2005. The dates shown on Mandatory Put Bonds are the next mandatory put dates.
	The fund had the following industry group concentrations greater than 10% at October 31, 2005 (as a percentage of net assets):

Transportation	23.2%
Education	19.9
Utilities	14.5
Health care	14.2

The fund had the following insurance concentrations greater than 10% at October 31, 2005
(as a percentage of net assets):

MBIA	22.0%
AMBAC	10.4

The accompanying notes are an integral part of these financial statements.

28

Statement of assets and liabilities 10/31/05 (Unaudited)
ASSETS
Investments in securities, at value (identified cost $45,409,204) (Note 1)	$47,123,377
Cash	1,004,642
Interest and other receivables	717,203
Total assets	48,845,222
LIABILITIES
Distributions payable to common shareholders	124,679
Accrued preferred shares distribution payable (Note 1)	11,148
Payable for shares of the fund repurchased	10,136
Payable for compensation of Manager (Note 2)	82,393
Payable for investor servicing and custodian fees (Note 2)	3,557
Payable for Trustee compensation and expenses (Note 2)	27,608
Payable for administrative services (Note 2)	1,059
Other accrued expenses	60,412
Total liabilities	320,992
Series A remarketed preferred shares: 200 shares authorized
and outstanding at $50,000 per share (Note 4)	10,000,000
Net assets applicable to common shares outstanding	$38,524,230
REPRESENTED BY
Paid-in capital -- common shares (Unlimited capital shares authorized) (Note 1)	$38,769,621
Undistributed net investment income (Note 1)	4,755
Accumulated net realized loss on investments (Note 1)	(1,964,319)
Net unrealized appreciation of investments	1,714,173
Total -- Representing net assets applicable to common shares outstanding	$38,524,230
COMPUTATION OF NET ASSET VALUE
Net asset value per common share
($38,524,230 divided by 2,845,253 shares)	$13.54

The accompanying notes are an integral part of these financial statements.

29

Statement of operations Six months ended 10/31/05 (Unaudited)
INTEREST INCOME		$1,146,691
EXPENSES
Compensation of Manager (Note 2)		162,923
Investor servicing fees (Note 2)		9,843
Custodian fees (Note 2)		13,101
Trustee compensation and expenses (Note 2)		7,760
Administrative services (Note 2)		6,817
Auditing		39,440
Preferred share remarketing agent fees		12,558
Other		39,980
Total expenses		292,422
Expense reduction (Note 2)		(9,682)
Net expenses		282,740
Net investment income		863,951
Net realized gain on investments (Notes 1 and 3)		8,037
Net realized gain on futures contracts (Note 1)		2,050
Net unrealized depreciation of investments during the period		(582,177)
Net loss on investments		(572,090)
Net increase in net assets resulting from operations	$	291,861
DISTRIBUTIONS TO SERIES A REMARKETED PREFERRED SHAREHOLDERS: (NOTE 1)
From tax exempt income		(126,193)
Net increase in net assets resulting from operations
(applicable to common shareholders)	$	165,668

The accompanying notes are an integral part of these financial statements.

30

Statement of changes in net assets
INCREASE (DECREASE) IN NET ASSETS
	Six months ended	Year ended
	10/31/05*	4/30/05
Operations:
Net investment income	$ 863,951	$ 1,821,544
Net realized gain on investments	10,087	461,922
Net unrealized appreciation (depreciation) of investments	(582,177)	1,329,639
Net increase in net assets resulting from operations	291,861	3,613,105
Distributions to Series A remarketed
preferred shareholders: (Note 1)
From tax exempt income	(126,193)	(157,765)
Net increase in net assets resulting from operations
(applicable to common shareholders)	165,668	3,455,340
Distributions to common shareholders: (Note 1)
From tax exempt income	(763,730)	(1,845,720)
Decrease from shares repurchased (Note 5)	(21,434)	--
Total increase (decrease) in net assets	(619,496)	1,609,620
NET ASSETS
Beginning of period	39,143,726	37,534,106
End of period (including undistributed net investment
income of $4,755 and $30,727, respectively)	$38,524,230	$39,143,726
NUMBER OF FUND SHARES
Common shares outstanding at beginning of period	2,847,092	2,847,092
Shares repurchased (Note 5)	(1,839)	--
Common shares outstanding at end of period	2,845,253	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.

31

Financial highlights (For a common share outstanding throughout the period)

PER-SHARE OPERATING PERFORMANCE
	Six months ended**			Year ended
	10/31/05	4/30/05	4/30/04	4/30/03	4/30/02	4/30/01
Net asset value,
beginning of period
(common shares)	$13.75	$13.18	$13.37	$13.32	$13.45	$12.81
Investment operations:
Net investment income (a)	.30	.64	.72	.83	.88	.83
Net realized and unrealized
gain (loss) on investments	(.20)	.64	(.18)	(.02)	(.23)	.72
Total from
investment operations	.10	1.28	.54	.81	.65	1.55
Distributions to
preferred shareholders:
From net investment income	(.04)	(.06)	(.03)	(.04)	(.07)	(.13)
Total from
investment operations
(applicable to
common shareholders)	.06	1.22	.51	.77	.58	1.42
Distributions to
common shareholders:
From net investment income	(.27)	(.65)	(.70)	(.72)	(.71)	(.78)
Total distributions	(.27)	(.65)	(.70)	(.72)	(.71)	(.78)
Net asset value,
end of period
(common shares)	$13.54	$13.75	$13.18	$13.37	$13.32	$13.45
Market price,
end of period
(common shares)	$11.64	$11.81	$11.35	$11.99	$12.12	$12.46
Total return
at market price (%)
(common shares) (b)	0.76*	9.90	0.26	4.88	2.96	10.28
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(common shares)
(in thousands)	$38,524	$39,144	$37,534	$38,063	$37,917	$38,288
Ratio of expenses to average
net assets (%)(c,d)	.75*	1.39	1.33	1.36	1.35	1.41
Ratio of net investment
income to average
net assets (%)(c)	1.88*	4.35	5.06	5.84	5.96	5.25
Portfolio turnover rate (%)	8.84*	35.82	21.43	35.93	25.16	15.65

(Continued on next page)

32

Financial highlights (Continued)

*	Not annualized.
**	Unaudited.

(a)	Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period.
(b)	Total return assumes dividend reinvestment.
(c)	Ratios reflect net assets available to common shares only; net investment income ratio also reflects reduction for distributions to preferred shareholders.
(d)	Includes amounts paid through expense offset arrangements (Note 2).

The accompanying notes are an integral part of these financial statements.

33

Notes to financial statements 10/31/05 (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-diversi-fied, closed-end management investment company. The fund’s investment objective is to seek as high a level of current income exempt from federal income tax and New York State and City personal income tax, as Putnam Investment Management, LLC, (“Putnam Management”), the fund’s manager, an indirect wholly-owned subsidiary of Putnam, LLC, believes to be consistent with preservation of capital. The fund intends to achieve its objective by investing in investment grade municipal securities selected by Putnam Management. The fund may be affected by economic and political developments in the state of New York.

In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund expects the risk of material loss to be remote.

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 accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in 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 valued on the basis of valuations provided by an independent pricing service, approved by the Trustees. Such services use information with respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various relationships between securities in determining value. Other investments are valued at fair value following procedures approved by the Trustees. Such valuations and procedures are reviewed periodically by the Trustees.

B) Security transactions and related investment income Security transactions are recorded 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. All premiums/discounts are amortized/accreted on a yield-to-maturity basis. The premium in excess of the call price, if any, is amortized to the call date; thereafter, any remaining premium is amortized to maturity.

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 swaps or 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. Risks may exceed amounts recognized on the statement of assets and liabilities. 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. If a written call option is exercised, the premium originally received is recorded as an addition to sales proceeds. If a written put option is exercised, the premium originally received is recorded as a reduction to the cost of investments.

34

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin.” 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. Futures and written option contracts outstanding at period end, if any, are listed after the fund’s portfolio.

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 of 1986 (the “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 Code, 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, 2005, the fund had a capital loss carryover of $1,960,894 available to the extent allowed by tax law to offset future net capital gain, if any. The amount of the carryover and the expiration dates are:

Loss Carryover	Expiration
$ 433,833	April 30, 2008
311,893	April 30, 2011
1,215,168	April 30, 2012

The aggregate identified cost on a tax basis is $45,409,204, resulting in gross unrealized appreciation and depreciation of $1,810,781 and $96,608, respectively, or net unrealized appreciation of $1,714,173.

E) Distributions to shareholders Distributions to common and preferred shareholders from net investment income are recorded by the fund on the ex-dividend date. Distributions from 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, 2005 was 2.35% . The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.

F) Determination of net asset value Net asset value of the common shares is determined by dividing the value of all assets of the fund, less all liabilities and the liquidation preference of any outstanding remarketed preferred shares, by the total number of common shares outstanding as of period end.

Note 2: Management fee, administrative services and other transactions

Putnam Management is paid for management and investment advisory services quarterly based on the average net assets of the fund. Such fee is based on an annual rate of 0.65% of average weekly net assets attributable to common and preferred shares.

In June 2005, the Trustees and Putnam Management agreed to a reduced management fee structure for the fund that will go into effect on January 1, 2006. Effective on that date, the fund’s management fee is expected to be an annual rate of 0.55% of the average weekly net assets of the fund attributable to common and preferred shares (based on the fund’s current asset level).

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

35

income attributable to the proceeds of the remar-keted 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 0.65% 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, LLC. PFTC receives fees for custody services based on the fund’s asset level, the number of its security holdings and transaction volumes. Putnam Investor Services, a division of PFTC, provides investor servicing agent functions to the fund. Putnam Investor Services is paid a monthly fee for investor servicing at an annual rate of 0.05% of the fund’s average net assets. During the period ended October 31, 2005, the fund paid PFTC $22,944 for these services.

The fund has entered into an arrangement with PFTC whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the fund’s expenses. For the six months ended October 31, 2005, the fund’s expenses were reduced by $9,682 under these arrangements.

Each independent Trustee of the fund receives an annual Trustee fee, of which $234, as a quarterly retainer, 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, industry seminars and for certain compliance-related matters. Trustees also are reimbursed for expenses they incur relating to their services as Trustees. George Putnam, III, who is not an independent Trustee, also receives the foregoing fees for his services as Trustee.

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 and were first elected prior to 2004. 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 Trustee compensation and expenses in the statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.

Note 3: Purchases and sales of securities

During the six months ended October 31, 2005, cost of purchases and proceeds from sales of investment securities other than short-term investments aggregated $4,266,154 and $4,391,484, respectively. There were no purchases or sales of U.S. government securities.

Note 4: 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 may be required to apportion to

36

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 restrictions imposed by 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, 2005, no such restrictions have been placed on the fund.

Note 5: Share repurchase program

On October 7, 2005, the Trustees authorized Putnam Management to implement a share repurchase program pursuant to which the fund may, over the 12 months following the announcement, repurchase up to 5% of its common shares outstanding as of such date. Repurchases will only be made when the fund’s shares are trading at less than net asset value and at such times and amounts as is believed to be in the best interest of the fund’s shareholders.

For the period ended October 31, 2005, the fund repurchased 1,839 common shares for an aggregate purchase price of $21,434, which reflects a weighted-average discount from net asset value per share of 13.9% .

Note 6: Regulatory matters and litigation

Putnam Management has entered into agreements with the Securities and Exchange Commission and the Massachusetts Securities Division settling charges connected with excessive short-term trading by Putnam employees and, in the case of the charges brought by the Massachusetts Securities Division, by participants in some Putnam-administered 401(k) plans. Pursuant to these settlement agreements, Putnam Management will pay a total of $193.5 million in penalties and restitution, with $153.5 million being paid to shareholders and the funds. The amount will be allocated to shareholders and funds pursuant to a plan developed by an independent consultant, and will be paid following approval of the plan by the SEC and the Massachusetts Securities Division.

The Securities and Exchange Commission’s and Massachusetts Securities Division’s allegations and related matters also serve as the general basis for numerous lawsuits, including purported class action lawsuits filed against Putnam Management and certain related parties, including certain Putnam funds. Putnam Management will bear any costs incurred by Putnam funds in connection with these lawsuits. Putnam Management believes that the likelihood that the pending private lawsuits and purported class action lawsuits will have a material adverse financial impact on the fund is remote, and the pending actions are not likely to materially affect its ability to provide investment management services to its clients, including the Putnam funds.

Putnam Management and Putnam Retail Management are named as defendants in a civil suit in which the plaintiffs allege that the management and distribution fees paid by certain Putnam funds were excessive and seek recovery under the Investment Company Act of 1940. Putnam Management and Putnam Retail Management have contested the plaintiffs’ claims and the matter is currently pending in the U.S. District Court for the District of Massachusetts. Based on currently available information, Putnam Management believes that this action is without merit and that it is unlikely to have a material effect on Putnam Management’s and Putnam Retail Management’s ability to provide services to their clients, including the fund.

37

Shareholder meeting
results (Unaudited)

The annual meeting of shareholders of the fund was held on October 28, 2005.

At the meeting, each of the nominees for Trustees was elected, as follows:

		Common and preferred shares
	Votes for		Votes withheld
Jameson A. Baxter	2,143,854		308,030
Charles B. Curtis	2,142,404		309,480
Myra R. Drucker	2,142,404		309,480
Charles E. Haldeman, Jr.	2,143,854		308,030
Paul L. Joskow	2,143,854		308,030
Elizabeth T. Kennan	2,143,206		308,678
John H. Mullin, III	2,143,854		308,030
George Putnam, III	2,139,377		312,507
W. Thomas Stephens	2,142,404		309,480
Richard B. Worley	2,143,854		308,030
		Preferred shares
	Votes for		Votes withheld
John A. Hill	129		--
Robert E. Patterson	129		--
All tabulations rounded to the nearest whole number.

38

Fund information

About Putnam Investments

Founded over 65 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage over 100 mutual funds in growth, value, blend, fixed income, and international.

Investment Manager 

Putnam Investment 

Management, LLC 

One Post Office Square 

Boston, MA 02109 

Marketing Services 

Putnam Retail Management 

One Post Office Square 

Boston, MA 02109 

Custodian 

Putnam Fiduciary 

Trust Company 

Legal Counsel 

Ropes & Gray LLP 

Trustees 

John A. Hill, Chairman 

Jameson Adkins Baxter, 

Vice Chairman 

Charles B. Curtis 

Myra R. Drucker 

Charles E. Haldeman, Jr. 

Paul L. Joskow 

Elizabeth T. Kennan 

John H. Mullin, III 

Robert E. Patterson 

George Putnam, III 

W. Thomas Stephens 

Richard B. Worley 

Officers 

George Putnam, III 

President 

Charles E. Porter 

Executive Vice President, 

Associate Treasurer and 

Principal Executive Officer 

Jonathan S. Horwitz 

Senior Vice President 

and Treasurer 

Steven D. Krichmar 

Vice President and 

Principal Financial Officer 

Michael T. Healy 

Assistant Treasurer and 

Principal Accounting Officer 

Daniel T. Gallagher 

Senior Vice President, 

Staff Counsel and 

Compliance Liaison 

Beth S. Mazor 

Vice President 

James P. Pappas 

Vice President 

Richard S. Robie, III 

Vice President 

Mark C. Trenchard 

Vice President and 

BSA Compliance Officer 

Francis J. McNamara, III 

Vice President and 

Chief Legal Officer 

Charles A. Ruys de Perez 

Vice President and 

Chief Compliance Officer 

Judith Cohen 

Vice President, Clerk and 

Assistant Treasurer 

Wanda M. McManus 

Vice President, Senior Associate 

Treasurer and Assistant Clerk 

Nancy T. Florek 

Vice President, Assistant Clerk, 

Assistant Treasurer 

and Proxy Manager 

39

Call 1-800-225-1581 weekdays between 9:00 a.m. and 5:00 p.m. Eastern Time, or visit our Web site (www.putnam.com) anytime for up-to-date information about the fund’s NAV.

Item 2. Code of Ethics:

Not applicable

Item 3. Audit Committee Financial Expert:

Not applicable

Item 4. Principal Accountant Fees and Services:

Not applicable

Item 5. Audit Committee:

Not applicable

Item 6. Schedule of Investments:

Not applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End
Management Investment Companies:

Not applicable

Item 8. Purchases of Equity Securities by Investment Company and Affiliated Purchasers
Closed-End Management

Registrant Purchase of Equity Securities
				Maximum
			Total Number	Number (or
			of Shares	Approximate
			Purchased	Dollar Value)
			as Part	of Shares
			of Publicly	that May Yet Be
	Total Number	Average	Announced	Purchased
	of Shares	Price Paid	Plans or	under the Plans
Period	Purchased	per Share	Programs	or Programs
October 7-
October 31,2005	1,839	$11.66	1,839	140,516

The Board of Trustees announced a repurchase plan on October 7, 2005 for which 142,355 shares have been approved to be repurchased by the fund. The repurchase plan has been approved through October 6, 2006.

Item 9. Submission of Matters to a Vote of Security Holders:

Not applicable

Item 10. Controls and Procedures:

(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.

(b) Changes in internal control over financial reporting: Not applicable

Item 11. Exhibits:

(a) Not applicable

(b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Investment Company Act of 1940, as amended, and the officer certifications as required by Section 906 of the Sarbanes-Oxley Act of 2002 are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NAME OF REGISTRANT

By (Signature and Title):

/s/ Michael T. Healy
Michael T. Healy
Principal Accounting Officer

Date: December 29, 2005

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):

/s/ Charles E. Porter
Charles E. Porter
Principal Executive Officer

Date: December 29, 2005

By (Signature and Title):
/s/Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer

Date: December 29, 2005