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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANIES
Investment Company Act file number 811-06537
Invesco Van Kampen Trust for Investment Grade New York Municipals
(Exact name of registrant as specified in charter)
1555 Peachtree Street, N.E., Atlanta, Georgia 30309
(Address of principal executive offices) (Zip code)
Colin Meadows 1555 Peachtree Street, N.E., Atlanta, Georgia 30309
(Name and address of agent for service)
Registrant’s telephone number, including area code: (713) 626-1919
Date of fiscal year end: 2/28
Date of reporting period: 8/31/12
Item 1. Reports to Stockholders.
Semiannual Report to Shareholders § August 31, 2012
NYSE: VTN
2 |
Trust Performance | |
2 |
Trust Updates | |
3 |
Dividend Reinvestment Plan | |
4 |
Schedule of Investments | |
11 |
Financial Statements | |
14 |
Notes to Financial Statements | |
20 |
Financial Highlights | |
22 |
Approval of Investment Advisory and Sub-Advisory Agreements | |
24 |
Results of Proxy | |
Unless otherwise noted, all data provided by Invesco.
NOT FDIC INSURED |
MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
Trust Performance
Performance summary
Cumulative total returns, 2/29/12 to 8/31/12
Trust at NAV |
5.69 | % | ||
Trust at Market Value |
4.53 | |||
Barclays New York Municipal Index▼ |
2.70 | |||
Market Price
Premium to NAV as of 8/31/12 |
2.07 | |||
Source(s): ▼Barclays Capital via FactSet Research Systems Inc. |
||||
The performance data quoted represent past performance and cannot guarantee comparable future
results; current performance may be lower or higher. Investment return, net asset value and common
share market price will fluctuate so that you may have a gain or loss when you sell shares. Please
visit invesco.com/us for the most recent month-end performance. Performance figures reflect Trust
expenses, the reinvestment of distributions (if any) and changes in net asset value (NAV) for
performance based on NAV and changes in market price for performance based on market price.
Since the Trust is a closed-end management investment company, shares of the Trust may
trade at a discount or premium from the NAV. This characteristic is separate and distinct
from the risk that NAV could decrease as a result of investment activities and may be a
greater risk to investors expecting to sell their shares after a short time. The Trust cannot
predict whether shares will trade at, above or below NAV. The Trust should not be viewed as a
vehicle for trading purposes. It is designed primarily for risk-tolerant long-term investors.
The Barclays New York Municipal Index is an unmanaged
index considered representative of New York investment-grade municipal bonds.
The Trust is not managed to track the performance of any particular index, including the
index(es) defined here, and consequently, the performance of the Trust may deviate
significantly from the performance of the index(es).
A direct investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not reflect sales charges.
Trust Updates
Preferred Shares
On May 10, 2012, the Trust successfully priced and placed a private offering of Variable Rate Muni
Term Preferred Shares (“VMTP”) in the amount of $76,800,000 pursuant to an offering exempt from
registration under the Securities Act of 1933. VMTP is a variable rate form of preferred stock with
a mandatory redemption date. The proceeds of the VMTP were used to redeem all of the Trust’s
outstanding auction rate preferred shares (“ARPS”) at their liquidation preference (sometimes
referred to as “at par”), together with accrued and unpaid dividends, if any, to the redemption
date. As of June 1, 2012, all of the Trust’s ARPS were redeemed in full.
Merger, Redomestication and Upcoming Name Change
At a shareholder meeting held on August 14, 2012, shareholders of the Trust approved the merger of
Invesco New York Quality Municipal Securities (the “Target Fund”) into the Trust. Shareholders also
approved the redomestication of the Trust to a Delaware statutory trust. The redomestication and
merger were completed on August 27, 2012, and common shares of the Target Fund were converted into
newly issued common shares of the Trust. VMTP shares of the Target Fund were converted into newly
issued VMTP shares of the Trust.
In addition, the Trust will change its name to “Invesco Trust for Investment Grade New York
Municipals” effective December 3, 2012.
NYSE Symbol
|
VTN | |
2
Invesco Van Kampen Trust for Investment Grade New York Municipals
Dividend Reinvestment Plan
The dividend reinvestment plan (the Plan) offers you a prompt and simple way to reinvest your
dividends and capital gains distributions (Distributions) into additional shares of your Trust.
Under the Plan, the money you earn from Distributions will be reinvested automatically in more
shares of your Trust, allowing you to potentially increase your investment over time.
Plan benefits
| n | Add to your account: | |
| You may increase the amount of shares in your Trust easily and automatically with the Plan. | ||
| n | Low transaction costs: | |
| Shareholders who participate in the Plan are able to buy shares at below-market prices when the Trust is trading at a premium to its net asset value (NAV). In addition, transaction costs are low because when new shares are issued by a Trust, there is no fee, and when shares are bought in blocks on the open market, the per share fee is shared among all Participants. | ||
| n | Convenience: | |
| You will receive a detailed account statement from Computershare Trust Company, N.A. (the Agent) which administers the Plan. The statement shows your total Distributions, date of investment, shares acquired, and price per share, as well as the total number of shares in your reinvestment account. You can also access your account via the Internet. To do this, please go to invesco.com/us. | ||
| n | Safekeeping: | |
| The Agent will hold the shares it has acquired for you in safekeeping. |
How to participate in the Plan
If you own shares in your own name, you can participate directly in the Plan. If your shares are
held in “street name” – in the name of your brokerage firm, bank, or other financial institution
– you must instruct that entity to participate on your behalf. If they are unable to participate
on your behalf, you may request that they reregister your shares in your own name so that you may
enroll in the Plan.
How to enroll
To enroll in the Plan, please read the Terms and Conditions
in the Plan Brochure. You can
enroll in the Plan by visiting invesco.com/us, calling toll-free 800 341 2929 or notifying us
in writing at Invesco Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 43078,
Providence, RI 02940-3078. Please include your Trust name and account number and ensure that
all shareholders listed on the account sign these written instructions. Your participation in
the Plan will begin with the next Distribution payable after the Agent receives your
authorization, as long as they receive it before the “record date,” which is generally 10 business days
before such Distributions are paid. If your authorization arrives after such record date, your
participation in the Plan will begin with the following Distributions.
How the Plan works
If you choose to participate in the Plan, your Distributions will be promptly reinvested for you,
automatically increasing your reinvestment shares. If the Trust is trading at a share price that is
equal to its NAV, you’ll pay that amount for your reinvested shares. However, if the Trust is
trading above or below NAV, the price is determined by one of two ways:
| 1. | Premium: If the Trust is trading at a premium – a market price that is higher than its NAV – you’ll pay either the NAV or 95 percent of the market price, whichever is greater. When the Trust trades at a premium, you’ll pay less for your reinvested shares than an investor purchasing shares on the stock exchange. Keep in mind, a portion of your price reduction may be taxable because you are receiving shares at less than market price. |
| 2. | Discount: If the Trust is trading at a discount – a market price that is lower than NAV – you’ll pay the market price for your reinvested shares. |
Costs of the Plan
There is no direct charge to you for reinvesting Distributions because the Plan’s fees are paid by your Trust.
If your Trust is trading at or above its NAV, your new shares are issued directly by the Trust and there are no
brokerage charges or fees. However, if your Trust is trading at a discount, the shares are purchased on the
open market, and you will pay your portion of per share fees. These per share fees are typically less than the
standard brokerage charges for individual transactions because shares are purchased for all
Participants in blocks, resulting in lower fees for each individual Participant. Any service or per share
fees are added to the purchase price. Per share fees include any applicable brokerage commissions the Agent
is required to pay.
Tax implications
The automatic reinvestment of Distributions does not relieve you of any income tax that may
be due on Distributions. You will receive tax information annually to help you prepare your
federal income tax return.
Invesco does not offer tax advice. The tax information contained herein is general and is not
exhaustive by nature. It was not intended or written to be used, and it cannot be used, by any
taxpayer for avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws.
Federal and state tax laws are complex and constantly changing. Shareholders should always consult
a legal or tax adviser for information concerning their individual situation.
How to withdraw from the Plan
You may withdraw from the Plan at any time by calling 800 341 2929, visiting invesco.com/us or
by writing to Invesco Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 43078,
Providence, RI 02940-3078. Simply indicate that you would like to withdraw from the Plan, and be
sure to include your Trust name and account number. Also, ensure that all shareholders listed on
the account have signed these written instructions. If you withdraw, you have three options with
regard to the shares held in the Plan:
| 1. | If you opt to continue to hold your non-certificated whole shares (Investment Plan Book Shares), they will be held by the Agent electronically as Direct Registration Book-Shares (Book-Entry Shares) and fractional shares will be sold at the then-current market price. Proceeds will be sent via check to your address of record after deducting applicable fees. |
| 2. | If you opt to sell your shares through the Agent, we will sell all full and fractional shares and send the proceeds via check to your address of record after deducting a $2.50 service fee and applicable per share fees. Per share fees include any applicable brokerage commissions the Agent is required to pay. | ||
| 3. | You may sell your shares through your financial adviser through the Direct Registration System (DRS). DRS is a service within the securities industry that allows Trust shares to be held in your name in electronic format. You retain full ownership of your shares, without having to hold a share certificate. You should contact your financial adviser to learn more about any restrictions or fees that may apply. |
To obtain a complete copy of the Dividend
Reinvestment Plan, please call our Client Services
department at 800 341 2929 or visit
invesco.com/us.
3
Invesco Van Kampen Trust for Investment Grade New York Municipals
Schedule
of Investments
August 31,
2012
(Unaudited)
|
Principal |
||||||||||||||||
|
Interest |
Maturity |
Amount |
||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
|
Municipal Obligations–157.51% |
||||||||||||||||
|
New York–144.64% |
||||||||||||||||
|
Albany (City of) Industrial Development Agency (St. Peter’s
Hospital); Series 2008 D, Civic Facility RB
|
5.75 | % | 11/15/27 | $ | 1,000 | $ | 1,115,540 | |||||||||
|
Albany (County of) Airport Authority; Series 2010 A,
Ref. RB
(INS–AGM)(a)
|
5.00 | % | 12/15/25 | 500 | 573,730 | |||||||||||
|
Albany Capital Resource Corp. (St. Peter’s Hospital);
Series 2011, RB
|
6.25 | % | 11/15/38 | 2,360 | 2,803,538 | |||||||||||
|
Battery Park City Authority; Series 2009 B, Sr. RB
|
5.00 | % | 11/01/34 | 3,700 | 4,544,858 | |||||||||||
|
Brooklyn Arena Local Development Corp. (Barclays Center);
|
||||||||||||||||
|
Series 2009, PILOT
CAB RB(b)
|
0.00 | % | 07/15/34 | 8,315 | 2,746,029 | |||||||||||
|
Series 2009, PILOT RB
|
6.25 | % | 07/15/40 | 1,025 | 1,192,249 | |||||||||||
|
Series 2009, PILOT RB
|
6.38 | % | 07/15/43 | 1,025 | 1,198,287 | |||||||||||
|
Build NYC Resource Corp. (YMCA of Greater New York);
|
||||||||||||||||
|
Series 2012, RB
|
5.00 | % | 08/01/32 | 650 | 738,374 | |||||||||||
|
Series 2012, RB
|
5.00 | % | 08/01/42 | 750 | 834,578 | |||||||||||
|
Chautauqua (County of) Industrial Development Agency (NRG
Energy, Inc.–Dunkirk Power LLC); Series 2009, Exempt
Facility RB
|
5.88 | % | 04/01/42 | 2,990 | 3,366,830 | |||||||||||
|
Dutchess (County of) Industrial Development Agency (Elant at
Fishkill, Inc.); Series 2007 A, Civic Facility RB
|
5.25 | % | 01/01/37 | 920 | 854,947 | |||||||||||
|
East Rochester (Village of) Housing Authority (Woodland Village,
Inc.); Series 2006, Ref. Senior Living RB
|
5.50 | % | 08/01/33 | 2,400 | 2,391,024 | |||||||||||
|
Erie (County of) Industrial Development Agency (City of Buffalo
School District);
|
||||||||||||||||
|
Series 2011 A, School
Facility RB(c)
|
5.25 | % | 05/01/28 | 2,500 | 2,956,725 | |||||||||||
|
Series 2011 A, School
Facility RB(c)
|
5.25 | % | 05/01/30 | 2,710 | 3,180,104 | |||||||||||
|
Series 2011 A, School
Facility RB(c)
|
5.25 | % | 05/01/31 | 1,000 | 1,170,130 | |||||||||||
|
Essex (County of) Industrial Development Agency (International
Paper); Series 2005 A, Ref. Solid Waste
Disposal RB(d)
|
5.20 | % | 12/01/23 | 2,650 | 2,738,748 | |||||||||||
|
Hempstead Town Local Development Corp. (Molloy College);
Series 2009, RB
|
5.75 | % | 07/01/39 | 3,115 | 3,546,646 | |||||||||||
|
Hudson Yards Infrastructure Corp.; Series 2011 A, RB
|
5.75 | % | 02/15/47 | 2,125 | 2,496,939 | |||||||||||
|
Long Island Power Authority;
|
||||||||||||||||
|
Series 2006 E, Electric System General RB
|
5.00 | % | 12/01/17 | 1,975 | 2,318,650 | |||||||||||
|
Series 2009 A, Electric System General RB
|
6.25 | % | 04/01/33 | 1,860 | 2,317,746 | |||||||||||
|
Series 2009 A, Electric System General RB
|
5.75 | % | 04/01/39 | 635 | 759,924 | |||||||||||
|
Madison (County of) Industrial Development Agency (Colgate
University);
Series 2003 B, RB(e)(f)
|
5.00 | % | 07/01/13 | 1,000 | 1,040,070 | |||||||||||
|
Madison (County of) Industrial Development Agency (Morrisville
State College Foundation); Series 2005 A, Civic
Facility RB
(INS–CIFG)(a)
|
5.00 | % | 06/01/28 | 1,000 | 1,017,980 | |||||||||||
|
Madison (County of) Industrial Development Agency (Oneida Health
Systems, Inc.); Series 2007, Civic Facility RB
|
5.50 | % | 02/01/32 | 1,000 | 1,025,320 | |||||||||||
|
Metropolitan Transportation Authority;
|
||||||||||||||||
|
Series 2005 B, RB
(INS–BHAC)(a)(c)
|
5.00 | % | 11/15/31 | 10,000 | 11,162,800 | |||||||||||
|
Series 2009 B, Dedicated Tax Fund RB
|
5.25 | % | 11/15/27 | 1,535 | 1,806,618 | |||||||||||
|
Series 2009 B, Dedicated Tax Fund RB
|
5.00 | % | 11/15/34 | 500 | 565,555 | |||||||||||
|
Series 2012 D, Ref. RB
|
5.00 | % | 11/15/32 | 315 | 363,872 | |||||||||||
|
Subseries 2011 B-2, Dedicated Tax Fund RB
|
5.00 | % | 11/15/32 | 1,360 | 1,599,455 | |||||||||||
|
Monroe County Industrial Development Corp. (Nazareth College of
Rochester); Series 2011, RB
|
5.50 | % | 10/01/41 | 880 | 977,909 | |||||||||||
|
Monroe County Industrial Development Corp. (University of
Rochester); Series 2011 A, RB
|
5.00 | % | 07/01/36 | 2,030 | 2,286,673 | |||||||||||
|
Montgomery (County of) Industrial Development Agency (Hamilton
Fulton Montgomery Board of Cooperative Educational Services);
Series 2005 A, Lease RB
(INS–SGI)(a)
|
5.00 | % | 07/01/34 | 1,000 | 1,013,300 | |||||||||||
|
Nassau (County of) Industrial Development Agency (Amsterdam at
Harborside); Series 2007 A, Continuing Care Retirement
Community RB
|
6.70 | % | 01/01/43 | 5,000 | 3,334,850 | |||||||||||
|
Nassau County Tobacco Settlement Corp.; Series 2006
A-2,
Sr. Asset-Backed RB
|
5.25 | % | 06/01/26 | 1,000 | 917,620 | |||||||||||
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
4 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
|
Principal |
||||||||||||||||
|
Interest |
Maturity |
Amount |
||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
|
New York–(continued) |
||||||||||||||||
|
New York & New Jersey (States of) Port Authority (JFK
International Air Terminal LLC);
|
||||||||||||||||
|
Series 1997, Special Obligation RB
(INS–NATL)(a)(d)
|
5.75 | % | 12/01/22 | $ | 2,000 | $ | 2,000,700 | |||||||||
|
Series 1997 6, Special Obligation RB
(INS–NATL)(a)(d)
|
5.75 | % | 12/01/25 | 2,500 | 2,500,625 | |||||||||||
|
Series 2010, Special Obligation RB
|
6.00 | % | 12/01/42 | 1,930 | 2,243,007 | |||||||||||
|
New York & New Jersey (States of) Port Authority;
|
||||||||||||||||
|
One Hundred Fifty-Second Series 2008,
Consolidated RB(c)(d)
|
5.00 | % | 11/01/25 | 10,000 | 11,087,000 | |||||||||||
|
One Hundred Forty-Fourth Series 2006,
Consolidated RB(c)
|
5.00 | % | 10/01/35 | 10,000 | 11,414,000 | |||||||||||
|
New York (City of) Industrial Development Agency
(IAC/InterActive Corp.); Series 2005, Liberty RB
|
5.00 | % | 09/01/35 | 3,985 | 4,063,624 | |||||||||||
|
New York (City of) Industrial Development Agency (New York Stock
Exchange); Series 2009 A, Ref. Special Facility RB
|
5.00 | % | 05/01/21 | 2,445 | 2,882,557 | |||||||||||
|
New York (City of) Industrial Development Agency (Polytechnic
University); Series 2007, Ref. Civic Facility RB
(INS–ACA)(a)
|
5.25 | % | 11/01/37 | 3,700 | 3,976,094 | |||||||||||
|
New York (City of) Industrial Development Agency (Terminal One
Group Association, L.P.);
|
||||||||||||||||
|
Series 2005, Special
Facility RB(d)(g)
|
5.50 | % | 01/01/19 | 3,710 | 4,033,920 | |||||||||||
|
Series 2005, Special
Facility RB(d)(g)
|
5.50 | % | 01/01/20 | 3,000 | 3,236,100 | |||||||||||
|
Series 2005, Special
Facility RB(d)(g)
|
5.50 | % | 01/01/21 | 4,000 | 4,287,200 | |||||||||||
|
Series 2005, Special
Facility RB(d)(g)
|
5.50 | % | 01/01/24 | 2,000 | 2,111,180 | |||||||||||
|
New York (City of) Municipal Water Finance Authority;
|
||||||||||||||||
|
Series 2005 C, Water & Sewer
System RB(c)
|
5.00 | % | 06/15/31 | 10,000 | 11,095,800 | |||||||||||
|
Series 2005 D, Water & Sewer
System RB(c)
|
5.00 | % | 06/15/37 | 12,000 | 13,245,000 | |||||||||||
|
Series 2007, VRD Second General Water & Sewer
System RB(h)
|
0.15 | % | 06/15/33 | 2,000 | 2,000,000 | |||||||||||
|
Series 2009 FF-2, Water & Sewer System RB
|
5.50 | % | 06/15/40 | 3,000 | 3,528,930 | |||||||||||
|
Series 2010 FF, Second General Resolution Water &
Sewer System RB
|
5.00 | % | 06/15/31 | 600 | 696,102 | |||||||||||
|
New York (City of) Transitional Finance Authority;
|
||||||||||||||||
|
Series 2003 D, Future Tax
Sec. RB(e)(f)
|
5.25 | % | 02/01/13 | 885 | 903,815 | |||||||||||
|
Series 2004, Future Tax
Sec. RB(e)(f)
|
5.00 | % | 02/01/14 | 235 | 250,900 | |||||||||||
|
Series 2004, Future Tax
Sec. RB(f)
|
5.00 | % | 02/01/21 | 265 | 281,764 | |||||||||||
|
Series 2008
S-1,
Building Aid RB
|
5.50 | % | 07/15/38 | 2,950 | 3,368,988 | |||||||||||
|
Series 2008
S-2,
Building Aid RB
|
6.00 | % | 07/15/33 | 1,650 | 1,966,008 | |||||||||||
|
Series 2009 A, Future Tax
Sec. RB(c)
|
5.00 | % | 05/01/28 | 625 | 742,538 | |||||||||||
|
Series 2009 A, Future Tax
Sec. RB(c)
|
5.00 | % | 05/01/29 | 500 | 594,925 | |||||||||||
|
Series 2009 A, Future Tax
Sec. RB(c)
|
5.00 | % | 05/01/30 | 500 | 582,480 | |||||||||||
|
Series 2009
S-3,
Building
Aid RB(c)
|
5.25 | % | 01/15/27 | 4,500 | 5,330,880 | |||||||||||
|
Series 2009
S-3,
Building
Aid RB(c)
|
5.25 | % | 01/15/39 | 2,500 | 2,818,550 | |||||||||||
|
Subseries 2011 D-1, Future Tax
Sec. RB(c)
|
5.00 | % | 11/01/33 | 13,500 | 15,832,395 | |||||||||||
|
Subseries 2011 E, Future Tax Sec. RB
|
5.00 | % | 11/01/24 | 1,135 | 1,380,989 | |||||||||||
|
New York (City of) Trust for Cultural Resources (American Museum
of Natural History); Series 2004 A, Ref. RB
(INS–NATL)(a)(c)
|
5.00 | % | 07/01/44 | 10,890 | 11,617,452 | |||||||||||
|
New York (City of) Trust for Cultural Resources (Carnegie Hall);
Series 2009 A, RB
|
5.00 | % | 12/01/39 | 1,880 | 2,078,754 | |||||||||||
|
New York (City of) Trust for Cultural Resources (The Museum of
Modern Art);
|
||||||||||||||||
|
Series 2008 1A,
Ref. RB(c)
|
5.00 | % | 04/01/28 | 2,250 | 2,638,440 | |||||||||||
|
Series 2008 1A, Ref. RB
|
5.00 | % | 04/01/31 | 1,550 | 1,791,242 | |||||||||||
|
New York (City of) Trust for Cultural Resources (Wildlife
Conservation Society); Series 2004, RB
(INS–NATL)(a)
|
5.00 | % | 02/01/34 | 1,000 | 1,051,930 | |||||||||||
|
New York (City of);
|
||||||||||||||||
|
Subseries 1993
A-7, VRD
Unlimited Tax GO Bonds (LOC–JPMorgan Chase
Bank, N.A.)(h)(i)
|
0.16 | % | 08/01/20 | 2,200 | 2,200,000 | |||||||||||
|
Subseries 1993
E-2, VRD
Unlimited Tax GO Bonds (LOC–JPMorgan Chase
Bank, N.A.)(h)(i)
|
0.16 | % | 08/01/20 | 9,200 | 9,200,000 | |||||||||||
|
Subseries 1993
E-5, VRD
Unlimited Tax GO Bonds (LOC–JPMorgan Chase
Bank, N.A.)(h)(i)
|
0.16 | % | 08/01/17 | 1,500 | 1,500,000 | |||||||||||
|
Subseries 2008
A-1,
Unlimited Tax GO
Bonds(c)
|
5.25 | % | 08/15/27 | 1,140 | 1,368,650 | |||||||||||
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
5 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
|
Principal |
||||||||||||||||
|
Interest |
Maturity |
Amount |
||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
|
New York–(continued) |
||||||||||||||||
|
Subseries 2008
A-1,
Unlimited Tax GO
Bonds(c)
|
5.25 | % | 08/15/28 | $ | 1,140 | $ | 1,350,968 | |||||||||
|
Subseries 2008 F-1, Unlimited Tax GO Bonds
|
5.50 | % | 11/15/28 | 4,050 | 4,894,020 | |||||||||||
|
Subseries 2008 G-1, Unlimited Tax GO Bonds
|
6.25 | % | 12/15/35 | 400 | 501,456 | |||||||||||
|
Subseries 2008 I-1, Unlimited Tax GO
Bonds(c)
|
5.00 | % | 02/01/26 | 10,000 | 11,624,700 | |||||||||||
|
Subseries 2008 L-1, Unlimited Tax GO
Bonds(c)
|
5.00 | % | 04/01/27 | 10,000 | 11,517,900 | |||||||||||
|
Subseries 2009 I-1, Unlimited Tax GO Bonds
|
5.25 | % | 04/01/32 | 3,500 | 4,191,635 | |||||||||||
|
New York (State of) Dormitory Authority (Brooklyn Law School);
|
||||||||||||||||
|
Series 2003 B, RB(e)(f)
|
5.38 | % | 07/01/13 | 2,340 | 2,438,444 | |||||||||||
|
Series 2009, RB
|
5.75 | % | 07/01/33 | 540 | 621,567 | |||||||||||
|
Series 2012 A, RB
|
5.00 | % | 07/01/28 | 2,000 | 2,309,800 | |||||||||||
|
Series 2012 A, RB
|
5.00 | % | 07/01/29 | 1,000 | 1,153,980 | |||||||||||
|
New York (State of) Dormitory Authority (Catholic Health
Services of Long Island–St. Francis Hospital);
Series 2004, RB |
5.00 | % | 07/01/27 | 2,200 | 2,253,680 | |||||||||||
|
New York (State of) Dormitory Authority (City of New York);
|
||||||||||||||||
|
Series 2005 A, Court Facilities Lease RB
(INS–AMBAC)(a)
|
5.50 | % | 05/15/27 | 700 | 909,251 | |||||||||||
|
Series 2005 A, Court Facilities Lease RB
(INS–AMBAC)(a)
|
5.50 | % | 05/15/30 | 1,750 | 2,328,847 | |||||||||||
|
Series 2005 A, Court Facilities Lease RB
(INS–AMBAC)(a)
|
5.50 | % | 05/15/31 | 445 | 595,334 | |||||||||||
|
New York (State of) Dormitory Authority (Convent of The Sacred
Heart); Series 2011, RB
(INS–AGM)(a)
|
5.75 | % | 11/01/40 | 1,255 | 1,489,735 | |||||||||||
|
New York (State of) Dormitory Authority (Cornell University);
|
||||||||||||||||
|
Series 2006 A, RB(c)
|
5.00 | % | 07/01/35 | 3,990 | 4,530,605 | |||||||||||
|
Series 2010 A, RB
|
5.00 | % | 07/01/40 | 1,000 | 1,137,540 | |||||||||||
|
New York (State of) Dormitory Authority (Education);
Series 2008 B, State Personal Income Tax RB
|
5.75 | % | 03/15/36 | 2,150 | 2,619,474 | |||||||||||
|
New York (State of) Dormitory Authority (Fashion Institute of
Technology Student Housing Corp.); Series 2007, RB
(INS–NATL)(a)
|
5.25 | % | 07/01/28 | 2,065 | 2,436,287 | |||||||||||
|
New York (State of) Dormitory Authority (Fordham University);
|
||||||||||||||||
|
Series 2008 B, RB
(INS–AGC)(a)
|
5.00 | % | 07/01/33 | 1,415 | 1,557,802 | |||||||||||
|
Series 2011 A, RB
|
5.13 | % | 07/01/29 | 500 | 581,680 | |||||||||||
|
New York (State of) Dormitory Authority (General Purpose);
|
||||||||||||||||
|
Series 2010 E, State Personal Income Tax RB
|
5.00 | % | 02/15/40 | 500 | 570,480 | |||||||||||
|
Series 2011 A, State Personal Income
Tax RB(c)
|
5.00 | % | 03/15/30 | 3,000 | 3,529,290 | |||||||||||
|
New York (State of) Dormitory Authority (Maimonides Medical
Center); Series 2004, Mortgage Hospital RB
(INS–NATL)(a)
|
5.00 | % | 08/01/33 | 1,950 | 2,081,059 | |||||||||||
|
New York (State of) Dormitory Authority (Manhattan College);
Series 2007 A, RB
(INS–Radian)(a)
|
5.00 | % | 07/01/41 | 2,715 | 2,768,485 | |||||||||||
|
New York (State of) Dormitory Authority (Memorial
Sloan-Kettering Cancer Center);
|
||||||||||||||||
|
Series 1998, RB
(INS–NATL)(a)
|
5.50 | % | 07/01/23 | 3,750 | 4,803,525 | |||||||||||
|
Series 2003
1, RB(e)(f)
|
5.00 | % | 07/01/13 | 1,000 | 1,039,810 | |||||||||||
|
New York (State of) Dormitory Authority (Montefiore Medical
Center); Series 2004, Hospital RB
(INS–NATL)(a)
|
5.00 | % | 08/01/29 | 1,000 | 1,072,250 | |||||||||||
|
New York (State of) Dormitory Authority (Mount Sinai Hospital
Obligated Group); Series 2011 A, RB
|
5.00 | % | 07/01/31 | 2,125 | 2,355,924 | |||||||||||
|
New York (State of) Dormitory Authority (Mount Sinai School of
Medicine of New York University); Series 2009, RB
|
5.13 | % | 07/01/39 | 1,750 | 1,932,053 | |||||||||||
|
New York (State of) Dormitory Authority (New York University
Hospitals Center); Series 2011 A, RB
|
6.00 | % | 07/01/40 | 500 | 588,150 | |||||||||||
|
New York (State of) Dormitory Authority (New York University);
|
||||||||||||||||
|
Series 2001 1, RB
(INS–AMBAC)(a)
|
5.50 | % | 07/01/31 | 2,500 | 3,322,900 | |||||||||||
|
Series 2001 1, RB
(INS–BHAC)(a)
|
5.50 | % | 07/01/31 | 1,115 | 1,468,121 | |||||||||||
|
New York (State of) Dormitory Authority (North Shore–Long
Island Jewish Obligated Group);
|
||||||||||||||||
|
Series 2009 A, RB
|
5.50 | % | 05/01/37 | 1,250 | 1,423,325 | |||||||||||
|
Series 2011 A, RB
|
5.00 | % | 05/01/32 | 500 | 560,990 | |||||||||||
|
Subseries 2005 A, RB
|
5.00 | % | 11/01/26 | 2,125 | 2,282,887 | |||||||||||
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
6 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
|
Principal |
||||||||||||||||
|
Interest |
Maturity |
Amount |
||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
|
New York–(continued) |
||||||||||||||||
|
New York (State of) Dormitory Authority (Orange Regional Medical
Center);
|
||||||||||||||||
|
Series 2008, RB
|
6.50 | % | 12/01/21 | $ | 3,000 | $ | 3,446,640 | |||||||||
|
Series 2008, RB
|
6.13 | % | 12/01/29 | 1,375 | 1,511,139 | |||||||||||
|
New York (State of) Dormitory Authority (Pratt Institution);
Series 2009 C, RB
(INS–AGC)(a)
|
5.13 | % | 07/01/39 | 1,000 | 1,100,830 | |||||||||||
|
New York (State of) Dormitory Authority (Rochester Institute of
Technology); Series 2010, RB
|
5.00 | % | 07/01/40 | 1,750 | 1,950,602 | |||||||||||
|
New York (State of) Dormitory Authority (Rockefeller
University); Series 2010 A, RB
|
5.00 | % | 07/01/41 | 1,870 | 2,156,783 | |||||||||||
|
New York (State of) Dormitory Authority (School Districts
Financing Program);
|
||||||||||||||||
|
Series 2008 D, RB
(INS–AGC)(a)
|
5.75 | % | 10/01/24 | 2,500 | 3,008,225 | |||||||||||
|
Series 2009 C, RB
(INS–AGC)(a)
|
5.00 | % | 10/01/24 | 500 | 580,500 | |||||||||||
|
Series 2011 A, RB
|
5.00 | % | 10/01/25 | 1,195 | 1,412,418 | |||||||||||
|
New York (State of) Dormitory Authority (St. John’s
University); Series 2012 B, RB
|
5.00 | % | 07/01/30 | 2,780 | 3,241,313 | |||||||||||
|
New York (State of) Dormitory Authority (St. Joseph’s
College); Series 2010, RB
|
5.25 | % | 07/01/35 | 1,500 | 1,668,105 | |||||||||||
|
New York (State of) Dormitory Authority (State University
Educational Facilities);
|
||||||||||||||||
|
Series 1993 A, RB
(INS–NATL)(a)
|
5.25 | % | 05/15/15 | 3,600 | 3,907,332 | |||||||||||
|
Series 1993 B, RB
|
5.25 | % | 05/15/19 | 5,010 | 5,751,179 | |||||||||||
|
New York (State of) Dormitory Authority (The New School);
|
||||||||||||||||
|
Series 2010, RB
|
5.50 | % | 07/01/40 | 2,755 | 3,154,888 | |||||||||||
|
Series 2011, Ref. RB
|
5.00 | % | 07/01/31 | 1,750 | 1,985,602 | |||||||||||
|
New York (State of) Dormitory Authority (Vassar College);
Series 2007, RB
|
5.00 | % | 07/01/46 | 2,075 | 2,235,646 | |||||||||||
|
New York (State of) Dormitory Authority (Winthrop South Nassau
University Health System Obligated Group);
Series 2003 B, RB
|
5.50 | % | 07/01/23 | 750 | 762,300 | |||||||||||
|
New York (State of) Dormitory Authority;
|
||||||||||||||||
|
Series 1993 A, Second General City University System
Consolidated RB
|
5.75 | % | 07/01/13 | 675 | 705,125 | |||||||||||
|
Series 1995 A, City University System Consolidated RB
|
5.63 | % | 07/01/16 | 2,980 | 3,378,396 | |||||||||||
|
Series 2007 A, Mental Health Services Facilities
Improvement RB
(INS–AGM)(a)
|
5.00 | % | 02/15/27 | 2,500 | 2,734,875 | |||||||||||
|
Series 2008 C, Mental Health Services Facilities
Improvement RB
(INS–AGM)(a)(d)
|
5.25 | % | 02/15/28 | 2,000 | 2,177,120 | |||||||||||
|
New York (State of) Energy Research & Development
Authority; Series 1993, Regular Residual
Interest RB(j)
|
12.11 | % | 04/01/20 | 1,500 | 1,509,300 | |||||||||||
|
New York (State of) Mortgage Agency; Series 2007 145,
Homeowner
Mortgage RB(d)
|
5.05 | % | 10/01/29 | 1,555 | 1,625,162 | |||||||||||
|
New York (State of) Power Authority; Series 2011 A, RB
|
5.00 | % | 11/15/38 | 1,770 | 2,050,510 | |||||||||||
|
New York (State of) Thruway Authority (Transportation);
Series 2009 A, Personal Income Tax RB
|
5.00 | % | 03/15/25 | 410 | 492,549 | |||||||||||
|
New York (State of) Thruway Authority;
|
||||||||||||||||
|
Series 2008 B, Second General Highway &
Bridge Trust Fund RB
|
5.00 | % | 04/01/27 | 1,000 | 1,146,630 | |||||||||||
|
Series 2012 I, General RB
|
5.00 | % | 01/01/42 | 1,390 | 1,563,569 | |||||||||||
|
New York (State of) Urban Development Corp. (Rensselaer
Polytechnic Institute–Center for Industrial Innovation);
Series 1995, Ref. RB
|
5.50 | % | 01/01/13 | 440 | 447,696 | |||||||||||
|
New York City Health & Hospital Corp.;
|
||||||||||||||||
|
Series 2003 A, Health System RB
(INS–AMBAC)(a)
|
5.25 | % | 02/15/21 | 2,000 | 2,035,920 | |||||||||||
|
Series 2010 A, Health System RB
|
5.00 | % | 02/15/30 | 2,780 | 3,142,012 | |||||||||||
|
New York Liberty Development Corp. (4 World Trade Center);
Series 2011, Ref. Liberty RB
|
5.00 | % | 11/15/31 | 2,125 | 2,441,519 | |||||||||||
|
New York Liberty Development Corp. (7 World Trade Center);
Series 2012, Class 1, Ref.
Liberty RB(c)
|
5.00 | % | 09/15/40 | 14,445 | 16,459,355 | |||||||||||
|
New York Liberty Development Corp. (Bank of America Tower at One
Bryant Park); Series 2010, Ref. Second Priority Liberty RB
|
6.38 | % | 07/15/49 | 2,785 | 3,200,661 | |||||||||||
|
New York Local Government Assistance Corp.;
Series 1993 C, Ref. RB
|
5.50 | % | 04/01/17 | 2,000 | 2,348,860 | |||||||||||
|
New York State Environmental Facilities Corp. (2010 Master
Financing Program); Series 2010 C, RB
|
5.00 | % | 10/15/39 | 1,905 | 2,166,290 | |||||||||||
|
New York State Environmental Facilities Corp. (Municipal Water
Finance Authority); Series 2011 B, State Clean
Water & Drinking Water Revolving Funds RB
|
5.00 | % | 06/15/31 | 1,570 | 1,874,502 | |||||||||||
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
7 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
|
Principal |
||||||||||||||||
|
Interest |
Maturity |
Amount |
||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
|
New York–(continued) |
||||||||||||||||
|
New York State Urban Development Corp.;
|
||||||||||||||||
|
Series 1993 A, Ref. Correctional Facilities RB
|
5.50 | % | 01/01/14 | $ | 1,895 | $ | 1,958,179 | |||||||||
|
Series 2008 B, Ref. Service Contract RB
|
5.25 | % | 01/01/24 | 750 | 885,593 | |||||||||||
|
Series 2008 B, Ref. Service Contract RB
|
5.25 | % | 01/01/25 | 2,000 | 2,338,740 | |||||||||||
|
Niagara Falls (City of) Public Water Authority;
Series 2005, Water & Sewer System RB
(INS–SGI)(a)
|
5.00 | % | 07/15/26 | 1,000 | 1,051,060 | |||||||||||
|
Niagara Frontier Transportation Authority (Buffalo Niagara
International Airport); Series 1999 A, Airport RB
(INS–NATL)(a)(d)
|
5.63 | % | 04/01/29 | 3,570 | 3,611,055 | |||||||||||
|
North Syracuse Central School District; Series 2007, Ref.
Unlimited Tax GO Bonds
(INS–NATL)(a)
|
5.00 | % | 06/15/23 | 940 | 1,164,303 | |||||||||||
|
Oneida (County of) Industrial Development Agency (St. Elizabeth
Medical Center Facility);
|
||||||||||||||||
|
Series 1999 A, Civic Facility RB
|
5.88 | % | 12/01/29 | 475 | 475,304 | |||||||||||
|
Series 1999 B, Civic Facility RB
|
6.00 | % | 12/01/19 | 1,180 | 1,181,711 | |||||||||||
|
Onondaga Civic Development Corp. (Le Moyne College);
Series 2010, RB
|
5.38 | % | 07/01/40 | 2,435 | 2,662,405 | |||||||||||
|
Rockland (County of) Solid Waste Management Authority;
Series 2003 B, RB
(INS–AMBAC)(a)(d)
|
5.13 | % | 12/15/28 | 1,000 | 1,019,680 | |||||||||||
|
Rockland (County of); Series 2012, Limited Tax TAN
|
2.50 | % | 03/06/13 | 1,060 | 1,064,092 | |||||||||||
|
Sales Tax Asset Receivable Corp.; Series 2004 A, RB
(INS–AMBAC)(a)
|
5.00 | % | 10/15/29 | 1,500 | 1,630,995 | |||||||||||
|
Saratoga (County of) Industrial Development Agency (Saratoga
Hospital); Series 2007 B, Civic Facility RB
|
5.13 | % | 12/01/27 | 1,000 | 1,054,480 | |||||||||||
|
Seneca (County of) Industrial Development Agency (Seneca
Meadows, Inc.);
Series 2005, RB(d)(e)(g)(k)
|
6.63 | % | 10/01/13 | 1,880 | 1,905,399 | |||||||||||
|
Suffolk (County of) Industrial Development Agency (Eastern Long
Island Hospital Association); Series 2007, Civic
Facility RB(k)
|
5.38 | % | 01/01/27 | 1,950 | 1,908,875 | |||||||||||
|
Suffolk (County of) Industrial Development Agency
(Jefferson’s Ferry); Series 2006, Ref. First Mortgage
Continuing Care Retirement Community RB
|
5.00 | % | 11/01/28 | 1,000 | 1,022,630 | |||||||||||
|
Suffolk County Economic Development Corp. (Peconic Landing at
Southold, Inc.); Series 2010, Ref. RB
|
6.00 | % | 12/01/40 | 1,035 | 1,148,829 | |||||||||||
|
Syracuse (City of); Series 2011 A, Airport Terminal
Security & Access Improvement Unlimited Tax GO
Bonds(d)
|
5.00 | % | 11/01/36 | 500 | 539,820 | |||||||||||
|
Tobacco Settlement Financing Corp.; Series 2003 B-1C,
Asset-Backed RB
|
5.50 | % | 06/01/21 | 1,000 | 1,038,180 | |||||||||||
|
Tompkins (County of) Industrial Development Agency (Cornell
University); Series 2008 A, Civic Facility RB
|
5.00 | % | 07/01/37 | 750 | 854,835 | |||||||||||
|
Triborough Bridge & Tunnel Authority;
Series 2003 A, Sub. RB
(INS–AMBAC)(a)
|
5.00 | % | 11/15/28 | 1,500 | 1,573,470 | |||||||||||
|
Troy Capital Resource Corp. (Rensselaer Polytechnic Institute);
|
||||||||||||||||
|
Series 2010 A, RB
|
5.00 | % | 09/01/30 | 2,500 | 2,822,000 | |||||||||||
|
Series 2010 A, RB
|
5.13 | % | 09/01/40 | 985 | 1,090,415 | |||||||||||
|
TSASC, Inc.;
|
||||||||||||||||
|
Series 2006 1, Tobacco Settlement Asset-Backed RB
|
5.00 | % | 06/01/34 | 2,000 | 1,525,620 | |||||||||||
|
Series 2006 1, Tobacco Settlement Asset-Backed RB
|
5.13 | % | 06/01/42 | 1,660 | 1,223,022 | |||||||||||
|
United Nations Development Corp.;
|
||||||||||||||||
|
Series 2009 A, Ref. RB
|
5.00 | % | 07/01/25 | 1,000 | 1,142,270 | |||||||||||
|
Series 2009 A, Ref. RB
|
5.00 | % | 07/01/26 | 815 | 926,598 | |||||||||||
|
Westchester (County of) Industrial Development Agency (Kendal on
Hudson); Series 2003 A, Continuing Care Retirement
Community
Mortgage RB(e)(f)
|
6.50 | % | 01/01/13 | 3,000 | 3,063,390 | |||||||||||
|
Westchester Tobacco Asset Securitization Corp.;
Series 2005, Tobacco Settlement Asset-Backed RB
|
5.13 | % | 06/01/45 | 2,750 | 2,265,037 | |||||||||||
|
Yonkers Economic Development Corp. (Charter School of
Educational Excellence); Series 2010 A, Educational RB
|
6.25 | % | 10/15/40 | 1,200 | 1,255,032 | |||||||||||
| 448,480,683 | ||||||||||||||||
|
Puerto Rico–8.97% |
||||||||||||||||
|
Puerto Rico (Commonwealth of) Aqueduct & Sewer
Authority;
|
||||||||||||||||
|
Series 2008 A, Sr. Lien RB
|
6.00 | % | 07/01/38 | 650 | 692,796 | |||||||||||
|
Series 2012 A, Sr. Lien RB
|
5.13 | % | 07/01/37 | 2,000 | 2,005,980 | |||||||||||
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
8 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
|
Principal |
||||||||||||||||
|
Interest |
Maturity |
Amount |
||||||||||||||
| Rate | Date | (000) | Value | |||||||||||||
|
Puerto Rico–(continued) |
||||||||||||||||
|
Puerto Rico (Commonwealth of) Electric Power Authority;
|
||||||||||||||||
|
Series 2008 WW, RB
|
5.50 | % | 07/01/21 | $ | 1,000 | $ | 1,108,550 | |||||||||
|
Series 2008 WW, RB
|
5.00 | % | 07/01/28 | 1,000 | 1,047,010 | |||||||||||
|
Series 2008 WW, RB
|
5.25 | % | 07/01/33 | 2,100 | 2,210,145 | |||||||||||
|
Series 2010 XX, RB
|
5.75 | % | 07/01/36 | 1,000 | 1,096,550 | |||||||||||
|
Puerto Rico (Commonwealth of) Industrial Tourist Educational,
Medical and Environmental Control Facilities Financing Authority
(Ana G. Mendez University System); Series 2012, Ref. RB
|
5.00 | % | 04/01/27 | 1,000 | 1,022,120 | |||||||||||
|
Puerto Rico (Commonwealth of) Infrastructure Financing
Authority; Series 2005 C, Ref. Special Tax RB
(INS–AMBAC)(a)
|
5.50 | % | 07/01/27 | 1,525 | 1,717,805 | |||||||||||
|
Puerto Rico (Commonwealth of) Public Buildings Authority;
Series 2004 I, Government
Facilities RB(e)(f)
|
5.25 | % | 07/01/14 | 75 | 81,644 | |||||||||||
|
Puerto Rico Sales Tax Financing Corp.;
|
||||||||||||||||
|
First Subseries 2009 A, RB
|
5.75 | % | 08/01/37 | 870 | 971,468 | |||||||||||
|
First Subseries 2009 A, RB
|
6.38 | % | 08/01/39 | 1,500 | 1,772,430 | |||||||||||
|
First Subseries 2010,
Conv. CAB RB(b)
|
0.00 | % | 08/01/33 | 415 | 356,672 | |||||||||||
|
First Subseries 2010 A,
CAB RB(b)
|
0.00 | % | 08/01/34 | 1,000 | 301,570 | |||||||||||
|
First Subseries 2010 A,
CAB RB(b)
|
0.00 | % | 08/01/35 | 2,500 | 702,900 | |||||||||||
|
First Subseries 2010 A, RB
|
5.38 | % | 08/01/39 | 1,180 | 1,263,261 | |||||||||||
|
First Subseries 2010 C, RB
|
5.25 | % | 08/01/41 | 1,325 | 1,409,111 | |||||||||||
|
Series 2011 C, RB(c)
|
5.00 | % | 08/01/40 | 3,420 | 3,707,622 | |||||||||||
|
Series 2011 C, RB(c)
|
5.25 | % | 08/01/40 | 5,700 | 6,349,629 | |||||||||||
| 27,817,263 | ||||||||||||||||
|
Guam–2.56% |
||||||||||||||||
|
Guam (Territory of) (Section 30);
|
||||||||||||||||
|
Series 2009 A, Limited Obligation RB
|
5.63 | % | 12/01/29 | 860 | 966,993 | |||||||||||
|
Series 2009 A, Limited Obligation RB
|
5.75 | % | 12/01/34 | 500 | 562,090 | |||||||||||
|
Guam (Territory of) Power Authority; Series 2010 A, RB
|
5.50 | % | 10/01/40 | 1,020 | 1,067,675 | |||||||||||
|
Guam (Territory of) Waterworks Authority; Series 2010,
Water & Wastewater System RB
|
5.63 | % | 07/01/40 | 3,500 | 3,596,005 | |||||||||||
|
Guam (Territory of);
|
||||||||||||||||
|
Series 2011 A, Business Privilege Tax RB
|
5.25 | % | 01/01/36 | 1,125 | 1,270,507 | |||||||||||
|
Series 2011 A, Business Privilege Tax RB
|
5.13 | % | 01/01/42 | 435 | 484,068 | |||||||||||
| 7,947,338 | ||||||||||||||||
|
Virgin Islands–1.34% |
||||||||||||||||
|
Virgin Islands (Government of) Public Finance Authority (Gross
Receipts Taxes Loan Note); Series 1999 A, RB
|
6.38 | % | 10/01/19 | 1,370 | 1,374,603 | |||||||||||
|
Virgin Islands (Government of) Public Finance Authority
(Matching Fund Loan Note–Diageo);
Series 2009 A, Sub. RB
|
6.63 | % | 10/01/29 | 1,880 | 2,214,696 | |||||||||||
|
Virgin Islands (Government of) Public Finance Authority
(Matching Fund Loan Note); Series 2010 A,
Sr. Lien RB
|
5.00 | % | 10/01/29 | 500 | 546,320 | |||||||||||
| 4,135,619 | ||||||||||||||||
|
TOTAL
INVESTMENTS(l)–157.51%
(Cost $446,552,416)
|
488,380,903 | |||||||||||||||
|
FLOATING RATE NOTE OBLIGATIONS–(29.11%)
|
||||||||||||||||
|
Notes with interest rates ranging from 0.16% to 0.24% at
08/31/12,
and contractual maturities of collateral ranging from
11/01/25 to
07/01/44(m)
(See Note 1I)
|
(90,260,000 | ) | ||||||||||||||
|
VARIABLE RATE MUNI TERM PREFERRED SHARES–(29.10%)
|
(90,248,046 | ) | ||||||||||||||
|
OTHER ASSETS LESS LIABILITIES–0.70%
|
2,183,646 | |||||||||||||||
|
NET ASSETS APPLICABLE TO COMMON SHARES–100.00%
|
$ | 310,056,503 | ||||||||||||||
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
9 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
Investment Abbreviations:
|
ACA
|
– ACA Financial Guaranty Corp. | |
|
AGC
|
– Assured Guaranty Corp. | |
|
AGM
|
– Assured Guaranty Municipal Corp. | |
|
AMBAC
|
– American Municipal Bond Assurance Corp. | |
|
BHAC
|
– Berkshire Hathaway Assurance Corp. | |
|
CAB
|
– Capital Appreciation Bonds | |
|
CIFG
|
– CIFG Assurance North America, Inc. | |
|
Conv.
|
– Convertible | |
|
GO
|
– General Obligation | |
|
INS
|
– Insurer | |
|
LOC
|
– Letter of Credit | |
|
NATL
|
– National Public Finance Guarantee Corp. | |
|
PCR
|
– Pollution Control Revenue Bonds | |
|
PILOT
|
– Payment-in-Lieu-of-Tax | |
|
Radian
|
– Radian Asset Assurance, Inc. | |
|
RB
|
– Revenue Bonds | |
|
Ref.
|
– Refunding | |
|
Sec.
|
– Secured | |
|
SGI
|
– Syncora Guarantee, Inc. | |
|
Sr.
|
– Senior | |
|
Sub.
|
– Subordinated | |
|
TAN
|
– Tax Anticipation Notes | |
|
VRD
|
– Variable Rate Demand |
Notes to Schedule of Investments:
| (a) | Principal and/or interest payments are secured by the bond insurance company listed. | |
| (b) | Zero coupon bond issued at a discount. | |
| (c) | Underlying security related to Dealer Trusts entered into by the Trust. See Note 1I. | |
| (d) | Security subject to the alternative minimum tax. | |
| (e) | Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put. | |
| (f) | Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral. | |
| (g) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2012. | |
| (h) | Demand security payable upon demand by the Trust at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2012. | |
| (i) | Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary. | |
| (j) | Current coupon rate for an inverse floating rate municipal obligation. This rate resets periodically as the rate on the related security changes. Position in an inverse floating rate municipal obligation has a total value of $1,509,300 which represents 0.49% of the Trust’s Net Assets. | |
| (k) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at August 31, 2012 was $3,814,274, which represented 1.23% of the Trust’s Net Assets. | |
| (l) | This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations. |
| Entities | Percentage | |||
|
National Public Finance Guarantee Corp.
|
7.4 | % | ||
| (m) | Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at August 31, 2012. At August 31, 2012, the Trust’s investments with a value of $165,907,938 are held by Dealer Trusts and serve as collateral for the $90,260,000 in the floating rate note obligations outstanding at that date. |
By
credit sector, based on Total Investments
as
of August 31, 2012
|
Revenue Bonds
|
86.9 | % | ||
|
General Obligation Bonds
|
7.8 | |||
|
Other
|
3.4 | |||
|
Pre-refunded Bonds
|
1.9 | |||
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
10 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
Statement
of Assets and Liabilities
August 31,
2012
(Unaudited)
|
Assets: |
||||
|
Investments, at value (Cost $446,552,416)
|
$ | 488,380,903 | ||
|
Receivable for:
|
||||
|
Interest
|
5,193,055 | |||
|
Fund expenses absorbed
|
11,250 | |||
|
Investment for trustee deferred compensation and retirement plans
|
7,102 | |||
|
Deferred offering costs
|
284,822 | |||
|
Other assets
|
48,721 | |||
|
Total assets
|
493,925,853 | |||
|
Liabilities: |
||||
|
Floating rate note obligations
|
90,260,000 | |||
|
Variable rate muni term preferred shares, at liquidation value
($0.01 par value, 904 shares issued with liquidation
preference of $100,000 per share)
|
90,248,046 | |||
|
Payable for:
|
||||
|
Amount due custodian
|
3,215,459 | |||
|
Accrued interest expense
|
15,462 | |||
|
Accrued fees to affiliates
|
26 | |||
|
Accrued other operating expenses
|
120,013 | |||
|
Trustee deferred compensation and retirement plans
|
10,344 | |||
|
Total liabilities
|
183,869,350 | |||
|
Net assets applicable to common shares
|
$ | 310,056,503 | ||
|
Net assets applicable to common shares consist of: |
||||
|
Shares of beneficial interest — common shares
|
$ | 291,723,714 | ||
|
Undistributed net investment income
|
4,448,285 | |||
|
Undistributed net realized gain (loss)
|
(27,943,983 | ) | ||
|
Unrealized appreciation
|
41,828,487 | |||
| $ | 310,056,503 | |||
|
Shares outstanding, no par value, with an unlimited number of shares authorized: |
||||
|
Common shares outstanding
|
19,421,043 | |||
|
Net asset value per common share
|
$ | 15.96 | ||
|
Market value per common share
|
$ | 16.30 | ||
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
11 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
Statement
of Operations
For
the six months ended August 31, 2012
(Unaudited)
|
Investment income: |
||||
|
Interest
|
$ | 8,725,495 | ||
|
Expenses: |
||||
|
Advisory fees
|
1,077,265 | |||
|
Administrative services fees
|
35,909 | |||
|
Custodian fees
|
4,805 | |||
|
Interest, facilities and maintenance fees
|
681,877 | |||
|
Transfer agent fees
|
14,800 | |||
|
Trustees’ and officers’ fees and benefits
|
19,174 | |||
|
Professional services fees
|
121,918 | |||
|
Other
|
67,579 | |||
|
Total expenses
|
2,023,327 | |||
|
Less: Fees waived
|
(43,101 | ) | ||
|
Net expenses
|
1,980,226 | |||
|
Net investment income
|
6,745,269 | |||
|
Realized and unrealized gain from: |
||||
|
Net realized gain from investment securities
|
335,960 | |||
|
Change in net unrealized appreciation of investment securities
|
6,333,024 | |||
|
Net realized and unrealized gain
|
6,668,984 | |||
|
Net increase in net assets resulting from operations
|
13,414,253 | |||
|
Distributions to preferred shareholders from net investment
income
|
(42,182 | ) | ||
|
Net increase in net assets from operations applicable to common
shares
|
$ | 13,372,071 | ||
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
12 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
Statement
of Changes in Net Assets
For
the six months ended August 31, 2012 and the year ended
February 29, 2012
(Unaudited)
|
August 31, |
February 29, |
|||||||
| 2012 | 2012 | |||||||
|
Operations: |
||||||||
|
Net investment income
|
$ | 6,745,269 | $ | 14,813,207 | ||||
|
Net realized gain (loss)
|
335,960 | (1,177,421 | ) | |||||
|
Change in net unrealized appreciation
|
6,333,024 | 35,115,947 | ||||||
|
Net increase in net assets resulting from operations
|
13,414,253 | 48,751,733 | ||||||
|
Distributions to preferred shareholders from net investment
income
|
(42,182 | ) | (174,977 | ) | ||||
|
Net increase in net assets from operations applicable to common
shares
|
13,372,071 | 48,576,756 | ||||||
|
Distributions to common shareholders from net investment income
|
(7,686,924 | ) | (15,343,635 | ) | ||||
|
Net increase in net assets applicable to common shares
|
5,685,147 | 33,233,121 | ||||||
|
Share transactions–net: |
||||||||
|
Increase from transactions in common shares of beneficial
interest
|
66,556,409 | 555,362 | ||||||
|
Net increase in net assets
|
72,241,556 | 33,788,483 | ||||||
|
Net assets applicable to common shares: |
||||||||
|
Beginning of period
|
237,814,947 | 204,026,464 | ||||||
|
End of period (includes undistributed net investment income of
$4,448,285 and $5,432,122, respectively)
|
$ | 310,056,503 | $ | 237,814,947 | ||||
See accompanying Notes to Financial Statements which are an
integral part of the financial statements.
13 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
Statement
of Cash Flows
For
the six months ended August 31, 2012
(Unaudited)
|
Cash provided by operating activities: |
||||
|
Net increase in net assets resulting from operations applicable
to common shares
|
$ | 13,372,071 | ||
|
Adjustments to reconcile the change in net assets applicable to common shares from operations to net cash provided by operating activities: |
||||
|
Purchases of investments
|
(13,904,204 | ) | ||
|
Proceeds from sales of investments
|
8,909,340 | |||
|
Amortization of premium
|
543,909 | |||
|
Accretion of discount
|
(317,502 | ) | ||
|
Increase in receivables and other assets
|
(1,539,888 | ) | ||
|
Decrease in accrued expenses and other payables
|
(77,865 | ) | ||
|
Net realized gain from investment securities
|
(335,960 | ) | ||
|
Net change in unrealized appreciation on investment securities
|
(6,333,024 | ) | ||
|
Net cash provided by operating activities
|
316,877 | |||
|
Cash provided by (used in) financing activities: |
||||
|
Dividends paid to common shareholders from net investment income
|
(7,348,937 | ) | ||
|
Decrease in payable for amount due custodian
|
(602,940 | ) | ||
|
Increase in VMTP shares, at liquidation value
|
76,800,000 | |||
|
Net proceeds from the redemption of preferred shares
|
(76,850,000 | ) | ||
|
Net proceeds from floating rate note obligations
|
7,685,000 | |||
|
Net cash provided by (used in) financing activities
|
(316,877 | ) | ||
|
Net increase in cash
|
— | |||
|
Cash at beginning of period
|
— | |||
|
Cash at end of period
|
$ | — | ||
|
Supplemental disclosure of cash flow information: |
||||
|
Cash paid during the period for interest, facilities and
maintenance fees
|
$ | 844,071 | ||
Notes
to Financial Statements
August 31,
2012
(Unaudited)
NOTE 1—Significant
Accounting Policies
Invesco Van Kampen Trust for Investment Grade New York
Municipals (the “Trust”), a Delaware statutory trust,
is registered under the Investment Company Act of 1940, as
amended (the “1940 Act”), as a diversified, closed-end
management investment company. Prior to August 27, 2012,
the Trust was organized as a Massachusetts business trust.
The Trust’s investment objective is to seek to
provide a high level of current income exempt from federal as
well as New York State and New York City income taxes,
consistent with preservation of capital. The Trust will invest
substantially all of its assets in New York municipal securities
rated investment grade at the time of investment but may invest
up to 20% of its assets in unrated securities which are believed
to be of comparable quality to those rated investment grade.
The following is a summary of the significant
accounting policies followed by the Trust in the preparation of
its financial statements.
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. | |
| Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices and may reflect appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments. |
14 Invesco
Van Kampen Trust For Investment Grade New York
Municipals
| Securities for which market quotations either are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances. | ||
| Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. | ||
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. | |
| The Trust may periodically participate in litigation related to Trust investments. As such, the Trust may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held. | ||
| Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Trust’s net asset value and, accordingly, they reduce the Trust’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Trust and the investment adviser. | ||
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. | |
| D. | Distributions — The Trust declares and pays monthly dividends from net investment income to common shareholders. Distributions from net realized capital gain, if any, are generally paid annually and are distributed on a pro rata basis to common and preferred shareholders. The Trust may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. | |
| E. | Federal Income Taxes — The Trust intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Trust’s taxable earnings to shareholders. As such, the Trust will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. | |
| In addition, the Trust intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt dividends”, as defined in the Internal Revenue Code. | ||
| The Trust files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Trust is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period. | ||
| F. | Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Trust monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. | |
| G. | Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts, including the Trust’s servicing agreements, that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. | |
| H. | Cash and Cash Equivalents — For the purposes of the Statement of Cash Flows the Trust defines Cash and Cash Equivalents as cash (including foreign currency), money market funds and other investments held in lieu of cash and excludes investments made with cash collateral received. | |
| I. | Floating Rate Note Obligations — The Trust invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Trust. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Trust to special purpose trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Trust to retain residual interests in the bonds. The floating rate notes issued by the Dealer Trusts have |
15 Invesco
Van Kampen Trust For Investment Grade New York
Municipals
| interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Trust (inverse floating rate investments) include the right of the Trust (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Trust, thereby collapsing the Dealer Trusts. | ||
| TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Trust or less than what may be considered the fair value of such securities. | ||
| The Trust accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Trust’s investment assets, and the related floating rate notes reflected as Trust liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Trust records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations. | ||
| The Trust generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Trust to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Trust’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Trust, the Trust will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Trust could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation. | ||
| J. | Interest, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, rating and bank agent fees and other expenses associated with lines of credit and Variable Rate Muni Term Preferred Shares (“VMTP Shares”), and interest and administrative expenses related to establishing and maintaining Auction Rate Preferred Shares and floating rate note obligations, if any. | |
| K. | Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located. | |
| Since many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Trust’s investments in municipal securities. | ||
| There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service. |
NOTE 2—Advisory
Fees and Other Fees Paid to Affiliates
The Trust has entered into a master investment advisory
agreement with Invesco Advisers, Inc. (the “Adviser”
or “Invesco”). Under the terms of the investment
advisory agreement, the Trust pays an advisory fee to the
Adviser based on the annual rate of 0.55% of the Trust’s
average daily managed assets. Managed assets for this purpose
means the Trust’s net assets, plus assets attributable to
outstanding preferred shares and the amount of any borrowings
incurred for the purpose of leverage (whether or not such
amounts are reflected in the Trust’s financial statements
for purposes of GAAP).
Under the terms of a master
sub-advisory
agreement between the Adviser and each of Invesco Asset
Management Deutschland GmbH, Invesco Asset Management Limited,
Invesco Asset Management (Japan) Limited, Invesco Australia
Limited, Invesco Hong Kong Limited, Invesco Senior Secured
Management, Inc. and Invesco Canada Ltd. (collectively, the
“Affiliated
Sub-Advisers”)
the Adviser, not the Trust, may pay 40% of the fees paid to the
Adviser to any such Affiliated
Sub-Adviser(s)
that provide(s) discretionary investment management services to
the Trust based on the percentage of assets allocated to such
Sub-Adviser(s).
Effective August 27, 2012, the Adviser has
contractually agreed, through at least August 27, 2014, to
waive advisory fees
and/or
reimburse expenses to the extent necessary to limit the
Trust’s expenses (excluding certain items discussed below)
to 0.69%. Through June 30, 2012, the Adviser had
contractually agreed to waive advisory fees
and/or
reimburse expenses to the extent necessary to limit the
Trust’s expenses (excluding certain items discussed below)
to 1.02%. In determining the Adviser’s obligation to waive
advisory fees
and/or
reimburse expenses, the following expenses are not taken into
account, and could cause the Trust’s expenses to exceed the
limit reflected above: (1) interest, facilities and
maintenance fees; (2) taxes; (3) dividend expense on
short sales; (4) extraordinary or non-routine items,
including litigation expenses; and (5) expenses that the
Trust has incurred but did not actually pay because of an
expense offset arrangement. Unless the Board of Trustees and
Invesco mutually agree to amend or continue the fee waiver
agreement, it will terminate on August 27, 2014.
For the six months ended August 31, 2012, the
Adviser waived advisory fees of $43,101.
The Trust has entered into a master administrative
services agreement with Invesco pursuant to which the Trust has
agreed to pay Invesco for certain administrative costs incurred
in providing accounting services to the Trust. For the six
months ended August 31, 2012, expenses incurred under this
agreement are shown in the Statement of Operations as
Administrative services fees.
Certain officers and trustees of the Trust are
officers and directors of Invesco.
16 Invesco
Van Kampen Trust For Investment Grade New York
Municipals
NOTE 3—Additional
Valuation Information
GAAP defines fair value as the price that would be received to
sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date,
under current market conditions. GAAP establishes a hierarchy
that prioritizes the inputs to valuation methods giving the
highest priority to readily available unadjusted quoted prices
in an active market for identical assets (Level 1) and
the lowest priority to significant unobservable inputs
(Level 3) generally when market prices are not readily
available or are unreliable. Based on the valuation inputs, the
securities or other investments are tiered into one of three
levels. Changes in valuation methods may result in transfers in
or out of an investment’s assigned level:
| Level 1 — | Prices are determined using quoted prices in an active market for identical assets. | |
| Level 2 — | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. | |
| Level 3 — | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Trust’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
The following is a summary of the tiered valuation
input levels, as of August 31, 2012. The level assigned to
the securities valuations may not be an indication of the risk
or liquidity associated with investing in those securities.
Because of the inherent uncertainties of valuation, the values
reflected in the financial statements may materially differ from
the value received upon actual sale of those investments.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
Municipal Obligations
|
$ | — | $ | 488,380,903 | $ | — | $ | 488,380,903 | ||||||||
NOTE 4—Trustees’
and Officers’ Fees and Benefits
“Trustees’ and Officers’ Fees and Benefits”
include amounts accrued by the Trust to pay remuneration to
certain Trustees and Officers of the Trust.
During the six months ended August 31, 2012,
the Trust paid legal fees of $136,763 for services rendered by
Skadden, Arps, Slate, Meagher & Flom LLP as counsel to
the Trust. A trustee of the Trust is of counsel with the firm.
NOTE 5—Cash
Balances and Borrowings
The Trust is permitted to temporarily carry a negative or
overdrawn balance in its account with State Street Bank and
Trust Company, the custodian bank. Such balances, if any at
period end, are shown in the Statement of Assets and Liabilities
under the payable caption Amount due custodian. To
compensate the custodian bank for such overdrafts, the overdrawn
Trust may either (1) leave funds as a compensating balance
in the account so the custodian bank can be compensated by
earning the additional interest; or (2) compensate by
paying the custodian bank at a rate agreed upon by the custodian
bank and Invesco, not to exceed the contractually agreed upon
rate.
Inverse floating rate obligations resulting from the
transfer of bonds to Dealer Trusts are accounted for as secured
borrowings. The average floating rate notes outstanding and
average annual interest and fees related to inverse floating
rate note obligations during the six months ended
August 31, 2012 were $74,889,286 and 0.80%, respectively.
NOTE 6—Tax
Information
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 Trust’s capital accounts
to reflect income and gains available for distribution (or
available capital loss carryforward) under income tax
regulations. The tax character of distributions paid during the
year and the tax components of net assets will be reported at
the Trust’s fiscal year-end.
Capital loss carryforward is calculated and reported
as of a specific date. Results of transactions and other
activity after that date may affect the amount of capital loss
carryforward actually available for the Trust to utilize. The
Regulated Investment Company Modernization Act of 2010 (the
“Act”) eliminated the eight-year carryover period for
capital losses that arise in taxable years beginning after its
enactment date of December 22, 2010. Consequently, these
capital losses can be carried forward for an unlimited period.
However, capital losses with an expiration period may not be
used to offset capital gains until all net capital losses
without an expiration date have been utilized. Additionally,
post-enactment capital loss carryovers will retain their
character as either short-term or long-term capital losses
instead of as short-term capital losses as under prior law. The
ability to utilize capital loss carryforward in the future may
be limited under the Internal Revenue Code and related
regulations based on the results of future transactions.
17 Invesco
Van Kampen Trust For Investment Grade New York
Municipals
The Trust had a capital loss carryforward as of
February 29, 2012 which expires as follows:
| Capital Loss Carryforward* | ||||||||||||
| Expiration | Short-Term | Long-Term | Total | |||||||||
|
February 28, 2015
|
$ | 1,658,127 | $ | — | $ | 1,658,127 | ||||||
|
February 28, 2016
|
10,017,739 | — | 10,017,739 | |||||||||
|
February 28, 2017
|
15,077,563 | — | 15,077,563 | |||||||||
|
February 28, 2018
|
409,878 | — | 409,878 | |||||||||
| $ | 27,163,307 | $ | — | $ | 27,163,307 | |||||||
| * | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code. |
NOTE 7—Investment
Securities
The aggregate amount of investment securities (other than
short-term securities, U.S. Treasury obligations and money
market funds, if any) purchased and sold by the Trust during the
six months ended August 31, 2012 was $22,715,615 and
$12,189,873, respectively. Cost of investments on a tax basis
includes the adjustments for financial reporting purposes as of
the most recently completed federal income tax reporting
period-end.
| Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis | ||||
|
Aggregate unrealized appreciation of investment securities
|
$ | 48,295,668 | ||
|
Aggregate unrealized (depreciation) of investment securities
|
(5,597,814 | ) | ||
|
Net unrealized appreciation of investment securities
|
$ | 42,697,854 | ||
| Cost of investments for tax purposes is $445,683,049. | ||||
NOTE 8—Auction
Rate Preferred Shares
The Trust is authorized to issue Auction Rate Preferred Shares
(“ARPS”). From May 22, 2012 through June 1,
2012, the Trust redeemed all of its outstanding ARPS at their
respective liquidation preference, including accrued and unpaid
dividends, if any, through the redemption date. The redemptions
were funded with cash and proceeds received from the issuance of
VMTP Shares.
Historically, the Trust paid annual fees equivalent
to 0.25% of the ARPS liquidation value for the remarketing
efforts associated with the auction. Effective March 16,
2009, the Trust decreased this amount to 0.15% due to auction
failures. These fees are included as a component of Interest,
facilities and maintenance fees expense on the Statement of
Operations. Dividends, which are cumulative, are reset through
auction procedures.
|
Range of |
||||
| Series | Dividend Rates† | |||
|
A
|
0.107-0.381 | % | ||
|
B
|
0.033-0.232 | |||
|
C
|
0.198-0.396 | |||
| † | For the period March 1, 2012 through June 1, 2012. |
The Trust was subject to certain restrictions
relating to the ARPS. Failure to comply with these restrictions
could have precluded the Trust from declaring any distributions
to common shareholders or purchasing common shares
and/or could
trigger the mandatory redemption of ARPS at liquidation value.
Beginning February 13, 2008 and continuing
through June 1, 2012, all series of ARPS of the Trust were
not successfully remarketed. As a result, the dividend rates of
these ARPS were reset to the maximum applicable rate.
Transactions in ARPS were as follows:
| Series A | Series B | Series C | ||||||||||||||||||||||
| Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
|
Outstanding at February 29, 2012
|
1,272 | $ | 31,800,000 | 954 | $ | 23,850,000 | 848 | $ | 21,200,000 | |||||||||||||||
|
Shares redeemed
|
(1,272 | ) | (31,800,000 | ) | (954 | ) | (23,850,000 | ) | (848 | ) | (21,200,000 | ) | ||||||||||||
|
Outstanding at August 31, 2012
|
— | $ | — | — | $ | — | — | $ | — | |||||||||||||||
18 Invesco
Van Kampen Trust For Investment Grade New York
Municipals
NOTE 9—Variable
Rate Muni Term Preferred Shares
On May 9, 2012, the Trust issued 768 Series 2015/6-VTN
VMTP Shares, with liquidation preference of $100,000 per share
pursuant to an offering exempt from registration under the
Securities Act of 1933. In addition, the Trust issued 136
Series 2015/6-VTN VMTP Shares in connection with the
reorganization of Invesco New York Quality Municipal Securities
into the Trust with a liquidation preference of $100,000 per
share. Proceeds from the issuance of VMTP Shares were used to
redeem all of the Trust’s outstanding ARPS. VMTP Shares are
a floating-rate form of preferred shares with a mandatory
redemption date. The Trust is required to redeem all outstanding
VMTP Shares on June 1, 2015, unless earlier redeemed,
repurchased or extended. VMTP Shares are subject to optional and
mandatory redemption in certain circumstances. The redemption
price per share is equal to the sum of the liquidation value per
share plus any accumulated but unpaid dividends and a redemption
premium, if any.
The Trust incurred costs in connection with the
issuance of VMTP Shares. These costs were recorded as a deferred
charge and will be amortized over the 3 year life of the
VMTP Shares. Amortization of these costs is included in
Interest, facilities and maintenance fees on the
Statement of Operations and the unamortized balance is included
in Deferred offering costs on the Statement of Assets and
Liabilities.
Dividends paid on the VMTP Shares (which are treated
as interest expense for financial reporting purposes) are
declared daily and paid monthly. The initial rate for dividends
is equal to the sum of 1.10% per annum plus the Securities
Industry and Financial Markets Association Municipal Swap Index.
Subsequent rates take into account a ratings spread which is
based on the long term preferred share ratings assigned to the
VMTP Shares by Moody’s and Fitch. The average liquidation
value outstanding and the average annualized dividend rate of
the VMTP Shares during the six months ended August 31, 2012
were $78,095,238 and 1.27%, respectively.
The Trust is subject to certain restrictions, such
as maintaining certain asset coverage and leverage ratio
requirements relating to the VMTP Shares. Failure to comply with
these restrictions could preclude the Trust from declaring any
distributions to common shareholders or purchasing common shares
and/or could trigger the mandatory redemption of VMTP Shares at
liquidation value.
For financial reporting purposes, the liquidation
value of VMTP Shares, which is considered debt of the issuer, is
recorded as a liability under the caption Variable rate muni
term preferred shares on the Statement of Assets and
Liabilities. Unpaid dividends on VMTP Shares are recognized as
Accrued interest expense on the Statement of Assets and
Liabilities. Dividends paid on VMTP Shares are recognized as a
component of Interest, facilities and maintenance fees on
the Statement of Operations.
NOTE 10—Common
Shares of Beneficial Interest
Transactions in common shares of beneficial interest were as
follows:
|
August 31, |
February 29, |
|||||||
| 2012 | 2012 | |||||||
|
Beginning shares
|
15,242,695 | 15,204,293 | ||||||
|
Shares issued through dividend reinvestment
|
21,489 | 38,402 | ||||||
|
Shares issued in connection with
acquisitions(a)
|
4,156,859 | — | ||||||
|
Ending shares
|
19,421,043 | 15,242,695 | ||||||
| (a) | As of the opening of business on August 27, 2012, the Trust acquired all the net assets of Invesco New York Quality Municipal Securities (the “Target Trust”) pursuant to a plan of reorganization approved by the Trustees of the Trust on November 28, 2011 and by the shareholders of the Target Trust on August 14, 2012. The acquisition was accomplished by a tax-free exchange of 4,156,859 common shares of the Trust for 4,030,280 common shares outstanding of the Target Trust as of the close of business on August 24, 2012. Shares of the Target Trust were exchanged for the like class of shares of the Trust, based on the relative net asset value of the Target Trust to the net asset value of the Trust at the close of business on August 24, 2012. The Target Trust’s net assets applicable to common shares as of the close of business on August 24, 2012 of $79,763,491, including $8,309,164 of unrealized appreciation, were combined with those of the Trust. The net assets applicable to common shares of the Trust immediately before the acquisition were $319,784,899 and $399,548,390 immediately after the acquisition. | |
| The pro forma results of operations for the six months ended August 31, 2012 assuming the reorganization had been completed on March 1, 2012, the beginning of the annual reporting period are as follows: |
|
Net investment income
|
$ | 8,386,778 | ||
|
Net realized/unrealized gains
|
8,011,838 | |||
|
Change in net assets resulting from operations
|
$ | 16,398,616 | ||
| The combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Trust that have been included in the Trust’s Statement of Operations since August 27, 2012. |
The Board of Trustees have approved share
repurchases whereby the Trust may, when appropriate, purchase
shares in the open market or in privately negotiated
transactions at a price not above market value or net asset
value, whichever is lower at the time of purchase.
NOTE 11—Dividends
The Fund declared the following dividends from net investment
income subsequent to August 31, 2012:
| Declaration Date | Amount Per Share | Record Date | Payable Date | |||||||||
|
September 4, 2012
|
$ | 0.084 | September 18, 2012 | September 28, 2012 | ||||||||
|
October 1, 2012
|
$ | 0.084 | October 12, 2012 | October 31, 2012 | ||||||||
19 Invesco
Van Kampen Trust For Investment Grade New York
Municipals
NOTE 12—Financial
Highlights
The following schedule presents financial highlights for a share
of the Trust outstanding throughout the periods indicated.
|
Six months |
Four months |
|||||||||||||||||||||||||||
|
ended |
Year ended |
ended |
||||||||||||||||||||||||||
|
August 31, |
February 29, |
February 28, |
Years ended October 31 | |||||||||||||||||||||||||
| 2012 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
|
Net asset value per common share, beginning of period
|
$ | 15.60 | $ | 13.42 | $ | 15.01 | $ | 14.00 | $ | 11.34 | $ | 15.80 | $ | 16.96 | ||||||||||||||
|
Net investment
income(a)
|
0.44 | 0.97 | 0.35 | 1.03 | 1.15 | 1.21 | 1.10 | |||||||||||||||||||||
|
Net gains (losses) on securities (both realized
and unrealized)
|
0.42 | 2.23 | (1.59 | ) | 1.00 | 2.41 | (4.59 | ) | (1.01 | ) | ||||||||||||||||||
|
Distributions paid to preferred shareholders:
|
||||||||||||||||||||||||||||
|
Dividends from net investment income
|
(0.00 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.04 | ) | (0.29 | ) | (0.32 | ) | ||||||||||||||
|
Distributions from net realized gain (losses)
|
— | — | — | — | — | — | (0.04 | ) | ||||||||||||||||||||
|
Total from investment operations
|
0.86 | 3.19 | (1.25 | ) | 2.01 | 3.52 | (3.67 | ) | (0.27 | ) | ||||||||||||||||||
|
Less distributions paid to common shareholders:
|
||||||||||||||||||||||||||||
|
Dividends from net investment income
|
(0.50 | ) | (1.01 | ) | (0.34 | ) | (1.00 | ) | (0.86 | ) | (0.79 | ) | (0.78 | ) | ||||||||||||||
|
Distributions from net realized gains
|
— | — | — | — | — | — | (0.11 | ) | ||||||||||||||||||||
|
Total distributions to common shareholders
|
(0.50 | ) | (1.01 | ) | (0.34 | ) | (1.00 | ) | (0.86 | ) | (0.79 | ) | (0.89 | ) | ||||||||||||||
|
Net asset value per common share, end of period
|
$ | 15.96 | $ | 15.60 | $ | 13.42 | $ | 15.01 | $ | 14.00 | $ | 11.34 | $ | 15.80 | ||||||||||||||
|
Market value per common share, end of period
|
$ | 16.30 | $ | 16.10 | $ | 13.46 | $ | 15.46 | $ | 14.38 | $ | 10.80 | $ | 14.91 | ||||||||||||||
|
Total return at net asset
value(b)
|
5.65 | % | 24.64 | % | (8.36 | )% | 14.83 | % | ||||||||||||||||||||
|
Total return at market
value(c)
|
4.53 | % | 28.25 | % | (10.76 | )% | 15.14 | % | 43.22 | % | (23.21 | )% | 4.38 | % | ||||||||||||||
|
Net assets applicable to common shares, end of period (000s
omitted)
|
$ | 310,057 | $ | 237,815 | $ | 204,026 | $ | 227,987 | $ | 212,052 | $ | 171,762 | $ | 243,701 | ||||||||||||||
|
Portfolio turnover
rate(d)
|
3 | % | 17 | % | 5 | % | 14 | % | 28 | % | 43 | % | 19 | % | ||||||||||||||
|
Ratios/supplemental data based on average net assets applicable to common shares: |
||||||||||||||||||||||||||||
|
Ratio of expenses:
|
||||||||||||||||||||||||||||
|
With fee waivers
and/or
expense
reimbursements(e)
|
1.63 | %(g) | 1.36 | % | 1.34 | %(h)(i) | 1.35 | % | 1.50 | % | 2.24 | % | 2.06 | % | ||||||||||||||
|
With fee waivers
and/or
expense reimbursements excluding interest, facilities and
maintenance
fees(e)(f)
|
1.07 | %(g) | 1.08 | % | 1.02 | %(h)(i) | 1.08 | % | 1.14 | % | 0.97 | % | 1.04 | % | ||||||||||||||
|
Without fee waivers
and/or
expense
reimbursements(e)
|
1.67 | %(g) | 1.40 | % | 1.34 | %(h)(i) | 1.45 | % | 1.68 | % | 2.41 | % | 2.21 | % | ||||||||||||||
|
Ratio of net investment income before preferred share dividends
|
5.56 | %(g) | 6.77 | % | 7.79 | %(i) | 7.07 | % | 9.12 | % | 8.19 | % | 6.71 | % | ||||||||||||||
|
Preferred share dividends
|
0.03 | %(g) | 0.08 | % | 0.15 | %(i) | ||||||||||||||||||||||
|
Ratio of net investment income after preferred share
dividends(f)
|
5.53 | %(g) | 6.69 | % | 7.64 | %(i) | 6.96 | % | 8.79 | % | 6.25 | % | 4.78 | % | ||||||||||||||
|
Senior securities: |
||||||||||||||||||||||||||||
|
Total amount of preferred shares outstanding (000’s
omitted)(j)
|
$ | 90,248 | $ | 76,850 | $ | 87,000 | $ | 87,000 | $ | 99,500 | $ | 116,000 | $ | 145,000 | ||||||||||||||
|
Asset coverage per preferred
shares(j)(k)
|
$ | 442,815 | $ | 102,363 | $ | 83,628 | $ | 90,514 | $ | 78,280 | $ | 62,029 | $ | 67,031 | ||||||||||||||
|
Liquidating preference per preferred
share(j)
|
$ | 100,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||||
| (a) | Calculated using average shares outstanding. | |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Not annualized for periods less than one year, if applicable. | |
| (c) | Total return assumes an investment at the common share market price at the beginning of the period indicated, reinvestment of all distributions for the period in accordance with the Trust’s dividend reinvestment plan, and sale of all shares at the closing common share market price at the end of the period indicated. Not annualized for periods less than one year, if applicable. | |
| (d) | Portfolio turnover is not annualized for periods less than one year, if applicable. For the period ended August 31, 2012, the portfolio turnover calculation excludes the value of securities purchased of $69,348,946 and sold of $0 in the effort to realign the Trust’s portfolio holdings after the reorganization of Invesco New York Quality Municipal Securities into the Trust. | |
| (e) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (f) | For the years ended October 31, 2010, and prior, ratios do not exclude facilities and maintenance fees. | |
| (g) | Ratios are annualized and based on average net assets applicable to common shares (000’s omitted) of $240,472. | |
| (h) | Ratios include an adjustment for a change in accounting estimate for professional services fees during the period. Ratios excluding this adjustment would have been higher by 0.06%. | |
| (i) | Annualized. | |
| (j) | For the years ended February 29, 2012 and prior, amounts are based on ARPS outstanding. | |
| (k) | Calculated by subtracting the Trust’s total liabilities (not including preferred shares) from the Trust’s total assets and dividing this by the number of preferred shares outstanding. For periods prior to February 28, 2011, calculated by subtracting the Trust’s total liabilities (not including preferred shares) from the Trust’s total assets and dividing this by preferred shares at liquidation value. |
20 Invesco
Van Kampen Trust For Investment Grade New York
Municipals
NOTE 13—Subsequent
Event
Effective December 3, 2012, the Trust will change its name
to Invesco Trust for Investment Grade New York Municipals.
NOTE 14—Legal
Proceedings
Terms used in the Legal Proceedings Note are defined terms
solely for the purpose of this note.
Pending Litigation and Regulatory Inquiries
The Trust received a shareholder demand letter dated
March 25, 2011 alleging that the Adviser and certain
individuals breached their fiduciary duties and wasted Trust
assets by causing the Trust to redeem Auction Rate Preferred
Securities (ARPS) at their par value at the expense of the Trust
and common shareholders. The shareholder claimed that the Trust
was not obliged to provide liquidity to preferred shareholders,
the redemptions were improperly motivated to benefit the
Adviser, and the market value and fair value of the ARPS were
less than par at the time they were redeemed. The shareholder
demands that: 1) the Board take action against the Adviser
and individuals to recover damages and 2) the Board refrain
from authorizing further redemptions or repurchases of ARPS by
the Trust at prices in excess of fair value or market value at
the time of the transaction. The Board formed a Special
Litigation Committee (“SLC”) to investigate these
claims and to make a recommendation to the Board regarding
whether pursuit of these claims is in the best interests of the
Trusts. Upon completion of its evaluation, the SLC recommended
that the Board reject the demands specified in the shareholder
demand letters, after which the Board publicly announced on
June 24, 2011, that it had adopted the SLC’s
recommendation and voted to reject the demands.
Management of Invesco and the Trust believe that the
outcome of the demand letter described above will have no
material adverse effect on the Trust or on the ability of
Invesco to provide ongoing services to the Trust.
21 Invesco
Van Kampen Trust For Investment Grade New York
Municipals
Approval
of Investment Advisory and
Sub-Advisory
Contracts
The Board of Trustees (the Board) of Invesco Van Kampen Trust
for Investment Grade New York Municipals (the Fund) is required
under the Investment Company Act of 1940, as amended, to approve
annually the renewal of the investment advisory agreement with
Invesco Advisers, Inc. (Invesco Advisers) and the Master
Intergroup
Sub-Advisory
Contract (the
sub-advisory
contracts) with Invesco Asset Management Deutschland GmbH,
Invesco Asset Management Ltd., Invesco Asset Management (Japan)
Limited, Invesco Australia Limited, Invesco Hong Kong Limited,
Invesco Senior Secured Management, Inc. and Invesco Canada Ltd.
(collectively, the Affiliated
Sub-Advisers).
During contract renewal meetings held on May 15, 2012, the
Board as a whole, and the disinterested or
“independent” Trustees, who comprise more than 75% of
the Board, voting separately, approved the continuance of the
Fund’s investment advisory agreement and the
sub-advisory
contracts for another year. In doing so, the Board considered
the process that it follows in reviewing and approving the
Fund’s investment advisory agreement and
sub-advisory
contracts and the information that it is provided. The Board
determined that the Fund’s investment advisory agreement
and the
sub-advisory
contracts are in the best interests of the Fund and its
shareholders and the compensation to Invesco Advisers and the
Affiliated
Sub-Advisers
under the agreements is fair and reasonable.
The Board’s
Fund Evaluation Process
The Board, acting directly and through its committees, meets
throughout the year to review the performance of the Invesco Van
Kampen funds. Over the course of each year, the Board, acting
directly and through its committees, meets with portfolio
managers for the funds and other members of management to review
the performance, investment objective(s), policies, strategies
and limitations and investment risks of the funds. The Board
meets regularly and at designated contract renewal meetings each
year to conduct a review of the performance, fees, expenses and
other matters related to the funds. The Board also considered
materials it had received in approving the proposed
reorganization of a closed-end fund advised by Invesco Advisers
into the Fund.
During the contract renewal process, the Trustees
receive comparative performance and fee data regarding the funds
prepared by Invesco Advisers and an independent company, Lipper,
Inc. (Lipper). The independent Trustees are assisted in their
annual evaluation of the funds’ investment advisory
agreements by fund counsel.
In evaluating the fairness and reasonableness of the
Fund’s investment advisory agreement and
sub-advisory
contracts, the Board considered, among other things, the factors
discussed below. The Trustees recognized that the advisory fees
for the Invesco Van Kampen funds, including the Fund, reflect
the results of years of review and negotiation between the
Trustees and Invesco Advisers and previously Van Kampen Asset
Management, the funds’ predecessor investment adviser. The
Trustees’ deliberations and conclusions in a particular
year may be based in part on their deliberations and conclusions
regarding these same arrangements throughout the year and in
prior years. The Board noted the willingness of Invesco Advisers
personnel to engage in open and candid discussions with the
Board. One Trustee may have weighed a particular piece of
information differently than another Trustee.
The discussion below is a summary of the
Board’s evaluation with respect to the Fund’s
investment advisory agreement as well as a discussion of the
material factors and related conclusions that formed the basis
for the Board’s approval of the Fund’s investment
advisory agreement and
sub-advisory
contracts. Unless otherwise stated, this information is current
as of May 15, 2012, and may not reflect consideration of
factors that became known to the Board after that date,
including, for example, changes to the Fund’s performance,
advisory fees, expense limitations
and/or fee
waivers.
Factors and
Conclusions
| A. | Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers |
The Board reviewed the advisory services provided to the Fund by
Invesco Advisers under the Fund’s investment advisory
agreement, the performance of Invesco Advisers in providing
these services, and the credentials and experience of the
officers and employees of Invesco Advisers who provide these
services. Based on their meetings throughout the year with the
Fund’s portfolio managers, the Board concluded that these
individuals are competent and able to continue to carry out
their responsibilities under the Fund’s investment advisory
agreement or
sub-advisory
contracts, as applicable. The Board’s review of the
qualifications of Invesco Advisers to provide advisory services
included the Board’s consideration of Invesco
Advisers’ performance and investment process oversight,
independent credit analysis and investment risk management.
In determining whether to continue the Fund’s
investment advisory agreement, the Board considered the prior
relationship between Invesco Advisers (and previously Van Kampen
Asset Management) and the Fund, as well as the Board’s
knowledge of Invesco Advisers’ operations, and concluded
that it is beneficial to maintain the current relationship, in
part, because of such knowledge. The Board also considered
services that Invesco Advisers and its affiliates provide to the
Invesco Van Kampen funds, including the Fund, such as various
back office support functions, equity and fixed income trading
operations, internal audit and legal and compliance. The Board
concluded that the nature, extent and quality of the services
provided to the Fund by Invesco Advisers are appropriate and
satisfactory and the advisory services are provided in
accordance with the terms of the Fund’s investment advisory
agreement.
The Board reviewed the services capable of being
provided by the Affiliated
Sub-Advisers
under the
sub-advisory
contracts and the credentials and experience of the officers and
employees of the Affiliated
Sub-Advisers
who would provide such services. The Board concluded that the
sub-advisory
contracts benefit the Fund and its shareholders by permitting
Invesco Advisers to use the resources and talents of the
Affiliated
Sub-Advisers,
from time to time as necessary and appropriate, in managing the
Fund. The Board concluded that the nature, extent and quality of
the services capable of being provided by the Affiliated
Sub-Advisers
are appropriate and satisfactory and in accordance with the
terms of the Fund’s
sub-advisory
contracts.
| B. | Fund Performance |
The Board considered Fund performance as a relevant factor in
considering whether to approve the investment advisory
agreement. The Board did not view Fund performance as a relevant
factor in considering whether to approve the
sub-advisory
contracts for the Fund, as no Affiliated
Sub-Adviser
currently manages assets of the Fund.
The Board compared the Fund’s performance
during the past one, two, three, five and ten calendar years to
the performance of funds in the Fund’s Lipper performance
universe and against the applicable Lipper index. The Board
noted that the Fund’s performance was in the first quintile
of its performance universe for the one, two and three year
periods and the fourth quintile for the five and ten year
periods (the first quintile being the best performing funds and
the fifth quintile being the worst performing funds). When
considering a fund’s performance, the Board places emphasis
on trends and longer term returns.
| C. | Advisory and Sub-Advisory Fees and Fee Waivers |
The Board compared the Fund’s contractual advisory fee rate
to the contractual advisory fee rates of funds in the
Fund’s Lipper expense group at a common asset level. The
Board noted that the Fund’s contractual advisory fee rate
was below the median contractual advisory fee rate of funds in
its expense group. The Board also reviewed the methodology used
by Lipper in providing expense group information, which includes
using audited financial data from the most recent annual report
of each fund in the expense group that was publicly available as
of the end of the past calendar year and including only one fund
per investment adviser. The Board noted that comparative data is
22 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
as of varying dates, which may affect the comparability of data
during times of market volatility.
The Board also considered the Fund’s effective
fee rate (the advisory fee after advisory fee waivers and before
expense limitations/waivers), including comparisons, as
applicable, to advisory fee rates of other funds advised by
Invesco Advisers and its affiliates with investment strategies
similar to those of the Fund. The Board reviewed not only the
advisory fees but other fees and expenses (whether paid to
Invesco Advisers, its affiliates or others) and the Fund’s
overall expense ratio.
The Board compared the strategy of the Fund to that
of other client accounts of Invesco Advisers and the Affiliated
Sub-Advisers
and considered, as applicable, the fees charged to other client
accounts with investment strategies similar to those of the
Fund. The Board noted that Invesco Advisers or the Affiliated
Sub-Advisers
may charge lower fees to large institutional clients solely for
investment management services than to registered fund clients,
such as the Fund. Invesco Advisers reviewed with the Board the
significantly greater scope of services it provides to
registered fund clients, including the Fund, relative to other
client accounts. These additional services include provision of
administrative services, officers and office space, oversight of
service providers, preparation of shareholder reports, efforts
to support secondary market trading of the Fund’s shares,
preparation of financial information and regulatory compliance
under the Investment Company Act of 1940, as amended, and stock
exchange listing standards, including preparation for,
coordinating the solicitation of proxies for, and conducting
annual shareholder meetings. The Board noted that
sub-advisory
fees charged by the Affiliated
Sub-Advisers
to manage registered fund clients and to manage other client
accounts were often more comparable. The Board concluded that
the aggregate services provided to the Fund were sufficiently
different from those provided to institutional clients, and the
Board did not place significant weight on these fee comparisons.
The Board noted that Invesco Advisers has
contractually agreed to waive fees
and/or limit
expenses of the Fund through June 30, 2012 in an amount
necessary to limit total annual operating expenses to a
specified percentage of average daily net assets for each class
of the Fund. The Board also considered the effect this fee
waiver, and the discontinuation of this fee waiver on
June 30, 2012, would have on the Fund’s total
estimated expenses. The Board also considered that in the event
the proposed reorganization is consummated, Invesco Advisers has
contractually agreed, for at least two years from the closing
date of the reorganization, to waive advisory fees
and/or
reimburse expenses in an amount necessary to limit total annual
operating expenses to a specified percentage of average daily
net assets of the Fund.
The Board also considered the services capable of
being provided by the Affiliated
Sub-Advisers
pursuant to the
sub-advisory
contracts, as well as the allocation of fees between Invesco
Advisers and the Affiliated
Sub-Advisers
pursuant to the
sub-advisory
contracts. The Board noted that to the extent the Fund were to
utilize the Affiliated
Sub-Advisers,
Invesco Advisers would provide services related to oversight of
the Affiliated
Sub-Advisers
as well as the additional services described above other than
day-to-day
portfolio management. The Board also noted that the
sub-advisory
fees have no direct effect on the Fund or its shareholders, as
they are paid by Invesco Advisers to the Affiliated
Sub-Advisers.
Based upon the information and considerations
described above, the Board concluded that the Fund’s
advisory and
sub-advisory
fees are fair and reasonable.
| D. | Economies of Scale and Breakpoints |
The Board considered the extent to which there are economies of
scale in the provision of advisory services to the Fund. The
Board noted that most closed-end funds do not have fund level
breakpoints because closed-end funds generally do not experience
substantial asset growth after the initial public offering. The
Board noted that although the Fund does not benefit from
economies of scale through contractual breakpoints, the Fund
does share directly in economies of scale through lower fees
charged by third party service providers based on the combined
size of the registered fund clients advised by Invesco Advisers.
| E. | Profitability and Financial Resources |
The Board reviewed information from Invesco Advisers concerning
the costs of the advisory and other services that Invesco
Advisers and its affiliates provide to the Fund and the
profitability of Invesco Advisers and its affiliates in
providing these services. The Board reviewed with Invesco
Advisers the methodology used to prepare the profitability
information. The Board considered the profitability of Invesco
Advisers in connection with managing the Fund and the Invesco
Van Kampen funds. The Board noted that Invesco Advisers
continues to operate at a net profit from services Invesco
Advisers and its subsidiaries provide to the Fund and the
Invesco Van Kampen funds. The Board concluded that the level of
profits realized by Invesco Advisers and its affiliates from
providing services to the Fund is not excessive given the
nature, quality and extent of the services provided to the Fund.
The Board considered whether Invesco Advisers and each
Affiliated
Sub-Adviser
are financially sound and have the resources necessary to
perform their obligations under the investment advisory
agreement and
sub-advisory
contracts. The Board concluded that Invesco Advisers and each
Affiliated
Sub-Adviser
have the financial resources necessary to fulfill these
obligations.
| F. | Collateral Benefits to Invesco Advisers and its Affiliates |
The Board considered various other benefits received by Invesco
Advisers and its affiliates from the relationship with the Fund,
including the fees received for their provision of
administrative services to the Fund. The Board considered the
performance of Invesco Advisers and its affiliates in providing
these services and the organizational structure employed to
provide these services. The Board also considered that the
services are required for the operation of the Fund; that
Invesco Advisers and its affiliates can provide services, the
nature and quality of which are at least equal to those provided
by others offering the same or similar services; and that the
fees for such services are fair and reasonable in light of the
usual and customary charges by others for services of the same
nature and quality.
The Board considered that the Fund’s uninvested
cash and cash collateral from any securities lending
arrangements may be invested in money market funds advised by
Invesco Advisers pursuant to procedures approved by the Board.
The Board noted that Invesco Advisers receives advisory fees
from these affiliated money market funds attributable to such
investments, although Invesco Advisers has contractually agreed
to waive through varying periods the advisory fees payable by
the Fund. The waiver is in an amount equal to 100% of the net
advisory fee Invesco Advisers receives from the affiliated money
market funds with respect to the Fund’s investment in the
affiliated money market funds of uninvested cash, but not cash
collateral. The Board concluded that the Fund’s investment
of uninvested cash and cash collateral from any securities
lending arrangements in the affiliated money market funds is in
the best interests of the Fund and its shareholders.
23 Invesco
Van Kampen Trust for Investment Grade New York
Municipals
Proxy
Results
An Annual Meeting (“Meeting”) of Shareholders of
Invesco Van Kampen Trust for Investment Grade New York
Municipals (the “Fund”) was held on
July 17, 2012. The Meeting was held for the following
purpose:
| (1) | Elect two Class II Trustees, one by the holders of Common Shares and Preferred Shares voting together as a single class, and one Class II Trustee by the holders of Preferred Shares voting separately, each of whom will serve for a three-year term or until his or her successor has been duly elected and qualified. |
The results of the voting on the above matter were as follows:
|
Votes |
||||||||||||||||||
| Matter | Votes For | Against | ||||||||||||||||
|
(1)
|
Wayne W. Whalen | 12,837,932 | 1,032,344 | |||||||||||||||
| Linda Hutton Heagy(P) | 768 | 0 | ||||||||||||||||
The Meeting was adjourned until August 14, 2012, with
respect to the following proposals:
| (1) | Approval of an Agreement and Plan of Redomestication that provides for the reorganization of the Fund as a Delaware statutory trust by the holders of Common Shares and Preferred Shares voting separately. |
| (2) | Approval of an Agreement and Plan of Merger that provides for Invesco New York Quality Municipal Securities to merge with and into the Fund by holders of Common Shares and Preferred Shares voting separately. |
The results of the voting on the above matters were as follows:
|
Votes |
Votes |
Broker |
||||||||||||||||
| Matters | Votes For | Against | Abstain | Non-Votes | ||||||||||||||
|
(1)
|
Common Shares | 7,717,211 | 531,798 | 385,195 | 5,475,875 | |||||||||||||
| Preferred Shares | 768 | 0 | 0 | 0 | ||||||||||||||
|
(2)
|
Common Shares | 7,695,309 | 551,897 | 386,998 | 5,475,875 | |||||||||||||
| Preferred Shares | 768 | 0 | 0 | 0 | ||||||||||||||
| (P) | Election of Trustee by preferred shareholders only. |
24 Invesco
Vankampen Trust for Investment Grade New York
Municipals
Correspondence information
Send general correspondence to Computershare, P.O. Box 43078, Providence, RI 02940-3078.
Invesco privacy policy
You share personal and financial information with us that is necessary for your transactions
and your account records. We take very seriously the obligation to keep that information
confidential and private.
Invesco collects nonpublic personal information about you from account applications or other
forms you complete and from your transactions with us or our affiliates. We do not disclose
information about you or our former customers to service providers or other third parties except
to the extent necessary to service your account and in other limited circumstances as permitted by
law. For example, we use this information to facilitate the delivery of transaction confirmations,
financial reports, prospectuses and tax forms.
Even within Invesco, only people involved in the servicing of your accounts and compliance
monitoring have access to your information. To ensure the highest level of confidentiality and
security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed
federal standards. Special measures, such as data encryption and authentication, apply to your
communications with us on our website. More detail is available to you at invesco.com/privacy.
Trust holdings and proxy voting information
The Trust provides a complete list of its holdings four times in each fiscal year, at the
quarter-ends. For the second and fourth quarters, the lists appear in the Trust’s semiannual and
annual reports to shareholders. For the first and third quarters, the Trust files the lists with
the Securities and Exchange Commission (SEC) on Form N-Q. Shareholders can also look up the Trust’s
Forms N-Q on the SEC website at sec.gov. Copies of the Trust’s Forms N-Q may be reviewed and copied
at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of
the Public Reference Room, including information about duplicating fee charges, by calling 202 551
8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov.
The SEC file number for the Trust is shown below.
A description of the policies and procedures that the Trust uses to determine how to vote
proxies relating to portfolio securities is available without charge, upon request, from our
Client Services department at 800 341 2929 or at invesco.com/proxyguidelines. The information is
also available on the SEC website, sec.gov.
Information regarding how the Trust voted proxies related to its portfolio securities
during the 12 months ended June 30, 2012, is available at invesco.com/proxysearch. In
addition, this information is available on the SEC website at sec.gov.
Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to
individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is
the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional
money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
SEC file number: 811-06537
|
VK-CE-IGNYM-SAR-1 | Invesco Distributors, Inc. |
| ITEM 2. | CODE OF ETHICS. |
There were no amendments to the Code of Ethics (the “Code”) that applies to the
Registrant’s Principal Executive Officer (“PEO”) and Principal Financial Officer
(“PFO”) during the period covered by the report. The Registrant did not grant any
waivers, including implicit waivers, from any provisions of the Code to the PEO or
PFO during the period covered by this report.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
Investments in securities of unaffiliated issuers is included as part of the
reports to stockholders filed under Item 1 of this Form.
| ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
None.
| ITEM 11. | CONTROLS AND PROCEDURES. |
| (a) | As of August 13, 2012, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of August 13, 2012, the Registrant’s disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is |
| recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure. |
| (b) | There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
| ITEM 12. | EXHIBITS. |
12(a)(1)
|
Not applicable. | |
12(a)(2)
|
Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. | |
12(a)(3)
|
Not applicable. | |
12(b)
|
Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940. |
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.
Registrant: Invesco Van Kampen Trust for Investment Grade New York Municipals
By:
|
/s/ Colin Meadows | |||
| Colin Meadows | ||||
| Principal Executive Officer | ||||
Date:
|
November 8, 2012 |
Pursuant to the requirements of the Securities and 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:
|
/s/ Colin Meadows | |||
| Colin Meadows | ||||
| Principal Executive Officer | ||||
Date:
|
November 8, 2012 |
By:
|
/s/ Sheri Morris | |||
| Sheri Morris | ||||
| Principal Financial Officer | ||||
Date:
|
November 8, 2012 |
EXHIBIT INDEX
12(a) (1)
|
Not applicable. | |
12(a) (2)
|
Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. | |
12(a) (3)
|
Not applicable. | |
12(b)
|
Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940. |