<PAGE>
INVESTMENT ADVISER
Value Line, Inc. SEMI-ANNUAL REPORT
220 East 42nd Street, New York, NY 10017-5891 AUGUST 31, 1995
DISTRIBUTOR
Value Line Securities, Inc. VALUE LINE
220 East 42nd Street, New York, NY 10017-5891 NEW YORK
TAX EXEMPT
CUSTODIAN BANK TRUST
State Street Bank and Trust Company
225 Franklin Street, Boston, MA 02110
SHAREHOLDER SERVICING AGENT
State Street Bank and Trust Company c/o NFDS
P.O. Box 419729, Kansas City, MO 64141-6729
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas, New York, NY 10036
LEGAL COUNSEL
Peter D. Lowenstein, Esq.
Two Greenwich Plaza, Suite 100
Greenwich, CT 06830
TRUSTEES
Jean Bernhard Buttner Leo R. Futia
Charles E. Reed Paul Craig Roberts
John W. Chandler
OFFICERS
Jean Bernhard Buttner Raymond S. Cowen
CHAIRMAN PRESIDENT
Charles Heebner
VICE PRESIDENT
David T. Henigson
VICE PRESIDENT, SECRETARY/TREASURER
Jack M. Houston Stephen La Rosa
ASSISTANT ASSISTANT
SECRETARY/TREASURER SECRETARY/TREASURER
The financial statements included herein have been taken
from the records of the Trust without examination by the
independent accountants and, accordingly, they
do not express an opinion thereon. [LOGO]
This unaudited report is issued for the information of
shareholders. It is not authorized for distribution to VALUE LINE
prospective investors unless preceded or MUTUAL FUNDS
accompanied by a currently effective prospectus
of the Trust (obtainable from
the Distributor). DTJVLF # 406131
<PAGE>
[LOGO] TO OUR VALUE LINE NEW YORK
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
We are pleased to report that in the fiscal half-year period ended August 31,
1995, the Value Line New York Tax Exempt Trust continued to meet its objective
of providing New York taxpayers with maximum income exempt from New York State,
New York City, and federal income taxes while avoiding undue risk
to principal.
In the aftermath of the Orange County, California, bankruptcy, shareholders may
rest assured that this Trust continues--as it has since its inception in July
1987--to avoid the type of risky derivatives that caused the West Coast debacle.
Also following a policy maintained since its inception, the Trust remains
extremely liquid, holding only well recognized, widely traded securities--all
rated investment grade by Moody's or Standard & Poor's. In addition, we do not
purchase small bond issues, even when of investment grade. Although they offer
higher yields, these issues usually are discounted sharply in the secondary
market, often resulting in large losses when sold. At the midpoint of the
current fiscal year, the portfolio consisted of 56% highest-rated Aaa and MIG1
bonds, 20% AA, 8% A, and 16% rated investment grade Baa by Moody's or BBB by
Standard and Poor's.
After the close of 1994, a year generally acknowledged to have been one of the
worst periods in modern bond-market history, the markets abruptly reversed
direction. During the first seven months of 1995, bond values regained a
significant portion of their previous year's losses. Although prices softened
again in August, at the end of that month (the midpoint of the Trust's 1996
fiscal year) the Trust's net asset value stood at $10.01 a share, an increase of
7.4% from its value of $9.32 a share at the start of the calendar year. Of
course, the growth in the Trust's asset value brought about a decline in its
yield. As of August 31, 1995, the Trust's annualized 30-day,
dividend-distribution yield, based on actual triple-tax-free distributions to
shareholders, was 4.79%, translating to a fully taxable-equivalent yield of
9.00% at the highest current federal, state, and New York City tax rates. The
annualized, 30-day SEC yield, calculated using the yield-to-maturity formula
mandated by the Securities & Exchange Commission, was 4.62%. In the January 1st
through August 31st time period, the combination of reinvested dividends and
increase in net asset value brought your Trust's total return to 11.2%, compared
to the 12.1% total return posted by the Lehman Brothers Municipal Bond Index
(National) during the same portion of the year.
With the nation's economy apparently positioned for a desired "soft landing,"
combining slow growth with moderate inflation, the fixed-income markets are
likely to be less volatile in the immediate future than they have been during
the past two years. This environment affords your Trust an opportunity to become
slightly less defensive in portfolio management in pursuit of an increase in
current yield.
We thank you for your continued confidence in the Value Line New York Tax Exempt
Trust, and we look forward to serving you in the months and years ahead.
Sincerely,
Jean Bernhard Buttner
CHAIRMAN
September 15, 1995
2
<PAGE>
TAX EXEMPT TRUST SHAREHOLDERS
- --------------------------------------------------------------------------------
ECONOMIC OBSERVATIONS
The economy is giving off mixed signals. For example, housing activity,
benefitting from earlier reductions in mortgage rates, remains quite strong, and
production at the nation's factories is once more on the rise after a period of
weakness during the middle months of the year. Conversely, a number of retailers
are reporting soft sales, and average employment growth remains somewhat below
the levels one would normally associate with a vigorous business expansion.
On balance, though, we think the current picture is more positive than not,
largely because of the more favorable interest-rate structure vis-a-vis earlier
in the year. Moreover, we would expect business conditions to remain relatively
upbeat and for the long-running economic expansion to prove largely sustainable.
All in all, we sense that the upturn, which faltered in the second quarter, as
the economy grew by just 1.3%, will strengthen moderately over the final months
of the year and then retain this upward bias in 1996.
Such a scenario, however, is probably not conducive to a major relaxation in
Federal Reserve policies. To be sure, this moderately more positive economic
tone should hardly be the lightning rod for a new round of monetary tightening.
Rather, it just seems that the recent reduction in short-term interest rates
will not be the opening salvo in a multi-step process. At best, we now see one
or two additional rate cuts in the months ahead--barring any sudden reversal in
business fortunes.
PERFORMANCE DATA:*
1 YEAR ENDED 5 YEARS ENDED FROM 7/2/87+
6/30/95 6/30/95 TO 6/30/95
-----------------------------------------------------
Average Annual Total Return 6.79% 7.95% 7.52%
* THE PERFORMANCE DATA QUOTED REPRESENT PAST PERFORMANCE AND ARE NO GUARANTEE
OF FUTURE PERFORMANCE. THE AVERAGE ANNUAL TOTAL RETURN INCLUDES DIVIDENDS
REINVESTED AND CAPITAL GAINS DISTRIBUTIONS ACCEPTED IN SHARES. THE INVESTMENT
RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN
INVESTMENT, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN ITS ORIGINAL COST.
THE AVERAGE ANNUAL TOTAL RETURN FOR THE ONE-YEAR AND FIVE-YEAR PERIODS, ENDED
AUGUST 31, 1995, AND FROM INCEPTION (7/2/87) THROUGH AUGUST 31, 1995, WERE
6.49%, 8.36%, AND 7.63%, RESPECTIVELY.
+ COMMENCEMENT OF OPERATIONS.
3
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS (UNAUDITED)
- -----------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT RATING VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (89.9%)
NEW YORK STATE (69.4%)
$1,000,000 Albany County, General Obligations, 5.75%, 6/1/11 Aaa $ 1,012,690
Dormitory Authority, Revenue:
City University System, 3rd Resolution-1:
525,000 6.125%, 7/1/11 Aaa 545,381
1,040,000 6.30%, 7/1/24 Aaa 1,071,158
1,000,000 Mount Sinai School of Medicine, Ser. B, 5.70%, 7/1/11 Aaa 1,017,690
New York University, Refunding:
1,385,000 Ser. B, 5.00%, 7/1/09 Aaa 1,323,589
675,000 Ser. A, 5.00%, 7/1/11 Aaa 627,426
1,060,000 State University Educational Facilities,
Ser. X, 7.00%, 7/1/08 Baa1 1,148,701
1,000,000 Energy Research and Development Authority,
Service Contract Revenue, Refunding, Western
New York Nuclear Service Center, 5.375%, 4/1/04 Aaa 1,035,740
985,000 Environmental Facilities Corp., Revenue, Water
Pollution Control, Revolving Fund, Ser. D, 6.90%, 5/15/15 Aaa 1,085,992
420,000 Erie County, General Obligations, Ser. B, 5.60%, 6/15/10 Aaa 423,011
1,090,000 Housing Finance Agency, Revenue, Multi-Family,
Mortgage Housing, Ser. C, Refunding, 6.45%, 8/15/14 Aa 1,119,746
575,000 Islip, General Obligations, 5.375%, 8/15/09 Aaa 571,912
Medical Care Facilities Finance Agency, Revenue:
500,000 Adult Day Care, Ser. A, 6.00%, 11/15/10 Aa 501,660
1,000,000 Saint Charles Hospital, Ser. F, 6.20%, 8/15/15 Aa 1,009,190
700,000 Saint Mary's Hospital, Ser. A, 6.00%, 11/1/09 Aaa 724,703
1,750,000 Metropolitan Transportation Authority, Revenue,
Transit Facilities, Ser. K, 6.00%, 7/1/16 Aaa 1,756,615
Niagara Falls, Water Treatment Plant:
500,000 6.10%, 11/1/01 Aaa 534,300
1,000,000 7.25%, 11/1/11 Aaa 1,152,970
890,000 Onondaga County, General Obligations, Ser. A, 5.85%, 5/1/10 Aa 919,886
4
<PAGE>
AUGUST 31, 1995
- -----------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT RATING VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$1,675,000 Power Authority, Revenue and General Purpose Refunding,
Ser. W, 6.50%, 1/1/08 Aa $1,847,123
1,000,000 Thruway Authority, Highway and Bridge Trust Fund,
Ser. A, 5.625%, 4/1/08 Aaa 1,028,460
Triborough Bridge and Tunnel Authority, Revenue:
1,500,000 Convention Center Project, Ser. E, 6.00%, 1/1/11 Baa1 1,496,865
General Purpose, Refunding:
1,000,000 Ser. A, 5.00%, 1/1/12 Aa 916,190
1,100,000 Ser. Y, 6.00%, 1/1/12 Aa 1,134,661
United Nations Development Corp., Senior Lien, Refunding
Bonds:
500,000 Ser. A, 6.00%, 7/1/12 A 499,420
1,250,000 Ser. A, 6.00%, 7/1/26 A 1,219,025
Urban Development Corp., Revenue:
1,000,000 Correctional Facilities, Ser. 5, 6.00%, 1/1/09 Baa1 995,360
500,000 Higher Education, Applied Technology, 5.70%, 4/1/09 Aaa 507,915
-----------
TOTAL NEW YORK STATE 27,227,379
-----------
NEW YORK CITY (14.0%)
General Obligation:
1,000,000 Ser. F, 6.50%, 2/15/08 Baa1 1,021,000
500,000 Ser. E, 6.20%, 8/1/08 Aaa 543,630
1,550,000 Ser. E, 5.75%, 5/15/12 Aaa 1,549,845
Industrial Development Agency:
Civic Facilities Revenue:
420,000 New School for Social Research Project, 6.00%, 9/1/09 Aaa 432,785
500,000 USTA National Tennis Center Project, 6.40%, 11/15/08 Aaa 542,890
500,000 Special Facilities Revenue, Terminal One Group
Association Project, 6.00%, 1/1/15 A 483,310
1,000,000 Municipal Water Finance Authority, Water and Sewer System,
Revenue, Ser. A, 5.50%, 6/15/20 A 917,740
-----------
TOTAL NEW YORK CITY 5,491,200
-----------
5
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
SCHEDULE OF INVESTMENTS
AUGUST 31, 1995 (UNAUDITED)
- -----------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT RATING VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PUERTO RICO (6.5%)
$1,500,000 Electric Power Authority, Power Revenue,
Ser. T, 6.125%, 7/1/09 Baa1 $1,554,540
1,000,000 Housing Bank and Finance Agency, Single Family Mortgage,
Revenue, 6.10%, 10/1/15 Aaa 1,003,220
-----------
TOTAL PUERTO RICO 2,557,760
-----------
TOTAL LONG-TERM MUNICIPAL SECURITIES 35,276,339
-----------
SHORT-TERM MUNICIPAL INVESTMENTS (7.8%)
NEW YORK STATE (4.5%)
750,000 Huntington, Union Free School District, Suffolk County,
Tax Anticipation Notes, dated 8/2/95, 4.25%, 6/27/96 MIG1 751,928
1,000,000 Nassau County, Bond Anticipation Notes, Ser. E,
dated 6/30/95, 4.25%, 3/15/96 MIG1 1,001,860
-----------
TOTAL NEW YORK STATE 1,753,788
-----------
NEW YORK CITY (3.3%)
200,000 General Obligation, Subser. B-4, 3.35%, 8/15/23 VMIG1(1) 200,000
1,100,000 Municipal Water Finance Authority, Water and Sewer System,
Revenue, Ser. C, 3.35%, 6/15/23 VMIG1(1) 1,100,000
-----------
TOTAL NEW YORK CITY 1,300,000
-----------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS 3,053,788
-----------
TOTAL MUNICIPAL SECURITIES (97.7%)
(Cost $36,690,013) 38,330,127
EXCESS OF CASH AND OTHER ASSETS
OVER LIABILITIES (2.3%) 883,954
-----------
NET ASSETS (100.0%) $39,214,081
-----------
-----------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE,
PER OUTSTANDING SHARE $10.01
-----------
-----------
</TABLE>
Rated by Moody's Investor Service.
Variable rate demand notes are considered short-term obligations. Interest
rates change every (1) day. These securities are secured by either letters of
credit or other credit-support agreements from banks. The rates listed are as of
August 31, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
STATEMENT OF ASSETS
AND LIABILITIES AT
AUGUST 31, 1995 (UNAUDITED)
- ----------------------------------------------------
DOLLARS
(IN THOUSANDS
EXCEPT PER-
SHARE AMOUNT)
-------------
ASSETS:
Investment securities, at value
(Cost $36,690) $38,330
Cash 55
Receivable for securities sold 537
Interest receivable 450
Receivable for trust shares sold 7
-------
TOTAL ASSETS 39,379
-------
LIABILITIES:
Dividends payable to shareholders 44
Payable for trust shares repurchased 42
Accrued expenses:
Advisory fee 20
Other 59
-------
TOTAL LIABILITIES 165
-------
NET ASSETS:
Capital stock, at $.01 par value
(authorized unlimited, outstanding
3,916,675 shares of
beneficial interest) 39
Additional paid-in capital 38,321
Accumulated net realized loss
on investments (786)
Unrealized net appreciation
of investments 1,640
-------
NET ASSETS $39,214
-------
-------
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
OUTSTANDING SHARE $10.01
-------
-------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
AUGUST 31, 1995 (UNAUDITED)
- ----------------------------------------------------
DOLLARS
(IN THOUSANDS)
INVESTMENT INCOME:
Interest Income $ 1,158
-------
EXPENSES:
Advisory fee 118
Auditing and legal fees 25
Printing, checks, and stationery 8
Transfer agent fees 8
Trustees' fees and expenses 6
Custodian fees 4
Other 7
-------
TOTAL EXPENSES 176
-------
NET INVESTMENT INCOME 982
-------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
NET REALIZED GAIN 169
CHANGE IN UNREALIZED
APPRECIATION 626
-------
NET REALIZED GAIN AND CHANGE IN
UNREALIZED APPRECIATION
ON INVESTMENTS 795
-------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $1,777
-------
-------
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED AUGUST 31, 1995,
AND FOR THE YEAR ENDED FEBRUARY 28, 1995
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
SIX MONTH ENDED
AUGUST 31, 1995 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1995
- -----------------------------------------------------------------------------------------------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
OPERATIONS:
Net investment income $982 $ 2,124
Realized gain (loss) on investments 169 (956)
Change in unrealized appreciation 626 (1,643)
------- --------
Net increase (decrease) in net assets from operations 1,777 (475)
------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (981) (2,124)
Capital gains -- (273)
------- --------
Net decrease in net assets from distributions (981) (2,397)
------- --------
TRUST SHARE TRANSACTIONS:
Net proceeds from sale of shares 1,496 4,958
Net proceeds from reinvestment of distributions to shareholders 710 1,761
Cost of shares repurchased (2,927) (8,898)
------- --------
Net decrease in net assets from Trust share transactions (721) (2,179)
------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS 75 (5,051)
NET ASSETS:
Beginning of period 39,139 44,190
------- --------
End of period $39,214 $39,139
------- --------
------- --------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Value Line New York Tax Exempt Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The investment objective of the Trust is to
provide New York taxpayers with the maximum income exempt from New York State,
New York City, and federal individual income taxes, while avoiding undue risk to
principal. The Trust will invest primarily in New York State municipal and
public authority debt obligations. The ability of the issuers of the securities
held by the Trust to meet their obligations may be affected by economic or
political developments in New York State and New York City. The following is a
summary of significant accounting policies consistently followed by the Trust
in the preparation of its financial statements.
(A) SECURITY VALUATIONS: The Trust's investments are valued each business day by
an independent pricing service ("Service") approved by the Trustees. Investments
for which quoted bid prices in the judgement of the Service are readily
available and are representative of the bid side of the market are valued at
quotations obtained by the Service from dealers in such securities. Other
investments (which constitute a majority of the portfolio securities) are valued
by the Service based on methods that include consideration of the following:
yields or prices of municipal securities of comparable quality, coupon,
maturity, and type; indications as to values from dealers; and general market
conditions.
Short-term instruments maturing within 60 days of the date of purchase will be
valued at amortized cost, which approximates value. Other assets and securities
for which no quotations are readily available will be valued in good faith at
their fair value using methods determined by the Trustees.
(B) DISTRIBUTIONS: It is the policy of the Trust to distribute all of its
investment income to shareholders. Dividends from net investment income will be
declared daily and paid monthly. Net realized capital gains, if any, are
distributed to shareholders annually. Income dividends and capital gains
distributions are automatically reinvested in additional shares of the Trust
unless the shareholder has requested otherwise. Income earned by the Trust on
weekends, holidays, and other days on which the Trust is closed for business is
declared as a dividend on the next day on which the Trust is open for business.
The amount of dividends and distributions from net investment income and the net
realized capital gains are determined in accordance with federal income-tax
regulations, which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassification.
(C) FEDERAL INCOME TAXES: It is the policy of the Trust to qualify as a
regulated investment company, which can distribute tax-exempt dividends, by
complying with the provisions available to certain investment companies, as
defined in applicable sections of the Internal Revenue Code, and to distribute
all of its investment income and capital gains to its shareholders. Therefore,
no federal income-tax or excise-tax provision is required.
(D) INVESTMENTS: Securities transactions are record-ed on a trade-date basis.
Realized gain and loss from securities transactions are recorded on the
identified-cost basis. Interest income, adjusted for amortization of premium and
accretion of original-issue discounts and market discount on investments in
accordance with federal income-tax regulations, is earned from settlement date
and recognized on the accrual basis. Securities purchased or sold on a
when-issued or delayed-delivery basis may be settled a month or more after the
trade date.
9
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
2. TRUST SHARE TRANSACTIONS
Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED YEAR ENDED
AUGUST 31, 1995 FEBRUARY 28,
(UNAUDITED) 1995
------------------------------------
(IN THOUSANDS)
Shares sold 151 509
Shares issued to
shareholders in
reinvestment
of distributions 71 183
---- ----
222 692
Shares repurchased (294) (918)
---- ----
Net decrease (72) (226)
---- ----
---- ----
3. PURCHASES AND SALES OF SECURITIES
Purchases and sales of municipal securities were as follows:
SIX MONTHS
ENDED
AUGUST 31, 1995
(UNAUDITED)
---------------
(IN THOUSANDS)
PURCHASES:
Long-term obligations $16,990
Short-term obligations 15,756
---------------
$32,746
---------------
---------------
MATURITIES OR SALES:
Long-term obligations $18,836
Short-term obligations 17,100
---------------
$35,936
---------------
---------------
At August 31, 1995, the aggregate cost of investments for federal income-tax
purposes was $36,690,013. The aggregate appreciation and depreciation of
investments at August 31, 1995, based on a comparison of investment values and
their costs for federal income-tax purposes, was $1,670,964 and $30,850,
respectively, resulting in a net appreciation of $1,640,114.
For federal income-tax purposes the Trust had a capital loss carryover at
February 28, 1995, of $882,100 which will expire in 2003. Any capital losses
incurred after October 31, within the Trust's tax year, if so elected, are
deemed to arise on the first day of the Trust's next taxable year. To the extent
future capital gains are offset by such capital losses, the Trust does not
anticipate distributing any such gains to its shareholders.
4. INVESTMENT ADVISORY CONTRACT AND
TRANSACTIONS WITH AFFILIATES
An advisory fee of $118,356 was paid or payable to Value Line, Inc. (the
Adviser) for the six months ended August 31, 1995. This was computed at the
annual rate of .6 of 1% per year of the Trust's average daily net assets for the
period. The Adviser provides research, investment programs, and supervision of
the investment portfolio and pays the costs of administrative services, office
space, and compensation of administrative, bookkeeping, and clerical personnel
necessary for managing the affairs of the Trust. The Adviser also provides
persons, satisfactory to the Trustees, to act as officers of the Trust and pays
their salaries and wages. The Trust bears all other costs and expenses in its
operation. During the six months ended August 31, 1995, $1,960 was paid or
payable to the Adviser for printing services.
Certain officers and directors of the Adviser and its subsidiary, Value Line
Securities, Inc. (the Trust's distributor and a registered broker/dealer), are
also officers and a Trustee of the Trust.
At August 31, 1995, the Adviser owned 360,391 shares of beneficial interest in
the Trust, representing 9.2% of the outstanding shares. In addition,
certain officers and Trustees owned 18,226 shares of beneficial interest in the
Trust, representing 0.5% of the outstanding shares.
10
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED ON LAST DAY OF FEBRUARY,
AUGUST 31, 1995 ----------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.81 $ 10.49 $ 10.84 $ 9.90 $ 9.50 $ 9.65
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .248 .523 .570 .596 .634 .707
Net gains or losses on securities
(both realized and unrealized) .200 (.611) .062 1.080 .400 (.150)
------- ------- ------- ------- ------- -------
Total from investment operations .448 (.088) .632 1.676 1.034 .557
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income (.248) (.523) (.570) (.596) (.634) ( .707)
Distributions from capital gains -- (.069) (.412) (.140) -- --
------- ------- ------- ------- ------- -------
Total distributions (.248) (.592) (.982) (.736) (.634) (.707)
------- ------- ------- ------- ------- -------
Net asset value, end of period $10.01 $9.81 $10.49 $10.84 $ 9.90 $ 9.50
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Total return 4.62%+ (.58%) 5.98% 17.56% 11.18% 5.99%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $39,214 $39,139 $44,190 $41,528 $35,478 $32,327
Ratio of expenses to average net assets .89%* .86% .87% .85% .92% .91%
Ratio of net investment income to
average net assets 4.96%* 5.36% 5.21% 5.82% 6.50% 7.46%
Portfolio turnover rate 48%+ 105% 54% 137% 124% 61%
</TABLE>
+ Not annualized; six-month period only.
* Annualized.
11
<PAGE>
THE VALUE LINE FAMILY OF FUNDS
- --------------------------------------------------------------------------------
1950 -- THE VALUE LINE FUND seeks long-term growth of capital along with
modest current income by investing substantially all of its assets in common
stocks or securities convertible into common stock.
1952 -- THE VALUE LINE INCOME FUND'S primary investment objective is
income, as high and dependable as is consistent with reasonable growth.
Capital growth to increase total return is a secondary objective.
1956 -- THE VALUE LINE SPECIAL SITUATIONS FUND seeks to obtain long-term
growth of capital by investing not less than 80% of its assets in "special
situations". No consideration is given to achieving current income.
1972 -- VALUE LINE LEVERAGED GROWTH INVESTOR'S sole investment objective is
to realize capital growth by investing substantially all of its assets in
common stocks. The Fund may borrow up to 50% of its net assets to increase
its purchasing power.
1979 -- THE VALUE LINE CASH FUND, a money market fund, seeks high current
income consistent with preservation of capital and liquidity.
1981 -- VALUE LINE U.S. GOVERNMENT SECURITIES FUND seeks maximum income
without undue risk to principal. Under normal conditions, at least 80% of the
value of its assets will be invested in issues of the U.S. Government and its
agencies and instrumentalities.
1983 -- VALUE LINE CENTURION FUND seeks long-term growth of capital as its
sole objective by investing primarily in stocks ranked 1 or 2 by Value Line
for year-ahead relative performance. The Fund is available to investors only
through the purchase of Guardian Investor, a tax deferred variable annuity,
or Value Plus, a variable life insurance policy.
1984 -- THE VALUE LINE TAX EXEMPT FUND seeks to provide investors with
maximum income exempt from federal income taxes while avoiding undue risk to
principal. The Fund offers investors a choice of two portfolios: a Money
Market Portfolio and a High-Yield Portfolio.
1985 -- VALUE LINE CONVERTIBLE FUND seeks high current income together with
capital appreciation primarily from convertible securities ranked 1 or 2 for
year-ahead performance by the Value Line Convertible Ranking System.
1986 -- VALUE LINE AGGRESSIVE INCOME TRUST seeks to maximize current income
by investing in high-yielding, lower-rated, fixed-income securities.
1987 -- VALUE LINE NEW YORK TAX EXEMPT TRUST seeks to provide New York
taxpayers with maximum income exempt from New York State, New York City and
federal income taxes while avoiding undue risk to principal.
1987 -- VALUE LINE STRATEGIC ASSET MANAGEMENT TRUST invests in stocks,
bonds and cash equivalents according to computer trend models developed by
Value Line. The objective is to professionally manage the optimal allocation
of these investments at all times. The Fund is available to investors only
through the purchase of the Guardian Investor, a tax deferred variable
annuity, or Value Plus, a variable life insurance policy.
1992 -- THE VALUE LINE ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
seeks high current income consistent with low volatility of principal by
investing primarily in adjustable rate U.S. Government securities.
1993 -- VALUE LINE SMALL-CAP GROWTH FUND invests primarily in common stocks
or securities convertible into common stock, with its primary objective being
long-term growth of capital.
1993 -- VALUE LINE ASSET ALLOCATION FUND seeks high total investment
return, consistent with reasonable risk. The Fund invests in stocks, bonds
and money market instruments utilizing quantitative modeling to determine
the correct asset mix.
- --------------------------------------------------------------------------------
FOR MORE COMPLETE INFORMATION ABOUT ANY OF THE VALUE LINE FUNDS, INCLUDING
CHARGES AND EXPENSES, SEND FOR A PROSPECTUS FROM VALUE LINE SECURITIES, INC.,
220 EAST 42ND STREET, NEW YORK, NEW YORK 10017-5891 OR CALL 1-800-223-0818,
24 HOURS A DAY, 7 DAYS A WEEK. READ THE PROSPECTUS CAREFULLY BEFORE YOU
INVEST OR SEND MONEY.
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