<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT ADVISER Value Line, Inc.
220 East 42nd Street
New York, NY 10017-5891
DISTRIBUTOR Value Line Securities, Inc.
220 East 42nd Street
New York, NY 10017-5891
CUSTODIAN BANK State Street Bank and Trust
Co.
225 Franklin Street
Boston, MA 02110
SHAREHOLDER State Street Bank and Trust
SERVICING AGENT Co.
c/o NFDS
P.O. Box 419729
Kansas City, MO 64141-6729
INDEPENDENT Price Waterhouse LLP
ACCOUNTANTS 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
John W. Chandler
Leo R. Futia
Charles E. Reed
Paul Craig Roberts
OFFICERS Jean Bernhard Buttner
CHAIRMAN AND PRESIDENT
Charles Heebner
VICE PRESIDENT
John Risner
VICE PRESIDENT
David T. Henigson
VICE PRESIDENT and
SECRETARY/TREASURER
Jack M. Houston
ASSISTANT SECRETARY/TREASURER
Stephen La Rosa
ASSISTANT SECRETARY/TREASURER
</TABLE>
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.
THIS UNAUDITED REPORT IS ISSUED FOR INFORMATION OF SHAREHOLDERS. IT IS
NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS
PRECEDED OR ACCOMPANIED BY A CURRENTLY EFFECTIVE PROSPECTUS OF THE
TRUST (OBTAINABLE FROM THE DISTRIBUTOR).
VLF089296
------------------------------------
SEMI-ANNUAL REPORT
------------------------------------
AUGUST 31, 1996
----------------------------------------
VALUE LINE
NEW YORK
TAX EXEMPT
TRUST
[LOGO]
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
To Our Value Line New York
- -------------------------------------------
DEAR SHAREHOLDER:
The primary objective of the Value Line New York Tax Exempt Trust is to provide
investors with maximum income exempt from New York State, New York City and
federal personal income taxes, without undue risk to principal. During the
six-months ended August 30, 1996, the fund's total return was down 0.99%. Since
its inception in July, 1987, the total return for the Trust, assuming the
reinvestment of all dividends over that period, was 89.76%. This is equivalent
to an average annual total return of 7.24%. The fund's SEC yield as of August
30, 1996 was 4.71% and exceeded the average SEC yield of 4.63% for all New York
State municipal debt funds ranked by Lipper Analytical Services.
During the past six months ended August 30, 1996, prices of fixed-income
securities have declined as interest rates have risen. Long-term, tax-exempt
interest rates, as measured by the Bond Buyer's Index 40-Bond Index, rose from
5.71% on February 29th to 5.89% on August 30th. During this same period,
long-term taxable rates, as measured by the 30-year Treasury bond, increased
from 6.47% to 7.12%. Most of this increase occurred early in this six-month
period, after a large non-farm payroll number was released by the government in
March. This awakened fears of more rapid economic growth and the possibility of
increased inflation which would cause interest rates to rise. Since March, the
fixed-income markets have fluctuated in a trading range between 6.22% and 5.63%
for long-term, tax-exempt bonds and between 7.19% and 6.63% for long-term
Treasury bonds. Economic indicators have been mixed, sometimes indicating a
stronger economy and other times indicating a slow down in economic growth.
Recently, the Federal Reserve decided not to increase the Federal Funds rate and
the markets have reacted by being stronger. Prices of long-term bonds have risen
and long-term interest rates have declined. As of October 1st, the Bond Buyer's
40-Bond Index declined to 5.85% and the 30-year Treasury bond declined to 6.87%.
Inflation appears to be restrained. The future direction of interest rates will
depend on the strength of the economy and the outlook for inflation.
In this environment of rising rates during the past six months, your fund's
management has reduced the average maturity of the fund from 15.1 to 13.9 years,
increased the yield of the fund, and emphasized the purchase of bonds with call
protection in order to maintain shareholder income without sacrificing safety of
principal. Management continues to avoid securities rated below investment grade
(defined as Baa or higher by Moody's Investors Service and as BBB or higher by
Standard & Poor's Corporation). As of August 30, 1996, the Trust's portfolio
consisted of 35% AAA bonds, 17% AA bonds, 2% A rated bonds, 7% MIG1 rated bonds,
and 39% Baa or BBB rated bonds. In addition, 19% of the portfolio is invested in
high-coupon, non-callable bonds. The portfolio's highest concentrations of
investments are in the insured, education-revenue, electric-revenue,
hospital-revenue, and general obligation sectors respectively.
The municipal bond market is one of the most fragmented and complex sectors of
the American capital markets. We believe that most investors seeking tax-free
income are best served by a mutual fund, whose advantages include professional
management, diversification, liquidity, low transaction costs, accurate record-
keeping, automatic reinvestment of dividends, and availability in small-dollar
amounts. In addition to these features, The Value Line Tax Exempt Fund has the
additional advantage of carrying no sales or redemption fees; it is a true
no-load fund.
We thank you for your continued confidence in Value Line, and we look forward to
serving your investment needs in the future.
Sincerely,
[SIGNATURE]
CHAIRMAN AND PRESIDENT
October 9, 1996
- --------------------------------------------------------------------------------
2
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
Tax Exempt Trust Shareholders
- -------------------------------------------
ECONOMIC OBSERVATIONS
Things continue to move along smoothly on the economic front, with the majority
of government and private-sector reports still indicating moderate, albeit
broad-based, growth. For example, recent figures show that retail spending and
industrial activity strengthened over the course of the summer, while
factory-use levels and auto sales remained quite high. Meanwhile, the housing
market continues to be resilient, in spite of higher mortgage rates, while
healthy employment growth is still helping to underpin consumer confidence.
Moreover, we don't see any marked changes in the economic trend over the final
months of the year, with a probable deceleration in growth during the next
several quarters not likely to be the opening salvo in a full-blown recession.
Our feeling is that unless the Federal Reserve, which opted to hold the line on
short-term interest rates in late September, decides to shift gears and tighten
the monetary reins aggressively after the November Presidential election, the
long business expansion will persist through at least 1997, although probably at
a more deliberate pace.
The danger, though, is that at some point we could get too much of a good thing,
namely a sharper economic slowdown than desired--or even a contraction in
business activity. True, such a turn of events would sustain the positive news
on inflation (and that would likely help the bond market). On the other hand, an
economic downturn would probably prove to be the undoing of the corporate profit
uptrend, and thus perhaps bring to a close the bull market in equities.
PERFORMANCE DATA:*
<TABLE>
<CAPTION>
GROWTH OF
AVERAGE AN ASSUMED
ANNUAL TOTAL INVESTMENT OF
RETURN $10,000
----------------------------
<S> <C> <C>
1 year ended 6/30/96.... 5.16% $ 10,516
5 years ended 6/30/96... 7.61% $ 14,428
From 7/2/87,+ to
6/30/96................ 7.26% $ 18,787
</TABLE>
* 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, 1996, AND FROM INCEPTION (7/2/87) THROUGH AUGUST 31, 1996, WERE
4.11%, 7.04%, AND 7.24%, RESPECTIVELY.
+ COMMENCEMENT OF OPERATIONS.
- --------------------------------------------------------------------------------
3
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
Schedule of Investments (unaudited)
- -------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT RATING VALUE
<C> <S> <C> <C>
- --------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL SECURITIES (92.6%)
NEW YORK STATE (75.1%)
$1,000,000 Albany County, General Obligations, 5.75%, 6/1/11...................... Aaa $1,008,070
Dormitory Authority, Revenue:
1,990,000 City University System, Crossover Refunding, Ser. D, 5.75%, 7/1/07..... Baa1 1,964,608
500,000 Cornell University, Refunding, 5.40%, 7/1/09........................... Aa 500,830
1,000,000 Court Facilities Lease, Ser. A, 5.625%, 5/15/13........................ Baa1 944,560
1,250,000 Department of Health, 5.75%, 7/1/17.................................... Baa1 1,176,238
1,000,000 Mental Health Services, Facilities Improvement, Ser. B, 6.00%,
2/15/12.............................................................. Baa1 998,970
New York University, Refunding Insured:
1,385,000 Ser. B, 5.00%, 7/1/09.................................................. Aaa 1,318,063
575,000 Ser. A, 5.00%, 7/1/11.................................................. Aaa 533,928
210,000 Rochester Hospital, Insured 5.55%, 8/1/12.............................. AAA* 201,421
1,500,000 State University Educational Facilities, Ser. A, 5.50%, 5/15/08........ Baa1 1,443,510
1,250,000 Upstate Community Colleges, Ser. A, 6.20%, 7/1/15...................... Baa1 1,233,487
500,000 W.K. Nursing Home Corp., 5.75%, 2/1/10................................. AAA* 503,835
1,000,000 Energy Research and Development Authority, Service Contract Revenue,
Refunding, Western New York Nuclear Service Center, 5.375%, 4/1/04... Aaa 1,025,290
1,250,000 Environmental Facilities Corp., Revenue, Water Pollution Control,
Revolving Fund, Ser. A, 5.20%, 12/15/16.............................. Aaa 1,165,625
1,090,000 Housing Finance Agency, Revenue, Multi-Family, Mortgage Housing, Ser.
C, Refunding, 6.45%, 8/15/14......................................... Aa 1,120,640
Medical Care Facilities Finance Agency, Revenue, Refunding:
480,000 Hospital and Nursing Home, Ser. B, 5.50%, 2/15/22...................... AAA* 445,330
700,000 Saint Mary's Hospital, Ser. A, 6.00%, 11/1/09.......................... Aaa 723,352
1,000,000 Mortgage Agency, Revenue Refunding, Homeowner Mortgage, Ser. 55, 5.95%,
10/1/17.............................................................. Aa 983,440
1,000,000 Niagara Falls, Water Treatment Plant, 7.25%, 11/1/11................... Aaa 1,156,110
890,000 Onondaga County, General Obligations, Ser. A, 5.85%, 5/1/10............ Aa 914,920
1,675,000 Power Authority, Revenue and General Purpose Refunding, Ser. W, 6.50%,
1/1/08............................................................... Aa 1,838,496
2,000,000 Thruway Authority, Highway and Bridge Trust Fund, Ser. A, 5.30%,
4/1/10............................................................... Aaa 1,944,080
Triborough Bridge and Tunnel Authority, Revenue:
1,500,000 Convention Center Project, Ser. E, 6.00%, 1/1/11....................... Baa1 1,487,070
1,350,000 General Purpose, Refunding, Ser. Y, 6.00%, 1/1/12...................... Aa 1,412,060
1,250,000 Urban Development Corp., Revenue, University Facilities Grant, 5.50%,
1/1/19............................................................... Baa1 1,149,075
----------
TOTAL NEW YORK STATE................................................... 27,193,008
----------
</TABLE>
- --------------------------------------------------------------------------------
4
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
AUGUST 31, 1996
- -------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT RATING VALUE
- --------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
NEW YORK CITY (11.1%)
General Obligation:
$1,000,000 Ser. F, 6.50%, 2/15/08................................................. Baa1 $1,017,410
1,000,000 Ser. A, 6.25%, 8/1/08.................................................. Baa1 996,620
500,000 Ser. E, 6.20%, 8/1/08.................................................. Aaa 538,905
500,000 Housing Development Corp., Multi-Family Housing Revenue, Ser. A, 5.50%,
11/1/09.............................................................. Aa 493,055
Industrial Development Agency:
Civic Facilities Revenue:
420,000 New School for Social Research Project, 6.00%, 9/1/09.................. Aaa 436,976
500,000 USTA National Tennis Center Project, 6.40%, 11/15/08................... Aaa 540,425
----------
TOTAL NEW YORK CITY.................................................... 4,023,391
----------
PUERTO RICO (6.4%)
750,000 Aqueduct and Sewer Authority, Revenue, Refunding, 6.25%, 7/1/12........ Baa1 781,418
1,500,000 Electric Power Authority, Power Revenue, Ser. T, 6.125%, 7/1/09........ Baa1 1,539,405
----------
TOTAL PUERTO RICO...................................................... 2,320,823
----------
TOTAL LONG-TERM MUNICIPAL SECURITIES................................... 33,537,222
----------
</TABLE>
- --------------------------------------------------------------------------------
5
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
SCHEDULE OF INVESTMENTS (UNAUDITED) AUGUST 31, 1996
- -------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT RATING VALUE
<C> <S> <C> <C>
- --------------------------------------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL SECURITIES (8.3%)
NEW YORK STATE (4.2%)
$ 750,000 Huntington, Union Free School District, Suffolk County,
Tax Anticipation Notes, dated 7/2/96, 4.25%, 6/24/97... MIG1 $ 752,340
750,000 Nassau County, Bond Anticipation Notes, Ser. C, dated
7/2/96, 4.25%, 3/14/97................................. MIGI 752,002
----------
TOTAL NEW YORK STATE..................................... 1,504,342
NEW YORK CITY (4.1%)
1,500,000 Municipal Water Finance Authority, Water and Sewer
System, Revenue, Ser. A, 4.00%, 6/15/25................ VMIG1(1) 1,500,000
----------
TOTAL SHORT-TERM MUNICIPAL SECURITIES.................... 3,004,342
----------
TOTAL MUNICIPAL SECURITIES (100.9%)
(COST $36,019,171)..................................... 36,541,564
EXCESS OF LIABILITIES OVER CASH AND
OTHER ASSETS (-.9%).................................... (315,544)
----------
NET ASSETS (100.0%)...................................... $36,226,020
----------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE,
PER OUTSTANDING SHARE.................................. $ 9.94
----------
</TABLE>
RATED BY MOODYS INVESTORS SERVICE EXCEPT FOR THOSE MARKED BY AN ASTERISK (*)
WHICH ARE RATED BY STANDARD & POOR'S.
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, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
6
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
AT AUGUST 31, 1996 (UNAUDITED)
FOR THE SIX MONTHS ENDED AUGUST 31, 1996
(UNAUDITED)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
DOLLARS
(IN THOUSANDS
EXCEPT
PER-SHARE
AMOUNT)
---------------
ASSETS:
<S> <C>
Investment securities, at
value
(Cost $36,019).............. $ 36,542
Cash.......................... 79
Interest receivable........... 392
Receivable for Trust shares
sold........................ 3
---------------
TOTAL ASSETS.............. 37,016
---------------
LIABILITIES:
Payable for securities
purchased................... 499
Payable for Trust shares
repurchased................. 173
Dividends payable to
shareholders................ 40
Accrued expenses:
Advisory fee................ 19
Other....................... 59
---------------
TOTAL LIABILITIES......... 790
---------------
NET ASSETS................ $ 36,226
---------------
NET ASSETS:
Capital stock, at $.01 par
value (authorized unlimited,
outstanding 3,645,159 shares
of beneficial interest)..... $ 36
Additional paid-in capital.... 35,622
Undistributed net investment
income...................... 5
Accumulated net realized gain
on investments.............. 41
Unrealized net appreciation of
investments................. 522
---------------
NET ASSETS................ $ 36,226
---------------
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE, PER
OUTSTANDING SHARE........ $ 9.94
---------------
</TABLE>
<TABLE>
<CAPTION>
DOLLARS
(IN
THOUSANDS)
-------------
INVESTMENT INCOME:
<S> <C>
Interest income............... $ 1,072
EXPENSES:
Advisory fee.................. 114
Auditing and legal fees....... 22
Printing and stationary....... 12
Custodian fees................ 7
Transfer agent fees........... 7
Directors' fees and
expenses.................... 6
Other......................... 5
-------------
TOTAL EXPENSES............ 173
-------------
NET INVESTMENT INCOME......... 899
-------------
NET REALIZED AND UNREALIZED
LOSS ON INVESTMENTS:
Net Realized Loss........... (408)
Change in Unrealized
Appreciation............... (922)
-------------
NET REALIZED LOSS AND CHANGE
IN UNREALIZED APPRECIATION
ON INVESTMENTS.............. (1,330)
-------------
NET DECREASE IN NET ASSETS
FROM OPERATIONS............. $ (431)
-------------
</TABLE>
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, 1996 (UNAUDITED), AND FOR THE YEAR ENDED
FEBRUARY 29, 1996
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR
AUGUST 31, ENDED
1996 FEBRUARY 29,
(UNAUDITED) 1996
-------------------------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
OPERATIONS:
Net Investment income......................................................... $ 899 $ 1,932
Net Realized (loss) gain on investments....................................... (408) 1,405
Change in net unrealized appreciation......................................... (922) 430
-------------------------------
Net (decrease) increase in net assets from operations......................... (431) 3,767
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment income......................................................... (894) (1,932)
-------------------------------
TRUST SHARE TRANSACTIONS:
Net proceeds from sale of shares.............................................. 1,396 3,247
Net proceeds from reinvestment of distributions to shareholders............... 633 1,393
Cost of shares repurchased.................................................... (4,647) (5,445)
-------------------------------
Net decrease in net assets from Trust share transactions...................... (2,618) (805)
-------------------------------
TOTAL (DECREASE) INCREASE IN NET ASSETS......................................... (3,943) 1,030
NET ASSETS:
Beginning of period........................................................... 40,169 39,139
-------------------------------
End of period................................................................. $ 36,226 $ 40,169
-------------------------------
NET UNDISTRIBUTED INVESTMENT
INCOME AT END OF PERIOD....................................................... $ 5 $ --
-------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
8
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) AUGUST 31, 1996
- -------------------------------------------
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
significant accounting policies are in conformity with generally accepted
accounting principles for investment companies. Such policies are consistently
followed by the Trust in the preparation of its financial statements. Generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results may differ from those estimates.
(A) SECURITY VALUATIONS: The Trusts 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 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 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 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 the 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 recorded on a trade-date basis.
Realized gains and losses from securities transactions are recorded on the
identified-cost basis. Interest income, adjusted for amortization of premium and
accretion of original- issue discounts on investments in accordance with federal
income-tax regulations, is earned from settlement date and recognized on the
accrual basis. Additionally, when appropriate, the Trust recognizes market
discount when the securities are disposed
- --------------------------------------------------------------------------------
9
<PAGE>
VALUE LINE NEW YORK TAX EXEMPT TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) AUGUST 31, 1996
- -------------------------------------------
of. Securities purchased or sold on a when-issued or delayed-delivery basis may
be settled a month or more after the trade date.
2.TRUST SHARE TRANSACTIONS
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
AUG. 31, ENDED
1996 FEB. 29,
(UNAUDITED) 1996
---------------------------
(IN THOUSANDS)
<S> <C> <C>
Shares sold................... 140 322
Shares issued to shareholders
in reinvestment of
distributions............... 64 138
---------------------------
204 460
Shares repurchased............ (468) (539)
---------------------------
Net decrease.................. (264) (79)
---------------------------
</TABLE>
3.PURCHASES AND SALES OF SECURITIES
Purchases and sales of municipal securities were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
AUGUST 31, 1996
(UNAUDITED)
---------------
(IN THOUSANDS)
<S> <C>
PURCHASES:
Long-term obligations....... $ 10,731
Short-term obligations...... 17,406
---------------
$ 28,137
---------------
MATURITIES OR SALES:
Long-term obligations....... $ 13,243
Short-term obligations...... 16,850
---------------
$ 30,093
---------------
</TABLE>
At August 31, 1996, the aggregate cost of investments for federal income-tax
purposes was $36,019,178. The aggregate appreciation and depreciation of
investments at August 31, 1996, based on a comparison of investment values and
their costs for federal income-tax purposes, was $1,058,468 and $563,082,
respectively, resulting in a net appreciation of $522,386.
During its fiscal tax year ended February 29, 1996, the Trust had a net realized
gain, after utilizing prior year's carry forward losses of $882,100, which it
intends to distribute to its shareholders.
4.INVESTMENT ADVISORY CONTRACT AND TRANSACTIONS WITH
AFFILIATES
An advisory fee of $114,047 was paid or payable to Value Line, Inc. (the
Adviser) for the six months ended August 31, 1996. This was computed at the rate
of 0.6 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, 1996, $2,880 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, 1996, Value Line, Inc. owned 377,828 shares of beneficial interest
in the Trust, representing 10.4% 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
AUGUST 31, YEARS ENDED ON LAST DAY OF FEBRUARY
1996 ----------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------
Net asset value, beginning of period.... $ 10.28 $ 9.81 $ 10.49 $ 10.84 $ 9.90 $ 9.50
---------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............. .237 .491 .523 .570 .596 .634
Net gains or losses on securities
(both realized and
unrealized).................... (.341) .470 (.611) .062 1.080 .400
---------------------------------------------------------------------
Total from investment
operations.................. (.104) .961 (.088) .632 1.676 1.034
---------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income............................ (.236) (.491) (.523) (.570) (.596) (.634)
Distributions from capital
gains............................. -- -- (.069) (.412) (.140) --
---------------------------------------------------------------------
Total distributions............ (.236) (.491) (.592) (.982) (.736) (.634)
---------------------------------------------------------------------
Net asset value, end of period.......... $ 9.94 $ 10.28 $ 9.81 $ 10.49 $ 10.84 $ 9.90
---------------------------------------------------------------------
Total return............................ (.99%)+ 10.00% (.58%) 5.98% 17.56% 11.18%
---------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)............................ $ 36,226 $40,169 $39,139 $44,190 $41,528 $35,478
Ratio of expenses to average net
assets................................ .91%* .92% .86% .87% .85% .92%
Ratio of net investment income to
average net assets.................... 4.73%* 4.87% 5.36% 5.21% 5.82% 6.50%
Portfolio turnover rate................. 31%+ 119% 105% 54% 137% 124%
</TABLE>
+ NOT ANNUALIZED, FOR SIX MONTHS PERIOD ONLY.
* ANNUALIZED
SEE NOTES TO FINANCIAL STATEMENTS.
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VALUE LINE NEW YORK TAX EXEMPT TRUST
THE VALUE LINE FAMILY OF FUNDS
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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 INVESTORS' 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.
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.
1992--VALUE LINE INTERMEDIATE BOND FUND seeks high current income consistent
with low volatility of principal by investing primarily in a diversified
portfolio of investment-grade debt 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.
1995--VALUE LINE U.S. MULTINATIONAL COMPANY FUND'S investment objective is
maximum total return. It invests primarily in securities of U.S. companies that
have significant sales from international operations.
* ONLY AVAILABLE THROUGH THE PURCHASE OF THE GUARDIAN INVESTOR, A TAX-DEFERRED,
VARIABLE ANNUITY, OR VALUEPLUS, A VARIABLE LIFE INSURANCE POLICY.
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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