================================================================================
------------------
SEMI-ANNUAL REPORT
------------------
August 31, 1997
------------------
Value Line
New York
Tax Exempt
Trust
[LOGO]
VALUE LINE
No-Load
Mutual
Funds
<PAGE>
Value Line New York Tax Exempt Trust
To Our Value Line New York
- --------------------------------------------------------------------------------
To Our Shareholders:
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 31, 1997, the Trust's total return was 4.07%. Since its
inception in July, 1987, the total return for the Trust, assuming the
reinvestment of all dividends over that period, was 106.89%. This is equivalent
to an average annual total return of 7.41%. Your Trust's total return for the
January 1, 1997 through August 31, 1997 period was 5.09% compared to 5.06% for
the Lehman Brothers Municipal Bond Index during the same time period. The
Trust's SEC yield as of August 31, 1997 was 4.09% and exceeded the average SEC
yield of 4.06% for all New York State municipal debt funds ranked by Lipper
Analytical Services.
During the past six months ended August 31, 1997, prices of fixed income
securities have increased as interest rates have declined. Long-term, tax-exempt
interest rates, as measured by the Bond Buyer's Index 40-Bond Index, declined
from 5.76% on February 28, 1997 to 5.55% on August 31, 1997. During this same
period, long-term taxable rates, as measured by the 30-year Treasury bond,
declined a similar amount from 6.80% to 6.61%. The subdued inflationary
environment, the declining Federal deficit, and the strong U.S. dollar have
contributed to the decline in interest rates. The Federal Reserve has taken no
action to raise interest rates since March 1997, in spite of continued economic
growth and this has contributed to the positive performance of fixed-income
securities over the past six months. As of September 26, 1997, the Bond Buyer's
40-Bond Index declined further to 5.46%, close to its recent low of 5.34% on
October 15, 1993, and the 30-year Treasury bond declined to 6.38%, still over
half a percentage point above its recent low of 5.79% reached on October 15,
1993.
In this environment of declining rates during the past six months, your Trust's
management has maintained the average maturity of the trust at around 13 years
and emphasized the purchase of high-grade 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 and Poor's
Corporation). As of August 31, 1997, the market value of the Trust's portfolio
consisted of 50% AAA bonds, 29% AA bonds, and 21% Baa or BBB rated bonds. In
addition, 28% of the portfolio is invested in non-callable bonds. The
portfolio's highest concentrations of investments are in the insured,
housing-revenue, hospital-revenue, and electric-revenue 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, Value Line New York Tax
Exempt Trust 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,
/s/ Jean Bernhard Buttner
Jean Bernhard Buttner
Chairman and President
October 22, 1997
- --------------------------------------------------------------------------------
2
<PAGE>
Value Line New York Tax Exempt Trust
Tax Exempt Trust Shareholders
- --------------------------------------------------------------------------------
Economic Observations
The economy continues to push ahead, with such important indicators as the level
of manufacturing activity and the rate of employment growth exhibiting a
reasonably good degree of strength. Such trends, and a continuing healthy level
of consumer confidence, suggest that growth will average 2.5%-3.0% during the
closing half of the year. Thereafter, we would expect the expansion pace to
moderate somewhat, with real, inflation-adjusted GDP growth holding in the range
of 2.0%-2.5% in 1998.
Inflation, meanwhile, continues to be remarkably subdued. This healthy pricing
trend, which is all the more impressive given the longevity of the business
upcycle, is, moreover, unlikely to change dramatically in the months ahead.
Underscoring our optimism in this area is the recent hammering out of a budget
package which should reduce the government's need to borrow to finance the
deficit and the fact that there is still a lack of serious shortages on either
the labor or the raw-materials fronts.
Interest rates, meantime, reflecting the current, relatively moderate pace of
economic growth and the subdued pricing structure, are unlikely to increase much
over the next few months. Nevertheless, we caution that given the seeming
resiliency of the business expansion, an inflation-wary Federal Reserve will
probably not shy away from tightening the monetary reins if the present pricing
stability gives way. And an upward move in rates, if sufficiently pronounced,
would be poorly received, in our opinion, by both the stock and the bond markets
and, as well, by the U.S. economy down the road. The recent increase in
volatility in the financial markets suggests that many are now questioning
whether the current, benign environment can last much longer. We think a
cautious investment strategy is now in order.
Performance Data:*
Growth of
Average an Assumed
Annual Investment of
Total Return $10,000
------------ -------------
1 year ended 6/30/97 ......................... 7.97% $10,797
5 years ended 6/30/97 ........................ 6.21% $13,518
From 7/2/87,+ to 6/30/97 .................... 7.33% $20,284
* 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, 1997, and from inception (7/2/87) through August 31, 1997, were
9.03%, 6.29%, and 7.41%, respectively.
+ Commencement of operations.
- --------------------------------------------------------------------------------
3
<PAGE>
Value Line New York Tax Exempt Trust
Schedule of Investments (unaudited)
<TABLE>
<CAPTION>
====================================================================================================================================
Principal
Amount Rating Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (93.2%)
NEW YORK STATE (76.4%)
$1,000,000 Albany County, General Obligations, 5.75%, 6/1/11....................................... Aaa $ 1,044,640
300,000 Battery Park City Authority, Revenue, Ser. A, 5.40%, 11/1/09............................ Aaa 309,687
Dormitory Authority, Revenue:
250,000 Champlain Valley Hospitals, 6.00%, 7/1/10............................................. AAA* 270,250
1,000,000 City University System, Crossover Refunding, Ser. D, 5.75%, 7/1/07.................... Baa1 1,051,300
1,000,000 Court Facilities Lease, Ser. A, 5.50%, 5/15/10........................................ Baa1 1,006,150
635,000 Hebrew Home for the Aged, Riverdale, 5.625%, 2/1/17................................... AA* 650,297
625,000 Lakeside Nursing Home, 5.15%, 2/1/07.................................................. AAA* 636,181
555,000 Long Island University, Asset Guaranty, 5.50%, 9/1/10................................. AA* 569,752
1,170,000 Mental Health Services Facilities, Ser. B, 5.625%, 2/15/21............................ Baa1 1,158,686
1,000,000 Montefiore Medical Center, 6.00%, 2/1/09.............................................. Aaa 1,095,300
1,000,000 Nursing Home, Rosalind and Joseph Gerwin Jewish Geriatric Center of
Long Island, 5.40%, 7/1/15+........................................................ Aaa 994,490
85,000 Rochester Hospital, 5.55%, 8/1/12..................................................... AAA* 85,104
1,500,000 Rochester Institute of Technology, 5.30%, 7/1/17...................................... Aaa 1,479,240
500,000 St. John's University, 5.20%, 7/1/09.................................................. Aaa 507,670
500,000 W.K. Nursing Home Corp., 5.75%, 2/1/10................................................ AAA* 523,100
700,000 East Rochester, Housing Authority, Mortgage Revenue,
St. Johns Meadows, Ser. A, 5.05%, 8/1/07.............................................. AAA* 703,773
1,500,000 Hempstead, Industrial Development Agency, Resource Recovery Revenue,
Refunding, American Fuel Co. Project, 4.875%, 12/1/06................................. Aaa 1,504,875
Medical Care Facilities Finance Agency, Revenue, Refunding,
Presbyterian Hospital, Ser. A:
175,000 5.10%, 8/15/10...................................................................... Aa 176,552
1,000,000 5.25%, 8/15/14...................................................................... Aa 976,940
700,000 Saint Mary's Hospital, Ser. A, 6.00%, 11/1/09......................................... Aaa 746,914
Mortgage Agency, Revenue Refunding, Homeowner Mortgage:
525,000 Ser. 61, 5.60%, 10/1/11............................................................... Aa2 529,342
1,000,000 Ser. 55, 5.95%, 10/1/17............................................................... Aa2 1,033,260
940,000 Ser. 30-A, 4.375%, 10/1/23............................................................ Aa2 922,037
1,000,000 Niagara Falls, Water Treatment Plant, 7.25%, 11/1/11.................................... Aaa 1,212,700
890,000 Onondaga County, General Obligations, Ser. A, 5.85%, 5/1/10............................. Aa2 940,881
1,000,000 Port Authority of New York & New Jersey, Special Obligations Revenue,
JFK International Air Terminal, Ser. 6, 6.25%, 12/1/08................................ Aaa 1,106,510
500,000 Power Authority, Revenue and General Purpose Refunding,
Ser. W, 6.50%, 1/1/08................................................................. Aa 564,680
</TABLE>
- --------------------------------------------------------------------------------
4
<PAGE>
Value Line New York Tax Exempt Trust
August 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
Principal
Amount Rating Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$1,735,000 Thruway Authority, General Revenue, Ser. D, 5.30%, 1/1/09............................... Aa3 $ 1,779,520
1,500,000 Triborough Bridge and Tunnel Authority, Revenue,
Convention Center Project, Ser. E, 6.00%, 1/1/11...................................... Baa1 1,600,860
500,000 Urban Development Corp., Refunding, Corporate Purpose,
Senior Lien, 5.125%, 1/1/09........................................................... Aaa 504,315
-----------
TOTAL NEW YORK STATE ................................................................... 25,685,006
-----------
NEW YORK CITY (12.0%) General Obligation:
120,000 Ser. I, 5.625%, 4/15/05............................................................... Baa1 124,392
400,000 Ser. F, 6.50%, 2/15/08................................................................ Baa1 432,988
1,500,000 Housing Development Corp., Multi-Family Housing Revenue,
Ser. A, 5.625%, 5/1/12............................................................... Aa 1,525,755
Industrial Development Agency:
Civic Facilities Revenue:
420,000 New School for Social Research Project, 6.00%, 9/1/09............................... Aaa 449,526
500,000 USTA National Tennis Center Project, 6.40%, 11/15/08................................ Aaa 553,720
1,000,000 Transit Authority, Transportation Facilities Revenue,
Livingston Plaza Project, 5.25%, 1/1/20............................................... Aaa 961,780
-----------
TOTAL NEW YORK CITY .................................................................... 4,048,161
-----------
PUERTO RICO (4.8%)
1,500,000 Electric Power Authority, Power Revenue, Ser. T, 6.125%, 7/1/09......................... Baa1 1,599,390
-----------
TOTAL LONG-TERM MUNICIPAL SECURITIES ................................................... $31,332,557
-----------
</TABLE>
- --------------------------------------------------------------------------------
5
<PAGE>
Value Line New York Tax Exempt Trust
Schedule of Investments (unaudited) August 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
Principal
Amount Rating Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES (5.6%)
NEW YORK STATE (3.0%)
$1,000,000 Energy Research & Development Authority, Pollution Control Revenue,
Niagara Mohawk Power, Ser. A, 3.70%, 7/1/15.......................................... A1+*(1) $ 1,000,000
-----------
NEW YORK CITY (2.6%)
Municipal Water Finance Authority, Water and
Sewer System Revenue, Ser. C:
200,000 3.70%, 6/15/22...................................................................... VMIG1(1) 200,000
700,000 3.70%, 6/15/23...................................................................... VMIG1(1) 700,000
-----------
TOTAL NEW YORK CITY .................................................................... 900,000
-----------
TOTAL SHORT-TERM MUNICIPAL SECURITIES .................................................. 1,900,000
-----------
TOTAL MUNICIPAL SECURITIES (98.8%)
(Cost $31,839,674) .................................................................. 33,232,557
EXCESS OF CASH AND OTHER ASSETS
OVER LIABILITIES (1.2%) ............................................................. 402,611
-----------
NET ASSETS (100.0%) .................................................................... $33,635,168
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE,
PER OUTSTANDING SHARE ............................................................... $ 10.22
===========
</TABLE>
Rated by Moody's 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, 1997.
+ When issued security
See Notes to Financial Statements
- --------------------------------------------------------------------------------
6
<PAGE>
Value Line New York Tax Exempt Trust
Statement of Assets and Liabilities
at August 31, 1997 (unaudited)
================================================================================
Dollars
(in thousands
except per-share
amount)
----------------
Assets:
Investment securities, at value
(Cost $31,840) ............................................ $33,233
Cash ........................................................ 84
Receivable for securities sold .............................. 990
Interest receivable ......................................... 423
Receivable for Trust shares sold ............................ 1
-------
Total Assets ............................................ 34,731
-------
Liabilities:
Payable for securities purchased ............................ 1,001
Dividends payable to shareholders ........................... 35
Accrued expenses:
Advisory fee .............................................. 17
Other ..................................................... 43
-------
Total Liabilities ....................................... 1,096
-------
Net Assets: ............................................. $33,635
=======
Net Assets:
Capital stock, at $.01 par value (authorized
unlimited, outstanding 3,291,939
shares of beneficial interest) ............................ $ 33
Additional paid-in capital .................................. 32,058
Undistributed net investment income ......................... 8
Accumulated net realized gain on
investments ............................................... 143
Unrealized net appreciation of
investments ............................................... 1,393
-------
Net Assets .............................................. $33,635
=======
Net Asset Value, Offering and
Redemption Price, per
Outstanding Share ..................................... $ 10.22
=======
Statement of Operations
for the Six Months Ended August 31, 1997 (unaudited)
================================================================================
Dollars
(in thousands)
--------------
Investment Income:
Interest income ............................................. $ 878
-------
Expenses:
Advisory fee ................................................ 99
Auditing and legal fees ..................................... 19
Trustees' fees and expenses ................................. 8
Printing, stationery and other .............................. 8
Custodian fees .............................................. 7
Transfer agent fees ......................................... 6
-------
Total Expenses before custody
credits ............................................... 147
Less: custody credits ................................... (2)
-------
Net Expenses ............................................ 145
-------
Net Investment Income ....................................... 733
-------
Net Realized and Unrealized Gain on
Investments:
Net Realized Gain ......................................... 250
Change in Unrealized Appreciation ......................... 307
-------
Net Realized Gain and Change in
Unrealized Appreciation
on Investments ............................................ 557
-------
Net Increase in Net Assets
from Operations ........................................... $ 1,290
=======
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
7
<PAGE>
Value Line New York Tax Exempt Trust
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
for the Six Months Ended August 31, 1997 (unaudited), and for the Year Ended February 28, 1997
====================================================================================================================================
Six Months Ended Year Ended
August 31, 1997 February 28,
(unaudited) 1997
----------------------------------
(Dollars in thousands)
<S> <C> <C>
Operations:
Net Investment income .................................................................. $ 733 $ 1,734
Net Realized gain (loss) on investments ................................................ 250 (108)
Change in net unrealized appreciation .................................................. 307 (358)
------------------------------
Net increase in net assets from operations ............................................. 1,290 1,268
------------------------------
Distributions to Shareholders:
Net investment income .................................................................. (725) (1,734)
Net realized gains ..................................................................... -- (448)
------------------------------
Net decrease in net assets from distributions .......................................... (725) (2,182)
------------------------------
Trust Share Transactions:
Net proceeds from sale of shares ....................................................... 1,885 2,172
Net proceeds from reinvestment of distribution to shareholders ......................... 493 1,570
Cost of shares repurchased ............................................................. (2,053) (10,252)
------------------------------
Net increase in net assets from share transactions ..................................... 325 (6,510)
------------------------------
Total Increase (Decrease) in Net Assets .................................................. 890 (7,424)
Net Assets:
Beginning of period .................................................................... 32,745 40,169
------------------------------
End of period .......................................................................... $ 33,635 $ 32,745
==============================
Net Undistributed Investment
Income at end of period ................................................................ $ 8 $--
==============================
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
8
<PAGE>
Value Line New York Tax Exempt Trust
Notes to Financial Statements (unaudited) August 31, 1997
================================================================================
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 Valuation. 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 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 are valued at amortized cost,
which approximates value. Other assets and securities for which no quotations
are readily available are 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 are
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, 1997
================================================================================
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 in the Trust were as follows:
Six Months
Ended Year
August 31, Ended
1997 February 28,
(unaudited) 1997
--------------------------
(in thousands)
Shares sold ..................................... 186 218
Shares issued to shareholders
in reinvestment of
distributions ................................. 49 156
------------------
235 374
Shares repurchased .............................. 204 (1,022)
------------------
Net increase (decrease) ......................... 31 (648)
==================
3. Purchases and Sales of Securities
Purchases and sales of municipal securities were as follows:
Six Months
Ended
August 31, 1997
(unaudited)
---------------
(in thousands)
PURCHASES:
Long-term obligations .................................... $19,926
Short-term obligations ................................... 8,000
-------
$27,926
-------
MATURITIES OR SALES:
Long-term obligations .................................... $19,455
Short-term obligations ................................... 10,200
-------
$29,655
=======
At August 31, 1997, the aggregate cost of investments for federal income-tax
purposes was $31,839,674. The aggregate appreciation and depreciation of
investments at August 31, 1997, based on a comparison of investment values and
their costs for federal income-tax purposes, was $1,414,830 and $21,947,
respectively, resulting in a net appreciation of $1,392,883.
For federal income-tax purposes the Trust had a capital loss carryover at
February 28, 1997, of $107,675 which will expire in 2005. To the extent future
capital gains are offset by such capital losses, the Trust does not anticipate
distributing any such gains to the shareholders.
4. Investment Advisory Contract and Transactions With Affiliates
An advisory fee of $99,060 was paid or payable to Value Line, Inc. (the
Adviser), for the six months ended August 31, 1997. 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
operations.
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, 1997, Value Line, Inc. owned 107,463 shares of beneficial interest
in the Trust, representing 3.3% of the outstanding shares. In addition, certain
officers and Trustees owned 20,262 shares of beneficial interest in the Trust,
representing 0.6% 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 Years Ended on Last Day of February
August 31, 1997 -----------------------------------------------------------------------
(unaudited) 1997 1996 1995 1994 1993
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ......................... $10.04 $10.28 $9.81 $10.49 $10.84 $9.90
------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income ........... .225 .480 .491 .523 .570 .596
Net gains or losses on securities
(both realized and unrealized) .178 (.113) .470 (.611) .062 1.080
------------------------------------------------------------------------------------------
Total from investment
operations .................... .403 .367 .961 (.088) .632 1.676
------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income ........................ (.223) (.480) (.491) (.523) (.570) (.596)
Distributions from capital gains -- (.127) -- (.069) (.412) (.140)
------------------------------------------------------------------------------------------
Total distributions ........... (.223) (.607) (.491) (.592) (.982) (.736)
------------------------------------------------------------------------------------------
Net asset value, end of period ...... $10.22 $10.04 $10.28 $9.81 $10.49 $10.84
==========================================================================================
Total return ........................ 4.07%+ 3.73% 10.00% (.58%) 5.98% 17.56%
==========================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) .................... $33,635 $32,745 $40,169 $39,139 $44,190 $41,528
Ratio of expenses to
average net assets ................ .89%(1)* .92%(1) .92% .86% .87% .85%
Ratio of net investment income to
average net assets ................ 4.44%* 4.79% 4.87% 5.36% 5.21% 5.82%
Portfolio turnover rate ............. 65%+ 86% 119% 105% 54% 137%
</TABLE>
+ Not annualized, for six month period only.
* Annualized
(1) Before offset for custody credits.
See Notes to Financial Statements
- --------------------------------------------------------------------------------
11
<PAGE>
Value Line New York Tax Exempt Trust
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 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 to
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 corporate 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
individual 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.
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 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, or visit us at www.valueline.com. Read the
prospectus carefully before you invest or send money.
- --------------------------------------------------------------------------------
12
<PAGE>
================================================================================
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 Co.
SERVICING AGENT 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
Nancy-Beth Sheerr
OFFICERS Jean Bernhard Buttner
Chairman and President
Raymond S. Cowen
Vice President
Charles Heebner
Vice President
David T. Henigson
Vice President and
Secretary/Treasurer
Jack M. Houston
Assistant Secretary/Treasurer
Stephen La Rosa
Assistant 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.
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).
VLF708085
