- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
August 31, 1999
- --------------------------------------------------------------------------------
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, 1999, the Trust's total return was -3.38%. Since its
inception in July, 1987, the total return for the Trust, assuming the
reinvestment of all dividends over that period, has been 121.56%. This is
equivalent to an average annual total return of 6.76%. The Trust's SEC yield as
of August 31, 1999 was 4.16%, slightly below the average SEC yield of 4.31% for
all New York State municipal debt funds ranked by Lipper Analytical Services.
During the six months ended August 31, 1999, prices of fixed income securities
declined as interest rates increased. Long-term, tax-exempt interest rates, as
measured by the Bond Buyer's 40-Bond Index, increased from 5.17% on February
26th to 5.78% on August 31st. During this same period, long-term taxable rates,
as measured by the 30-year Treasury bond, rose from 5.58% to 6.06%. Two
increases in the Federal Funds rate of 0.25% each by the Federal Reserve Board,
the continued strength in the economy, and fears of inflationary pressures have
contributed to the rise in interest rates. As a result, the decline in interest
rates that occurred in the preceding six months was reversed. As of August 31st,
the Bond Buyer's 40-Bond Index was yielding 5.78% compared to 5.11% a year
before. The 30-year Treasury bond was yielding 6.06% compared to 5.27% a year
earlier.
Treasury bonds have outperformed tax-exempt bonds during the past six months.
The 30-year Treasury bond's yield increased 0.48% vs 0.61% for the Bond Buyer's
40-Bond Index. The superior performance of Treasury bonds vis-a-vis tax-exempt
bonds is a result of several factors. The tax-exempt market has experienced a
large supply of new issues and a decline in institutional demand. In contrast,
the Treasury market has experienced strong demand from institutions and a
decline in supply due to government Budget surpluses. As a result, the ratio of
tax-exempt yields to Treasury yields remains high. Recently, the yield on a
triple-A rated tax-exempt bond was 5.67% which is over 93% of the 6.08% yield of
the 30-year Treasury bond. This high ratio offers investors the opportunity to
realize relatively high tax-exempt income.
Your Trust's management has maintained the average maturity of the trust around
14 years and emphasized the purchase of high-grade bonds with call protection in
order to maintain shareholder income without sacrificing safety of principal. As
of August 31, 1999, the market value of the Trust's portfolio consisted of 50%
AAA, 37% AA, 6% A, and 7% Baa or BBB rated bonds. In addition, 9% 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 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 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 7, 1999
Income from the Trust may be subject to the Alternative Minimum Tax.
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2
<PAGE>
Value Line New York Tax Exempt Trust
Tax Exempt Trust Shareholders
- --------------------------------------------------------------------------------
Economic Observations
The economy is picking up some renewed strength as we head into the final months
of 1999. Evidence of this increased business activity can be found in the
accelerating rate of consumer spending, the ongoing strength in the housing
market, booming auto sales, and a modest uptick in manufacturing. Overall, this
recent firming in the key consumer and industrial markets suggests that GDP
growth, which slowed to a very modest 1.6% in the second quarter, will average
better than 3% during the final six months of the year, unless serious Year 2000
dislocations develop.
Inflationary pressures, meanwhile, are now starting to build, although, as yet,
we are not forecasting a dramatic change in trend. Nevertheless, the sharp runup
in oil prices in recent months, the escalation in wage costs, and the jump in
mortgage rates all indicate that the cost of living is increasing. A gradual
uptrend in pricing now seems likely over the next several quarters. The Federal
Reserve Board, taking note of these rising cost pressures, is likely to edge
toward a more restrictive monetary course in the months ahead, with perhaps an
additional interest rate boost in the cards.
Performance Data:*
Growth of
Average an Assumed
Annual Investment of
Total Return $10,000
------------ -------------
1 year ended 6/30/99 ........................ 1.41% $10,141
5 years ended 6/30/99 ....................... 5.92% $13,330
10 years ended 6/30/99 ....................... 6.69% $19,117
* 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, five-year,
and ten-year periods ended August 31, 1999, were -1.25%, 5.30%, and 6.60%,
respectively.
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3
<PAGE>
Value Line New York Tax Exempt Trust
<TABLE>
<CAPTION>
Schedule of Investments (unaudited)
- -------------------------------------------------------------------------------------------------------------------
Principal Rating
Amount (Unaudited) Value
- -------------------------------------------------------------------------------------------------------------------
LONG-TERM MUNICIPAL SECURITIES (95.5%)
NEW YORK STATE (76.1%)
<S> <C> <C> <C>
$ 1,000,000 Albany County, General Obligations, 5.75%, 6/1/11 ................. Aaa $ 1,032,610
Dormitory Authority, Revenue:
500,000 Bishop Henry B. Hucles Nursing Home, 5.625%, 7/1/18 ............. Aa1 494,525
500,000 Champlain Valley Hospitals, 6.00%, 7/1/10 ....................... AAA* 537,490
Long Island University, Asset Guaranty:
555,000 5.50%, 9/1/10 ................................................... AA* 565,650
500,000 5.00%, 8/1/14 ................................................... AA* 470,790
750,000 Lutheran Nursing Home, 5.125%, 2/1/18 ............................. Aaa 697,140
1,000,000 Mental Health Services Facilities, 4.75%, 8/15/19 ................. Aaa 871,440
1,000,000 Montefiore Medical Center, 5.25%, 8/1/19 .......................... Aaa 978,090
450,000 Rochester Institute of Technology, 5.00%, 7/1/14 .................. Aaa 432,198
500,000 Rochester Institute of Technology, 5.30%, 7/1/17 .................. Aaa 485,590
1,000,000 St. Clares Hospital, Ser. B, 5.25%, 2/15/15 ....................... Baa1 949,220
500,000 State University Educational Facilities, 5.50%, 5/15/13 ........... A3 504,755
500,000 Terence Cardinal Cooke Health Care Center, 4.50%, 7/1/10 .......... Aa3 474,075
500,000 W.K. Nursing Home Corp., 5.75%, 2/1/10 ............................ AAA* 517,595
700,000 East Rochester, Housing Authority, Mortgage Revenue,
St. Johns Meadows, Ser. A, 5.05%, 8/1/07 ........................ AAA* 700,147
250,000 Energy Research & Development Authority, Pollution Control Revenue,
Refunding,Niagara Mohawk Project, Ser. A, 5.15%, 11/1/25 ........ Aaa 230,445
1,000,000 Environmental Facilities Corp., Pollution Control Revenue, Water,
Revolving Fund, Ser. E, 4.90%, 6/15/10 .......................... Aaa 982,180
750,000 Kenmore Housing Authority Student Housing
State University Buffalo Student Apt, 5.40%, 8/1/12 ............. AA* 742,545
700,000 Medical Care Facilities Finance Agency, Revenue, Refunding,
Saint Mary's Hospital, Ser. A, 6.00%, 11/1/09 ................... Aaa 746,655
Mortgage Agency, Revenue Refunding, Homeowner Mortgage:
510,000 Ser. 77-A, 4.60%, 4/1/10 ........................................ Aa2 482,134
525,000 Ser. 61, 5.60%, 10/1/11 ......................................... Aa2 529,510
1,000,000 Ser. 55, 5.95%, 10/1/17 ......................................... Aa2 1,019,440
1,440,000 Ser. 79-A, 4.75%, 4/1/23 ........................................ Aa2 1,414,872
1,000,000 Niagara Falls, Water Treatment Plant, 7.25%, 11/1/11 .............. Aaa 1,176,770
890,000 Onondaga County, General Obligations, Ser. A, 5.85%, 5/1/10 ....... Aa2 936,716
Refunding:
500,000 Ser. F, 5.25%, 9/15/11 .......................................... A2 500,820
750,000 Ser. G, 5.25%, 8/1/16 ........................................... A3 713,633
</TABLE>
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4
<PAGE>
Value Line New York Tax Exempt Trust
<TABLE>
<CAPTION>
August 31, 1999
- -------------------------------------------------------------------------------------------------------------------
Principal Rating
Amount (Unaudited) Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,000,000 Syracuse, Housing Authority, Mortgage Revenue,
Loretto Rest Home, Ser. A, 5.60%, 8/1/17 ........................ AAA* $ 989,920
520,000 Thruway Authority, Highway & Bridge Trust Fund,
Ser. B, 5.00%, 4/1/10 ........................................... Aaa 516,604
500,000 Triborough Bridge & Tunnel Authority, Revenue,
General Purpose, Ser. A, 4.75%, 1/1/16 .......................... Aa3 452,870
Urban Development Corp., Refunding, Corporate Purpose,
500,000 Senior Lien, 5.125%, 1/1/09 ..................................... Aaa 505,450
1,200,000 Corrtl Facs, Ser. B, 5.25%, 1/1/11 .............................. Aaa 1,203,984
1,000,000 Yonkers Ser. C , 5.25%, 6/1/12 .................................... Aaa 993,490
-----------
TOTAL NEW YORK STATE .............................................. 23,849,353
-----------
NEW YORK CITY (18.0%)
1,490,000 Housing Development Corp., Multi-Family Housing Revenue,
Ser. A, 5.625%, 5/1/12 .......................................... Aa2 1,538,857
Industrial Development Agency:
Civic Facilities Revenue:
500,000 College of Aeronautics Project, 5.45%, 5/1/18 ................... BBB* 477,420
500,000 USTA National Tennis Center Project, 6.40%, 11/15/08 ............ Aaa 547,870
250,000 Industrial Development Revenue, Brooklyn Navy Yard,
Cogen Partners, 6.20%, 10/1/22 .................................. Baa3 253,370
1,000,000 Nassau County, General Improvement Ser. C, 5.12%, 1/1/14 .......... Aaa 961,150
Transitional Finance Authority, Revenue, Future Tax Secured,
1,000,000 Ser. A, 5.25%, 11/15/13 ......................................... Aa3 990,050
1,000,000 Ser. B, 4.75%, 11/1/23 .......................................... Aa3 860,870
-----------
TOTAL NEW YORK CITY ............................................... 5,629,587
-----------
GUAM (1.4%)
500,000 Power Authority Revenue , Ser. A, 5.12%, 10/1/29 .................. Baa3 447,005
-----------
TOTAL LONG-TERM MUNICIPAL SECURITIES
(Cost $30,209,841) .............................................. 29,925,945
-----------
</TABLE>
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5
<PAGE>
Value Line New York Tax Exempt Trust
<TABLE>
<CAPTION>
Schedule of Investments (unaudited) August 31, 1999
- -------------------------------------------------------------------------------------------------------------------
Principal Rating
Amount (Unaudited) Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES (3.5%)
NEW YORK STATE (1.9%)
$ 600,000 Energy Research & Development Authority, Pollution Control Revenue,
Niagara Mohawk Power, Ser. A, 3.15%, 12/1/23 .................... A2(1) $ 600,000
-----------
NEW YORK CITY (1.6%)
400,000 General Obligations, Subser. B-3, 3.30%, 8/15/04 .................. VMIG1(1) 400,000
100,000 Water Finance Authority, Water & Sewer System Revenue,
Ser. C, 2.80%, 6/15/22 .......................................... VMIG1(1) 100,000
-----------
500,000
-----------
TOTAL SHORT-TERM MUNICIPAL SECURITIES
(Cost $1,100,000) ............................................... 1,100,000
-----------
TOTAL MUNICIPAL SECURITIES (99.0%)
(Cost $31,309,841) .............................................. 31,025,945
P
EXCESS OF CASH AND OTHER ASSETS
OVER LIABILITIES (1.0%) ......................................... 315,010
-----------
NET ASSETS (100.0%) ............................................... $31,340,955
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE,
PER OUTSTANDING SHARE ........................................... $ 9.78
===========
</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 payable on demand on interest rate
refix date and are secured by either letters of credit or other credit support
agreements from banks. The rates listed are as of August 31, 1999.
See Notes to Financial Statements
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6
<PAGE>
Value Line New York Tax Exempt Trust
Statement of Assets and Liabilities
at August 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
Dollars
(in thousands
except per share
amount)
----------------
Assets:
Investment securities, at value
(Cost $31,310) .......................................... $ 31,026
Cash ...................................................... 51
Receivable for securities sold ............................ 993
Interest receivable ....................................... 423
Receivable for Trust shares sold .......................... 3
--------
Total Assets .......................................... 32,496
--------
Liabilities:
Payable for securities purchased .......................... 1,007
Dividends payable to shareholders ......................... 36
Payable for Trust shares repurchased ...................... 17
Accrued expenses:
Advisory fee ............................................ 16
Other ................................................... 79
--------
Total Liabilities ..................................... 1,155
--------
Net Assets: ............................................... $ 31,341
========
Net Assets:
Capital stock, at $.01 par value
(authorized unlimited,
outstanding 3,203,460
shares of beneficial interest) .......................... $ 32
Additional paid-in capital ................................ 31,143
Accumulated net realized gain
on investments .......................................... 450
Unrealized net depreciation of
investments ............................................. (284)
--------
Net Assets ................................................ $ 31,341
========
Net Asset Value, Offering and
Redemption Price, per
Outstanding Share ....................................... $ 9.78
========
Statement of Operations
for the Six Months Ended August 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
Dollars
(in thousands)
------------
Investment Income:
Interest .................................................... $ 820
-------
Expenses:
Advisory fee ................................................ 98
Auditing and legal fees ..................................... 23
Printing and stationery ..................................... 21
Trustees' fees and expenses ................................. 8
Custodian fees .............................................. 7
Transfer agent fees ......................................... 6
Other ....................................................... 20
-------
Total expenses before
custody credits ....................................... 183
Less: custody credits ................................... (2)
-------
Net Expenses ............................................ 181
-------
Net Investment Income ....................................... 639
-------
Net Realized and Unrealized Gain (Loss) on
Investments:
Net Realized Gain ....................................... 10
Change in Unrealized
Appreciation (Depreciation) ........................... (1,764)
-------
Net Realized Gain and Change in
Unrealized Appreciation (Depreciation)
on Investments ............................................ (1,754)
-------
Net Decrease in Net Assets
from Operations ........................................... $(1,115)
=======
See Notes to Financial Statements.
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7
<PAGE>
Value Line New York Tax Exempt Trust
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
for the Six Months Ended August 31, 1999 (unaudited), and for the Year Ended February 28, 1999
- --------------------------------------------------------------------------------------------------
Six Months Ended Year Ended
August 31, 1999 February 28,
(unaudited) 1999
----------------------------------
(Dollars in thousands)
<S> <C> <C>
Operations:
Net investment income ........................................ $ 639 $ 1,380
Net realized gain on investments ............................. 10 442
Change in unrealized appreciation (depreciation) ............. (1,764) 9
---------------------------
Net (decrease) increase in net assets from operations ........ (1,115) 1,831
---------------------------
Distributions to Shareholders:
Net investment income ........................................ (647) (1,372)
Net realized gains ........................................... -- (1,042)
---------------------------
Net decrease in net assets from distributions ................ (647) (2,414)
---------------------------
Trust Share Transactions:
Net proceeds from sale of shares ............................. 1,293 3,160
Net proceeds from reinvestment of distribution to shareholders 437 1,737
Cost of shares repurchased ................................... (2,030) (5,508)
---------------------------
Net decrease in net assets from Trust share transactions ..... (300) (611)
---------------------------
Total Decrease in Net Assets ................................... (2,062) (1,194)
Net Assets:
Beginning of period .......................................... 33,403 34,597
---------------------------
End of period ................................................ $ 31,341 $ 33,403
===========================
Undistributed Net Investment Income at end of period ........... $ -- $ 8
===========================
</TABLE>
See Notes to Financial Statements.
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8
<PAGE>
Value Line New York Tax Exempt Trust
Notes to Financial Statements (unaudited) August 31, 1999
- --------------------------------------------------------------------------------
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 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 (the "Service") approved by the Trustees.
Investments for which quoted bid prices in the judgment 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, 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, the Trust recognizes market discount when the
securities are disposed.
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9
<PAGE>
Value Line New York Tax Exempt Trust
Notes to Financial Statements (unaudited) August 31, 1999
- --------------------------------------------------------------------------------
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:
Six Months
Ended Year
August 31, Ended
1999 February 28,
(unaudited) 1999
---------------------------
(in thousands)
Shares sold .................................... 128 300
Shares issued to shareholders
in reinvestment of
distributions ................................ 44 167
--------------------
172 467
Shares repurchased ............................. (202) (525)
--------------------
Net decrease ................................... (30) (58)
====================
3. Purchases and Sales of Securities
Purchases and sales of municipal securities were as follows:
Six Months
Ended
August 31, 1998
(unaudited)
---------------
(in thousands)
Purchases:
Long-term obligations ..................................... $ 16,549
Short-term obligations..................................... 3,100
--------
$ 19,649
========
maturities or Sales:
Long-term obligations ..................................... $ 16,420
Short-term obligations..................................... 3,500
--------
$ 19,920
========
At August 31, 1999, the aggregate cost of investments for federal income tax
purposes was $31,309,841. The aggregate appreciation and depreciation of
investments at August 31, 1999, based on a comparison of investment values and
their costs for federal income tax purposes, was $471,354 and $755,250,
respectively, resulting in a net depreciation of $283,896.
4. Investment Advisory Contract and Transactions With Affiliates
An advisory fee of $97,920 was paid or payable to Value Line, Inc. (the
"Adviser") for the six months ended August 31, 1999. This was computed at the
rate of .60 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 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.
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, 1999, the Adviser owned 120,260 shares of beneficial interest in
the Trust, representing 3.8% 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, 1999 -------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ...................... $10.33 $10.51 $10.04 $10.28 $ 9.81 $10.49
--------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income ........ .20 .43 .44 .48 .49 .52
Net gains or losses on securities
(both realized and unrealized) (.55) .14 .47 (.11) .47 (.61)
--------------------------------------------------------------------
Total from investment
operations ................. (.35) .57 .91 .37 .96 (.09)
--------------------------------------------------------------------
Less distributions:
Dividends from net investment
income ..................... (.20) (.42) (.44) (.48) (.49) (.52)
Distributions from capital gains -- (.33) -- (.13) -- (.07)
--------------------------------------------------------------------
Total distributions......... (.20) (.75) (.44) (.61) (.49) (.59)
--------------------------------------------------------------------
Net asset value, end of period ... $ 9.78 $10.33 $10.51 $10.04 $10.28 $ 9.81
====================================================================
Total return ..................... (3.38%)+ 5.56% 9.31% 3.73% 10.00% (.58%)
====================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) ................. $31,341 $33,403 $34,597 $32,745 $40,169 $39,139
Ratio of expenses to
average net assets ............. 1.11%*(2) .98%(2) .92%(1) .92%(1) .92% .86%
Ratio of net investment income to
average net assets.............. 3.91%* 4.05% 4.35% 4.79% 4.87% 5.36%
Portfolio turnover rate .......... 53%+ 56% 116% 86% 119% 105%
</TABLE>
+ Not annualized, for six month period only.
* Annualized
(1) Before offset for custody credits.
(2) Ratio reflects expenses grossed up for custody credit arrangement. The
ratio of expenses net of custody credits would have been 1.10% at August
31, 1999 and .97% at February 28, 1999.
See Notes to Financial Statements
- --------------------------------------------------------------------------------
11
<PAGE>
Value Line New York Tax Exempt Trust
Other Information (unaudited)
- --------------------------------------------------------------------------------
Year 2000. Like other mutual funds, the Trust could be adversely affected if the
computer systems used by the Adviser and other service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. This is commonly known as the "Year 2000 Problem." The Adviser is
taking steps that it believes are reasonably designed to address the Year 2000
Problem with respect to the computer systems that it uses and to obtain
satisfactory assurances that comparable steps are being taken by the Trust's
other major service providers. At this time, however, there can be no assurance
that these steps will be sufficient to avoid any adverse impact to the Trust.
The Year 2000 Problem is expected to impact corporations, which may include
issuers of portfolio securities held by the Trust, to varying degrees based upon
various factors, including, but not limited to, the corporation's industry
sector and degree of technological sophistication. The Trust is unable to
predict what impact, if any, the Year 2000 Problem will have on issuers of the
portfolio securities held by the Trust.
- --------------------------------------------------------------------------------
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 PricewaterhouseCoopers LLP
ACCOUNTANTS 1177 Avenue of the Americas
New York, NY 10036-2798
LEGAL COUNSEL Peter D. Lowenstein, Esq.
Two Greenwich Plaza, Suite 100
Greenwich, CT 06830
TRUSTEES Jean Bernhard Buttner
John W. Chandler
David H. Porter
Paul Craig Roberts
Nancy-Beth Sheerr
OFFICERS Jean Bernhard Buttner
Chairman and President
Charles Heebner
Vice President
Raymond S. Cowen
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).
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