================================================================================
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SEMI-ANNUAL REPORT
--------------------------------------------------------------------------------
August 31, 2000
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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
--------------------------------------------------------------------------------
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, 2000, the Trust's total return was 6.62% compared to
6.79% for the Lehman Municipal Bond Index. Since its inception in July, 1987,
the total return for the Trust, assuming the reinvestment of all dividends over
that period, was 134.86%. This is equivalent to an average annual total return
of 6.70%. The Trust's SEC yield was 4.08% as of August 31, 2000.
During the six months ended August 31, 2000, prices of fixed income securities
increased as interest rates declined. Long-term, tax-exempt interest rates, as
measured by the Bond Buyer's 40-Bond Index, declined from 6.17% on February 29th
to 5.72% on August 31st. During this same period, long-term taxable rates, as
measured by the 30-year Treasury bond, declined from 6.15% to 5.67%. The U.S.
government's surplus and the subsequent reduction of its publicly held debt has
driven long-term interest rates lower. The U.S. Treasury has reduced this debt
by issuing fewer new bonds and buying back long-term bonds in the secondary
market. The declining supply and the continued strong demand for Treasury bonds
has contributed to the drop in long-term yields.
In addition, the amount of new tax-exempt bonds issued so far this year is 20%
below the amount issued in the first eight months of 1999. This decline in
supply, coupled with the strong demand from individual investors, has
contributed to the drop in tax-exempt yields. As a result, the rally in the bond
market over the past six months has driven interest rates to levels below those
of a year earlier. As of August 31st, the Bond Buyer's 40-Bond Index was 5.72%
compared to 5,78% a year ago and the 30-year Treasury bond was 5.67% compared to
6.06% a year ago.
Year-to-date, tax-exempt bonds, as measured by the Lehman Municipal Bond Index,
have out performed taxable bonds, as measured by the Lehman U.S. Aggregate Bond
Index. For the eight months ended August 31st, the Lehman Municipal Bond Index
was up 7.56% compared to 6.45% for the Lehman U.S. Aggregate Bond Index. The
ratio of tax-exempt yields to Treasury yields remains high. Recently, the yield
of a triple-A rated 30-year tax-exempt bond was 5.48% which is 95.8% of the
5.72% yiled of the 30-year Treasury bond. This high ratio offers investors a
great opportunity to benefit from 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 tax-free income without sacrificing safety of
principal. As of August 31, 2000, the market value of the Trust's portfolio
consisted of 59% AAA, 30% AA, and 11% Baa or BBB rated bonds. The portfolio's
highest concentrations of investments are in the insured, housing-revenue, and
hospital-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 of fund
shares in dollar dollar amounts. In addition to these features, The Value Line
Tax Exempt Fund has the additional advantage of carrying no sales or redemption
fees.
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
September 28, 2000
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
New York Tax Exempt Trust Shareholders
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Economic Observations
The U.S. economy is now clearly proceeding along a slower growth track as we
move through the final months of the year. Evidence of this deceleration in
business activity can be found in the most recent figures on manufacturing,
retail spending, and employment. Overall, we estimate that GDP growth will
average 3.0%, or so, over the balance of the year. Thereafter, we would expect
the pace of economic activity to hold at these comparatively restrained levels
through 2001, as the succession of interest-rate hikes voted for by the Federal
Reserve Board over the past year and a half continues to have the hoped-for
effect of stabilizing the economy at comfortably lower growth levels.
Inflationary pressures, meanwhile, continue to be held in check for the most
part, with sustained increases in productivity and ongoing technological
innovations being at least partially responsible for this comparative pricing
stability. Nevertheless, a moderate increase in cost pressures could still
evolve over the next few quarters, particularly if energy prices continue their
uncontrolled ascent for several months and the aforementioned moderation in
economic growth fails to continue into 2001, two events that we do not currently
expect to take place.
Meanwhile, the Federal Reserve, taking note of the current slower pace of
business activity and the comparatively muted inflation figures, is likely to
maintain a relatively stable monetary stance over the next several quarters.
Indeed, should oil prices reverse course and move back down to the
$25-$30-a-barrel level, as seems logical given the expected moderation in
underlying demand, it is conceivable that the central bank's next move could be
to lower interest rates sometime next year.
Performance Data:*
Growth of
Average an Assumed
Annual Investment of
Total Return $10,000
--------- ---------
1 year ended 6/30/00 2.34% $10,234
5 years ended 6/30/00 5.02% $12,774
10 years ended 6/30/00 6.47% $18,726
* 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, 2000, were 6.01%, 5.20%, and 6.77%,
respectively.
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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 (94.4%)
NEW YORK STATE (72.7%)
$ 500,000 Bishop Henry B. Hucles Nursing Home, 5.625%, 7/1/18............... Aa1 $ 493,590
800,000 City University System, 5.50%, 7/1/19............................. Aaa 803,804
Mental Health Services Facilities:
500,000 4.75%, 8/15/18.................................................. Aaa 455,945
1,000,000 4.95%, 8/15/19.................................................. Aaa 906,900
1,000,000 Montefiore Medical Center, 5.25%, 8/1/19.......................... Aaa 964,750
650,000 Montefiore Medical Center, 5.80%, 8/1/30.......................... Aaa 652,295
500,000 Mount Sinai Health Revenue Bonds, Series "A"m 6 5/8%, 7/1/18...... Baa 541,370
1,950,000 St. Vincent DePaul Residence, 5.30%, 7/1/18....................... Aa3 1,884,383
975,000 Sisters of Charity Health Care, 4.80%, 8/1/19..................... Aaa 955,949
500,000 Environmental Facilities Corp., Clean Water & Drinking Water Revenue,
Revolving Fund, Ser. F, 5.25%, 6/15/13.......................... Aa1 508,380
585,000 Kenmore Housing Authority Student Housing State University
Buffalo Student Apt, 5.40%, 8/1/12.............................. AA* 595,700
Medical Care Facilities Finance Agency, Revenue, Refunding:
1,150,000 Hospital & Nursing Home Mortgage, Ser. B, 6.125%, 8/15/24....... AAA* 1,182,532
700,000 Long-Term Health Care, Ser. C, 6.40%, 11/1/14................... Aaa 732,732
Mortgage Agency, Revenue Refunding, Homeowner Mortgage:
500,000 Ser. 26, 5.85%, 4/1/17.......................................... Aaa 509,310
995,000 Ser. 73-B, 5.45%, 10/1/24....................................... Aa1 993,100
1,050,000 Ser. 55, 5.95%, 10/1/17......................................... Aa1 1,054,379
1,425,000 Ser. 79, 4.75%, 4/1/23.......................................... Aa1 1,397,659
500,000 Municipal Heath Facility, Lease Revenue, Ser. 1, 5 1/8%, 1/15/15.. Aaa 492,725
1,030,000 Nassau County, General Improvement, Ser. C, 5.125%, 1/1/14........ Aaa 1,024,521
1,000,000 Niagara Falls, Water Treatment Plant, 7.25%, 11/1/11.............. Aaa 1,203,050
1,000,000 Syracuse, Housing Authority, Mortgage Revenue,
Loretto Rest Home, Ser. A, 5.60%, 8/1/17........................ AAA* 1,010,590
690,000 Upstate Community Colleges, Ser. A, 5 3/8%, 7/1/17................ Aaa 705,422
735,000 Watertown, NY City School District, General Obligations,
5 5/8%, 6/15/2015............................................... Aaa 762,945
1,000,000 Yonkers General Obligations, Ser. C, 5.25%, 6/1/12................ Aaa 1,023,680
-----------
TOTAL NEW YORK STATE .............................................. 20,855,711
-----------
</TABLE>
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4
<PAGE>
Value Line New York Tax Exempt Trust
August 31, 2000
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<TABLE>
<CAPTION>
Principal
Amount Rating Value
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK CITY (15.1%)
$ 980,000 General Obligation Unlimited, Series A, 5 1/4%, 5/15/13........... Aaa $ 998,826
Industrial Development Agency:
250,000 Brooklyn Navy Yard, Cogen Partners, 6.20%, 10/1/22.............. Baa3 250,493
500,000 Civic Facilities Revenue, College of Aeronautics Project,
5.45%, 5/1/18................................................. BBB* 472,435
1,000,000 Transit Authority Training Facilities Revenue, 5.40%, 1/1/18...... Aaa 1,005,520
Transitional Finance Authority, Revenue, Future Tax Secured,
590,000 Ser. B, 4.75%, 11/1/23.......................................... Aa3 522,522
600,000 Ser. C, 5%, 5/1/18.............................................. Aa3 571,536
500,000 Triborough Bridge & Tunnel Authority, Special Obligations
Refunding Revenue Bonds, Series A, 5 1/4%, 1/1/14............... Aaa 504,370
-----------
TOTAL NEW YORK CITY ............................................... 4,325,702
-----------
GUAM (1.3%)
400,000 Power Authority Revenue, Ser. A, 5.125%, 10/1/29.................. Baa3 363,292
PUERTO RICO (1.8%)
500,000 Industrial Tourist, Educational Medical and Environmental
Control Facilities Revenue Bonds, 6 5/8%, 6/1/26................ Baa2 521,215
VIRGIN ISLANDS (3.5%)
1,000,000 Public Finance Authority, Revenue, Gross Receipts Taxes,
Ser. A, 6.375%, 10/1/19......................................... BBB-* 1,029,570
-----------
TOTAL LONG-TERM MUNICIPAL SECURITIES
(Cost $26,646,633) .............................................. 27,095,490
-----------
</TABLE>
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5
<PAGE>
Value Line New York Tax Exempt Trust
Schedule of Investments (unaudited) August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Rating Value
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES (.7%)
$ 200,000 New York City, General Obligations, Subser. B-2, 4.15%, 8/15/03... VMIG-1(1) $ 200,000
-----------
TOTAL SHORT-TERM MUNICIPAL SECURITIES
(Cost $200,000) ................................................. 200,000
-----------
TOTAL MUNICIPAL SECURITIES (95.1%)
(Cost $26,846,633) .............................................. 27,295,490
-----------
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES (4.9%) ............. 1,404,332
-----------
NET ASSETS (100.0%) ............................................... $28,699,822
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE,
PER OUTSTANDING SHARE ........................................... $ 9.77
===========
</TABLE>
Rated by Moody's Investors Service except for those marked by an asterisk (*)
which are rated by Standard & Poor's.
(1) Variable rate demand notes are considered short-term obligations. Interest
rates change every day. These securities are payable on demand on interest
rate refix dates and are secured by either letters of credit or other
credit support agreements from banks. The rates listed are as of August 31,
2000.
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, 2000 (unaudited)
--------------------------------------------------------------------------------
Dollars
(in thousands
except per share
amount)
----------------
Assets:
Investment securities, at value
(Cost $26,847) ............................................ $ 27,295
Cash ........................................................ 5
Receivable for securities sold .............................. 1,254
Interest receivable ......................................... 341
Receivable for Trust shares sold ............................ 14
--------
Total Assets ............................................ 28,909
--------
Liabilities:
Payable for Trust shares repurchased ........................ 95
Dividends payable to shareholders ........................... 36
Accrued expenses:
Advisory fee .............................................. 15
Other ..................................................... 63
--------
Total Liabilities ....................................... 209
--------
Net Assets: ................................................. $ 28,700
========
Net Assets:
Shares of beneficial interest at $.01
par value (authorized unlimited,
outstanding 2,937,271 shares) ............................. $ 29
Additional paid-in capital .................................. 28,622
Accumulated net realized loss
on investments ............................................ (401)
Net unrealized appreciation of
investments ............................................... 449
--------
Net Assets .................................................. $ 28,699
========
Net Asset Value, Offering and
Redemption Price, per
Outstanding Share ......................................... $ 9.77
========
Statement of Operations
for the Six Months Ended August 31, 2000 (unaudited)
--------------------------------------------------------------------------------
Dollars
(in thousands)
--------------
Investment Income:
Interest ................................................... $ 785
-------
Expenses:
Advisory fee ............................................... 86
Auditing and legal fees .................................... 25
Printing and stationery .................................... 12
Service and distribution plan fee .......................... 12
Transfer agent fees ........................................ 9
Trustees' fees and expenses ................................ 8
Custodian fees ............................................. 5
Other ...................................................... (7)
-------
Total expenses before
custody credits ...................................... 150
Less: custody credits .................................. (2)
-------
Net Expenses ........................................... 148
-------
Net Investment Income ...................................... $ 637
-------
Net Realized and Unrealized Gain
on Investments:
Net Realized Gain ...................................... 1
Change in Unrealized
Appreciation (Depreciation) .......................... 1,203
-------
Net Realized Gain and Change in
Unrealized Appreciation
(Depreciation) on Investments ............................ 1,204
-------
Net Increase in Net Assets
from Operations .......................................... $ 1,841
=======
See Notes to Financial Statements.
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7
<PAGE>
Value Line New York Tax Exempt Trust
Statement of Changes in Net Assets
for the Six Months Ended August 31, 2000 (unaudited),
and for the Year Ended February 29, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
August 31, 2000 February 29,
(unaudited) 2000
-----------------------------------
(Dollars in thousands)
<S> <C> <C>
Operations:
Net investment income ........................................ $ 637 $ 1,313
Net realized gain (loss) on investments ...................... 1 (403)
Change in unrealized appreciation (depreciation) ............. 1,203 (2,234)
-------------------------------
Net increase (decrease) in net assets from operations ........ 1,841 (1,324)
-------------------------------
Distributions to Shareholders:
Net investment income ........................................ (637) (1,321)
Net realized gains ........................................... -- (440)
-------------------------------
Net decrease in net assets from distributions ................ (637) (1,761)
-------------------------------
Trust Share Transactions:
Net proceeds from sale of shares ............................. 2,205 3,062
Net proceeds from reinvestment of distribution to shareholders 411 1,217
Cost of shares repurchased ................................... (3,529) (6,188)
-------------------------------
Net decrease in net assets from Trust share transactions ..... (913) (1,909)
-------------------------------
Total Increase (Decrease) in Net Assets ........................ 291 (4,994)
Net Assets:
Beginning of period .......................................... 28,409 33,403
-------------------------------
End of period ................................................ 28,700 28,409
===============================
Undistributed Net Investment Income at end of period ........... $ -- $ --
===============================
</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, 2000
--------------------------------------------------------------------------------
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 market 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. Permanent differences 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.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date.
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9
<PAGE>
Value Line New York Tax Exempt Trust
Notes to Financial Statements (unaudited) August 31, 2000
--------------------------------------------------------------------------------
2. Trust Share Transactions
Transactions in shares of beneficial interest were as follows:
Six Months
Ended Year
August 31, Ended
2000 February 29,
(unaudited) 2000
--------------------------------
(in thousands)
Shares sold ............................ 230 314
Shares issued to shareholders
in reinvestment of
distributions ........................ 43 126
--------------------------------
273 440
Shares repurchased ..................... (368) (642)
--------------------------------
Net decrease ........................... (95) (202)
================================
3. Purchases and Sales of Securities
Purchases and sales of municipal securities were as follows:
Six Months
Ended
August 31, 2000
(unaudited)
---------------
(in thousands)
Purchases:
Long-term obligations ................................. $ 8,996
Short-term obligations ................................ 4,400
--------
$13,396
--------
maturities or Sales:
Long-term obligations ................................. $10,251
Short-term obligations ................................ 5,200
--------
$15,451
--------
At August 31, 2000, the aggregate cost of investments for federal income tax
purposes was $26,846,633. The aggregate appreciation and depreciation of
investments at August 31, 2000, based on a comparison of investment values and
their costs for federal income tax purposes, was $634,169 and $185,312,
respectively, resulting in a net depreciation of $448,857.
For Federal income tax purposes, the Trust had a capital loss carryover at
February 29, 2000 of approximately $401,764 which will expire in 2008. 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 $86,250 was paid or payable to Value Line, Inc. (the
"Adviser") for the six months ended August 31, 2000. This was computed at an
annual rate of .60% of the Trust's average daily net assets. 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.
For the six months ended August 31, 2000, the Trust's expenses were reduced by
$1,997 under a custody credit arrangement with the custodian.
At a special meeting of shareholders held on June 15, 2000, the shareholders
approved the adoption of a Service and Distribution Plan (the "Plan") effective
July 1, 2000. The Plan, adopted pursuant to Rule 12b-1 under the Investment
Company Act of 1940, provides for the payment of certain expenses incurred by
Value Line Securities, Inc. (the "Distributor"), a wholly-owned subsidiary of
the advisor, in advertising, marketing and distributing the Trust's shares and
for servicing the Trust's shareholders at an annual rate of 0.25% of the Trust's
average daily net assets. Fees amounting to $12,179 were paid or payable to the
distributor under this plan by the Trust for the period July 1 to August 31,
2000.
Certain officers and directors of the Adviser and Value Line Securities, Inc.,
are also officers and a Trustee of the Trust.
At August 31, 2000, the Adviser owned 127,610 shares of beneficial interest in
the Trust, representing 4.3% 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, 2000 -----------------------------------------------------------------------
(unaudited) 2000 1999 1998 1997 1996
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ......................... $ 9.37 $10.33 $10.51 $10.04 $10.28 $ 9.81
--------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income ........... .21 .42 .43 .44 .48 .49
Net gains or losses on securities
(both realized and unrealized) .40 (.82) .14 .47 (.11) .47
--------------------------------------------------------------------------------------------
Total from investment
operations .................... .61 (.40) .57 .91 .37 .96
--------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income ........................ (.21) (.42) (.42) (.44) (.48) (.49)
Distributions from capital gains -- (.14) (.33) -- (.13) --
--------------------------------------------------------------------------------------------
Total distributions ........... (.21) (.56) (.75) (.44) (.61) (.49)
--------------------------------------------------------------------------------------------
Net asset value, end of period ...... $ 9.77 $ 9.37 $10.33 $10.51 $10.04 $10.28
============================================================================================
Total return ........................ 6.62+ -3.97% 5.56% 9.31% 3.73% 10.00%
============================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) .................... $28,700 $28,409 $33,403 $34,597 $32,745 $40,169
Ratio of expenses to
average net assets ................ 1.05%*(2) 1.05%(2) .98%(2) .92%(1) .92%(1) .92%
Ratio of net investment income to
average net assets ................ 4.43%* 4.21% 4.05% 4.35% 4.79% 4.87%
Portfolio turnover rate ............. 33% 100% 56% 116% 86% 119%
</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 1.03%* at August
31, 2000 and 1.04% at February 29, 2000.
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. Current income is
a secondary objective.
1952 -- Value Line Income and Growth Fund's primary investment objective is
income, as high and dependable as is consistent with reasonable risk. Capital
growth to increase total return is a secondary objective.
1956 -- The Value Line Special Situations Fund seeks long-term growth of
capital. No consideration is given to current income in the choice of
investments.
1972 -- Value Line Leveraged Growth Investors' sole investment objective is to
realize capital growth.
1979 -- The Value Line Cash Fund, a money market fund, seeks to secure as high a
level of current income as is consistent with maintaining liquidity and
preserving capital. An investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund.
1981 -- Value Line U.S. Government Securities Fund seeks maximum income without
undue risk to capital. Under normal conditions, at least 80% of the value of its
net assets will be invested in securities issued or guaranteed by the U.S.
Government and its agencies and instrumentalities.
1983-- Value Line Centurion Fund* seeks long-term growth of capital.
1984 -- The Value Line Tax Exempt Fund seeks to provide investors with the
maximum income exempt from federal income taxes while avoiding undue risk to
principal. The Fund offers investors a choice of two portfolios: The Money
Market Portfolio and The National Bond Portfolio. The fund may be subject to
state and local taxes and the Alternative Minimum Tax (if applicable).
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.
1987 -- Value Line New York Tax Exempt Trust seeks 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 may be subject to
state and local taxes and the Alternative Minimum Tax (if applicable).
1987 -- Value Line Strategic Asset Management Trust* seeks to achieve a high
total investment return consistent with reasonable risk.
1993 -- Value Line Emerging Opportunities 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 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.
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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 219729
Kansas City, MO 64121-9729
INDEPENDENT PricewaterhouseCoopers LLP
ACCOUNTANTS 1177 Avenue of the Americas
New York, NY 10036-2798
LEGAL COUNSEL Peter D. Lowenstein, Esq.
Two Sound View Drive, Suite 100
Greenwich, CT 06830
TRUSTEES Jean Bernhard Buttner
John W. Chandler
Frances T. Newton
Francis C. Oakley
David H. Porter
Paul Craig Roberts
Marion N. Ruth
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
Joseph Van Dyke
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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