Dear Centennial New York Tax Exempt Trust Shareholder:
We are pleased to provide you with the 1993 semi-annual report for Centennial
New York Tax Exempt Trust.
During the six-month period ended December 31, 1993, the Trust's compounded
annualized yield was 1.67%. This equates to 2.98% for investors in the 43.89%
combined effective federal, New York State and New York City income tax
bracket. The corresponding yield without compounding was 1.65%. The seven-day
annualized yields with and without compounding at December 31, 1993 were
1.88% and 1.86%, respectively.
In general, the municipal bond market has performed very well throughout
1993. The U.S. economy has remained in a slow growth mode; interest rates
have remained in a relatively low range despite occasional periods of
volatility; and investors have sought out investments in the tax-exempt
market in increasing numbers since the passage of the Clinton
Administration's tax package. All of these factors have combined to generate
above-average performance.
Municipal securities with maturities of six to twelve months have frequently
offered a significant advantage, on an after-tax basis, over equivalent
taxable investments. Accordingly, we have maintained a relatively long
average maturity in the Trust's portfolio to generate higher yields.
This strategy left the Trust in a well-protected position when, in late
November and early December, the short-term tax-exempt market experienced a
dramatic influx of investment dollars that temporarily drove rates down to
abnormally low levels. We expect these artificially low rates to persist
through the end of January. At that point, we expect short-term tax-exempt
rates to firm somewhat, as the imbalance between supply and demand eases.
With an average maturity of 70 days, the Trust has been able to provide
attractive yields even during this interim period of artificially low rates,
and will be in an excellent position to capitalize on higher rates in the
first quarter of 1994.
To ensure stability of principal, the Trust's managers continue to emphasize
high quality short-term tax-exempt investments.
We will continue to monitor the interest rate environment on a day-to-day
basis, to seek the best possible position for the Trust. We look forward to
serving your investment needs in the future.
(Signature James C. Swain)
James C. Swain
Chairman--Centennial New York Tax Exempt Trust
(Signature Jon S. Fossel)
Jon S. Fossel
President--Centennial New York Tax Exempt Trust
January 21, 1994
<PAGE>
Statement of Investments December 31, 1993 (Unaudited)
Centennial New York Tax Exempt Trust
<TABLE>
<CAPTION>
Face Market
Amount Value-Note 1
<S> <C> <C>
Municipal Bonds and Notes-99.2%
New York-99.2%
City of New York Tax Anticipation Nts., 3.50%, 6/30/94 ............ $ 1,000,000 $ 1,002,783
Dormitory Authority of the State of New York:
Pooled Short-Term Revenue Nts., Series A, 2.30%,
2/18/94 (2) ................................................... 823,000 823,000
Revenue Bonds, Memorial Sloan Kettering Cancer Center,
Series C, 2.40%, 3/9/94 ....................................... 1,000,000 1,000,000
Geneva, New York Industrial Development Agency
Civic Facility Revenue Bonds, 2.90% (1) ......................... 1,000,000 1,000,000
New York City Housing Develpment Corp.:
Multifamily Mortgage Revenue Bonds,
Queenswood, Series A, 3.05% (1) ............................... 700,000 700,000
Special Obligation Revenue Bonds, East 96th Street Project,
Series A, 2.08% (1) ........................................... 1,000,000 1,000,000
New York City Municipal Water Finance Authority Water and
Sewer System Revenue Anticipation Nts., Series A,
2.75%, 4/15/94 .................................................. 1,000,000 999,914
New York City Trust Cultural Resources Revenue Bonds,
American Museum of Natural History, Series B, MBIA Insured,
2.09% (1) ....................................................... 700,000 700,000
New York State Energy Research and Development Authority:
Electric Facilities Revenue Bonds, 2.85%, 11/1/94 (2) ........... 900,000 900,000
Pollution Control Revenue Bonds:
Annual Tender, Electric & Gas Corp.:
2.50%, 3/15/94 (2) .......................................... 1,000,000 999,056
Series 84A, 2.80%, 12/1/94 (2) .............................. 1,000,000 1,000,000
Lilco Project, Series A, 2.50%, 3/1/94 (2) .................... 1,150,000 1,149,897
Rochester Gas & Electric Corp., 2.55% (1) ..................... 600,000 600,000
New York State Enviromental Facility Corp. Solid Waste
Disposal Revenue Bonds, General Electric Co. Project,
Series A, 2.45%, 1/25/94 (2) .................................... 1,000,000 1,000,000
New York State Housing Finance Agency Revenue Bonds:
Mount Sinai Hospital School of Medicine, Series A, 2.50% (1) .... 700,000 700,000
Normandie Court I Project, 3.05% (1)............................. 800,000 800,000
New York State Job Development Authority State
Guaranteed Bonds:
Series 1984, E-1 to E-55, 2.85% (1).............................. 820,000 820,000
Series 1984, F-1 to F-17, 2.85% (1) ............................. 500,000 500,000
Special Purpose, Series C-1, 2.85% (1) .......................... 820,000 820,000
3
<PAGE>
Statement of Investments (Unaudited) (Continued)
Centennial New York Tax Exempt Trust
Face Market
Amount Value-Note 1
Municipal Bonds and Notes (Continued)
New York (Continued)
New York State Mortgage Agency Revenue Refunding Bonds,
Homeowner Mortgage, Series 30-A, 2.75%, 3/1/94 (2) .............. $ 1,600,000 $ 1,600,000
New York State Power Authority Revenue and General Purpose
Bonds, 2.25%, 3/1/94 (2) ........................................ 2,000,000 2,000,078
Port Authority of New York and New Jersey Consolidated
Revenue Bonds, 2.60%, 2/18/94 ................................... 625,000 625,000
Seneca County, New York Industrial Development Agency
Civic Facilities Revenue Bonds, New York Chiropractic
College, 2.95% (1)............................................... 100,000 100,000
Triborough Bridge and Tunnel Authority of New York Revenue
Bonds, Tender Option Custody Receipt,
Series BT-42, 3% (1) ............................................ 1,000,000 1,000,000
Total Investments, at Value (Cost $21,839,728) .................... 99.2% 21,839,728
Other Assets Net of Liabilities ................................... .8 170,634
Net Assets ........................................................ 100.0% $ 22,010,362
<FN>
1. Floating or variable rate obligation maturing in more than one year. The interest rate,
which is based on specific , or an index of , market interest rates is subject to change
periodically and is the effective rate on December 31, 1993. A demand feature allows
the recovery of principal at any time, or at specified intervals not exceeding one year,
on up to 30 days' notice.
2. Put obligation redeemable at full face value on the date reported.
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
Statement of Assets and Liabilities December 31, 1993 (Unaudited)
Centennial New York Tax Exempt Trust
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $21,839,728) - see
accompanying statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,839,728
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,705
Receivables:
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,899
Shares of beneficial interest sold. . . . . . . . . . . . . . . . . . . . . . . . 119,200
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,304
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,193,836
LIABILITIES:
Payables and other liabilities:
Shares of beneficial interest redeemed. . . . . . . . . . . . . . . . . . . . . . 157,094
Distribution assistance - Note 3. . . . . . . . . . . . . . . . . . . . . . . . . 10,847
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,379
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183,474
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,010,362
COMPOSITION OF NET ASSETS:
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,010,673
Accumulated net realized loss from investment
transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (311)
NET ASSETS - Applicable to 22,010,673 shares of
beneficial interest outstanding . . . . . . . . . . . . . . . . . . . . . . . . . $22,010,362
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE
PER SHARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.00
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
Statement of Operations For the Six Months Ended December 31, 1993
(Unaudited)
Centennial New York Tax Exempt Trust
<TABLE>
<S> <C>
INVESTMENT INCOME - Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . $308,748
EXPENSES:
Management fees - Note 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,021
Distribution assistance - Note 3. . . . . . . . . . . . . . . . . . . . . . . . . . 23,084
Transfer and shareholder servicing agent fees - Note 3. . . . . . . . . . . . . . . 18,178
Custodian fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,569
Shareholder reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,839
Legal and auditing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,024
Trustees' fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,259
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,772
Less assumption of expenses by Centennial Asset
Management Corporation - Note 3 . . . . . . . . . . . . . . . . . . . . . . . . . (18,924)
Net expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,848
NET INVESTMENT INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207,900
NET REALIZED GAIN ON INVESTMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . 770
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS. . . . . . . . . . . . . . . . $208,670
</TABLE>
See accompanying Notes to Financial Statements.
6
<PAGE>
Statements of Changes in Net Assets
Centennial New York Tax Exempt Trust
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1993 June 30,
(Unaudited) 1993
<S> <C> <C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . $ 207,900 $ 421,860
Net realized gain on investments. . . . . . . . . 770 1,633
Net increase in net assets
resulting from operations . . . . . . . . . . 208,670 423,493
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS. . . . . . . . . . . . . . . . . . (208,340) (421,860)
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets
resulting from beneficial
interest transactions - Note 2 . . . . . . . . (2,983,669) 889,153
NET ASSETS:
Total increase (decrease) . . . . . . . . . . . . (2,983,339) 890,786
Beginning of period . . . . . . . . . . . . . . . 24,993,701 24,102,915
End of period . . . . . . . . . . . . . . . . . . $22,010,362 $ 24,993,701
</TABLE>
See accompanying Notes to Financial Statements.
7
<PAGE>
Financial Highlights
Centennial New York Tax Exempt Trust
<TABLE>
<CAPTION>
Nine Months Period
Six Months Ended Ended Ended
December 31, 1993 Year Ended June 30, June 30, September 30,
(Unaudited) 1993 1992 1991 1990 1989(1)
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period. . . . . . . $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations -
net investment income and net
realized gain on investments. . . . . . . . . . .01 .02 .03 .05 .04 .04
Dividends and distributions to
shareholders . . . . . . . . . . . . . . . . . (.01) (.02) (.03) (.05) (.04) (.04)
Net asset value, end of period. . . . . . . . . . $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Ratios/Supplemental Data:
Net assets, end of period (in thousands). . . . . $22,010 $24,994 $24,103 $21,439 $9,133 $4,935
Average net assets (in thousands) . . . . . . . . $25,003 $24,257 $23,221 $16,766 $7,008 $2,084
Number of shares outstanding at end of period
(in thousands). . . . . . . . . . . . . . . . . 22,011 24,994 24,105 21,443 9,135 4,934
Ratios to average net assets:
Net investment income . . . . . . . . . . . . . 1.65%(2) 1.74% 3.00% 4.42% 4.98%(2) 5.41%(2)
Expenses, before voluntary assumption
by the Manager. . . . . . . . . . . . . . . . .95%(2) .98% 1.09% 1.08% 1.48%(2) 2.21%(2)
Expenses, net of voluntary assumption
by the Manager. . . . . . . . . . . . . . . . .80%(2) .80% .80% .72% .96%(2) 1.00%(2)
<FN>
1. For the period from January 3, 1989 (commencement of operations) to September 30, 1989.
2. Annualized.
</TABLE>
See accompanying Notes to Financial Statements.
8
<PAGE>
Notes to Financial Statements (Unaudited)
Centennial New York Tax Exempt Trust
1. Significant Accounting Policies
Centennial 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 Trust's investment advisor is Centennial
Asset Management Corporation (the Manager), a subsidiary of Oppenheimer
Management Corporation (OMC). The following is a summary of significant
accounting policies consistently followed by the Trust.
Investment Valuation - Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
Federal Income Taxes - The Trust intends to continue to comply with provisions
of the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders. Therefore, no federal
income tax provision is required.
Distributions to Shareholders - The Trust intends to declare dividends from net
investment income each regular business day and pay such dividends monthly.
To effect its policy of maintaining a net asset value of $1.00 per share, the
Trust may withhold dividends or make distributions of net realized gains.
Other - Investment transactions are accounted for on the date the investments
are purchased or sold (trade date). Realized gains and losses on investments
are determined on an identified cost basis, which is the same basis used for
federal income tax purposes.
2. Shares of Beneficial Interest
The Trust has authorized an unlimited number of no par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1993 Year Ended June 30, 1993
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Sold. . . . . . . . . . . . . . . . . 35,456,994 $ 35,456,994 55,874,424 $ 55,874,424
Dividends and distributions
reinvested. . . . . . . . . . . . . 212,932 212,932 413,652 413,652
Redeemed. . . . . . . . . . . . . . . (38,653,595) (38,653,595) (55,398,923) (55,398,923)
Net increase (decrease) . . . . . . (2,983,669) $ (2,983,669) 889,153 $ 889,153
</TABLE>
9
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
Centennial New York Tax Exempt Trust
3. Management Fees and Other Transactions with Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Trust which provides for an annual fee of .50% on
the first $250 million of net assets with a reduction of .025% on each $250
million thereafter, to .40% on net assets in excess of $1 billion. The
Manager has agreed to assume Trust expenses (with specified exceptions) in
excess of the most stringent applicable regulatory limit on Trust expenses.
In addition, the Manager has voluntarily undertaken to assume Trust expenses
in excess of .80% of average annual net assets.
Shareholder Services, Inc. (SSI), a subsidiary of OMC, is the transfer and
shareholder servicing agent for the Trust, and for other registered
investment companies. SSI's total costs of providing such services are
allocated ratably to these companies.
Under an approved plan of distribution, the Trust may expend up to .20% of
its net assets annually to reimburse Centennial Asset Management Corporation,
as distributor, for amounts paid to brokers, dealers, banks and other
institutions for costs incurred in distributing shares of the Trust. During
the six months ended December 31, 1993, the Trust paid $80 to a broker/dealer
affiliated with the Manager as reimbursement for distribution-related
expenses.
10
<PAGE>
Centennial New York Tax Exempt Trust
Officers and Trustees
James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee and President
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Michael A. Carbuto, Vice President
Andrew J. Donohue, Vice President
George C. Bowen, Vice President, Secretary and Treasurer
Lynn M. Coluccy, Assistant Treasurer
Robert G. Zack, Assistant Secretary
Investment Advisor and Distributor
Centennial Asset Management Corporation
Transfer and Shareholder Servicing Agent
Shareholder Services, Inc.
Custodian of Portfolio Securities
Citibank, N.A.
Independent Auditors
Deloitte & Touche
Legal Counsel
Myer, Swanson & Adams, P.C.
The financial statements included herein have been taken from the records of
the Trust without examination by the independent auditors.
This is a copy of a report to shareholders of Centennial New York Tax Exempt
Trust. This report must be preceded or accompanied by a Prospectus of
Centennial New York Tax Exempt Trust. For material information concerning
the Trust, see the Prospectus.
For shareholder servicing, call:
1-800-525-7048 (in U.S.)
303-671-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5270
Denver, CO 80217-5270
11
