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1994 ANNUAL REPORT
CENTENNIAL
NEW YORK TAX EXEMPT
TRUST
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June 30, 1994
RA780.0894.N
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Dear Centennial New York Tax Exempt Trust Shareholder:
We are pleased to provide you with the annual report for Centennial New York Tax
Exempt Trust.
The Trust's compounded annualized yield for the 12 months ended June 30, 1994
was 1.67%. The corresponding yield without compounding was 1.66%. For investors
in the 43.89% combined federal and state tax bracket, this is equal to a taxable
yield of 2.98% with compounding and 2.96% without compounding.1
Centennial New York Tax Exempt Trust is managed to seek maximum short-term
interest income exempt from federal, New York State, and New York City income
taxes for individual investors that is consistent with preservation of capital,
by investing in short-term New York municipal securities.
Over the last six months, short-term interest rates rose dramatically,
reflecting the Federal Reserve Board's preemptive strike against inflation in a
strengthening U.S. economy.
Your managers took several steps to capitalize on this rising rate environment.
Most important, they shortened the Trust's average maturity to 27 days at June
30 from 70 days at December 31, 1993 and did so in a manner intended to provide
the Trust with maximum flexibility.2
It is important to emphasize that Centennial New York Tax Exempt Trust generates
its return from a portfolio of high-quality short-term securities. While your
managers are always alert to opportunities to enhance portfolio income,
principal stability is their top priority.
Looking ahead, the outlook for the Trust is positive. There are few signs of
inflation on the horizon and the Federal Reserve has announced its intent to
maintain interest rates at their current ranges at least for the near term.
The recent weakness in the U.S. dollar relative to other major currencies may
prompt the Fed to raise interest rates faster and higher than economic
fundamentals alone might warrant. But with the adjustments your managers have
made over the past six months, Centennial New York Tax Exempt Trust is ready to
respond to whatever opportunities the future holds in store.
We appreciate the confidence you have placed in Centennial New York Tax Exempt
Trust, and we look forward to continuing to help you meet your financial goals
in the future.
JAMES C. SWAIN
James C. Swain
Chairman -- Centennial New York
Tax Exempt Trust
JON S. FOSSEL
Jon S. Fossel
President -- Centennial New York
Tax Exempt Trust
July 22, 1994
1. Compounded yields assume reinvestment of dividends.
2. The Fund's portfolio is subject to change.
Past performance is not indicative of future results.
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STATEMENT OF INVESTMENTS June 30, 1994
Centennial New York Tax Exempt Trust
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT VALUE-NOTE 1
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<S> <C> <C>
MUNICIPAL BONDS AND NOTES-99.6%
NEW YORK-95.8%
City of New York Development Corp. Mtg. Revenue Bonds,
Columbus Multifamily Project, Series A, 2.05% (1) ......... $2,500,000 $ 2,500,000
City of New York Housing Development Corp. Mtg.
Revenue Bonds:
East 96th Street Project, Series A, 2.15% (1) ............. 300,000 300,000
Queenswood Multifamily Project, Series A, 2.05% (1) ....... 200,000 200,000
City of New York Municipal Water Finance Authority Revenue Bonds:
Series C, 3% (1) .......................................... 1,000,000 1,000,000
Water and Sewer System Project, Series C, 3% (1) .......... 200,000 200,000
City of New York Trust Cultural Resources Revenue Refunding Bonds:
American Museum of Natural History, Series A, MBIA Insured,
2% (1) .................................................... 500,000 500,000
Erie County, New York Water Authority Revenue Bonds, Series A
AMBAC Insured, 2% (1) ..................................... 1,000,000 1,000,000
Geneva, New York Industrial Development Agency Civic Facility
Revenue Bonds, Colleges of the Seneca, Series A,
2.25% (1) ................................................. 960,000 960,000
Nassau County, New York Industrial Development Agency
Revenue Bonds, Cold Spring Harbor Labor Project,
2% (1) .................................................... 1,000,000 1,000,000
Nassau County, New York Revenue Bonds,
Series 32, 2.30% (1) ...................................... 1,000,000 1,000,000
New York State Energy Research and Development Authority:
Revenue Bonds:
Electric and Gas Corp., Series 84A, 2.80% 12/1/94 (2) ... 1,000,000 1,000,000
Long Island Lighting Co., Series B, 2.85%, 11/1/94 (2) .. 900,000 900,000
Rochester Gas and Electric Co., 2.80% (1) ............... 600,000 600,000
Revenue Refunding Bonds, Electric and Gas Corp., Series B,
2.45%, 8/2/94 (2) ....................................... 1,000,000 1,000,000
New York State Environmental Facility Solid Waste Disposal
Revenue Bonds, General Electric Co. Project, Series A,
2.50%, 7/11/94 (2) ........................................ 1,000,000 1,000,000
New York State Housing Finance Agency Revenue Bonds:
Mount Sinai School of Medicine, Series A, 2.55% (1) ....... 1,000,000 1,000,000
Normandie Court I Project, 2.05% (1) ...................... 1,000,000 1,000,000
New York State Job Development Authority Guaranteed
Revenue Bonds:
1984 Series C-1 to C-30, 2.60% (1) ........................ 775,000 775,000
1984 Series E-1 to E-55, 2.60% (1) ........................ 1,460,000 1,460,000
1984 Series F-1 to F-17, 2.60% (1) ........................ 450,000 450,000
Special Purpose, Series C-1, 2.75% (1) .................... 65,000 65,000
New York State Local Government Assistance Corp. Revenue Bonds,
Series A, 2.05% (1) ....................................... 1,300,000 1,300,000
</TABLE>
3
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STATMENT OF INVESTMENTS (Continued)
Centennial New York Tax Exempt Trust
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT VALUE-NOTE 1
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<S> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
New York State Mtg. Agency Revenue Bonds, Series 40B,
3.15%, 9/29/94 (2) ........................................ $2,000,000 $ 2,000,000
North Hempstead, New York Solid Waste Management Authority
Revenue Refunding Bonds, Series A, 2.15% (1) .............. 2,000,000 2,000,000
Port Authority of New York and New Jersey Consolidated Revenue
Bonds, 2.60%, 7/11/94 (2) ................................. 800,000 800,000
Seneca County, New York Industrial Development Agency
Civic Facilities Revenue Bonds, New York Chiropractic College,
2% (1) .................................................... 400,000 400,000
Triborough Bridge and Tunnel Authority of New York Revenue Bonds,
Series BT-42, 2.30% (1) ................................... 1,000,000 1,000,000
U.S. POSSESSIONS-3.8%
Puerto Rico Industrial Medical and Environmental Pollution Control
Facilities Authority Revenue Bonds, Merck & Co., Inc. Series A,
2.70%, 12/1/94 ............................................ 1,000,000 1,000,199
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Total Investments at Value (Cost $26,410,199) ............... 99.6% 26,410,199
Other Assets Net of Liabilities ............................. 0.4 108,703
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Net Assets .................................................. 100.0% $26,518,902
========= ============
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
June 30, 1994. 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
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STATEMENT OF ASSETS AND LIABILITIES June 30, 1994
Centennial New York Tax Exempt Trust
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $26,410,199) - see accompanying statement.............................. $ 26,410,199
Cash............................................................................................... 260,132
Receivables:
Interest...................................................................................... 75,099
Shares of beneficial interest sold............................................................ 55,624
Other.............................................................................................. 7,320
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Total assets............................................................................. 26,808,374
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LIABILITIES:
Payables and other liabilities:
Shares of beneficial interest redeemed........................................................ 228,902
Service plan fees - Note 3.................................................................... 11,129
Dividends..................................................................................... 17,780
Other......................................................................................... 31,661
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Total liabilities........................................................................ 289,472
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NET ASSETS......................................................................................... $ 26,518,902
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COMPOSITION OF NET ASSETS:
Paid-in capital.................................................................................... $ 26,518,166
Accumulated net realized gain from investment transactions......................................... 736
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NET ASSETS - Applicable to 26,518,166 shares of beneficial interest outstanding.................... $ 26,518,902
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NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE..................................... $ 1.00
</TABLE>
See accompanying Notes to Financial Statements.
5
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STATEMENT OF OPERATIONS For the Year Ended June 30, 1994
Centennial New York Tax Exempt Trust
<TABLE>
<S> <C>
INVESTMENT INCOME - Interest....................................................................... $ 626,536
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EXPENSES:
Management fees - Note 3........................................................................... 127,154
Service plan fees - Note 3......................................................................... 46,156
Transfer and shareholder servicing agent fees - Note 3............................................. 43,215
Custodian fees and expenses........................................................................ 12,257
Shareholder reports................................................................................ 9,562
Legal and auditing fees............................................................................ 7,514
Registration and filing fees....................................................................... 1,364
Trustees' fees and expenses........................................................................ 1,306
Other.............................................................................................. 10,335
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Total expenses........................................................................... 258,863
Less assumption of expenses by Centennial Asset Management Corporation - Note 3.................... (55,589)
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Net expenses............................................................................. 203,274
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NET INVESTMENT INCOME.............................................................................. 423,262
NET REALIZED GAIN ON INVESTMENTS................................................................... 1,817
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................................... $ 425,079
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</TABLE>
See accompanying Notes to Financial Statements.
6
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STATEMENTS OF CHANGES IN NET ASSETS
Centennial New York Tax Exempt Trust
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
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1994 1993
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<S> <C> <C>
OPERATIONS:
Net investment income........................................................................ $ 423,262 $ 421,860
Net realized gain on investments............................................................. 1,817 1,633
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Net increase in net assets resulting from operations....................................... 425,079 423,493
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS.................................................. (423,702) (421,860)
BENEFICIAL INTEREST TRANSACTIONS:
Net increase in net assets resulting from beneficial interest transactions - Note 2.......... 1,523,824 889,153
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NET ASSETS:
Total increase............................................................................... 1,525,201 890,786
Beginning of year............................................................................ 24,993,701 24,102,915
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End of Year.................................................................................. $26,518,902 $24,993,701
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</TABLE>
See accompanying Notes to Financial Statements.
7
<PAGE>
FINANCIAL HIGHLIGHTS
Centennial New York Tax Exempt Trust
<TABLE>
<CAPTION>
NINE MONTHS
ENDED PERIOD ENDED
YEAR ENDED JUNE 30, JUNE 30, SEPTEMBER 30,
--------------------------------------- ----------- ------------
1994 1993 1992 1991 1990 1989(1)
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<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.................................... .02 .02 .03 .05 .04 .04
Dividends and distributions to shareholders...... (.02) (.02) (.03) (.05) (.04) (.04)
------- ------- ------- ------- ------- ------
Net asset value, end of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
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RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in (thousands)........ $26,519 $24,994 $24,103 $21,439 $ 9,133 $4,935
Average net assets (in thousands)................ $25,419 $24,257 $23,221 $16,766 $ 7,008 $2,084
Number of shares outstanding at end of period (in
thousands)..................................... 26,518 24,994 24,105 21,443 9,135 4,934
Ratios to average net assets:
Net investment income............................ 1.67% 1.74% 3.00% 4.42% 4.98%(2) 5.41%(2)
Expenses, before voluntary assumption by the
Manager........................................ 1.02% .98% 1.09% 1.08% 1.48%(2) 2.21%(2)
Expenses, net of voluntary assumption by the
Manager........................................ .80% .80% .80% .72% .96%(2) 1.00%(2)
</TABLE>
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(1) For the period from January 3, 1989 (commencement of operations) to
September 30, 1989.
(2) Annualized.
See accompanying Notes to Financial Statements.
8
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NOTES TO FINANCIAL STATEMENTS
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 day the New York Stock Exchange is open for business
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>
Years Ended June 30,
------------------------------------------------------------
1994 1993
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SHARES AMOUNT SHARES AMOUNT
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Sold............................................... 75,789,053 $ 75,789,053 55,874,424 $ 55,874,424
Dividends and distributions reinvested............. 405,612 405,612 413,652 413,652
Redeemed........................................... (74,670,841) (74,670,841) (55,398,923) (55,398,923)
------------- -------------- ------------- --------------
Net increase.................................. 1,523,824 $ 1,523,824 889,153 $ 889,153
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</TABLE>
9
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NOTES TO FINANCIAL STATEMENTS (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% 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 service plan, the Trust may expend up to .20% of its net
assets annually to reimburse Centennial Asset Management Corporation, as
distributor, for costs incurred in connection with the personal service and
maintenance of accounts that hold shares of the Trust, including amounts paid to
brokers/dealers, banks and other institutions.
10
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INDEPENDENT AUDITORS' REPORT
Centennial New York Tax Exempt Trust
The Board of Trustees and Shareholders of
Centennial New York Tax Exempt Trust:
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Centennial New York Tax Exempt Trust
as of June 30, 1994, the related statement of operations for the year then
ended, the statements of changes in net assets for the years ended June 30, 1994
and 1993, and the financial highlights for the period January 3, 1989
(commencement of operations) to June 30, 1994. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
at June 30, 1994 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Centennial New York
Tax Exempt Trust at June 30, 1994, the results of its operations, the changes in
its net assets, and the financial highlights for the respective stated periods,
in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE
Denver, Colorado
July 22, 1994
11
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FEDERAL INCOME TAX INFORMATION (Unaudited)
Centennial New York Tax Exempt Trust
In early 1995, shareholders will receive information regarding all
dividends and distributions paid to them by the Trust during calendar year 1994.
Regulations of the U.S. Treasury Department require the Trust to report this
information to the Internal Revenue Service.
None of the dividends paid by the Trust during the fiscal year ended June
30, 1994 are eligible for the corporate dividend-received deduction. The
dividends were derived from interest on municipal bonds and are not subject to
federal income tax. To the extent a shareholder is subject to any state or local
tax laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Trust to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
12
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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
Robert J. Bishop, Assistant Treasurer
Scott Farrar, 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.
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
13
