<PAGE>
[COVER PAGE]
1996 SEMIANNUAL REPORT
CENTENNIAL
NEW YORK TAX EXEMPT TRUST
- ---------------------------------------
December 31, 1996
RS0780.001.1296
<PAGE>
DEAR SHAREHOLDER,
The second half of 1996 was a period of uncertainty in the fixed income markets,
largely due to investor fears of rapid economic growth and accelerating
inflation. The 30-year Treasury rates rose above 7% in the second quarter and
remained relatively unchanged until the end of the third quarter. That's when
negative investor sentiment that led to the market downturn in June and July
began to subside.
The swing away from inflationary fears seemed complete in October with the
release of economic indicators showing a firm dollar, low inflation and slow
growth. When the Federal Reserve responded to these indicators with another
decision to leave rates alone, it appeared that concerns about rapid growth had
been overblown, and interest rates fell in response. The status quo outcome of
the presidential election also aided the decline in rates, and the bond market
experienced one of the most substantial post-election rallies in recent history.
With continued, sustainable non-inflationary growth of around 2% to 2.5%, and
long-term rates at their lowest levels since April, the economy seems to have
settled into a comfortable path of neither too little nor too much growth.
Centennial New York Tax Exempt Trust performed well due to our bullish outlook
on interest rates. In the early part of 1996, we believed that the Fed would be
hesitant to raise rates as long as inflation didn't accelerate wildly. In
response, we extended the portfolio's duration and took advantage of the higher
returns that usually accompany longer-duration bonds. Later in the summer, as it
became accepted among analysts that the Fed was probably less inclined to raise
rates, we began to be even more aggressive in lengthening the portfolio's
maturity.
In the second half of 1996, rates declined quite a bit so we backed away from
the longer maturities and monitored year-end activity. We expect that the
economy will continue to slowly decelerate.
The Trust had a compounded annualized yield of 2.74% for the six months ended
December 31, 1996. Without compounding, the corresponding yield was 2.70%. For
investors in the 42.87% combined effective tax bracket, this is equivalent to a
taxable yield for six months of 4.80% with compounding, and 4.73% without. The
seven-day annualized yields, with and without compounding, for the six-month
period ended December 31, 1996 were 2.98% and 2.93%, respectively.(1)
<PAGE>
An investment in the Trust is neither insured nor guaranteed by the U.S.
government, and there is no assurance that the Trust will maintain a stable
$1.00 share price in the future.
Thank you for your confidence in Centennial New York Tax Exempt Trust. We look
forward to helping you reach your investment goals in the future.
Sincerely,
/S/James C. Swain
James C. Swain
Chairman
Centennial New York Tax Exempt Trust
/S/Bridget A. Macaskill
Bridget A. Macaskill
President
Centennial New York Tax Exempt Trust
1. Compounded yields assume reinvestment of dividends. A portion of the Trust's
distributions may be subject to federal and state income taxes. For investors
subject to the federal and/or state alternative minimum tax, a portion of the
Trust's distributions may increase this tax. Past performance does not
guarantee future results.
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<TABLE>
<CAPTION>
======================================================
STATEMENT OF INVESTMENTS DECEMBER 31, 1996 (UNAUDITED)
Centennial New York Tax Exempt Trust
FACE VALUE
AMOUNT SEE NOTE 1
===============================================================================================================================
SHORT-TERM TAX-EXEMPT OBLIGATIONS - 100.0%
- -------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 92.9%
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Babylon, NY GOB, Series B, AMBAC Insured, 3.90% (1) $ 300,000 $ 300,000
--------------------------------------------------------------------------------------------------------------------
Babylon, NY ID Agency RB, J. D'Addario & Co. Project,
3.90% (1) 500,000 500,000
--------------------------------------------------------------------------------------------------------------------
Franklin Cnty., NY ID Agency RRB, McAdam Cheese
Co. Project, 4.11% (1) 1,900,000 1,900,000
--------------------------------------------------------------------------------------------------------------------
North Hempstead, NY Solid Waste Management
Authority RRB, Series A, 3.85% (1) 700,000 700,000
--------------------------------------------------------------------------------------------------------------------
NYC ID Agency Civic Facility RB, Columbia Grammar
School Project, 3.80% (1) 1,000,000 1,000,000
--------------------------------------------------------------------------------------------------------------------
NYC ID RB, Brooklyn Navy Yard Cogen, Series A, 4.15% (1) 1,900,000 1,900,000
--------------------------------------------------------------------------------------------------------------------
NYC MWFA RB, 3.55%, 1/21/97 (2) 1,900,000 1,900,000
--------------------------------------------------------------------------------------------------------------------
NYC Tax Anticipation Nts., Series A, 4.50%, 2/12/97 4,000,000 4,003,403
--------------------------------------------------------------------------------------------------------------------
NYC Trust Cultural Resources RRB, American Museum
of Natural History, Series A, MBIA Insured, 3.80% (1) 1,600,000 1,600,000
--------------------------------------------------------------------------------------------------------------------
NYS DA RB:
Series A, FGIC Insured, 4.30% (1) 300,000 300,000
Memorial Sloan Kettering Cancer Center Project:
3.60%, 1/14/97 (2) 800,000 800,000
Series D, 3.65%, 1/14/97 (2) 1,000,000 1,000,000
--------------------------------------------------------------------------------------------------------------------
NYS Environmental Facilities Corp. SWD, General Electric
Co. Project:
RB, Series A, 3.65%, 1/14/97 (2) 1,000,000 1,000,000
RRB, Series A, 3.60%, 1/14/97 (2) 800,000 800,000
--------------------------------------------------------------------------------------------------------------------
NYS ERDAEF RB, L.I. Lighting Co.:
Series A, 4% (1) 800,000 800,000
Series B, 4% (1) 1,200,000 1,200,000
--------------------------------------------------------------------------------------------------------------------
NYS ERDAPC:
RB, NYS Electric & Gas Corp., Series B, 3.85%, 10/15/97 (2) 1,700,000 1,700,000
RB, Rochester Gas & Electric Co., 3.40% (1) 600,000 600,000
RRB, Orange/Rockland Utility Project, Series A, AMBAC
Insured, 3.80% (1) 1,600,000 1,600,000
--------------------------------------------------------------------------------------------------------------------
NYS HFA RB, Normandie Court I Project, 3.75% (1) 1,000,000 1,000,000
--------------------------------------------------------------------------------------------------------------------
NYS Local Government Assistance Corp. RB, Series A,
3.75% (1) 1,900,000 1,900,000
--------------------------------------------------------------------------------------------------------------------
NYS MCFFA RB, Lenox Hill Hospital Project, Series A,
3.95% (1) 1,900,000 1,900,000
--------------------------------------------------------------------------------------------------------------------
NYS MCFFA, 8.875%, 8/15/97 (2) 4,400,000 4,620,364
--------------------------------------------------------------------------------------------------------------------
NYS PAU Revenue & General Purpose Municipal Trust
Receipts, Series SG4, 4.15% (1) 1,900,000 1,900,000
--------------------------------------------------------------------------------------------------------------------
NYS TBTA Beneficial Interest Certificates, MBIA Insured,
3.40%, 1/15/97 (2) 1,900,000 1,900,000
--------------------------------------------------------------------------------------------------------------------
NYS TBTA COP, Series A, 3.60% (1) 1,900,000 1,900,000
--------------------------------------------------------------------------------------------------------------------
Ogdensburg, NY Enlarged City School District GOB,
Series A, FSA Insured, 4%, 6/15/97 500,000 500,429
--------------------------------------------------------------------------------------------------------------------
Suffolk Cnty., NY ID Agency RB, Nissequogue
Cogeneration Partnership, 3.90% (1) 1,400,000 1,400,000
------------
40,624,196
</TABLE>
4
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<TABLE>
================================================
STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
Centennial New York Tax Exempt Trust
FACE VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS - 7.1%
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PR Industrial, Medical & Environmental PC Facilities FAU RB:
Key Pharmaceuticals, 3.75%, 12/1/97 (2) $1,500,000 $ 1,500,000
Reynolds Metals Co. Project, 3.80%, 9/1/97 (2) 1,600,000 1,601,407
------------
3,101,407
--------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 100.0% 43,725,603
--------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.0 15,910
------ ------------
NET ASSETS 100.0% $43,741,513
====== ============
</TABLE>
To simplify the listings of the Centennial New York Tax Exempt Trust holdings in
the Statement of Investments, we have abbreviated the descriptions of many of
the securities per the table below:
COP - Certificates of Participation MCFFA - Medical Care Facilities
DA - Dormitory Authority Finance Agency
ERDAEF - Energy Research & Development MWFA - Municipal Water Finance
Authority Electric Facilities Authority
ERDAPC - Energy Research & Development PAU - Power Authority
Authority Pollution Control PC - Pollution Control
FAU - Finance Authority RB - Revenue Bonds
GOB - General Obligation Bonds RRB - Revenue Refunding Bonds
HFA - Housing Finance Agency SWD - Solid Waste Disposal
ID - Industrial Development TBTA - Triborough Bridge & Tunnel
Authority
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, 1996. This instrument may also have a demand feature which 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.
See accompanying Notes to Financial Statements.
5
<TABLE>
<CAPTION>
=================================================================
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1996 (UNAUDITED)
Centennial New York Tax Exempt Trust
===============================================================================================================================
<S> <C> <C>
ASSETS Investments, at value - see accompanying statement $43,725,603
----------------------------------------------------------------------------------------------------
Cash 329,362
----------------------------------------------------------------------------------------------------
Receivables:
Interest 426,180
Shares of beneficial interest sold 132,540
----------------------------------------------------------------------------------------------------
Other 4,557
------------
Total assets 44,618,242
===============================================================================================================================
LIABILITIES Payables and other liabilities:
Shares of beneficial interest redeemed 829,991
Service plan fees 20,322
Dividends 565
Other 25,851
------------
Total liabilities 876,729
===============================================================================================================================
NET ASSETS $43,741,513
============
===============================================================================================================================
COMPOSITION OF Paid-in capital $43,743,133
NET ASSETS ----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (1,620)
----------------------------------------------------------------------------------------------------
Net assets - applicable to 43,743,133 shares of beneficial
interest outstanding $43,741,513
============
===============================================================================================================================
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $1.00
======
</TABLE>
See accompanying Notes to Financial Statements.
6
<PAGE>
<TABLE>
<CAPTION>
==============================================================================
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 1996 (UNAUDITED)
Centennial New York Tax Exempt Trust
===============================================================================================================================
<S> <C> <C>
INVESTMENT INCOME Interest $ 734,199
===============================================================================================================================
EXPENSES Management fees - Note 3 105,465
----------------------------------------------------------------------------------------------------
Service plan fees - Note 3 41,068
----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 3 10,672
----------------------------------------------------------------------------------------------------
Custodian fees and expenses 5,507
----------------------------------------------------------------------------------------------------
Legal and auditing fees 5,227
----------------------------------------------------------------------------------------------------
Shareholder reports 5,024
----------------------------------------------------------------------------------------------------
Registration and filing fees 2,140
----------------------------------------------------------------------------------------------------
Insurance expenses 1,286
----------------------------------------------------------------------------------------------------
Trustees' fees and expenses 1,167
----------------------------------------------------------------------------------------------------
Other 569
------------
Total expenses 178,125
------------
Less assumption of expenses by Centennial Asset Management
Corporation - Note 3 (4,127)
Less expenses paid indirectly - Note 3 (5,318)
-------------
Net expenses 168,680
===============================================================================================================================
NET INVESTMENT INCOME 565,519
===============================================================================================================================
NET REALIZED GAIN ON INVESTMENTS 98
===============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 565,617
============
</TABLE>
<TABLE>
<CAPTION>
===================================
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1996 JUNE 30, 1996
(UNAUDITED)
===============================================================================================================================
<S> <C> <C> <C>
OPERATIONS Net investment income $ 565,519 $ 1,170,126
----------------------------------------------------------------------------------------------------
Net realized gain (loss) 98 (395)
---------------------------------
Net increase in net assets resulting from operations 565,617 1,169,731
- -------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS
TO SHAREHOLDERS (565,519) (1,170,126)
- -------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase in net assets resulting from
TRANSACTIONS beneficial interest transactions - Note 2 3,934,214 3,961,784
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase 3,934,312 3,961,389
----------------------------------------------------------------------------------------------------
Beginning of period 39,807,201 35,845,812
---------------------------------
End of period $43,741,513 $39,807,201
=================================
</TABLE>
See accompanying Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Centennial New York Tax Exempt Trust
Six Months
Ended
December 31, Year Ended June 30,
1996 (Unaudited) 1996 1995 1994 1993 1992
=============================================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C> <C>
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 .01 .03 .03 .02 .02 .03
Dividends and distributions to shareholders (.01) (.03) (.03) (.02) (.02) (.03)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================
=============================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(1) 1.36% 2.79% 2.85% 1.68% 1.83% 3.11%
=============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $43,742 $39,807 $35,846 $26,519 $24,994 $24,103
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $41,978 $42,351 $29,590 $25,419 $24,257 $23,221
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.67%(2) 2.76% 2.84% 1.67% 1.74% 3.00%
Expenses, before voluntary assumption
by the Manager(3) 0.80%(2) 0.93% 0.95% 1.02% 0.98% 1.09%
Expenses, net of voluntary assumption
by the Manager 0.80%(2) 0.80% 0.80% 0.80% 0.80% 0.80%
</TABLE>
1. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Total returns are not
annualized for periods of less than one full year. Total returns reflect
changes in net investment income only.
2. Annualized.
3. Beginning in fiscal 1995, the expense ratio reflects the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not been
adjusted.
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 objective is to seek the
maximum current income exempt from Federal, New York State and New York City
income taxes for individual investors that is consistent with preservation of
capital. The Trust's investment adviser is Centennial Asset Management
Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). 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 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 or excise 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. The Trust concentrates its investments in New York and,
therefore, may have more credit risks related to the economic conditions of New
York than a portfolio with a broader geographical diversification.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
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, 1996 YEAR ENDED JUNE 30, 1996
---------------------------------- ----------------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Sold 66,168,676 $ 66,168,676 123,079,408 $ 123,079,408
Dividends and distributions
reinvested 579,107 579,107 1,153,820 1,153,820
Redeemed (62,813,569) (62,813,569) (120,271,444) (120,271,444)
------------ ------------- ------------- --------------
Net increase 3,934,214 $ 3,934,214 3,961,784 $ 3,961,784
============ ============= ============= ==============
</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 a fee of 0.50% on the first
$250 million of average annual net assets with a reduction of 0.025% on each
$250 million thereafter, to 0.40% 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 0.80% of average annual net assets.
Shareholder Services, Inc. (SSI), a subsidiary of OFI, 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.
Expenses paid indirectly represent a reduction of custodian fees for earnings on
cost balances maintained by the Fund.
Under an approved service plan, the Trust may expend up to 0.20% 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
<PAGE>
CENTENNIAL NEW YORK TAX EXEMPT TRUST
OFFICERS AND TRUSTEES
James C. Swain, Chairman and Chief Executive Officer
Bridget A. Macaskill, Trustee and President
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
George C. Bowen, Vice President, Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Michael A. Carbuto, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
INVESTMENT ADVISER 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 LLP
LEGAL COUNSEL
Myer, Swanson, Adams & Wolf, 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:
1-800-525-9310 (in U.S.)
303-671-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5143
Denver, CO 80217-5143
11
