<PAGE>
[FRONT COVER]
1998 SEMIANNUAL REPORT
CENTENNIAL
NEW YORK TAX EXEMPT TRUST
- --------------------------------------------------------------------------------
DECEMBER 31, 1998
RS0780.001.1298
<PAGE>
JAMES C. SWAIN
Chairman
Centennial New York
Tax Exempt Trust
BRIDGET A. MACASKILL
President
Centennial New York
Tax Exempt Trust
Dear Shareholder:
When international markets become unsteady, investors around the world look to
U.S. government securities for safety and security. That clearly took place in
the second half of 1998, as Asia's financial crisis continued to form a backdrop
to the global economy. At various times during the six-month period that ended
December 31, 1998, demand for Treasury bills surged, boosting prices and
reducing yields, particularly in late summer as Russia's economy weakened.
With a global recession looming, the Federal Reserve Board went into action. In
the fall, the Fed cut short-term interest rates three times to stimulate the
U.S. economy, and dozens of central banks around the world followed suit. While
these actions invigorated the U.S. stock market in particular, money market
instruments, including tax-exempt issues in the Centennial New York Tax Exempt
Trust, tended to offer lower yields as a result. However, because the demand for
taxable Treasury bills was so heavy, causing T-bill prices to surge and their
yields to plunge, T-bill yields weren't much higher than tax-exempts during the
second half of the year. In fact, when taxes are taken into account, tax-exempt
securities were particularly attractive in comparison.
For the six-month period that ended December 31, 1998, the Trust provided a
compounded annual yield of 2.49%. Without compounding, the corresponding yield
was 2.46%. For investors in the 36% federal tax bracket, this is equivalent to a
taxable yield of 3.88% and 3.82%, with and without compounding, respectively.
The seven-day annualized yields, with and without compounding, on December 31,
1998, were 2.57% and 2.54%, respectively.1 It is important to remember that an
investment in the Trust is neither insured nor guaranteed by the U.S.
government, and there is no assurance that the Trust will be able to maintain a
stable $1.00 share price in the future.
The New York economy continues to benefit from the boom on Wall Street. In
addition, the state has reduced taxes in an effort to improve economic growth,
which lags behind the United States as a whole. The state's population growth
has been just 4% since 1980, compared with 17% nationally. Nevertheless, New
York's fiscal position is much improved over that which the state faced in past
decades, and lower interest rates have lifted its debt burden to some extent.
1. Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
2 Centennial New York Tax Exempt Trust
<PAGE>
During the last six-month period, we focused on non-callable rather than
callable securities. Non-callable securities, which cannot be prematurely repaid
by the issuer, earn higher returns in the portfolio. In a period of declining
interest rates, a non-callable structure is particularly valuable. Otherwise,
the issuer would be able to repay the security, and we would have to reinvest
the money at lower yields. With inflation throughout the world extremely low by
historical standards, and economic growth sluggish, we believe that interest
rates are likely to decline further.
As we move into 1999, we will continue to monitor interest rates, the various
municipal economies and the credit quality of the securities in the portfolio.
To the extent that we purchase securities backed by banking institutions, we
have been careful to avoid banks that have heavy exposure to Asia. Indeed, all
of the banks guaranteeing securities in the portfolio carry very high ratings by
national credit rating agencies. Although we will continue to search for
tax-exempt yield, we will always keep in mind your objectives of safety and
liquidity.
Thank you for your confidence in Centennial New York Tax Exempt Trust. We look
forward to helping you reach your investment goals of safety, liquidity and
attractive yield.
Sincerely,
/s/James C. Swain /s/Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
January 25, 1999
3 Centennial New York Tax Exempt Trust
<PAGE>
======================================================
STATEMENT OF INVESTMENTS December 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
========================================================================================================================
SHORT-TERM TAX-EXEMPT OBLIGATIONS - 103.6%
- ------------------------------------------------------------------------------------------------------------------------
NEW YORK - 96.5%
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Babylon, NY IDA RB, J. D'Addario & Co. Project, 3.85% (1) $ 500,000 $ 500,000
- ------------------------------------------------------------------------------------------------------------------------
Battery Park City Authority, NY RB, Prerefunded, 6.50%, 5/1/99 (2) 2,700,000 2,725,510
- ------------------------------------------------------------------------------------------------------------------------
Buffalo, NY RAN, Series A, 3.75%, 7/27/99 2,500,000 2,510,481
- ------------------------------------------------------------------------------------------------------------------------
Erie Cnty., NY RAN, 4%, 10/13/99 1,200,000 1,209,676
- ------------------------------------------------------------------------------------------------------------------------
Franklin Cnty., NY IDA RAN, McAdam Cheese Co. Project,
4.10% (1) 1,900,000 1,900,000
- ------------------------------------------------------------------------------------------------------------------------
Great Neck, NY Unified Free SDI TAN, 3.75%, 6/30/99 1,000,000 1,002,621
- ------------------------------------------------------------------------------------------------------------------------
Hempstead, NY IDA RRB, Trigen-Nassau Energy, 4.10% (1) 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
Jefferson Cnty., NY IDA RB, 3.15% (1) 2,500,000 2,499,998
- ------------------------------------------------------------------------------------------------------------------------
L.I., NY PAU Electric System RB, Series 10, FSA Insured, 3.70% (1) 2,500,000 2,500,000
- ------------------------------------------------------------------------------------------------------------------------
NYC GOB, 3.25%, 1/14/99 (2) 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
NYC GOUN:
Series F-2, 4.05% (1) 300,000 300,000
Series F-5, 3.90% (1) 700,000 700,000
Series F-7, 4.10% (1) 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
NYC HDC MH RB, James Tower Development, Series A, 3.80% (1) 600,000 600,019
- ------------------------------------------------------------------------------------------------------------------------
NYC MTAU RB, 3.10%, 2/9/99 (2) 3,000,000 3,000,000
- ------------------------------------------------------------------------------------------------------------------------
NYC MTAU Transportation Facilities RB, Series SG3 6, 3.10%, 1/1/99 (2) 2,390,000 2,390,000
- ------------------------------------------------------------------------------------------------------------------------
NYC Municipal Assistance Corp. RB, Series F, 4% (1) 2,000,000 2,000,000
- ------------------------------------------------------------------------------------------------------------------------
NYS DA COP, Rockefeller University, 4.10% (1) 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
NYS DA RB, Memorial Sloan Kettering Cancer Center, 3.15%, 2/1/99 (2) 2,500,000 2,500,000
- ------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, State University, Prerefunded, Series A,
7.125%, 5/15/99 (2) 3,415,000 3,529,665
- ------------------------------------------------------------------------------------------------------------------------
NYS Environmental Quality GOB, 3%, 3/1/99 (2) 1,250,000 1,250,000
- ------------------------------------------------------------------------------------------------------------------------
NYS ERDAUEF RB, L.I. Lighting Co.:
Series A, 3.85% (1) 600,000 600,000
Series B, 4.10% (1) 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
NYS ERDAUPC RRB, Niagara Mohawk Power Corp., Series B, 5.05% (1) 1,100,000 1,100,000
- ------------------------------------------------------------------------------------------------------------------------
NYS HFA RB, Normandie Court I Project, 4.10% (1) 2,800,000 2,800,048
- ------------------------------------------------------------------------------------------------------------------------
NYS LGAC RB, Series G, 3.85% (1) 2,500,000 2,500,000
- ------------------------------------------------------------------------------------------------------------------------
NYS MAG RB, Series PT217, 3.15%, 5/6/99 (2) 1,300,000 1,300,000
- ------------------------------------------------------------------------------------------------------------------------
NYS MCFFA RRB, Hospital & Nursing Home, Prerefunded, Series A,
7.25%, 2/15/99 (2) 1,750,000 1,766,097
- ------------------------------------------------------------------------------------------------------------------------
NYS PAU RB, Series SG4, 4.10% (1) 1,900,000 1,900,000
- ------------------------------------------------------------------------------------------------------------------------
NYS TBTAU Beneficial Interest COP, MBIA Insured, 3.50%, 1/15/99 (2) 1,900,000 1,900,000
- ------------------------------------------------------------------------------------------------------------------------
NYS Empire UDC RB, Series A, 4.10% (1) 1,900,000 1,900,000
- ------------------------------------------------------------------------------------------------------------------------
PAUNYNJ SPO RRB, Versatile Structure Obligation, Series 2, 5.05% (1) 1,000,000 1,000,000
</TABLE>
4 Centennial New York Tax Exempt Trust
<PAGE>
===============================================
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
========================================================================================================================
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Suffold Cnty., NY TAN, Series II, 4%, 9/9/99 $2,500,000 $ 2,510,802
- ------------------------------------------------------------------------------------------------------------------------
Syracuse, NY IDA Civic Facility RB, Syracuse University Project, 5% (1) 1,700,000 1,700,000
------------
55,994,917
- ------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS - 7.1%
- ------------------------------------------------------------------------------------------------------------------------
PR CMWLTH, Tax & RAN, 3.50%, 7/30/99 2,500,000 2,509,226
- ------------------------------------------------------------------------------------------------------------------------
PR Industrial, Medical & Environmental PC Facilities FAU RB, Reynolds
Metals Co. Project, 3.60%, 9/1/99 (2) 1,600,000 1,600,000
------------
4,109,226
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 103.6% 60,104,143
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (3.6) (2,093,216)
---------- ------------
NET ASSETS 100.0% $58,010,927
========== ============
</TABLE>
<TABLE>
To simplify the listings of securities, abbreviations are used per the table
below:
<S> <C>
CMWLTH - Commonwealth MH - Multifamily Housing
COP - Certificates of Participation MTAU - Metropolitan Transportation Authority
DA - Dormitory Authority NYC - New York City
ERDAUEF - Energy Research & Development NYS - New York State
Authority Electric Facilities PAUNYNJ - Port Authority of New York &
ERDAUPC - Energy Research & Development New Jersey
Authority Pollution Control PAU - Power Authority
FAU - Finance Authority PC - Pollution Control
GOB - General Obligation Bonds RAN - Revenue Anticipation Nts.
GOUN - General Obligation Unlimited Nts. RB - Revenue Bonds
HDC - Housing Development Corp. RRB - Revenue Refunding Bonds
HFA - Housing Finance Agency SDI - School District
IDA - Industrial Development Agency SPO - Special Obligations
LGAC - Local Government Assistance Corp. TAN - Tax Anticipation Nts.
L.I. - Long Island TBTAU - Triborough Bridge & Tunnel Authority
MAG - Mtg. Agency UDC - Urban Development Corp.
MCFFA - Medical Care Facilities Finance Agency
</TABLE>
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, 1998. This instrument may also have a demand feature which allows, on up to
30 days' notice, the recovery of principal at any time, or at specified
intervals not exceeding one year.
2. Put obligation redeemable at full face value on the date reported.
See accompanying Notes to Financial Statements.
5 Centennial New York Tax Exempt Trust
<PAGE>
=================================================================
STATEMENT OF ASSETS AND LIABILITIES December 31, 1998 (Unaudited)
<TABLE>
=============================================================================================================================
ASSETS
<S> <C>
Investments, at value $60,104,143
- -----------------------------------------------------------------------------------------------------------------------------
Cash 293,489
- -----------------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 473,411
Shares of beneficial interest sold 183,479
Other 2,872
------------
Total assets 61,057,394
=============================================================================================================================
LIABILITIES
Payables and other liabilities:
Investments purchased 2,500,000
Shares of beneficial interest redeemed 479,570
Service plan fees 28,006
Transfer and shareholder servicing agent fees 4,470
Other 34,421
-----------
Total liabilities 3,046,467
=============================================================================================================================
NET ASSETS $58,010,927
============
=============================================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $58,013,769
- -----------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (2,842)
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - applicable to 58,013,769 shares of beneficial
interest outstanding $58,010,927
============
=============================================================================================================================
NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND OFFERING PRICE PER SHARE $1.00
</TABLE>
See accompanying Notes to Financial Statements.
6 Centennial New York Tax Exempt Trust
<PAGE>
==============================================================================
STATEMENT OF OPERATIONS For the Six Months Ended December 31, 1998 (Unaudited)
<TABLE>
=============================================================================================================================
<S> <C>
INVESTMENT INCOME - Interest $941,615
=============================================================================================================================
EXPENSES
Management fees - Note 3 145,687
- -----------------------------------------------------------------------------------------------------------------------------
Service plan fees - Note 3 56,819
- -----------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 3 16,864
- -----------------------------------------------------------------------------------------------------------------------------
Shareholder reports 14,699
- -----------------------------------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 4,922
- -----------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 4,301
- -----------------------------------------------------------------------------------------------------------------------------
Registration and filing fees 1,458
- -----------------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 1,219
- -----------------------------------------------------------------------------------------------------------------------------
Other 1,557
---------
Total expenses 247,526
Less expenses paid indirectly - Note 3 (4,301)
Less assumption of expenses by Centennial Asset Management Corporation - Note 3 (8,583)
---------
Net expenses 234,642
=============================================================================================================================
NET INVESTMENT INCOME 706,973
=============================================================================================================================
NET REALIZED LOSS ON INVESTMENTS (108)
=============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $706,865
=========
</TABLE>
<TABLE>
<CAPTION>
===================================
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended
December 31, 1998 Year Ended
(Unaudited) June 30, 1998
=============================================================================================================================
OPERATIONS
<S> <C> <C>
Net investment income $ 706,973 $ 1,536,032
- -----------------------------------------------------------------------------------------------------------------------------
Net realized loss (108) (844)
----------------------------------
Net increase in net assets resulting from operations 706,865 1,535,188
=============================================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (714,587) (1,528,418)
=============================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions - Note 2 1,212,035 7,903,908
=============================================================================================================================
NET ASSETS
Total increase 1,204,313 7,910,678
=============================================================================================================================
Beginning of period 56,806,614 48,895,936
------------ ------------
End of period $58,010,927 $56,806,614
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
7 Centennial New York Tax Exempt Trust
<PAGE>
====================
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months
Ended
December 31, Year Ended June 30,
1998 (Unaudited) 1998 1997 1996 1995 1994
=================================================================================================================================
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 .03 .03 .02
Dividends and distributions to shareholders (.01) (.03) (.03) (.03) (.03) (.02)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=================================================================================
=================================================================================================================================
TOTAL RETURN(1) 1.27% 2.87% 2.76% 2.79% 2.85% 1.68%
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $58,011 $56,807 $48,896 $39,807 $35,846 $26,519
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $57,801 $53,923 $45,363 $42,351 $29,590 $25,419
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.43%(2) 2.85% 2.73% 2.76% 2.84% 1.67%
Expenses, before voluntary assumption
by the Manager (0.85)%(2) 0.89% 0.88% 0.93% 0.95% 1.02%
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 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 Trust. Prior year expense ratios have not been
adjusted.
See accompanying Notes to Financial Statements.
8 Centennial New York Tax Exempt Trust
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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 advisor 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, 1998 YEAR ENDED JUNE 30, 1998
SHARES AMOUNT SHARES AMOUNT
--------------------------- ------------------------------
<S> <C> <C> <C> <C>
Sold 86,113,998 $86,113,998 189,493,444 $ 189,493,444
Dividends and distributions reinvested 753,913 753,913 1,477,555 1,477,555
Redeemed (85,655,876) (85,655,876) (183,067,091) (183,067,091)
------------ ------------ ------------- --------------
Net increase 1,212,035 $ 1,212,035 7,903,908 $ 7,903,908
============ ============ ============== ==============
</TABLE>
9 Centennial New York Tax Exempt Trust
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
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% of the first
$250 million of net assets; 0.475% of the next $250 million of net assets; 0.45%
of the next $250 million; 0.425% of the next $250 million and 0.40% of net
assets in excess of $1 billion. The Manager has voluntarily undertaken to assume
Trust expenses in excess of 0.80% of average annual net assets. The Trust's
management fee for the six months ended December 31, 1998 was 0.50% of the
average annual net assets of the Trust.
Shareholder Services, Inc. (SSI), a subsidiary of the Manager, is the transfer
and shareholder servicing agent for the Trust and other Oppenheimer funds. SSI's
total costs of providing such services are allocated ratably to these funds.
Expenses paid indirectly represent a reduction of custodian fees for earnings on
cash balances maintained by the Trust.
Under an approved service plan, the Trust may expend up to 0.20% of its net
assets annually to reimburse the Manager, 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 Centennial New York Tax Exempt Trust
<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, Trustee, Vice President, Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Michael J. Carbuto, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. 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 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 of 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.)
303-768-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5143
Denver, CO 80217-5143
11 Centennial New York Tax Exempt Trust
