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[FRONT COVER]
1999 Semiannual Report
Centennial New York
Tax Exempt Trust
December 31, 1999
[LOGO] OPPENHEIMERFUNDS(r)
The Right Way to Invest
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James C. Swain
Chairman
Centennial New York
Tax Exempt Trust
Bridget A. Macaskill
President
Centennial New York
Tax Exempt Trust
Dear Shareholder:
We are pleased to report that the second half of calendar and fiscal 1999 was a
relatively calm period for both the bond market and Centennial New York Tax
Exempt Trust. For the six months that ended December 31, 1999, the Trust
produced a compounded annual yield of 2.50%. Without compounding, the
corresponding yield was 2.46%. For investors in the 36% tax bracket, this is
equivalent to a taxable yield of 3.91% with compounding, and 3.84% without.
As of December 31, 1999, the seven-day annualized yields, with and without
compounding, were 3.70% and 3.63%, respectively.(1)
The pivotal events of the six-month period were three 0.25% interest-rate
increases implemented by the Federal Reserve Board (the Fed), beginning on June
30th. By early summer, it was clear that the U.S. economy was no longer
suffering the effects of the worldwide economic crisis that occurred in the fall
of 1998. In fact, there were signs that rapid economic growth might lead to
higher rates of inflation. To preempt this possibility and curb borrowing by
business and consumers, the Fed gradually raised its key interest rates. These
moves did not cause a great deal of turmoil in the marketplace. Widely
anticipated, they were viewed largely as "taking back" three rate declines the
Fed had imposed during the fall-1998 crisis.
As we entered the second half of the calendar year, the average maturity of the
Trust's holdings was approximately 60 days. We shortened this by shifting our
focus to shorter-term securities, in anticipation of the coming rate increases.
When rates rise, bond prices fall, and the effect is more pronounced for
longer-term issues. Since the Trust seeks to maintain a stable $1.00 share
price, we wanted to minimize this effect and invested a portion of the portfolio
in shorter-term issues. There can be no assurance that the Trust will maintain a
stable share price, but we are ever mindful of the need to balance yield against
protecting your principal.
Focusing on shorter-term issues helped to reduce volatility, or price
instability, for the Trust. So did our emphasis on safety and liquidity. We feel
this is particularly important in New York, because the state has lagged others
in economic growth in recent years. While New York is experiencing a stable if
slow revenue increase, we continue to believe that caution is warranted because,
in a rising rate environment, the bonds of weaker states will be more volatile.
1. Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
2 Centennial New York Tax Exempt Trust
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In pursuit of quality and stability, we have invested the portfolio in some
AAA-rated notes and made extensive use of demand notes or commercial paper
backed by bank letters of credit, insured notes, and pre-refunded bonds. In
fact, we have a fairly large concentration in the last of these, which tend to
sit very high on the credit scale.
Pre-refunded bonds are older bonds that are backed by U.S. Treasury bonds. The
municipality that originally issued them issues new debt, then uses the proceeds
from the new issue to buy Treasuries, which are placed in escrow to later repay
the older bonds. At the appropriate time, these Treasuries are cashed in to
retire the older bonds. With such solid backing, pre-refunded bonds usually
receive a high rating.
At this juncture, Y2K does not seem to present any formidable challenges, it
remains to be seen whether the past rate hikes will slow the economy materially,
and interest rates have been relatively stable for several months. Since
November, we have adjusted our strategy slightly and are currently reinvesting
proceeds from maturing seven-day securities into 35- to 45-day issues. This
shift has boosted the Trust's yield, but we do not believe it will have a
significant impact on volatility.
In our view, interest rates will remain within a narrow range while the Federal
Reserve assesses its next interest rate move, widely expected in February or
March. While the Fed assumes a low-key, month-to-month approach, taking its time
to see whether its 1999 moves will have the desired effect--or whether
additional increases are needed--we are doing the same. By investing primarily
in securities that mature monthly or thereabouts, we are keeping the Trust
positioned to respond quickly once the Fed gives some indication of its next
move. This conservative approach will help us to maintain a competitive yield
while pursuing the Trust's objectives of safety and liquidity.
Sincerely,
/s/James C. Swain /s/Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
January 24, 2000
3 Centennial New York Tax Exempt Trust
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Statement of Investments December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
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Short-Term Tax-Exempt Obligations - 97.9%
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New York - 97.9%
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<S> <C> <C> <C>
Babylon, NY IDA RB, J. D'Addario & Co. Project, 5.60% (1) $ 500,000 $ 500,000
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Franklin Cnty., NY IDA RAN, McAdam Cheese Co. Project, 5.50% (1) 1,900,000 1,900,000
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Hempstead, NY IDA RRB, Trigen-Nassau Energy, 5.85% (1) 1,000,000 1,000,000
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Jefferson Cnty., NY IDA RB, 3.75% (1) 2,500,000 2,499,998
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L.I., NY PAU Electric System Sub. RB, 3.60%, 1/25/00 (2) 2,000,000 2,000,000
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Nassau Cnty., NY RAN, 4.25%, 3/15/00 2,000,000 2,002,566
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NYC GOB, Subseries A-4, 4.70% (1) 1,800,000 1,800,000
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NYC HDC MH RB, James Tower Development, Series A, 5.20% (1) 1,100,000 1,100,013
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NYC Health & Hospital Corp. RB:
Health Systems, Series A, 3.75%, 2/1/00 (2) 1,000,000 1,000,000
Health Systems, Series E, 3.70%, 2/1/00 (2) 1,000,000 1,000,000
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NYC IDA Civic Facility RB, Columbia Grammar School Project, 5.50% (1) 900,000 900,000
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NYC MTAU RB, 3.50%, 1/25/00 (2) 1,200,000 1,200,000
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NYC Trust Cultural Resource RRB, American Museum of Natural History,
Series A, MBIA Insured, 5.05% (1) 1,000,000 1,000,000
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NYC, NY General Obligation Anticipation Nts., 3.70%, 1/27/00 (2) 2,000,000 2,000,000
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NYS DA COP, Rockefeller University, 5.53% (1) 500,000 500,000
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NYS DA RB, 5.68% (1) 3,200,000 3,200,000
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NYS DA RRB:
SUEFS, Prerefunded, Series B, 7.375%, 5/15/00 (2) 2,600,000 2,685,063
SUEFS, Prerefunded, Series B, 7.25%, 5/15/00 (2) 3,150,000 3,251,615
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NYS ERDAUEF RRB, Con Edison Co., Subseries A-3, 5.35% (1) 2,500,000 2,500,000
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NYS General Obligation Anticipation Nts., 3.50%, 1/24/00 (2) 1,000,000 1,000,000
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NYS GOB, 5% (1) 400,000 400,000
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NYS HFA RB, Saxony Housing, Series A, 5.50% (1) 2,800,000 2,800,000
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NYS LGAC RB:
Series G, 5% (1) 2,000,000 2,000,000
Series SG99, MBIA Insured, 5.55%, 4/1/00 (1)(2) 1,600,000 1,600,000
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NYS MAG RB, Series PT217, 3.30%, 4/6/00 (2) 2,160,000 2,160,000
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NYS MCFFA RB:
Prerefunded, Series A, FSA Insured, 7.75%, 2/15/00 (2) 2,090,000 2,141,128
St. Lukes Hospital, Series B, 7.45%, 2/15/00 (2) 6,250,000 6,406,841
St. Lukes Hospital, Series B, 7.45%, 2/15/00 (2) 6,500,000 6,656,594
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NYS TBTAU RB, Series SG-41, 5.55% (1) 2,730,000 2,730,000
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NYS Toll Way Authority Service Contract RB, 5.53% (1) 8,000,000 8,000,000
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NYS Urban Empire Development Corp. RB, Series A, 5.53% (1) 3,600,000 3,600,000
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Southeast NY IDA RB, Unilock NY, Inc. Project, 5.50% (1) 2,000,000 2,000,000
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Total Investments, at Value 97.9% 73,533,818
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Other Assets Net of Liabilities 2.1 1,609,234
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Net Assets 100.0% $ 75,143,052
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</TABLE>
4 Centennial New York Tax Exempt Trust
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Statement of Investments (Unaudited)(Continued)
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To simplify the listings of securities, abbreviations are used per the table
below:
COP - Certificates of Participation
DA - Dormitory Authority
ERDAUEF - Energy Research & Development Authority Electric Facilities
GOB - General Obligation Bonds
HDC - Housing Development Corp.
HFA - Housing Finance Agency
IDA - Industrial Development Agency
LGAC - Local Government Assistance Corp.
MAG - Mtg. Agency
MCFFA - Medical Care Facilities Finance Agency
MH - Multifamily Housing
MTAU - Metropolitan Transportation Authority
NYC - New York City
NYS - New York State
PAU - Power Authority
RAN - Revenue Anticipation Nts.
RB - Revenue Bonds
RRB - Revenue Refunding Bonds
SUEFS - State University Educational Facilities System
TBTAU - Triborough Bridge & Tunnel Authority
1. Represents the current interest rate for a variable rate security, maturing
in more than one year. 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
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Statement of Assets and Liabilities December 31, 1999 (Unaudited)
<TABLE>
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Assets
<S> <C>
Investments, at value $73,533,818
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Cash 552,162
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Receivables and other assets:
Shares of beneficial interest sold 903,751
Interest 903,303
Other 3,317
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Total assets 75,896,351
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Liabilities Payables and other liabilities:
Shares of beneficial interest redeemed 673,018
Shareholder reports 36,444
Service plan fees 30,174
Dividends 8,385
Trustees' compensation 151
Other 5,127
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Total liabilities 753,299
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Net Assets $75,143,052
======================
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Composition of Net Assets
Paid-in capital $75,135,720
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Accumulated net realized gain on investment transactions 7,332
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Net assets - applicable to 75,135,720 shares of beneficial
interest outstanding $75,143,052
======================
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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
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Statement of Operations For the Six Months Ended December 31, 1999 (Unaudited)
<TABLE>
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Investment Income
<S> <C>
Interest $1,064,157
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Expenses
Management fees 156,523
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Service plan fees 62,444
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Transfer and shareholder servicing agent fees 19,323
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Shareholder reports 14,531
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Custodian fees and expenses 9,028
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Trustees' compensation 818
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Other 7,647
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Total expenses 270,314
Less expenses paid indirectly (4,159)
Less reimbursement of expenses (13,250)
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Net expenses 252,905
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Net Investment Income 811,252
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Net Realized Gain on Investments 10,805
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Net Increase in Net Assets Resulting from Operations $822,057
======================
</TABLE>
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Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1999 Year Ended
(Unaudited) June 30, 1999
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Operations
<S> <C> <C>
Net investment income $811,252 $1,410,445
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Net realized gain (loss) 10,805 (739)
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Net increase in net assets resulting from operations 822,057 1,409,706
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Dividends and/or Distributions to Shareholders (811,252) (1,418,059)
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Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions 13,340,372 4,993,614
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Net Assets
Total increase 13,351,177 4,985,261
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Beginning of period 61,791,875 56,806,614
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End of period $75,143,052 $61,791,875
======================= ======================
</TABLE>
See accompanying Notes to Financial Statements.
7 Centennial New York Tax Exempt Trust
<TABLE>
<CAPTION>
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Financial Highlights
Six Months
Ended
December 31, Year Ended June 30,
1999 (Unaudited) 1999 1998 1997 1996 1995
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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
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Income from investment operations - net
investment income and net realized gain .01 .02 .03 .03 .03 .03
Dividends and/or distributions to shareholders (.01) (.02) (.03) (.03) (.03) (.03)
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Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================
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Total Return(1) 1.33% 2.42% 2.87% 2.76% 2.79% 2.85%
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Ratios/Supplemental Data
Net assets, end of period (in thousands) $75,143 $61,792 $56,807 $48,896 $39,807 $35,846
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Average net assets (in thousands) $62,163 $59,345 $53,923 $45,363 $42,351 $29,590
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Ratios to average net assets:(2)
Net investment income 2.59% 2.38% 2.85% 2.73% 2.76% 2.84%
Expenses 0.86% 0.89% 0.89% (3) 0.88%(3) 0.93%(3) 0.95%(3)
Expenses, net of indirect expenses and/or
voluntary assumption of expenses 0.80% 0.80% 0.80% 0.80% 0.80% 0.80%
</TABLE>
1. Assumes a $1,000 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. Total returns are not annualized for
periods of less than one full year.
2. Annualized for periods less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses
paid indirectly.
See accompanying Notes to Financial Statements.
8 Centennial New York Tax Exempt Trust
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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.
Securities 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.
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Trust.
Other. Investment transactions are accounted for as of 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.
There are certain risks arising from geographic concentration in any state.
Certain revenue or tax related event in a state may impair the ability of
certain issuers of municipal securities to pay principal and interest on their
obligations.
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, 1999 Year Ended June 30, 1999
Shares Amount Shares Amount
----------------------------------- -----------------------------------
<S> <C> <C> <C> <C>
Sold 111,752,061 $111,752,061 194,238,424 $194,238,424
Dividends and/or distributions 841,466 841,466 1,385,354 1,385,354
reinvested
Redeemed (99,253,155) (99,253,155) (190,630,164) (190,630,164)
------------- ------------- ------------- -------------
Net increase 13,340,372 $ 13,340,372 4,993,614 $ 4,993,614
============= ============= ============= =============
</TABLE>
9 Centennial New York Tax Exempt Trust
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Notes to Financial Statements Unaudited--Continued
3. Management Fees and Other Transactions with Affiliates
Management Fees. 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; 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, 1999 was 0.50% of average
annual net assets, annualized for periods of less than one full year.
Transfer Agent Fees. Shareholder Services, Inc. (SSI), a subsidiary of the
Manager, 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.
Service Plan Fees. 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
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Centennial New York Tax Exempt Trust
Officers and Trustees
James C. Swain, Trustee and Chairman of the Board
Bridget A. Macaskill, Trustee and President
Robert G. Avis, Trustee
William A. Baker, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Michael J. Carbuto, Vice President
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
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
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RS0780.001.1299
