-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IuxRh7YFo3KbxKbZV+W1ftdz59bw2LZ1ZRvWwyvt1jA25iiLjW/ecI56NsGWAaEX SJ4SjnTeN20+RCzwgUUzlA== 0000935069-03-000249.txt : 20030228 0000935069-03-000249.hdr.sgml : 20030228 20030228164803 ACCESSION NUMBER: 0000935069-03-000249 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021231 FILED AS OF DATE: 20030228 EFFECTIVENESS DATE: 20030228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTENNIAL NEW YORK TAX EXEMPT TRUST CENTRAL INDEX KEY: 0000837278 IRS NUMBER: 133481209 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05584 FILM NUMBER: 03587253 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: 3RD FLOOR CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 FORMER COMPANY: FORMER CONFORMED NAME: OPPENHEIMER NEW YORK TAX EXEMPT CASH RESERVES DATE OF NAME CHANGE: 19900530 N-30D 1 rs0780_6473vef.txt RS0780_6473VEF Dear Shareholder: We are pleased to present you with this semiannual report for Centennial New York Tax Exempt Trust. For the six-month reporting period that ended December 31, 2002, the Trust provided a 0.60% compounded annual yield. Without the effects of compounding, the equivalent yield was 0.59%. For investors in the 36% federal tax bracket, this is equivalent to a taxable yield of 0.94% with compounding and 0.92% without compounding. As of December 31, 2002, the seven-day annualized yields, with and without compounding, were 0.58% and 0.58%, respectively. 1 The U.S. economy continued to improve during the past six months. Much of the economic growth continued to be courtesy of consumers, whose spending remained surprisingly strong in the face of considerable economic uncertainty. Not all of the economic news, however, was good. Corporate earnings continued to lag analysts' expectations, manufacturing spending remained depressed, unemployment returned to levels not seen since the spring and consumer confidence generally declined. Responding to these warning signs, the Federal Reserve Board ("the Fed") further lowered the federal funds interest rate to 1.25%, its lowest level since 1961. With the cut in interest rates came a corresponding decline in yields of short-term fixed-income securities, such as those found in the Trust. Yet many investors were willing to accept these low yields rather than invest in the stock market, which was very volatile and went down more than up during the period. In this environment, fixed-income investments--especially high-quality bonds with relatively short maturities--performed well. Tax-free municipal securities enjoyed especially strong performance; during part of the period, in fact, yields for some tax-free bonds actually exceeded those of certain taxable bonds--a rare situation that resulted from an especially large supply of municipal securities during the past six months. Our overall approach to managing the Trust remained relatively consistent throughout the period. We continued to seek to identify attractive money market debt backed by issuers with strong credit. The state of New York found itself facing a significant budget shortfall, and New York City, among other municipal regions, struggled to make up for declining tax revenues. In this climate, we were especially careful when selecting New York debt to invest in, focusing on those securities whose issuers were, in our opinion, in sound financial shape. In particular, we emphasized securities backed by ongoing revenues and de-emphasized general obligation debt, which is backed by state or local tax collections. This approach was part of our ongoing effort to maintain a stable $1 net asset value for shareholders. (While we always strive to maintain a $1 share price, there is, of course, no guarantee that this objective will be achieved.) 1. Compounded yields assume reinvestments of dividends. The Trust's investment strategy, allocations and focus can change over time. Another strategy we followed was to monitor the movements of interest rates and attempt to capture higher yields for the Trust by investing accordingly. As we discussed in our last report to shareholders, we continued to invest a significant portion of Trust assets in securities providing fixed interest payments. Using this strategy, we were able to lock in higher prevailing yields for longer--a decision that, in hindsight, proved sound after the Fed lowered interest rates further in November. Another approach we continued to favor for the Trust was to invest in commercial paper--short-term corporate debt that matures in 270 days or less. We found commercial paper attractive because it offers portfolio managers more flexibility than can be found with other types of investments. When appropriate, we favored enhanced commercial paper, whose income payments are guaranteed by a bank or other third party. In light of the challenging economic environment faced by issuers, we found this guarantee especially welcoming. In addition, we also invested in a handful of put bonds--bonds that provide their owners with an option to redeem the bonds at an agreed-upon price before maturity--and, when available, prerefunded securities. Prerefunded securities, which generally are in high demand and thus difficult to obtain, are backed by the full faith and credit of the federal government. Looking ahead, we expect few significant changes to market conditions in the near future. Accordingly, we do not currently plan to alter our Trust management approach during the coming months. To position the Trust to weather future financial challenges, we expect to continue to emphasize bond issuers with strong credit and focus on high-quality tax-free money market securities. As we add new debt investments to the Trust, we will continue to scrutinize issuers' credit quality, helping to maximize yield while seeking to maintain a stable net asset value for our shareholders. Sincerely, /S/ James C. Swain /S/ John V. Murphy James C. Swain John V. Murphy Chairman of the Board President Centennial New York Tax Exempt Trust January 23, 2003 In reviewing performance, please remember that past performance cannot guarantee future results. Yields will fluctuate. An investment in the Trust is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Trust seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Trust. 2 Financial Statements Pages 4-11 3 Statement of Investments December 31, 2002 / Unaudited Centennial New York Tax Exempt Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Short-Term Tax-Exempt Obligations--99.4% New York--96.5% Babylon, NY IDA RR RRB, Ogden Martin Project, FSA Insured, 1.60% 1 .............. $ 1,500,000 $ 1,500,000 Buffalo, NY RAN, FGIC Insured, 2.50%, 6/27/03 ................................... 3,000,000 3,014,032 NYC HDC MH Rent RB, Montery Project, Series A, 1.55% 1 .......................... 2,700,000 2,700,000 NYC IDA Civic Facility RB, Casa Project, 1.60% 1 ................................ 1,000,000 1,000,000 NYC IDA Civic Facility RB, Planned Parenthood Project, 1.50% 1 .................. 3,000,000 3,000,000 NYC MTAU BAN, 1.30%, 3/7/03 ..................................................... 3,000,000 3,000,000 NYC MTAU Service Contract Transportation Facilities RB, Series P, 5.75%, 7/1/03 2 .................................................... 2,500,000 2,591,723 NYC MWFAU RB, 1.05%, 2/11/03 .................................................... 3,000,000 3,000,000 NYC RAN, 2.50%, 4/11/03 ......................................................... 3,000,000 3,007,089 NYC Transitional FAU GOUN, Series 4, 2.50%, 2/26/03 ............................. 3,000,000 3,004,933 NYS DA RB, Columbia University, 1.30%, 1/15/03 .................................. 3,300,000 3,300,000 NYS DA RB, Rockefeller University, Series A2, 1.45% 1 ........................... 3,000,000 3,000,000 NYS DA RRB, Municipal Securities Trust Receipts-CMC1B, 1.55% 1 .................. 1,300,000 1,300,000 NYS DA SDI Finance Program GOUN, Series A, MBIA Insured, 4/1/03 ................. 2,000,000 2,007,800 NYS Environmental Quality GOB, Series 97 A, 1.30%, 1/21/03 ...................... 3,000,000 3,000,000 NYS GOUN, Series A, 1.50%, 10/9/03 2 ............................................ 2,000,000 2,000,000 NYS HFA MH RB, East 39th Street Housing, Series A, 1.60% 1 ...................... 500,000 500,000 NYS LGAC RRB, Series B, 4/1/03 .................................................. 1,525,000 1,538,394 NYS PAU GP RRB, Prerefunded, Series CC, 4.80%, 1/1/03 2 ......................... 450,000 459,000 NYS PAU RB, 1.30%, 1/15/03 ...................................................... 3,300,000 3,300,000 NYS TBTAU RB, Series N16 Reg D, 1.40%, 1/1/03 2 ................................. 7,000,000 7,000,000 NYS TWY Highway and Bridge Trust Fund Certificates, Series B, 4/1/03 ............................................................. 8,600,000 8,632,492 Societe Generale, NY Branch Municipal Securities Trust Receipts, Series 1997 SG99 (NYS LGAC RRB), 1.52% 1 ..................................... 1,700,000 1,700,000 Westchester, NY GOB, Series E, 2.50%, 12/15/03 .................................. 3,000,000 3,038,831 -------------- 66,594,294 -------------- U.S. Possessions--2.9% PR CMWLTH HTAU RB Putters, Series 246, FSA Insured, 1.60% 1 ..................... 2,000,000 2,000,000 ------------------------------- Total Investments, at Value (Cost $68,594,294) .................................. 99.4% 68,594,294 ------------------------------- Other Assets Net of Liabilities ................................................. 0.6 408,959 ------------------------------- Net Assets ...................................................................... 100.0% $ 69,003,253 ===============================
4 Statement of Investments Unaudited / Continued Centennial New York Tax Exempt Trust - -------------------------------------------------------------------------------- Footnotes to Statement of Investments To simplify the listings of securities, abbreviations are used per the table below: BAN--Bond Anticipation Nts. CMWLTH--Commonwealth DA--Dormitory Authority FAU--Finance Authority GOB--General Obligation Bonds GOUN--General Obligation Unlimited Nts. GP--General Purpose HDC--Housing Development Corp. HFA--Housing Finance Agency HTAU--Highway & Transportation Authority IDA--Industrial Development Agency LGAC--Local Government Assistance Corp. MH--Multifamily Housing MTAU--Metropolitan Transportation Authority MWFAU--Municipal Water Finance Authority NYC--New York City NYS--New York State PAU--Power Authority RAN--Revenue Anticipation Nts. RB--Revenue Bonds RR--Resource Recovery RRB--Revenue Refunding Bonds SDI--School District TBTAU--Triborough Bridge & Tunnel Authority TWY--Thruway/Tollway Authority/Agency 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, 2002. This instrument has 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 principal value on the date reported. See accompanying Notes to Financial Statements. 5 Statement of Assets and Liabilities December 31, 2002 / Unaudited Centennial New York Tax Exempt Trust
- -------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $68,594,294)--see accompanying statement ............ $ 68,594,294 Cash ............................................................................ 461,487 Receivables and other assets: Interest ........................................................................ 434,819 Shares of beneficial interest sold .............................................. 172,795 Other ........................................................................... 6,490 ------------ Total assets .................................................................... 69,669,885 LIABILITIES Payables and other liabilities: Shares of beneficial interest redeemed .......................................... 576,337 Service plan fees ............................................................... 34,678 Shareholder reports ............................................................. 7,670 Transfer and shareholder servicing agent fees ................................... 3,977 Trustees' compensation .......................................................... 281 Other ........................................................................... 43,689 ------------ Total liabilities ............................................................... 666,632 ------------ NET ASSETS ...................................................................... $69,003,253 ============ COMPOSITION OF NET ASSETS Paid-in capital ................................................................. $ 68,993,763 Accumulated net realized gain on investment transactions ........................ 9,490 ------------ NET ASSETS--applicable to 68,978,813 shares of beneficial interest outstanding .. $ 69,003,253 ============ NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND OFFERING PRICE PER SHARE .................................................... $1.00
See accompanying Notes to Financial Statements. 6 Statement of Operations For the Six Months Ended December 31, 2002 / Unaudited Centennial New York Tax Exempt Trust
- ------------------------------------------------------------------------------------ INVESTMENT INCOME Interest ................................................................ $520,128 -------- EXPENSES Management fees ......................................................... 186,327 Service plan fees ....................................................... 73,444 Legal, auditing and other professional fees ............................. 41,566 Transfer and shareholder servicing agent fees ........................... 18,916 Shareholder reports ..................................................... 8,131 Custodian fees and expenses ............................................. 2,644 Trustees' compensation .................................................. 2,550 Other ................................................................... 2,489 -------- Total expenses ..................................................... 336,067 Less reduction to custodian expenses .................................... (1,656) Less voluntary reimbursement of expenses ................................ (36,384) -------- Net expenses ............................................................ 298,027 -------- NET INVESTMENT INCOME ................................................... 222,101 -------- NET REALIZED GAIN ON INVESTMENTS ........................................ 9,490 -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .................... $231,591 ========
See accompanying Notes to Financial Statements. 7 Statements of Changes in Net Assets Centennial New York Tax Exempt Trust
Six Months Ended December 31, 2002 Year Ended (Unaudited) June 30, 2002 - --------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income ............................................ $ 222,101 $ 736,438 Net realized gain ................................................ 9,490 8,633 ----------------------------------- Net increase in net assets resulting from operations ............. 231,591 745,071 ----------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income ............................. (222,101) (728,821) Distributions from net realized gain ............................. -- (7,617) ----------------------------------- BENEFICIAL INTEREST TRANSACTIONS Net increase (decrease) in net assets resulting from beneficial interest transactions ............................... 375,914 (3,761,029) ----------------------------------- NET ASSETS Total increase (decrease) ........................................ 385,404 (3,752,396) Beginning of period .............................................. 68,617,849 72,370,245 ----------------------------------- End of period .................................................... $69,003,253 $68,617,849 ===================================
See accompanying Notes to Financial Statements. 8 Financial Highlights Centennial New York Tax Exempt Trust
Six Months Year Ended Ended December 31, 2002 June 30, (Unaudited) 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------- 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 ................ -- 1 .01 .03 .03 .02 .03 ------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income ................... -- 1 (.01) (.03) (.03) (.02) (.03) Distributions from net realized gain ................... -- -- 1 -- -- -- -- ------------------------------------------------------------------- Total dividends and/or distributions to shareholders ........................................ -- (.01) (.03) (.03) (.02) (.03) ------------------------------------------------------------------- Net asset value, end of period ........................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 =================================================================== TOTAL RETURN 2 ........................................... 0.30% 0.96% 3.09% 2.92% 2.42% 2.87% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands) ................. $69,003 $68,618 $72,370 $55,963 $61,792 $56,807 Average net assets (in thousands) ........................ $73,925 $76,925 $68,810 $61,033 $59,345 $53,923 Ratios to average net assets: 3 Net investment income .................................... 0.60% 0.96% 3.04% 2.84% 2.38% 2.85% Expenses ................................................. 0.90% 0.84% 0.90% 0.92% 0.89% 0.89% 4 Expenses, net of voluntary reimbursement of expenses and/or reduction to custodian expenses ........ 0.80% 0.80% 0.82% 0.82% 0.80% 0.80%
1. Less than $0.005 per share. 2. Assumes an 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 less than one year. 3. Annualized for periods of less than one full year. 4. Expense ratio has been calculated without adjustment for the reduction to custodian expenses. See accompanying Notes to Financial Statements. 9 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 as is consistent with the 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. - -------------------------------------------------------------------------------- Security Credit Risk. There are certain risks arising from geographic concentration in any state. Certain revenue or tax related events in a state may impair the ability of certain issuers of municipal securities to pay principal and interest on their obligations. - -------------------------------------------------------------------------------- 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. As of December 31, 2002, the Trust had available for federal income tax purposes an estimated unused capital loss carryforward of zero. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. - -------------------------------------------------------------------------------- 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. - -------------------------------------------------------------------------------- Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. 10 Notes to Financial Statements Unaudited / Continued Centennial New York Tax Exempt Trust - -------------------------------------------------------------------------------- 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:
Six Months Ended December 31, 2002 Year Ended June 30, 2002 Shares Amount Shares Amount - ----------------------------------------------------------------------------------------------------------------- Sold ............................. 117,436,521 $ 117,436,521 198,007,710 $ 198,007,710 Dividends and/or distributions reinvested ......... 229,807 229,807 747,918 747,918 Redeemed ......................... (117,290,414) (117,290,414) (202,516,657) (202,516,657) ---------------------------------------------------------------------------- Net increase (decrease) .......... 375,914 $ 375,914 (3,761,029) $ (3,761,029) ============================================================================
- -------------------------------------------------------------------------------- 3. 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 of net assets; 0.45% of the next $250 million of net assets; 0.425% of the next $250 million of net assets; and 0.40% of net assets in excess of $1 billion. The Manager has voluntarily undertaken to assume certain expenses of the Trust in any fiscal year that they exceed 0.80% of the Trust's average annual net assets. The Manager reserves the right to amend or terminate that expense assumption at any time. - -------------------------------------------------------------------------------- Transfer Agent Fees. Shareholder Services, Inc. (SSI) acts as the transfer and shareholder servicing agent for the Trust and for other registered investment companies. The Trust pays SSI a $14.75 per account fee. - -------------------------------------------------------------------------------- Service Plan (12b-1) Fees. The Trust has adopted a service plan. It reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold shares of the Trust. Reimbursement is made quarterly at an annual rate up to 20% of the average annual net assets of the Trust. During the six months ended December 31, 2002, the Trust paid $219 to a broker/dealer affiliated with the Manager as reimbursement for distribution-related expenses. 11 Centennial New York Tax Exempt Trust Officers and Trustees James C. Swain, Trustee and Chairman of the Board John V. Murphy, President William L. Armstrong, Trustee Robert G. Avis, Trustee George C. Bowen, Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee Beverly Hamilton, Trustee Robert J. Malone, Trustee Michael J. Carbuto, Vice President Robert G. Zack, Vice President and Secretary Brian W. Wixted, Treasurer Investment Advisor and Distributor Centennial Asset Management Corporation Transfer and Shareholder Servicing Agent Shareholder Services, Inc. Independent Auditors Deloitte & Touche LLP Legal Counsel to the Fund Myer, Swanson, Adams & Wolf, P.C. Legal Counsel to the Independent Trustees Mayer Brown Rowe & Maw For more complete information about Centennial New York Tax Exempt Trust, please refer to the Prospectus. To obtain a copy, call your financial advisor, or contact Centennial Asset Management Corp. at 1.800.525.9310. Please read the prospectus carefully before you invest any money. The financial statements included herein have been taken from the records of the Trust without examination of those records by the independent auditors. 2002 Semiannual Report and Management Commentaries Centennial New York Tax Exempt Trust December 31, 2002 RS0780.001.1202 [LOGO] Printed on recycled paper -----END PRIVACY-ENHANCED MESSAGE-----