-----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, G3mx4fvUUXecQLdnYGFdx/64J983rROS0rgLi5ALhK/wvA8KWoNCwDlLczQPZUix 0r5fqiibWZgW+g3oDTMgjw== 0000935069-03-000252.txt : 20030228 0000935069-03-000252.hdr.sgml : 20030228 20030228170655 ACCESSION NUMBER: 0000935069-03-000252 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 MONEY MARKET TRUST CENTRAL INDEX KEY: 0000312538 IRS NUMBER: 840856138 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02945 FILM NUMBER: 03587431 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 2: 6803 SOUTH TUCSON CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 FORMER COMPANY: FORMER CONFORMED NAME: DAILY CASH INSTITUTIONAL TRUST DATE OF NAME CHANGE: 19810624 N-30D 1 rs0150_6469vef.txt RS0150_6469VEF Dear Shareholder: We are pleased to provide you with this semiannual report for Centennial Money Market Trust. During the six-month reporting period ended December 31, 2002, the Trust produced a 1.37% annualized yield, and when taking into account the effects of compounding, a 1.38% annualized effective yield. As of December 31, the Trust's 7-day yields, with and without compounding, were 1.21% and 1.20%, respectively. 1 These returns are primarily the result of the period's low interest rates, which remained near historical lows throughout the reporting period. Although the Trust's annualized yield reflected the period's low short-term interest rates, the Trust successfully preserved its shareholders' capital in a highly volatile market environment for long-term financial assets. For many investors, money market funds such as Centennial Money Market Trust represented a safe haven from a declining stock market. When the reporting period began in June 2002, the U.S. economy had begun to recover from the 2001 recession. To stimulate renewed economic growth, the Federal Reserve Board had previously reduced short-term interest rates aggressively with 11 rate cuts in 2001, driving the benchmark federal funds rate - -- the rate banks charge one another for overnight loans -- to 1.75%, a 40-year low. Consumer spending remained relatively strong as Americans responded to low interest rates by purchasing automobiles, buying new homes and improving existing ones. However, corporations generally continued to curtail capital spending. Without support from the corporate sector, the economy's performance turned decidedly mixed, and many analysts became concerned that the recovery was in danger of stalling. Economic signals remained mixed throughout the third quarter of 2002, contributing to growing uncertainty among investors. What's more, investors became increasingly concerned about the potential economic effects of the corporate scandals affecting a number of major U.S. corporations. Heightened international tensions related to possible war in Iraq also contributed to investors' worries. Yet, despite these concerns, troubling signs of rising unemployment and a persistently weak stock market, the economy managed to grow at a relatively strong 4% rate between July and September. In response to what it called a "soft patch" in the economy at the start of the fourth quarter 2002, the Fed intervened in November with a 0.5 percentage-point interest-rate reduction, its first in 2002, dropping the federal funds rate to 1.25%. Investors and consumers apparently responded well to this move, as the stock market began to rally strong. 1. Compounded yields assume reinvestments of dividends. The Trust's investment strategy, allocations, and focus can change over time. In this generally weak and uncertain economic environment, we looked for tactical opportunities to invest at higher yields whenever possible. We occasionally identified such opportunities among commercial paper in the six-month maturity range. Otherwise, we had little choice but to reinvest maturing securities at prevailing rates. In addition, the Trust's performance was helped by the change in investment policy that was enacted early in the year. In February 2002, the Board of Trustees extended the Trust's maximum average maturity from 60 days to 90 days. This additional flexibility enabled us to capture the higher yields of longer dated securities and lock in rates for as long as practical while interest rates declined. At times during the year, the Trust's weighted average maturity extended beyond 80 days. At the end of December, the Trust's weighted average maturity ranged between 60 and 70 days, reflecting year-end factors that typically arise. From a security selection standpoint, we found what we believed to be relatively attractive values in very highly rated commercial paper, and these short-term debt instruments comprised the majority of the Trust throughout the year. We also invested in variable-rate notes on which yields are re-set every three months, as well as securities issued by U.S. government agencies, such as Fannie Mae, Freddie Mac and Ginnie Mae. Looking forward, we intend to maintain a relatively constructive posture until we see convincing signs of economic strength. Accordingly, we have maintained the Trust's weighted average maturity at points that are somewhat longer than the average for our peer group. In our view, this is a prudent approach to earning competitive levels of income while helping to ensure the safety and liquidity of the assets entrusted to us. Sincerely, /S/ James C. Swain /S/ John V. Murphy - ------------------ ------------------ James C. Swain John V. Murphy Chairman President Centennial Money Market 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 4-22 3 Statement of Investments December 31, 2002 / Unaudited Centennial Money Market Trust
Principal Value Amount See Note 1 - ---------------------------------------------------------------------------------------------------------------------- Certificates of Deposit--13.6% Domestic Certificates of Deposit--5.1% Bank of New York: 1.76%, 1/27/03............................................................... $ 100,000,000 $ 99,997,853 1.76%, 1/29/03............................................................... 100,000,000 100,000,000 1.76%, 1/30/03............................................................... 100,000,000 100,000,000 Chase Manhattan Bank USA NA: 1.72%, 1/2/03................................................................ 50,000,000 50,000,000 1.72%, 1/3/03................................................................ 50,000,000 50,000,000 1.72%, 1/6/03................................................................ 50,000,000 50,000,000 Citibank NA: 1.32%, 3/12/03............................................................... 20,000,000 19,999,592 1.33%, 2/27/03............................................................... 57,500,000 57,500,000 1.33%, 3/18/03............................................................... 100,000,000 100,000,000 National Bank of Commerce, Tennessee: 1.39%, 1/24/03 1............................................................. 25,000,000 24,998,571 1.40%, 6/23/03 1............................................................. 100,000,000 99,984,850 1.41%, 6/20/03 1............................................................. 60,000,000 59,993,976 1.84%, 1/17/03............................................................... 100,000,000 100,000,440 State Street Bank and Trust, 1.33%, 2/13/03..................................... 83,000,000 83,000,495 Suntrust Bank, 1.47%, 5/23/03 1................................................. 66,200,000 66,224,544 Wells Fargo Bank NA, 1.32%, 2/14/03............................................. 70,000,000 69,999,573 -------------- 1,131,699,894 -------------- Yankee Certificates of Deposit--8.5% Abbey National Treasury Services, 1.33%, 3/19/03................................ 13,000,000 13,000,000 Bank of Scotland, New York, 1.33%, 3/24/03...................................... 50,000,000 50,000,000 Barclays Bank plc, 1.80%, 1/15/03............................................... 75,000,000 75,000,000 Barclays Bank plc, New York: 1.74%, 3/3/03................................................................ 92,000,000 91,996,816 1.80%, 1/23/03............................................................... 30,000,000 30,000,000 1.82%, 1/16/03............................................................... 100,000,000 100,000,000 BNP Paribas, Chicago: 1.33%, 3/26/03............................................................... 75,000,000 75,000,000 1.34%, 5/14/03............................................................... 150,000,000 150,000,000 1.66%, 4/9/03................................................................ 94,000,000 94,000,000 BNP Paribas, New York, 2.63%, 6/6/03 73,000,000 73,387,807
4 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - ---------------------------------------------------------------------------------------------------------------------- Yankee Certificates of Deposit Continued Canadian Imperial Bank of Commerce, New York: 1.33%, 2/10/03............................................................... $ 50,000,000 $ 50,000,000 1.33%, 2/11/03............................................................... 132,000,000 132,000,000 1.33%, 3/10/03............................................................... 50,000,000 50,000,000 1.73%, 1/7/03................................................................ 50,000,000 50,000,082 Deutsche Bank, 1.32%, 2/6/03.................................................... 76,000,000 76,000,000 Lloyds TSB Bank plc, New York: 1.32%, 3/21/03............................................................... 100,000,000 100,000,000 1.75%, 3/17/03............................................................... 138,000,000 138,020,755 1.75%, 3/20/03............................................................... 14,500,000 14,502,283 Nordea Bank Finland plc, New York, 1.70%, 1/24/03............................... 50,000,000 50,000,000 Rabobank Nederland NV, New York, 2.34%, 2/26/03................................. 25,000,000 25,021,092 Royal Bank of Scotland, New York: 1.72%, 1/21/03............................................................... 28,000,000 28,000,155 2.10%, 2/13/03............................................................... 50,000,000 50,000,000 Svenska Handelsbanken, New York: 1.94%, 1/22/03............................................................... 125,000,000 125,000,721 1.96%, 1/17/03............................................................... 125,000,000 125,000,000 UBS AG, Stamford, 2%, 2/20/03................................................... 100,000,000 100,000,685 -------------- 1,865,930,396 -------------- Total Certificates of Deposit (Cost $2,997,630,290)............................. 2,997,630,290 -------------- Direct Bank Obligations--19.1% AB SPINTAB: 1.33%, 3/12/03............................................................... 115,000,000 114,703,715 1.34%, 2/20/03............................................................... 68,400,000 68,272,700 1.52%, 2/10/03............................................................... 26,000,000 25,956,089 1.74%, 2/13/03............................................................... 98,000,000 97,805,652 Abbey National North America: 1.31%, 2/10/03............................................................... 85,000,000 84,876,278 1.31%, 2/12/03............................................................... 50,000,000 49,923,583 ABN AMRO North America Finance, Inc.: 1.32%, 1/21/03............................................................... 50,000,000 49,963,333 1.74%, 4/17/03............................................................... 161,500,000 160,672,582 Bank One NA: 1.75%, 3/17/03............................................................... 70,000,000 70,000,000 1.80%, 1/16/03............................................................... 100,000,000 100,000,000 1.80%, 1/17/03............................................................... 100,000,000 100,000,000 1.82%, 1/13/03............................................................... 150,000,000 150,000,000 Barclays US Funding Corp., 1.33%, 3/19/03 ...................................... 22,500,000 22,435,994
5 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Direct Bank Obligations Continued Canadian Imperial Holdings, Inc., 1.51%, 1/31/03................................ $ 150,000,000 $ 149,811,250 Danske Corp., Series A: 1.52%, 2/6/03................................................................ 10,000,000 9,984,800 1.75%, 2/12/03............................................................... 100,000,000 99,795,833 1.76%, 3/19/03............................................................... 154,800,000 154,269,906 1.80%, 1/16/03............................................................... 68,000,000 67,949,000 Governor & Co. of the Bank of Ireland: 1.32%, 2/6/03 2.............................................................. 100,000,000 99,868,000 1.33%, 4/22/03 2............................................................. 50,000,000 49,794,958 1.76%, 4/21/03 2............................................................. 100,000,000 99,462,222 1.76%, 4/23/03 2............................................................. 82,000,000 81,551,004 1.83%, 1/10/03 2............................................................. 100,000,000 99,954,250 HBOS Treasury Services: 1.32%, 5/12/03............................................................... 70,000,000 69,663,767 1.33%, 3/20/03............................................................... 50,000,000 49,855,917 1.33%, 3/27/03............................................................... 22,000,000 21,931,174 1.53%, 2/4/03................................................................ 15,500,000 15,477,602 1.70%, 3/12/03............................................................... 30,000,000 29,900,833 1.74%, 2/26/03............................................................... 96,700,000 96,438,608 1.74%, 3/4/03................................................................ 50,000,000 49,850,597 1.77%, 4/24/03............................................................... 45,000,000 44,750,694 Lloyds TSB Bank plc: 1.33%, 3/11/03............................................................... 63,200,000 63,038,893 1.76%, 4/24/03............................................................... 46,500,000 46,243,843 National City Bank of Indiana: 1.52%, 3/7/03................................................................ 90,000,000 90,000,000 1.57%, 2/5/03................................................................ 100,000,000 100,000,000 Nationwide Building Society: 1.33%, 3/6/03................................................................ 10,000,000 9,976,356 1.33%, 3/10/03............................................................... 50,000,000 49,874,861 1.33%, 3/18/03............................................................... 70,000,000 69,803,456 1.54%, 2/4/03................................................................ 75,000,000 74,890,917 1.55%, 2/6/03................................................................ 50,000,000 49,922,500 1.74%, 4/16/03............................................................... 127,000,000 126,357,327 1.75%, 2/10/03............................................................... 50,000,000 49,902,778 Nordea North America, Inc.: 1.35%, 5/21/03............................................................... 85,600,000 85,150,600 1.75%, 4/21/03 .............................................................. 39,700,000 39,487,715
6 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Direct Bank Obligations Continued Societe Generale North America: 1.33%, 2/12/03............................................................... $ 75,000,000 $ 74,883,625 1.33%, 3/18/03............................................................... 18,000,000 17,949,460 1.33%, 3/26/03............................................................... 100,000,000 99,690,833 1.77%, 2/3/03................................................................ 136,700,000 136,488,685 Svenska Handelsbanken, Inc., Series S: 1.33%, 3/10/03............................................................... 24,500,000 24,438,451 1.38%, 6/4/03................................................................ 25,000,000 24,852,417 1.97%, 1/9/03................................................................ 106,000,000 105,956,062 Swedbank AB: 1.50%, 2/5/03................................................................ 78,500,000 78,385,521 1.74%, 5/2/03................................................................ 48,000,000 47,719,280 U.S. Bank NA, North Dakota, 1.34%, 4/30/03 1.................................... 150,000,000 149,937,000 UBS Finance (Delaware) LLC, 1.32%, 3/13/03...................................... 146,200,000 145,818,481 Wells Fargo Bank NA: 1.68%, 4/1/03................................................................ 19,550,000 19,551,906 1.68%, 4/2/03................................................................ 50,000,000 50,004,929 -------------- Total Direct Bank Obligations (Cost $4,215,246,237)............................. 4,215,246,237 -------------- Letters of Credit--0.4% Barclays Bank plc, guaranteeing commercial paper of Banco Nacional de Comerercio Exterior SNC: 1.34%, 2/3/03 ............................................................... 20,000,000 19,975,433 1.53%, 2/7/03................................................................ 17,000,000 16,973,268 1.72%, 1/27/03............................................................... 8,000,000 7,990,062 1.80%, 1/23/03............................................................... 40,000,000 39,956,000 -------------- Total Letters of Credit (Cost $84,894,763)...................................... 84,894,763 -------------- Short-Term Notes--63.0% Aerospace & Defense--0.3% General Dynamics Corp.: 1.75%, 3/12/03 2............................................................. 50,000,000 49,829,861 1.80%, 1/8/03 2.............................................................. 20,000,000 19,993,000 -------------- 69,822,861 --------------
7 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Asset-Backed--24.9% Atlantic Asset Securitization Corp.: 1.36%, 3/18/03 3............................................................. $ 75,000,000 $ 74,784,667 1.39%, 1/3/03 2.............................................................. 148,220,000 148,208,554 1.40%, 1/2/03 2.............................................................. 21,659,000 21,658,158 1.40%, 1/21/03 2............................................................. 95,000,000 94,925,611 1.42%, 1/23/03 2............................................................. 41,000,000 40,964,421 1.45%, 1/6/03 2.............................................................. 50,000,000 49,989,931 BILLS Securitisation Ltd.: 1.59%, 2/4/03................................................................ 75,000,000 74,887,375 1.73%, 1/8/03................................................................ 100,000,000 99,966,361 1.77%, 3/10/03............................................................... 80,000,000 79,732,533 Charta Corp.: 1.32%, 2/10/03 2............................................................. 60,000,000 59,912,000 1.35%, 2/20/03 2............................................................. 45,000,000 44,915,625 1.36%, 1/28/03 2............................................................. 86,000,000 85,912,475 1.36%, 2/6/03 2.............................................................. 50,000,000 49,932,000 1.79%, 1/24/03 2............................................................. 92,300,000 92,194,445 Crown Point Capital Co.: 1.35%, 2/7/03 2.............................................................. 85,000,000 84,882,063 1.38%, 2/26/03 2............................................................. 49,185,000 49,079,416 1.38%, 3/6/03 2.............................................................. 79,000,000 78,806,187 1.82%, 1/22/03 2............................................................. 76,800,000 76,718,308 1.82%, 1/29/03 2............................................................. 70,500,000 70,400,203 Fairway Finance Corp.: 1.34%, 2/12/03 2............................................................. 53,778,000 53,694,241 1.35%, 3/10/03 2............................................................. 40,319,000 40,216,187 1.35%, 3/14/03 2............................................................. 25,200,000 25,131,960 1.35%, 3/25/03 2............................................................. 10,081,000 10,049,623 1.35%, 3/27/03 2............................................................. 12,018,000 11,979,693 1.36%, 2/5/03 2.............................................................. 35,167,000 35,120,501 1.42%, 1/13/03 2............................................................. 44,661,000 44,639,860 1.60%, 1/28/03 2............................................................. 19,385,000 19,361,738 1.79%, 4/23/03 2............................................................. 16,226,000 16,135,639 1.80%, 1/30/03 2............................................................. 40,393,000 40,334,430 1.86%, 1/22/03 2............................................................. 37,927,000 37,886,205 FCAR Owner Trust I: 1.70%, 1/24/03............................................................... 93,500,000 93,398,449 1.71%, 1/22/03............................................................... 75,500,000 75,424,689 1.72%, 3/3/03................................................................ 70,000,000 69,795,989 1.77%, 1/15/03............................................................... 50,000,000 49,965,583 1.77%, 1/16/03 .............................................................. 50,000,000 49,963,125
8 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Asset-Backed Continued FCAR Owner Trust II, 1.82%, 1/9/03.............................................. $ 69,000,000 $ 68,972,093 Galaxy Funding, Inc.: 1.37%, 2/14/03 2............................................................. 25,000,000 24,958,139 1.80%, 1/15/03 2............................................................. 47,000,000 46,967,100 1.80%, 1/28/03 2............................................................. 25,000,000 24,966,250 GOVCO, Inc.: 1.33%, 2/10/03 2............................................................. 55,000,000 54,918,722 1.35%, 2/18/03 2............................................................. 15,500,000 15,472,100 1.35%, 2/19/03 2............................................................. 60,000,000 59,889,750 1.63%, 1/16/03 2............................................................. 38,000,000 37,974,192 1.71%, 1/24/03 2............................................................. 50,000,000 49,945,375 1.74%, 4/15/03 2............................................................. 25,000,000 24,874,333 1.77%, 3/17/03 2............................................................. 20,000,000 19,926,042 1.80%, 1/21/03 2............................................................. 58,791,000 58,732,209 1.80%, 1/23/03 2............................................................. 62,500,000 62,431,250 1.80%, 1/27/03 2............................................................. 50,000,000 49,935,000 Greyhawk Funding LLC: 1.35%, 2/7/03 2.............................................................. 40,000,000 39,944,500 1.35%, 2/24/03 2............................................................. 65,000,000 64,868,375 1.35%, 2/26/03 2............................................................. 100,000,000 99,790,000 1.35%, 3/13/03 2............................................................. 95,000,000 94,747,063 1.76%, 1/15/03 2............................................................. 47,000,000 46,967,831 1.76%, 1/22/03 2............................................................. 25,000,000 24,974,333 1.82%, 1/13/03 2............................................................. 50,000,000 49,970,833 La Fayette Asset Securitization: 1.37%, 3/17/03 2............................................................. 79,510,000 79,283,065 1.39%, 3/18/03 2............................................................. 10,400,000 10,369,701 1.40%, 3/26/03 2............................................................. 9,555,000 9,523,787 1.43%, 1/27/03 2............................................................. 34,000,000 33,964,886 1.43%, 1/29/03 2............................................................. 27,150,000 27,119,803 1.55%, 1/3/03 2.............................................................. 14,500,000 14,498,751 Lexington Parker Capital Co. LLC: 1.38%, 2/20/03 2............................................................. 20,800,000 20,760,133 1.41%, 6/2/03 2.............................................................. 85,000,000 84,493,967 1.76%, 3/14/03 2............................................................. 88,000,000 87,690,240 1.78%, 1/27/03 2............................................................. 180,000,000 179,768,600 1.80%, 4/17/03 2............................................................. 29,000,000 28,846,300 1.85%, 1/17/03 2............................................................. 21,000,000 20,982,733 Neptune Funding Corp.: 1.40%, 2/26/03 2............................................................. 29,000,000 28,936,393 1.40%, 3/24/03 2............................................................. 50,000,000 49,840,556
9 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Asset-Backed Continued Neptune Funding Corp. Continued 1.40%, 5/21/03 2............................................................. $ 70,000,000 $ 69,618,889 1.41%, 3/31/03 2............................................................. 5,000,000 4,982,571 1.44%, 6/4/03 2.............................................................. 70,000,000 69,568,800 1.44%, 6/5/03 2.............................................................. 29,800,000 29,615,240 1.75%, 3/3/03 2.............................................................. 50,000,000 49,851,736 1.79%, 2/3/03 2.............................................................. 43,102,000 43,031,277 1.80%, 2/28/03 2............................................................. 40,000,000 39,884,000 1.85%, 1/15/03 2............................................................. 12,500,000 12,491,007 New Center Asset Trust: 1.35%, 3/24/03............................................................... 50,000,000 49,846,250 1.73%, 2/28/03............................................................... 25,000,000 24,930,319 1.77%, 3/7/03................................................................ 125,000,000 124,600,521 1.77%, 3/27/03............................................................... 100,000,000 99,582,083 1.78%, 3/28/03............................................................... 55,000,000 54,766,128 Old Line Funding Corp., 1.33%, 2/7/03 2......................................... 27,182,000 27,144,983 Perry Global Funding LLC, Series A: 1.71%, 2/7/03 2.............................................................. 33,500,000 33,441,124 1.75%, 2/21/03 2............................................................. 30,000,000 29,925,625 1.77%, 2/18/03 2............................................................. 36,174,000 36,088,629 1.79%, 1/9/03 2.............................................................. 100,000,000 99,960,222 1.83%, 1/13/03 2............................................................. 112,089,000 112,020,626 1.83%, 1/14/03 2............................................................. 111,000,000 110,925,564 1.84%, 1/16/03 2............................................................. 7,000,000 6,994,633 Preferred Receivables Funding Corp., 1.42%, 1/14/03 2........................... 30,000,000 29,984,617 Scaldis Capital LLC: 1.37%, 3/10/03 2............................................................. 43,430,000 43,317,613 1.38%, 2/12/03 2............................................................. 8,596,000 8,582,160 1.43%, 1/27/03 2............................................................. 45,000,000 44,953,525 1.67%, 4/9/03 2.............................................................. 79,829,000 79,475,693 1.68%, 3/25/03 2............................................................. 15,113,000 15,054,462 1.68%, 3/26/03 2............................................................. 30,276,000 30,157,318 1.68%, 3/28/03 2............................................................. 56,242,000 56,016,282 1.71%, 4/1/03 2.............................................................. 15,111,000 15,046,401 1.75%, 2/7/03 2.............................................................. 21,989,000 21,949,450 1.78%, 4/11/03 2............................................................. 27,500,000 27,364,028 1.80%, 1/17/03 2............................................................. 12,244,000 12,234,205 1.80%, 2/21/03 2............................................................. 38,355,000 38,257,195 1.81%, 1/23/03 2 ............................................................ 31,342,000 31,307,332
10 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Asset-Backed Continued Sheffield Receivables Corp.: 1.35%, 1/17/03 2............................................................. $ 15,870,000 $ 15,859,773 1.35%, 1/30/03 2............................................................. 25,460,000 25,432,312 1.38%, 5/21/03 2............................................................. 73,779,000 73,383,053 1.86%, 1/8/03 2.............................................................. 50,000,000 49,981,917 -------------- 5,495,900,213 -------------- Automotive--0.2% BMW US Capital Corp., 1.40%, 1/10/03............................................ 50,000,000 49,982,500 -------------- Banks--0.8% Citicorp, Inc.: 1.32%, 4/18/03............................................................... 50,000,000 49,803,833 1.33%, 3/20/03............................................................... 45,000,000 44,870,325 JPMorgan Chase & Co., 1.35%, 2/14/03............................................ 69,000,000 68,886,150 -------------- 163,560,308 -------------- Beverages--0.4% Diageo Capital plc: 1.38%, 1/9/03 2.............................................................. 50,000,000 49,984,667 1.98%, 3/11/03 2............................................................. 45,000,000 44,829,225 -------------- 94,813,892 -------------- Broker-Dealers--6.4% Banc of America Securities LLC, 1.46%, 1/2/03 1................................. 20,000,000 20,000,000 Goldman Sachs Group LP: 1.42%, 3/13/03 4............................................................. 95,000,000 95,000,000 1.42%, 3/14/03 4............................................................. 80,000,000 80,000,000 1.45%, 5/16/03 4............................................................. 50,000,000 50,000,000 1.48%, 5/29/03 4............................................................. 100,000,000 100,000,000 1.48%, 5/30/03 4............................................................. 25,000,000 25,000,000 1.56%, 5/5/03 4.............................................................. 75,500,000 75,500,000 Merrill Lynch & Co., Inc., 1.71%, 1/3/03........................................ 165,000,000 164,984,325 Morgan Stanley: 1.31%, 12/2/03 1............................................................. 167,200,000 167,200,000 1.32%, 3/6/03................................................................ 100,000,000 99,765,333 1.77%, 2/13/03............................................................... 100,000,000 99,788,583 7.13%, 1/15/03 .............................................................. 25,000,000 25,045,221
11 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Broker-Dealers Continued Salomon Smith Barney Holdings, Inc.: 1.40%, 5/5/03 1.............................................................. $ 160,000,000 $ 160,000,000 1.75%, 1/23/03............................................................... 100,000,000 99,893,056 1.79%, 4/25/03 1............................................................. 70,000,000 70,000,000 1.81%, 1/10/03............................................................... 75,000,000 74,966,063 -------------- 1,407,142,581 -------------- Chemicals--1.4% BASF AG: 1.33%, 2/21/03 2............................................................. 127,000,000 126,760,711 1.36%, 5/19/03 2............................................................. 100,000,000 99,480,583 1.54%, 3/3/03 2.............................................................. 85,000,000 84,778,197 -------------- 311,019,491 -------------- Commercial Finance--1.2% Private Export Funding Corp.: 1.33%, 3/19/03 2............................................................. 20,000,000 19,943,105 1.75%, 2/5/03 2.............................................................. 17,300,000 17,270,566 1.75%, 4/23/03 2............................................................. 25,000,000 24,863,889 1.76%, 4/15/03 2............................................................. 19,850,000 19,749,074 1.76%, 4/17/03 2............................................................. 26,675,000 26,536,961 1.76%, 4/22/03 2............................................................. 32,000,000 31,826,347 1.76%, 4/29/03 2............................................................. 25,000,000 24,855,778 1.77%, 1/21/03 2............................................................. 19,650,000 19,630,677 1.77%, 2/4/03 2.............................................................. 25,000,000 24,958,208 1.77%, 2/11/03 2............................................................. 25,000,000 24,949,604 1.77%, 2/20/03 2............................................................. 25,000,000 24,938,542 -------------- 259,522,751 -------------- Consumer Finance--2.2% American Express Credit Corp.: 1.68%, 2/7/03................................................................ 49,000,000 48,915,394 1.68%, 3/5/03................................................................ 70,000,000 69,809,950 American Express Credit Corp., Series B: 1.41%, 4/25/03 1............................................................. 70,000,000 70,000,000 1.42%, 5/7/03 1 ............................................................. 160,000,000 160,000,000
12 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Consumer Finance Continued American General Finance Corp.: 1.81%, 1/13/03............................................................... $ 50,000,000 $ 49,969,833 1.98%, 1/8/03................................................................ 95,000,000 94,963,425 -------------- 493,658,602 -------------- Consumer Services--0.1% First Data Corp., 1.45%, 1/2/03................................................. 30,000,000 29,998,792 -------------- Diversified Financial--2.1% General Electric Capital Corp.: 1.33%, 5/12/03............................................................... 19,000,000 18,908,045 1.59%, 2/7/03................................................................ 19,000,000 18,968,951 1.76%, 3/14/03............................................................... 26,000,000 25,908,480 General Electric Capital Services: 1.33%, 4/3/03................................................................ 72,000,000 71,755,280 1.70%, 2/7/03................................................................ 40,000,000 39,930,111 Prudential Funding LLC, 1.65%, 4/10/03.......................................... 25,000,000 24,886,563 Wells Fargo Financial, Inc.: 1.35%, 2/25/03............................................................... 12,000,000 11,975,342 1.75%, 3/19/03............................................................... 74,400,000 74,122,312 1.80%, 1/15/03............................................................... 85,000,000 84,940,500 1.84%, 1/10/03............................................................... 100,000,000 99,954,000 -------------- 471,349,584 -------------- Diversified Telecommunication Services--0.2% SBC International, Inc., 1.55%, 1/30/03 2....................................... 50,000,000 49,937,569 -------------- Food Products--1.7% Nestle Capital Corp.: 1.87%, 2/3/03 2.............................................................. 159,200,000 158,927,105 1.89%, 2/6/03 2.............................................................. 95,000,000 94,820,450 1.90%, 2/5/03 2.............................................................. 130,000,000 129,759,861 -------------- 383,507,416 -------------- Insurance--6.2% Allstate Life Insurance Co., 1.47%, 1/2/03 1.................................... 50,000,000 50,000,000 GE Financial Assurance Holdings, Inc., 1.54%, 2/28/03 2......................... 34,000,000 33,915,642 General Electric Capital Assurance Co., 1.49%, 12/1/03 1,4 ..................... 143,000,000 143,000,000
13 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Insurance Continued ING America Insurance Holdings, Inc.: 1.32%, 2/13/03............................................................... $ 27,500,000 $ 27,456,642 1.34%, 3/10/03............................................................... 39,000,000 38,901,655 1.34%, 3/11/03............................................................... 40,000,000 39,897,267 1.34%, 3/12/03............................................................... 32,000,000 31,916,622 1.35%, 3/5/03................................................................ 45,000,000 44,893,687 1.35%, 3/20/03............................................................... 14,500,000 14,457,587 1.38%, 5/12/03............................................................... 61,000,000 60,694,370 1.53%, 2/10/03............................................................... 25,000,000 24,957,500 1.75%, 1/10/03............................................................... 25,000,000 24,989,063 1.76%, 1/24/03............................................................... 25,000,000 24,971,889 1.82%, 1/9/03................................................................ 43,000,000 42,982,609 1.84%, 1/7/03................................................................ 50,000,000 49,984,708 Jackson National Life Insurance Co.: 1.39%, 1/2/03 1.............................................................. 48,000,000 48,000,000 1.81%, 3/3/03 1.............................................................. 70,000,000 70,000,000 Metropolitan Life Insurance Co.: 1.47%, 1/2/03 1.............................................................. 100,000,000 100,000,000 1.49%, 1/2/03 1.............................................................. 123,500,000 123,500,000 Pacific Life Insurance Co., 1.46%, 2/14/03 1,4.................................. 71,000,000 71,000,000 Prudential Insurance Co. of America, 1.80%, 1/31/03 1........................... 165,000,000 165,000,000 Travelers Insurance Co., 1.45%, 12/1/03 1,4..................................... 50,000,000 50,000,000 United of Omaha Life Insurance Co.: 1.42%, 1/2/03 1,4............................................................ 16,000,000 16,000,000 1.42%, 7/31/03 1............................................................. 50,000,000 50,000,000 1.52%, 1/2/03 1,4............................................................ 15,000,000 15,000,000 -------------- 1,361,519,241 -------------- Leasing & Factoring--3.0% American Honda Finance Corp.: 1.33%, 2/20/03............................................................... 50,000,000 49,907,986 1.33%, 2/24/03............................................................... 50,000,000 49,900,250 1.34%, 2/12/03............................................................... 49,000,000 48,923,397 1.37%, 6/24/03 1,3........................................................... 10,000,000 9,998,995 1.37%, 6/25/03 1,3........................................................... 75,000,000 74,992,500 1.38%, 6/12/03 1,3........................................................... 50,000,000 50,000,000 1.39%, 5/19/03 1,3........................................................... 50,000,000 50,000,000 1.41%, 4/9/03 1.............................................................. 80,000,000 80,000,000 1.66%, 8/4/03 1,3 ........................................................... 15,000,000 15,000,000
14 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Leasing & Factoring Continued Toyota Motor Credit Corp.: 1.33%, 2/11/03 2............................................................. $ 50,000,000 $ 49,924,264 1.33%, 2/12/03 2............................................................. 40,000,000 39,937,934 1.33%, 2/19/03 2............................................................. 50,000,000 49,909,486 Volkswagen of America: 1.33%, 2/14/03 2............................................................. 50,000,000 49,918,722 1.33%, 2/21/03 2............................................................. 40,000,000 39,924,633 -------------- 658,338,167 -------------- Media--0.4% McGraw-Hill Cos., Inc.: 1.33%, 5/13/03............................................................... 30,000,000 29,853,700 1.33%, 5/14/03............................................................... 50,000,000 49,754,319 -------------- 79,608,019 -------------- Metals & Mining--1.0% Rio Tinto Ltd.: 1.33%, 3/12/03 2............................................................. 26,152,000 26,084,368 1.33%, 3/14/03 2............................................................. 76,265,000 76,062,135 1.34%, 2/21/03 2............................................................. 110,282,000 110,072,648 -------------- 212,219,151 -------------- Oil & Gas--1.8% Chevron Transport Corp. Ltd., 1.68%, 2/7/03 2................................... 15,000,000 14,974,100 Chevron UK Investment plc, 1.68%, 2/7/03 2...................................... 15,000,000 14,974,100 Koch Industries, Inc., 1.20%, 1/2/03 2.......................................... 81,500,000 81,497,283 Shell Finance UK plc, 1.72%, 3/5/03............................................. 47,000,000 46,858,530 Total Fina Elf SA: 1.76%, 4/24/03 2............................................................. 29,000,000 28,839,791 1.76%, 4/25/03 2............................................................. 100,000,000 99,444,250 1.76%, 4/28/03 2............................................................. 100,000,000 99,429,625 -------------- 386,017,679 -------------- Pharmaceuticals--0.7% Aventis: 1.33%, 3/19/03 2............................................................. 97,500,000 97,222,640 1.72%, 1/24/03 2............................................................. 22,798,000 22,772,947 GlaxoSmithKline Finance plc, 1.32%, 1/13/03 2................................... 10,000,000 9,995,437 Pfizer, Inc., 1.31%, 1/27/03 2.................................................. 25,000,000 24,976,347 -------------- 154,967,371 --------------
15 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- Special Purpose Financial--8.0% AriesOne Metafolio Corp.: 1.43%, 1/6/03 2.............................................................. $ 125,000,000 $ 124,975,035 1.45%, 1/7/03 2.............................................................. 40,000,000 39,990,333 Beta Finance, Inc.: 1.37%, 4/22/03 1,3........................................................... 70,000,000 69,993,000 1.76%, 3/17/03 2............................................................. 50,000,000 49,816,667 1.86%, 1/7/03 2.............................................................. 51,000,000 50,984,190 1.87%, 1/6/03 2.............................................................. 134,000,000 133,965,287 Blue Spice LLC: 1.40%, 1/29/03 2,4........................................................... 50,000,000 49,945,556 1.40%, 2/27/03 2,4........................................................... 100,000,000 99,778,333 1.44%, 5/23/03 2,4........................................................... 120,000,000 119,318,400 1.75%, 1/9/03 2,4............................................................ 50,000,000 49,980,556 Cooperative Assn. of Tractor Dealers, Inc., Series A: 1.55%, 1/3/03................................................................ 26,000,000 25,997,761 1.77%, 2/26/03............................................................... 12,467,000 12,432,674 Cooperative Assn. of Tractor Dealers, Inc., Series B: 1.50%, 1/3/03................................................................ 32,000,000 31,997,333 1.77%, 2/24/03............................................................... 15,000,000 14,960,175 CORSAIR Trust, Series 1-1005, 1.63%, 9/17/03 1,3................................ 65,000,000 65,000,000 Independence Funding LLC, 1.84%, 1/8/03 2....................................... 89,000,000 88,968,158 K2 (USA) LLC: 1.39%, 5/30/03 2............................................................. 22,000,000 21,873,433 1.39%, 6/2/03 2.............................................................. 100,000,000 99,414,167 1.76%, 2/20/03 2............................................................. 30,500,000 30,425,444 1.80%, 1/30/03 2............................................................. 41,000,000 40,940,550 1.87%, 1/8/03 2.............................................................. 25,400,000 25,390,764 2.10%, 1/15/03 2............................................................. 63,000,000 62,950,106 LINKS Finance LLC: 1.45%, 5/15/03 1............................................................. 100,000,000 99,995,000 1.45%, 5/15/03 1............................................................. 57,000,000 56,994,300 1.86%, 1/6/03 2.............................................................. 67,500,000 67,482,524 RACERS: Series 2002-31-C, 1.42%, 9/3/03 1,3............................................. 70,000,000 69,906,200 Series 2002-36-C, 1.42%, 10/1/03 1,3............................................ 65,000,000 64,908,350 Series 2002-42-C, 1.40%, 11/17/03 1,4........................................... 90,000,000 89,872,560 --------------- 1,758,256,856 --------------- Total Short-Term Notes (Cost $13,891,143,044)................................... 13,891,143,044 ---------------
16 Statement of Investments Unaudited / Continued Centennial Money Market Trust
Principal Value Amount See Note 1 - --------------------------------------------------------------------------------------------------------------------- U.S. Government Agencies--4.8% Federal Home Loan Bank: 1.58%, 12/9/03............................................................... $ 120,000,000 $ 120,000,000 1.60%, 12/16/03.............................................................. 165,000,000 165,000,000 1.74%, 1/24/03............................................................... 50,000,000 49,944,497 1.85%, 11/10/03.............................................................. 100,000,000 100,000,000 Federal Home Loan Mortgage Corp., 1.74%, 1/10/03-1/30/03........................ 125,000,000 124,848,958 Federal National Mortgage Assn.: 1.67%, 1/23/03............................................................... 91,802,000 91,706,253 1.70%, 12/26/03.............................................................. 70,000,000 70,000,000 4.625%, 5/15/03.............................................................. 30,900,000 31,259,647 FNMA Master Credit Facility: 1.33%, 4/1/03................................................................ 152,500,000 151,998,572 1.70%, 1/8/03................................................................ 27,000,000 26,991,075 1.72%, 1/2/03................................................................ 114,000,000 113,994,553 2%, 4/1/03................................................................... 13,076,000 13,010,620 -------------- Total U.S. Government Agencies (Cost $1,058,754,175)............................ 1,058,754,175 ---------------------------------- Total Investments, at Value (Cost $22,247,668,509).............................. 100.9% 22,247,668,509 ---------------------------------- Liabilities in Excess of Other Assets........................................... (0.9) (193,518,909) ---------------------------------- Net Assets...................................................................... 100.0% $22,054,149,600 ==================================
Footnotes to Statement of Investments Short-term notes, direct bank obligations and letters of credit are generally traded on a discount basis; the interest rate shown is the discount rate received by the Trust at the time of purchase. Other securities normally bear interest at the rates shown. 1. Represents the current interest rate for a variable or increasing rate security. 2. Security issued in an exempt transaction without registration under the Securities Act of 1933. Such securities amount to $8,130,614,317, or 36.87% of the Trust's net assets, and have been determined to be liquid pursuant to guidelines adopted by the Board of Trustees. 3. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $544,583,712 or 2.47% of the Trust's net assets as of December 31, 2002. 4. Identifies issues considered to be illiquid--See Note 4 of Notes to Financial Statements. See accompanying Notes to Financial Statements. 17 Statement of Assets and Liabilities December 31, 2002 / Unaudited Centennial Money Market Trust
- --------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $22,247,668,509)--see accompanying statement........................ $22,247,668,509 Cash ........................................................................................... 28,713,517 Receivables and other assets: Shares of beneficial interest sold.............................................................. 693,534,694 Interest........................................................................................ 24,855,424 Other........................................................................................... 1,096,737 --------------- Total assets.................................................................................... 22,995,868,881 --------------- LIABILITIES Payables and other liabilities: Shares of beneficial interest redeemed.......................................................... 785,209,049 Investments purchased........................................................................... 151,998,572 Transfer and shareholder servicing agent fees................................................... 1,633,859 Service plan fees............................................................................... 1,563,001 Shareholder reports............................................................................. 564,013 Trustees' compensation.......................................................................... 8,028 Other........................................................................................... 742,759 --------------- Total liabilities............................................................................... 941,719,281 --------------- NET ASSETS...................................................................................... $22,054,149,600 =============== COMPOSITION OF NET ASSETS Paid-in capital................................................................................. $22,054,076,305 Accumulated net realized gain on investment transactions........................................ 73,295 --------------- NET ASSETS--applicable to 22,054,678,856 shares of beneficial interest outstanding............... $22,054,149,600 =============== NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND OFFERING PRICE PER SHARE......................... $1.00
See accompanying Notes to Financial Statements. 18 Statement of Operations For the Six Months Ended December 31, 2002 / Unaudited Centennial Money Market Trust
- -------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest....................................................................................... $ 209,157,649 ------------- EXPENSES Management fees................................................................................ 37,971,969 Service plan fees.............................................................................. 22,725,015 Transfer and shareholder servicing agent fees.................................................. 12,475,155 Shareholder reports............................................................................ 923,693 Custodian fees and expenses.................................................................... 321,299 Trustees' compensation......................................................................... 57,625 Other.......................................................................................... 431,200 ------------- Total expenses............................................................................ 74,905,956 Less reduction to custodian expenses........................................................... (2,401) Less reimbursement of expenses................................................................. (22,647,175) ------------- Net expenses................................................................................... 52,256,380 ------------- NET INVESTMENT INCOME.......................................................................... 156,901,269 ------------- NET REALIZED GAIN ON INVESTMENTS............................................................... 73,295 ------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................................... $156,974,564 =============
Statements of Changes in Net Assets
Six Months Ended December 31, 2002 Year Ended (Unaudited) June 30, 2002 - -------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income................................................. $ 156,901,269 $ 453,101,052 Net realized gain..................................................... 73,295 2,031,735 ---------------------------------------- Net increase in net assets resulting from operations.................. 156,974,564 455,132,787 ---------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income.................................. (156,901,269) (453,101,052) Distributions from net realized gain.................................. -- (2,878,464) ---------------------------------------- BENEFICIAL INTEREST TRANSACTIONS Net increase (decrease) in net assets resulting from beneficial interest transactions 318,137,357 (473,579,272) ---------------------------------------- NET ASSETS Total increase (decrease)............................................. 318,210,652 (474,426,001) Beginning of period................................................... 21,735,938,948 22,210,364,949 ---------------------------------------- End of period......................................................... $ 22,054,149,600 $ 21,735,938,948 ========================================
See accompanying Notes to Financial Statements. 19 Financial Highlights Centennial Money Market 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 to shareholders.............................. .01 .02 .06 .05 .05 .05 -------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income.............. (.01) (.02) (.06) (.05) (.05) (.05) Distributions from net realized gain.............. -- -- 1 -- -- -- -- -------------------------------------------------------------- Total dividends and/or distributions to shareholders .................................. (.01) (.02) (.06) (.05) (.05) (.05) -------------------------------------------------------------- Net asset value, end of period...................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ============================================================== TOTAL RETURN 2...................................... 0.70% 1.99% 5.51% 5.36% 4.75% 5.16% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in millions)............. $22,054 $21,736 $22,210 $18,734 $17,821 $15,114 Average net assets (in millions).................... $22,621 $22,947 $20,830 $18,537 $17,128 $12,617 Ratios to average net assets: 3 Net investment income............................... 1.38% 1.97% 5.34% 5.20% 4.63% 5.04% Expenses............................................ 0.66% 0.69% 0.67% 0.67% 0.66% 0.68% 4 Expenses, net of reimbursement of expenses.......... 0.46% 0.66% 0.67% 0.67% 0.66% 0.66%
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. 20 Notes to Financial Statements Unaudited Centennial Money Market Trust - -------------------------------------------------------------------------------- 1. Significant Accounting Policies Centennial Money Market Trust (the Trust) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust's investment objective is to seek the maximum current income that is consistent with low capital risk and the maintenance of liquidity. 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. - -------------------------------------------------------------------------------- Joint Repurchase Agreements. The Trust, along with other affiliated funds of the Manager, may transfer uninvested cash balances into one or more joint repurchase agreement accounts. These balances are invested in one or more repurchase agreements, secured by U.S. government securities. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal; however, in the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings. - -------------------------------------------------------------------------------- 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 Fund 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. 21 Notes to Financial Statements Unaudited / Continued Centennial Money Market 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........................ 27,379,957,716 $ 27,379,957,716 54,965,476,815 $ 54,965,476,815 Dividends and/or distributions reinvested.... 163,793,871 163,793,871 460,354,977 460,354,977 Redeemed.................... (27,225,614,230) (27,225,614,230) (55,899,411,064) (55,899,411,064) -------------------------------------------------------------------------------- Net increase (decrease)..... 318,137,357 $ 318,137,357 (473,579,272) $ (473,579,272) ================================================================================
- -------------------------------------------------------------------------------- 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 the Trust's net assets; 0.475% of the next $250 million; 0.45% of the next $250 million; 0.425% of the next $250 million; 0.40% of the next $250 million; 0.375% of the next $250 million; 0.35% of the next $500 million; and 0.325% of net assets in excess of $2 billion. In the agreement, the Manager guarantees that the Trust's total expenses in any fiscal year, exclusive of taxes, interest and brokerage concessions, and extraordinary expenses such as litigation costs, shall not exceed the lesser of 1.5% of the average annual net assets of the Trust up to $30 million and 1% of its average annual net assets in excess of $30 million; or 25% of the total annual investment income of the Trust. As a result of this agreement, the Trust was reimbursed $22,647,175 for the six months ended December 31, 2002. - -------------------------------------------------------------------------------- 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 $567 to a broker/dealer affiliated with the Manager as reimbursement for distribution-related expenses. - -------------------------------------------------------------------------------- 4. Illiquid Securities As of December 31, 2002, investments in securities included issues that are illiquid. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Trust intends to invest no more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. The aggregate value of illiquid securities subject to this limitation as of December 31, 2002 was $1,129,395,405, which represents 5.12% of the Trust's net assets. 22 This page intentionally left blank. Centennial Money Market 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 F. William Marshall, Jr., Trustee Barry D. Weiss, Vice President Carol E. Wolf, 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 Money Market 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. RS0150.001.1202 [GRAPHIC] Printed on recycled paper 2002 Semiannual Report and Management Commentaries Centennial Money Market Trust December 31, 2002 -----END PRIVACY-ENHANCED MESSAGE-----