-----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, HO/KeZ7FFtxfOIWDdqF3DybfdI1jNIlkLotsDpxCbtnbq5bPO8SDQe7sWgza9GmV J6D3YYPiJB2FlPyTOiR/Mg== 0000950123-96-004877.txt : 19960906 0000950123-96-004877.hdr.sgml : 19960906 ACCESSION NUMBER: 0000950123-96-004877 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960905 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTENNIAL MONEY MARKET TRUST CENTRAL INDEX KEY: 0000312538 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] 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: 96626152 BUSINESS ADDRESS: STREET 1: 3410 S GALENA ST CITY: DENVER STATE: CO ZIP: 80231 BUSINESS PHONE: 3036713200 MAIL ADDRESS: STREET 2: 3410 SOUTH GALENA STREET CITY: DENVER STATE: CO ZIP: 80231 FORMER COMPANY: FORMER CONFORMED NAME: DAILY CASH INSTITUTIONAL TRUST DATE OF NAME CHANGE: 19810624 N-30D 1 CENTENNIAL MONEY MARKET TRUST 1 1996 ANNUAL REPORT CENTENNIAL MONEY MARKET TRUST JUNE 30, 1996 2 DEAR SHAREHOLDER: The twelve months ending June 30, 1996 have been defined by changing beliefs about the direction of the economy which, in turn, has had both positive and negative effects on the securities markets. Toward the end of 1995, most investors expected that the economy would continue to show signs of slowing. In fact, many were convinced that the economy was moving toward recession. Given the prevailing sentiment, it wasn't a surprise when the Federal Reserve lowered interest rates in an effort to prolong the economic expansion. The goal: a slow but steady and sustainable rate of economic growth that would diminish the possibility of recession. The impact of lower interest rates on both the stock and bond markets was profound. The Dow Jones Industrial Average reached an all time high, while most sectors of the bond market chalked up double digit returns. But in mid-February, the federal government issued a report on job growth that radically altered investor perceptions. Suddenly, investors believed that the economy was heating up and inflation was around the corner. In the weeks that followed, the bond market sold off sharply, as long-term interest rates spiked upward, with the benchmark 30-year Treasury yield moving above seven percent. As a result, the bond market weakened between February and June. Though this market environment has created some concerns for both stock and bond investors, rising interest rates are good for investors in short-term securities. Because the portfolio is structured to capture as much yield as possible without taking on any additional credit risk, the Trust continues to invest in short maturity money market securities--especially during the current market. Although shorter-term securities require us to reinvest the proceeds we receive upon maturity more often, in a rising rate environment that means moving into securities issued at higher rates. For the twelve months ended June 30, 1996, the Trust's compounded annualized yield was 5.14%. Its seven-day yields with and without compounding for the twelve-month period ended June 30, 1996 were 4.85% and 4.74%, respectively.(1) As we move through 1996, the strength of the economy continues to be an uncertainty. However, with higher gasoline and agricultural prices there could be some upward pressure on inflation over the next several months. As such, we continue to look for opportunities to add to the portfolio's yield, while keeping the Trust's average maturity shorter than other money funds and remaining alert to the possibility that interest rates may move higher or lower in the coming months. 3 We are pleased to be able to maintain a competitive yield, as well as share price stability, in light of the dramatic changes that have taken place during the past twelve months. Thank you for your confidence in Centennial Money Market Trust. We look forward to helping you reach your financial goals. Sincerely, /s/ James C. Swain - ---------------------------------------------------- James C. Swain Chairman--Centennial Money Market Trust /s/ Bridget A. Macaskill - ---------------------------------------------------- Bridget A. Macaskill President--Centennial Money Market Trust July 22, 1996 An investment in the Trust is neither insured nor guaranteed by the U.S. Government and there can be no assurance that the Trust will be able to maintain a stable net asset value of $1.00 per share. (1) Compounded yields assume reinvestment of dividends. Past performance is not indicative of future results. 2 4 STATEMENT OF INVESTMENTS June 30, 1996 Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ BANKERS' ACCEPTANCES - 0.4% Chase Manhattan Bank, N.A., 4.94%, 8/19/96 (Cost $24,831,903).............................................. $ 25,000,000 $ 24,831,903 ------------ CERTIFICATES OF DEPOSIT - 5.9% DOMESTIC CERTIFICATES OF DEPOSIT - 1.6% Bank of New York, 5.07%, 8/27/96 ............................ 15,000,000 15,000,000 LaSalle National Bank: 5%, 8/19/96 .............................................. 10,000,000 10,000,000 5%, 8/7/96 ............................................... 10,000,000 10,000,000 5.05%, 8/26/96 ........................................... 10,000,000 10,000,000 5.35%, 11/5/96 ........................................... 5,000,000 5,000,000 5.35%, 7/15/96 ........................................... 15,000,000 15,000,000 5.35%, 8/14/96 ........................................... 10,000,000 10,000,000 5.35%, 8/19/96 ........................................... 15,000,000 15,000,000 5.38%, 8/5/96 ............................................ 10,000,000 10,000,000 5.40%, 7/5/96 ............................................ 5,000,000 5,000,000 ------------ 105,000,000 ------------ EURODOLLAR CERTIFICATES OF DEPOSIT - 1.5% Abbey National PLC, 5.01%, 8/1/96 ........................... 15,000,000 15,000,379 Deutsche Bank: 5%, 8/12/96 .............................................. 20,000,000 19,999,385 5.10%, 8/23/96 ........................................... 19,000,000 19,000,273 Rabobank Nederland, 5.02%, 8/22/96 .......................... 20,000,000 19,999,155 Societe Generale, 5.10%, 7/26/96 ............................ 30,000,000 30,001,347 ------------ 104,000,539 ------------ YANKEE CERTIFICATES OF DEPOSIT - 2.8% ABN Amro Bank: 5.01%, 8/7/96 ............................................ 20,000,000 19,998,798 5.03%, 8/20/96 ........................................... 10,000,000 10,000,136 Deutsche Bank: 4.96%, 8/20/96 ........................................... 23,000,000 22,992,920 5.06%, 8/19/96 ........................................... 15,000,000 15,000,000 Dresdner Bank, 5.13%, 11/22/96 .............................. 20,000,000 19,964,757 Rabobank Nederland, 5.06%, 7/26/96 .......................... 20,000,000 20,000,097
3 5 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ YANKEE CERTIFICATES OF DEPOSIT - 2.8% (CONTINUED) Societe Generale: 5.05%, 8/23/96 ....................................................................... $ 15,000,000 $ 14,999,061 5.07%, 8/23/96 ....................................................................... 10,000,000 10,000,000 5.07%, 8/6/96 ........................................................................ 20,000,000 20,000,962 5.10%, 8/29/96 ....................................................................... 10,000,000 10,000,000 5.36%, 7/1/96 ........................................................................ 10,000,000 10,000,000 Swiss Bank Corp., 5.32%, 7/12/96 ........................................................ 15,000,000 15,000,000 ------------ 187,956,731 ------------ Total Certificates of Deposit (Cost $396,957,270) ....................................... 396,957,270 ------------ DIRECT BANK OBLIGATIONS - 12.7% ABN Amro Bank Canada, 5.31%, 8/7/96 ..................................................... 15,000,000 14,918,215 ABN Amro Bank North America Finance, Inc.: 4.89%, 8/6/96 ........................................................................ 15,000,000 14,926,650 4.90%, 7/8/96 ........................................................................ 30,000,000 29,971,417 4.93%, 8/5/96 ........................................................................ 10,000,000 9,952,069 5.10%, 7/24/96 ....................................................................... 12,350,000 12,309,760 5.35%, 11/12/96 ...................................................................... 15,000,000 14,701,403 Bank of Scotland Treasury Services PLC, 5.35%, 10/7/96 .................................. 40,000,000 39,417,444 Bank One, Cleveland, guaranteeing commercial paper of Capital One Funding Corp.: Series 1995F, 5.50%, 7/5/96(1)(2)(3) ................................................. 10,900,000 10,900,000 Series 1996C, 5.50%, 7/5/96(1)(2)(3) ................................................. 9,000,000 9,000,000 Barclays Bank PLC, guaranteeing commercial paper of: Banco Nacional de Mexico S.A., 5.36%, 10/7/96 ........................................ 15,000,000 14,781,133 Banco Nacional de Mexico S.A.-Series A, 4.96%, 7/17/96 ............................... 5,000,000 4,988,155 Banco Real S.A.-Grand Cayman Branch, 5.36%, 7/8/96 ................................... 19,250,000 19,231,434 Petroleo Brasileiro, S.A.-Petrobras, 4.96%, 8/5/96 ................................... 5,000,000 4,975,889 Petroleo Brasileiro, S.A.-Petrobras, 5.01%, 8/15/96 .................................. 15,000,000 14,906,062 Petroleo Brasileiro, S.A.-Petrobras, 5.18%, 7/19/96 .................................. 15,000,000 14,961,150 Petroleo Brasileiro, S.A.-Petrobras, 5.29%, 8/14/96 .................................. 10,000,000 9,935,344 Bayerische Vereinsbank AG, guaranteeing commercial paper of: Galicia Funding Corp.-Series B, 5.35%, 10/7/96(4) .................................... 12,000,000 11,825,233 COSCO (Cayman) Co., Ltd., 5.31%, 7/16/96 ................................................ 6,000,000 5,986,725 Credit Suisse, guaranteeing commercial paper of: Cemex, S.A. de C.V.-Series A, 5.30%, 8/21/96 ......................................... 15,000,000 14,887,375 Cemex, S.A. de C.V.-Series B, 5.32%, 7/22/96 ......................................... 10,000,000 9,968,967 Cemex, S.A. de C.V.-Series B, 5.35%, 7/10/96 ......................................... 18,000,000 17,975,925 Cemex, S.A. de C.V.-Series A, 5.31%, 7/25/96 ......................................... 10,000,000 9,964,600
4 6 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ DIRECT BANK OBLIGATIONS (CONTINUED) Cemex, S.A. de C.V.-Series A, 5.35%, 7/18/96 ... $ 10,000,000 $ 9,974,878 Daewoo International Corp., 5.05%, 8/29/96 ..... 10,000,000 9,917,236 Queensland Alumina Ltd., 5.30%, 7/26/96 ........ 15,000,000 14,944,792 Dresdner U.S. Finance, Inc.: 4.94%, 7/22/96 ................................. 11,650,000 11,616,429 5.03%, 8/26/96 ................................. 86,500,000 85,831,858 FCC National Bank: 5.36%, 12/27/96(1) ............................. 40,000,000 39,988,490 5.47%, 10/7/96 ................................. 10,000,000 10,000,000 First National Bank of Boston: 5.32%, 7/19/96 ................................. 15,000,000 15,000,000 5.35%, 7/3/96 .................................. 10,000,000 10,000,000 5.37%, 11/13/96(1) ............................. 7,000,000 6,998,947 5.53%, 9/16/96 ................................. 10,000,000 10,000,000 5.65%, 8/28/96(1) .............................. 15,000,000 15,000,000 5.88%, 10/30/96(1) ............................. 10,000,000 10,000,000 Huntington National Bank: 5.09%, 8/21/96 ................................. 10,000,000 10,000,000 5.33%, 7/10/96 ................................. 20,000,000 20,000,000 5.52%, 11/13/96(1) ............................. 15,000,000 15,000,000 5.33%, 8/29/96(1) .............................. 15,000,000 14,998,536 National Westminster Bank of Canada, 5.19%, 7/31/96 ........................................ 5,000,000 4,978,375 Societe Generale North America, Inc.: 4.89%, 8/8/96 .................................. 30,000,000 29,845,150 4.90%, 8/13/96 ................................. 30,000,000 29,824,417 4.92%, 8/23/96 ................................. 25,000,000 24,818,917 4.92%, 8/23/96 ................................. 10,000,000 9,927,567 4.95%, 8/21/96 ................................. 25,000,000 24,824,865 5.10%, 7/22/96 ................................. 10,000,000 9,970,250 Societe Generale, guaranteeing commercial paper of: Banco Nacional de Comercio Exterior, SNC: Series A, 5.17%, 7/15/96 ....................... 22,500,000 22,454,685 Series A, 5.20%, 7/10/96 ....................... 20,000,000 19,974,000 Series B, 5.20%, 7/11/96 ....................... 10,000,000 9,985,556 Series A, 5.20%, 7/16/96 ....................... 13,000,000 12,971,833 Series A, 5.37%, 10/7/96 ....................... 10,000,000 9,853,817 Nacionale Financiera, SNC: Series A, 5.30%, 8/28/96 ....................... 15,000,000 14,871,917 Series A, 5.35%, 8/27/96 ....................... 20,000,000 19,830,583 ------------ Total Direct Bank Obligations (Cost $863,888,048) .................................. 863,888,048 ------------
5 7 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ SHORT-TERM NOTES - 80.0% BANKS - 3.6% Barnett Banks, Inc., 5.36%, 7/1/96 ........... $ 84,000,000 $ 84,000,000 Chase Manhattan Bank, N.A., 5.36%, 10/4/96 ... 10,000,000 9,858,556 Chemical Banking Corp.: 4.90%, 7/15/96 ............................ 30,000,000 29,942,056 4.93%, 8/15/96 ............................ 10,000,000 9,938,375 CoreStates Capital Corp.: 5.40%, 10/25/96(1) ........................ 15,000,000 15,000,000 5.84%, 8/13/96(1) ......................... 15,000,000 15,000,000 Fleet Financial Group, Inc., 5.34%, 7/19/96 .. 25,000,000 24,933,250 J.P. Morgan Delaware, 5.02%, 9/6/96 .......... 7,900,000 7,826,192 NationsBank Corp.: 5.28%, 8/26/96 ............................ 10,000,000 9,917,867 5.31%, 7/31/96 ............................ 20,000,000 19,911,500 Societe Generale, 5.33%, 7/1/96 .............. 10,000,000 10,000,000 ------------ 236,327,796 ------------ BEVERAGES - 2.9% Coca-Cola Enterprises, Inc.: 5.30%, 7/9/96(4) .......................... 25,000,000 24,970,556 5.30%, 8/8/96(4) .......................... 35,000,000 34,803,772 5.30%, 9/4/96(4) .......................... 20,000,000 19,808,611 5.32%, 7/10/96(4) ......................... 10,500,000 10,486,035 5.32%, 7/3/96(4) .......................... 20,000,000 19,994,089 5.32%, 8/12/96(4) ......................... 15,000,000 14,906,900 5.35%, 8/5/96(4) .......................... 15,000,000 14,921,979 5.37%, 7/11/96(4) ......................... 45,000,000 44,932,917 5.40%, 7/12/96(4) ......................... 10,000,000 9,983,500 ------------ 194,808,359 ------------ BROADCASTING - 0.3% Walt Disney Co., 5.26%, 10/23/96 ............. 17,584,000 17,291,109 ------------
6 8 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ BROKER/DEALERS - 7.8% CS First Boston, Inc.: 5.10%, 7/12/96(4) ................... $ 10,000,000 $ 9,984,417 5.39%, 8/8/96 ....................... 30,000,000 29,829,317 5.41%, 7/31/96 ...................... 25,000,000 24,887,292 5.44%, 3/4/97(1)(2) ................. 20,000,000 20,000,000 5.55%, 1/21/97(1)(2) ................ 15,000,000 15,000,000 Dean Witter, Discover & Co.: 5.58%, 9/29/96(1) ................... 6,000,000 6,003,300 5.76%, 11/22/96(1) .................. 15,000,000 15,013,842 5.71%, 2/3/97(1) .................... 20,000,000 20,029,110 Merrill Lynch & Co., Inc.: 4.94%, 8/19/96 ...................... 25,000,000 24,831,903 4.95%, 8/28/96 ...................... 15,000,000 14,880,375 5.10%, 7/29/96 ...................... 16,000,000 15,936,533 5.21%, 7/3/96 ....................... 25,000,000 24,992,764 5.25%, 7/2/96 ....................... 15,000,000 14,997,812 5.31%, 7/17/96 ...................... 24,966,000 24,907,080 5.36%, 7/11/96 ...................... 48,000,000 47,928,367 5.36%, 7/8/96 ....................... 10,000,000 9,989,597 5.40%, 1/31/97(1) ................... 30,000,000 30,000,000 5.44%, 11/1/96(1) ................... 15,000,000 15,000,000 5.45%, 9/19/96(1) ................... 20,000,000 20,000,000 5.47%, 10/24/96(1) .................. 15,000,000 15,000,000 Morgan Stanley Group, Inc.: 4.91%, 9/20/96 ...................... 7,000,000 6,922,667 5.12%, 7/26/96 ...................... 25,000,000 24,911,111 5.21%, 7/15/96 ...................... 10,000,000 9,979,739 5.27%, 9/30/96(1) ................... 33,600,000 33,600,000 5.30%, 7/12/96 ...................... 15,000,000 14,975,708 5.62%, 7/1/96 ....................... 37,250,000 37,250,000 ------------ 526,850,934 ------------ BUILDING MATERIALS - 0.4% Compagnie de Saint Gobain: 4.98%, 8/29/96 ...................... 10,000,000 9,918,465 5.01%, 9/5/96 ....................... 5,000,000 4,954,075 Redland Finance, 5.35%, 7/12/96 ........ 12,000,000 11,980,383 ------------ 26,852,923 ------------
7 9 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ----------- ----------- CHEMICALS - 0.4% Monsanto Co., 4.93%, 8/9/96 ............ $25,000,000 $24,866,479 ----------- COMMERCIAL FINANCE - 16.8% CIT Group Holdings, Inc.: 5.30%, 7/31/96 ...................... 33,330,000 33,182,792 5.31%, 9/26/96(1) ................... 25,000,000 24,995,757 5.32%, 8/2/96 ....................... 15,000,000 14,929,067 5.35%, 5/1/97(1) .................... 35,000,000 34,966,696 5.35%, 6/11/97(1) ................... 15,000,000 14,983,164 5.55%, 11/18/96(1) .................. 20,000,000 19,992,391 6.02%, 7/10/96(1)(3) ................ 11,000,000 11,000,000 Countrywide Home Loan: 5.32%, 7/24/96 ...................... 50,000,000 49,830,056 5.32%, 7/25/96 ...................... 29,000,000 28,896,120 5.32%, 8/12/96 ...................... 20,000,000 19,875,867 5.32%, 8/23/96 ...................... 10,000,000 9,921,678 5.35%, 7/17/96 ...................... 30,000,000 29,928,667 5.35%, 7/3/96 ....................... 47,000,000 46,986,031 5.36%, 7/22/96 ...................... 30,000,000 29,906,200 5.38%, 7/12/96 ...................... 25,000,000 24,958,750 5.38%, 7/8/96 ....................... 45,000,000 44,952,828 5.40%, 7/11/96 ...................... 25,000,000 24,962,361 5.42%, 8/9/96 ....................... 20,000,000 19,882,567 FINOVA Capital Corp.: 4.97%, 8/30/96 ...................... 10,000,000 9,917,167 5.36%, 8/5/96 ....................... 15,000,000 14,921,833 5.37%, 8/14/96 ...................... 37,500,000 37,253,417 5.38%, 7/25/96 ...................... 15,000,000 14,946,200 5.39%, 9/5/96 ....................... 15,000,000 14,851,775 5.40%, 2/21/97(1) ................... 35,000,000 35,000,000 5.40%, 7/10/96 ...................... 30,000,000 29,959,387 5.40%, 7/19/96 ...................... 10,000,000 9,973,000 5.40%, 7/22/96 ...................... 20,000,000 19,937,000 5.40%, 7/30/96 ...................... 15,000,000 14,934,992 5.41%, 8/16/96 ...................... 36,000,000 35,751,217 5.42%, 7/26/96 ...................... 8,000,000 7,969,889 5.43%, 7/15/96 ...................... 25,000,000 24,947,208
8 10 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 -------------- -------------- COMMERCIAL FINANCE (CONTINUED) 5.45%, 7/18/96 ................................................................. $ 20,000,000 $ 19,948,528 5.45%, 7/9/96 .................................................................. 10,000,000 9,987,889 5.45%, 9/3/96 .................................................................. 23,000,000 22,779,200 5.49%, 8/9/96 .................................................................. 5,000,000 4,970,235 5.52%, 8/26/96 ................................................................. 3,000,000 2,974,240 Fleet Mortgage Group, Inc., 5.55%, 11/20/96(1) .................................... 10,000,000 9,997,104 Heller Financial, Inc.: 5.38%, 7/26/96 ................................................................. 20,000,000 19,925,278 5.39%, 7/15/96 ................................................................. 10,000,000 9,979,039 5.40%, 7/25/96 ................................................................. 20,000,000 19,928,000 5.41%, 7/11/96 ................................................................. 50,000,000 49,924,778 5.42%, 9/30/96(1) .............................................................. 10,000,000 10,000,315 5.47%, 10/4/96(1) .............................................................. 27,000,000 26,995,883 5.47%, 10/7/96(1) .............................................................. 20,000,000 19,999,546 5.48%, 8/15/96 ................................................................. 5,000,000 4,965,750 5.50%, 10/7/96(1) .............................................................. 10,000,000 9,998,317 5.50%, 10/7/96(1) .............................................................. 12,000,000 12,000,000 5.50%, 3/31/97(1) .............................................................. 7,500,000 7,510,443 5.51%, 8/28/96(1) .............................................................. 20,000,000 20,000,000 5.55%, 6/2/97(1) ............................................................... 20,000,000 19,994,267 5.66%, 1/15/97(1) .............................................................. 10,000,000 10,007,331 5.67%, 3/28/97(1) .............................................................. 30,000,000 30,006,770 5.70%, 12/1/96(1) .............................................................. 20,970,000 20,981,858 5.98%, 10/1/96(1) .............................................................. 20,000,000 20,000,000 -------------- 1,137,388,848 -------------- COMPUTER SOFTWARE - 0.8% First Data Corp.: 5.37%, 7/15/96 ................................................................. 20,000,000 19,958,233 5.38%, 7/2/96 .................................................................. 13,000,000 12,998,057 5.38%, 9/3/96 .................................................................. 20,000,000 19,808,711 -------------- 52,765,001 -------------- CONGLOMERATES - 0.5% Mitsubishi International Corp.: 5.23%, 7/5/96 .................................................................. 5,000,000 4,997,094 5.37%, 9/30/96 ................................................................. 6,301,000 6,215,549 Pacific Dunlop Holdings, Inc., guaranteed by Pacific Dunlop Ltd., 5.66%, 1/17/97(1) ..................................................................... 20,000,000 20,010,556 -------------- 31,223,199 --------------
9 11 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ CONSUMER FINANCE - 3.0% American Express Credit Corp.: 4.92%, 8/23/96 ................................ $ 15,000,000 $ 14,891,350 5.10%, 7/19/96 ................................ 20,000,000 19,949,000 5.22%, 7/3/96 ................................. 15,000,000 14,995,550 5.22%, 7/8/96 ................................. 18,000,000 17,981,275 5.30%, 10/28/96 ............................... 10,000,000 9,824,806 Commercial Credit Co., 8%, 9/1/96 ................ 5,000,000 5,019,167 Island Finance Puerto Rico, Inc.: 5.31%, 7/10/96 ................................ 20,000,000 19,973,450 5.31%, 7/8/96 ................................. 15,000,000 14,984,512 5.40%, 8/12/96 ................................ 20,300,000 20,172,110 5.45%, 8/2/96 ................................. 5,500,000 5,473,356 Sears Roebuck Acceptance Corp.: 5.10%, 7/1/96 ................................. 40,000,000 40,000,000 5.36%, 7/10/96 ................................ 16,800,000 16,777,488 ------------ 200,042,064 ------------ DIVERSIFIED FINANCIAL - 7.1% Associates Corp. of North America, 5.60%, 7/1/96 ........................................ 10,000,000 10,000,000 Ford Motor Credit Co.: 5.31%, 7/12/96 ................................ 10,000,000 9,983,775 5.31%, 7/2/96 ................................. 10,000,000 9,998,525 5.35%, 10/3/96 ................................ 20,000,000 19,720,611 5.36%, 10/7/96 ................................ 15,000,000 14,781,133 8.88%, 8/1/96 ................................. 5,500,000 5,516,613 General Electric Capital Corp.: 4.92%, 8/22/96 ................................ 35,000,000 34,751,267 4.94%, 8/19/96 ................................ 10,000,000 9,932,761 4.94%, 8/21/96 ................................ 12,000,000 11,916,020 5.15%, 7/15/96 ................................ 20,000,000 19,959,944 5.24%, 7/2/96 ................................. 10,000,000 9,998,544 5.36%, 10/4/96 ................................ 30,000,000 29,575,667 5.39%, 8/6/96 ................................. 12,600,000 12,532,086 General Electric Capital Services, 5.28%, 10/28/96 ...................................... 20,000,000 19,650,933
10 12 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ DIVERSIFIED FINANCIAL (CONTINUED) General Motors Acceptance Corp.: 5.33%, 7/12/96 .................................................... $ 40,000,000 $ 39,934,856 5.39%, 10/2/96 .................................................... 15,000,000 14,791,137 5.39%, 7/2/96 ..................................................... 25,000,000 24,996,257 5.40%, 7/5/96 ..................................................... 25,000,000 24,985,000 5.42%, 11/8/96 .................................................... 10,000,000 9,804,278 5.42%, 8/19/96 .................................................... 8,000,000 7,940,982 5.43%, 8/12/96 .................................................... 9,500,000 9,439,817 5.64%, 7/1/96 ..................................................... 40,000,000 40,000,000 5.66%, 8/19/96(1) ................................................. 30,000,000 29,999,789 5.67%, 7/19/96(1) ................................................. 23,300,000 23,299,998 8.25%, 8/1/96 ..................................................... 8,400,000 8,419,869 8.63%, 7/15/96 .................................................... 10,000,000 10,011,847 Household Finance Corp., 5.28%, 8/19/96 .............................. 10,000,000 9,928,133 Prudential Funding Corp., 5.06%, 7/8/96 .............................. 10,000,000 9,990,161 ------------ 481,860,003 ------------ DRUG WHOLESALERS - 1.1% Glaxo Wellcome PLC: 5.28%, 8/16/96(4) ................................................. 8,000,000 7,946,027 5.28%, 8/22/96(4) ................................................. 14,000,000 13,893,227 5.29%, 7/26/96(4) ................................................. 40,000,000 39,852,892 5.30%, 7/12/96(4) ................................................. 5,000,000 4,991,903 5.35%, 7/8/96(4) .................................................. 9,200,000 9,190,429 ------------ 75,874,478 ------------ ELECTRIC UTILITIES - 0.4% Vattenfall Treasury, Inc. guaranteed by Vattenfall AB, 5.35%, 10/16/96............................................................. 30,000,000 29,522,958 ------------- ELECTRICAL EQUIPMENT - 0.4% Xerox Corp.: 4.93%, 8/19/96 .................................................... 10,000,000 9,932,897 5.30%, 7/26/96 .................................................... 15,000,000 14,944,792 ------------ 24,877,689 ------------
11 13 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------ ---------- ELECTRONICS-1.8% Avnet, Inc., 5.30%, 7/18/96 ................... $ 10,000,000 $ 9,974,972 ITT Industries, Inc.: 5.31%, 7/12/96(4) .......................... 20,000,000 19,967,306 5.35%, 7/22/96(4) .......................... 10,000,000 9,968,792 5.40%, 7/8/96(4) ........................... 7,000,000 6,992,650 Mitsubishi Electric Finance America, Inc.: 5.12%, 7/24/96(4) .......................... 12,000,000 11,960,747 5.30%, 8/21/96(4) .......................... 10,000,000 9,924,917 5.35%, 7/31/96(4) .......................... 25,000,000 24,888,542 5.41%, 8/7/96(4) ........................... 8,000,000 7,955,518 Panasonic Finance, Inc.: 5.28%, 8/23/96(4) .......................... 11,277,000 11,189,340 5.28%, 8/8/96(4) ........................... 10,000,000 9,944,267 ------------ 122,767,051 ------------ ENERGY SERVICES & PRODUCERS-0.4% Union Pacific Resources Group, Inc.: 5.34%, 7/11/96(4) .......................... 10,000,000 9,985,167 5.35%, 7/9/96(4) ........................... 15,700,000 15,681,334 ------------ 25,666,501 ------------ ENVIRONMENTAL-1.9% WMX Technologies, Inc.: 4.90%, 11/15/96(4) ......................... 12,600,000 12,365,045 5.10%, 8/16/96(4) .......................... 20,000,000 19,869,667 5.21%, 7/11/96(4) .......................... 15,000,000 14,977,792 5.22%, 7/9/96(4) ........................... 20,000,000 19,976,311 5.32%, 9/10/96(4) .......................... 10,000,000 9,895,078 5.35%, 10/15/96(4) ......................... 15,000,000 14,763,708 5.35%, 7/18/96(4) .......................... 20,000,000 19,949,472 5.36%, 7/16/96(4) .......................... 8,700,000 8,680,715 5.38%, 8/12/96(4) .......................... 10,000,000 9,937,233 ------------ 130,415,021 ------------ HEALTHCARE/DRUGS-0.4% Sandoz Corp.: 5.28%, 7/25/96(4) .......................... 10,000,000 9,964,767 5.30%, 7/17/96 ............................. 20,000,000 19,952,889 ------------ 29,917,656 ------------
12 14 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 ------------ ------------ HEALTHCARE/SUPPLIES & SERVICES-1.7% A.H. Robins Co., Inc., guaranteed by American Home Products: 5.32%, 7/26/96(4) ....................................... $ 40,000,000 $ 39,851,181 5.42%, 8/21/96(4) ....................................... 15,000,000 14,884,825 American Home Products, 5.32%, 7/26/96(4) .................. 40,000,000 39,852,222 Sherwood Medical Co., guaranteed by American Home Products: 5.31%, 8/2/96(4) ........................................ 13,447,000 13,383,530 5.43%, 7/19/96(4) ....................................... 5,000,000 4,986,425 ------------ 112,958,183 ------------ INDUSTRIAL SERVICES-0.4% Atlas Copco AB: 5.02%, 9/3/96(4) ........................................ 8,000,000 7,928,604 5.32%, 10/30/96(4) ...................................... 5,000,000 4,910,594 PHH Corp., 5.45%, 3/26/97(1) ............................... 15,000,000 14,993,554 ------------ 27,832,752 ------------ INSURANCE-5.1% Allstate Life Insurance Co., 5.44%, 7/1/96(1)(2)(3) ........ 40,000,000 40,000,000 General American Life Insurance Co., 6%, 7/1/96(1)(2)(3) ... 50,000,000 50,000,000 Jackson National Life, 5.46%, 7/1/96(1)(2)(3) .............. 40,000,000 40,000,000 Pacific Mutual Life Insurance Co., 5.57%, 2/14/97(1)(2)(3) . 25,000,000 25,000,000 Protective Life Insurance Co., 5.59%, 7/1/96(1)(2)(3) ...... 10,000,000 10,000,000 TransAmerica Life Insurance & Annuity Co.: 5.44%, 10/15/96(1)(2)(3) ................................ 50,000,000 50,000,000 5.44%, 9/27/96(1)(2)(3) ................................. 25,000,000 25,000,000 5.44%, 9/30/96(1)(2)(3) ................................. 30,000,000 30,000,000 5.52%, 8/1/96(1)(2)(3) .................................. 43,000,000 43,000,000 5.52%, 7/10/96(1)(2)(3) ................................. 30,000,000 30,000,000 ------------ 343,000,000 ------------ LEASING & FACTORING-3.6% CSW Credit, Inc.: 5.30%, 7/19/96 .......................................... 17,300,000 17,254,155 5.31%, 7/8/96 ........................................... 15,100,000 15,084,409 5.42%, 8/12/96 .......................................... 20,200,000 20,072,269
13 15 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 -------- --------- LEASING & FACTORING-3.6% (CONTINUED) International Lease Finance Corp.: 5.27%, 8/2/96 ............................................... $ 25,000,000 $ 24,882,889 5.28%, 8/13/96 .............................................. 20,000,000 19,873,867 5.28%, 8/15/96 .............................................. 33,750,000 33,527,250 5.30%, 7/8/96 ............................................... 35,000,000 34,963,931 5.35%, 7/12/96 .............................................. 30,600,000 30,550,351 The Hertz Corp.: 5.20%, 7/12/96 .............................................. 15,000,000 14,976,167 5.31%, 7/17/96 .............................................. 30,000,000 29,929,200 ------------ 241,114,488 ------------ MANUFACTURING-0.5% Rexam PLC: 5.30%, 7/24/96(4) ........................................... 23,115,000 23,036,730 5.35%, 7/1/96(4) ............................................ 10,000,000 10,000,000 ------------ 33,036,730 ------------ METALS/MINING-0.6% English China Clays PLC, 5.30%, 7/8/96(4) ...................... 15,700,000 15,683,804 RTZ America, Inc., guaranteed by RTC Corp. PLC, 5.35%, 7/8/96(4) ................................................... 27,000,000 26,971,912 ------------ 42,655,716 ------------ NONDURABLE HOUSEHOLD GOODS-0.5% Colgate-Palmolive Co., 5.20%, 9/23/96(4) ....................... 35,000,000 34,575,508 ------------ SAVINGS & LOANS-1.5% Great Western Bank FSB, 5.32%, 7/12/96 ......................... 25,000,000 24,959,361 Household Bank FSB: 5.35%, 8/15/96 .............................................. 25,000,000 24,999,691 5.39%, 8/7/96 ............................................... 10,000,000 10,000,000 5.39%, 9/27/96(1) ........................................... 45,000,000 44,997,169 ------------ 104,956,221 ------------ SPECIAL PURPOSE FINANCIAL-13.5% Asset-Securitization Cooperative: 5.28%, 7/12/96(4) ........................................... 15,000,000 14,975,800 5.30%, 7/18/96(4) ........................................... 25,000,000 24,937,431 5.30%, 7/23/96(4) ........................................... 20,000,000 19,935,222 5.31%, 7/17/96(4) ........................................... 15,000,000 14,964,600 5.31%, 7/31/96(4) ........................................... 8,665,000 8,626,657 5.41%, 8/19/96(4) ........................................... 25,000,000 24,815,910
14 16 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 -------- --------- SPECIAL PURPOSE FINANCIAL-13.5% CIESCO L.P.: 5.35%, 7/11/96 ................................................... $10,000,000 $ 9,985,139 5.42%, 5/19/97(1)(4) ............................................. 17,000,000 16,997,422 Cooperative Association of Tractor Dealers, Inc.: 5%, 8/22/96 ...................................................... 6,300,000 6,250,405 5.08%, 7/2/96 .................................................... 12,000,000 11,998,248 5.17%, 7/15/96 ................................................... 7,000,000 6,985,926 Corporate Asset Funding Co., Inc.: 5%, 9/3/96 ....................................................... 10,100,000 10,010,222 5.27%, 9/12/96 ................................................... 25,000,000 24,732,840 CXC, Inc.: 5.32%, 8/5/96(4) ................................................. 30,000,000 29,844,833 5.32%, 9/13/96(4) ................................................ 25,000,000 24,726,611 5.35%, 7/1/96(4) ................................................. 25,000,000 25,000,000 5.35%, 7/11/96(4) ................................................ 6,300,000 6,290,637 5.39%, 8/20/96(4) ................................................ 25,000,000 24,812,847 5.40%, 8/22/96(4) ................................................ 44,000,000 43,656,800 Falcon Asset Securitization Corp.: 5.31%, 8/7/96(4) ................................................. 15,100,000 15,017,592 5.35%, 7/10/96(4) ................................................ 9,200,000 9,187,695 5.41%, 7/25/96(4) ................................................ 12,860,000 12,813,618 First Deposit Master Trust 1993-3: 5.10%, 8/8/96(4) ................................................. 5,000,000 4,973,083 5.33%, 7/25/96(4) ................................................ 5,000,000 4,982,233 5.42%, 8/12/96(4) ................................................ 15,400,000 15,302,621 Fleet Funding Corp.: 5.35%, 7/8/96(4) ................................................. 19,900,000 19,879,298 5.37%, 7/12/96(4) ................................................ 21,268,000 21,233,103 New Center Asset Trust: 5.29%, 8/5/96 .................................................... 15,000,000 14,922,854 5.36%, 7/12/96 ................................................... 20,000,000 19,967,244 5.37%, 9/12/96 ................................................... 25,000,000 24,727,771 Sheffield Receivables Corp.: 5.28%, 7/1/96 .................................................... 27,685,000 27,685,000 5.35%, 7/11/96(4) ................................................ 19,200,000 19,171,467 5.35%, 7/8/96 .................................................... 39,360,000 39,318,936 Short-Term Card Account Trust 1995-1, Class A1, 5.51%, 1/15/97(1)(2) .................................................... 25,000,000 25,000,000
15 17 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 -------- ---------- SPECIAL PURPOSE FINANCIAL (CONTINUED) SMM Trust: 1995-I, 5.48%, 5/29/97(1)(2) ........................................ $ 35,000,000 $ 35,000,000 1995-B, 5.49%, 8/2/96(1)(2) ......................................... 20,000,000 20,000,000 1995-B, 5.91%, 11/15/96(1)(2) ....................................... 10,000,000 10,000,000 1996-V, 5.62%, 3/26/97(1)(2) ........................................ 20,000,000 20,000,000 Structured Enhanced Return Trust 1993 Series A-02, 5.54%, 11/18/96(1)(2) ...................................................... 10,000,000 10,000,000 WCP Funding: 5.30%, 7/25/96(4) ................................................... 30,000,000 29,894,000 5.30%, 7/26/96(4) ................................................... 20,000,000 19,926,389 5.31%, 7/12/96(4) ................................................... 25,000,000 24,959,437 5.34%, 7/2/96(4) .................................................... 25,000,000 24,996,292 5.35%, 7/10/96(4) ................................................... 20,000,000 19,973,250 5.35%, 7/11/96(4) ................................................... 12,000,000 11,982,167 5.40%, 8/21/96(4) ................................................... 50,000,000 49,617,500 5.42%, 8/16/96(4) ................................................... 15,000,000 14,896,117 -------------- 914,975,217 -------------- SPECIALTY RETAILING-0.5% St. Michael Finance Ltd., guaranteed by Marks & Spencer PLC: 5.03%, 8/29/96 ...................................................... 10,000,000 9,918,056 5.28%, 8/20/96 ...................................................... 15,000,000 14,890,000 5.31%, 8/28/96 ...................................................... 6,739,000 6,681,348 -------------- 31,489,404 -------------- TELECOMMUNICATIONS-TECHNOLOGY-1.0% NYNEX Corp.: 5.33%, 7/12/96 ...................................................... 26,600,000 26,556,679 5.33%, 8/14/96 ...................................................... 15,000,000 14,902,283 5.35%, 7/29/96 ...................................................... 15,000,000 14,937,583 5.38%, 8/5/96 ....................................................... 10,000,000 9,947,694 -------------- 66,344,239 -------------- TELEPHONE UTILITIES-1.1% GTE Corp.: 5.37%, 7/18/96 ...................................................... 6,400,000 6,383,771 5.37%, 7/8/96 ....................................................... 31,890,000 31,856,701 5.40%, 7/10/96 ...................................................... 37,000,000 36,950,050 -------------- 75,190,522 -------------- Total Short-Term Notes (Cost $5,397,447,049) ........................... 5,397,447,049 --------------
16 18 STATEMENT OF INVESTMENTS June 30, 1996 (Continued) Centennial Money Market Trust
Face Value Amount See Note 1 -------- ---------- U.S. GOVERNMENT OBLIGATIONS-0.3% U.S. Treasury Bills, 4.87%, 8/15/96 (Cost $19,878,375) .......................... $ 20,000,000 $ 19,878,375 --------------- FOREIGN GOVERNMENT OBLIGATIONS-1.3% Bayerische Landesbank Girozentrale: 5.06%, 8/27/96 ............................................................... 25,000,000 25,000,000 5.07%, 8/21/96 ............................................................... 25,000,000 25,000,346 Finnish Export Credit, Ltd., supported by the Republic of Finland, 5.08%, 7/26/96 ...................................................................... 15,000,000 14,947,083 Unibanco-Uniao de Brancos Brasileiros SA-Grand Cayman, guaranteed by Westdeutsche Landesbank Girozentrale, 5.37%, 7/5/96 ............ 25,000,000 24,985,083 --------------- Total Foreign Government Obligations (Cost $89,932,512) ......................... 89,932,512 --------------- Total Investments, at Value ..................................................... 100.6% 6,792,935,157 --------------- --------------- Liabilities in Excess of Other Assets ........................................... (0.6) (40,051,124) --------------- --------------- Net Assets ...................................................................... 100.0% $ 6,752,884,033 ================ ================
Short-term notes, bankers' acceptances, and direct bank obligations are generally traded on a discount basis; the interest rate is the discount rate received by the Trust at the time of purchase. Other securities normally bear interest at the rates shown. 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 June 30, 1996. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice. Maturity date shown represents effective maturity based on variable rate and, if applicable, demand feature. 2. Restricted securities amount to $517,900,000, or 7.67% of the Trust's net assets, at June 30, 1996. In addition to being restricted, the security may be considered illiquid by virtue of the absence of a readily available market or because of legal or contractual restrictions on resale. Illiquid securities amount to $190,000,000, or 2.81% of the Trust's net assets, at June 30, 1996. The Trust may not invest more than 10% of its net assets (determined at the time of purchase) in illiquid securities. 3. Put obligation redeemable at full face value on the date reported. 4. Security issued in an exempt transaction without registration under the Securities Act of 1933 (the Act). The securities are carried at amortized cost, and amount to $1,405,786,822, or 20.82% of the Trust's net assets. See accompanying Notes to Financial Statements. 17 19 STATEMENT OF ASSETS AND LIABILITIES June 30, 1996 Centennial Money Market Trust ASSETS: Investments, at value-see accompanying statement ............. $6,792,935,157 Cash ......................................................... 208,823 Receivables: Shares of beneficial interest sold .......................... 27,411,186 Interest .................................................... 18,308,069 Securities sold ............................................. 6,800,000 Other ........................................................ 43,878 -------------- Total assets ............................................... 6,845,707,113 -------------- LIABILITIES: Payables and other liabilities: Shares of beneficial interest redeemed ...................... 81,487,588 Dividends ................................................... 8,884,619 Transfer and shareholder servicing agent fees ............... 721,994 Service plan fees ........................................... 377,260 Shareholder reports ......................................... 347,170 Trustees' fees .............................................. 3,120 Other ....................................................... 1,001,329 -------------- Total liabilities .......................................... 92,823,080 NET ASSETS ................................................... $6,752,884,033 ============== COMPOSITION OF NET ASSETS: Paid-in capital .............................................. $6,752,559,664 Accumulated net realized gain on investment transactions ..... 324,369 -------------- NET ASSETS-applicable to 6,752,559,664 shares of beneficial interest outstanding ...................................... $6,752,884,033 ============== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE ..................................................... $ 1.00
See accompanying Notes to Financial Statements. 18 20 STATEMENT OF OPERATIONS For the Year Ended June 30, 1996 Centennial Money Market Trust
INVESTMENT INCOME-Interest ........................... $345,130,867 ------------ EXPENSES: Management fees-Note 3 ............................... 21,572,513 Service plan fees-Note 3 ............................. 12,171,435 Transfer and shareholder servicing agent fees - Note 3 ............................................. 5,648,855 Registration and filing fees ......................... 1,002,403 Custodian fees and expenses .......................... 625,400 Shareholder reports .................................. 590,603 Trustees' fees and expenses .......................... 20,804 Other ................................................ 86,307 ------------ Total expenses ..................................... 41,718,320 ------------ NET INVESTMENT INCOME ................................ 303,412,547 NET REALIZED GAIN ON INVESTMENTS ..................... 265,465 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......................................... $303,678,012 ============
=============================================================================== STATEMENTS OF CHANGES IN NET ASSETS Centennial Money Market Trust
Year Ended June 30, 1996 1995 ---- ---- OPERATIONS: Net investment income ....................................... $ 303,412,547 $ 167,484,276 Net realized gain ........................................... 265,465 431,897 --------------- --------------- Net increase in net assets resulting from operations ........ 303,678,012 167,916,173 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS ................. (303,849,237) (167,484,999) BENEFICIAL INTEREST TRANSACTIONS Net increase in net assets resulting from beneficial interest transactions-Note 2 ...................................... 1,940,862,519 2,252,373,243 --------------- --------------- NET ASSETS: Total increase .............................................. 1,940,691,294 2,252,804,417 Beginning of period ......................................... 4,812,192,739 2,559,388,322 --------------- --------------- End of period ............................................... $ 6,752,884,033 $ 4,812,192,739 =============== ===============
See accompanying Notes to Financial Statements. 19 21 FINANCIAL HIGHLIGHTS Centennial Money Market Trust
Year Ended June 30, ------------------------------------------------------------------------------- 1996 1995 1994 1993 1992 ---- ---- ---- ---- ---- PER SHARE OPERATING DATA: Net asset value, beginning of period ................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from investment operations-net investment income and net realized gain .............. .05 .05 .03(1) .03(1) .04(1) Dividends and distributions to shareholders... (.05) (.05) (.03) (.03) (.04) --------- --------- --------- --------- --------- Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========= ========= ========= ========= ========= TOTAL RETURN, AT NET ASSET VALUE(2) ........................ 5.11% 5.21% 2.82% 2.91% 4.73% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in millions) ...... $ 6,753 $ 4,812 $ 2,559 $ 1,991 $ 1,270 Average net assets (in millions) ............. $ 6,077 $ 3,342 $ 2,346 $ 1,701 $ 821 RATIOS TO AVERAGE NET ASSETS: Net investment income ........................ 4.99% 5.01% 2.84% 2.82% 4.31% Expenses ..................................... 0.69% 0.73% 0.76%(1) 0.78%(1) 0.69%(1)
1. Net investment income would have been $.03, $.03 and $.04 per share absent the voluntary expense limitation, resulting in an expense ratio of 0.81%, 0.83%, and 0.81% for the years ended June 30, 1994, 1993 and 1992, respectively. 2. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods of less than one full year. Total returns reflect changes in net investment income only. See accompanying Notes to Financial Statements. 20 22 NOTES TO FINANCIAL STATEMENTS 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 a diversified, 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. Investment Valuation-Portfolio securities are valued on the basis of amortized cost, which approximates market value. Federal Taxes-The Trust intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. Therefore, no federal income or excise tax provision is required. Distributions to Shareholders-The Trust intends to declare dividends from net investment income each day the New York Stock Exchange is open for business and pay such dividends monthly. To effect its policy of maintaining a net asset value of $1.00 per share, the Trust may withhold dividends or make distributions of net realized gains. Other-Investment transactions are accounted for on the date the investments are purchased or sold (trade date). Realized gains and losses on investments are determined on an identified cost basis, which is the same basis used for federal income tax purposes. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 21 23 NOTES TO FINANCIAL STATEMENTS (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:
Year Ended June 30, 1996 Year Ended June 30, 1995 ---------------------------------------- ---------------------------------------- Shares Amount Shares Amount ------ ------ ------ ------ Sold ...................... 21,158,638,888 $ 21,158,638,888 14,974,552,413 $ 14,974,552,413 Dividends and distributions reinvested .............. 297,883,433 297,883,433 156,243,456 156,243,456 Redeemed .................. (19,515,659,802) (19,515,659,802) (12,878,422,626) (12,878,422,626) ---------------- ---------------- ---------------- ---------------- Net increase .............. 1,940,862,519 $ 1,940,862,519 2,252,373,243 $ 2,252,373,243 ================ ================ ================ ================
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust which provides for a fee of 0.50% on the first $250 million of average annual net assets with a reduction of 0.025% on each $250 million thereafter, to 0.40% on net assets in excess of $1 billion. The Manager has agreed to reimburse the Trust if aggregate expenses (with specified exceptions) exceed the lesser of 1.5% of the first $30 million of average annual net assets of the Trust, plus 1% of average annual net assets in excess of $30 million; or 25% of the total annual investment income of the Trust. Independent of the investment advisory agreement, the Manager has voluntarily agreed to waive a portion of the management fee otherwise payable to it by the Trust to the extent necessary to: (a) permit the Trust to have a seven-day yield equal to that of Daily Cash Accumulation Fund, Inc., and (b) to reduce, on an annual basis, the management fee paid on the average net assets of the Trust in excess of $1 billion from 0.40% to: 0.40% of average net assets in excess of $1 billion but less than $1.25 billion; 0.375% of average net assets in excess of $1.25 billion but less than $1.50 billion; 0.35% of average net assets in excess of $1.50 billion but less than $2 billion; and 0.325% of average net assets in excess of $2 billion. This undertaking became effective as of December 1, 1991, and may be modified or terminated by the Manager at any time. Shareholder Services, Inc. (SSI), a subsidiary of OFI, is the transfer and shareholder servicing agent for the Trust, and for other registered investment companies. SSI's total costs of providing such services are allocated ratably to these companies. Under an approved service plan, the Trust may expend up to 0.20% of its net assets annually to reimburse certain securities dealers and other financial institutions and organizations for costs incurred in distributing Trust shares. 22 24 INDEPENDENT AUDITORS' REPORT Centennial Money Market Trust The Board of Trustees and Shareholders of Centennial Money Market Trust: We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Centennial Money Market Trust as of June 30, 1996, the related statement of operations for the year then ended, the statements of changes in net assets for the years ended June 30, 1996 and 1995, and the financial highlights for the period July 1, 1991 to June 30, 1996. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at June 30, 1996 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of Centennial Money Market Trust at June 30, 1996, the results of its operations, the changes in its net assets, and the financial highlights for the respective stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado July 22, 1996 - -------------------------------------------------------------------------------- FEDERAL INCOME TAX INFORMATION (Unaudited) Centennial Money Market Trust In early 1997, shareholders will receive information regarding all dividends and distributions paid to them by the Trust during calendar year 1996. Regulations of the U.S. Treasury Department require the Trust to report this information to the Internal Revenue Service. None of the dividends paid by the Trust during the fiscal year ended June 30, 1996 are eligible for the corporate dividend-received deduction. The foregoing information is presented to assist shareholders in reporting distributions received from the Trust to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. 23 25 CENTENNIAL MONEY MARKET TRUST Officers and Trustees James C. Swain, Chairman and Chief Executive Officer Bridget A. Macaskill, Trustee and President Robert G. Avis, Trustee William A. Baker, Trustee Charles Conrad, Jr., Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Ned M. Steel, Trustee George C. Bowen, Vice President, Treasurer and Assistant Secretary Andrew J. Donohue, Vice President and Secretary Dorothy G. Warmack, Vice President Carol E. Wolf, Vice President Arthur J. Zimmer, Vice President Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary Investment Advisor and Distributor Centennial Asset Management Corporation Transfer and Shareholder Servicing Agent Shareholder Services, Inc. Custodian of Portfolio Securities Citibank, N.A. Independent Auditors Deloitte & Touche LLP Legal Counsel Myer, Swanson, Adams & Wolf, P.C. This is a copy of a report to shareholders of Centennial Money Market Trust. This report must be preceded or accompanied by a Prospectus of Centennial Money Market Trust. For material information concerning the Trust, see the Prospectus. For shareholder servicing call: 1-800-525-9310 (in U.S.) 303-671-3200 (outside U.S.) Or write: Shareholder Services, Inc. P.O. Box 5143 Denver, CO 80217-5143 [LOGO]Printed on recycled paper -----END PRIVACY-ENHANCED MESSAGE-----