-----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, QIAzCb5lLcaI5TufxEjfyKIokHGjHBor3ahNY1w/8UDtZnadDxlQ6t2dauBdgKHK ke5vhZfNBi1+xfM7LjEk1g== 0000950123-97-001798.txt : 19970303 0000950123-97-001798.hdr.sgml : 19970303 ACCESSION NUMBER: 0000950123-97-001798 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970228 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTENNIAL TAX EXEMPT TRUST /CO/ CENTRAL INDEX KEY: 0000319880 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 222328954 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03104 FILM NUMBER: 97547600 BUSINESS ADDRESS: STREET 1: TWO WORLD TRADE CENTER STREET 2: 34TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10048 BUSINESS PHONE: 303-761-3200 FORMER COMPANY: FORMER CONFORMED NAME: DAILY CASH TAX EXEMPT FUND INC DATE OF NAME CHANGE: 19851009 FORMER COMPANY: FORMER CONFORMED NAME: CENTENNIAL TAX EXEMPT CASH FUND INC DATE OF NAME CHANGE: 19820720 FORMER COMPANY: FORMER CONFORMED NAME: DAILY TAX EXEMPT CASH FUND INC DATE OF NAME CHANGE: 19811027 N-30D 1 SEMI-ANNUAL REPORT 1 1996 Semiannual Report Centennial Tax Exempt Trust CENTENNIAL TAX EXEMPT TRUST Officers and Trustees James C. Swain, Chairman and Chief Executive Officer Bridget A. Macaskill, Trustee and President Robert G. Avis, Trustee William A. Baker, Trustee Charles Conrad, Jr., Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Ned M. Steel, Trustee George C. Bowen, Vice President, Treasurer and Assistant Secretary Andrew J. Donohue, Vice President and Secretary Michael A. Carbuto, Vice President Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary Investment Adviser and Distributor Centennial Asset Management Corporation Transfer and Shareholder Servicing Agent Shareholder Services, Inc. Custodian of Portfolio Securities Citibank, N.A. Independent Auditors Deloitte & Touche LLP Legal Counsel Myer, Swanson, Adams & Wolf, P.C. The financial statements included herein have been taken from the records of the Trust without examination by the independent auditors. This is a copy of a report to shareholders of Centennial Tax Exempt Trust. This report must be preceded or accompanied by a Prospectus of Centennial Tax Exempt 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 RS0160.0011296 [RECYCLE LOG0] Printed on recycled paper. 2 Dear Shareholder: The second half of 1996 was a period of uncertainty in the fixed income markets, largely due to investor fears of rapid economic growth and accelerating inflation. The 30-year Treasury rates rose above 7% in the second quarter and remained relatively unchanged until the end of the third quarter. That's when negative investor sentiment that led to the market downturn in June and July began to subside. The swing away from inflationary fears seemed complete in October with the release of economic indicators showing a firm dollar, low inflation and slow growth. When the Federal Reserve responded to these indicators with another decision to leave rates alone, it appeared that concerns about rapid growth had been overblown, and interest rates fell in response. The status quo outcome of the presidential election also aided the decline in rates, and the bond market experienced one of the most substantial post-election rallies in recent history. With continued, sustainable non-inflationary growth of around 2% to 2.5%, and long-term rates at their lowest levels since April, the economy seems to have settled into a comfortable path of neither too little nor too much growth. Centennial Tax Exempt Trust performed well due to our bullish outlook on interest rates. In the early part of 1996, we believe that the Fed would be hesitant to raise rates as long as inflation didn't accelerate wildly. In response, we extended the portfolio's duration and took advantage of the higher returns that usually accompany longer-duration bonds. Later in the summer, as it became accepted among analysts that the Fed was probably less inclined to raise rates, we began to be even more aggressive in lengthening the portfolio's maturity. In the second half of 1996, rates declined quite a bit so we backed away from the longer maturities and monitored year-end activity. We expect that the economy will continue to slowly decelerate. The Trust had a compounded annualized yield of 2.99% for the six months ended December 31, 1996. Without compounding, the corresponding yield was 2.95%. For investors in the 36% federal tax bracket, this is equivalent to a taxable yield for six months of 4.67% with compounding, and 4.61% without. The seven-day annualized yields, with and without compounding for the six-month period ended December 31, 1996 were 3.31% and 3.26%, respectively.(1) 3 An investment in the Trust is neither insured nor guaranteed by the U.S. government, and there is no assurance that the Trust will maintain a stable $1.00 share price in the future. Thank you for your confidence in Centennial Tax Exempt Trust. We look forward to helping you reach your investment goals in the future. Sincerely, /s/ James C. Swain - -------------------- James C. Swain Chairman Centennial Tax Exempt Trust /s/ Bridget A. Macaskill - ------------------------ Bridget A. Macaskill President Centennial Tax Exempt Trust January 22, 1997 1. Compounded yields assume reinvestment of dividends. A portion of the Trust's distributions may be subject to federal and state income taxes. For investors subject to the federal and/or state alternative minimum tax, a portion of the Trust's distributions may increase this tax. Past performance does not gaurantee future results. 4 STATEMENT OF INVESTMENTS December 31, 1996 (Unaudited) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ----------- SHORT-TERM TAX-EXEMPT OBLIGATIONS - 103.1% ALABAMA - 0.9% AL GORRB, 5.55%, 3/1/97(1) ................................................... $ 3,400,000 $ 3,409,972 Bessemer, AL ID RB, Big B, Inc. Project, Series A, 4.35%(2) .................. 2,100,000 2,100,000 Huntsville, AL FAU MH RRB, Series B, 4.05%(2) ................................ 7,000,000 7,000,000 Winfield City, AL ID RB, Union Underwear Co., 4.30%(2) ....................... 1,900,000 1,900,000 ----------- 14,409,972 ----------- ARIZONA - 3.5% AZ HFAU RB, Blood Systems, Inc., 4.20%(2) .................................... 8,000,000 8,000,000 Maricopa Cnty., AZ IDA RB, Grand Canyon University Project, 4.20%(2) ......... 5,200,000 5,200,000 Maricopa Cnty., AZ PC Corp. PC RRB, Arizona Public Service Co. Project, Series D, 5.25%(2) ............................................... 3,500,000 3,500,000 Phoenix, AZ IDA MH RRB, Lynwood Apts. Project, 4.15%(2) ...................... 4,675,000 4,675,000 Phoenix, AZ IDA MH RRB, Paradise Lakes Apts. Project, 1995 Series, 4.35%(2) .. 22,500,000 22,500,000 Salt River, AZ Agriculture Improvement PAU RB, 3.70%, 1/14/97(1) ............. 9,431,000 9,431,000 Tucson, AZ IDA RB, Geronimo Building Renovation Project, 4%, 12/15/97(1) ..... 1,045,000 1,045,000 ----------- 54,351,000 ----------- ARKANSAS - 0.0% Subiaco, AR ID RB, Cloves Gear & Products, Inc., 4.40%(2) .................... 400,000 400,000 ----------- CALIFORNIA - 15.7% Anaheim, CA HAU MH RB, Bel Page Project, Series A, 4%(2) ..................... 1,000,000 1,000,000 Anaheim, CA HAU MH RRB, Park Vista Apts., Series A, 4.25%(2) ................. 1,000,000 1,000,000 CA HEA Student Loan RB, Series C, 4.25%(2) ................................... 11,800,000 11,800,000 CA HEA Student Loan RRB, Series 1987A, 3.70%, 5/1/97(1) ...................... 13,750,000 13,750,000 CA HEA Student Loan RRB, Series 1992A-2, 3.70%, 5/1/97(1) .................... 14,000,000 14,000,000 CA HFFA RB, Catholic Healthcare Project, Series C, 4%(2) ..................... 2,000,000 2,000,000 CA HFFA RB, Pooled Loan Program, Series B, FGIC Insured, 4%(2) ............... 500,000 500,000 CA HFFA RB, Santa Barbara Cottage Project, Series C, 3.75%(2) ................ 800,000 800,000 CA HFFA RB, Scripps Memorial Hospital, Series A, MBIA Insured, 4%(2) ......... 420,000 420,000 CA HFFA RRB, Catholic West Project, Series C, MBIA Insured, 4%(2) ............ 4,300,000 4,300,000 CA PCFA SWD RB, Western Waste Industries, Series A, 4.10%(2) ................. 500,000 500,000 CA Revenue Anticipation Nts., 4.50%, 6/30/97 ................................. 76,185,000 76,378,946 Hemet, CA HAU MH RRB, West Acadia Project, 4%(2) ............................. 4,800,000 4,800,000 Huntington Park, CA RA MH RB, Casa Rita Apts., Series A, 4.10%(2) ............ 800,000 800,000 Irvine, CA Public Facilities & Infrastructure Authority Lease RB, Capital Improvement Projects, 3.90%(2) .................................... 4,800,000 4,800,000
3 5 STATEMENT OF INVESTMENTS (Unaudited)(Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ------------ CALIFORNIA (CONTINUED) Kings Cnty., CA HAU Multifamily RRB, Edgewater Isle Apts., Series A, 4.15%(2) ...... $ 1,745,000 $ 1,745,000 Los Angeles Cnty., CA Tax & Revenue Anticipation Nts., Series A, 4.50%, 6/30/97 .... 72,300,000 72,530,371 Los Angeles, CA Airport Revenue Municipal Trust Bonds, Series SG-61, 4.15%(2) ...... 2,555,000 2,555,000 Metropolitan Water District of Southern CA Waterworks RRB, Series A, AMBAC Insured, 4%(2) ............................................................ 3,000,000 3,000,000 Modesto, CA Irrigation District FAU RB, Series SG-66, 4.10%(2) ..................... 500,000 500,000 Northern CA PPA RRB, Geothermal Project 3-A, 3.85%(2) .............................. 3,000,000 3,000,000 Oceanside, CA MH RRB, Lakeridge Apts. Project, 4.40%(2) ............................ 4,100,000 4,100,000 Ontario, CA Multifamily Residential Mtg. RB, Park Centre Project, Series A, 4%(2) .. 400,000 400,000 Orange Cnty., CA Apt. Development RRB, The Lakes Project, Series A, 4.15%(2) ....... 3,000,000 3,000,000 Rancho Mirage, CA RA COP, 4.25%(2) ................................................. 2,300,000 2,300,000 Riverside Cnty., CA HAU MH RB, McKinley Project, 4%(2) ............................. 2,000,000 2,000,000 Sacramento Cnty., CA MH RRB, Issue A, 3.95%(2) ..................................... 3,400,000 3,400,000 San Bernardino Cnty., CA HAU MH RRB, Arrowview Park Apts. Project, Series A, 4%(2) ................................................................. 3,050,000 3,050,000 San Bernardino Cnty., CA HAU MH RRB, Monterey Villas Apts. Project, Series A, 3.80%(2) .............................................................. 2,125,000 2,125,000 San Francisco, CA City & Cnty. RA Multifamily RRB, Fillmore Center Housing Project, Series A-1, 4.15%(2) ........................... 500,000 500,000 Southern CA PAU RRB, Palo Verde Project, Series B, AMBAC Insured, 3.90%(2) ......................................................... 2,400,000 2,400,000 ------------ 243,454,317 ------------ COLORADO - 1.9% Arapahoe Cnty., CO Multifamily RRB, Hunters Run Rental Housing, 4.25%(2) ........... 25,600,000 25,600,000 Aurora, CO ID RRB, La Quinta Motor Inns, Inc., 4.35%(2) ............................ 2,600,000 2,600,000 Wheat Ridge, CO ID RRB, La Quinta Motor Inns, Inc., 4.35%(2) ....................... 1,900,000 1,900,000 ------------ 30,100,000 ------------ DELAWARE - 1.0% DE EDA RB, Hospital Billing Project, Series A, BIG Insured, 4.15%(2) ............... 6,100,000 6,100,000 DE GOB, Series A, 5.60%, 3/1/97 .................................................... 2,550,000 2,557,682 Sussex Cnty., DE ED RB, Route 113 LP Project, 3.70%(2) ............................. 6,000,000 6,000,000 ------------ 14,657,682 ------------ FLORIDA - 5.4% Dade Cnty., FL WSS RB, FGIC Insured, 3.60%, 1/1/97(1)(2) ........................... 9,500,000 9,500,000 Escambia Cnty., FL HFAU RRB, Florida Convertible Centers Project, Series A, 3.45%(2) .............................................................. 1,300,000 1,300,000
4 6 STATEMENT OF INVESTMENTS (Unaudited)(Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ------------ FLORIDA (CONTINUED) FL BOE Capital Outlay Public Education Refunding Bonds, Series A, 4.35%(2) .......... $13,230,000 $ 13,230,000 FL HFA RRB, MH Monterey Lake Project, 3.85%(2) ...................................... 19,965,000 19,965,000 FL Turnpike Authority RB, Series A, FGIC Insured, 3.60%, 1/1/97(1)(2) ............... 14,200,000 14,200,000 Hillsborough Cnty., FL IDA PC RB, Tampa Electric Co. Project, 4.26%(2) .............. 17,000,000 17,000,000 Orange Cnty., FL Housing FAU RB, Smokewood/Sun Project, Series A, 4.25%(2) .......... 4,000,000 4,000,000 Orange Cnty., FL Housing FAU RRB, Monterey MH Project, Series B, 4.45%(2) ........... 4,890,000 4,890,000 ------------ 84,085,000 ------------ GEORGIA - 4.8% Burke Cnty., GA DAU PC RB, Georgia Power Co., Vogtle-Fourth Series, 4.20%(2) ........ 5,700,000 5,700,000 Cobb Cnty., GA HAU MH RRB, Terrell Mill Project, 4.25%(2) ........................... 9,400,000 9,400,000 Floyd Cnty., GA DAU PC RRB, Inland-Rome, Inc. Project, 4.35%(2) ..................... 4,735,000 4,735,000 Fulton Cnty., GA DAU RB, Georgia Tech Athletic Assn., Inc., 4.15%(2) ................ 3,000,000 3,000,000 Fulton Cnty., GA DAU RB, Robert W. Woodruff Arts Project, 4.15%(2) .................. 2,000,000 2,000,000 Fulton Cnty., GA Residential Care Facilities RB, Canterbury Court Project, Series A, 4.15%(2) ............................................................... 2,255,000 2,255,000 GA GOB, Series 1995B, 4.26%(2) ...................................................... 11,400,000 11,400,000 Newton Cnty., GA IDA RRB, John H. Harland Co. Project, 4.30%(2) ..................... 1,000,000 1,000,000 Roswell, GA HAU MH RRB, Oxford Project, 4.40%(2) .................................... 23,610,000 23,610,000 Savannah, GA HAU MH RRB, Somerset Place Project, Series A, 4.05%(2) ................. 2,500,000 2,500,000 Savannah, GA HAU MH RRB, Somerset Wharf Project, Series B, 4.05%(2) ................. 3,400,000 3,400,000 Smyrna, GA HAU MH RRB, Hills of Post Village Project, 4.05%(2) ...................... 5,000,000 5,000,000 ------------ 74,000,000 ------------ ILLINOIS - 8.7% Centralia City, IL ID RB, Consolidated Foods Corp./Hollywood Brands, Inc., 4.15%(2) . 5,500,000 5,500,000 Elk Grove Village, IL ID RB, La Quinta Motor Inns, Inc., 3.70%(2) ................... 3,100,000 3,100,000 IL Development FAU RB, Residential Brookdale Project, 4.50%(2) ...................... 14,800,000 14,800,000 IL Educational FA RB, Museum of Science & Industry Project, 4.20%(2) ................ 6,000,000 6,000,000 IL Educational FA RB, National-Louis University, 4.20%(2) ........................... 6,300,000 6,300,000 IL HFAU RB, Lake Forest Hospital Project, 4.125%(2) ................................. 12,190,000 12,190,000 IL Regional Transportation Authority RB, AMBAC Insured, 4.15%(2) .................... 20,170,000 20,170,000 IL Student Assistance Commission Student Loan RB, 4.30%(2) .......................... 7,800,000 7,800,000 Lakemoor Village, IL MH Mtg. RB, Lakemoor Apts. Project, 4.45%, 9/1/97(1) ........... 4,780,485 4,780,485 Lakemoor Village, IL MH Mtg. RB, Lakemoor Apts. Project, 4.75%, 9/4/97(1) ........... 15,000,000 15,000,000 Oakbrook Terrace, IL MH Mtg. RB, 4.90%, 11/3/97(1) .................................. 35,000,000 35,000,000 West Chicago, IL ID RRB, Liquid Container Project, 4.10%(2) ......................... 3,810,000 3,810,000 ------------ 134,450,485 ------------
5 7 STATEMENT OF INVESTMENTS (Unaudited)(Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ----------- INDIANA - 2.6% Crawfordsville, IN ED RRB, Pedcor Investments-Shady Knoll Apts. Project, 4.25%(2) ........ $ 3,425,000 $ 3,425,000 Gary, IN Industrial Environmental Improvement RB, U.S. Steel Corp. Project, 3.70%(2) ..... 1,000,000 1,000,000 Greenfield, IN Industrial ED RRB, 4.20%(2) ............................................... 1,250,000 1,250,000 Greenwood, IN Industrial ED RRB, 4.20%(2) ................................................ 1,260,000 1,260,000 Hobart, IN ED RRB, MMM Invest, Inc. Project, 4.20%(2) .................................... 2,010,000 2,010,000 IN Development FAU RB, Brebeuf Prep School, 4.20%(2) ..................................... 3,500,000 3,500,000 IN EDFA RB, Saroyan Hardwoods, Inc., 4.30%(2) ............................................ 2,000,000 2,000,000 IN HFFA RB, Cardinal Center Project, 4.25%(2) ............................................ 1,510,000 1,510,000 Marion Cnty., IN HA Hospital Facility RB, Indianapolis Osteopathic, 4.25%(2) ............. 3,645,000 3,645,000 Rockport, IN PC RRB, Indiana & Michigan Electric Co. Project, Series A, 4.15%(2) ......... 13,000,000 13,000,000 St. Joseph Cnty., IN HA Special Obligation Bonds, Madison Center, Inc. Project, 4.25%(2) ..................................................................... 6,985,000 6,985,000 St. Joseph Cnty., IN Industrial Educational Facilities RB, Holy Cross College, 4.25%(2) .. 1,305,000 1,305,000 ----------- 40,890,000 ----------- IOWA - 1.1% Des Moines, IA CD RB, Series A, 4.20%(2) ................................................. 11,400,000 11,400,000 Mason City, IA ID RB, SuperValu Stores, Inc. Project, 4.20%(2) ........................... 4,900,000 4,900,000 ----------- 16,300,000 ----------- KANSAS - 0.5% Kansas City, KS Private Activity RRB, Inland Container Corp., 4.35%(2) ................... 5,200,000 5,200,000 Olathe, KS Industrial RRB, William F. Bieber Project, 4.40%(2) ........................... 1,675,000 1,675,000 Ottawa, KS ID RB, Laich Industries Project, 4.25%(2) ..................................... 700,000 700,000 ----------- 7,575,000 ----------- KENTUCKY - 0.4% Jamestown, KY Industrial Building RB, Union Underwear Co., 4.30%(2) ...................... 1,000,000 1,000,000 Trimble Cnty., KY PC RB, Louisville Gas & Electric Co. Project, Series A, 3.70%, 1/14/97(1) ..................................................................... 5,900,000 5,900,000 ----------- 6,900,000 ----------- LOUISIANA - 0.7% East Baton Rouge Parish, LA ID Board RRB, La Quinta Motor Inns, Inc., 4.35%(2) ........... 2,125,000 2,125,000 Lake Charles, LA Harbor & Terminal District RB, Reynolds Metals Co. Project, 3.75%, 12/1/97(1) ..................................................................... 4,085,000 4,085,000 South LA Port Commission PC RRB, Occidental Petroleum Corp., 4.15%(2) .................... 5,200,000 5,200,000 ----------- 11,410,000 -----------
6 8 STATEMENT OF INVESTMENTS (Unaudited)(Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ----------- MARYLAND - 3.5% Anne Arundel Cnty., Economic West Capitol RB, Series A, 4.15%(2) .................. $ 6,000,000 $ 6,000,000 Hartford Cnty., MD RRB, 1001 Participation Facility Project, 4%(2) ................ 2,550,000 2,550,000 MD Health & HEFA RB, Carroll General Pooled Loan Program, Series A, 4.30%(2) ...... 1,060,000 1,060,000 MD Health & HEFA RB, University of Maryland Pooled Loan Program, Series B, 4%(2) .. 1,150,000 1,150,000 Montgomery Cnty., MD MH Opportunities Commission RB, Grosvenor House Project, Series A, 4%(2) ....................................................... 19,700,000 19,700,000 Montgomery Cnty., MD MH Opportunities Commission RB, Issue A, 4.30%(2) ............ 15,800,000 15,800,000 Worcester Cnty., MD RRB, White Marlin Mall Project, 3.70%(2) ...................... 7,850,000 7,850,000 ----------- 54,110,000 ----------- MASSACHUSETTS - 1.0% MA Commonwealth GOB, Series C, 4.21%(2) ........................................... 14,600,000 14,600,000 North Andover Town, MA Industrial RB, Atlee-Oak Realty Trust of Delaware, Inc., 4.05%(2) ............................. 350,000 350,000 ----------- 14,950,000 ----------- MICHIGAN - 1.0% Madison Heights, MI ED RB, Red Roof Inns Project, 3.70%(2) ........................ 1,000,000 1,000,000 MI GORB, Strategic Fund Limited, Series 1, 5.25%(2) ............................... 2,400,000 2,400,000 MI Hospital FAU RRB, Mount Clemens General Hospital, 4.15%(2) ..................... 9,920,000 9,920,000 MI Job DAU RB, East Lansing Residence Associates Project, 3.60%(2) ................ 1,900,000 1,900,000 ----------- 15,220,000 ----------- MINNESOTA - 4.4% Anoka City, MN MH RB, Walker Plaza, Series B, 4.20%(2) ............................ 1,750,000 1,750,000 Austin, MN ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ....................... 4,600,000 4,600,000 Blaine, MN ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ....................... 5,500,000 5,500,000 Bloomington, MN Port Authority Tax RRB, Mall of America Project, Series C, FSA Insured, 4.20%(2) .......................................................... 8,700,000 8,700,000 Burnsville, MN CD RB, SuperValu Stores, Inc. Project, Series 83, 4.20%(2) ......... 5,500,000 5,500,000 Dakota Cnty., MN Housing & Redevelopment Multifamily Mtg. RB, Westwood Ridge Rental Housing Project, Series A, 4.20%(2) ...................... 4,100,000 4,100,000 Eden Prairie, MN CD RRB, Lakeview Business Center, 4.20%(2) ....................... 2,595,000 2,595,000 Eden Prairie, MN ID RB, SuperValu Stores, Inc. Project, 4.20%(2) .................. 1,000,000 1,000,000 Maplewood, MN RB, 5.53%(2) ........................................................ 755,000 755,000 Minneapolis, MN CD RRB, Minnehaha/Lake Partners Project, 4.20%(2) ................. 2,750,000 2,750,000 Minneapolis, MN Community Development Agency RRB, Heart Institute Foundation Project, 4.20%(2) ................................... 3,000,000 3,000,000
7 9 STATEMENT OF INVESTMENTS (Unaudited)(Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ----------- MINNESOTA (CONTINUED) Minneapolis, MN RB, Catholic Charities Project, 4.15%(2) ............................ $ 3,000,000 $ 3,000,000 New Ulm, MN Hospital Facilities RB, Health Center Systems, 4.60%(2) ................. 2,400,000 2,400,000 North Suburban Hospital District, MN RB, Anoka & Ramsey Cntys. Hospital Health Center, 4.60%(2) ........................... 3,300,000 3,300,000 St. Paul, MN Port Authority Tax Increment RB, Westgate Office & Industrial Center Project, 4.20%(2) ............................ 10,800,000 10,800,000 Stillwater, MN ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ..................... 5,500,000 5,500,000 Waite Park, MI Housing RRB, Park Meadows Apts. Project, 4.20%(2) .................... 3,235,000 3,235,000 ----------- 68,485,000 ----------- MISSOURI - 0.8% St. Charles Cnty., MO ID RRB, Remington Apts. Project, 4.60%(2) ..................... 12,700,000 12,700,000 ----------- MONTANA - 0.3% Great Falls, MT ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) .................... 1,000,000 1,000,000 MT Board Investment RR RB, Colstrip Project, 4%(2) .................................. 3,000,000 3,000,000 ----------- 4,000,000 ----------- NEBRASKA - 0.4% Lancaster Cnty., NE HA RRB, Bryan Memorial Hospital Project, 4%(2) .................. 3,000,000 3,000,000 Norfolk, NE ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ........................ 2,800,000 2,800,000 ----------- 5,800,000 ----------- NEVADA - 1.2% NV Highway Improvement RB, Motor Vehicle Fuel Tax, 5.25%, 4/1/97 .................... 17,700,000 17,792,217 ----------- NEW JERSEY - 0.2% NJ EDA Manufacturing Facilities RB, VPR Commerce Center Project, 4.25%(2) ........... 3,750,000 3,750,000 ----------- NEW YORK - 8.5% Babylon, NY GOB, Series B, AMBAC Insured, 3.90%(2) .................................. 1,000,000 1,000,000 Buffalo, NY General Obligation Revenue Anticipation Nts., Series A, 4.25%, 7/15/97 .. 16,000,000 16,058,295 Franklin Cnty., NY ID Agency RRB, McAdam Cheese Co. Project, 4.11%(2) ............... 600,000 600,000 NYC HDC Multifamily Mtg. RB, Columbus Project, Series A, 3.95%(2) ................... 2,800,000 2,800,000 NYC HDC Multifamily Mtg. RB, James Tower Development, Series A, 4.15%(2) ............ 3,000,000 3,000,000 NYC ID Agency RB, Brooklyn Navy Yard Cogen, Series B, 4.20%(2) ...................... 5,000,000 5,000,000 NYC ID RB, Brooklyn Navy Yard Cogen, Series A, 4.15%(2) ............................. 1,600,000 1,600,000
8 10 STATEMENT OF INVESTMENTS (Unaudited)(Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ------------ NEW YORK (CONTINUED) NYC Tax Anticipation Nts., Series A, 4.50%, 2/12/97 ................................ $73,000,000 $ 73,063,748 NYC Trust Cultural Resources RRB, American Museum of Natural History, Series A, MBIA Insured, 3.80%(2) ................................................ 800,000 800,000 NYC Trust Cultural Resources RRB, American Museum of Natural History, Series B, MBIA Insured, 3.80%(2) ................................................ 1,000,000 1,000,000 NYS DA RB, Series A, FGIC Insured, 4.30%(2) ........................................ 700,000 700,000 NYS Environmental Facilities Corp. SWD RRB, General Electric Co. Project, Series A, 3.60%, 1/14/97(1) ..................................................... 1,000,000 1,000,000 NYS ERDAEF RB, L.I. Lighting Co., Series A, 4%(2) .................................. 200,000 200,000 NYS ERDAEF RB, L.I. Lighting Co., Series B, 4%(2) .................................. 1,100,000 1,100,000 NYS ERDAPC RRB, Orange/Rockland Utility Project, Series A, FGIC Insured, 3.80%(2) .. 3,500,000 3,500,000 NYS MCFFA RB, Lenox Hill Hospital Project, Series A, 3.95%(2) ...................... 2,800,000 2,800,000 NYS MCFFA, 8.875%, 8/15/97(1) ...................................................... 2,350,000 2,468,284 NYS PAU Revenue & General Purpose Municipal Trust Receipts, Series SG4, 4.15%(2) ... 2,295,000 2,295,000 NYS TBTA Beneficial Interest Certificates, MBIA Insured, 3.40%, 1/15/97(1) ......... 3,300,000 3,300,000 NYS TBTA COP, Series A, 3.60%(2) ................................................... 9,700,000 9,700,000 ------------ 131,985,327 ------------ NORTH CAROLINA - 0.4% NC National Bank Pooled Tax-Exempt Trust COP, Series 1990A, 4.12%(2) ............... 4,730,000 4,730,000 NC National Bank Pooled Tax-Exempt Trust COP, Series 1990B, 4.12%(2) ............... 1,815,000 1,815,000 ------------ 6,545,000 ------------ NORTH DAKOTA - 0.2% Bismarck, ND ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ...................... 800,000 800,000 Bismarck, ND ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ...................... 1,500,000 1,500,000 ------------ 2,300,000 ------------ OHIO - 4.6% Cuyahoga Cnty., OH ID RB, Southwest LP, 3.75%, 12/1/97(1) .......................... 2,015,000 2,015,000 Gallia Cnty., OH ID Mtg. RRB, Jackson Pike Assn., 3.50%, 6/15/97(1) ................ 4,040,000 4,040,000 Greene Cnty., OH ID RRB, SuperValu Holdings, Inc. Project, 4.20%(2) ................ 1,000,000 1,000,000 Lucas Cnty., OH ID RRB, H.H. Motel, Inc. Project, 4.20%(2) ......................... 3,440,000 3,440,000 Marion Cnty., OH Hospital RB, Pooled Lease Program, 4.20%(2) ....................... 6,560,000 6,560,000 Marion Cnty., OH Hospital RB, Pooled Lease Program, 4.20%(2) ....................... 6,330,000 6,330,000 Merchant & Mechanics Tax-Exempt Mtg. Bond Trust RB, 3.75%, 3/1/97(1) ............... 965,000 965,000 Miami Valley, OH Tax-Exempt Mtg. Trust RB, Series 86, 4.88%, 10/15/97(1) ........... 2,800,000 2,800,000
9 11 STATEMENT OF INVESTMENTS (Unaudited)(Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ----------- OHIO (CONTINUED) OH Air Quality DAU PC RRB, Series B, 3.85%, 10/9/97(1) ......................... $ 4,655,000 $ 4,655,000 OH Water DAU PC Facilities RB, Duquesne Commercial Paper, Series A, 3.85%, 10/9/97(1) ........................................................... 33,955,000 33,955,000 Scioto Cnty., OH Health Care Facilities RB, Hill View Retirement Center, 3.65%, 6/1/97(1) ............................................................ 2,815,000 2,815,000 Warren Cnty., OH ID RRB, Liquid Container Project, 4.10%(2) .................... 1,670,000 1,670,000 Whitehall, OH ID RRB, First Mtg. Continental Commercial, 3.90%, 2/1/97(1) ...... 1,430,000 1,430,000 ----------- 71,675,000 ----------- OKLAHOMA - 0.7% Claremore, OK Industrial & Redevelopment Authority RRB, Worthington Cylinder Project, 4.35%(2) ...................................... 2,335,000 2,335,000 Cleveland Cnty., OK Public Facilities RB, Hunt Development Project, Series A, 4.50%(2) .......................................................... 1,000,000 1,000,000 Mid-West, OK Tax-Exempt Mtg. Board Trust RB, 3.60%(2) .......................... 865,000 865,000 Tulsa, OK Industrial Authority RB, 4%(2) ....................................... 6,500,000 6,500,000 ----------- 10,700,000 ----------- OREGON - 0.6% Hillsboro, OR RB, Oregon Graduate Institute, 3.95%(2) .......................... 6,400,000 6,400,000 OR Economic & ID Commission RB, Eagle-Picher Industries Project, 4.60%(2) ...... 3,600,000 3,600,000 ----------- 10,000,000 ----------- PENNSYLVANIA - 5.5% Montgomery Cnty., PA IDA RB, Quaker Chemical Corp. Project, 3.75%(2) ........... 1,600,000 1,600,000 PA Commonwealth Tax Anticipation Nts., 4.50%, 6/30/97 .......................... 72,000,000 72,276,262 PA Commonwealth Tax-Exempt Mtg. Bond Trust Certificates, Series A, 3.95%, 5/1/97(1) ............................................................ 2,830,000 2,830,000 Pittsburg, PA Rate Receipts, Series SG-71, 4.10%(2) ............................ 9,205,000 9,205,000 ----------- 85,911,262 ----------- SOUTH CAROLINA - 2.6% Charleston Center Tax-Exempt Bonds, Grantor Trust No. 2, 3.70%, 5/1/97(1) ...... 4,407,500 4,407,500 Charleston Center Tax-Exempt Bonds, Grantor Trust No. 3, 3.70%, 1/1/97(1) ...... 9,452,500 9,452,500 Charleston Center Tax-Exempt Bonds, Grantor Trust No. 6, 3.80%, 4/1/97(1) ...... 8,075,000 8,075,000 Dorchester Cnty., SC PC Facilities RRB, The BOC Group, Inc. Project, 4.15%(2) .. 3,500,000 3,500,000 SC Jobs & EDA RB, Wellman Income Project, 4.25%(2) ............................. 1,000,000 1,000,000 SC Public Service Authority RB, Series 182, MBIA Insured, 4.21%(2) ............. 14,200,000 14,200,000 ----------- 40,635,000 -----------
10 12 STATEMENT OF INVESTMENTS (Unaudited)(Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ------------ SOUTH DAKOTA - 2.2% Grant Cnty., SD PC RRB, Otter Tail Power Co. Project, 4.20%(2) ...................... $10,400,000 $ 10,400,000 SD Health & Educational RB, Sioux Valley Hospital Issue, 4.20%(2) ................... 19,700,000 19,700,000 Watertown, SD ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ...................... 3,900,000 3,900,000 ------------ 34,000,000 ------------ TENNESSEE - 1.9% Clarksville, TN Public Building Authority RB, Pooled Financing-Tennessee Municipal Bond Fund, 4.30%(2) .................................................... 10,800,000 10,800,000 Covington, TN ID Board RB, Charms Co. Project, 4.20%(2) ............................. 4,100,000 4,100,000 Dayton, TN ID Board RRB, La-Z Boy Chair Co. Project, 4.15%(2) ....................... 4,350,000 4,350,000 Knox Cnty., TN ID Board RB, Weisgarber Partners, FGIC Insured, 3.50%(2) ............. 3,000,000 3,000,000 Metropolitan Government of Nashville & Davidson Cnty., TN Health & Educational Facilities Board RB, Vanderbilt University Project, Series 1985A, 3.50%, 1/15/97(1) .................................................. 1,000,000 1,000,000 Metropolitan Government of Nashville & Davidson Cnty., TN Health & Educational Facilities Board RB, Vanderbilt University Project, Series 1985A, 3.50%, 1/15/97(1) .................................................. 700,000 700,000 Metropolitan Government of Nashville & Davidson Cnty., TN MH RB, Arbor Crest Project, Series B, 4.15%(2) .......................................... 3,550,000 3,550,000 Rutherford Cnty., TN ID Board Industrial Building RB, Derby Industries, Inc. Project, 4.30%(2) ......................................... 1,435,000 1,435,000 ------------ 28,935,000 ------------ TEXAS - 11.3% Angelina & Neches TX River Authority PC RRB, Temple-Inland Forest Project, 4.35%(2) ........................................... 7,350,000 7,350,000 Gulf Coast, TX IDA Marine Terminal RB, Amoco Oil Project, 3.50%, 6/1/97(1) .......... 7,065,000 7,065,000 Harris Cnty., TX Series A-CR 139, 4.26%(2) .......................................... 5,000,000 5,000,000 Hockley Cnty., TX ID Corp. PC RB, Amoco Project-Standard Oil Co., 3.75%, 3/1/97(1) .. 20,000,000 20,000,000 Houston, TX WSS RB, 4.15%(2) ........................................................ 35,000,000 35,000,000 Travis Cnty., TX Housing Finance Corp. MH RB, Bent Oaks Apts., 4.35%(2) ............. 4,400,000 4,400,000 TX Tax & Revenue Anticipation Nts., 4.75%, 8/29/97 .................................. 77,000,000 77,424,874 TX Turnpike Authority RB, Dallas Northtollway, Series SG-70, 4.15%(2) ............... 18,325,000 18,325,000 ------------ 174,564,874 ------------ UTAH - 0.6% UT HFA MH RRB, Candlestick Apts. Project, 4.15%(2) .................................. 6,400,000 6,400,000 Weber Cnty., UT ID RRB, Parker Properties, Inc. Project, 4%(2) ...................... 2,600,000 2,600,000 ------------ 9,000,000 ------------
11 13 STATEMENT OF INVESTMENTS (Unaudited)(Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ --------------- VERMONT - 0.1% VT IDA RB, Sherbern Corp., 4.29%(2) ............................................ $ 1,460,000 $ 1,460,000 --------------- WASHINGTON - 2.2% Port Longview, WA ID RB, Longview Fibre Co. Project, 4.20%(2) .................. 5,000,000 5,000,000 Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 1, 4.15%(2) ..... 1,055,000 1,055,000 Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 2, 4.15%(2) ..... 1,770,000 1,770,000 Seattle, WA ID Corp. RB, RICS LP, 4.20%(2) ..................................... 4,950,000 4,950,000 WA GOB, Series 1996-A, 4.15%(2) ................................................ 8,000,000 8,000,000 WA GORB, Series 1995C, 4.21%(2) ................................................ 13,100,000 13,100,000 --------------- 33,875,000 --------------- WEST VIRGINIA - 0.4% Beckley City, WV Revenue Anticipation Nts., Series A, 4.20%(2) ................. 1,500,000 1,500,000 Harrison Cnty., WV ID RRB, Fox Grocery Co. Project, 4.10%(2) ................... 4,140,000 4,140,000 --------------- 5,640,000 --------------- WISCONSIN - 1.1% Milwaukee WI Revenue School Order Nts., Series B, 4.25%, 8/21/97 ............... 16,500,000 16,603,455 --------------- WYOMING - 0.2% Uinta Cnty., WY PC RB, AMOCO Standard Oil Co. of Indiana Project, 3.90%, 12/1/97(1) .......................................................... 3,000,000 3,000,000 --------------- U.S. POSSESSIONS - 0.0% PR Industrial, Medical & Environmental PC Facilities FAU RB, Reynolds Metals Co. Project, 3.80%, 9/1/97(1) ............................... 200,000 200,064 --------------- Total Investments, at Value .................................................... 103.1% 1,596,820,655 Liabilities in Excess of Other Assets .......................................... (3.1) (47,569,059) ------------ --------------- Net Assets ..................................................................... 100.0% $ 1,549,251,596 ============ ===============
12 14 STATEMENT OF INVESTMENTS (Unaudited)(Continued) Centennial Tax Exempt Trust To simplify the listings of the Centennial Tax Exempt Trust holdings in the Statement of Investments, we have abbreviated the descriptions of many of the securities per the table below: BOE Board of Education ED Economic Development CD Commercial Development EDA Economic Development Authority COP Certificates of Participation EDFA Economic Development Finance DA Dormitory Authority Authority DAU Development Authority ERDAEF Energy Research & Development ERDAPC Energy Research & Development Authority Electric Facilities Authority Pollution Control L.I. Long Island FA Facilities Authority MCFFA Medical Care Facilities Finance FAU Finance Authority Agency GOB General Obligation Bonds MH Multifamily Housing GORB General Obligation Refunding Bonds NYC New York City GORRB General Obligation Revenue NYS New York State Refunding Bonds PAU Power Authority HA Hospital Authority PC Pollution Control HAU Housing Authority PCFA Pollution Control Finance Authority HDC Housing Development Corp. PPA Public Power Agency HEA Higher Education Authority RA Redevelopment Agency HEFA Higher Educational Facilities RB Revenue Bonds Authority RR Resource Recovery HFA Housing Finance Agency RRB Revenue Refunding Bonds HFAU Health Facilities Authority SWD Solid Waste Disposal HFFA Health Facilities Finance Authority TBTA Triborough Bridge & Tunnel ID Industrial Development Authority IDA Industrial Development Authority WSS Water & Sewer System
1. Put obligation redeemable at full face value on the date reported. 2. Floating or variable rate obligation maturing in more than one year. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on December 31, 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. See accompanying Notes to Financial Statements 13 15 STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 (Unaudited) Centennial Tax Exempt Trust ASSETS: Investments, at value - see accompanying statement .............. $ 1,596,820,655 Cash ............................................................ 6,017,488 Receivables: Shares of beneficial interest sold ........................... 14,336,568 Interest ..................................................... 13,510,722 Other ........................................................... 93,875 --------------- Total assets ............................................... 1,630,779,308 --------------- LIABILITIES: Payables and other liabilities: Investments purchased ........................................ 64,606,079 Shares of beneficial interest redeemed ....................... 16,380,576 Service plan fees ............................................ 354,112 Transfer and shareholder servicing agent fees ................ 19,899 Dividends .................................................... 14,646 Other ........................................................ 152,400 --------------- Total liabilities .......................................... 81,527,712 NET ASSETS ...................................................... $ 1,549,251,596 =============== COMPOSITION OF NET ASSETS: Paid-in capital ................................................. $ 1,549,257,857 Accumulated net realized loss on investment transactions ........ (6,261) --------------- NET ASSETS - applicable to 1,549,273,825 shares of beneficial interest outstanding ......................................... $ 1,549,251,596 =============== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE .. $ 1.00
See accompanying Notes to Financial Statements. 14 16 STATEMENT OF OPERATIONS For the Six Months Ended December 31, 1996 (Unaudited) Centennial Tax Exempt Trust INVESTMENT INCOME - Interest ............................. $ 27,973,838 ------------ EXPENSES: Management fees - Note 3 ................................. 3,346,718 Service plan fees - Note 3 ............................... 1,534,325 Transfer and shareholder servicing agent fees - Note 3 ... 314,222 Custodian fees and expenses .............................. 139,922 Registration and filing fees ............................. 106,329 Shareholder reports ...................................... 34,894 Legal and auditing fees .................................. 17,627 Insurance expenses ....................................... 10,408 Trustees' fees and expenses .............................. 8,971 Other .................................................... 680 ------------ Total expenses ........................................ 5,514,096 Less expenses paid indirectly - Note 3 ................ (101,386) ------------ Net expenses .......................................... 5,412,710 ------------ NET INVESTMENT INCOME .................................... 22,561,128 NET REALIZED GAIN ON INVESTMENTS ......................... 4,819 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..... $ 22,565,947 ============
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended December 31, 1996 Year Ended (Unaudited) June 30, 1996 ----------------- --------------- OPERATIONS: Net investment income .......................................... $ 22,561,128 $ 46,013,851 Net realized gain .............................................. 4,819 244,254 --------------- --------------- Net increase in net assets resulting from operations ........... 22,565,947 46,258,105 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS .................... (22,806,978) (46,061,715) BENEFICIAL INTEREST TRANSACTIONS: Net increase in net assets resulting from beneficial interest transactions - Note 2 ....................................... 123,498,653 110,876,607 --------------- --------------- NET ASSETS: Total increase ................................................. 123,257,622 111,072,997 Beginning of period ............................................ 1,425,993,974 1,314,920,977 --------------- --------------- End of period .................................................. $ 1,549,251,596 $ 1,425,993,974 =============== ===============
See accompanying Notes to Financial Statements. 15 17 FINANCIAL HIGHLIGHTS Centennial Tax Exempt Trust
Six Months Ended Year Ended June 30, December 31, ------------------------------------------------------------------ 1996 (Unaudited) 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 $ 1.00 Income from investment operations - net investment income and net realized gain ............. .01 .03 .03 .02 .02 .03 Dividends and distributions to shareholders . (.01) (.03) (.03) (.02) (.02) (.03) --------- --------- --------- --------- --------- --------- Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========= ========= ========= ========= ========= ========= TOTAL RETURN, AT NET ASSET VALUE(1) ....................... 1.50% 3.16% 3.17% 1.90% 2.19% 3.55% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in millions) ..... $ 1,549 $ 1,426 $ 1,315 $ 1,039 $ 981 $ 917 Average net assets (in millions) ............ $ 1,533 $ 1,473 $ 1,127 $ 1,057 $ 977 $ 900 RATIOS TO AVERAGE NET ASSETS: Net investment income ....................... 2.92%(2) 3.12% 3.13% 1.87% 2.08% 3.40% Expenses(3) ................................. 0.71%(2) 0.72% 0.73% 0.76% 0.76% 0.75%
1. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods of less than one full year. Total returns reflect changes in net investment income only. 2. Annualized. 3. Beginning in fiscal 1995, the expense ratio reflects the effect of gross expenses paid indirectly by the Fund. Prior year expense ratios have not been adjusted. See accompanying Notes to Financial Statements. 16 18 NOTES TO FINANCIAL STATEMENTS (Unaudited) Centennial Tax Exempt Trust 1. SIGNIFICANT ACCOUNTING POLICIES Centennial Tax Exempt 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 short-term interest income exempt from Federal income taxes that is consistent with low capital risk and the maintenance of liquidity by investing in short-term municipal securities. The Trust's investment adviser 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. 17 19 NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) Centennial Tax Exempt Trust 2. SHARES OF BENEFICIAL INTEREST The Trust has authorized an unlimited number of no par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
Six Months Ended December 31, 1996 Year Ended June 30, 1996 -------------------------------------- -------------------------------------- Shares Amount Shares Amount -------------- --------------- -------------- --------------- Sold ......................... 2,220,911,676 $ 2,220,911,676 4,357,729,565 $ 4,357,729,549 Dividends and distributions reinvested ................. 23,570,335 23,570,335 45,904,203 45,904,203 Redeemed ..................... (2,120,983,358) (2,120,983,358) (4,292,757,161) (4,292,757,145) -------------- --------------- -------------- --------------- Net increase ............... 123,498,653 $ 123,498,653 110,876,607 $ 110,876,607 ============== =============== ============== ===============
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 $1.5 billion, 0.35% on the next $500 million of net assets and 0.325% on net assets in excess of $2 billion. Until Trust net assets reach $1.5 billion, the annual fee payable to the Manager will be reduced by $100,000. The Manager has agreed to assume Trust expenses (with specified exceptions) in excess of the most stringent applicable regulatory limit on Trust expenses. 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. Expenses paid indirectly represent a reduction of custodian fees for earnings on cash balances maintained by the fund. Under an approved service plan, the Trust may expend up to 0.20% of its net assets annually to reimburse Centennial Asset Management Corporation, as distributor, for costs incurred in connection with the personal service and maintenance of accounts that hold shares of the Trust, including amounts paid to brokers, dealers, banks and other institutions. During the six months ended December 31, 1996, the Trust paid $3,529 to a broker/dealer affiliated with the Manager as reimbursement for distribution-related expenses. 18 20 (This page has been left blank intentionally.) -----END PRIVACY-ENHANCED MESSAGE-----