-----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, MJueIBcdD0V0GDYeOefLyq8hMw/0ANaNQiMCbA/B9tEODPDXjBE8ttMN90fCvN7m Kz/nz8iGVsqLL7JKCMHzGg== 0000950133-00-000875.txt : 20000313 0000950133-00-000875.hdr.sgml : 20000313 ACCESSION NUMBER: 0000950133-00-000875 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991231 FILED AS OF DATE: 20000310 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: SEC FILE NUMBER: 811-03104 FILM NUMBER: 566514 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: 34TH FLOOR CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: 303-768-3200 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 SAR: CENT. TAX EXEMPT TRUST - DEC. 31, 1999 1 1999 SEMIANNUAL REPORT CENTENNIAL TAX EXEMPT TRUST DECEMBER 31, 1999 2 DEAR SHAREHOLDER: We are pleased to report that the second half of calendar and fiscal 1999 was a relatively calm period for both the bond market and Centennial Tax Exempt Trust. For the six months that ended December 31, 1999, the Trust produced a compounded annual yield of 2.61%. Without compounding, the corresponding yield was 2.57%. For investors in the 36% tax bracket, this is equivalent to a taxable yield of 4.08% with compounding, and 4.02% without. As of December 31, 1999, the seven-day annualized yields, with and without compounding, were 3.61% and 3.55%, respectively.(1) The pivotal events of the six-month period were three 0.25% interest-rate increases implemented by the Federal Reserve Board (the Fed) beginning on June 30th. By early summer, it was clear that the U.S. economy was no longer suffering the effects of the worldwide economic crisis that occurred in the fall of 1998. In fact, there were signs that rapid economic growth might lead to higher rates of inflation. To preempt this possibility, the Fed gradually raised its key interest rates, to curb borrowing by business and consumers. These moves did not cause a great deal of turmoil in the marketplace. Widely anticipated, they were viewed largely as "taking back" three rate declines the Fed had imposed during the fall-1998 crisis. During the first half of 1999, before the rate hikes, we had extended the Trust's average maturities into the 75- to 85-day range. The longer-term issues provided higher yields, helping us to maintain a competitive yield for the Trust despite the generally lower interest rates. As we entered the second half of the calendar year, we shortened the Trust's average maturity, in anticipation of the coming rate increases. When rates rise, bond prices fall, and the effect is more pronounced for longer-term issues. Since the Trust seeks to maintain a stable $1.00 share price, we wanted to minimize this effect and redirected about 20% of the portfolio into shorter-term issues. There can be no assurance that the Trust will maintain a stable share price, but we are ever mindful of the need to balance yield against protecting your principal. Focusing on shorter-term issues helped to reduce volatility, or price instability, for the Trust. So did our emphasis on high quality issues. The Trust is invested in tax-exempt securities issued by states, counties and municipalities coast to coast that are generally either insured or secured by a liquidity arrangement with a bank. Among those we used extensively during the period were demand notes, which are backed by commercial banks and are payable on demand, and commercial paper, or obligations with maturities ranging from two to 270 days that are issued by top-rated borrowers and backed by bank letters of credit. Approximately 23% of the Trust's total assets are invested in issues from Texas and Georgia, which are among the most creditworthy states due to their strong, growing 1. Compounded yields assume reinvestment of dividends. Past performance is not indicative of future results. 3 economies and vibrant business environments. Please keep in mind that, while the individual issues held in the portfolio may be insured or guaranteed, the Trust itself is neither insured nor guaranteed by the U.S. government or any other entity. At this juncture, Y2K does not seem to present any formidable challenges. It remains to be seen whether the past rate hikes will slow the economy materially, and interest rates have been relatively stable for several months. Since November, we have adjusted our strategy slightly and are currently reinvesting proceeds from maturing seven-day securities into 35- to 45-day issues. This shift has boosted the Trust's yield, but we do not believe it will have a significant impact on volatility. In our view, interest rates will remain within a narrow range while the Federal Reserve assesses its next interest rate move, widely expected in February or March. While the Fed assumes a low-key, month-to-month approach, taking its time to see whether its 1999 moves will have the desired effect--or whether additional increases are needed--we are doing the same. By investing primarilyn securities that mature monthly or thereabouts, we are keeping the Trust positioned to respond quickly once the Fed gives some indication of its next move. This conservative approach will help us to maintain a competitive yield while pursuing the Trust's objectives of safety and liquidity. Sincerely, /s/ JAMES C. SWAIN James C. Swain Chairman Centennial Tax Exempt Trust /s/ BRIDGET A. MACASKILL Bridget A. Macaskill President Centennial Tax Exempt Trust January 24, 2000 4 STATEMENT OF INVESTMENTS December 31, 1999 (Unaudited) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ---------- ------------ SHORT-TERM TAX-EXEMPT OBLIGATIONS--98.1% ARIZONA--1.8% AZ HFAU RB, Blood Systems, Inc., 5.50%(1) ................................................. $ 8,230,000 $ 8,230,000 Phoenix, AZ IDAU MH RRB, Paradise Lakes Apts. Project, 1995 Series, 5.55%(1) .............. 22,500,000 22,500,000 ------------ 30,730,000 ------------ ARKANSAS--0.3% AR IDV FAU RB, Semco, Inc. Project, 5.55%(1) .............................................. 4,500,000 4,500,000 ------------ CALIFORNIA--6.0% Anaheim, CA HAU MH RRB, Park Vista Apts., Series A, 5%(1) ................................. 1,000,000 1,000,000 CA CDAU Apt. Development RRB, Whispering Winds Apts., Series D, 5%(1) ..................... 1,000,000 1,000,000 CA EDFAU RB, Independent System, Series D, 5.10%(1) ....................................... 1,500,000 1,500,000 CA GOB, Tendered Option Certificates, Series 1998A, MBIA Insured, 5%(1)(2) ................ 2,997,000 2,997,000 CA Municipal RB, Series SG89, MBIA Insured, 5.15%(1) ...................................... 7,425,000 7,425,000 CA RAN, Series A, 4%, 6/30/00.............................................................. 6,000,000 6,020,288 CA SCDAU IDV RB, Del Mesa Farms Project, Series A, 4.50%(1) ............................... 2,500,000 2,500,000 CA School Cash Reserve Program Authority RB, Series A, 4%, 7/3/00.......................... 61,000,000 61,267,602 CA Statewide CDC RB, Fibrebond, Inc., 4.85%(1) ............................................ 1,175,000 1,174,990 Huntington Park, CA RA MH RB, Casa Rita Apts., Series A, 5%(1) ............................ 1,100,000 1,100,000 Los Angeles Cnty., CA Pension Obligation RB, Series B, AMBAC Insured, 4.85%(1) ............ 1,000,000 1,000,000 Los Angeles Cnty., CA Pension Obligation RRB, Series A, 4.85%(1) .......................... 2,000,000 2,000,000 Los Angeles, CA Airport RB, Series SG61, 5.20%(1) ......................................... 1,055,000 1,055,000 Los Angeles, CA USD RB, 5.44%(1)(2) ....................................................... 3,000,000 3,000,000 Los Angeles, CA Wastewater System ABN AMRO Munitops Certificates, Series 1998-25, 3.20%, 3/1/00(3)....................................................... 250,000 249,858 Modesto, CA Irrigation District FAU RB, Series SG66, 5.15%(1) ............................. 500,000 500,000 Oceanside, CA MH RRB, Lakeridge Apts. Project, 5.55%(1) ................................... 3,000,000 2,999,999 Pittsburg, CA Mortgage Obligation RRB, Series A, 5.35%(1) ................................. 1,000,000 1,000,000 San Francisco, CA City & Cnty. Redevelopment FAU RRB, Yerba Buena Garden, 4.70%(1) .......................................................... 315,000 315,000 Southern CA PAU RRB, Palo Verde Project, Series B, AMBAC Insured, 4.85%(1) ................ 1,300,000 1,300,000 Southern CA Public PAU RRB, Southern Transmission Project, AMBAC Insured, 4.85%(1) ............................................................... 1,000,000 1,000,000 ------------ 100,404,737 ------------
3 5 STATEMENT OF INVESTMENTS December 31, 1999 (Unaudited) (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 --------- ------------ COLORADO--0.6% CO Housing Finance Authority ED RB, Vincent Metal Goods Project, 5.65%(1) ................. $ 5,000,000 $ 5,000,000 Superior Metropolitan District No. 3, CO GOB, 5.47%(1) .................................... 4,995,000 4,995,000 ------------ 9,995,000 ------------ DELAWARE--0.8% DE EDAU IDV RRB, Delaware Clean Power Project, Series A, 5.85%(1) ......................... 5,000,000 5,000,000 DE EDAU IDV RRB, Delaware Clean Power Project, Series C, 5.67%(1) ......................... 8,000,000 8,000,000 ------------ 13,000,000 ------------ FLORIDA--5.1% Dade Cnty., FL WSS RB, FGIC Insured, 3.50%, 1/13/00(3) .................................... 9,900,000 9,900,000 Escambia Cnty., FL HFAU RRB, Florida Convertible Centers Project, Series A, 3.75%(1) ...... 1,150,000 1,150,000 FL BOE Capital Outlay Public Education RB, Series A, 5.55%(1) ............................. 13,230,000 13,230,000 FL HFA MH RRB, Monterey Lake Project, 4.90%(1) ............................................ 10,000,000 10,000,000 FL TUAU RB, Series A, FGIC Insured, 3.50%, 1/3/00(3) ...................................... 14,850,000 14,850,000 Hillsboro Cnty., FL IDV PC RB, Tampa Electric Co., MBIA Insured, 3.25%, 1/15/00(3) ........ 17,795,000 17,795,000 Hillsboro Cnty., FL IDV PC RB, Tampa Electric Co., MBIA Insured, 3.25%, 1/15/00(3) ........ 17,795,000 17,795,000 ------------ 84,720,000 ------------ GEORGIA--6.5% Atlanta, GA Urban Residential FAU MH RB, New Community East Lake Project, 5.50%(1) ........................................................... 2,000,000 2,000,000 Cobb Cnty., GA HAU MH RRB, Terrell Mill Project, 5.60%(1)(2) .............................. 9,400,000 9,400,000 Fulton Cnty., GA DAU RB, Georgia Tech Athletic Assn., Inc., 5.55%(1) ...................... 3,000,000 3,000,000 Fulton Cnty., GA DAU RB, Lovett School Project, 5.55%(1) .................................. 3,000,000 3,000,000 Fulton Cnty., GA DAU RB, Robert W. Woodruff Arts Project, 5.55%(1) ........................ 2,000,000 2,000,000 Fulton Cnty., GA HAU MH RRB, Spring Creek Crossing, 6.65%(1) .............................. 15,400,000 15,400,000 GA GOB, Series 1995B, 5.56%(1) ............................................................ 11,880,000 11,880,000 Gainsville, GA RA Educational Facilities RRB, Riverside Military Project, 5.50%(1) ........ 20,000,000 20,000,000 Putnam Cnty., GA DAU PC RB, Georgia Power Co., 3.65%, 1/13/00(3) .......................... 15,000,000 15,000,000 Rockdale Cnty., GA WSS Authority, Series B, 4.25%, 7/1/00(3) .............................. 2,770,000 2,775,960 Roswell, GA HAU MH RRB, Oxford Project, 5.60%(1) .......................................... 23,610,000 23,610,000 ------------ 108,065,960 ------------ IDAHO--0.1% Custer Cnty., ID IDV SWD RB, Hecla Mining Co. Project, 5.55%(1) ........................... 1,000,000 1,000,000 ------------ ILLINOIS--7.5% Chicago, IL ABN AMRO Munitops Certificates, Trust 1998-3, 5.68%(1)(2)...................... 8,735,000 8,735,000 Chicago, IL Lakefront Millennium Parking Facilities RB, 3.75%, 1/27/00(3) ................. 22,495,000 22,495,000
4 6 STATEMENT OF INVESTMENTS December 31, 1999 (Unaudited) (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 --------- ------------ ILLINOIS (CONTINUED) Chicago, IL Metropolitan Reclamation Water District GOB, Greater Chicago Capital Improvements, 6.80%, 1/1/00(3)................................................. $ 5,200,000 $ 5,304,000 Elk Grove Village, IL IDV RB, La Quinta Motor Inns, Inc., 3.95%(1) ........................ 1,800,000 1,800,000 IL Development FAU RB, Metropolitan Family Services, 5.40%(1) ............................. 8,700,000 8,700,000 IL HFAU RB, Revolving Fund Pooled, Series B, 5.65%(1)...................................... 12,600,000 12,600,000 IL HFAU RB, Lake Forest Hospital Project, 4.25%(1)......................................... 9,755,000 9,755,000 IL HFAU RRB, Advocate Health Care, Series B, 5.35%(1)...................................... 18,500,000 18,500,000 IL HFAU RRB, The Carle Foundation, Series B, 5.65%(1)...................................... 22,000,000 22,000,000 IL Student Assistance Commission Student Loan RB, Series A, 5.75%(1)....................... 10,750,000 10,750,000 West Chicago, IL IDV RRB, Liquid Container Project, 5.55%(1)............................... 3,810,000 3,810,000 ------------ 124,449,000 ------------ INDIANA--10.7% Dyer, IN HCF RRB, Regency Place, Series A-1, 3.77%(1)...................................... 3,220,000 3,220,000 Fort Wayne, IN HCF RRB, Health Quest, Series X-A, 5.62%(1)................................. 2,995,000 2,995,000 IN Bank Bonds, Advance Funding Program, Series A-2, 3.50%, 1/19/00......................... 45,000,000 45,011,446 IN HFFAU RRB, Ascension Health Credit-B, 3.80%, 2/9/00(3).................................. 75,000,000 75,000,000 IN MPA RB, Power Supply System, MBIA Insured, 5.56%(1)..................................... 13,600,000 13,600,000 Indianapolis, IN HCF RRB, Health Quest, Series A, 5.62%(1)................................. 3,845,000 3,845,000 Indianapolis, IN Local Public Improvement Bank Bonds, Series A, 4%, 1/10/00................ 11,250,000 11,252,040 Marion Cnty., IN HA Hospital Facility RB, Indianapolis Osteopathic, 5.60%(1)............... 2,810,000 2,810,000 Merrillville, IN HCF RRB, Southlake, Series A-1, 5.62%(1).................................. 3,880,000 3,880,000 Rockport, IN PC RRB, Indiana & Michigan Electric Co. Project, Series A, 5.55%(1)........... 13,000,000 13,000,000 South Bend, IN HCF RRB, Fountainview, Series A-1, 5.62%(1)................................. 3,055,000 3,055,000 St. Joseph Cnty., IN Industrial Educational Facilities RB, Holy Cross College, 5.60%(1).... 1,015,000 1,015,000 ------------ 178,683,486 ------------ IOWA--1.7% IA HEAU RB, 5.80%(1)....................................................................... 12,000,000 12,000,000 IA School Cash Anticipation Program Warrant Certificates, Series B, FSA Insured, 3.50%, 1/28/00.................................................. 16,740,000 16,746,373 ------------ 28,746,373 ------------ KANSAS--0.4% Manhattan, KS Industrial RRB, Parker Hannifin, Inc. Project, 5.50%(1)...................... 6,000,000 6,000,000 ------------ KENTUCKY--2.0% Jamestown, KY Industrial Building RB, Union Underwear Co., 4.50%(1)........................ 1,000,000 1,000,000 KY Asset/Liability Commission General Fund TAN & RAN, Series A, 4.25%, 6/28/00............. 27,000,000 27,115,342 Mayfield, KY Multi-City Lease RB, Kentucky League of Cities Funding Trust, 5.60%(1)........ 5,860,000 5,860,000 ------------ 33,975,342 ------------
5 7 STATEMENT OF INVESTMENTS December 31, 1999 (Unaudited) (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 --------- ------------ LOUISIANA--1.1% LA PFFAU RRB, MBIA Insured, 5.70%(1)....................................................... $17,600,000 $ 17,600,000 ------------ MARYLAND--0.4% Anne Arundel Cnty., MD ED RB, West Capitol, Series A, 5.50%(1)............................. 6,000,000 6,000,000 MD Health & HEFAU RB, University of Maryland Pooled Loan Program, Series B, 4.25%(1) .................................................................... 900,000 900,000 ------------ 6,900,000 ------------ MASSACHUSETTS--2.5% MA CMWLTH General Obligation Consolidation Loan, 3.25%, 1/15/00(3)......................... 15,245,000 15,245,000 MA GOB, 3.75%, 1/27/00(3).................................................................. 20,800,000 20,800,000 MA Water Resource Authority Multi-Modal RRB, Sub. Lien, Series D, FGIC Insured, 7.50%, 4/1/00(3)......................................................... 5,615,000 5,773,287 ------------ 41,818,287 ------------ MICHIGAN--0.1% MI Job DAU RB, East Lansing Residence Associates Project, 3.80%(1)......................... 1,900,000 1,900,000 ------------ MINNESOTA--0.5% Minneapolis, MN CD RRB, Minnehaha/Lake Partners Project, 4.05%(1).......................... 2,750,000 2,750,000 New Ulm, MN Hospital Facilities RB, Health Center Systems, 5%(1)........................... 2,200,000 2,200,000 North Suburban Hospital District, MN RB, Anoka & Ramsey Cntys. Hospital Health Center, 5%(1).......................................................... 3,200,000 3,200,000 ------------ 8,150,000 ------------ NEVADA--1.2% NV Municipal Securities Trust Receipts, Series SG 114, 5.56%(1)............................ 20,350,000 20,350,000 ------------ NEW HAMPSHIRE--1.5% NH Business FAU PC RRB, Series 1990-A, 3.90%, 1/24/00(3)................................... 25,000,000 25,000,000 ------------ NEW JERSEY--0.2% NJ EDAU Water Facilities RB, 5.10%(1)...................................................... 2,500,000 2,500,000 ------------ NEW MEXICO--1.4% Farmington, NM PC RB, 3.25%, 4/6/00(3)..................................................... 24,000,000 24,000,000 ------------ NEW YORK--6.1% Franklin Cnty., NY IDA RAN, McAdam Cheese Co. Project, 5.50%(1)............................ 600,000 600,000 L.I., NY PAU Electric System Sub. RB, 3.60%, 1/25/00(3).................................... 32,000,000 32,000,000 NYC MTAU Dedicated Tax Fund RB, FGIC Insured, 4%, 4/1/00................................... 3,640,000 3,647,581 NYS DA COP, Rockefeller University, 5.53%(1).............................................. 500,000 500,011
6 8 STATEMENT OF INVESTMENTS December 31, 1999 (Unaudited) (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 --------- ------------ NEW YORK (CONTINUED) NYS DA RB, 5.68%(1)........................................................................ $ 1,300,000 $ 1,300,000 NYS ERDAUEF RRB, Con Edison Co., Subseries A-3, 5.35%(1)................................... 500,000 500,000 NYS HFA RB, Saxony Housing, Series A, 5.50%(1)............................................. 200,000 200,000 NYS LGAC RB, Series G, 5%(1)............................................................... 400,000 400,000 NYS LGAC RB, Series SG100, MBIA Insured, 5.55%, 4/1/00(1)(3)............................... 10,420,000 10,420,000 NYS LGAC RB, Series SG99, MBIA Insured, 5.55%, 4/1/00(1)(3)................................ 27,595,000 27,595,000 NYS MAG RB, Series PT217, 3.30%, 4/6/00(3)................................................. 2,460,000 2,460,000 NYS MCFFA RB, St. Lukes Hospital, Series B, 7.45%, 2/15/00(3).............................. 1,000,000 1,025,094 NYS TBTAU Beneficial Interest COP, MBIA Insured, 4.15%, 1/15/00(3)......................... 5,200,000 5,200,000 NYS Toll Way Authority Service Contract RB, 5.53%(1)....................................... 7,070,000 7,070,000 NYS UDC RB, Correctional Capital Facilities, Prerefunded, Series 1, FSA Insured, 7.50%, 1/1/00(3).......................................................... 1,000,000 1,020,000 NYS Urban Empire Development Corp. RB, Series A, 5.53%(1).................................. 8,555,000 8,555,000 PAUNYNJ SPO Bonds, Series SG94, 5.50%(1)................................................... 600,000 600,006 ------------ 103,092,692 ------------ NORTH CAROLINA--0.4% Charlotte, NC Airport RB, Series D, MBIA Insured, 3.90%, 1/26/00(3)........................ 7,000,000 7,000,000 ------------ OHIO--1.9% Gallia Cnty., OH IDV Mtg. RRB, Jackson Pike Assn., 4.10%, 6/15/00(3)....................... 3,400,000 3,400,000 Marion Cnty., OH Hospital RB, Pooled Lease Program, 5.47%(1)............................... 5,055,000 5,055,000 Miami Valley, OH Tax-Exempt Mtg. Trust RB, Series 86, 4.88%, 10/15/00(3)................... 2,580,000 2,580,000 OH Water Development PC Facilities RRB, Cleveland Electric Illumination RRB, Series A, FGIC Insured, 3.85%, 2/10/00(3).............................................. 16,000,000 16,000,000 Scioto Cnty., OH HCF RB, Hill View Retirement Center, 4%, 6/1/00(3)........................ 2,580,000 2,580,000 Warren Cnty., OH IDV RRB, Liquid Container Project, 5.55%(1)............................... 1,670,000 1,670,000 ------------ 31,285,000 ------------ OKLAHOMA--0.6% OK Industrial Authority RB, Casady School Project, 5.50%(1)................................ 6,405,000 6,405,000 Tulsa, OK IDAU RB, Indian Health Care Project, 5.50%(1).................................... 3,100,000 3,100,000 ------------ 9,505,000 ------------ OREGON--0.8% Hillsboro, OR RB, Oregon Graduate Institute, 5.50%(1)...................................... 5,700,000 5,700,000 OR Economic & IDV Commission RB, Eagle-Picher Industries Project, 5.05%(1)................. 3,600,000 3,600,000 OR Housing & Community Services Department Mtg. RB, SFM Program, Series C, 3.15%, 4/13/00(3)............................................................ 4,615,000 4,615,000 ------------ 13,915,000 ------------
7 9 STATEMENT OF INVESTMENTS December 31, 1999 (Unaudited) (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 --------- ------------ PENNSYLVANIA--4.8% Beaver Cnty., PA IDAU RB, 3.90%, 1/26/00(3)................................................ $37,700,000 $ 37,700,000 Eagle Tax-Exempt Trust PA GOUN, 5.56%(1)................................................... 17,800,000 17,800,000 Monroe Cnty., PA HA RB, Pocono Medical Center, Series C, 5.55%(1).......................... 2,835,000 2,835,000 Montgomery Cnty., PA IDAU RB, Quaker Chemical Corp. Project, 4.15%(1)...................... 1,600,000 1,600,000 PA GOB, 5.55%(1)........................................................................... 20,000,000 20,000,000 ------------ 79,935,000 ------------ SOUTH CAROLINA--1.3% SC POAU ABN AMRO Munitops Certificates, Trust 1998-7, 4.04%(1)............................. 7,325,000 7,325,000 SC Public Service Authority RB, Series 182, MBIA Insured, 5.56%(1)......................... 14,850,000 14,850,000 ------------ 22,175,000 ------------ SOUTH DAKOTA--2.0% Grant Cnty., SD PC RRB, Otter Tail Power Co. Project, 5.50%(1)............................. 10,400,000 10,400,000 SD Health & Educational Facilities RB, Sioux Valley Hospital Issue, 5.50%(1)............... 20,800,000 20,800,000 Yankton, SD IDV RB, Kolber-Pioneer, Inc. Project, 5.50%(1)................................. 2,000,000 2,000,000 ------------ 33,200,000 ------------ TENNESSEE--1.6% Clarksville, TN Public Building Authority RB, Pooled Financing Tennessee Municipal Bond Fund, 5.40%(1)................................................ 9,000,000 9,000,000 Clarksville, TN Public Building Authority RB, Tennessee Municipal Bond Fund, 5.40%(1).................................................................... 15,800,000 15,800,000 Fayetteville & Lincoln, TN IDV Board RB, V.A.W. of America, 5.55%(1)....................... 2,000,000 2,000,000 ------------ 26,800,000 ------------ TEXAS--16.9% Dallas, TX Rapid Transit RB, 3.60%, 1/18/00(3)............................................. 20,000,000 20,000,000 Dallas, TX Rapid Transit RB, 3.65%, 1/18/00(3)............................................. 10,000,000 10,000,000 Dallas, TX Rapid Transit RB, 3.65%, 1/18/00(3)............................................. 5,000,000 5,000,000 Dallas, TX Waterworks & Sewer ABN AMRO Munitops Certificates, Series 1998-19, 5.66%(1)............................................................... 8,000,000 8,000,000 De Soto, TX IDAU RRB, National Service Industries, Inc. Project, 5.50%(1).................. 7,150,000 7,150,000 Eagle Tax-Exempt Trust San Antonio Water RB, 5.56%(1)...................................... 4,000,000 4,000,000 Greater East TX HEAU RRB, Student Loans, Series A, 3.15%, 5/1/00(3)........................ 9,000,000 9,000,000 Harris Cnty., TX Criminal Justice Center RB, Series SG96, FGIC Insured, 5.56%(1)........... 7,475,000 7,475,000 Harris Cnty., TX IDV Corp. RRB, Baytank Houdton Inc. Project, 5.80%(1)..................... 8,700,000 8,700,000 Harris Cnty., TX Toll Road COP, 5.56%(1)................................................... 9,900,000 9,900,000 Houston, TX WSS RB, Series SG120, 5.56%(1)................................................. 37,600,000 37,600,000
8 10 STATEMENT OF INVESTMENTS December 31, 1999 (Unaudited) (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 --------- ------------ TEXAS (CONTINUED) North Central, TX HFDC RB, 3.90%, 2/1/00(3)................................................ $10,000,000 $ 10,000,000 San Antonio, TX Electric & Gas RRB, Series G-101, 5.56%(1)................................. 20,000,000 20,000,000 San Antonio, TX Electric & Gas RRB, Series SG105, 5.56%(1)................................. 20,000,000 20,000,000 TX TAN & RAN, Series A, 4.50%, 8/31/00..................................................... 89,000,000 89,460,381 TX TUAU RB, Dallas Northtollway, Series SG70, 5.56%(1)..................................... 15,325,000 15,325,000 ------------ 281,610,381 ------------ UTAH--3.5% Intermountain Power Agency RB, Utah Power Supply, 3.55%, 1/26/00(3)........................ 14,600,000 14,600,000 UT HFA MH RRB, Candlestick Apts. Project, 5.40%(1)......................................... 6,400,000 6,400,000 UT Intermountain Power Agency RRB, Series F, AMBAC Insured, 3.625%, 3/15/00(3)............. 37,700,000 37,700,000 ------------ 58,700,000 ------------ VIRGINIA--0.5% Henry Cnty., VA IDAU RB, Amfibe, Inc. Project, 5.50%(1).................................... 2,900,000 2,900,000 Roanoke, VA IDAU Hospital RRB, Roanoke Memorial Hospital, Series A, 4.80%(1)............... 6,246,000 6,246,000 ------------ 9,146,000 ------------ WASHINGTON--1.2% Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 1, 5.40%(1)................. 910,000 910,000 Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 2, 5.40%(1)................. 1,620,000 1,620,000 Seattle, WA IDV Corp. RB, 5%(1)............................................................ 3,550,000 3,550,000 WA GORB, Series 1995C, 5.56%(1)............................................................ 13,710,000 13,710,000 ------------ 19,790,000 ------------ DISTRICT OF COLUMBIA--2.4% DC HFA MH RB, Tyler House Trust Certificates Partnership A, 5.65%(1)....................... 10,800,000 10,800,000 Metro Wasington DC Airport Authority RB, 3.95%, 2/17/00(3)................................. 18,500,000 18,500,000 Metro Wasington DC Airport Authority RB, 3.95%, 2/17/00(3)................................. 10,000,000 10,000,000 ------------ 39,300,000 ------------ U.S. POSSESSIONS--1.7% Greystone Tax Exempt Cerificates RB, Trust 1998-1, Sr. Certificat Beneficial Ownership, 5.63%(1)......................................................... 28,000,000 28,000,000 ------------ Total Investments, at Value................................................................ 98.1% 1,635,942,258 ------------ Other Assets Net of Liabilities............................................................ 1.9 32,315,805 ---------- ----------- Net Assets................................................................................. 100.00% $1,668,258,063 ========== ==============
9 11 STATEMENT OF INVESTMENTS December 31, 1999 (Unaudited) (Continued) Centennial Tax Exempt Trust To simplify the listings of securities, abbreviations are used per the table below: BOE--Board of Education CD--Commercial Development CDAU--Communities Development Authority CDC--Community Development Corp. CMWLTH--Commonwealth COP--Certificates of Participation DA--Dormitory Authority DAU--Development Authority ED--Economic Development EDAU--Economic Development Authority EDFAU--Economic Development Finance Authority ERDAUEF--Energy Research & Development Authority Electric Facilities FAU--Finance Authority GOB--General Obligation Bonds GORB--General Obligation Refunding Bonds GOUN--General Obligation Unlimited Nts. HA--Hospital Authority HAU--Housing Authority HCF--Health Care Facilities HEAU--Higher Education Authority HEFAU--Higher Educational Facilities Authority HFA--Housing Finance Agency HFAU--Health Facilities Authority HFDC--Health Facilities Development Corp. HFFAU--Health Facilities Finance Authority IDA--Industrial Development Agency IDAU--Industrial Development Authority IDV--Industrial Development LGAC--Local Government Assistance Corp. L.I.--Long Island MAG--Mtg. Agency MCFFA--Medical Care Facilities Finance Agency MH--Multifamily Housing MPA--Municipal Power Agency MTAU--Metropolitan Transportation Authority NYC--New York City NYS--New York State PAUNYNJ--Port Authority of New York & New Jersey PAU--Power Authority PC--Pollution Control PFFAU--Public Facilities Finance Authority POAU--Port Authority RA--Redevelopment Agency RAN--Revenue Anticipation Nts. RB--Revenue Bonds RRB--Revenue Refunding Bonds SCDAU--Statewide Communities Development Authority SFM--Single Family Mtg. SPO--Special Obligations SWD--Solid Waste Disposal TAN--Tax Anticipation Nts. TBTAU--Triborough Bridge & Tunnel Authority TUAU--Turnpike Authority UDC--Urban Development Corp. USD--Unified School District WSS--Water & Sewer System 1. Represents the current interest rate for a variable rate security, maturing in more than one year. This instrument may also have a demand feature which allows, on up to 30 days' notice, the recovery of principal at any time, or at specified intervals not exceeding one year. 2. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $24,132,000 or 1.45% of the Trust's net assets as of December 31, 1999. 3. Put obligation redeemable at full face value on the date reported. 10 12 STATEMENT OF ASSETS AND LIABILITIES December 31, 1999 (Unaudited) Centennial Tax Exempt Trust ASSETS Investments, at value--see accompanying statement.................................. $1,635,942,258 Cash............................................................................... 1,738,935 Receivables and other assets: Shares of beneficial interest sold............................................... 36,139,999 Interest......................................................................... 15,920,126 Other............................................................................ 64,460 ------------- Total assets....................................................................... 1,689,805,778 ------------- LIABILITIES Payables and other liabilities: Shares of beneficial interest redeemed.......................................... 21,034,198 Service plan fees............................................................... 174,201 Dividends....................................................................... 157,426 Transfer and shareholder servicing agent fees................................... 34,886 Trustees' compensation.......................................................... 4,846 Other........................................................................... 142,158 ------------- Total liabilities............................................................... 21,547,715 ------------- NET ASSETS........................................................................ $1,668,258,063 ============== COMPOSITION OF NET ASSETS Paid-in capital................................................................... $1,668,828,785 Accumulated net realized loss on investment transactions.......................... (570,722) -------------- NET ASSETS--applicable to 1,668,844,753 shares of beneficial interest outstanding............................................... $1,668,258,063 ============== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE.................... $1.00
See accompanying Notes to Financial Statements. 11 13 STATEMENT OF OPERATIONS For the Six Months Ended December 31, 1999 (Unaudited) Centennial Tax Exempt Trust INVESTMENT INCOME--Interest.............................................................. $30,064,847 ---------- EXPENSES Management fees.......................................................................... 3,771,389 Service plan fees........................................................................ 1,749,599 Transfer and shareholder servicing agent fees............................................ 448,006 Custodian fees and expenses.............................................................. 158,307 Trustees' compensation................................................................... 14,764 Other.................................................................................... 210,016 ---------- Total expenses......................................................................... 6,352,081 Less expenses paid indirectly.......................................................... (64,826) ---------- Net expenses............................................................................. 6,287,255 ---------- NET INVESTMENT INCOME.................................................................... 23,777,592 ---------- NET REALIZED LOSS ON INVESTMENTS......................................................... (90,512) ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................................... $23,687,080 ===========
- -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended December 31, 1999 Year Ended (Unaudited) June 30, 1999 ----------------- ---------------- OPERATIONS Net investment income............................................... $ 23,777,592 $ 48,885,541 Net realized gain (loss)............................................ (90,512) 102,645 -------------- ------------- Net increase in net assets resulting from operations................ 23,687,080 48,988,186 -------------- ------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS...................... (23,777,592) (48,885,541) -------------- ------------- BENEFICIAL INTEREST TRANSACTIONS Net decrease in net assets resulting from beneficial interest transactions................................ (81,132,680) (79,607,151) -------------- ------------- NET ASSETS Total decrease...................................................... (81,223,192) (79,504,506) Beginning of period................................................. 1,749,481,255 1,828,985,761 -------------- -------------- End of period....................................................... $1,668,258,063 $1,749,481,255 ============== ==============
See accompanying Notes to Financial Statements. 12 14 FINANCIAL HIGHLIGHTS Centennial Tax Exempt Trust
Six Months Ended December 31, (Unaudited) Year Ended June 30, ------------------------------------------------------------------------------------- 1999 1999 1998 1997 1996 1995 ---- ---- ---- ---- ---- ---- 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 .03 .03 .03 Dividends and distributions to shareholders. (.01) (.03) (.03) (.03) (.03) (.03) ---- ---- ---- ---- ---- ---- Net asset value, end of period.............. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ==== ==== ==== ==== ==== ==== TOTAL RETURN(1)............................. 1.38% 2.61% 3.12% 3.01% 3.16% 3.17% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in millions)..... $1,668 $1,749 $1,829 $1,649 $1,426 $1,315 Average net assets (in millions)............ $1,762 $1,896 $1,832 $1,591 $1,473 $1,127 Ratios to average net assets:(2) Net investment income....................... 2.68% 2.58% 3.07% 2.95% 3.12% 3.13% Expenses.................................... 0.72% 0.69% 0.69%(3) 0.72%(3) 0.72%(3) 0.73%(3)
1. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns reflect changes in net investment income only. Total returns are not annualized for periods of less than one full year. 2. Annualized for periods less than one full year. 3. Expense ratio has not been grossed up to reflect the effect of expenses paid indirectly. See accompanying Notes to Financial Statements. 13 15 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. The Trust's investment advisor is Centennial Asset Management Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). The following is a summary of significant accounting policies consistently followed by the Trust. Securities Valuation. Portfolio securities are valued on the basis of amortized cost, which approximates market value. Federal Taxes. The Trust intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. Therefore, no federal income or excise tax provision is required. As of June 30, 1999, the Trust had available for federal income tax purposes an unused capital loss carryover of approximately $467,000, which expires between 2006 and 2007. Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. Expense Offset Arrangements. Expenses paid indirectly represent a reduction of custodian fees for earnings on cash balances maintained by the Trust. Other. Investment transactions are accounted for as of trade date. Realized gains and losses on investments are determined on an identified cost basis, which is the same basis used for federal income tax purposes. 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. See accompanying Notes to Financial Statements. 14 16 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, 1999 Year Ended June 30, 1999 ---------------------------------------- ---------------------------------------- Shares Amount Shares Amount --------------- ---------------- --------------- --------------- Sold ....................... 2,714,591,275 $ 2,714,591,275 5,631,707,953 $ 5,631,707,953 Dividends and/or distributions reinvested .... 24,770,820 24,770,820 48,085,400 48,085,400 Redeemed .................... (2,820,494,775) (2,820,494,775) (5,759,400,504) (5,759,400,504) --------------- ---------------- --------------- ---------------- Net decrease ................ (81,132,680) $ (81,132,680) (79,607,151) $ (79,607,151) =============== ================= =============== ================
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Management Fees. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust which provides for a fee of 0.50% of the first $250 million of the Trust's net assets; 0.475% of the next $250 million; 0.45% of the next $250 million; 0.425% of the next $250 million; 0.40% of the next $250 million; 0.375% of the next $250 million; 0.35% of the next $500 million and 0.325% of net assets in excess of $2 billion. Furthermore, under the Trust's Agreement, when the value of the Trust's net assets is less than $1.5 billion, the annual fee payable to the Manager shall be reduced by $100,000 based on average net assets computed daily and paid monthly at the annual rates, but in no event shall the annual fee be less than $0. The Trust's management fee for the six months ended December 31, 1999, was 0.42% of average annual net assets, annualized for periods of less than one full year. Transfer Agent Fees. Shareholder Services, Inc. (SSI), a subsidiary of the Manager, is the transfer and shareholder servicing agent for the Trust and for other registered investment companies. SSI's total costs of providing such services are allocated ratably to these companies. Service Plan Fees. Under an approved service plan, the Trust may expend up to 0.20% of its net assets annually to reimburse the Manager, as distributor, for costs incurred in connection with the personal service and maintenance of accounts that hold shares of the Trust, including amounts paid to brokers, dealers, banks and other institutions. During the six months ended December 31, 1999, the Trust paid $6,824 to a broker/dealer affiliated with the Manager as reimbursement for distribution-related expenses. 15 17 CENTENNIAL TAX EXEMPT TRUST Officers and Trustees James C. Swain, Trustee and Chairman of the Board Bridget A. Macaskill, Trustee and President Robert G. Avis, Trustee William A. Baker, Trustee George C. Bowen, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Ned M. Steel, Trustee Michael J. Carbuto, Vice President Andrew J. Donohue, Vice President and Secretary Brian W. Wixted, Treasurer Robert G. Zack, Assistant Secretary Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Investment Advisor and Distributor Centennial Asset Management Corporation Transfer and Shareholder Servicing Agent Shareholder Services, Inc. Custodian of Portfolio Securities Citibank, N.A. Independent Auditors Deloitte & Touche LLP Legal Counsel Myer, Swanson, Adams & Wolf, P.C. The financial statements included herein have been taken from the records of the Trust without examination of the independent auditors. This is a copy of a report to shareholders of Centennial 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 RS0160.0011299 [ICON] Printed on recycled paper -----END PRIVACY-ENHANCED MESSAGE-----