-----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, OxhR5PmiGaMOgJVYiZVyCaml0dksvJRe2igpUKcFhYqIr1udRLljtFER6RxtB58X ll6u/a5uLF/letmf/H2RoQ== 0000950133-01-502518.txt : 20010907 0000950133-01-502518.hdr.sgml : 20010907 ACCESSION NUMBER: 0000950133-01-502518 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010630 FILED AS OF DATE: 20010906 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTENNIAL TAX EXEMPT TRUST /CO/ CENTRAL INDEX KEY: 0000319880 STANDARD INDUSTRIAL CLASSIFICATION: [] 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: 1731708 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: 34TH FLOOR CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 3410 SOUTH GALENA STREET CITY: DENVER STATE: CO ZIP: 80231 FORMER COMPANY: FORMER CONFORMED NAME: CENTENNIAL TAX EXEMPT CASH FUND INC DATE OF NAME CHANGE: 19820720 FORMER COMPANY: FORMER CONFORMED NAME: DAILY CASH TAX EXEMPT FUND INC DATE OF NAME CHANGE: 19851009 FORMER COMPANY: FORMER CONFORMED NAME: DAILY TAX EXEMPT CASH FUND INC DATE OF NAME CHANGE: 19811027 N-30D 1 q70806n-30d.txt OPPENHEIMER CENTENNIAL TAX EXEMPT TRUST 1 2001 ANNUAL REPORT CENTENNIAL TAX EXEMPT TRUST [GRAPHIC] JUNE 30, 2001 2 DEAR SHAREHOLDER: We are pleased to present this annual report for Centennial Tax Exempt Trust. For the 12-month reporting period that ended June 30, 2001, the Trust provided a 3.27% compounded annual yield.(1) Without the effects of compounding, the equivalent yield was 3.21%. As of June 30, 2001, the seven-day annualized yields, with and without compounding, were 2.34% and 2.32%, respectively.(2) The once-resilient U.S. economy finally began to reveal cracks in its armor during the 12-month reporting period. Before the period began, the Federal Reserve Board ("the Fed") had raised short-term interest rates six times in late 1999 and early 2000 to avert inflation by slowing economic growth. While inflation remained contained at the beginning of the period, it soon became apparent that the higher interest rates were slowing the economy more than was desired. Businesses and consumers began spending less freely, and declining corporate earnings led to dramatic across-the-board drops in stock prices. In response, the Fed changed course and in the first six months of 2001 launched an aggressive series of rate cuts to attempt to revive the slumping economy. Bond investors, who worry about inflation's ability to erode the value of coupon payments, paid close attention to the movement of interest rates. The expectation of future rate cuts put downward pressure on bond yields, while bond prices, which move in the opposite direction of yields, rose accordingly. Late in the reporting period, however, yields started rising again, as investors worried that the Fed's rate-cutting strategy could result in future inflation. Despite this late move, yields finished the reporting period well below their 12-month high, indicating a much more favorable environment for fixed income investments than that of previous years. Our management of the Trust was tied closely to the movements of interest rates during the period. Early on, we kept the Trust's average maturity positioned toward the short end of its range. This strategy gave us flexibility in managing the portfolio because as holdings matured, we could reinvest the available funds into securities offering higher yields. As the reporting period progressed and rates began falling, however, we sought to lengthen the Trust's average maturity to capture higher yields for as long as possible. For much of the period, the yield curve--a graphical depiction of bond yields--was inverted, meaning that securities with shorter maturities offered higher yields than those with longer ones. This unusual situation occurs when interest rates are generally expected to fall further. Although in this declining rate environ- In reviewing performance, please remember that past performance cannot guarantee future results. Yields will fluctuate. An investment in the Trust is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Trust seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Trust. (1). A portion of the Trust's distributions may be subject to income tax including state and local taxes. Capital gains distributions are taxable as capital gains. For an investor subject to alternative minimum taxes, a portion of the Trust's distributions may increase the investor's tax. Tax rates may be lower depending on individual circumstances. (2). Compounded yields assume reinvestments of dividends. The Trust's investment strategy, allocations and focus can change over time. 3 ment shorter term securities offered higher yields, we decided to sacrifice some short-term results and invest more of the Trust's assets in longer bonds to generate steadier long-term performance. In fact, our strategy proved successful when interest rates continued to decline and the Trust benefited from having locked in the higher yields. Another strategy we employed was to increase the portfolio's weighting in commercial paper (high quality securities issued by banks or corporations to finance short-term credit needs). Though commercial paper can be somewhat less liquid than the typical municipal note, these securities offer money managers a variety of maturity dates to select from. As a result, they provided us with additional flexibility to help maintain the portfolio's desired average maturity. In addition to investing in commercial paper, we purchased a wide variety of tax-exempt money-market securities, including general market notes and put bonds (bonds that can be redeemed at the holder's option on a specified date or dates). While selecting securities to add to the portfolio, we continued to exercise caution in reviewing issuers' credit profiles. Credit problems are more likely to arise during times of economic slowdown, when issuers often have fewer financial resources at their disposal. We are also closely monitoring the economic environment for California securities, including California's ongoing energy crisis, skyrocketing electricity costs, rolling blackouts, and the bankruptcy of California's largest utility company. To maintain a stable share price for Trust shareholders, we invested only in those securities that met our restrictive investment criteria. (Of course, while we strive to maintain a $1 share price, there is no guarantee that this objective will be achieved.) Looking forward, we are taking a "wait-and-see" approach with respect to our management of the Trust. With continued economic weakness, inflation still under control, and a declining interest rate environment, we believe that money market yields may still have room to fall. The economic environment remains uncertain, however, so we have structured the portfolio to allow us flexibility should conditions change unexpectedly. Regardless of economic and market conditions, we will continue to scrutinize potential investments and help select those that we believe are in the best long-term interests of Trust shareholders. Sincerely, /s/ JAMES C. SWAIN - ------------------------------ James C. Swain Chairman Centennial Tax Exempt Trust July 23, 2001 2 4 STATEMENT OF INVESTMENTS June 30, 2001 Centennial Tax Exempt Trust
PRINCIPAL VALUE AMOUNT SEE NOTE 1 ----------------- ------------- SHORT-TERM TAX-EXEMPT OBLIGATIONS--99.4% ALABAMA--0.3% Hoover, AL BOE Capital Outlay TAN, MBIA Insured, 2.79%(1) $ 4,950,000 $ 4,950,000 ------------- ALASKA--1.2% AK HCF RB, State Capital Project, Series B-1, 4.35%, 12/1/01 4,445,000 4,445,874 AK IDV & Export Authority RRB, Safeway, Inc. Project, 2.80%, 12/1/01(2) 3,210,000 3,210,000 AK International Airports RB, AMBAC Insured, 4%, 10/1/01 1,000,000 1,001,592 North Slope Borough, AK GOB, Series B, FSA Insured, 2.75%(1) 13,400,000 13,400,000 ------------- 22,057,466 ------------- ARIZONA--4.2% AZ Educational Loan Marketing Corp. RB, 2.80%(1) 10,000,000 10,000,000 Phoenix, AZ Civic Improvement Corp. WS RB, Series B, 3.10%, 7/12/01 9,700,000 9,700,000 Phoenix, AZ Civic Improvement Corp. WS RB, Series B, 3.10%, 8/2/01 25,000,000 25,000,000 Phoenix, AZ IDAU MH RRB, Paradise Lakes Apts. Project, Series 1995, 2.90%(1) 22,500,000 22,500,000 Pima Cnty., AZ IDV RB, Tucson Electric Power Project, 2.625%(1) 10,000,000 10,000,000 ------------- 77,200,000 ------------- CALIFORNIA--4.9% CA Dept. of Water Resource Revenue Trust Receipts, 3.10%(1) 32,500,000 32,500,000 CA HFA RB, Series CMC2, AMBAC Insured, 2.85%(1) 4,395,000 4,395,000 CA M-S-R PPA RRB, San Juan Project, Sub. Lien, Series E, MBIA Insured, 2.40%(1) 1,400,000 1,400,000 CA PCFAU SWD RR RB, Shell Martinez Refining, Series A, 3%(1) 5,000,000 5,000,000 Fremont, CA MH RB, Treetops Apts., Series A, 2.60%(1) 3,000,000 3,000,000 Huntington Park, CA RA MH RB, Casa Rita Apts., Series A, 2.60%(1) 1,100,000 1,100,000 Irvine Ranch, CA Water District COP, CAP Improvement Project, 3.10%(1) 2,000,000 2,000,000 Los Angeles Cnty., CA MTAU Sales Tax RB, AMBAC Insured, Series SG54, 2.53%(1) 1,000,000 1,000,000 Los Angeles, CA Airport RB, Series SG61, 2.60%(1) 3,000,000 3,000,000 Los Angeles, CA Power & Waterworks RRB, Subseries B-1, 2.55%(1) 4,400,000 4,400,000 Los Angeles, CA USD ABN AMRO Munitops Certificates, Trust 1999-7, MBIA Insured, 2.60%(1)(3) 2,000,000 2,000,000 Oceanside, CA MH RRB, Lakeridge Apts. Project, 3%(1) 10,000,000 10,000,000 Paramount City, CA HAU MH RRB, Century Place Apts. Project, Series A, 2.60%(1) 6,300,000 6,300,000 Rancho Mirage, CA Joint Powers FA COP, Eisenhower Medical Center, Series B, MBIA Insured, 2.40%(1) 3,500,000 3,500,000
3 5 STATEMENT OF INVESTMENTS June 30, 2001 (Continued) Centennial Tax Exempt Trust
PRINCIPAL VALUE AMOUNT SEE NOTE 1 ---------------- -------------- CALIFORNIA (CONTINUED) Sacramento, CA MH RB, Smoketree, Series A, 2.40%(1) $ 5,145,000 $ 5,145,000 Southeast RR FA, CA Lease RRB, Series A, 2.60%(1) 4,000,000 4,000,000 Southern CA Metropolitan Water District RB, Series B, 2.45%(1) 500,000 500,000 -------------- 89,240,000 -------------- COLORADO--2.0% Denver City & Cnty., CO Housing RB, Kentucky Circle Village Project, 2.80%(1) 4,300,000 4,300,000 E-470 Public Highway, CO RRB, Vehicle Registration Fee, 2.625%(1) 24,300,000 24,300,000 Englewood, CO IDV RRB, Safeway, Inc. Project, 2.80%, 12/1/01(2) 1,050,000 1,050,000 Fraser, CO IDV RRB, Safeway, Inc. Project, 2.80%, 12/1/01(2) 760,000 760,000 Holland Creek Metropolitan District, CO RB, 3.10%(1) 4,000,000 4,000,000 Idaho Springs, CO IDV RRB, Safeway, Inc. Project, 2.80%, 12/1/01(2) 1,480,000 1,480,000 -------------- 35,890,000 -------------- FLORIDA--6.3% Collier Cnty., FL IDAU Education Facilities RB, Community School of Naples Project, 2.70%(1) 8,400,000 8,400,000 Collier Cnty., FL IDAU RB, Gulf Coast American Blind, Series A, 2.92%(1) 3,000,000 3,000,000 Dade Cnty., FL WSS RB, FGIC Insured, 2.78%(1) 9,900,000 9,900,000 FL BOE Capital Outlay GOUN, Series 286, 2.76%(1) 2,600,000 2,600,000 FL HFA MH RRB, Monterey Lake Project, 2.70%(1) 18,665,000 18,665,000 FL MPA RB, 2.80%, 7/18/01 17,727,000 17,727,000 FL TUAU RB, Series A, FGIC Insured, 2.78%(1) 14,850,000 14,850,000 Hillsborough Cnty., FL IDAU PC COP, Tampa Electric Co. Project, MBIA Insured, 2.78%(1) 17,795,000 17,795,000 Hillsborough Cnty., FL IDAU PC RB, Tampa Electric Co. Project, 2.78%(1) 17,795,000 17,795,000 Lee Cnty., FL Airport & Marina ABN Amro Munitops Certificates, Trust 2000-3, FSA Insured, 2.82%(1) 4,890,000 4,890,000 -------------- 115,622,000 --------------
4 6 STATEMENT OF INVESTMENTS June 30, 2001 (Continued) Centennial Tax Exempt Trust
PRINCIPAL VALUE AMOUNT SEE NOTE 1 ---------------- ------------- GEORGIA--6.5% Burke Cnty., GA DAU PC RB, Oglethorpe Power Corp., AMBAC Insured, 2.65%, 7/23/01(2) $ 15,000,000 $ 15,000,000 Burke Cnty., GA DAU PC RB, Oglethorpe Power Corp., AMBAC Insured, 2.75%, 7/17/01(2) 9,600,000 9,600,000 Burke Cnty., GA DAU PC RB, Oglethorpe Power Corp., AMBAC Insured, 3.05%, 7/23/01(2) 18,000,000 18,000,000 Burke Cnty., GA DAU PC RB, Oglethorpe Power Corp., AMBAC Insured, 3.10%, 7/17/01 20,000,000 20,000,000 Cobb Cnty., GA HAU MH RRB, Terrell Mill Project, 2.90%(1)(3) 11,200,000 11,200,000 Fulton Cnty., GA DAU RB, Georgia Tech Athletic Assn., Inc., 2.70%(1) 2,900,000 2,900,000 Fulton Cnty., GA DAU RB, Lovett School Project, 2.70%(1) 3,000,000 3,000,000 Fulton Cnty., GA Facilities Corp. COP, Public Purpose Project, 5%, 11/1/01 4,060,000 4,085,624 GA GOB, Series 1995B, 2.78%(1) 11,880,000 11,880,000 Roswell, GA HAU MH RRB, Oxford Project, 3.80%(1) 23,610,000 23,610,000 ------------- 119,275,624 ------------- IDAHO--0.7% Custer Cnty., ID PC RB, Amoco Standard Oil of Indiana, 3.10%, 10/1/01(2) 12,500,000 12,500,000 ------------- ILLINOIS--6.2% Chicago, IL ABN AMRO Munitops Certificates, Trust 1998-3, 2.79%(1)(3) 8,735,000 8,735,000 Chicago, IL Gas Supply RRB, Peoples Gas Light & Coke Co., Series C, 2.82%(1) 8,000,000 8,000,000 Chicago, IL RB, Lakefront Millennium Parking Facility, 2.78%(1) 22,495,000 22,495,000 Elk Grove Village, IL IDV RB, La Quinta Motor Inns, Inc., 3.20%(1) 1,000,000 1,000,000 IL Development FAU RB, 2.85%(1) 8,500,000 8,500,000 IL Development FAU RB, Local Government Financing Program, Series A, AMBAC Insured, 2.85%, 7/23/01 5,700,000 5,700,000 IL EDFAU RB, Chicago YMCA, 3.30%(1) 20,000,000 20,000,000 IL Educational FA RB, 3.05%, 7/23/01 8,385,000 8,385,000 IL Educational FA RB, 3.10%, 8/1/01 20,000,000 20,000,000 Regional Transportation Authority, IL Municipal Trust Certificates ZTC-19, Cl. A, 2.78%(1)(3) 10,725,000 10,725,000 ------------- 113,540,000 -------------
5 7 STATEMENT OF INVESTMENTS June 30, 2001 (Continued) Centennial Tax Exempt Trust
PRINCIPAL VALUE AMOUNT SEE NOTE 1 ---------------- ------------- INDIANA--3.7% Dyer, IN HCF RRB, Regency Place, Series A-1, 2.91%(1) $ 3,055,000 $ 3,055,000 Fort Wayne, IN HCF RRB, Health Quest, Series X-A, 2.91%(1) 2,625,000 2,625,000 IN Environmental Development FAU RRB, USX Corp. Project, 2.60%, 8/9/01(2) 7,000,000 7,000,000 IN HFFAU RB, Capital Access Designated Pool, 2.90%(1) 15,900,000 15,900,000 IN MPA RB, PPS, MBIA Insured, 2.78%(1) 13,600,000 13,600,000 Indianapolis, IN HCF RRB, Health Quest, Series A, 2.91%(1) 3,615,000 3,615,000 Indianapolis, IN Local Public Improvement Board Bank RRB, Series E, 4.75%, 7/9/01 5,100,000 5,100,544 Kokomo, IN ED RB, Village Community Partner IV, 2.83%(1) 2,640,000 2,640,000 Lawrence/Fort Harrison, IN Reuse Authority Tax Increment RB, Harrison Military Base, 2.82%(1) 3,115,000 3,115,000 Marion Cnty., IN HA Hospital Facility RB, Indianapolis Osteopathic, 2.83%(1) 1,320,000 1,320,000 Merrillville, IN HCF RRB, Southlake, Series A-1, 2.91%(1) 3,485,000 3,485,000 Monroe Cnty., IN HA RRB, MBIA Insured, 2.65%(1) 3,500,000 3,500,000 South Bend, IN HCF RRB, Fountainview, Series A-1, 2.91%(1) 2,905,000 2,905,000 ------------ 67,860,544 ------------ IOWA--0.3% IA FAU Hospital Facilities RRB, Iowa Health Systems, Series B, AMBAC Insured, 2.70%(1) 4,605,000 4,605,000 ------------ KANSAS--0.3% Manhattan, KS Industrial RRB, Parker Hannifin, Inc. Project, 2.75%(1) 6,000,000 6,000,000 ------------ KENTUCKY--1.3% KY EDFAU RRB, Baptist Convalescent Center, 2.90%(1) 4,870,000 4,870,000 KY Rural Water Financial Corp. RB, Flexible Term Program, 3.07%(1) 18,580,000 18,580,000 ------------ 23,450,000 ------------ LOUISIANA--2.8% LA GOUN, Series A, FGIC Insured, 5.50%, 11/15/01 10,030,000 10,072,859 LA PFFAU RB, Willis-Knighton Medical Center Project, 2.70%(1) 10,000,000 10,000,000 New Orleans, LA IDV Board MH RB, Orleans LLC Project, Series 3700, 2.88%(1) 9,000,000 9,000,000 St. James Parish, LA PC RRB, Texaco Project, Series A, 2.95%, 11/9/01(2) 22,530,000 22,530,000 ------------ 51,602,859 ------------
6 8 STATEMENT OF INVESTMENTS June 30, 2001 (Continued) Centennial Tax Exempt Trust
PRINCIPAL VALUE AMOUNT SEE NOTE 1 ---------------- ------------- MARYLAND--1.4% Anne Arundel Cnty., MD ED RB, West Capital, Series A, 2.80%(1) $ 6,000,000 $ 6,000,000 Hyattsville, MD IDV RRB, Safeway, Inc. Project, 2.80%, 12/1/01(2) 1,580,000 1,580,000 MD Health & HEFAU Pooled Loan Program RB, John Hopkins Hospital, 2.65%, 8/1/01 17,000,000 17,000,000 MD Health & HEFAU RB, University of Maryland Pooled Loan Program, Series B, 3.60%(1) 810,000 810,000 ------------- 25,390,000 ------------- MASSACHUSETTS--3.2% MA REF GOUN, Series B, 2.45%(1) 30,000,000 30,000,000 MA REF GOB, Prerefunded, Series B, 6.50%, 8/1/01(2) 2,260,000 2,309,531 MA Water Resources Authority RRB, Series B, 2.50%(1) 25,000,000 25,000,000 Worcester, MA GOB, MBIA Insured, 5.25%, 8/1/01 1,250,000 1,251,028 ------------- 58,560,559 ------------- MICHIGAN--1.3% MI Job DAU RB, East Lansing Residence Associates Project, 3.20%(1) 1,900,000 1,900,000 MI School Loan GOB, 3.20%, 10/3/01 4,000,000 4,000,000 MI Strategic Fund Ltd. Obligation RB, Village at Brighton LLC Project, 2.70%(1) 5,570,000 5,570,000 Rochester, MI Community SDI GOUN, Series 289, 2.76%(1) 3,745,000 3,745,000 St. Clair Cnty., MI ED RRB, Series 282, AMBAC Insured, 2.78%(1) 8,000,000 8,000,000 ------------- 23,215,000 ------------- MINNESOTA--1.8% Minneapolis, MN CD RRB, Minnehaha/Lake Partners Project, 2.80%(1) 2,750,000 2,750,000 MN GOB, 2.78%(1) 16,010,000 16,010,000 MN GOUN, 5%, 8/1/01 1,000,000 1,000,720 New Ulm, MN Hospital Facilities RB, Health Center Systems, 2.40%(1) 2,200,000 2,200,000 North Suburban Hospital District, MN RB, Anoka & Ramsey Cntys Hospital Health Center, 2.40%(1) 3,200,000 3,200,000 St. Paul, MN POAU Tax Increment RB, Westgate Office & Industrial Center Project, 2.80%(1) 7,660,000 7,660,000 ------------- 32,820,720 -------------
7 9 STATEMENT OF INVESTMENTS June 30, 2001 (Continued) Centennial Tax Exempt Trust
PRINCIPAL VALUE AMOUNT SEE NOTE 1 ---------------- -------------- MISSOURI--0.7% MO HEAU Student Loan RB, Series A, 2.75%(1) $ 12,300,000 $ 12,300,000 -------------- MONTANA--0.2% Great Falls, MT IDV RRB, Safeway, Inc. Project, 2.80%, 12/1/01(2) 1,445,000 1,445,000 Havre, MT IDV RRB, Safeway, Inc. Project, 2.80%, 12/1/01(2) 1,345,000 1,345,000 -------------- 2,790,000 -------------- NEVADA--2.6% Clark Cnty., NV SDI GOLB, Series A, FSA Insured, 3.15%(1) 10,000,000 10,000,000 NV Municipal Securities Trust Receipts, Series SG 114, 2.76%(1) 20,350,000 20,350,000 Washoe Cnty., NV ABN AMRO Munitops Certificates, Single Asset Trust Certificates, Trust 2001-24, FGIC Insured, 2.79%(1) 16,090,000 16,090,000 -------------- 46,440,000 -------------- NEW YORK--5.9% Jay Street Development Corp. NYC Facilities Lease RB, Jay Street Project, Series A-3, 2.40%(1) 1,500,000 1,500,000 NYC HDC MH RB, Monterey Project, Series A, 2.45%(1) 9,000,000 9,000,000 NYC MWFAU WSS RB, Series C, FGIC Insured, 3.15%(1) 2,200,000 2,200,000 NYC MWFAU WSS RRB, Series F-1, 3.15%(1) 13,400,000 13,400,000 NYS DA RB, MBIA/IBC Insured, 2.53%(1) 2,600,000 2,600,000 NYS ERDAUEF RB, Consolidated Edison, Subseries A3, 2.50%(1) 3,000,000 3,000,000 NYS HFA RB, East 39 Street Housing, Series A, 2.50%(1) 3,500,000 3,500,000 NYS HFA RB, Victory Housing, Series A, 2.55%(1) 1,500,000 1,500,000 NYS LGAC RB, Series 1040, 2.51%(1) 1,500,000 1,500,000 NYS LGAC RB, Series SG100, MBIA Insured, 2.51%, 10/1/01(2) 10,420,000 10,420,000 NYS LGAC RB, Series SG99, MBIA Insured, 2.51%, 10/1/01(2) 27,595,000 27,595,000 NYS MAG RB, Series CMC1, 2.80%(1) 4,045,000 4,045,000 NYS TBTAU RB, Series SG-41, MBIA Insured, 2.51%(1) 1,730,000 1,730,000 NYS TBTAU RB, Series T, 3.25%, 7/31/01(2)(3) 11,400,000 11,400,000 NYS TBTAU SPO RRB, Series A, FSA Insured, 2.50%(1) 10,630,000 10,630,000 PAUNYNJ SPO RRB, Versatile Structure-4, 3.30%(1) 3,290,000 3,290,000 -------------- 107,310,000 --------------
8 10 STATEMENT OF INVESTMENTS June 30, 2001 (Continued) Centennial Tax Exempt Trust
PRINCIPAL VALUE AMOUNT SEE NOTE 1 ---------------- -------------- NORTH CAROLINA--0.3% NC Capital Facilities FA Student RB, Housing Facilities NCA & T University Foundation, 2.70%(1) $ 5,700,000 $ 5,700,000 -------------- OHIO--2.3% Clinton Cnty., OH Hospital RB, Ohio Hospital Capital, Inc., 2.85%(1) 24,000,000 24,000,000 Gallia Cnty., OH IDV Mtg. RRB, Jackson Pike Assn., 2.95%, 12/15/01(2) 3,175,000 3,175,000 Scioto Cnty., OH HCF RB, Hill View Retirement Center, 3.10%, 12/1/01(2) 4,115,000 4,115,000 University of Cincinnati, OH COP, Series 232, MBIA Insured, 2.76%(1) 10,575,000 10,575,000 -------------- 41,865,000 -------------- PENNSYLVANIA--6.0% Cumberland Cnty., PA Municipal Authority College RRB, Dickinson College, Series B, AMBAC Insured, 5%, 11/1/01(2) 2,700,000 2,705,723 Delaware Cnty., PA IDA PC RB, Philadelphia Electric, Series B, FGIC Insured, 2.45%, 7/23/01(2) 16,000,000 16,000,000 Delaware Cnty., PA IDAU PC RB, Philadelphia Electric, FGIC Insured, 2.65%, 8/1/01(2) 11,200,000 11,200,000 Delaware Cnty., PA PC RB, Philadelphia Electric, Series B, FGIC Insured, 3.05%, 7/23/01(2) 12,600,000 12,600,000 Monroe Cnty., PA HA RB, Pocono Medical Center, Series C, 2.80%(1) 2,835,000 2,835,000 PA GOUN, 2.78%(1) 17,800,000 17,800,000 PA HEFAU RB, Assn. of Independent Colleges & Universities, Series G1, 5%, 11/1/01(2) 3,500,000 3,507,361 PA HEFAU RB, Assn. of Independent Colleges & Universities, Series G3, 5%, 11/1/01(2) 1,300,000 1,302,628 PA HEFAU RB, Assn. of Independent Colleges & Universities, Series G4, 5%, 11/1/01(2) 1,000,000 1,002,022 PA HEFAU RB, CICU Financing Program, Series B6, 4.40%, 11/1/01(2) 4,600,000 4,600,000 PA MBIA Capital Corp. Grantor Lease Back RB, MBIA Insured, 2.88%(1) 30,000,000 30,000,000 Philadelphia, PA Municipal Authority RB, Justice Lease, Prerefunded, Series B, FGIC Insured, 7.125%, 11/15/01(2) 5,400,000 5,586,692 -------------- 109,139,426 --------------
9 11 STATEMENT OF INVESTMENTS June 30, 2001 (Continued) Centennial Tax Exempt Trust
PRINCIPAL VALUE AMOUNT SEE NOTE 1 ---------------- ------------- SOUTH CAROLINA--1.8% SC Education FA for Private Nonprofit Institutions RB, Columbia College Project, 2.70%(1) $ 10,000,000 $ 10,000,000 SC POAU ABN AMRO Munitops Certificates, Trust 1998-7, 2.82%(1) 7,325,000 7,325,000 SC Public Service Authority RB, Series 182, MBIA Insured, 2.78%(1) 14,850,000 14,850,000 ------------- 32,175,000 ------------- TENNESSEE--3.0% Shelby Cnty., TN Educational, Housing & HF RB, Baptist Memorial Hospital, 2.65%, 8/16/01(2) 5,700,000 5,700,000 TN GOB, 2.80%, 7/18/01 25,000,000 25,000,000 TN GOB, 3.15%, 7/13/01 24,600,000 24,600,000 ------------- 55,300,000 ------------- TEXAS--17.8% Austin, TX Travis & Williamson Cntys. Utility System RB, 2.60%, 8/1/01 10,000,000 10,000,000 Bexar Metropolitan Water District, TX RB, 3.10%, 7/25/01 9,000,000 9,000,000 Brownsville, TX Utility System RB, MBIA Insured, 2.65%(1) 6,000,000 6,000,000 De Soto, TX IDAU RRB, National Service Industries, Inc. Project, 2.75%(1) 7,150,000 7,150,000 Gulf Coast, TX IDAU Marine Terminal RB, Amoco Oil Project, 2.75%, 12/1/01(2) 4,000,000 4,000,000 Harris Cnty., TX Criminal Justice Center RB, Series SG96, FGIC Insured, 2.76%(1) 7,475,000 7,475,000 Harris Cnty., TX Toll Road COP, 2.78%(1) 9,900,000 9,900,000 Hockley Cnty., TX IDV Corp. PC RB, Amoco Project, 3.05%, 11/1/01(2) 5,000,000 5,000,000 Houston, TX GOB, Series A, 2.65%, 10/11/01 8,000,000 8,000,000 Houston, TX GOB, Series A, 3.05%, 7/23/01 13,900,000 13,900,000 Houston, TX GOB, Series A, 3.10%, 8/1/01 25,000,000 25,000,000 Houston, TX GOB, Series B, 2.60%, 7/26/01 27,600,000 27,600,000 Houston, TX GOB, Series B, 2.65%, 10/11/01 4,000,000 4,000,000 Houston, TX GOB, Series C, 2.65%, 10/11/01 3,000,000 3,000,000 Houston, TX GOB, Series C, 3.10%, 8/1/01 5,000,000 5,000,000 Houston, TX ISD Municipal Trust Certificates ZTC-21, Cl. A, FSA Insured, 2.83%(1) 12,700,000 12,700,000 Houston, TX WSS RB, Series SG120, 2.76%(1) 37,600,000 37,600,000 North Central, TX HFDC RB, Dallas Methodist Hospital, AMBAC Insured, 2.75%, 9/10/01(2) 22,900,000 22,900,000 North TX HEAU, Inc. Student Loan RB, Series A, 2.75%(1) 10,840,000 10,840,000 San Antonio, TX Electric & Gas RRB, Series G-101, 2.76%(1) 20,200,000 20,200,000
10 12 STATEMENT OF INVESTMENTS June 30, 2001 (Continued) Centennial Tax Exempt Trust
PRINCIPAL VALUE AMOUNT SEE NOTE 1 ---------------- -------------- TEXAS (CONTINUED) San Antonio, TX Electric & Gas RRB, Series SG105, 2.80%(1) $ 20,000,000 $ 20,000,000 San Antonio, TX Water RB, 2.78%(1) 4,000,000 4,000,000 TX TAN & RAN, 5.25%, 8/31/01 36,000,000 36,056,406 TX TUAU RB, Dallas Northtollway, Series SG70, 2.76%(1) 15,325,000 15,325,000 -------------- 324,646,406 -------------- UTAH--2.7% Eagle Mountain, UT Gas & Electric RRB, 2.65%(1) 17,625,000 17,625,000 Intermountain Power Agency, UT Power Supply RB, AMBAC Insured, 2.65%, 7/30/01(2) 5,800,000 5,800,000 Intermountain Power Agency, UT Power Supply RB, AMBAC Insured, 3.15%, 8/20/01 14,600,000 14,600,000 Salt Lake City, UT TAN & RAN, 3.50%, 12/28/01 10,000,000 10,041,213 Tremonton City, UT IDV RRB, Safeway, Inc. Project, 2.80%, 12/1/01(2) 445,000 445,000 -------------- 48,511,213 -------------- VIRGINIA--1.4% Peninsula Ports Authority, VA Coal Terminal RRB, Dominion Terminal Project-A, 2.75%, 7/23/01(2)(4) 15,835,000 15,835,000 Pulaski Cnty., VA IDAU RRB, Pulaski Furniture Project, 2.85%(1) 8,900,000 8,900,000 Stafford, VA IDV RRB, Safeway, Inc. Project, 2.80%, 12/1/01(2) 715,000 715,000 -------------- 25,450,000 -------------- WASHINGTON--2.8% King Cnty., WA ABN AMRO Munitops Certificates, Trust 2001-1, MBIA Insured, 2.79%(1) 7,770,000 7,770,000 Kitsap Cnty., WA SDI No. 401 GOUN, Series 252, MBIA Insured, 2.76%(1) 3,460,000 3,460,000 WA GORB, Series 1995C, 2.78%(1) 13,710,000 13,710,000 WA Municipal Trust Certificates ZTC-10, Cl. A, 2.78%(1)(3) 12,935,000 12,935,000 WA Municipal Trust Certificates ZTC-11, Cl. A, 2.78%(1)(3) 13,570,000 13,570,000 -------------- 51,445,000 --------------
11 13 STATEMENT OF INVESTMENTS June 30, 2001 (Continued) Centennial Tax Exempt Trust
PRINCIPAL VALUE AMOUNT SEE NOTE 1 ---------------- ---------------- WEST VIRGINIA--1.1% Marion Cnty., WV Commission SWD Facilities RB, Granttown Project-D, 2.75%(1) $ 14,100,000 $ 14,100,000 WV Road GOB ABN AMRO Munitops Certificates, Series 1999-4, 3%, 11/28/01(2) 6,000,000 6,000,000 ---------------- 20,100,000 ---------------- WISCONSIN--0.6% WI Center District Tax RB, 2.75%(1) 10,000,000 10,000,000 ---------------- WYOMING--0.3% Evanston, WY IDV RRB, Safeway, Inc. Project, 2.80%, 12/1/01(2) 3,700,000 3,700,000 Lincoln Cnty., WY PC RRB, Amoco Oil Co. of Indiana Project, 3.30%, 10/1/01(2) 2,000,000 2,000,981 ---------------- 5,700,981 ---------------- OTHER TERRITORIES--1.5% Greystone Tax Exempt Certificates RB, Trust 1998-1, Sr. Certificate Beneficial Ownership, 2.88%(1) 27,800,000 27,800,000 ---------------- Total Investments, at Value (Cost $1,810,452,798) 99.4% 1,810,452,798 ---------------- Other Assets Net of Liabilities 0.6 11,281,973 ---------------- ---------------- Net Assets 100.0% $ 1,821,734,771 ================ ================
12 14 STATEMENT OF INVESTMENTS June 30, 2001 (Continued) Centennial Tax Exempt Trust To simplify the listings of securities, abbreviations are used per the table below: BOE--Board of Education MAG--Mtg. Agency CAP--Capital Appreciation MH--Multifamily Housing CD--Commercial Development MPA--Municipal Power Agency COP--Certificates of Participation MTAU--Metropolitan DA--Dormitory Authority Transportation Authority DAU--Development Authority MWFAU--Municipal Water Finance Authority ED--Economic Development NYC--New York City EDFAU--Economic Development Finance Authority NYS--New York State ERDAUEF--Energy Research & Development Authority PAUNYNJ--Port Authority of New York & New Jersey Electric Facilities PC--Pollution Control FA--Facilities Authority PCFAU--Pollution Control Finance Authority FAU--Finance Authority PFFAU--Public Facilities Finance Authority GOB--General Obligation Bonds POAU--Port Authority GOLB--General Obligation Limited Bonds PPA--Public Power Agency GORB--General Obligation Refunding Bonds PPS--Public Power System GOUN--General Obligation Unlimited Nts. RA--Redevelopment Agency HA--Hospital Authority RAN--Revenue Anticipation Nts. HAU--Housing Authority RB--Revenue Bonds HCF--Healthcare Facilities REF--Refunding HDC--Housing Development Corp. RR--Resource Recovery HEAU--Higher Education Authority RRB--Revenue Refunding Bonds HEFAU--Higher Educational Facilities Authority SDI--School District HFA--Housing Finance Agency SPO--Special Obligations HFDC--Health Facilities Development Corp. SWD--Solid Waste Disposal HFFAU--Health Facilities Finance Authority TAN--Tax Anticipation Nts. IDV--Industrial Development TBTAU--Triborough Bridge & Tunnel Authority IDA--Industrial Development Agency TUAU--Turnpike Authority IDAU--Industrial Development Authority USD--Unified School District ISD--Independent School District WS--Water System LGAC--Local Government Assistance Corp. WSS--Water & Sewer System
1. Floating or variable rate obligation maturing in more than one year. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on June 30, 2001. 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. Put obligation redeemable at full face value on the date reported. 3. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $70,565,000 or 3.87% of the Trust's net assets as of June 30, 2001. 4. Identifies issues considered to be illiquid or restricted--See Note 4 of Notes to Financial Statements. See accompanying Notes to Financial Statements. 13 15 STATEMENT OF ASSETS AND LIABILITIES June 30, 2001 Centennial Tax Exempt Trust
ASSETS Investments, at value (Cost $1,810,452,798)--see accompanying statement $ 1,810,452,798 Cash 3,549,599 Receivables and other assets: Shares of beneficial interest sold 13,437,541 Interest 11,643,209 Other 244,212 ---------------- Total assets 1,839,327,359 ---------------- LIABILITIES Payables and other liabilities: Shares of beneficial interest redeemed 16,320,003 Dividends 1,067,427 Service plan fees 99,734 Shareholder reports 54,373 Trustees' compensation 12,683 Other 38,368 ---------------- Total liabilities 17,592,588 ---------------- NET ASSETS $ 1,821,734,771 ================ COMPOSITION OF NET ASSETS Paid-in capital $ 1,822,079,970 Accumulated net realized gain (loss) on investment transactions (345,199) ---------------- NET ASSETS--applicable to 1,822,095,938 shares of beneficial interest outstanding $ 1,821,734,771 ================ NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND OFFERING PRICE PER SHARE $ 1.00
See accompanying Notes to Financial Statements. 14 16 STATEMENT OF OPERATIONS For the Year Ended June 30, 2001 Centennial Tax Exempt Trust INVESTMENT INCOME--Interest $ 69,492,412 ---------------- EXPENSES Management fees 7,527,359 Service plan fees 3,538,029 Transfer and shareholder servicing agent fees 483,258 Custodian fees and expenses 186,291 Shareholder reports 146,733 Trustees' compensation 26,025 Legal, auditing and other professional fees 15,957 Other 597,786 ---------------- Total expenses 12,521,438 Less reduction to custodian expenses (178,392) ---------------- Net expenses 12,343,046 ---------------- NET INVESTMENT INCOME 57,149,366 ---------------- NET REALIZED GAIN (LOSS) ON INVESTMENTS 294,983 ---------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 57,444,349 ================
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED JUNE 30, 2001 2000 -------------------- --------------------- OPERATIONS Net investment income (loss) $ 57,149,366 $ 50,998,995 Net realized gain (loss) 294,983 (159,972) -------------------- -------------------- Net increase (decrease) in net assets resulting from operations 57,444,349 50,839,023 -------------------- -------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS (57,149,366) (50,998,995) -------------------- -------------------- BENEFICIAL INTEREST TRANSACTIONS Net increase (decrease) in net assets resulting from beneficial interest transactions 129,890,148 (57,771,643) -------------------- -------------------- NET ASSETS Total increase (decrease) 130,185,131 (57,931,615) Beginning of period 1,691,549,640 1,749,481,255 -------------------- -------------------- End of period $ 1,821,734,771 $ 1,691,549,640 ==================== ====================
See accompanying Notes to Financial Statements. 15 17 FINANCIAL HIGHLIGHTS Centennial Tax Exempt Trust
YEAR ENDED JUNE 30, -------------------------------------------------------- 2001 2000 1999 1998 1997 ---------- ---------- ---------- ----------- ---------- PER SHARE OPERATING DATA Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from investment operations-- net investment income and net realized gain .03 .03 .03 .03 .03 Dividends and/or distributions to shareholders (.03) (.03) (.03) (.03) (.03) -------- -------- ------- ------- ------- Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= ======= ======= TOTAL RETURN(1) 3.26% 3.01% 2.61% 3.12% 3.01% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in millions) $ 1,822 $ 1,692 $ 1,749 $ 1,829 $ 1,649 Average net assets (in millions) $ 1,779 $ 1,737 $ 1,896 $ 1,832 $ 1,591 Ratios to average net assets:(2) Net investment income 3.21% 2.94% 2.58% 3.07% 2.95% Expenses 0.70% 0.72% 0.69% 0.69%(3) 0.72%(3) Expenses, net of reduction to custodian expenses 0.69% N/A N/A N/A N/A
(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 of less than one full year. (3) Expense ratio reflects the reduction to custodian expenses. See accompanying Notes to Financial Statements. 16 18 NOTES TO FINANCIAL STATEMENTS 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 an 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, 2001, the Trust had available for federal income tax purposes unused capital loss carryovers as follows:
EXPIRING ------------------------ 2007 $ 243,131 2008 88,401 ------------ Total $ 331,532 ============
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 17 19 NOTES TO FINANCIAL STATEMENTS (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:
YEAR ENDED JUNE 30, 2001 YEAR ENDED JUNE 30, 2000 ------------------------------------ ----------------------------------- SHARES AMOUNT SHARES AMOUNT ----------------------------------- ----------------------------------- Sold 5,201,579,181 $ 5,201,579,181 5,849,279,745 $ 5,849,279,745 Dividends and/or distributions reinvested 57,547,779 57,547,779 49,019,366 49,019,366 Redeemed (5,129,236,812) (5,129,236,812) (5,956,070,754) (5,956,070,754) --------------- ----------------- --------------- ----------------- Net increase (decrease) 129,890,148 $ 129,890,148 (57,771,643) $ (57,771,643) =============== ================= =============== =================
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Management Fees. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust which provides for a fee of 0.50% of the first $250 million of the Trust's net assets; 0.475% of the next $250 million; 0.45% of the next $250 million; 0.425% of the next $250 million; 0.40% of the next $250 million; 0.375% of the next $250 million; 0.35% of the next $500 million and 0.325% of net assets in excess of $2 billion. Under the 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. However, the annual fee cannot be less than $0. The Trust's management fee for the year ended June 30, 2001, was an annualized rate of 0.42%. Transfer Agent Fees. Shareholder Services, Inc. (SSI) acts as the transfer and shareholder servicing agent for the Trust and for other registered investment companies. The Trust pays SSI an annual maintenance fee for each Trust shareholder account. Service Plan Fees. Under an approved service plan, the Trust may expend up to 0.20% of its average annual 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 financial institutions. During the year ended June 30, 2001, the Trust paid $10,068 to a broker-dealer affiliated with the Manager as reimbursement for distribution-related expenses. 18 20 NOTES TO FINANCIAL STATEMENTS (Continued) Centennial Tax Exempt Trust 4. ILLIQUID OR RESTRICTED SECURITIES As of June 30, 2001, investments in securities included issues that are illiquid or restricted. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Trustees as reflecting fair value. A security may also be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Trust intends to invest no more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid or restricted securities. Certain restricted securities, eligible for resale to qualified institutional investors, are not subject to that limitation. The aggregate value of illiquid or restricted securities subject to this limitation as of June 30, 2001, was $15,835,000, which represents 0.87% of the Trust's net assets, all of which is considered restricted. Information concerning restricted securities is as follows:
VALUATION PER ACQUISITION COST UNIT AS OF SECURITY DATE PER UNIT JUNE 30, 2001 -------------------------- --------------- ------------- --------------- SHORT-TERM NOTES Peninsula Ports Authority, VA Coal Terminal RRB, Dominion Terminal Project-A, 2.75%, 7/23/01 6/13/01 $ 1.00 $ 1.00
19 21 INDEPENDENT AUDITORS' REPORT Centennial Tax Exempt Trust To the Shareholders and Board of Trustees of Centennial Tax Exempt Trust: We have audited the accompanying statement of assets and liabilities of Centennial Tax Exempt Trust, including the statement of investments, as of June 30, 2001, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2001, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Centennial Tax Exempt Trust as of June 30, 2001, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Denver, Colorado July 23, 2001 20 22 SHAREHOLDER MEETING (Unaudited) Centennial Tax Exempt Trust On January 26, 2001, a shareholder meeting was held at which all of the nominated Trustees were elected and all proposals were approved by shareholders as described in the Trust's proxy statement for that meeting. The following is a report of the votes cast: PROPOSAL NO. 1: The twelve persons named below to serve as Trustee of the Trust until their successors are elected and shall qualify:
NOMINEE FOR WITHHELD TOTAL ---------------------------- ----------------- ----------------- ------------- William L. Armstrong 815,081,111 20,850,221 835,931,332 Robert G. Avis 816,158,061 19,773,271 835,931,332 George C. Bowen 816,830,230 19,101,102 835,931,332 Edward L. Cameron 816,991,767 18,939,565 835,931,332 Jon S. Fossel 814,579,719 21,351,613 835,931,332 Sam Freedman 817,181,502 18,749,830 835,931,332 Raymond J. Kalinowski 812,099,584 23,831,748 835,931,332 C. Howard Kast 811,668,162 24,263,170 835,931,332 Robert M. Kirchner 810,225,318 25,706,014 835,931,332 Bridget A. Macaskill 816,147,415 19,783,917 835,931,332 F. William Marshall 815,640,490 20,290,842 835,931,332 James C. Swain 816,379,898 19,551,434 835,931,332
FOR AGAINST ABSTAIN TOTAL ---------------------------- ----------------- ----------------- -------------
PROPOSAL NO. 2: Ratification of the selection of Deloitte & Touche LLP as independent auditors for the Trust for the fiscal year beginning July 1, 2000. 805,571,902 6,347,557 24,011,873 835,931,332
FOR AGAINST ABSTAIN BROKER NON-VOTES TOTAL ----------- ---------- ---------- ------------------ -------
PROPOSAL NO. 3: Approval of an amendment to the Trust's fundamental investment restriction on concentration. 746,872,873 37,870,968 51,185,900 1,591 835,931,332
PROPOSAL NO. 4: Approval of authorizing the Trustees to adopt an Amended and Restated Declaration of Trust. 723,600,594 58,304,324 54,024,823 1,591 835,931,332
21 23 FEDERAL TAX INFORMATION (Unaudited) Centennial Tax Exempt Trust In early 2002 shareholders will receive information regarding all dividends and distributions paid to them by the Trust during calendar year 2001. Regulations of the U.S. Treasury Department require the Trust to report this information to the Internal Revenue Service. None of the dividends paid by the Trust during the year ended June 30, 2001, are eligible for the corporate dividend-received deduction. The dividends were derived from interest on municipal bonds and are not subject to federal income tax. To the extent a shareholder is subject to any state or local tax laws, some or all of the dividends received may be taxable. The foregoing information is presented to assist shareholders in reporting distributions received from the Trust to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. 22 24 This page intentionally left blank. 25 CENTENNIAL TAX EXEMPT TRUST Officers and Trustees James C. Swain, Trustee, CEO and Chairman of the Board Bridget A. Macaskill, Trustee and President William L. Armstrong, Trustee Robert G. Avis, Trustee George C. Bowen, Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee F. William Marshall, Jr., Trustee Michael J. Carbuto, Vice President Andrew J. Donohue, Vice President and Secretary Brian W. Wixted, Treasurer Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary Investment Advisor and Distributor Centennial Asset Management Corporation Transfer and Shareholder Servicing Agent Shareholder Services, Inc. Custodian of Portfolio Securities Citibank, N.A Independent Auditors Deloitte & Touche LLP Legal Counsel Myer, Swanson, Adams & Wolf, P.C For more complete information about Centennial Tax Exempt Trust, please refer to the Prospectus. To obtain a copy, call your financial advisor, or contact Centennial Asset Management Corp. at 1.800.525.9310. Please read the prospectus carefully before you invest any money RA0160.001.0601 [RECYCLED PAPER LOGO] PRINTED ON RECYCLED PAPER -----END PRIVACY-ENHANCED MESSAGE-----