-----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, GTv81t2SUOCLGU6MY4qtCy+XreaH2PBK0/lMnP901XPD2/jRfS1smiOVvD7bqHHj W1P3/uW0ZyimNun+rWpyLw== 0000950133-02-000656.txt : 20020414 0000950133-02-000656.hdr.sgml : 20020414 ACCESSION NUMBER: 0000950133-02-000656 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011231 FILED AS OF DATE: 20020222 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTENNIAL TAX EXEMPT TRUST /CO/ CENTRAL INDEX KEY: 0000319880 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: 02556451 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: 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 FORMER COMPANY: FORMER CONFORMED NAME: CENTENNIAL TAX EXEMPT CASH FUND INC DATE OF NAME CHANGE: 19820720 N-30D 1 q74910n-30d.txt OPPENHEIMER CENTENIAL TAX-EXEMPT TRUST SEMI-ANNUAL 2001 SEMIANNUAL REPORT CENTENNIAL TAX EXEMPT TRUST DECEMBER 31, 2001 DEAR SHAREHOLDER: We are pleased to present this semiannual report for Centennial Tax Exempt Trust. For the six-month reporting period that ended December 31, 2001, the Trust provided a 1.54% compounded annual yield.(1) Without the effects of compounding, the equivalent yield was 1.53%. For investors in the 36% federal tax bracket, this is equivalent to a taxable yield of 2.41% with compounding and 2.39% without compounding. As of December 31, 2001, the seven-day annualized yields, with and without compounding, were 1.06% and 1.05%, respectively.(2) The U.S. economy, after years of strong, uninterrupted growth, weakened dramatically during the past six months, with the September 11 terrorist attacks plunging the already sagging economy into recession. Throughout the reporting period, the Federal Reserve Board (the Fed) fought the economic weakness by aggressively lowering interest rates. The Fed cut rates five times, totaling 175 basis points (1.75 percentage points) between June 30 and December 31, 2001. By period's end, the federal funds rate reached 1.75%, its lowest level in 40 years. Yet, despite these historically low rates, the economy did not immediately bounce back. Many corporations continued to lay off workers, while their profits declined further. In response, many nervous investors took part in a "flight to quality," seeking to avoid the falling stock market and looking instead to fixed income opportunities that have historically offered greater stability during highly uncertain conditions. In this environment, fixed income investments generally performed well. Their yields fell steadily throughout the reporting period, while their prices, which move in the opposite direction as yields, rose accordingly. Such a situation was generally favorable for bond investors. However, investors in shorter maturity fixed income investments, such as tax-exempt money market securities, were especially affected by the low interest rate climate. As these short-term securities matured, it became necessary to replace them with newer investments offering the lower yields. Given the unpredictable economic situation, we were especially concerned with maintaining the Trust's high overall credit quality during the reporting period. Accordingly, we focused on identifying high quality, tax-exempt money market securities to add to the Trust's portfolio. This prompted us to avoid excessive participation in the general municipal note market. While such municipal securities offered relatively attractive yields, most, in our opinion, would have required us to assume an unacceptably high level of credit risk. We believed the deteriorating economy could affect certain municipalities' ability 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. to generate the tax and other revenues needed to repay their debt obligations. As we sought to elevate the Trust's credit quality, we also looked to keep the Trust's yield as high as possible. With that goal in mind, we were especially attracted to "enhanced" commercial paper--short-term fixed rate corporate securities backed by a bank, insurance company or other third party. Investing in enhanced commercial paper benefited the Trust in three ways. First, these securities, because they offered a fixed interest rate and relatively long average maturities between 90 and 120 days, allowed us to lock in higher yields for the Trust, even as prevailing yields were falling. Second, these securities boosted the Trust's credit quality. Finally, because investing in commercial paper offers money managers considerable flexibility, we were able to take advantage of market conditions and more easily adjust the Trust's average maturity to our desired range. Our effort to increase the Trust's position in fixed rate securities was counterbalanced by our de-emphasis of variable rate securities. As their name implies, variable rate securities offer interest rates that vary with current market conditions. To maintain a competitive yield for the Trust, we sought to avoid excessive exposure to such investments that were especially sensitive to falling interest rates. By the end of December 2001, in fact, the Trust's weighting in variable rate securities was near its lowest point of the previous six months. With so much economic uncertainty still on the horizon, we plan to continue managing the Trust cautiously. Because interest rates are so low already, we believe they may not have much further to fall. In our opinion, rates will stabilize eventually, remaining low until evidence of an economic recovery appears. In such an environment, we see no reason to adjust our investment approach, at least for the foreseeable future. We plan to seek to continue to maintain the Trust's high credit quality and identify attractive, fixed rate tax-exempt money market securities to add to the portfolio. Yet, in the event that the economy improves suddenly, we believe that the portfolio's current structure will provide us the flexibility we need to respond quickly and effectively. Sincerely, /s/ JAMES C. SWAIN James C. Swain Chairman Centennial Tax Exempt Trust /s/ JOHN V. MURPHY John V. Murphy President Centennial Tax Exempt Trust January 23, 2002 2 STATEMENT OF INVESTMENTS December 31, 2001 (Unaudited) Centennial Tax Exempt Trust
Principal Value Amount See Note 1 ------------ ------------- SHORT-TERM TAX-EXEMPT OBLIGATIONS--100.5% ALABAMA--0.9% Demopolis, AL IDV Board RB, Del Mesa Farms Project, 1.75%(1) .......................... $ 7,200,000 $ 7,200,000 Hoover, AL BOE Capital Outlay TAN, MBIA Insured, 1.70%(1).............................. 4,950,000 4,950,000 Sylacauga, AL IDV Board RB, Harrells Fertilizer, Inc., 1.75%(1)........................ 4,000,000 4,000,000 ------------- 16,150,000 ------------- ALASKA--0.9% AK IDV & Export Authority RRB, Safeway, Inc. Project, 2%, 4/1/02(2).................... 2,825,000 2,825,000 North Slope Borough, AK GOB, Series B, FSA Insured, 1.75%(1)........................... 13,400,000 13,400,000 ------------- 16,225,000 ------------- ARIZONA--3.5% Phoenix, AZ Civic Improvement Corp. Water System RB, Series A, 2.60%, 3/11/02.......... 25,000,000 25,000,000 Phoenix, AZ Civic Improvement Corp. Water System RB, Series B, 1.50%, 6/14/02.......... 7,200,000 7,200,000 Phoenix, AZ Civic Improvement Corp. Water System RB, Series B, 2.65%, 2/1/02........... 9,700,000 9,700,000 Phoenix, AZ IDAU MH RRB, Paradise Lakes Apts. Project, Series 1995, 1.70%(1) .......... 22,500,000 22,500,000 ------------- 64,400,000 ------------- CALIFORNIA--0.4% Fremont, CA MH RB, Treetops Apts., Series A, 1.55%(1).................................. 2,000,000 2,000,000 Huntington Park, CA RA MH RB, Casa Rita Apts., Series A, 1.42%(1)...................... 1,100,000 1,100,000 Oceanside, CA MH RRB, Lakeridge Apts. Project, 1.50%(1)................................ 400,000 400,000 Orange Cnty., CA Apartment Development RRB, Villas Aliento, Series E, 1.30%(1)......... 1,500,000 1,500,000 Orange Cnty., CA FAU Teeter Plan RB, Series C, AMBAC Insured, 1.60%(1)................. 1,600,000 1,600,000 Orange Cnty., CA IDAU RB, Control Air Conditioning Project-A, 1.70%(1)................. 1,300,000 1,300,000 Rancho Mirage, CA Joint Powers FA COP, Eisenhower Medical Center, Series B, MBIA Insured, 1.42%(1).............................................................. 500,000 500,000 ------------- 8,400,000 ------------- COLORADO--1.5% Arvada West Town Center, CO Improvement District GOUN, 1.66%(1)........................ 5,345,000 5,345,000 Castlewood Ranch, CO Metropolitan District Limited Tax GOB, 2%, 12/1/02(2)............. 3,000,000 3,000,000 Central Platte Valley Denver Cnty., Co Metropolitan District GOB, 2%, 12/1/02(2)....... 3,000,000 3,000,000 Denver City & Cnty., CO Housing RB, Kentucky Circle Village Project, 1.80%(1).......... 4,300,000 4,300,000 Denver West Metropolitan District, CO GOUN, Series A, 1.76%(1)......................... 6,125,000 6,125,000 Englewood, CO IDV RRB, Safeway, Inc. Project, 2%, 4/1/02(2)............................ 1,050,000 1,050,000
3 STATEMENT OF INVESTMENTS December 31, 2001 (Unaudited) (Continued) Centennial Tax Exempt Trust
Principal Value Amount See Note 1 ----------- ----------- COLORADO (CONTINUED) Fraser, CO IDV RRB, Safeway, Inc. Project, 2%, 4/1/02(2)............................... $ 520,000 $ 520,000 Idaho Springs, CO IDV RRB, Safeway, Inc. Project, 2%, 4/1/02(2)........................ 1,480,000 1,480,000 Willow Trace Metropolitan District GOLB, Series A, 2%, 12/1/02(2)...................... 2,295,000 2,295,000 ----------- 27,115,000 ----------- FLORIDA--6.6% Collier Cnty., FL IDAU RB, Gulf Coast American Blind, Series A, 1.77%(1)............... 3,000,000 3,000,000 Dade Cnty., FL WSS RB, FGIC Insured, 1.71%(1).......................................... 9,900,000 9,900,000 FL BOE Capital Outlay GOUN, Series 286, 1.69%(1)....................................... 2,600,000 2,600,000 FL MPA RB, 1.95%, 1/28/02.............................................................. 30,727,000 30,727,000 FL TUAU RB, Series A, FGIC Insured, 1.71%(1)........................................... 14,850,000 14,850,000 Hillsborough Cnty., FL IDAU PC COP, Tampa Electric Co. Project, 1.71(1)................ 17,795,000 17,795,000 Hillsborough Cnty., FL IDAU PC COP, Tampa Electric Co. Project, MBIA Insured, 1.71%(1).............................................................. 17,795,000 17,795,000 Jacksonville, FL PC RB, Florida Power & Lite, 1.20%, 1/22/02........................... 20,000,000 20,000,000 Lee Cnty., FL Airport & Marina ABN AMRO Munitops Certificates, Trust 2000-3, FSA Insured, 1.73%(1)................................................. 4,890,000 4,890,000 ----------- 121,557,000 ----------- GEORGIA--9.0% Burke Cnty., GA DA PC RB, Oglethorp Power Corp., AMBAC Insured, 1.60%, 1/30/02(2).................................................... 29,600,000 29,600,000 Burke Cnty., GA DA PC RB, Oglethorp Power Corp., AMBAC Insured, 1.80%, 2/7/02(2)..................................................... 33,000,000 33,000,000 Burke Cnty., GA DA PC RB, Oglethorp Power Corp., AMBAC Insured, 1.85%, 1/14/02(2).................................................... 12,000,000 12,000,000 Burke Cnty., GA DA PC RB, Oglethorp Power Corp., AMBAC Insured, 1.95%, 1/28/02(2).................................................... 16,000,000 16,000,000 Cobb Cnty., GA HAU MH RRB, Terrell Mill Project, 1.70%(1)(3)........................... 11,200,000 11,200,000 Fulton Cnty., GA DAU RB, Georgia Tech Athletic Assn., Inc., 1.65%(1)................... 2,700,000 2,700,000 Fulton Cnty., GA DAU RB, Lovett School Project, 1.65%(1)............................... 3,000,000 3,000,000 GA GOB, Series 1995B, 1.71%(1)......................................................... 11,880,000 11,880,000 GA MEAU Power RB, MBIA Insured, 1.69%(1)............................................... 12,995,000 12,995,000 Monroe Cnty., GA DA PC RB, Georgia Power Co., AMBAC Insured, 2.15%, 1/3/02............. 10,000,000 10,000,000 Roswell, GA HAU MH RRB, Oxford Project, 1.85%(1)....................................... 23,610,000 23,610,000 ----------- 165,985,000 -----------
4 STATEMENT OF INVESTMENTS December 31, 2001 (Unaudited) (Continued) Centennial Tax Exempt Trust
Principal Value Amount See Note 1 --------- ------------ HAWAII--0.4% Honolulu City & Cnty., HI GOUN, Series C, FGIC Insured, 2.85%, 12/4/02(2).............. $ 6,600,000 $ 6,647,722 ------------ IDAHO--1.0% Custer Cnty., ID PC RB, Amoco Standard Oil of Indiana, 2.10%, 4/1/02(2)................ 17,750,000 17,750,000 ----------- ILLINOIS--7.7% Chicago, IL ABN AMRO Munitops Certificates, Trust 1998-3, 1.70%(1)(3).................. 8,735,000 8,735,000 Chicago, IL Gas Supply RRB, Peoples Gas Light & Coke Co., Series C, 1.72%(1)........... 10,500,000 10,500,000 Chicago, IL GOB, 1.70%, 1/1/02(1)...................................................... 10,975,000 10,975,000 Chicago, IL RB, Lakefront Millennium Parking Facility, 1.71%(1)........................ 22,495,000 22,495,000 IL Educational FA RB, 1.60%, 1/30/02................................................... 37,000,000 37,000,000 IL Educational FA RB, 1.90%, 1/22/02................................................... 19,000,000 19,000,000 IL Educational FA RB, 1.95%, 1/28/02................................................... 34,000,000 34,000,000 ----------- 142,705,000 ----------- INDIANA--2.3% Dyer, IN HCF RRB, Regency Place, Series A-1, 1.83%(1).................................. 3,000,000 3,000,000 Fort Wayne, IN HCF RRB, Health Quest, Series X-A, 1.83%(1)............................. 2,490,000 2,490,000 IN MPA PPS RB, MBIA Insured, 1.71%(1).................................................. 13,600,000 13,600,000 Indianapolis, IN HCF RRB, Health Quest, Series A, 1.83%(1)............................. 3,080,000 3,080,000 Indianapolis, IN Public Improvement Board RB, Marion Cnty., 2.40%, 7/9/02.............. 5,000,000 5,021,016 Indianapolis, IN Public Improvement Board RB, Public Transportation Corp., 2.40%, 7/9/02.......................................... 3,500,000 3,514,349 Kokomo, IN ED RB, Village Community Partner IV, 1.75%(1)............................... 2,640,000 2,640,000 Lawrence/Fort Harrison, IN Reuse Authority Tax Increment RB, Harrison Military Base, 1.67%(1).................................................... 3,115,000 3,115,000 Marion Cnty., IN HA Hospital Facility RB, Indianapolis Osteopathic, 1.85%(1)........... 825,000 825,000 Merrillville, IN HCF RRB, Southlake, Series A-1, 1.83%(1).............................. 3,340,000 3,340,000 South Bend, IN HCF RRB, Fountainview, Series A-1, 1.83%(1)............................. 2,850,000 2,850,000 ----------- 43,475,365 ----------- KANSAS--0.3% Manhattan, KS Industrial RRB, Parker Hannifin, Inc. Project, 1.60%(1).................. 6,000,000 6,000,000 -----------
5 STATEMENT OF INVESTMENTS December 31, 2001 (Unaudited) (Continued) Centennial Tax Exempt Trust
Principal Value Amount See Note 1 ---------- ----------- KENTUCKY--1.7% Jefferson Cnty., KY MH RRB, 1.75%(1)................................................... $ 8,700,000 $ 8,700,000 KY EDFAU RRB, Baptist Convalescent Center, 1.69%(1).................................... 4,725,000 4,725,000 KY Rural Water Financial Corp. RB, Flexible Term Program, 1.66%(1)..................... 18,120,000 18,120,000 ----------- 31,545,000 ----------- LOUISIANA--2.8% Natchitoches Parish, LA RRB, Trus Joist Corp. Project, 1.75%(1)........................ 10,000,000 10,000,000 New Orleans, LA IDV Board MH RB, Orleans LLC Project, Series 3700, 1.83%(1)............ 19,000,000 19,000,000 St. James Parish, LA PC RRB, Texaco Project, Series A, 1.45%, 1/15/02(2)............... 22,530,000 22,530,000 ----------- 51,530,000 ----------- MARYLAND--3.6% Anne Arundel Cnty., MD ED RB, West Capital, Series A, 1.65%(1)......................... 6,000,000 6,000,000 Hyattsville, MD IDV RRB, Safeway, Inc. Project, 2%, 4/1/02(2).......................... 1,580,000 1,580,000 MD Health & HEFAU RB, University of Maryland Pooled Loan Program, Series B, 1.60%(1).................................................................. 620,000 620,000 Montgomery Cnty., MD Consolidated BANS, 1.35%, 2/6/02.................................. 18,400,000 18,400,000 Montgomery Cnty., MD Consolidated BANS, 1.35%, 3/8/02.................................. 23,000,000 23,000,000 Montgomery Cnty., MD Consolidated BANS, 1.45%, 2/6/02.................................. 5,000,000 5,000,000 Montgomery Cnty., MD Consolidated BANS, 1.50%, 2/11/02................................. 5,000,000 5,000,000 Montgomery Cnty., MD Consolidated BANS, 1.90%, 2/11/02................................. 6,800,000 6,800,000 ----------- 66,400,000 ----------- MASSACHUSETTS--0.2% MA GOB, Series G, 1.40%, 2/7/02........................................................ 3,000,000 3,000,000 ----------- MICHIGAN--0.7% MI Job DAU RB, East Lansing Residence Associates Project, 1.70%(1)..................... 1,900,000 1,900,000 Rochester, MI Community SDI GOUN, Series 289, 1.69%(1)................................. 3,745,000 3,745,000 St. Clair Cnty., MI ED RRB, Series 282, AMBAC Insured, 1.69%(1)........................ 8,000,000 8,000,000 ----------- 13,645,000 -----------
6 STATEMENT OF INVESTMENTS December 31, 2001 (Unaudited) (Continued) Centennial Tax Exempt Trust
Principal Value Amount See Note 1 --------- ---------- MINNESOTA--1.3% Minneapolis, MN CD RRB, Minnehaha/Lake Partners Project, 1.75%(1)...................... $ 2,700,000 $ 2,700,000 MN GOB, 1.71%(1)....................................................................... 16,010,000 16,010,000 New Ulm, MN Hospital Facilities RB, Health Center Systems, 1.70%(1).................... 2,100,000 2,100,000 North Suburban Hospital District, MN RB, Anoka & Ramsey Cntys. Hospital Health Center, 1.70%(1).................................................... 3,100,000 3,100,000 ----------- 23,910,000 ----------- MISSOURI--0.8% Boatmens St. Louis, MO Grantor Trust COP, Series 1996A 1, 1.75%(1)..................... 14,375,000 14,375,000 ----------- MONTANA--0.1% Great Falls, MT IDV RRB, Safeway, Inc. Project, 2%, 4/1/02(2).......................... 1,445,000 1,445,000 Havre, MT IDV RRB, Safeway, Inc. Project, 2%, 4/1/02(2)................................ 1,345,000 1,345,000 ----------- 2,790,000 ----------- NEVADA--2.0% NV Municipal Securities Trust Receipts, Series SG 114, 1.69%(1)........................ 20,350,000 20,350,000 Washoe Cnty., NV ABN AMRO Munitops Certificates, Single Asset Trust Certificates, Trust 2001-24, FGIC Insured, 1.70%(1).............. 16,090,000 16,090,000 ----------- 36,440,000 ----------- NEW JERSEY--1.1% NJ TAN & RAN, 1.65%, 1/18/02........................................................... 20,000,000 20,000,000 ----------- NEW MEXICO--1.1% NM Transportation RB, 3%, 6/28/02...................................................... 20,000,000 20,136,652 ----------- NEW YORK--1.8% Babylon, NY IDA RR RRB, Ogden Martin Project, FSA Insured, 1.40%(1).................... 2,000,000 2,000,000 Jay Street Development Corp. NYC Facilities Lease RB, Jay Street Project, Series A-3, 1.45%(1)................................................................ 1,500,000 1,500,000 NYC Health & Hospital Corp. RB, Health Systems, Series E, 1.45%(1) .................... 600,000 600,000 NYC Metropolitan Authority RB, Transit SPF, 1.40%, 2/11/02............................. 13,400,000 13,400,000 NYC MWFAU WSS RRB, Series F-1, 1.95%(1)................................................ 1,000,000 1,000,000 NYS DA RB, Cornell University, Series B, 1.80%(1)...................................... 600,000 600,000
7 STATEMENT OF INVESTMENTS December 31, 2001 (Unaudited) (Continued) Centennial Tax Exempt Trust
Principal Value Amount See Note 1 --------- ---------- NEW YORK (CONTINUED) NYS DA RB, MBIA/IBC Insured, 1.50%(1)(3)............................................... $ 2,100,000 $ 2,100,000 NYS ERDAUEF RB, Consolidated Edison, Subseries A3, 1.65%(1)............................ 2,600,000 2,600,000 NYS HFA RB, 1.65%(1)................................................................... 900,000 900,000 NYS MAG RB, Series CMC1, 1.65%(1)...................................................... 1,610,000 1,610,000 NYS TBTAU RB, Series T, 1.85%, 2/6/02(2)(3)............................................ 7,400,000 7,400,000 ------------ 33,710,000 ------------ NORTH CAROLINA--0.1% Guilford Cnty., NC Industrial Facilities & PCFAU RB, Crescent Sleep Project, 2%(1)..... 2,900,000 2,900,000 ------------ OHIO--2.5% Clinton Cnty., OH Hospital RB, Ohio Hospital Capital, Inc., 1.75%(1)................... 9,300,000 9,300,000 Clinton Cnty., OH Hospital RB, Ohio Hospital Captial, Inc., 1.75%(1)................... 10,000,000 10,000,000 Gallia Cnty., OH IDV Mtg. RRB, Jackson Pike Assn., 2.30%, 6/15/02(2)................... 2,950,000 2,950,000 OH Water DAU PC RB, 2.50%, 3/28/02..................................................... 10,000,000 10,027,364 Scioto Cnty., OH HCF RB, Hill View Retirement Center, 2.10%, 6/1/02(2)................. 3,940,000 3,940,000 University of Cincinnati, OH COP, Series 232, MBIA Insured, 1.69%(1)................... 10,575,000 10,575,000 ------------ 46,792,364 ------------ PENNSYLVANIA--5.8% Delaware Cnty., PA IDA PC RB, Philadelphia Electric, FGIC Insured, 1.35%, 2/11/02(2)..................................................... 4,400,000 4,400,000 Delaware Cnty., PA IDA PC RB, Philadelphia Electric, FGIC Insured, 1.90%, 2/11/02(2)..................................................... 11,200,000 11,200,000 Delaware Cnty., PA IDA PC RB, Philadelphia Electric, Series B, FGIC Insured, 1.75%, 2/7/02(2).................................................................... 28,600,000 28,600,000 Delaware Cnty., PA IDA PC RB, Philadelphia Electric, Series B, FGIC Insured, 1.90%, 1/28/02(2)..................................................... 19,400,000 19,400,000 Monroe Cnty., PA HA RB, Pocono Medical Center, Series C, 1.90%(1)...................... 2,835,000 2,835,000 PA GOUN, 1.71%(1)...................................................................... 17,800,000 17,800,000 PA MBIA Capital Corp. Grantor Lease Back RB, MBIA Insured, 1.81%(1).................... 23,660,000 23,660,000 ------------ 107,895,000 ------------ SOUTH CAROLINA--1.6% SC POAU ABN AMRO Munitops Certificates, Trust 1998-7, 1.73%(1)......................... 7,325,000 7,325,000 SC Public Service RB, Santee Cooper, 1.65%, 2/13/02.................................... 23,030,000 23,030,000 ------------ 30,355,000 ------------
8 STATEMENT OF INVESTMENTS December 31, 2001 (Unaudited) (Continued) Centennial Tax Exempt Trust
Principal Value Amount See Note 1 --------- ------------ TENNESSEE--3.2% Shelby Cnty., TN Educational Housing HFAU RB, Baptist Memorial Hospital, 1.35%, 2/11/02(2)........................................ $ 5,500,000 $ 5,500,000 Shelby Cnty., TN Educational Housing HFAU RB, Baptist Memorial Hospital, 1.35%, 2/11/02(2)........................................ 7,000,000 7,000,000 Shelby Cnty., TN Educational Housing HFAU RB, Baptist Memorial Hospital, 1.70%, 2/11/02(2)........................................ 7,000,000 7,000,000 Shelby Cnty., TN Educational Housing HFAU RB, Baptist Memorial Hospital, 1.80%, 2/11/02(2)........................................ 14,800,000 14,800,000 TN GOB, 1.70%, 2/14/02................................................................. 25,000,000 25,000,000 ------------ 59,300,000 ------------ TEXAS--23.5% Austin, TX Travis & Williamson Cntys. Utility System RB, 1.65%, 1/31/02................ 4,335,000 4,335,000 Austin, TX Travis & Williamson Cntys. Utility System RB, 1.85%, 1/14/02................ 50,000,000 50,000,000 Austin, TX Travis & Williamson Cntys. Utility System RB, 1.85%, 2/11/02................ 7,000,000 7,000,000 Bexar Metropolitan Water District RB, 1.80%, 2/14/02................................... 9,000,000 9,000,000 De Soto, TX IDAU RRB, National Service Industries, Inc. Project, 1.60%(1).............. 7,150,000 7,150,000 Gulf Coast, TX IDAU Marine Terminal RB, Amoco Oil Project, 1.90%, 6/1/02(2)............ 4,000,000 4,000,000 Gulf Coast, TX Waste Disposal Authority RB, Amoco Oil Co. Project, 2.20%, 4/1/02(2).... 9,200,000 9,200,000 Harris Cnty., TX Criminal Justice Center RB, Series SG96, FGIC Insured, 1.69%(1)....... 7,475,000 7,475,000 Harris Cnty., TX Flood Control District RB, 1.40%, 4/1/02.............................. 10,284,000 10,284,000 Harris Cnty., TX GOB, 1.40%, 2/12/02................................................... 10,670,000 10,670,000 Harris Cnty., TX GOB, 1.65%, 2/6/02.................................................... 8,847,000 8,847,000 Harris Cnty., TX Toll Road RB, Sr. Lien, 1.70%, 3/12/02................................ 22,500,000 22,500,000 Harris Cnty., TX Toll Road RB, Sr. Lien, 1.95%, 3/13/02................................ 12,000,000 12,000,000 Hockley Cnty., TX IDV Corp. PC RB, Amoco Project, 1.94%, 5/1/02(2)..................... 12,940,000 12,940,000 Houston, TX GOB, Series A, 1.45%, 1/22/02.............................................. 7,200,000 7,200,000 Houston, TX GOB, Series A, 1.90%, 1/22/02.............................................. 8,000,000 8,000,000 Houston, TX GOB, Series B, 1.60%, 2/12/02.............................................. 27,600,000 27,600,000 Houston, TX GOB, Series B, 1.90%, 1/22/02.............................................. 7,500,000 7,500,000 Houston, TX GOB, Series C, 1.90%, 1/22/02.............................................. 2,000,000 2,000,000 Houston, TX WSS RB, Series SG120, 1.69%(1)............................................. 37,600,000 37,600,000 Keller, TX ISD ABN AMRO Munitops Certificates, Trust 2001-26, 2.70%, 5/15/02(2)........ 3,000,000 3,000,000 North Central TX HF Development Corp. RB, Dallas Methodist Hospital, AMBAC Insured, 1.60%, 1/7/02(2)..................................................... 22,900,000 22,900,000 San Antonio, TX Electric & Gas RB, 1.85%, 1/17/02...................................... 20,500,000 20,500,000
9 STATEMENT OF INVESTMENTS December 31, 2001 (Unaudited) (Continued) Centennial Tax Exempt Trust
Principal Value Amount See Note 1 --------- ------------ TEXAS (CONTINUED) San Antonio, TX Electric & Gas RB, 1.85%, 2/7/02....................................... $ 10,000,000 $ 10,000,000 San Antonio, TX Electric & Gas RB, 1.90%, 1/22/02...................................... 21,000,000 21,000,000 San Antonio, TX Electric & Gas RRB, Series G-101, 1.69%(1)............................. 20,200,000 20,200,000 San Antonio, TX Electric & Gas RRB, Series SG105, 1.73%(1)............................. 20,000,000 20,000,000 TX PFAU GOB, 2%, 1/14/02............................................................... 26,755,000 26,755,000 TX TAN & RAN, 3.75%, 8/29/02........................................................... 10,000,000 10,141,961 TX TUAU RB, Dallas Northtollway, Series SG70, 1.69%(1)................................. 15,325,000 15,325,000 ------------ 435,122,961 ------------ UTAH--1.8% Intermountain Power Agency, UT Power Supply RB, AMBAC Insured, 1.40%, 2/12/02(2).................................................... 5,500,000 5,500,000 Intermountain Power Agency, UT Power Supply RB, AMBAC Insured, 1.65%, 1/22/02(2).................................................... 14,600,000 14,600,000 Intermountain Power Agency, UT Power Supply RB, AMBAC Insured, 1.90%, 1/28/02(2).................................................... 6,500,000 6,500,000 Intermountain Power Agency, UT Power Supply RB, AMBAC Insured, 2%, 1/28/02(2)....................................................... 5,800,000 5,800,000 Tremonton City, UT IDV RRB, Safeway, Inc. Project, 2%, 4/1/02(2)....................... 305,000 305,000 ------------ 32,705,000 ------------ VIRGINIA--3.0% Peninsula POAU, VA Coal Terminal RRB, Dominion Terminal Project-A, 1.85%, 2/11/02(2)(4)................................... 15,835,000 15,835,000 Peninsula POAU, VA Coal Terminal RRB, Dominion Terminal Project-B, 1.30%, 3/12/02(2)(4)................................... 15,835,000 15,835,000 Stafford, VA IDV RRB, Safeway, Inc. Project, 2%, 4/1/02(2)............................. 715,000 715,000 Washington DC Metropolitan Airport Authority, VA Passenger Facilities, 1.95%, 4/25/02(2).......................................... 22,600,000 22,600,000 ------------ 54,985,000 ------------
10 STATEMENT OF INVESTMENTS December 31, 2001 (Unaudited) (Continued) Centennial Tax Exempt Trust
Principal Value Amount See Note 1 ----------- --------------- WASHINGTON--3.2% King Cnty., WA ABN AMRO Munitops Certificates, Trust 2001-1, MBIA Insured, 1.70%(1).............................................................. $12,770,000 $ 12,770,000 Kitsap Cnty., WA SDI No. 401 GOUN, Series 252, MBIA Insured, 1.69%(1).................. 3,460,000 3,460,000 Seattle, WA Municipal Light & Power RB, 2.65%, 1/15/02(2).............................. 18,300,000 18,300,000 Washington DC Metropolitan Airport Authority, VA Passenger Facilities, 1.65%, 5/17/02(2).......................................... 25,000,000 25,000,000 --------------- 59,530,000 --------------- WEST VIRGINIA--1.0% Marion Cnty., WV Commission SWD Facilities RB, Granttown Project-D, 1.65%(1)........... 13,600,000 13,600,000 WV Road GOB ABN AMRO Munitops Certificates, Trust 1999-4, 2%, 5/15/02(2)............... 6,000,000 6,000,000 --------------- 19,600,000 --------------- WISCONSIN--0.2% West Allis, WI RB, State Fair Park Exposition Center, 1.73%(1)......................... 3,500,000 3,500,000 --------------- WYOMING--1.1% Lincoln Cnty., WY PC RRB, Amoco Oil Co. of Indiana Project, 2.40%, 4/1/02(2)........... 3,300,000 3,300,791 Sweetwater Cnty., WY PC RB, Pacificorp, 1.50%, 2/11/02(2).............................. 5,500,000 5,500,000 Sweetwater Cnty., WY PC RB, Pacificorp, 1.90%, 2/11/02(2).............................. 12,000,000 12,000,000 --------------- 20,800,791 --------------- DISTRICT OF COLUMBIA--0.3% Washington DC National Academy of Science RB, AMBAC Insured, 1.45%, 5/20/02....................................................... 1,000,000 1,000,000 Washington DC National Academy of Science RB, AMBAC Insured, 1.45%, 5/20/02....................................................... 4,000,000 4,000,000 --------------- 5,000,000 --------------- OTHER TERRITORIES--1.5% Greystone Tax Exempt Certificates RB, Trust 1998-1, Sr. Certificate Beneficial Ownership, 1.86%(1)...................................... 27,800,000 27,800,000 --------------- TOTAL INVESTMENTS, AT VALUE (COST $1,860,177,855)...................................... 100.5% 1,860,177,855 LIABILITIES IN EXCESS OF OTHER ASSETS ................................................. (0.5) (9,425,459) ----------- --------------- NET ASSETS............................................................................. 100.0% $ 1,850,752,396 =========== ===============
11 STATEMENT OF INVESTMENTS December 31, 2001 (Unaudited) (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 CD--Commercial Development MEAU--Municipal Electric Authority COP--Certificates of Participation MH--Multifamily Housing DA--Dormitory Authority MPA--Municipal Power Agency 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 PC--Pollution Control Authority Electric Facilities PCFAU--Pollution Control Finance Authority FA--Facilities Authority PFAU--Public Finance Authority FAU--Finance Authority POAU--Port Authority GOB--General Obligation Bonds PPS--Public Power System GOLB--General Obligation Limited Bonds RA--Redevelopment Agency GOUN--General Obligation Unlimited Nts. RAN--Revenue Anticipation Nts. HA--Hospital Authority RB--Revenue Bonds HAU--Housing Authority RR--Resource Recovery HCF--Health Care Facilities RRB--Revenue Refunding Bonds HEFAU--Higher Educational Facilities Authority SDI--School District HF--Health Facilities SPF--Special Facilities HFA--Housing Finance Agency SWD--Solid Waste Disposal HFAU--Health Facilities Authority TAN--Tax Anticipation Nts. IDA--Industrial Development Agency TBTAU--Triborough Bridge & Tunnel Authority IDAU--Industrial Development Authority TUAU--Turnpike Authority IDV--Industrial Development WSS--Water & Sewer System ISD--Independent School District
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 December 31, 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 $29,435,000 or 1.59% of the Trust's net assets as of December 31, 2001. 4. Identifies issues considered to be illiquid or restricted--See Note 4 of Notes to Financial Statements. See accompanying Notes to Financial Statements. 12 STATEMENT OF ASSETS AND LIABILITIES December 31, 2001 (Unaudited) Centennial Tax Exempt Trust
ASSETS Investments, at value (cost $1,860,177,855)--see accompanying statement........... $1,860,177,855 Receivables and other assets: Shares of beneficial interest sold.............................................. 22,125,059 Interest........................................................................ 6,641,227 Other........................................................................... 57,759 -------------- Total assets.................................................................. 1,889,001,900 -------------- LIABILITIES Bank overdraft.................................................................... 15,902,901 Payables and other liabilities: Shares of beneficial interest redeemed.......................................... 22,104,077 Service plan fees............................................................... 124,999 Shareholder reports............................................................. 45,768 Dividends....................................................................... 16,347 Trustees' compensation.......................................................... 560 Transfer and shareholder servicing agent fees................................... 104 Other........................................................................... 54,748 -------------- Total liabilities............................................................. 38,249,504 -------------- NET ASSETS........................................................................ $1,850,752,396 ============== COMPOSITION OF NET ASSETS Paid-in capital................................................................... $1,850,866,021 Accumulated net realized gain (loss) on investment transactions................... (113,625) -------------- NET ASSETS--applicable to 1,850,881,989 shares of beneficial interest outstanding............................................................ $1,850,752,396 ============== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE.................... $1.00
See accompanying Notes to Financial Statements. 13 STATEMENT OF OPERATIONS For the Six Months Ended December 31, 2001 (Unaudited) Centennial Tax Exempt Trust INVESTMENT INCOME--Interest....................................................... $21,219,458 ----------- EXPENSES Management fees................................................................... 4,006,201 Service plan fees................................................................. 1,903,143 Transfer and shareholder servicing agent fees..................................... 309,376 Custodian fees and expenses....................................................... 88,934 Shareholder reports............................................................... 58,832 Other............................................................................. 280,139 ---------- Total expenses.................................................................. 6,646,625 Less reduction to custodian expenses.......................................... (53,273) ----------- Net Expenses.................................................................... 6,593,352 ----------- NET INVESTMENT INCOME............................................................. 14,626,106 ----------- NET REALIZED GAIN (LOSS) ON INVESTMENTS........................................... 231,574 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. $14,857,680 =========== ========================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS Six Months Ended December 31, 2001 Year Ended (Unaudited) June 30, 2001 ---------------- ---------------- OPERATIONS Net investment income (loss)......................................... $ 14,626,106 $ 57,149,366 Net realized gain (loss)............................................. 231,574 294,983 -------------- -------------- Net increase (decrease) in net assets resulting from operations...... 14,857,680 57,444,349 -------------- -------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS....................... (14,626,106) (57,149,366) -------------- -------------- BENEFICIAL INTEREST TRANSACTIONS Net increase (decrease) in net assets resulting from beneficial interest transactions.................................. 28,786,051 129,890,148 -------------- -------------- NET ASSETS Total increase....................................................... 29,017,625 130,185,131 Beginning of period.................................................. 1,821,734,771 1,691,549,640 -------------- -------------- End of period........................................................ $1,850,752,396 $1,821,734,771 ============== ==============
See accompanying Notes to Financial Statements. 14 FINANCIAL HIGHLIGHTS Centennial Tax Exempt Trust
Six Months Ended Year Ended June 30, December 31, 2001 ------------------------------------------------ (Unaudited) 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 $ 1.00 Income from investment operations-- net investment income and net realized gain...................... .01 .03 .03 .03 .03 .03 Dividends and/or 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)........................... 0.77% 3.26% 3.01% 2.61% 3.12% 3.01% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in millions)... $1,851 $1,822 $1,692 $1,749 $1,829 $1,649 Average net assets (in millions).......... $1,896 $1,779 $1,737 $1,896 $1,832 $1,591 Ratios to average net assets:(2) Net investment income..................... 1.53% 3.21% 2.94% 2.58% 3.07% 2.95% Expenses.................................. 0.69% 0.70% 0.72% 0.69% 0.69%(3) 0.72%(3) Expenses, net of reduction to custodian expense...................... N/A 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 has been calculated without adjustment for the reduction to custodian expenses. See accompanying Notes to Financial Statements. 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 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 December 31, 2001, the Trust had available for federal income tax purposes an estimated unused capital loss carryover of $99,958. This estimated capital loss carryover represents carryover as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. 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 report-ing period. Actual results could differ from those estimates. 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, 2001 Year Ended June 30, 2001 ---------------------------------- -------------------------------- Shares Amount Shares Amount --------------- -------------- -------------- --------------- Sold ................... 2,463,708,787 $2,463,708,787 5,201,579,181 $ 5,201,579,181 Dividends and/or distributions reinvested 15,427,527 15,427,527 57,547,779 57,547,779 Redeemed ............... (2,450,350,263) (2,450,350,263) (5,129,236,812) $(5,129,236,812) -------------- -------------- -------------- --------------- Net increase (decrease) 28,786,051 $ 28,786,051 129,890,148 $ 129,890,148 ============== ============== ============== ===============
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 six months ended December 31, 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 six months ended December 31, 2001, the Trust paid $4,140 to a broker/dealer affiliated with the Manager as reimbursement for distribution-related expenses. 17 NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued) Centennial Tax Exempt Trust 4. ILLIQUID OR RESTRICTED SECURITIES As of December 31, 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 December 31, 2001 was $31,670,000, which represents 1.71% of the Trust's net assets, all of which is considered restricted. Information concerning restricted securities is as follows:
Valuation Unrealized Acquisition as of Appreciation Security Dates Cost Dec. 31, 2001 (Depreciation) - --------------------------------------------------------------------------------------------------------- SHORT-TERM NOTES Peninsula POAU, VA Coal Terminal RRB, Dominion Terminal Project-A, 1.85%, 2/11/02 ............................ 11/1/01 $15,835,000 $15,835,000 $-- Peninsula POAU, VA Coal Terminal RRB, Dominion Terminal Project-B, 1.30%, 3/12/02............................. 12/13/01 15,835,000 15,835,000 --
18 This page intentionally left blank. CENTENNIAL TAX EXEMPT TRUST Officers and Trustees James C. Swain, Trustee, CEO and Chairman of the Board John V. Murphy, President William L. Armstrong, Trustee Robert G. Avis, Trustee George C. Bowen, Trustee Edward L. Cameron, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Richard F. Grabish, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee F. William Marshall, Jr., Trustee Michael J. Carbuto, Vice President Robert G. Zack, Vice President and Secretary Brian W. Wixted, Treasurer Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Katherine P. Feld, Assistant Secretary Kathleen T. Ives, Assistant Secretary Denis R. Molleur, 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. The financial statements included herein have been taken from the records of the Trust without examination of those records by the independent auditors. 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. RS0160.001.1201 [RECYCLE LOGO] Printed on recycled paper -----END PRIVACY-ENHANCED MESSAGE-----