-----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, Uga9TDWRktsq9VWJNaFNDewUeaBbNi1xP394i8pVFatGTOqxU67t71SDAqfBFeXG 2EWhBWCozHVV+nnXvjSwIw== 0000950133-97-003175.txt : 19970912 0000950133-97-003175.hdr.sgml : 19970912 ACCESSION NUMBER: 0000950133-97-003175 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970908 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTENNIAL TAX EXEMPT TRUST /CO/ CENTRAL INDEX KEY: 0000319880 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 222328954 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-03104 FILM NUMBER: 97676423 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: 34TH FLOOR CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: 303-768-3200 FORMER COMPANY: FORMER CONFORMED NAME: DAILY CASH TAX EXEMPT FUND INC DATE OF NAME CHANGE: 19851009 FORMER COMPANY: FORMER CONFORMED NAME: CENTENNIAL TAX EXEMPT CASH FUND INC DATE OF NAME CHANGE: 19820720 FORMER COMPANY: FORMER CONFORMED NAME: DAILY TAX EXEMPT CASH FUND INC DATE OF NAME CHANGE: 19811027 N-30D 1 CENTENNIAL TAX EXEMPT TRUST ANNUAL REPORT 1 DEAR SHAREHOLDER: The U.S. economy is in the midst of one of its best periods in decades, with growth in 1997 reaching an annual rate of 4%, up from about 2% in 1995. Unemployment has fallen to its lowest level since the early 1970s, and inflation is dormant, despite the strengthening economy. As a result, interest rates have remained under control. Although 30-year Treasury rates have risen above 7% several times during the past 12 months, yields on short-term securities, particularly tax-exempts, remain relatively low. Still, yields on tax-exempt securities are adequate to offset the effects of inflation, which is currently running at an annual rate of 2.4%. For the year ended June 30, 1997, the Centennial Tax Exempt Trust had a compounded annual yield of 3.01%. Without compounding, the corresponding yield was 2.96%. For investors in the 36% federal tax bracket, these yields are equivalent to taxable yields of 4.70% with compounding, and 4.63% without compounding, respectively. The seven-day annualized yields, with and without compounding, for the year ended June 30, 1997 were 3.40% and 3.34%, respectively.(1) The portfolio continues to emphasize the highest quality investments, and over two thirds of the securities are typically enhanced by municipal bond insurance or bank letters of credit. This high quality is important so that the Centennial Tax Exempt Trust can continue to provide liquidity, as well as safety of principal. However, it's important to remember that an investment in the Trust is neither insured nor guaranteed by the U.S. government, and there is no assurance that the Trust will maintain a stable $1.00 share price in the future. One of the special challenges of managing a tax-exempt short-term fund is the inconsistent supply of securities with the appropriate maturity. For instance, during the latter half of 1996, the Trust received an above-average inflow of funds, which we sought to put to work. At the same time, we believed that interest rates were likely to go down. As a result, we sought to purchase securities with longer maturities. That's because in a period of falling interest rates, longer-term paper paying a relatively high yield appreciates in value. However, longer-term paper was not uniformly available during that period. But the concern diminished by December as we began to view the interest-rate environment differently. By January, we began to sell some of our longer dated paper because we believed that interest rates would rise during the first quarter of 1997. Having a shorter-maturity portfolio is typically more appropriate in April, as investors liquidate shares to pay income taxes on their other investments. On March 25, 1997, the Federal Reserve Board raised short-term interest rates by 0.25%. As a result of the Fed action, and the 1 2 April taxpaying season, the rates for very short-term tax-free instruments surged, resulting in falling yields. By keeping the portfolio's average maturity very short, we were able to take advantage of the 1.5 percentage point yield increase that ensued in the tax-exempt marketplace from mid-April to late May. However, as the end of the fiscal year approached, we began to extend the portfolio once again. As of June 30, 1997, the portfolio's average maturity is 65 days, up from 37 days at the beginning of the fiscal year. Due to a somewhat decelerating economy, we are less concerned about rising inflation and interest rates than we were a few months ago. As opportunities present themselves, we will purchase longer-term paper in order to lock in higher yields. Thank you for your confidence in Centennial Tax Exempt Trust. We look forward to helping you reach your investment goals in the future. Sincerely, /s/ JAMES C. SWAIN James C. Swain Chairman Centennial Tax Exempt Trust /s/ BRIDGET A. MACASKILL Bridget A. Macaskill President Centennial Tax Exempt Trust July 22, 1997 1. Compounded yields assume reinvestment of dividends. A portion of the Trust's distributions may be subject to federal and state income taxes. For investors subject to the federal and/or state alternative minimum tax, a portion of the Trust's distributions may increase this tax. Past performance does not guarantee future results. 2 3 STATEMENT OF INVESTMENTS Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ -------------- SHORT-TERM TAX-EXEMPT OBLIGATIONS-102.7% ALABAMA-0.6% Bessemer, AL IDV RB, Big B, Inc. Project, Series A, 4.25%(1) . . . . . . . . . . $ 1,750,000 $ 1,750,000 Huntsville, AL FAU MH RRB, Series B, 4.10%(1) . . . . . . . . . . . . . . . . . . 7,000,000 7,000,000 Winfield, AL IDV RB, Union Underwear Co., 4%(1) . . . . . . . . . . . . . . . . . 1,900,000 1,900,000 -------------- 10,650,000 -------------- ARIZONA-2.6% AZ HFAU RB, Blood Systems, Inc., 4.20%(1) . . . . . . . . . . . . . . . . . . . . 8,000,000 8,000,000 Maricopa Cnty., AZ IDAU RB, Grand Canyon University Project, 4.20%(1) . . . . . . 5,200,000 5,200,000 Phoenix, AZ IDAU MH RRB, Lynwood Apts. Project, 4.15%(1) . . . . . . . . . . . . 6,475,000 6,475,000 Phoenix, AZ IDAU MH RRB, Paradise Lakes Apts. Project, 1995 Series, 4.35%(1) . . 22,500,000 22,500,000 Tucson, AZ IDAU RB, Geronimo Building Renovation Project, 4%, 12/15/97(2) . . . . 1,045,000 1,045,000 -------------- 43,220,000 -------------- ARKANSAS-0.0% Subiaco, AR IDV RB, Cloves Gear & Products, Inc., 5.40%(1) . . . . . . . . . . . 265,000 265,000 -------------- CALIFORNIA-14.1% Anaheim, CA HAU MH RB, Bel Page Project, Series A, 4.10%(1) . . . . . . . . . . . 1,000,000 1,000,000 Anaheim, CA HAU MH RRB, Park Vista Apts., Series A, 4.05%(1) . . . . . . . . . . 1,000,000 1,000,000 CA GOB, 3.70%, 7/1/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000 CA HEAU Student Loan RB, Series C, 4.20%(1) . . . . . . . . . . . . . . . . . . . 4,000,000 4,000,000 CA HEAU Student Loan RRB, Series 1987A, 3.95%, 5/1/98(2) . . . . . . . . . . . . 27,175,000 27,175,000 CA HEAU Student Loan RRB, Series 1992A-2, 3.95%, 5/1/98(2) . . . . . . . . . . . 14,000,000 14,000,000 CA HEAU Student Loan RB, 3.95%, 5/1/98(2) . . . . . . . . . . . . . . . . . . . . 34,400,000 34,400,000 CA HFFAU RB, Adventist Health System, Series B, 3.95%(1) . . . . . . . . . . . . 1,000,000 1,000,000 CA HFFAU RB, Catholic Healthcare Project, Series B, 4.05%(1) . . . . . . . . . . 1,100,000 1,100,000 CA HFFAU RB, Pooled Loan Program, Series B, FGIC Insured, 4.05%(1) . . . . . . . 500,000 500,000 CA HFFAU RB, Santa Barbara Cottage Project, Series C, 3.95%(1) . . . . . . . . . 800,000 800,000 CA HFFAU RB, Scripps Memorial Hospital, Series A, MBIA Insured, 4.05%(1) . . . . 420,000 420,000 CA HFFAU RRB, Catholic West Project, Series C, MBIA Insured, 4.05%(1) . . . . . . 1,900,000 1,899,977 CA HFFAU RRB, Memorial Health Services Project, 3.95%(1) . . . . . . . . . . . . 1,300,000 1,300,000 CA M-S-R PPA RB, San Juan Project, Sub Lien, Series E, MBIA Insured, 3.90%(1) . . 4,000,000 4,000,000 CA Municipal RB, Series SG89, MBIA Insured, 3.90%, 8/7/97 . . . . . . . . . . . . 7,425,000 7,425,000 CA PCFAU SWD RB, Western Waste Industries, Series A, 3.90%(1) . . . . . . . . . . 500,000 500,000 CA School Cash Reserve Program Authority Nts., Series A, AMBAC Insured, 4.75%, 7/2/98 . . . . . . . . . . . . . . . . . . . . . . . . . 45,000,000 45,389,250 Hemet, CA HAU MH RRB, West Acacia Project, 4%(1) . . . . . . . . . . . . . . . . 4,800,000 4,800,000
3 4 STATEMENT OF INVESTMENTS (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ -------------- CALIFORNIA (CONTINUED) Huntington Park, CA RA MH RB, Casa Rita Apts., Series A, 4.05%(1) . . . . . . . . $ 1,500,000 $ 1,499,990 Irvine, CA Public Facilities & Infrastructure Authority Lease RB, Capital Improvement Projects, 4%(1) . . . . . . . . . . . . . . . . . . . . . 1,800,000 1,800,000 Kings Cnty., CA HAU MH RRB, Edgewater Isle Apts., Series A, 3.95%(1) . . . . . . 3,005,000 3,005,000 Los Angeles Cnty., CA HAU MH RB, Park Sierra Project, 4.05%(1) . . . . . . . . . 1,700,000 1,700,000 Los Angeles, CA Airport RB, Series SG61, 4.35%(1) . . . . . . . . . . . . . . . . 2,555,000 2,555,000 Metropolitan Water District of Southern CA Waterworks RRB, Series A, AMBAC Insured, 4%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 400,006 Modesto, CA Irrigation District FAU RB, Series SG66, 4.25%(1) . . . . . . . . . . 500,000 500,000 Northern CA PPA RRB, Geothermal Project 3-A, 3.90%(1) . . . . . . . . . . . . . . 3,000,000 3,000,040 Oceanside, CA MH RRB, Lakeridge Apts. Project, 4.40%(1) . . . . . . . . . . . . . 4,100,000 4,100,000 Ontario, CA Multifamily Residential Mtg. RB, Park Centre Project, Series A, 3.75%(1) . . . . . . . . . . . . . . . . . . . 400,000 400,000 Rancho Mirage, CA RA COP, 4.05%(1) . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,011 Riverside Cnty., CA HAU MH RB, McKinley Project, 4%(1) . . . . . . . . . . . . . 2,000,000 2,000,000 Sacramento Cnty., CA MH RRB, Issue A, 4.10%(1) . . . . . . . . . . . . . . . . . 3,400,000 3,400,000 San Bernardino Cnty., CA HAU MH RRB, Arrowview Park Apts. Project, Series A, 4%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,050,000 3,050,037 San Bernardino Cnty., CA HAU MH RRB, Monterey Villas Apts. Project, Series A, 4%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,125,000 2,125,000 San Bernardino Cnty., CA Tax & RAN, Series A, 4.50%, 6/30/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,000,000 23,143,060 San Francisco, CA City & Cnty. RA MH RRB, Fillmore Center Housing Project, Series A-1, 4%(1) . . . . . . . . . . . . . . 500,000 500,000 San Francisco, CA City & Cnty. Redevelopment FAU RRB, Yerba Buena Garden, 4.05%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 760,000 760,000 Southern CA PAU RRB, Palo Verde Project, Series B, AMBAC Insured, 3.90%(1) . . . . . . . . . . . . . . . . . . . . . . 2,400,000 2,400,000 -------------- 232,047,371 -------------- COLORADO-2.1% Arapahoe Cnty., CO MH RRB, Hunters Run Rental Housing, 4.30%(1) . . . . . . . . . 25,600,000 25,600,000 Aurora, CO IDV RRB, La Quinta Motor Inns, Inc., 4.25%(1) . . . . . . . . . . . . 2,600,000 2,600,000 Superior Metropolitan District No. 3, CO GOB, 4.20%(1) . . . . . . . . . . . . . 5,000,000 5,000,000 Wheat Ridge, CO IDV RRB, La Quinta Motor Inns, Inc., 4.25%(1) . . . . . . . . . . 1,775,000 1,775,000 -------------- 34,975,000 -------------- DELAWARE-0.7% DE EDAU RB, Hospital Billing Project, Series A, BIG Insured, 4.25%(1) . . . . . . 6,100,000 6,100,000 Sussex Cnty., DE EDAU RB, Route 113 LP Project, 3.70%(1) . . . . . . . . . . . . 6,000,000 6,000,000 -------------- 12,100,000 --------------
4 5 STATEMENT OF INVESTMENTS (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ -------------- FLORIDA-7.6% Dade Cnty., FL WSS RB, FGIC Insured, 3.40%, 7/1/97 . . . . . . . . . . . . . . . $ 9,500,000 $ 9,500,000 Escambia Cnty., FL HFAU RRB, Florida Convertible Centers Project, Series A, 3.70%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,250,000 FL BOE Capital Outlay Public Education Refunding Bonds, Series A, 4.28%(1) . . . 13,230,000 13,230,000 FL HFA MH RRB, Monterey Lake Project, 4.30%(1) . . . . . . . . . . . . . . . . . 19,965,000 19,965,000 FL Turnpike Authority RB, Series A, FGIC Insured, 3.40%, 7/1/97(2) . . . . . . . 14,200,000 14,200,000 Hillsborough Cnty., FL IDAU PC COP, Tampa Electric Co. Project, MBIA Insured, 3.97%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 17,000,000 Hillsborough Cnty., FL IDAU PC RB, Tampa Electric Co. Project, 4.30%(1) . . . . . 17,000,000 17,000,000 Jacksonville, FL IDV RRB, Airport Hotel Project, 4.15%(1) . . . . . . . . . . . . 3,000,000 3,000,000 Orange Cnty., FL HFAU RRB, Pooled Hospital Loan Program, Series 1985, MBIA Insured, 3.60%, 8/25/97 . . . . . . . . . . . . . . . . . . 16,000,000 16,000,000 Orange Cnty., FL Housing FAU MH RRB, Monterey Project, Series B, 4.45%(1) . . . . 4,815,000 4,815,000 St. Lucie Cnty., FL PC RB, Florida Power & Light Project, 3.55%, 8/11/97 . . . . 9,200,000 9,200,000 -------------- 125,160,000 -------------- GEORGIA-4.4% Cobb Cnty., GA HAU MH RRB, Terrell Mill Project, 4.35%(1) . . . . . . . . . . . . 9,400,000 9,400,000 Floyd Cnty., GA DAU PC RRB, Inland-Rome, Inc. Project, 4.35%(1) . . . . . . . . . 4,735,000 4,735,000 Fulton Cnty., GA DAU RB, Georgia Tech Athletic Assn., Inc., 4.20%(1) . . . . . . 3,000,000 3,000,000 Fulton Cnty., GA DAU RB, Lovett School Project, 4.20%(1) . . . . . . . . . . . . 3,000,000 3,000,000 Fulton Cnty., GA DAU RB, Robert W. Woodruff Arts Project, 4.20%(1) . . . . . . . 2,000,000 2,000,000 Fulton Cnty., GA Residential Care Facilities RB, Canterbury Court Project, Series A, 4.20%(1) . . . . . . . . . . . . . . . . . 2,255,000 2,255,000 GA GOB, Series 1995B, 4.30%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 11,400,000 11,400,000 Gwinnett Cnty., GA HAU MH RB, Post Chase Project, 4.10%(1) . . . . . . . . . . . 7,500,000 7,500,000 Roswell, GA HAU MH RRB, Oxford Project, 4.35%(1) . . . . . . . . . . . . . . . . 23,610,000 23,610,000 Smyrna, GA HAU MH RRB, Hills of Post Village Project, 4.10%(1) . . . . . . . . . 5,000,000 5,000,000 -------------- 71,900,000 -------------- ILLINOIS-11.4% Centralia City, IL IDV RB, Consolidated Foods Corp./Hollywood Brands, Inc., 4.20%(1) . . . . . . . . . . . . . . . . . . . . 5,500,000 5,500,000 Elk Grove Village, IL IDV RB, La Quinta Motor Inns, Inc., 3.70%(1) . . . . . . . 3,100,000 3,100,000 IL Development FAU RB, Residential Brookdale Project, 4.183%(1) . . . . . . . . . 14,800,000 14,800,000 IL Educational FA RB, National-Louis University, 4.20%(1) . . . . . . . . . . . . 6,200,000 6,200,000 IL HFAU RB, Lake Forest Hospital Project, 4.057%(1) . . . . . . . . . . . . . . . 12,190,000 12,190,000 IL HFAU RRB, Advocate Health Care, Series B, 4.20%(1) . . . . . . . . . . . . . . 74,500,000 74,500,000
5 6 STATEMENT OF INVESTMENTS (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ -------------- ILLINOIS (CONTINUED) IL IDAU RRB, SuperValu, Inc. Project, 4.15%(1) . . . . . . . . . . . . . . . . . $ 5,000,000 $ 5,000,000 IL Student Assistance Commission Student Loan RB, Series A, 4.20%(1) . . . . . . 7,600,000 7,600,000 Lakemoor Village, IL MH Mtg. RB, Lakemoor Apts. Project, 4.75%, 9/4/97(2) . . . . 15,000,000 15,000,000 Lakemoor Village, IL MH Mtg. RB, Lakemoor Apts. Project, Series A, 4.45%, 9/1/97(2) . . . . . . . . . . . . . . . . . . . . . 4,724,050 4,724,050 Oakbrook Terrace, IL MH Mtg. RB, Series C, 4.90%, 11/3/97(2) . . . . . . . . . . 35,000,000 35,000,000 West Chicago, IL IDV RRB, Liquid Container Project, 4.25%(1) . . . . . . . . . . 3,810,000 3,810,000 -------------- 187,424,050 -------------- INDIANA-2.4% Crawfordsville, IN ED RRB, Pedcor Investments-Shady Knoll Apts. Project, 4.25%(1) 3,425,000 3,425,000 Gary, IN Industrial Environmental Improvement RB, U.S. Steel Corp. Project, 4.10%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,000,000 Greenfield, IN Industrial ED RRB, 4.20%(1) . . . . . . . . . . . . . . . . . . . 1,200,000 1,200,000 Greenwood, IN Industrial ED RRB, 4.20%(1) . . . . . . . . . . . . . . . . . . . . 1,210,000 1,210,000 Hobart, IN ED RRB, MMM Invest, Inc. Project, 4.20%(1) . . . . . . . . . . . . . . 1,785,000 1,785,000 IN Development FAU RB, Brebeuf Prep School, 4.20%(1) . . . . . . . . . . . . . . 3,500,000 3,500,000 IN EDFAU RB, Saroyan Hardwoods, Inc., 4.30%(1) . . . . . . . . . . . . . . . . . 2,000,000 2,000,000 Marion Cnty., IN HA Hospital Facility RB, Indianapolis Osteopathic, 4.25%(1) . . 3,645,000 3,645,000 Rockport, IN PC RRB, Indiana & Michigan Electric Co. Project, Series A, 4.20%(1) 13,000,000 13,000,000 St. Joseph Cnty., IN HA Special Obligation Bonds, Madison Center, Inc. Project, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,875,000 6,875,000 St. Joseph Cnty., IN Industrial Educational Facilities RB, Holy Cross College, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 1,305,000 1,305,000 -------------- 38,945,000 -------------- IOWA-0.6% Des Moines, IA CD RB, Series A, 4.15%(1) . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000 Mason City, IA IDV RB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . 4,900,000 4,900,000 -------------- 9,900,000 -------------- KANSAS-0.5% Kansas City, KS Private Activity RRB, Inland Container Corp., 4.35%(1) . . . . . 5,200,000 5,200,000 Olathe, KS Industrial RRB, William F. Bieber Project, 4.35%(1) . . . . . . . . . 1,675,000 1,675,000 Ottawa, KS IDV RB, Laich Industries Project, 5.40%(1) . . . . . . . . . . . . . . 700,000 700,000 -------------- 7,575,000 --------------
6 7 STATEMENT OF INVESTMENTS (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ -------------- KENTUCKY-1.0% Jamestown, KY Industrial Building RB, Union Underwear Co., 4%(1) . . . . . . . . $ 1,000,000 $ 1,000,000 Mayfield, KY Multi-City Lease RB, Kentucky League of Cities Funding Trust, 4.30%(1) . . . . . . . . . . . . . . . . . . . . . . . . 15,200,000 15,200,000 -------------- 16,200,000 -------------- LOUISIANA-0.4% East Baton Rouge Parish, LA IDV Board RRB, La Quinta Motor Inns, Inc., 4.25%(1) . 2,125,000 2,125,000 LA GORB, Series A, MBIA Insured, 6.60%, 8/1/97 . . . . . . . . . . . . . . . . . 1,000,000 1,002,214 Lake Charles, LA Harbor & Terminal District RB, Reynolds Metals Co. Project, 3.75%, 12/1/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . 4,085,000 4,085,000 -------------- 7,212,214 -------------- MARYLAND-4.1% Anne Arundel Cnty., MD ED RB, West Capitol, Series A, 4.20%(1) . . . . . . . . . 6,000,000 6,000,000 Hartford Cnty., MD RRB, 1001 Partnership Facility Project, 3.70%(1) . . . . . . . 2,550,000 2,550,000 MD Health & HEFAU RB, Carroll General Pooled Loan Program, Series A, 4.20%(1) . . 1,060,000 1,060,000 MD Health & HEFAU RB, University of Maryland Pooled Loan Program, Series B, 3.70%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,150,000 1,150,000 Montgomery Cnty., MD GOB, Series A, 5%, 5/1/98 . . . . . . . . . . . . . . . . . 4,750,000 4,792,148 Montgomery Cnty., MD MH Opportunities Commission RB, Grosvenor House Project, Series A, 3.70%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,700,000 19,700,000 Montgomery Cnty., MD MH Opportunities Commission RB, Issue A, 4.35%(1) . . . . . 23,800,000 23,800,000 Worcester Cnty., MD RRB, White Marlin Mall Project, 3.70%(1) . . . . . . . . . . 7,850,000 7,850,000 -------------- 66,902,148 -------------- MASSACHUSETTS-1.2% MA Commonwealth GOB, Series C, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . 14,600,000 14,600,000 MA HFA RB, SFM, Series 50, 3.90%, 6/1/98 . . . . . . . . . . . . . . . . . . . . 5,535,000 5,535,000 North Andover Town, MA Industrial RB, Atlee-Oak Realty Trust of Delaware, Inc., 4.75%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350,000 350,000 -------------- 20,485,000 -------------- MICHIGAN-0.8% Madison Heights, MI ED RB, Red Roof Inns Project, 3.80%(1) . . . . . . . . . . . 1,000,000 1,000,000 MI Hospital FAU RRB, Mount Clemens General Hospital, 4.15%(1) . . . . . . . . . . 9,920,000 9,920,000 MI Job DAU RB, East Lansing Residence Associates Project, 4.10%(1) . . . . . . . 1,900,000 1,900,000 -------------- 12,820,000 --------------
7 8 STATEMENT OF INVESTMENTS (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ -------------- MINNESOTA-4.5% Anoka City, MN MH RB, Walker Plaza, Series B, 4.20%(1) . . . . . . . . . . . . . $ 1,750,000 $ 1,750,000 Austin, MN IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . . 4,600,000 4,600,000 Blaine, MN IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . . 5,500,000 5,500,000 Bloomington, MN Port Authority Tax RRB, Mall of America Project, Series C, FSA Insured, 4.20%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,300,000 8,300,000 Burnsville, MN CD RB, SuperValu Stores, Inc. Project, Series 83, 4.15%(1) . . . . 5,500,000 5,500,000 Dakota Cnty., MN Housing & Redevelopment Multifamily Mtg. RB, Westwood Ridge Rental Housing Project, Series A, 4.20%(1) . . . . . . . . . . . . . . . 4,100,000 4,100,000 Eden Prairie, MN CD RRB, Lakeview Business Center, 4.20%(1) . . . . . . . . . . . 2,495,000 2,495,000 Eden Prairie, MN IDV RB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . 1,000,000 1,000,000 Maplewood, MN CD RRB, 5.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 625,000 625,000 Minneapolis, MN CD RRB, Minnehaha/Lake Partners Project, 4.20%(1) . . . . . . . . 2,750,000 2,750,000 Minneapolis, MN Community Development Agency RRB, Heart Institute Foundation Project, 4.20%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 2,900,000 2,900,000 Minneapolis, MN RB, Catholic Charities Project, 4.15%(1) . . . . . . . . . . . . 3,000,000 3,000,000 New Ulm, MN Hospital Facilities RB, Health Center Systems, 4%(1) . . . . . . . . 2,400,000 2,400,000 North Suburban Hospital District, MN RB, Anoka & Ramsey Counties Hospital Health Center, 4%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,300,000 3,300,000 St. Paul, MN Housing & Redevelopment Authority RB, Science Museum of Minnesota, Series B, 3.30%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,300,000 7,300,000 St. Paul, MN Port Authority Tax Increment RB, Westgate Office & Industrial Center Project, 4.15%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,500,000 10,500,000 Stillwater, MN IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . 5,500,000 5,500,000 Waite Park, MN Housing RRB, Park Meadows Apts. Project, 4.20%(1) . . . . . . . . 3,235,000 3,235,000 -------------- 74,755,000 -------------- MISSOURI-3.1% MO Environmental Improvement & Energy Research Authority PC RB, Union Electric Co., Series B, 3.95%, 6/1/98 . . . . . . . . . . . . . . . . . . . . 37,975,000 37,976,124 St. Charles Cnty., MO IDV RRB, Remington Apts. Project, 4.50%(1) . . . . . . . . 12,700,000 12,700,000 -------------- 50,676,124 -------------- MONTANA-1.1% Great Falls, MT IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . 1,000,000 1,000,000 MT Board Investment RR RB, Colstrip Project, 4.25%(1) . . . . . . . . . . . . . . 3,000,000 3,000,000 MT HFAU RB, Health Care Pooled Loan Program, Series A, FGIC Insured, 4.15%(1) . . 14,300,000 14,300,000 -------------- 18,300,000 --------------
8 9 STATEMENT OF INVESTMENTS (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ -------------- NEBRASKA-0.2% Norfolk, NE IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . . $ 2,800,000 $ 2,800,000 -------------- NEW JERSEY-0.2% NJ EDAU Manufacturing Facilities RB, VPR Commerce Center Project, 4.40%(1) . . . 3,750,000 3,750,020 -------------- NEW YORK-6.3% Buffalo, NY RAN, Series A, 4.25%, 7/15/97 . . . . . . . . . . . . . . . . . . . . 1,000,000 1,000,262 Erie Cnty., NY RAN, 4.50%, 6/25/98 . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,006,628 Franklin Cnty., NY IDA RAN, McAdam Cheese Co. Project, 4.20%(1) . . . . . . . . . 600,000 600,000 Hempstead Town, NY GOB, AMBAC Insured, 5%, 2/15/98 . . . . . . . . . . . . . . . 2,572,000 2,588,756 Monroe Cnty., NY RAN, 4.25%, 12/12/97 . . . . . . . . . . . . . . . . . . . . . . 20,050,000 20,105,499 NY PAU RB, Series SG4, 4.35%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 2,295,000 2,295,001 NYC HDC Multifamily Mtg. RB, Columbus Project, Series A, 4.10%(1) . . . . . . . . 2,800,000 2,800,000 NYC HDC Multifamily Mtg. RB, James Tower Development, Series A, 4.10%(1) . . . . 3,000,000 3,000,000 NYC Health & Hospital Corp. RB, Series D, 4.10%(1) . . . . . . . . . . . . . . . 1,500,000 1,500,000 NYC IDA RB, Brooklyn Navy Yard Cogeneration, Series B, 4.15%(1) . . . . . . . . . 15,000,000 15,000,000 NYC IDA RB, Brooklyn Navy Yard Cogeneration, Series A, 4.20%(1) . . . . . . . . . 800,000 799,988 NYC Trust Cultural Resources RRB, American Museum of Natural History, Series A, MBIA Insured, 4.05%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000 2,200,042 NYC Trust Cultural Resources RRB, American Museum of Natural History, Series B, MBIA Insured, 4.05%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 800,000 NYS DA COP, Rockefeller University, 3.52%(1) . . . . . . . . . . . . . . . . . . 500,000 500,013 NYS Environmental Quality GOB, 3.70%, 8/27/97 . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000 NYS ERDAUEF RB, L.I. Lighting Co., Series A, 4.095%(1) . . . . . . . . . . . . . 400,000 400,002 NYS ERDAUEF RB, L.I. Lighting Co., Series B, 4.20%(1) . . . . . . . . . . . . . . 700,000 700,000 NYS ERDAUPC RRB, Orange/Rockland Utility Project, Series A, AMBAC Insured, 4.05%(1) . . . . . . . . . . . . . . . . . . . . . . 800,000 799,998 NYS LGAC RB, Series SG100, MBIA Insured, 3.75%, 7/24/97 . . . . . . . . . . . . . 10,420,000 10,420,000 NYS LGAC RB, Series SG99, MBIA Insured, 3.75%, 7/24/97(2) . . . . . . . . . . . . 17,195,000 17,195,000 NYS MCFFA RB, Lenox Hill Hospital Project, Series A, 4.10%(1) . . . . . . . . . . 4,300,000 4,299,991 NYS MCFFA RRB, Mental Health Services, Series A, 8.875%, 8/15/97(2) . . . . . . . 1,550,000 1,590,362 NYS TBTAU Beneficial Interest COP, MBIA Insured, 3.80%, 7/15/97(2) . . . . . . . 3,300,000 3,300,000 NYS TBTAU COP, Series A, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . 9,700,000 9,700,000 -------------- 104,601,542 -------------- NORTH CAROLINA-0.4% NC National Bank Pooled Tax-Exempt Trust COP, Series 1990A, 4.283%(1) . . . . . . 3,830,000 3,830,000 NC National Bank Pooled Tax-Exempt Trust COP, Series 1990B, 4.20%(1) . . . . . . 2,015,000 2,015,000 -------------- 5,845,000 --------------
9 10 STATEMENT OF INVESTMENTS (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ -------------- NORTH DAKOTA-0.1% Bismarck, ND IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . $ 800,000 $ 800,000 Bismarck, ND IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . 1,500,000 1,500,000 -------------- 2,300,000 -------------- OHIO-6.0% Coshocton Cnty., OH Hospital FA RB, Coshocton Cnty. Memorial Hospital Project, 4.26%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,500,000 Cuyahoga Cnty., OH IDV RB, Southwest LP, 3.75%, 12/1/97(2) . . . . . . . . . . . 2,015,000 2,015,000 Gallia Cnty., OH IDV Mtg. RRB, Jackson Pike Assn., 3.75%, 12/15/97(2) . . . . . . 4,040,000 4,040,000 Greene Cnty., OH IDV RRB, SuperValu Holdings, Inc. Project, 4.15%(1) . . . . . . 1,000,000 1,000,000 Lorain Cnty., OH Hospital Facilities RB, Catholic Health Care Partners, 3.80%, 7/3/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000 Lucas Cnty., OH IDV RRB, H.H. Motel, Inc. Project, 4.20%(1) . . . . . . . . . . . 3,275,000 3,275,000 Marion Cnty., OH Hospital RB, Pooled Lease Program, 4.20%(1) . . . . . . . . . . 6,560,000 6,560,000 Marion Cnty., OH Hospital RB, Pooled Lease Program, 4.20%(1) . . . . . . . . . . 3,460,000 3,460,000 Merchant & Mechanics Tax-Exempt Mtg. Bond Trust RB, 3.70%, 9/1/97(2) . . . . . . 925,000 925,000 Miami Valley, OH Tax-Exempt Mtg. Trust RB, Series 86, 4.88%, 10/15/97(2) . . . . 2,765,000 2,765,000 OH Air Quality DAU PC RRB, Series B, 3.85%, 10/9/97 . . . . . . . . . . . . . . . 4,655,000 4,655,000 OH Water DAU PC Facilities RB, Duquesne Commercial Paper, Series A, 3.85%, 10/9/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,955,000 33,955,000 Scioto Cnty., OH HCF RB, Hill View Retirement Center, 3.90%, 12/1/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,815,000 2,815,000 Toledo, OH City Services Special Assessment Nts., 4.15%(1) . . . . . . . . . . . 2,720,000 2,720,000 Warren Cnty., OH IDV RRB, Liquid Container Project, 4.25%(1) . . . . . . . . . . 1,670,000 1,670,000 -------------- 98,355,000 -------------- OKLAHOMA-0.6% Claremore, OK Industrial & Redevelopment Authority RRB, Worthington Cylinder Project, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,220,000 2,220,000 Cleveland Cnty., OK Public Facilities RB, Hunt Development Project, Series A, 4.40%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,000,000 Mid-West, OK Tax-Exempt Mtg. Board Trust RB, 3.85%(1) . . . . . . . . . . . . . . 820,000 820,000 Tulsa, OK Industrial Authority RB, 3.60%(1) . . . . . . . . . . . . . . . . . . . 6,500,000 6,500,000 -------------- 10,540,000 -------------- OREGON-0.6% Hillsboro, OR RB, Oregon Graduate Institute, 4.20%(1) . . . . . . . . . . . . . . 6,900,000 6,900,000 OR Economic & IDV Commission RB, Eagle-Picher Industries Project, 4%(1) . . . . . 3,600,000 3,600,000 -------------- 10,500,000 --------------
10 11 STATEMENT OF INVESTMENTS (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ -------------- PENNSYLVANIA-1.9% Delaware Cnty., PA IDA PC RRB, Philadelphia Electric Co., FGIC Insured, 3.65%, 7/23/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000,000 $ 10,000,000 Montgomery Cnty., PA IDAU RB, Quaker Chemical Corp. Project, 3.954%(1) . . . . . 1,600,000 1,600,000 PA HEFAU RB, Council Independent Colleges, Series A3, 4.75%, 4/1/98(2) . . . . . 2,600,000 2,615,102 PA HEFAU RB, Council Independent Colleges, Series A4, 4.75%, 4/1/98 . . . . . . . 1,200,000 1,206,970 PA Higher Education University Funding Obligations RB, Temple University, 4.75%, 5/18/98(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000,000 16,114,996 -------------- 31,537,068 -------------- SOUTH CAROLINA-3.4% Charleston Center Tax-Exempt Bonds, Grantor Trust No. 2, 3.90%, 11/1/97(2) . . . 4,407,500 4,407,500 Charleston Center Tax-Exempt Bonds, Grantor Trust No. 3, 3.50%, 7/1/97(2) . . . . 9,452,500 9,452,500 Charleston Center Tax-Exempt Bonds, Grantor Trust No. 6, 3.70%, 10/1/97(2) . . . 8,075,000 8,075,000 Dorchester Cnty., SC PC Facilities RRB, The BOC Group, Inc. Project, 4.20%(1) . . 3,500,000 3,500,000 Piedmont, SC MPA Electrical RRB, Series D, MBIA Insured, 4.15%(1) . . . . . . . . 15,000,000 15,000,000 SC Jobs & EDAU RB, Wellman Income Project, 4.30%(1) . . . . . . . . . . . . . . . 1,000,000 1,000,000 SC Public Service Authority RB, Series 182, MBIA Insured, 4.25%(1) . . . . . . . 14,200,000 14,200,000 -------------- 55,635,000 -------------- SOUTH DAKOTA-2.1% Grant Cnty., SD PC RRB, Otter Tail Power Co. Project, 4.20%(1) . . . . . . . . . 10,400,000 10,400,000 SD Health & Educational Facilities RB, Sioux Valley Hospital Issue, 4.20%(1) . . 19,700,000 19,700,000 Watertown, SD IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . 3,900,000 3,900,000 -------------- 34,000,000 -------------- TENNESSEE-2.1% Clarksville, TN Public Building Authority RB, Pooled Financing-Tennessee Municipal Bond Fund, 4.20%(1) . . . . . . . . . . . . . . . . . . . . . . . . 10,800,000 10,800,000 Dayton, TN IDV Board RRB, La-Z-Boy Chair Co. Project, 4.20%(1) . . . . . . . . . 4,350,000 4,350,000 Knox Cnty., TN IDV Board RB, Weisgarber Partners, FGIC Insured, 3.85%(1) . . . . 3,000,000 3,000,000 Metropolitan Government of Nashville & Davidson Cnty., TN Educational & HF Board RB, Vanderbilt University Project, Series 1985B, 3.95%, 5/1/98(2) . . 2,500,000 2,500,000 Metropolitan Government of Nashville & Davidson Cnty., TN MH RB, Arbor Crest Project, Series B, 4.20%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 3,550,000 3,550,000 Rutherford Cnty., TN IDV Board Industrial Building RB, Derby Industries, Inc. Project, 4.30%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,345,000 1,345,000 TN GOB, 5%, 5/1/98(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,640,000 8,716,615 -------------- 34,261,615 --------------
11 12 STATEMENT OF INVESTMENTS (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ -------------- TEXAS-12.7% Angelina & Neches TX River Authority PC RRB, Temple-Inland Forest Project, 4.35%(1) . . . . . . . . . . . . . . . . . . . . $ 7,350,000 $ 7,350,000 Greater East TX HEAU RRB, Student Loans, Series A, 4.10%, 5/1/98 . . . . . . . . 4,700,000 4,700,000 Gulf Coast, TX IDAU Marine Terminal RB, Amoco Oil Project, 3.75%, 12/1/97(2) . . 8,065,000 8,065,000 Harris Cnty., TX Criminal Justice Center RB, Series SG96, FGIC Insured, 3.90%, 8/14/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,475,000 7,475,000 Harris Cnty., TX Toll Road COP, 3.97%(1) . . . . . . . . . . . . . . . . . . . . 9,500,000 9,500,000 Hockley Cnty., TX IDV Corp. PC RB, Amoco Project-Standard Oil Co., 3.60%, 9/1/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000 Houston, TX WSS RB, Series SG77, 4.35%(1) . . . . . . . . . . . . . . . . . . . . 35,000,000 35,000,000 San Antonio, TX Electric & Gas RRB, Series SG105, 3.85%, 8/7/97 . . . . . . . . . 20,000,000 20,000,000 Travis Cnty., TX Housing Finance Corp. MH RB, Bent Oaks Apts., 4.25%(1) . . . . . 4,400,000 4,400,000 TX Tax & RAN, 4.75%, 8/29/97 . . . . . . . . . . . . . . . . . . . . . . . . . . 78,150,000 78,253,678 TX Turnpike Authority RB, Dallas Northtollway, Series SG70, 4.35%(1) . . . . . . 15,325,000 15,325,000 -------------- 210,068,678 -------------- UTAH-0.5% UT HFA MH RRB, Candlestick Apts. Project, 4.15%(1) . . . . . . . . . . . . . . . 6,400,000 6,400,000 Weber Cnty., UT IDV RRB, Parker Properties, Inc. Project, 4.20%(1) . . . . . . . 2,600,000 2,600,000 -------------- 9,000,000 -------------- VERMONT-0.3% VT Educational & Health Buildings Financing Agency RB, Middlebury College Project, Series 1988A, 3.95%, 5/1/98(2) . . . . . . . . . . . . . . . . . . . 4,700,000 4,700,000 VT IDAU RB, Sherbern Corp., Series 1998, 3.60%(1) . . . . . . . . . . . . . . . . 1,005,000 1,005,000 -------------- 5,705,000 -------------- WASHINGTON-1.6% Port Longview, WA IDV RB, Longview Fibre Co. Project, 4.35%(1) . . . . . . . . . 5,000,000 5,000,000 Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 1, 4.10%(1) . . . 1,010,000 1,010,000 Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 2, 4.10%(1) . . . 1,725,000 1,725,000 Seattle, WA IDV Corp. RB, RICS LP, 4.10%(1) . . . . . . . . . . . . . . . . . . . 4,950,000 4,950,000 WA GORB, Series 1995C, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 13,100,000 13,100,000 -------------- 25,785,000 -------------- WEST VIRGINIA-0.3% Beckley, WV RAN, Series A, 4.20%(1) . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,500,000 Cabell Cnty., WV BOE GOB, MBIA Insured, 8%, 5/1/98 . . . . . . . . . . . . . . . 2,625,000 2,712,051 -------------- 4,212,051 --------------
12 13 STATEMENT OF INVESTMENTS (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ -------------- WYOMING-0.2% Uinta Cnty., WY PC RB, AMOCO Standard Oil Co. of Indiana Project, 3.90%, 12/1/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 $ 3,000,000 -------------- U.S. POSSESSIONS-0.0% PR Industrial, Medical & Environmental PC Facilities FAU RB, Reynolds Metals Co. Project, 3.80%, 9/1/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 200,016 ----------- -------------- Total Investments, at Value . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.7% 1,693,607,897 Liabilities in Excess of Other Assets . . . . . . . . . . . . . . . . . . . . . . (2.7) (44,861,768) ----------- -------------- Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $1,648,746,129 =========== ==============
13 14 STATEMENT OF INVESTMENTS (Continued) Centennial Tax Exempt Trust To simplify the listings of securities abbreviations are used per the table below: BOE Board of Education HFAU Health Facilities Authority CD Commercial Development HFFAU Health Facilities Finance Authority COP Certificates of Participation IDV Industrial Development DA Dormitory Authority IDA Industrial Development Agency DAU Development Authority IDAU Industrial Development Authority ED Economic Development LGAC Local Government Assistance Corp. EDAU Economic Development Authority L.I. Long Island EDFAU Economic Development Finance Authority MCFFA Medical Care Facilities Finance Agency ERDAUEF Energy Research & Development Authority Electric Facilities MH Multifamily Housing ERDAUPC Energy Research & Development Authority Pollution Control MPA Municipal Power Agency FA Facilities Authority NYC New York City FAU Finance Authority NYS New York State GOB General Obligation Bonds PAU Power Authority GORB General Obligation Refunding Bonds PC Pollution Control HA Hospital Authority PCFAU Pollution Control Finance Authority HAU Housing Authority PPA Public Power Agency HCF Health Care Facilities RA Redevelopment Agency HDC Housing Development Corp. RAN Revenue Anticipation Nts. HEAU Higher Education Authority RB Revenue Bonds HEFAU Higher Educational Facilities Authority RR Resource Recovery HF Health Facilities RRB Revenue Refunding Bonds HFA Housing Finance Agency SFM Single Family Mortgage SWD Solid Waste Disposal TBTAU Triborough Bridge & Tunnel Authority 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, 1997. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days notice. 2. Put obligation redeemable at full face value on the date reported. See accompanying Notes to Financial Statements. 14 15 STATEMENT OF ASSETS AND LIABILITIES June 30, 1997 Centennial Tax Exempt Trust ASSETS: Investments, at value-see accompanying statement . . . . . . . . . . . . . . . . . . . . . $1,693,607,897 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,677 Receivables: Shares of beneficial interest sold . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,202,566 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,950,146 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,069 -------------- Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,746,839,355 -------------- LIABILITIES: Payables and other liabilities: Investments purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,537,733 Shares of beneficial interest redeemed . . . . . . . . . . . . . . . . . . . . . . . . . 18,476,819 Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,668,348 Service plan fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,349 Transfer and shareholder servicing agent fees . . . . . . . . . . . . . . . . . . . . . 56,005 Trustees' fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,158 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218,814 -------------- Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,093,226 -------------- NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,648,746,129 ============== COMPOSITION OF NET ASSETS: Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,648,641,002 Accumulated net realized gain on investment transactions . . . . . . . . . . . . . . . . . 105,127 -------------- NET ASSETS-applicable to 1,648,656,970 shares of beneficial interest outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,648,746,129 ============== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE . . . . . . . . . . . . . . $1.00
See accompanying Notes to Financial Statements. 15 16 STATEMENT OF OPERATIONS For the Year Ended June 30, 1997 Centennial Tax Exempt Trust INVESTMENT INCOME-Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $58,330,447 ----------- EXPENSES: Management fees-Note 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,858,451 Service plan fees-Note 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,177,577 Transfer and shareholder servicing agent fees-Note 3 . . . . . . . . . . . . . . . . . . . 720,214 Registration and filing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364,067 Custodian fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251,398 Shareholder reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,016 Legal and auditing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,178 Trustees' fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,685 Insurance expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,792 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,308 ----------- Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,521,686 Less expenses paid indirectly-Note 3 . . . . . . . . . . . . . . . . . . . . . . . . . . (169,628) ----------- Net expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,352,058 ----------- NET INVESTMENT INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,978,389 NET REALIZED GAIN ON INVESTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,199 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $47,094,588 ===========
================================================================================ STATEMENTS OF CHANGES IN NET ASSETS
Year Ended June 30, --------------------------------------- 1997 1996 --------------- -------------- OPERATIONS: Net investment income . . . . . . . . . . . . . . . . . . . . . . $ 46,978,389 $ 46,013,851 Net realized gain . . . . . . . . . . . . . . . . . . . . . . . . 116,199 244,254 -------------- -------------- Net increase in net assets resulting from operations . . . . . . 47,094,588 46,258,105 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS . . . . . . . . . . . (47,224,231) (46,061,715) BENEFICIAL INTEREST TRANSACTIONS: Net increase in net assets resulting from beneficial interest transactions-Note 2 . . . . . . . . . . . . . . . . . . . . . 222,881,798 110,876,607 -------------- -------------- NET ASSETS: Total increase . . . . . . . . . . . . . . . . . . . . . . . . . 222,752,155 111,072,997 Beginning of period . . . . . . . . . . . . . . . . . . . . . . . 1,425,993,974 1,314,920,977 -------------- -------------- End of period . . . . . . . . . . . . . . . . . . . . . . . . . $1,648,746,129 $1,425,993,974 ============== ==============
See accompanying Notes to Financial Statements. 16 17 FINANCIAL HIGHLIGHTS Centennial Tax Exempt Trust
Year Ended June 30, --------------------------------------------------- 1997 1996 1995 1994 1993 ---- ---- ---- ---- ---- 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 .02 .02 Dividends and distributions to shareholders . . . . . . . . (.03) (.03) (.03) (.02) (.02) ------- ------- ------- ------- ------- Net asset value, end of period . . . . . . . . . . . . . . $1.00 $1.00 $1.00 $1.00 $1.00 ======= ======= ======= ======= ======= TOTAL RETURN, AT NET ASSET VALUE(1) . . . . . . . . . . . . . . . . . . . 3.01% 3.16% 3.17% 1.90% 2.19% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in millions) . . . . . . . . . . $1,649 $1,426 $1,315 $1,039 $981 Average net assets (in millions) . . . . . . . . . . . . . $1,591 $1,473 $1,127 $1,057 $977 Ratios to average net assets: Net investment income . . . . . . . . . . . . . . . . . . 2.95% 3.12% 3.13% 1.87% 2.08% Expenses(2) . . . . . . . . . . . . . . . . . . . . . . . . 0.72% 0.72% 0.73% 0.76% 0.76%
1. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns reflect changes in net investment income only. 2. Beginning in fiscal 1995, the expense ratio reflects the effect of gross expenses paid indirectly by the Trust. Prior year expense ratios have not been adjusted. See accompanying Notes to Financial Statements. 17 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 a diversified, open-end management investment company. The Trust's investment objective is to seek the maximum short-term interest income exempt from Federal income taxes that is consistent with low capital risk and the maintenance of liquidity by investing in short-term municipal securities. The Trust's investment adviser is Centennial Asset Management Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). The following is a summary of significant accounting policies consistently followed by the Trust. Investment Valuation-Portfolio securities are valued on the basis of amortized cost, which approximates market value. Federal Taxes-The Trust intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. Therefore, no federal income or excise tax provision is required. Distributions to Shareholders-The Trust intends to declare dividends from net investment income each day the New York Stock Exchange is open for business and pay such dividends monthly. To effect its policy of maintaining a net asset value of $1.00 per share, the Trust may withhold dividends or make distributions of net realized gains. Other-Investment transactions are accounted for on the date the investments are purchased or sold (trade date). Realized gains and losses on investments are determined on an identified cost basis, which is the same basis used for federal income tax purposes. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 18 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, 1997 Year Ended June 30, 1996 ---------------------------------- --------------------------------- Shares Amount Shares Amount --------------- ---------------- --------------- --------------- Sold . . . . . . . . . . . 4,793,933,452 $ 4,793,933,452 4,357,729,565 $ 4,357,729,565 Dividends and distributions reinvested . . . . . . . . 45,861,059 45,861,059 45,904,203 45,904,203 Redeemed . . . . . . . . . (4,616,912,713) (4,616,912,713) (4,292,757,161) (4,292,757,161) -------------- --------------- --------------- --------------- Net increase . . . . . . . 222,881,798 $ 222,881,798 110,876,607 $ 110,876,607 ============== =============== =============== ===============
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust which provides for a fee of 0.50% of the first $250 million of net assets; 0.475% of the next $250 million of net assets; 0.45% of the next $250 million of net assets; 0.425% of the next $250 million of net assets; 0.40% of the next $250 million of net assets; 0.375% of the next $250 million of net assets; 0.35% of the next $500 million of net assets and 0.325% of net assets in excess of $2 billion. Until Trust net assets reach $1.5 billion, the annual fee payable to the Manager will be reduced by $100,000. Shareholder Services, Inc. (SSI), a subsidiary of OFI, is the transfer and shareholder servicing agent for the Trust, and for other registered investment companies. SSI's total costs of providing such services are allocated ratably to these companies. Expenses paid indirectly represent a reduction of custodian fees for earnings on cash balances maintained by the Trust. Under an approved service plan, the Trust may expend up to 0.20% of its net assets annually to reimburse the Manager, as distributor, for costs incurred in connection with the personal service and maintenance of accounts that hold shares of the Trust, including amounts paid to brokers, dealers, banks and other institutions. During the year ended June 30, 1997, the Trust paid $10,400 to a broker/dealer affiliated with the Manager as reimbursement for distribution-related expenses. 19 20 INDEPENDENT AUDITORS' REPORT Centennial Tax Exempt Trust The Board of Trustees and Shareholders of Centennial Tax Exempt Trust: We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Centennial Tax Exempt Trust as of June 30, 1997, the related statement of operations for the year then ended, the statements of changes in net assets for the years ended June 30, 1997 and 1996, and the financial highlights for the period July 1, 1992 to June 30, 1997. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at June 30, 1997 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of Centennial Tax Exempt Trust at June 30, 1997, the results of its operations, the changes in its net assets, and the financial highlights for the respective stated periods, in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Denver, Colorado July 22, 1997 20 21 FEDERAL INCOME TAX INFORMATION (Unaudited) Centennial Tax Exempt Trust In early 1998, shareholders will receive information regarding all dividends and distributions paid to them by the Trust during calendar year 1997. Regulations of the U.S. Treasury Department require the Trust to report this information to the Internal Revenue Service. None of the dividends paid by the Trust during the fiscal year ended June 30, 1997 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 adviser for specific guidance. 21 22 (This Page Intentionally Left Blank) 22 23 (This Page Intentionally Left Blank) 23 24 [PHOTO] 1997 ANNUAL REPORT CENTENNIAL TAX EXEMPT TRUST CENTENNIAL TAX EXEMPT TRUST Officers and Trustees James C. Swain, Chairman and Chief Executive Officer Bridget A. Macaskill, Trustee and President Robert G. Avis, Trustee William A. Baker, Trustee Charles Conrad, Jr., Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Ned M. Steel, Trustee George C. Bowen, Vice President, Treasurer and Assistant Secretary Andrew J. Donohue, Vice President and Secretary Michael A. Carbuto, Vice President Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Robert G. Zack, Assistant Secretary Investment Adviser and Distributor Centennial Asset Management Corporation Transfer and Shareholder Servicing Agent Shareholder Services, Inc. Custodian of Portfolio Securities Citibank, N.A. Independent Auditors Deloitte & Touche LLP Legal Counsel Myer, Swanson, Adams & Wolf, P.C. This is a copy of a report to shareholders of Centennial Tax Exempt Trust. This report must be preceded or accompanied by a Prospectus of Centennial Tax Exempt Trust. For material information concerning the Trust, see the Prospectus. For shareholder servicing, call: 1-800-525-9310 (in U.S.) 303-768-3200 (outside U.S.) Or write: Shareholder Services, Inc. P.O. Box 5143 Denver, CO 80217-5143 RA0160.001.0697 [LOGO] Printed on recycled paper. 24 -----END PRIVACY-ENHANCED MESSAGE-----