-----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, PfdWAfShuVXJzBEz5mq48m/DvP53hdLnWoqObQCtoa14wlNr7SQhvEryNMmlIOkp Bh5Ec6mWVIkWkwD54kWZoQ== 0000950133-99-002969.txt : 19990901 0000950133-99-002969.hdr.sgml : 19990901 ACCESSION NUMBER: 0000950133-99-002969 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990831 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: 99703812 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 FORM N-30D (PERIOD ENDED 6/30/99) 1 1999 ANNUAL REPORT CENTENNIAL TAX EXEMPT TRUST JUNE 30, 1999 2 DEAR SHAREHOLDER: In a year when the bond market was shaken by significant and far-reaching events, such as the collapse of the Japanese economy and the forced rescue of a major hedge fund, tax-exempt money market funds remained an island of stability. October 1998 recorded historic lows for the yields on 30-year U.S. Treasuries. However, even then, the primary concern for tax-exempt fund managers was not loss, but the dwindling supply of tax-exempt issues in a robust U.S. economy. With tax revenues at record highs and many municipalities posting a budget surplus, the need to issue new notes was greatly reduced. Although many of these municipalities have refinanced their old debt in order to take advantage of lower interest rates, the supply remains far below the demand for these issues. Our strategy for managing the Trust in such an environment was to further extend the Trust's average maturities, from 30-60 days, into the 75-85 day range. By exchanging a percentage of our variable rate debt for fixed-rate, longer dated paper, we were able to lock in higher yields. As active managers we are always trying to find the balance between the optimal place for the maturity as well as to meet liquidity demand. For the fiscal year that ended June 30, 1999, the Centennial Tax Exempt Trust produced a compounded annual yield of 2.61%. Without compounding, the corresponding yield was 2.58%. For investors in the 36% tax bracket this is equivalent to a taxable yield of 4.08% with compounding, and 4.03% without. On June 30, 1999, the seven-day annualized yields, with and without compounding, were 2.69% and 2.66%, respectively. It is important to remember that an investment in the Trust is neither insured nor guaranteed by the U.S. Government and there is no assurance the Trust will maintain a stable $1.00 share price.(1) Although the Trust currently holds municipal securities issued by various states, with approximately 36% of the portfolio invested in New York, Texas and Georgia, it is important to note that the determining factor for selecting securities is not geography. In fact, the Trust invests in the following types of tax-exempt municipal securities, among others: variable rate demand notes, primarily notes backed by commercial banks that are payable on demand; put bonds that allow the Trust to redeem the issues at specified intervals before maturity and receive full face value; commercial paper, which includes short term obligations with maturities ranging from 2-270 days, issued (1). Compounded yields assume reinvestment of dividends. Past performance is not indicative of future results. 3 by top-rated borrowers and backed by bank letters of credit; and the general market notes, where we seek out individual tax-exempt securities that meet our standards for quality, yield and maturity. Ultimately the portfolio is compiled from all over the country. We also buy a number of insured issues. The insurance enables us to benefit from the superior rates of a long-term bond combined with many of the desirable features of a short-term bond. Looking to the future, we intend to continue in the same fashion; balancing maturities while carefully monitoring market activity. On June 30, 1999 the Federal Reserve raised short-term interest rates in an attempt to stem the rapid growth of the U.S. economy. However, in our opinion, this move had already been factored in by the market and should have minimal effect on near-term prices. Although we continue to have some concern about the Y2K problem, the Federal Reserve has indicated that at year-end, it will allow selected banks to borrow at certain discount windows in order to guarantee liquidity. With U.S. financial institutions thus prepared, it may be that only our connections with international entities could create some disruption. In any case we will continue to invest conservatively, keeping in mind our shareholders' objectives of safety and liquidity. Sincerely, /s/ JAMES C. SWAIN James C. Swain Chairman Centennial Tax Exempt Trust /s/ BRIDGET A. MACASKILL Bridget A. Macaskill President Centennial Tax Exempt Trust July 22, 1999 4 STATEMENT OF INVESTMENTS June 30, 1999 Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ --------------- SHORT-TERM TAX-EXEMPT OBLIGATIONS--108.1% ARIZONA--2.1% AZ HFAU RB, Blood Systems, Inc., 3.62%(1).............................................. $ 8,795,000 $ 8,795,000 Maricopa Cnty., AZ GORB, FGIC Insured, 6.25%, 7/1/99................................... 2,000,000 2,000,000 Phoenix, AZ Airport RRB, Series A, MBIA Insured, 5.40%, 7/1/99......................... 2,000,000 2,000,000 Phoenix, AZ IDAU MH RRB, Paradise Lakes Apts. Project, 1995 Series, 3.65%(1)........... 22,500,000 22,500,000 Tucson, AZ IDAU RB, Geronimo Building Renovation Project, 4%, 12/15/99(2).............. 965,000 965,000 ---------------- 36,260,000 ---------------- CALIFORNIA--9.3% Anaheim, CA HAU MH RRB, Park Vista Apts., Series A, 3.75%(1)........................... 1,000,000 1,000,000 CA CDAU Apartment Development RRB, Whispering Winds Apts., Series D, 3.15%(1).......... 1,000,000 1,000,000 CA GOB, Tendered Option Certificates, Series 1998A, MBIA Insured, 3.65%(1)(3).......... 3,027,000 3,027,000 CA HEAU Student Loan RB, Series C, 3.40%(1)............................................ 4,000,000 4,000,000 CA HFFAU RRB, Catholic West Project, Series C, MBIA Insured, 3.30%(1).................. 2,000,000 1,999,979 CA Municipal RB, Series SG89, MBIA Insured, 3.62%(1)................................... 7,425,000 7,425,000 CA School Cash Reserve Program Authority RB, Series A, 4%, 7/3/00...................... 70,000,000 70,612,500 CA Statewide CDC RB, Fibrebond, Inc., 3.30%(1)......................................... 1,310,000 1,309,988 Covina City, CA RA MH RRB, Shadowhills Apts., Inc., Series A, 3.55%(1)................. 2,700,000 2,700,020 Huntington Park, CA RA MH RB, Casa Rita Apts., Series A, 3.52%(1)...................... 1,100,000 1,100,000 Los Angeles Cnty., CA Pension Obligation RB, Series B, AMBAC Insured, 3.25%(1)......... 1,000,000 1,000,000 Los Angeles Cnty., CA Pension Obligation RRB, Series A, 3.25%(1)....................... 2,000,000 2,000,000 Los Angeles, CA Airport RB, Series SG61, 3.64%(1)...................................... 1,055,000 1,055,000 Los Angeles, CA TAN & RAN, 4%, 6/30/00................................................. 40,000,000 40,262,400 Modesto, CA Irrigation District FAU RB, Series SG66, 3.57%(1).......................... 500,000 500,000 Oceanside, CA MH RRB, Lakeridge Apts. Project, 3.75%(1)................................ 3,000,000 2,999,999 Pittsburg, CA Mortgage Obligation RRB, Series A, 3.55%(1).............................. 4,470,000 4,470,000 Sacramento Cnty., CA RB, Trust REG D, Series A28, 3.30%(1)............................. 11,300,000 11,300,000 San Bernardino Cnty., CA TAN & RAN, 4.50%, 9/30/99..................................... 500,000 501,912 San Diego, CA ABN AMRO Munitops Certificates, Series 1998-10, 3.60%(1)(3).............. 1,000,000 1,000,000 San Francisco, CA City & Cnty. Redevelopment FAU RRB, Yerba Buena Garden, 3.25%(1)..... 315,000 315,000 Southern CA PAU RRB, Palo Verde Project, Series B, AMBAC Insured, 3.25%(1)............. 2,400,000 2,400,000 Southern CA Public PAU RRB, Southern Transmission Project, AMBAC Insured, 3.25%(1)..... 1,000,000 1,000,000 ---------------- 162,978,798 ----------------
3 5 STATEMENT OF INVESTMENTS June 30, 1999 (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- -------------- COLORADO--1.7% Arapahoe Cnty., CO MH RRB, Hunters Run Rental Housing, 3.85%(1)........................ $25,600,000 $ 25,600,000 Superior Metropolitan District No. 3, CO GOB, 3.62%(1)................................. 5,000,000 5,000,000 -------------- 30,600,000 -------------- DELAWARE--1.1% DE EDAU IDV RRB, Delaware CleanPower Project, Series A, 3.55%(1)....................... 5,000,000 5,000,000 DE EDAU IDV RRB, Delaware CleanPower Project, Series C, 3.61%(1)....................... 8,000,000 8,000,000 DE EDAU RB, Hospital Billing Project, Series A, BIG Insured, 3.55%(1).................. 5,200,000 5,200,000 DE Transportation Authority System RRB, Sr. Lien, AMBAC Insured, 5.25%, 7/1/99......... 900,000 900,000 -------------- 19,100,000 -------------- FLORIDA--7.2% Dade Cnty., FL WSS RB, FGIC Insured, 3.40%, 4/1/00(2).................................. 9,900,000 9,900,000 Escambia Cnty., FL HFAU RRB, Florida Convertible Centers Project, Series A, 3.50%(1)... 1,150,000 1,150,000 FL BOE Capital Outlay Public Education Refunding Bonds, Series A, 3.75%(1)............. 13,230,000 13,230,000 FL HFA MH RRB, Monterey Lake Project, 3.40%(1)......................................... 19,965,000 19,965,000 FL TUAU RB, Prerefunded, 7.75%, 7/1/99(2).............................................. 1,250,000 1,275,000 FL TUAU RB, Series A, FGIC Insured, 3.10%, 7/1/99(2)................................... 14,850,000 14,850,000 Hillsboro Cnty., FL IDV PC RB, Tampa Electric Co., MBIA Insured, 3.25%, 1/15/00(2)..... 17,795,000 17,795,000 Hillsboro Cnty., FL IDV PC RB, Tampa Electric Co., MBIA Insured, 3.25%, 1/15/00(2)..... 17,795,000 17,795,000 Jacksonville, FL IDV RRB, Airport Hotel Project, 3.50%(1).............................. 3,000,000 3,000,000 Orange Cnty., FL Housing FAU MH RRB, Monterey Project, Series B, 3.75%(1).............. 4,665,000 4,665,000 Putnam Cnty., FL PC DAU RRB, Seminole Electric Co-op, Series D, 3.125%, 12/15/99(2).... 23,000,000 23,000,000 -------------- 126,625,000 -------------- GEORGIA--11.6% Atlanta, GA Urban Residential FAU MH RB, New Community East Lake Project, 3.90%(1)..... 2,000,000 2,000,000 Cobb Cnty., GA HAU MH RRB, Terrell Mill Project, 3.65%(1)(3)........................... 9,400,000 9,400,000 Cobb Cnty., GA SDI RB, 3.50%, 12/31/99................................................. 14,650,000 14,673,119 Cobb Cnty., GA TAN, 3.25%, 12/31/99.................................................... 20,900,000 20,922,465 Fulton Cnty., GA DAU RB, Georgia Tech Athletic Assn., Inc., 3.75%(1)................... 3,000,000 3,000,000 Fulton Cnty., GA DAU RB, Lovett School Project, 3.75%(1)............................... 3,000,000 3,000,000 Fulton Cnty., GA DAU RB, Robert W. Woodruff Arts Project, 3.75%(1)..................... 2,000,000 2,000,000 Fulton Cnty., GA General Fund TAN, 3.25%, 12/31/99..................................... 77,000,000 77,065,198 GA GOB, Series 1995B, 3.69%(1)......................................................... 11,880,000 11,880,000
4 6 STATEMENT OF INVESTMENTS June 30, 1999 (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- -------------- GEORGIA (CONTINUED) Gainesville, GA RA RB, Riverside Military Academy, 3.65%(1)............................ $10,000,000 $ 10,000,000 Gwinnett Cnty., GA SDI Construction Sales Tax Nts., 3.50%, 12/31/99.................... 25,000,000 25,073,281 Roswell, GA HAU MH RRB, Oxford Project, 3.60%(1)....................................... 23,610,000 23,610,000 -------------- 202,624,063 -------------- IDAHO--0.1% Custer Cnty., ID IDV SWD RB, Hecla Mining Co. Project, 3.95%(1)........................ 1,000,000 1,000,000 -------------- ILLINOIS--4.7% Chicago, IL ABN AMRO Munitops Certificates, Trust 1998-3, 3.75%(1)(3).................. 8,735,000 8,735,000 Chicago, IL Lakefront Millennium Parking Facilities RB, 3.15%, 10/1/99(2).............. 22,495,000 22,495,000 Chicago, IL Metropolitan Reclamation Water District GOB, Greater Chicago Capital Improvements, 6.80%, 1/1/00(2)...................................... 5,200,000 5,398,999 Elk Grove Village, IL IDV RB, La Quinta Motor Inns, Inc., 3.10%(1)..................... 2,300,000 2,300,000 IL Development FAU RB, Metropolitan Family Services, 3.415%(1)......................... 8,700,000 8,700,000 IL HFAU RB, Lake Forest Hospital Project, 3.875%(1).................................... 10,565,000 10,565,000 IL HFAU RRB, The Carle Foundation, Series B, 3.20%(1).................................. 5,100,000 5,100,000 IL IDAU RRB, SuperValu Stores, Inc. Project, 3.55%(1).................................. 5,000,000 5,000,000 IL Student Assistance Commission Student Loan RB, Series A, 3.60%(1)................... 10,000,000 10,000,000 West Chicago, IL IDV RRB, Liquid Container Project, 3.65%(1)........................... 3,810,000 3,810,000 -------------- 82,103,999 -------------- INDIANA--7.1% Dyer, IN HCF RRB, Regency Place, Series A-1, 3.77%(1).................................. 3,270,000 3,270,000 Fort Wayne, IN HCF RRB, Health Quest, Series X-A, 3.77%(1)............................. 3,110,000 3,110,000 IN Bank Bonds, Advance Funding Program, Series A-2, 3.50%, 1/19/00..................... 45,000,000 45,128,451 IN MPA RB, Power Supply System, MBIA Insured, 3.69%(1)................................. 13,600,000 13,600,000 Indianapolis, IN HCF RRB, Health Quest, Series A, 3.77%(1)............................. 3,915,000 3,915,000 Indianapolis, IN Local Public Improvement Bank Bonds, Series A, 4%, 1/10/00............ 11,250,000 11,293,740 Indianapolis, IN Local Public Improvement Revenue Nts., Series F, 3.50%, 7/12/99....... 14,025,000 14,027,281 Indianapolis, IN MH RB, Camby Housing Partners Project, 3.75%(1)....................... 5,400,000 5,400,000 Marion Cnty., IN HA Hospital Facility RB, Indianapolis Osteopathic, 3.60%(1)........... 2,810,000 2,810,000 Merrillville, IN HCF RRB, Southlake, Series A-1, 3.77%(1).............................. 3,995,000 3,995,000 Rockport, IN PC RRB, Indiana & Michigan Electric Co. Project, Series A, 3.55%(1)....... 13,000,000 13,000,000 South Bend, IN HCF RRB, Fountainview, Series A-1, 3.77%(1)............................. 3,095,000 3,095,000 St. Joseph Cnty., IN Industrial Educational Facilities RB, Holy Cross College, 3.60%(1) 1,130,000 1,130,000 -------------- 123,774,472 --------------
5 7 STATEMENT OF INVESTMENTS June 30, 1999 (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ---------------- IOWA--1.0% IA School Cash Anticipation Program Warrant Certificates, Series B, FSA Insured, 3.50%, 1/28/00......................................................... $16,740,000 $ 16,789,802 ---------------- KANSAS--1.5% Burlington, KS Environmental Improvement RRB, K C Power & Light Co. Project, Series B, 3.60%(1)..................................................... 19,800,000 19,800,000 Manhattan, KS Industrial RRB, Parker Hannifin, Inc. Project, 3.65%(1).................. 6,000,000 6,000,000 Ottawa, KS IDV RB, Laich Industries Project, 3.75%(1).................................. 525,000 525,000 ---------------- 26,325,000 ---------------- KENTUCKY--2.7% Jamestown, KY Industrial Building RB, Union Underwear Co., 3.75%(1).................... 1,000,000 1,000,000 KY Asset/Liability Commission General Fund TAN & RAN, Series A, 4.25%, 6/28/00......... 30,000,000 30,255,000 Mayfield, KY Multi-City Lease RB, Kentucky League of Cities Funding Trust, 3.60%(1).... 15,200,000 15,200,000 ---------------- 46,455,000 ---------------- MARYLAND--1.0% Anne Arundel Cnty., MD ED RB, West Capitol, Series A, 3.65%(1)......................... 6,000,000 6,000,000 MD Department of Transportation RB, Prerefunded, Second Issue, 6.80%, 11/1/99(2)....... 3,155,000 3,256,962 MD Health & HEFAU RB, Mercy Medical Center, Prerefunded, 8%, 7/1/99(2)................. 6,500,000 6,630,000 MD Health & HEFAU RB, University of Maryland Pooled Loan Program, Series B, 3.20%(1)......................................................... 985,000 985,000 ---------------- 16,871,962 ---------------- MASSACHUSETTS--3.3% MA CMWLTH General Obligation Consolidation Loan, 3.25%, 1/15/00(2)..................... 15,245,000 15,245,000 MA GOB, 3.15%, 10/1/99(2).............................................................. 20,800,000 20,800,000 MA Health & Education FA RRB, Boston University, Series H, 3%, 8/25/99(2).............. 22,500,000 22,500,000 ---------------- 58,545,000 ---------------- MICHIGAN--0.7% Madison Heights, MI ED RB, Red Roof Inns Project, 3.40%(1)............................. 1,000,000 1,000,000 MI Hospital FAU RRB, Mount Clemens General Hospital, 3.40%(1).......................... 9,220,000 9,220,000 MI Job DAU RB, East Lansing Residence Associates Project, 3.50%(1)..................... 1,900,000 1,900,000 ---------------- 12,120,000 ----------------
6 8 STATEMENT OF INVESTMENTS June 30, 1999 (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ------------ ----------------- MINNESOTA--1.9% Blaine, MN IDV RRB, SuperValu Stores, Inc. Project, 3.70%(1)........................... $ 5,500,000 $ 5,500,000 Burnsville, MN CD RB, SuperValu Stores, Inc. Project, Series 83, 3.70%(1).............. 5,500,000 5,500,000 Maplewood, MN CD RRB, 5.27%(1)......................................................... 105,000 105,000 Minneapolis, MN CD RRB, Minnehaha/Lake Partners Project, 3.45%(1)...................... 2,750,000 2,750,000 New Ulm, MN Hospital Facilities RB, Health Center Systems, 3.75%(1).................... 2,200,000 2,200,000 North Suburban Hospital District, MN RB, Anoka & Ramsey Cntys. Hospital Health Center, 3.75%(1).................................................... 3,300,000 3,300,000 St. Paul, MN Housing & Redevelopment Authority RB, Science Museum of Minnesota, Series B, 3.75%(1)............................................. 3,200,000 3,200,000 St. Paul, MN POAU Tax Increment RB, Westgate Office & Industrial Center Project, 3.60%(1)............................................................ 10,300,000 10,300,000 ----------------- 32,855,000 ----------------- NEVADA--1.2% NV Municipal Securities Trust Receipts, Series SG 114, 3.77%(1)........................ 20,350,000 20,350,000 ----------------- NEW HAMPSHIRE--1.4% NH Business FAU PC RRB, Series 1990-A, 3.25%, 8/2/99(2)................................ 25,000,000 25,000,000 ----------------- NEW JERSEY--0.1% Passaic Valley, NJ Water Commission RB, Sub-System, Series A, 4%, 11/16/99............. 2,000,000 2,006,403 ----------------- NEW MEXICO--1.5% Albuquerque, NM Gross Receipts Tax RRB, MBIA Insured, 5%, 7/1/99....................... 2,445,000 2,445,000 Farmington, NM PC RB, 3.25%, 4/6/00(2)................................................. 24,000,000 24,000,000 ----------------- 26,445,000 ----------------- NEW YORK--12.8% Buffalo, NY RAN, Series A, 3.75%, 7/27/99.............................................. 500,000 500,263 Erie Cnty., NY RAN, 4%, 10/13/99....................................................... 7,800,000 7,821,573 Franklin Cnty., NY IDA RAN, McAdam Cheese Co. Project, 3.65%(1)........................ 600,000 600,000 L.I., NY PAU RB, 3.15%, 7/22/99(2)..................................................... 34,000,000 34,000,000 L.I., NY PAU RB, 3.15%, 8/23/99(2)..................................................... 10,000,000 10,000,000 NYC Health & Hospital Corp. RB, Series D, 3.30%(1)..................................... 1,500,000 1,500,000 NYC MTAU Dedicated Tax Fund RB, FGIC Insured, 4%, 4/1/00............................... 3,640,000 3,662,909 NYC Municipal Assistance Corp. RRB, Series G, 4.10%, 7/1/99............................ 10,000,000 10,000,000 NYC Trust Cultural Resource RRB, American Museum of Natural History, Series A, MBIA Insured, 3.10%(1)........................................... 1,000,000 1,000,000
7 9 STATEMENT OF INVESTMENTS June 30, 1999 (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ---------- ------------- NEW YORK (CONTINUED) NYS DA COP, Rockefeller University, 3.65%(1)........................................... $ 500,000 $ 500,012 NYS ERDAUPC RB, NYS Electric & Gas Corp., Series B, 3.20%, 10/15/99(2)................. 700,000 700,000 NYS ERDAUPC RB, NYS Electric & Gas Corp., Series D, 3%, 12/1/99(2)..................... 2,500,000 2,500,000 NYS HFA RB, Normandie Court I Project, 3.20%(1)........................................ 1,010,000 1,010,000 NYS HFA RB, Saxony Housing, Series A, 3.30%(1)......................................... 1,500,000 1,500,000 NYS LGAC RB, Series SG100, MBIA Insured, 3.77%, 10/1/99(2)............................. 10,420,000 10,420,000 NYS LGAC RB, Series SG99, MBIA Insured, 3.77%, 10/1/99(2).............................. 29,195,000 29,195,000 NYS MAG RB, Series PT217, 3.30%, 10/1/99(2)............................................ 3,200,000 3,200,000 NYS MCFFA RB, St. Luke's Hospital Center Mortgage., Prerefunded, Series B, 7.45%, 2/15/00............................................................ 1,000,000 1,048,427 NYS PAU RB, Series SG4, 3.77%(1)....................................................... 3,195,000 3,195,001 NYS TBTAU Beneficial Interest COP, MBIA Insured, 3.35%, 7/15/99(2)..................... 3,300,000 3,300,000 NYS TBTAU RB, Series SG-41, 2.95%, 11/10/99(2)......................................... 5,000,000 5,000,000 NYS UDC RB, Correctional Capital Facilities, Prerefunded, Series 1, FSA Insured, 7.50%, 1/1/00(2)....................................................... 1,000,000 1,041,454 NYS Urban Empire Development Corp. RB, Series A, 3.65%(1).............................. 10,255,000 10,255,000 PAUNYNJ SPO Bonds, Series SG94, 3.82%(1)............................................... 600,000 600,006 Suffolk Cnty., NY TAN, Series II, 3.50%, 8/12/99....................................... 48,000,000 48,027,102 Suffolk Cnty., NY TAN, Series II, 4%, 9/9/99........................................... 33,000,000 33,039,765 ------------- 223,616,512 ------------- OHIO--0.9% Gallia Cnty., OH IDV Mtg. RRB, Jackson Pike Assn., 3.20%, 12/15/99(2).................. 3,625,000 3,625,000 Marion Cnty., OH Hospital RB, Pooled Lease Program, 3.62%(1)........................... 5,985,000 5,985,000 Miami Valley, OH Tax-Exempt Mtg. Trust RB, Series 86, 4.88%, 10/15/99(2)............... 2,620,000 2,620,000 Scioto Cnty., OH HCF RB, Hill View Retirement Center, 3.25%, 12/1/99(2)................ 2,675,000 2,675,000 Warren Cnty., OH IDV RRB, Liquid Container Project, 3.65%(1)........................... 1,670,000 1,670,000 ------------- 16,575,000 ------------- OKLAHOMA--0.7% Cleveland Cnty., OK Public Facilities RB, Hunt Development Project, Series A, 3.40%(1).................................................................. 1,000,000 1,000,000 Creek Cnty., OK IDV RRB, Indiana Glass, 3.25%, 12/1/99(2).............................. 1,795,000 1,795,000 OK Industrial Authority RB, Casady School Project, 3.62%(1)............................ 6,405,000 6,405,000 Tulsa, OK IDAU RB, Indian Health Care Project, 3.62%(1)................................ 3,100,000 3,100,000 ------------- 12,300,000 -------------
8 10 STATEMENT OF INVESTMENTS June 30, 1999 (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ---------------- OREGON--0.8% Hillsboro, OR RB, Oregon Graduate Institute, 3.65%(1).................................. $ 6,100,000 $ 6,100,000 OR Economic & IDV Commission RB, Eagle-Picher Industries Project, 3.75%(1)............. 3,600,000 3,600,000 OR Housing & Community Services Department Mtg. RB, SFM Program, Series C, 3.15%, 4/13/00(2)................................................ 4,615,000 4,615,000 ---------------- 14,315,000 ---------------- PENNSYLVANIA--1.7% Butler Cnty., PA IDAU RRB, Lutheran Welfare, Series A, 2.95%, 11/1/99(2)............... 6,185,000 6,185,000 Monroe Cnty., PA HA RB, Pocono Medical Center, Series C, 3.65%(1)...................... 2,920,000 2,920,000 Montgomery Cnty., PA IDAU RB, Quaker Chemical Corp. Project, 3.35%(1).................. 1,600,000 1,600,000 PA HEFAU RB, Assn. Independent Colleges & Universities, Series C1, 4%, 11/1/99(2)...... 1,700,000 1,705,588 PA HEFAU RB, Assn. Independent Colleges & Universities, Series C2, 4%, 11/1/99(2)...... 4,500,000 4,514,792 PA HEFAU RB, Assn. Independent Colleges & Universities, Series C6, 4%, 11/1/99(2)...... 3,000,000 3,009,862 PA HEFAU RB, CICU Financing Program, Series B1, 2.95%, 11/1/99(2)...................... 2,900,000 2,900,000 PA HEFAU RB, CICU Financing Program, Series B4, 2.95%, 11/1/99(2)...................... 2,500,000 2,500,000 PA HEFAU RB, CICU Financing Program, Series B6, 2.95%, 11/1/99(2)...................... 2,000,000 2,000,000 PA HEFAU RB, CICU Financing Program, Series B8, 2.95%, 11/1/99(2)...................... 2,950,000 2,950,000 ---------------- 30,285,242 ---------------- SOUTH CAROLINA--0.8% SC Public Service Authority RB, Series 182, MBIA Insured, 3.69%(1)..................... 14,850,000 14,850,000 ---------------- SOUTH DAKOTA--1.9% Grant Cnty., SD PC RRB, Otter Tail Power Co. Project, 3.70%(1)......................... 10,400,000 10,400,000 SD Health & Educational Facilities RB, Sioux Valley Hospital Issue, 3.70%(1)........... 21,400,000 21,400,000 Yankton, SD IDV RB, Kolber-Pioneer, Inc. Project, 3.75%(1)............................. 2,000,000 2,000,000 ---------------- 33,800,000 ---------------- TENNESSEE--4.4% Clarksville, TN Public Building Authority RB, Pooled Financing- Tennessee Municipal Bond Fund, 3.80%(1)............................................. 9,500,000 9,500,000 Clarksville, TN Public Building Authority RB, Tennessee Municipal Bond Fund, 3.25%(1)................................................................. 41,000,000 41,000,000 Fayetteville & Lincoln, TN IDV Board RB, V.A.W. of America, 3.95%(1)................... 2,000,000 2,000,000 Knox Cnty., TN IDV Board RB, Weisgarber Partners, FGIC Insured, 3.40%(1)............... 3,000,000 3,000,000
9 11 STATEMENT OF INVESTMENTS June 30, 1999 (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- ---------------- TENNESSEE (CONTINUED) Montgomery Cnty., TN Public Building Authority RB, Tennessee County Loan, 3.80%(1)............................................................... $17,000,000 $ 17,000,000 Sevier Cnty., TN Public Building Authority RB, Local Government Public Improvements-III-D-6, AMBAC Insured, 3.65%(1)................................ 5,000,000 5,000,000 ---------------- 77,500,000 ---------------- TEXAS--13.2% Austin, TX RRB, Prerefunded, Series B, 7%, 9/1/99(2)................................... 1,000,000 1,006,039 Dallas, TX Waterworks & Sewer ABN AMRO Munitops Certificates, Series 1998-19, 3.20%(1)............................................................ 8,000,000 8,000,000 De Soto, TX IDAU RRB, National Service Industries, Inc. Project, 3.65%(1).............. 7,150,000 7,150,000 Greater East TX HEAU RRB, Student Loans, Series A, 3.15%, 5/1/00(2).................... 9,000,000 9,000,000 Harris Cnty., TX Criminal Justice Center RB, Series SG96, FGIC Insured, 3.77%(1)....... 7,475,000 7,475,000 Harris Cnty., TX Toll Road COP, 3.40%(1)............................................... 9,900,000 9,900,000 Hockley Cnty., TX IDV Corp. PC RB, Amoco/Standard Oil Co. Project, 2.90%, 9/1/99(2).................................................................... 28,750,000 28,750,000 Houston, TX WSS RB, Series SG120, 3.77%(1)............................................. 37,600,000 37,600,000 San Antonio, TX Electric & Gas RRB, Series G-101, 3.77%(1)............................. 20,000,000 20,000,000 San Antonio, TX Electric & Gas RRB, Series SG105, 3.47%(1)............................. 20,000,000 20,000,000 TX Gulf Coast Waste Disposal Authority Environmental Improvement RB, Amoco Oil Co. Project, 2.90%, 9/1/99(2)......................................... 7,000,000 7,000,000 TX Gulf Coast Waste Disposal Authority RRB, Armco, Inc. Project, 3.65%(1).............. 6,000,000 6,000,000 TX TAN & RAN, 4.50%, 8/31/99........................................................... 48,000,000 48,115,357 TX TUAU RB, Dallas Northtollway, Series SG70, 3.77%(1)................................. 15,325,000 15,325,000 Yoakum Cnty., TX IDV PC RB, Amoco Project, 3.15%, 11/1/99(2)........................... 5,265,000 5,265,000 ---------------- 230,586,396 ---------------- UTAH--3.9% UT HFA MH RRB, Candlestick Apts. Project, 3.60%(1)..................................... 6,400,000 6,400,000 UT Intermountain Power Agency RRB, Series E, AMBAC Insured, 3.125%, 9/15/99(2)......... 24,000,000 24,000,000 UT Intermountain Power Agency RRB, Series F, AMBAC Insured, 3.10%, 9/15/99(2).......... 37,700,000 37,700,000 ---------------- 68,100,000 ---------------- VIRGINIA--0.2% Henry Cnty., VA IDAU RB, Amfibe, Inc. Project, 3.90%(1)................................ 2,900,000 2,900,000 ----------------
10 12 STATEMENT OF INVESTMENTS June 30, 1999 (Continued) Centennial Tax Exempt Trust
Face Value Amount See Note 1 ----------- -------------- WASHINGTON--2.4% Port Longview, WA IDV RB, Longview Fibre Co. Project, 3.75%(1)......................... $ 5,000,000 $ 5,000,000 Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 1, 3.80%(1)............. 910,000 910,000 Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 2, 3.80%(1)............. 1,620,000 1,620,000 Seattle, WA IDV Corp. RB, 3.70%(1)..................................................... 4,050,000 4,050,000 WA GORB, Series 1995C, 3.69%(1)........................................................ 13,710,000 13,710,000 WA GORB, Series 1995C, AT-8 & R-95B, 5.50%, 7/1/99..................................... 2,000,000 2,000,000 WA GORB, Series R-94A, 4.40%, 8/1/99................................................... 10,000,000 10,007,838 WA PP Supply System RRB, Nuclear Project No. 1, Prerefunded, Series A, 7.50%, 7/1/99(2).......................................................... 4,650,000 4,743,000 -------------- 42,040,838 -------------- WISCONSIN--0.3% WI Transportation RB, Prerefunded, Series A, 6.25%, 7/1/99(2).......................... 5,000,000 5,100,000 --------------- DISTRICT OF COLUMBIA--0.6% DC HFA MH RB, Tyler House Trust Certificates Partnership A, 3.717%(1).................. 10,800,000 10,800,000 -------------- U.S. POSSESSIONS--2.3% Greystone Tax Exempt Certificates RB, Trust 1998-1, Sr. Certificate Beneficial Ownership, 3.78%(1)...................................................... 30,800,000 30,800,000 PR CMWLTH TAN & RAN, 3.50%, 7/30/99.................................................... 9,500,000 9,504,841 -------------- 40,304,841 -------------- Total Investments, at Value............................................................ 108.1% 1,891,903,328 -------------- Liabilities in Excess of Other Assets.................................................. (8.1) (142,422,073) ------------ -------------- Net Assets............................................................................. 100.0% $1,749,481,255 =========== ==============
11 13 STATEMENT OF INVESTMENTS June 30, 1999 (Continued) Centennial Tax Exempt Trust To simplify the listings of securities, abbreviations are used per the table below: BOE--Board of Education IDV--Industrial Development CD--Commercial Development LGAC--Local Government Assistance Corp. CDAU--Communities Development Authority MAG--Mtg. Agency CDC--Community Development Corp. MCFFA--Medical Care Facilities Finance Agency CMWLTH--Commonwealth MH--Multifamily Housing COP--Certificates of Participation MPA--Municipal Power Agency DA--Dormitory Authority MTAU--Metropolitan Transportation Authority DAU--Development Authority NYC--New York City ED--Economic Development NYS--New York State EDAU--Economic Development Authority PAU--Power Authority ERDAUPC--Energy Research & Development Authority PAUNYNJ--Port Authority of New York & New Jersey Pollution Control PC--Pollution Control FA--Facilities Authority POAU--Port Authority FAU--Finance Authority PP--Public Power GOB--General Obligation Bonds RA--Redevelopment Agency GORB--General Obligation Refunding Bonds RAN--Revenue Anticipation Nts. HA--Hospital Authority RB--Revenue Bonds HAU--Housing Authority RRB--Revenue Refunding Bonds HCF--Health Care Facilities SDI--School District HEAU--Higher Education Authority SFM--Single Family Mtg. HEFAU--Higher Educational Facilities Authority SPO--Special Obligations HFA--Housing Finance Agency SWD--Solid Waste Disposal HFAU--Health Facilities Authority TAN--Tax Anticipation Nts. HFFAU--Health Facilities Finance Authority TBTAU--Triborough Bridge & Tunnel Authority IDA--Industrial Development Agency TUAU--Turnpike Authority IDAU--Industrial Development Authority WSS--Water Sewer System
1. Floating or variable rate obligation maturity 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, 1999. 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 $22,162,000 or 1.27% of the Trust's net assets as of June 30, 1999. See accompanying Notes to Financial Statements. 12 14 STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 Centennial Tax Exempt Trust ASSETS Investments, at value--see accompanying statement .................................................... $1,891,903,328 Receivables and other assets: Shares of beneficial interest sold.................................................................. 17,240,098 Interest ........................................................................................... 17,122,132 Investments sold ................................................................................... 7,143,021 Other .............................................................................................. 116,445 -------------- Total assets...................................................................................... 1,933,525,024 -------------- LIABILITIES Bank overdraft ....................................................................................... 5,010,342 Payables and other liabilities: Investments purchased............................................................................... 141,147,608 Shares of beneficial interest redeemed ............................................................. 35,849,075 Dividends........................................................................................... 1,651,504 Service plan fees .................................................................................. 178,779 Transfer and shareholder servicing agent fees....................................................... 89,937 Shareholder reports ................................................................................ 78,444 Other .............................................................................................. 38,080 -------------- Total liabilities................................................................................. 184,043,769 -------------- NET ASSETS .......................................................................................... $1,749,481,255 ============== COMPOSITION OF NET ASSETS Paid-in capital....................................................................................... $1,749,961,465 Accumulated net realized loss on investment transactions ............................................. (480,210) -------------- NET ASSETS--applicable to 1,749,977,433 shares of beneficial interest outstanding .................................................................. $1,749,481,255 ============== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE ....................................... $1.00
See accompanying Notes to Financial Statements. 13 15 STATEMENT OF OPERATIONS For the Year Ended June 30, 1999 Centennial Tax Exempt Trust INVESTMENT INCOME--Interest ............................................................................ $61,856,853 ----------- EXPENSES Management fees--Note 3 ................................................................................ 7,950,188 Service plan fees--Note 3 .............................................................................. 3,773,272 Transfer and shareholder servicing agent fees--Note 3 .................................................. 817,705 Custodian fees and expenses ............................................................................ 237,108 Shareholder reports .................................................................................... 131,295 Registration and filing fees ........................................................................... 112,318 Legal, auditing and other professional fees ............................................................ 41,810 Trustees' compensation ................................................................................. 21,655 Other .................................................................................................. 22,770 ----------- Total expenses ....................................................................................... 13,108,121 Less expenses paid indirectly--Note 1............................................................... (136,809) ----------- Net expenses ......................................................................................... 12,971,312 ----------- NET INVESTMENT INCOME .................................................................................. 48,885,541 ----------- NET REALIZED GAIN ON INVESTMENTS ....................................................................... 102,645 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................................... $48,988,186 ===========
- -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS
Year Ended June 30, ------------------------------------------ 1999 1998 ------------------ ---------------- OPERATIONS Net investment income ................................................... $ 48,885,541 $ 56,209,459 Net realized gain (loss) ................................................ 102,645 (569,188) -------------- -------------- Net increase in net assets resulting from operations ..................... 48,988,186 55,640,271 -------------- -------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS .............................. (48,885,541) (56,328,253) -------------- -------------- BENEFICIAL INTEREST TRANSACTIONS Net increase (decrease) in net assets resulting from beneficial interest transactions--Note 2 .............................. (79,607,151) 180,927,614 -------------- -------------- NET ASSETS Total increase (decrease) ................................................ (79,504,506) 180,239,632 Beginning of period ...................................................... 1,828,985,761 1,648,746,129 -------------- -------------- End of period ............................................................ $1,749,481,255 $1,828,985,761 ============== ==============
See accompanying Notes to Financial Statements. 14 16 FINANCIAL HIGHLIGHTS Centennial Tax Exempt Trust
Year Ended June 30, --------------------------------------------------- 1999 1998 1997 1996 1995 ------ ------ ------ ------ ------ PER SHARE OPERATING DATA Net asset value, beginning of period ........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from investment operations-- net investment income and net realized gain ................................................ .03 .03 .03 .03 .03 Dividends and distributions to shareholders ..................... (.03) (.03) (.03) (.03) (.03) ------ ------ ------ ------ ------ Net asset value, end of period ................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ====== ====== ====== ====== ====== TOTAL RETURN(1) ................................................ 2.61% 3.12% 3.01% 3.16% 3.17% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in millions) ........................ $1,749 $1,829 $1,649 $1,426 $1,315 Average net assets (in millions)................................. $1,896 $1,832 $1,591 $1,473 $1,217 Ratios to average net assets:(2) Net investment income .......................................... 2.58% 3.07% 2.95% 3.12% 3.13% Expenses(3)...................................................... 0.69% 0.69% 0.72% 0.72% 0.73%
1. Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns reflect changes in net investment income only. Total returns are not annualized for periods of less than one full year. 2. Annualized for periods less than one full year. 3. The expense ratio reflects the effect of expenses paid indirectly by the Trust. See accompanying Notes to Financial Statements. 15 17 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 maximum short-term interest income exempt from federal income taxes that is consistent with low capital risk and the maintenance of liquidity. The Trust's investment advisor is Centennial Asset Management Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). The following is a summary of significant accounting policies consistently followed by the Trust. Securities Valuation. Portfolio securities are valued on the basis of amortized cost, which approximates market value. Federal Taxes. The Trust intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. Therefore, no federal income or excise tax provision is required. As of June 30, 1999, the Trust had available for federal income tax purposes an unused capital loss carryover of approximately $467,000, which expires between 2006 and 2007. Distributions to Shareholders. Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. Expense Offset Arrangements. Expenses paid indirectly represent a reduction of custodian fees for earnings on cash balances maintained by the Trust. Other. Investment transactions are accounted for as of trade date. Realized gains and losses on investments are determined on an identified cost basis, which is the same basis used for federal income tax purposes. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 16 18 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, 1999 Year Ended June 30, 1998 --------------------------------- -------------------------------- Shares Amount Shares Amount -------------- ---------------- ------------- --------------- Sold ........................ 5,631,707,953 $ 5,631,707,953 5,609,068,596 $ 5,609,068,596 Dividends and distributions reinvested ................ 48,085,400 48,085,400 55,170,917 55,170,917 Redeemed..................... (5,759,400,504) (5,759,400,504) (5,483,311,899) (5,483,311,899) -------------- --------------- -------------- --------------- Net increase (decrease).... (79,607,151) $ (79,607,151) 180,927,614 $ 180,927,614 ============== =============== ============== ===============
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. Furthermore, under the Trust's Agreement, when the value of the Trust's net assets is less than $1.5 billion, the annual fee payable to the Manager shall be reduced by $100,000 based on average net assets computed daily and paid monthly at the annual rates, but in no event shall the annual fee be less than $0. The Trust's management fee for the year ended June 30, 1999 was 0.42% of average annual net assets. 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. 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, 1999, the Trust paid $16,878 to a broker/dealer affiliated with the Manager as reimbursement for distribution-related expenses. 17 19 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, 1999, the related statement of operations for the year then ended, the statements of changes in net assets for the years ended June 30, 1999 and 1998, and the financial highlights for the period July 1, 1994 to June 30, 1999. 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 as of June 30, 1999, 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 as of June 30, 1999, 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, 1999 18 20 FEDERAL INCOME TAX INFORMATION (Unaudited) Centennial Tax Exempt Trust In early 2000, shareholders will receive information regarding all dividends and distributions paid to them by the Trust during calendar year 1999. 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, 1999 are eligible for the corporate dividend-received deduction. The dividends were derived from interest on municipal bonds and are not subject to federal income tax. To the extent a shareholder is subject to any state or local tax laws, some or all of the dividends received may be taxable. The foregoing information is presented to assist shareholders in reporting distributions received from the Trust to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. 19 21 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 George C. Bowen, Trustee Jon S. Fossel, Trustee Sam Freedman, Trustee Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Ned M. Steel, Trustee Michael J. Carbuto, Vice President Andrew J. Donohue, Vice President and Secretary Brian W. Wixted, Vice President and Treasurer Robert G. Zack, Assistant Secretary Robert J. Bishop, Assistant Treasurer Scott T. Farrar, Assistant Treasurer Investment Advisor and Distributor Centennial Asset Management Corporation Transfer and Shareholder Servicing Agent Shareholder Services, Inc. Custodian of Portfolio Securities Citibank, N.A. Independent Auditors Deloitte & Touche LLP Legal Counsel Myer, Swanson, Adams & Wolf, P.C. This is a copy of a report to shareholders of Centennial Tax Exempt Trust. This report must be preceded or accompanied by a Prospectus of Centennial Tax Exempt Trust. For material information concerning the Trust, see the Prospectus. For shareholder servicing, call: 1-800-525-9310 (in U.S.) 303-671-3200 (outside U.S.) Or write: Shareholder Services, Inc. P.O. Box 5143 Denver, CO 80217-5143 RA0160.001.0699 [PRINTED ON RECYCLED PAPER LOGO] -----END PRIVACY-ENHANCED MESSAGE-----