-----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, IWVoy5myAA681hL6AZhyuOQBFZGXBpmAfRJKr7c0X9wwNbxzS3xiVvK/KMMVZB6E PzUun1w2WM5Nstm9myi9xg== 0000854437-96-000006.txt : 19960906 0000854437-96-000006.hdr.sgml : 19960906 ACCESSION NUMBER: 0000854437-96-000006 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960905 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTENNIAL CALIFORNIA TAX EXEMPT TRUST CENTRAL INDEX KEY: 0000854437 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 841121370 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05871 FILM NUMBER: 96626258 BUSINESS ADDRESS: STREET 1: 3410 SOUTH GALENA ST CITY: DENVER STATE: CO ZIP: 80231 BUSINESS PHONE: 3036713200 MAIL ADDRESS: STREET 1: 3410 S GALENA STREET STREET 2: 3410 S GALENA STREET CITY: DENVER STATE: CO ZIP: 80231 N-30D 1 CENTENNIAL CALIFORNIA TAX EXEMPT TRUST - A/R [COVER PAGE] 1996 Annual Report CENTENNIAL CALIFORNIA TAX EXEMPT TRUST - -------------------------------------------------------------------------------- JUNE 30, 1996 RA0180.001.0696 Dear Shareholder: The twelve months ended June 30, 1996 have been defined by changing beliefs about the direction of the economy which, in turn, has had both positive and negative effects on the securities markets. Toward the end of 1995, most investors expected that the economy would continue to show signs of slowing. In fact, many were convinced that the economy was moving toward recession. Given the prevailing sentiment, it wasn't a surprise when the Federal Reserve lowered interest rates in an effort to prolong the economic expansion. The goal: a slow but steady and sustainable rate of economic growth that would diminish the possibility of recession. The impact of lower interest rates on the stock and all sectors of the bond market was profound. The Dow Jones Industrial Average reached an all time high, while most sectors of the bond market, including municipal bonds, chalked up double digit returns. But in mid-February, the federal government issued a report on job growth that radically altered investor perceptions. Suddenly, investors believed that the economy was heating up and inflation was around the corner. In the weeks that followed, the bond market sold off sharply, as long-term interest rates spiked upward, with the benchmark 30-year Treasury yield moving above seven percent. Since municipal bonds tend to track U.S. Treasury bonds, yields on municipals rose as well. As a result, the bond market, including municipal bonds, weakened between February and June. Though this market environment has created some concerns for most long-term municipal bond investors, rising interest rates are good for investors in short-term municipal securities. Because the portfolio is structured to capture the maximum amount of interest income exempt from federal income taxes and California state income tax, the Trust continues to invest primarily in short-term securities -- especially during the current rising rate market. Although shorter-term securities require us to reinvest the proceeds we receive upon maturity more often, in a rising rate environment that means moving into securities issued at higher rates. The Centennial California Tax Exempt Trust had a compounded annualized yield of 2.99% for the twelve months ended June 30, 1996. The corresponding yield without compounding was 2.95%. For California residents in the maximum combined federal and California tax bracket (46.24%), this is equivalent to a taxable yield of 5.56% with compounding and 5.49% without. Its seven-day yields with and without compounding for the period ended June 30, 1996 were 2.70% and 2.67%, respectively.(1) As we move through 1996, the strength of the economy continues to be an uncertainty. However, with higher gasoline and agricultural prices there could be some upward pressure on inflation over the next several months. As such, we continue to look for opportunities to add to the portfolio's yield, while keeping the Trust's average maturity shorter, remaining alert to the possibility that interest rates may move slightly higher or lower in the coming months. We are pleased to be able to maintain a competitive yield, as well as share price stability, in light of the dramatic changes that have taken place during the last twelve months. Thank you for your confidence in Centennial California Tax Exempt Trust. We look forward to helping you reach your financial goals in the future. Sincerely, /S/James C. Swain James C. Swain Chairman--Centennial California Tax Exempt Trust /S/Bridget A. Macaskill President--Centennial California Tax Exempt Trust July 22, 1996 An investment in the Trust is neither insured nor guaranteed by the U.S. Government and there can be no assurance that the Trust will be able to maintain a stable net asset value of $1.00 per share. 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.
===================================================================== STATEMENT OF INVESTMENTS June 30, 1996 Centennial California Tax Exempt Trust FACE VALUE AMOUNT SEE NOTE 1 ====================================================================================================================== SHORT-TERM TAX-EXEMPT OBLIGATIONS - 97.0% - ---------------------------------------------------------------------------------------------------------------------- CALIFORNIA - 97.0% ----------------------------------------------------------------------------------------------------------- Anaheim, California Housing Authority Multifamily Housing Revenue Refunding Bonds, Park Vista Apts., Series A, 3.20%(1) $1,000,000 $ 1,000,000 ----------------------------------------------------------------------------------------------------------- Antioch, California Certificates of Participation, Antioch Development Agency Water Treatment Project, Prerefunded, MBIA Insured, 7.875%, 7/1/96 4,735,000 4,877,050 ----------------------------------------------------------------------------------------------------------- Brea, California Redevelopment Agency Sub-Tax Allocation Bonds, Redevelopment Project-Area AB, Prerefunded: 8.40%, 9/15/96 5,675,000 5,871,423 8.50%, 9/15/96 1,300,000 1,345,278 ----------------------------------------------------------------------------------------------------------- California Economic Development Financing Authority Industrial Development Revenue Bonds, Inland Empire Venture, LLC Project, 3.45%(1) 2,000,000 2,000,000 ----------------------------------------------------------------------------------------------------------- California Health Facilities Financing Authority Revenue: Bonds, Catholic Healthcare Project, Series C, 3%(1) 5,200,000 5,200,000 Bonds, Catholic Healthcare Project, Series C, 3%(1) 2,300,000 2,300,000 Bonds, Huntington Memorial Hospital, 3.15%(1) 700,000 700,000 Bonds, Santa Barbara Cottage Project, Series C, 3%(1) 1,600,000 1,600,000 Refunding Bonds, Memorial Health Services Project, 3%(1) 1,300,000 1,300,000 ----------------------------------------------------------------------------------------------------------- California Housing Finance Agency Home Mtg. Revenue Bonds, Series 1995-E, FGIC Insured, 3.50%, 2/1/97(2) 5,000,000 5,000,000 ----------------------------------------------------------------------------------------------------------- California Pollution Control Financing Authority: Revenue Bonds, 3.55%, 10/1/96(2) 4,400,000 4,400,000 Revenue Bonds, Chevron USA, Inc. Project, 3.70%, 5/15/97(2) 2,500,000 2,500,000 Revenue Bonds, Pacific Gas & Electric Co. Project, Series E, 3.40%, 7/15/96(2) 6,000,000 6,000,000 Revenue Bonds, Southern California Edison Co. Project, Series A, 3.50%, 7/23/96(2) 1,200,000 1,200,000 Revenue Bonds, Southern California Edison Project, Series C, 3.30%, 8/7/96(2) 1,050,000 1,050,000 Solid Waste Disposal Revenue Bonds, Western Waste Industries, Series A, 3.10%(1) 3,100,000 3,100,000 ----------------------------------------------------------------------------------------------------------- California State General Obligation Bonds: 3.55%, 8/29/96(2) 2,000,000 2,000,000 Series A-3, MBIA Insured, 3.60%(1) 3,000,000 3,000,000 ----------------------------------------------------------------------------------------------------------- California Statewide Communities Development Corp. Industrial Development Revenue Bonds: Andercraft Project, Series A, 3.25%(1) 500,000 500,000 Propak California Corp., Series B, 3.25%(1) 900,000 900,000 ----------------------------------------------------------------------------------------------------------- Costa Mesa, California Certificates of Participation, Orange County Performing Arts Center, 3.30%(1) 2,770,000 2,770,000
4
===================================================================== STATEMENT OF INVESTMENTS (Continued) Centennial California Tax Exempt Trust FACE VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------- CALIFORNIA (CONTINUED) ----------------------------------------------------------------------------------------------------------- Covina, California Redevelopment Agency Multifamily Housing Revenue Refunding Bonds, Shadowhills Apts., Inc., Series A, 3.70%(1) $3,000,000 $ 3,000,000 ----------------------------------------------------------------------------------------------------------- Fairfield, California Industrial Development Authority Revenue Bonds, Herman G. Rowland, 3.40%(1) 1,250,000 1,250,000 ----------------------------------------------------------------------------------------------------------- Huntington Park, California Redevelopment Agency Multifamily Housing Revenue Bonds, Casa Rita Apts., Series A, 3.45%(1) 1,500,000 1,500,000 ----------------------------------------------------------------------------------------------------------- Metropolitan Water District of Southern California Waterworks Revenue Refunding Bonds, Series A, AMBAC Insured, 2.95%(1) 5,500,000 5,500,000 ----------------------------------------------------------------------------------------------------------- Northern California Power Agency Public Power Revenue Refunding Bonds, Geothermal Project 3-A, 3.15%(1) 5,700,000 5,700,000 ----------------------------------------------------------------------------------------------------------- Oceanside, California Multifamily Revenue Refunding Bonds, Lakeridge Apts. Project, 3.50%(1) 5,000,000 5,000,000 ----------------------------------------------------------------------------------------------------------- Ontario, California Multifamily Residential Mtg. Revenue Bonds, Park Centre Project, Series A, 2.90%(1) 2,400,000 2,400,000 ----------------------------------------------------------------------------------------------------------- Palm Springs, California Community Redevelopment Agency Certificates of Participation, Headquarters Hotel, Series 7, 3.30%(1) 400,000 400,000 ----------------------------------------------------------------------------------------------------------- Rancho Mirage, California Redevelopment Agency Certificates of Participation, 3.25%(1) 5,000,000 5,000,000 ----------------------------------------------------------------------------------------------------------- Riverside County, California Housing Authority Multifamily Housing Revenue Bonds, McKinley Project, 3.35%(1) 3,500,000 3,500,000 ----------------------------------------------------------------------------------------------------------- Sacramento, California Municipal Utility District Tax- Exempt Commercial Paper, 3.50%, 10/1/96(2) 5,500,000 5,500,000 ----------------------------------------------------------------------------------------------------------- San Bernardino County, California Housing Authority Multifamily Housing Revenue Refunding Bonds: Arrowview Park Apts. Project, Series A, 3.25%(1) 2,380,000 2,380,000 Monterey Villas Apts. Project, Series A, 3.40%(1) 2,125,000 2,125,000 ----------------------------------------------------------------------------------------------------------- San Diego County, California Industrial Development Revenue Refunding Bonds, San Diego Gas & Electric Co. Project, 3.50%, 9/9/96(2) 1,500,000 1,500,000 ----------------------------------------------------------------------------------------------------------- San Diego, California Multifamily Housing Revenue Refunding Bonds, Coral Point Apts. Project, Series A, 3.40%(1) 2,500,000 2,500,000 ----------------------------------------------------------------------------------------------------------- San Marcos, California Redevelopment Agency Multifamily Housing Bonds, San Marcos Retirement Village Project, 3.96%(1) 2,500,000 2,500,000 ----------------------------------------------------------------------------------------------------------- Southern California Public Power Authority Revenue Refunding Bonds, Palo Verde Project, Series B, AMBAC Insured, 3.10%(1) 1,100,000 1,100,000 ----------------------------------------------------------------------------------------------------------- Visalia, California Industrial Development Revenue Bonds, Akers West Assn., 3.30%(1) 1,150,000 1,150,000
5
===================================================================== STATEMENT OF INVESTMENTS (Continued) Centennial California Tax Exempt Trust FACE VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------- CALIFORNIA (CONTINUED) ----------------------------------------------------------------------------------------------------------- West & Central Basin California Finance Authority Tax & Revenue Anticipation Nts., 3.55%, 8/22/96(2) $2,500,000 $ 2,500,000 ----------------------------------------------------------------------------------------------------------- West Covina, California Redevelopment Agency Certificates of Participation, Barranca Project, 3%(1) 2,200,000 2,200,000 ----------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE 97.0% 115,318,751 ----------------------------------------------------------------------------------------------------------- OTHER ASSETS NET OF LIABILITIES 3.0 3,519,411 ----------- ------------- NET ASSETS 100.0% $118,838,162 =========== =============
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, 1996. 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. 6
====================================================== STATEMENT OF ASSETS AND LIABILITIES June 30, 1996 Centennial California Tax Exempt Trust ==================================================================================================================== ASSETS Investments, at value - see accompanying statement $115,318,751 ------------------------------------------------------------------------------------------ Cash 220,987 ------------------------------------------------------------------------------------------ Receivables: Shares of beneficial interest sold 7,471,206 Interest 860,137 ------------------------------------------------------------------------------------------ Other 6,927 ------------- Total assets 123,878,008 ==================================================================================================================== LIABILITIES Payables and other liabilities: Shares of beneficial interest redeemed 4,857,325 Dividends 84,721 Service plan fees 57,600 Transfer and shareholder servicing agent fees 2,094 Other 38,106 ------------- Total liabilities 5,039,846 ==================================================================================================================== NET ASSETS $118,838,162 ============= ==================================================================================================================== COMPOSITION OF Paid-in capital $118,836,535 NET ASSETS ------------------------------------------------------------------------------------------ Accumulated net realized gain on investment transactions 1,627 ------------------------------------------------------------------------------------------ Net assets - applicable to 118,836,535 shares of beneficial interest outstanding $118,838,162 ============= ==================================================================================================================== NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $1.00 ======
See accompanying Notes to Financial Statements. 7
======================================================== STATEMENT OF OPERATIONS For the Year Ended June 30, 1996 Centennial California Tax Exempt Trust ==================================================================================================================== INVESTMENT INCOME Interest $ 4,203,370 ==================================================================================================================== EXPENSES Management fees - Note 3 565,052 ------------------------------------------------------------------------------------------ Service plan fees - Note 3 221,344 ------------------------------------------------------------------------------------------ Transfer and shareholder servicing agent fees - Note 3 41,752 ------------------------------------------------------------------------------------------ Shareholder reports 24,347 ------------------------------------------------------------------------------------------ Registration and filing fees 19,916 ------------------------------------------------------------------------------------------ Custodian fees and expenses 15,873 ------------------------------------------------------------------------------------------ Legal and auditing fees 10,989 ------------------------------------------------------------------------------------------ Insurance expenses 3,571 ------------------------------------------------------------------------------------------ Trustees' fees and expenses 1,882 ------------------------------------------------------------------------------------------ Other 502 ------------- Total expenses 905,228 ------------- Less assumption of expenses by Centennial Asset Management Corp. - Note 3 (16,016) ------------- Net expenses 889,212 ==================================================================================================================== NET INVESTMENT INCOME 3,314,158 ==================================================================================================================== NET REALIZED GAIN ON INVESTMENTS 13,191 ==================================================================================================================== NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 3,327,349 =============
=================================== STATEMENTS OF CHANGES IN NET ASSETS YEAR ENDED JUNE 30, 1996 1995 ==================================================================================================================== OPERATIONS Net investment income $ 3,314,158 $ 2,133,906 ------------------------------------------------------------------------------------------ Net realized gain (loss) 13,191 (11,564) ---------------------------------- Net increase in net assets resulting from operations 3,327,349 2,122,342 ==================================================================================================================== DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (3,314,158) (2,133,965) ==================================================================================================================== BENEFICIAL INTEREST Net increase in net assets resulting from TRANSACTIONS beneficial interest transactions - Note 2 26,507,136 31,953,795 ==================================================================================================================== NET ASSETS Total increase 26,520,327 31,942,172 ------------------------------------------------------------------------------------------ Beginning of period 92,317,835 60,375,663 ---------------------------------- End of period $118,838,162 $ 92,317,835 ==================================
See accompanying Notes to Financial Statements. 8
================================================================================ FINANCIAL HIGHLIGHTS Centennial California Tax Exempt Trust Year Ended June 30, 1996 1995 1994 1993 1992 ========================================================================================================================== 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 on investments .03 .03 .02 .02 .03 Dividends and distributions to shareholders (.03) (.03) (.02) (.02) (.03) - -------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 ====================================================================== ========================================================================================================================== TOTAL RETURN, AT NET ASSET VALUE(1) 2.97% 3.00% 1.82% 2.00% 3.29% ========================================================================================================================== RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $118,838 $92,318 $60,376 $58,079 $48,483 - -------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $112,911 $71,278 $65,520 $56,082 $40,684 - -------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: Net investment income 2.94% 2.99% 1.79% 1.90% 3.13% Expenses, before voluntary assumption by the Manager 0.80% 0.83% 0.87% 0.86% 0.91% Expenses, net of voluntary assumption by the Manager 0.79% 0.80% 0.80% 0.80% 0.80%
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. See accompanying Notes to Financial Statements. 9 NOTES TO FINANCIAL STATEMENTS Centennial California Tax Exempt Trust 1. SIGNIFICANT ACCOUNTING POLICIES Centennial California Tax Exempt Trust (the Trust) is registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management investment company. The Trust's investment objective is to seek the maximum current interest income exempt from Federal and California personal income taxes for individual investors as is consistent with preservation of capital. 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. 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 Trust concentrates its investments in California and, therefore, may have more credit risks related to the economic conditions of California than a portfolio with a broader geographical diversification. 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. 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, 1996 YEAR ENDED JUNE 30, 1995 ------------------------ ------------------------ SHARES Amount Shares Amount Sold 397,706,144 $397,706,144 279,468,671 $279,468,671 Dividends and distributions reinvested 3,281,812 3,281,812 2,013,397 2,013,397 Redeemed (374,480,820) (374,480,820) (249,528,273) (249,528,273) ------------- ------------- ------------- ------------- Net increase 26,507,136 $ 26,507,136 31,953,795 $ 31,953,795 ============= ============= ============= =============
10 NOTES TO FINANCIAL STATEMENTS (Continued) Centennial California Tax Exempt Trust 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% on the first $250 million of average annual net assets with a reduction of 0.025% on each $250 million thereafter, to 0.40% on net assets in excess of $1 billion. The Manager has agreed to assume Trust expenses (with specified exceptions) in excess of the regulatory limitation of the State of California. In addition, the Manager has voluntarily undertaken to assume Trust expenses in excess of 0.80% 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 plan of distribution, the Trust may expend up to 0.20% of its net assets annually to reimburse Centennial Asset Management Corporation, 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. 11 INDEPENDENT AUDITORS' REPORT Centennial California Tax Exempt Trust The Board of Trustees and Shareholders of Centennial California Tax Exempt Trust: We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Centennial California Tax Exempt Trust as of June 30, 1996, the related statement of operations for the year then ended, the statements of changes in net assets for the years ended June 30, 1996 and 1995, and the financial highlights for the period July 1, 1991 to June 30, 1996. 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, 1996 by correspondence with the custodian. 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 California Tax Exempt Trust at June 30, 1996, 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, 1996 12 FEDERAL INCOME TAX INFORMATION (Unaudited) Centennial California Tax Exempt Trust In early 1997, shareholders will receive information regarding all dividends and distributions paid to them by the Trust during calendar year 1996. 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, 1996 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. 13 CENTENNIAL CALIFORNIA 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 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 California Tax Exempt Trust. This report must be preceded or accompanied by a Prospectus of Centennial California 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 14 -----END PRIVACY-ENHANCED MESSAGE-----