-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, TVZKWwzAWiEAVvURufb35RBUsMwZNixU1pfEraQw6uP2r9IGOQQaU4XvDCMsG91m yLgDGna80EYqRXoV8mK9Ng== 0000950117-95-000014.txt : 19950223 0000950117-95-000014.hdr.sgml : 19950223 ACCESSION NUMBER: 0000950117-95-000014 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950222 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: 95514114 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 S.A.R. Dear Shareholder: It is a pleasure to report that Centennial California Tax Exempt Trust once again met its objectives well for the year ended December 31, 1994, providing a highly attractive yield exempt from federal and California income taxes while maintaining principal stability.1 The Trust's compounded annualized yield for the 6 months ended December 31, 1994 was 2.53%. The corresponding yield without compounding was 2.50%. For investors in the 41.95% combined federal and state tax bracket, this is equal to a taxable yield of 4.36% with compounding and 4.31% without compounding.2 Over the last 12 months, short-term interest rates rose dramatically, on the heels of one of the most aggressive efforts to preempt possible inflation in the Federal Reserve's 81-year history. Your managers took several steps to capitalize on this rising rate environment-- steps reflected in the Trust's seven-day compounded annualized yield, which increased from 2.03% at the beginning of the year to 4.46% at December 31. Throughout the year, your managers steadily shortened the Trust's average maturity, reducing it from 68 days on January 1 to 33 days on December 31. With this shorter average maturity, your managers were able to take advantage of attractive opportunities brought to market. Looking ahead, the outlook for the Trust is positive. The Fed is likely to raise short-term interest rates again, and with the adjustments your managers have made over the past several months, Centennial California Tax Exempt Trust is ready to respond to whatever opportunities the future holds in store. We appreciate the confidence you have placed in Centennial California Tax Exempt Trust, and we look forward to continuing to help you meet your financial goals in the future. Sincerely, JON S. FOSSEL Jon S. Fossel President, Centennial California Tax Exempt Trust JAMES C. SWAIN James C. Swain Chairman, Centennial California Tax Exempt Trust January 23, 1995 1.The Trust is neither insured nor guaranteed by the U.S. Government. There is no assurance that the Trust will maintain a stable $1 share price in the future. 2. 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 December 31, 1994 (Unaudited) Centennial California Tax Exempt Trust
Face Market Value Amount See Note 1 ----------- ------------ SHORT-TERM TAX-EXEMPT OBLIGATIONS -- 98.8% CALIFORNIA--98.8% Anaheim, California Housing Authority Multifamily Housing Revenue Bonds, Bel Page Project, Series A, Remarketed, 5.40%(1)................................................................ $ 1,000,000 $ 1,000,000 Anaheim, California Housing Authority Multifamily Housing Revenue Refunding Bonds, Park Vista Apts., Series A, 6.75%(1)..................................................................... 3,000,000 3,000,000 California Health Facilities Finance Revenue Bonds, Santa Barbara Cottage Project, Series C, 5.30%(1)............................................................................ 200,000 200,000 California Pollution Control Finance Authority Solid Waste Disposal Revenue Bonds, Western Waste Industries, Series A, 3.60%(1)................................................................ 4,500,000 4,500,000 California State General Obligation Bonds, Series A-3, MBIA Insured, 5.80%(1)................... 3,000,000 3,000,000 California Statewide Communities Development Corp. Industrial Development Revenue Bonds, Propak California Corp., Series B, 5.625%(1)......................................................... 1,000,000 1,000,000 Contra Costa County, California Multifamily Housing Revenue Refunding Bonds, Del Norte Place Apts., Series A, 5.35%(1)..................................................................... 1,500,000 1,500,000 Costa Mesa, California Certificates of Participation, Orange County Performing Arts Center, 5.225%(1)..................................................................................... 2,845,000 2,845,000 Covina, California Redevelopment Agency Multifamily Revenue Refunding Bonds, Housing-Shadowhills Apts., Inc., Series A, CCSB Insured, 5.60%(1)................................................. 3,000,000 3,000,000 Fairfield, California Industrial Development Revenue Bonds, Herman G. Rowland, 5.273%(1)........ 1,050,000 1,050,000 Irvine, California Multifamily Housing Revenue Bonds, Series 1983A, 6.45%(1).................... 100,000 100,000 Kern County, California Union High School District Certificates of Participation, Finance Project, 5.35%(1)............................................................................. 500,000 500,000 Los Angeles County, California Metropolitan Transportation Authority Revenue Bonds, Second Sub. Sales Tax, 4.20%, 3/13/95..................................................................... 6,400,000 6,400,000 Los Angeles, California Convention and Exhibition Center Authority Revenue Bonds, Series 1989 A, 3.90%(1)...................................................................................... 2,000,000 2,000,000 Los Angeles, California Multifamily Housing Revenue Bonds, Series K, 5%(1)...................... 400,000 400,000 Northern California Public Power Agency Revenue Bonds, Geothermal Project No. 3, Series 84A, 11.50%, 7/1/95(2)............................................................................. 70,000 71,041 Northern California Public Power Agency Revenue Bonds, Series PW 9, 3.90%(1).................... 2,855,000 2,855,000 Oakland, California Redevelopment Agency Certificates of Participation, Prerefunded, 9.25%, 8/1/95(2)..................................................................................... 3,775,000 3,944,265 Oceanside, California Multifamily Revenue Bonds, Lakeridge Apts. Project, CCSB Insured, 6.25%(1)...................................................................................... 1,000,000 1,000,000 Orange County, California Apt. Development Revenue Refunding Bonds, Series A, 6.75%(1).......... 1,000,000 1,000,000 Orange County, California Municipal Water District Refunding Certificates of Participation, Allen McColloch Project, Series A, 7%(1)...................................................... 4,000,000 4,000,000 Palm Springs, California Community Redevelopment Agency Certificates of Participation, Headquarters Hotel, Series 7, 6%(1)........................................................... 400,000 400,000
2 STATEMENT OF INVESTMENTS (Unaudited) (Continued) Centennial California Tax Exempt Trust
Face Market Value Amount See Note 1 ----------- ------------ CALIFORNIA (CONTINUED) Pittsburg, California Mortgage Obligation Guaranteed Revenue Bonds, Series A, FGIC Insured, 5.90%(1)...................................................................................... $ 5,000,000 $ 5,000,000 Pittsburg, California Multifamily Mtg. Revenue Bonds, Fountain Plaza Project, 5.40%(1).......... 1,700,000 1,700,000 Sacramento, California Municipal Utility District Revenue Bonds, 4.30%, 4/11/95................. 6,000,000 6,000,000 San Diego, California Multifamily Housing Revenue Refunding Bonds, Coral Point Apts. Project, Series A, 5.95%(1)............................................................................ 2,500,000 2,500,000 San Leandro, California Multifamily Mtg. Revenue Bonds, Parkside Commons Project, Series A, 5.30%(1)...................................................................................... 1,000,000 1,000,000 San Marcos, California Redevelopment Agency Multifamily Housing Bonds, San Marcos Retirement Village Project, 4.245%(1).................................................................... 2,500,000 2,500,000 Southern California Rapid Transit District Certificates of Participation, Series BT-10, MBIA Insured, 5.50%(1)............................................................................. 1,000,000 1,000,000 Visalia, California Industrial Development Revenue Bonds, Akers West Assn., 5.60%(1)............ 1,150,000 1,150,000 West and Central Basin California Finance Authority, Tax and Revenue Anticipation Nts., 3.75%, 1/30/95....................................................................................... 2,500,000 2,500,000 ------------ Total Investments, at Value (Cost $67,115,306).................................................. 98.8% 67,115,306 Other Assets Net of Liabilities................................................................. 1.2 817,249 ------ ------------ Net Assets...................................................................................... 100.0% $ 67,932,555 ------ ------------ ------ ------------
1. Floating or variable rate obligation maturing in more than one year. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on December 31, 1994. A demand feature 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. 3 See accompanying Notes to Financial Statements. STATEMENT OF ASSETS AND LIABILITIES December 31, 1994 (Unaudited) Centennial California Tax Exempt Trust ASSETS: Investments, at value (cost $67,115,306) - see accompanying statement............................... $67,115,306 Cash................................................................................................. 100,557 Receivables: Shares of beneficial interest sold................................................................. 1,192,160 Interest........................................................................................... 367,789 Deferred organization costs........................................................................ 1,912 Other.............................................................................................. 13,185 ----------- Total assets.................................................................................... 68,790,909 ----------- LIABILITIES: Payables and other liabilities: Shares of beneficial interest redeemed............................................................. 782,503 Service plan fees - Note 3......................................................................... 33,474 Dividends.......................................................................................... 454 Other.............................................................................................. 41,923 ----------- Total liabilities............................................................................... 858,354 ----------- NET ASSETS........................................................................................... $67,932,555 ----------- ----------- COMPOSITION OF NET ASSETS: Paid-in capital...................................................................................... $67,944,396 Accumulated net realized gain (loss) from investment transactions.................................... (11,841) ----------- NET ASSETS - Applicable to 67,944,396 shares of beneficial interest outstanding...................... $67,932,555 ----------- ----------- NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE....................................... $1.00
See accompanying Notes to Financial Statements. 4 STATEMENT OF OPERATIONS For the Six Months Ended December 31, 1994 (Unaudited) Centennial California Tax Exempt Trust INVESTMENT INCOME - Interest.......................................................................... $1,061,297 ---------- EXPENSES: Management fees - Note 3.............................................................................. 162,775 Service plan fees - Note 3............................................................................ 64,384 Transfer and shareholder servicing agent fees - Note 3................................................ 19,626 Custodian fees and expenses........................................................................... 11,345 Legal and auditing fees............................................................................... 6,313 Shareholder reports................................................................................... 3,687 Registration and filing fees.......................................................................... 2,723 Trustees' fees and expenses........................................................................... 1,180 Other................................................................................................. 8,008 ---------- Total expenses................................................................................... 280,041 ---------- Less assumption of expenses by Centennial Asset Management Corporation - Note 3.................. (19,601) ---------- Net expenses..................................................................................... 260,440 ---------- NET INVESTMENT INCOME (LOSS).......................................................................... 800,857 NET REALIZED GAIN (LOSS) ON INVESTMENTS............................................................... (11,841) ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................................... $ 789,016 ---------- ----------
See accompanying Notes to Financial Statements. 5 STATEMENTS OF CHANGES IN NET ASSETS Centennial California Tax Exempt Trust
Six Months Ended December 31, Year Ended 1994 June 30, (Unaudited) 1994 ---------------- ----------- OPERATIONS: Net investment income (loss)............................................. $ 800,857 $ 1,174,691 Net realized gain (loss) on investments.................................. (11,841) 80 ---------------- ----------- Net increase (decrease) in net assets resulting from operations.......... 789,016 1,174,771 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS.............................. (800,916) (1,177,627) BENEFICIAL INTEREST TRANSACTIONS: Net increase (decrease) in net assets resulting from beneficial interest transactions - Note 2.................................................. 7,568,792 2,299,586 ---------------- ----------- NET ASSETS: Total increase (decrease)................................................ 7,556,892 2,296,730 Beginning of period...................................................... 60,375,663 58,078,933 ---------------- ----------- End of period............................................................ $ 67,932,555 $60,375,663 ---------------- ----------- ---------------- -----------
See accompanying Notes to Financial Statements. 6 FINANCIAL HIGHLIGHTS Centennial California Tax Exempt Trust
Six Months Ended Year Ended June 30, December 31, 1994 ------------------------------------------------------ (Unaudited) 1994 1993 1992 1991 1990(1) ---------------- ------- ------- ------- ------- ------ PER SHARE OPERATING DATA: Net asset value, beginning of period.............................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Income from investment operations - net investment income and net realized gain on investments......................... .01 .02 .02 .03 .04 .003 Dividends and distributions to shareholders........................ (.01) (.02) (.02) (.03) (.04) (.003) ----- ----- ----- ----- ----- ----- Net asset value, end of period........ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands).......................... $67,933 $60,376 $58,079 $48,483 $32,337 $2,018 Average net assets (in thousands)..... $64,537 $65,520 $56,082 $40,684 $16,150 $1,914 Number of shares outstanding at end of period (in thousands)............... 67,944 60,376 58,076 48,484 32,337 2,018 Ratios to average net assets: Net investment income............... 2.46%(2) 1.79% 1.90% 3.13% 4.09% 6.29%(2) Expenses, before voluntary assumption by the Manager........ .86%(2) .87% .86% .91% 1.09% 2.53%(2) Expenses, net of voluntary assumption by the Manager........ .80%(2) .80% .80% .80% .84% .90%(2)
1. For the period from June 12, 1990 (commencement of operations) to June 30, 1990. 2. Annualized. See accompanying Notes to Financial Statements. 7 NOTES TO FINANCIAL STATEMENTS (Unaudited) 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 advisor is Centennial Asset Management Corporation (the Manager), a subsidiary of Oppenheimer Management Corporation (OMC). 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 Income 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 tax provision is required. Organization Costs - The Manager advanced $18,743 for organization and start-up costs of the Trust. Such expenses are being amortized over a five-year period from the date operations commenced. In the event that all or part of the Manager's initial investment in shares of the Trust is withdrawn during the amortization period, the redemption proceeds will be reduced to reimburse the Trust for any unamortized expenses, in the same ratio as the number of shares redeemed bears to the number of initial shares outstanding at the time of such redemption. 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. 2. SHARES OF BENEFICIAL INTEREST The Trust has authorized an unlimited number of no par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
Six Months Ended Year Ended December 31, 1994 June 30, 1994 ----------------------------- ----------------------------- Shares Amount Shares Amount ------------ ------------- ------------ ------------- Sold.................................. 123,268,363 $ 123,268,363 231,741,608 $ 231,741,608 Dividends and distributions rein- vested.............................. 827,615 827,615 1,131,972 1,131,972 Redeemed.............................. (116,527,186) (116,527,186) (230,573,994) (230,573,994) ------------ ------------- ------------ ------------- Net increase........................ 7,568,792 $ 7,568,792 2,299,586 $ 2,299,586 ------------ ------------- ------------ ------------- ------------ ------------- ------------ -------------
8 NOTES TO FINANCIAL STATEMENTS (Unaudited)(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 an annual fee of .50% on the first $250 million of net assets with a reduction of .025% on each $250 million thereafter, to .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 .80% of average annual net assets. Shareholder Services, Inc. (SSI), a subsidiary of OMC, 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 .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. 9 [THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY] [THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY] CENTENNIAL CALIFORNIA TAX EXEMPT TRUST Officers and Trustees James C. Swain, Chairman and Chief Executive Officer Robert G. Avis, Trustee William A. Baker, Trustee Charles Conrad, Jr., Trustee Jon S. Fossel, Trustee and President Raymond J. Kalinowski, Trustee C. Howard Kast, Trustee Robert M. Kirchner, Trustee Ned M. Steel, Trustee Michael A. Carbuto, Vice President Andrew J. Donohue, Vice President George C. Bowen, Vice President, Secretary and Treasurer Robert J. Bishop, Assistant Treasurer Scott 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, P.C. The financial statements included herein have been taken from the records of the Trust without examination by the independent auditors. 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: 1-800-525-7048 (in U.S.) 303-671-3200 (outside U.S.) Or write: Shareholder Services, Inc. P.O. Box 5270 Denver, CO 80217-5270 RS0180.001.0295 ['Recycled' Logo] Printed on recycled paper 1994 SEMI-ANNUAL REPORT CENTENNIAL CALIFORNIA TAX EXEMPT TRUST DECEMBER 31, 1994 -----END PRIVACY-ENHANCED MESSAGE-----