-----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, IRNyqus3iFo2PVVaaRqBsxnDBZ1padeieAqS1gbSHHP3us3pUInk+JlUhVPV4/7M ptlME7IRK8mw5WpowTkYCQ== 0000950133-99-002965.txt : 19990901 0000950133-99-002965.hdr.sgml : 19990901 ACCESSION NUMBER: 0000950133-99-002965 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 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: SEC FILE NUMBER: 811-05871 FILM NUMBER: 99703405 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 3410 S GALENA STREET STREET 2: 3410 S GALENA STREET CITY: DENVER STATE: CO ZIP: 80231 N-30D 1 FORM N-30D (PERIOD ENDED 6/30/99) 1 1999 ANNUAL REPORT CENTENNIAL CALIFORNIA TAX EXEMPT TRUST 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 islands 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 maintain the Trust's average maturities, which are between 30 to 60 days. 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 California Tax Exempt Trust produced a compounded annual yield of 2.41%. Without compounding, the corresponding yield was 2.38%. For investors in the 36% tax bracket this is equivalent to a taxable yield of 3.77% with compounding, and 3.72% without. On June 30, 1999, the seven-day annualized yields, with and without compounding, were 2.36% and 2.34%, 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) 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 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. 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. The California economy has been doing well over the past two years, with revenues once again up to par, due to a soaring economy and a spreading surplus. 1. Compounded yields assume reinvestment of dividends. Past performance is not indicative of future results. 3 The broad range of products available in California enables us to concentrate on quality, yield and maturity needs. Some specific holdings during the period were: Los Angeles, CA Convention & Exhibition Center Authority, Refunding Certificates of Participation Modesto, CA Irrigation District Finance Authority Revenue Bonds Oceanside, CA Multifamily Housing Revenue Refunding Bonds, Lakeridge Apartment Project Puerto Rico Commonwealth Tax & Revenue Anticipation Notes Riverside County, CA Tax & Revenue Anticipation Notes 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 California Tax Exempt Trust /s/ BRIDGET A. MACASKILL Bridget A. Macaskill President Centennial California Tax Exempt Trust July 22, 1999 2 4 STATEMENT OF INVESTMENTS June 30, 1999 Centennial California Tax Exempt Trust
Face Value Amount See Note 1 ----------- ------------ SHORT-TERM TAX-EXEMPT OBLIGATIONS--95.7% CALIFORNIA--91.2% Agoura Hills, CA MH RRB, Oakridge Apts. Project, 3.20%(1) ............................. $1,100,000 $ 1,100,000 CA GOB, Tendered Option Certificates, Series 1998A, MBIA Insured, 3.65%(1)(2) ......... 6,873,000 6,872,946 CA HFA RB, Series PT 220, 3.10%, 3/9/00(3) ............................................ 6,580,000 6,580,000 CA PCFAU RB, Chevron USA, Inc. Project, 3.10%, 5/15/00(3) ............................. 2,500,000 2,500,000 CA PCFAU SWD RB: Santa Clara Valley Disposal Co., Series A, 3.35%(1).................................. 3,200,000 3,200,000 Western Waste Industries, Series A, 3.95%(1)......................................... 1,500,000 1,500,000 CA SCDAU COP, Series 24, FSA Insured, 3.52%(1)(2) ..................................... 7,000,000 7,000,000 CA SCDAU RB, 3.55%(1) ................................................................. 2,200,000 2,200,000 CA Statewide CDC IDV RB, Propak California Corp., Series B, 3.30%(1) .................. 700,000 700,000 CA University Board of Regents RB, 3%, 8/24/99(3) ..................................... 4,945,000 4,945,000 Freemont, CA MH RB, Treetops Apts., Series A, 3.75%(1) ................................ 4,000,000 4,000,000 Los Angeles Cnty., CA MTAU Sales Tax RB, AMBAC Insured, Series SG54, 3.62%(1) ......... 1,000,000 1,000,000 Los Angeles Cnty., CA Pension Obligation RB, Series B, AMBAC Insured, 3.25%(1) ........ 600,000 600,000 Los Angeles, CA Airport RB, Series SG61, 3.64%(1) ..................................... 6,000,000 6,000,000 Los Angeles, CA Convention & Exhibit Center Authority Refunding COP: AMBAC Insured, 6.60%, 8/15/99........................................................ 4,020,000 4,038,367 Prerefunded, Series A, 7.375%, 8/15/99(3)............................................ 3,570,000 3,643,008 Series A, 7.30%, 8/15/99(3).......................................................... 1,000,000 1,020,341 Los Angeles, CA Wastewater System ABN AMRO Munitops Certificates, Series 1998-25, 3.20%, 7/7/99(3) .................................................... 8,000,000 8,000,000 Modesto, CA Irrigation District FAU RB, Series SG66, 3.57%(1) ......................... 5,500,000 5,500,000 Oceanside, CA MH RRB, Lakeridge Apts. Project, 3.75%(1) ............................... 7,000,000 7,000,151 Orange Cnty., CA FAU Teeter Plan RB, Series C, AMBAC Insured, 6.15%, 11/1/99(3) ....... 1,800,000 1,818,258 Pittsburg, CA Mortgage Obligation RRB, Series A, 3.55%(1) ............................. 7,000,000 7,000,034 Riverside Cnty., CA TAN & RAN: 2.95%, 8/25/99(3).................................................................... 5,000,000 5,000,000 4.50%, 9/30/99....................................................................... 8,000,000 8,030,986 Sacramento Cnty., CA RB, Trust REG D, Series A28, 3.30%(1) ............................ 8,700,000 8,700,000 San Bernardino Cnty., CA TAN & RAN, 4.50%, 9/30/99 .................................... 4,000,000 4,015,295 San Bernardino Cnty., CA, MH RB, Somerset Apts., Series A, 3.60%(1) ................... 2,495,000 2,495,000 San Diego, CA ABN AMRO Munitops Certificates, Series 1998-10, 3.60%(1)(2) ............. 7,000,000 7,000,000 San Diego, CA MH RRB, Coral Point Apts. Project, Series A, 4%(1) ...................... 2,500,000 2,500,000 San Diego, CA TAN, Series A, 4.50%, 9/30/99 ........................................... 5,000,000 5,017,611 San Francisco, CA City & Cnty. International Airport RB, Series 88, 3.57%(1) .......... 1,700,000 1,700,000 San Mateo Cnty., CA Transit District RB, Series A, MBIA Insured, 4%, 6/1/00 ........... 5,085,000 5,126,929
3 5 STATEMENT OF INVESTMENTS June 30, 1999 (Continued) Centennial California Tax Exempt Trust
Face Value Amount See Note 1 ----------- ------------ CALIFORNIA (CONTINUED) South Gate, CA PFAU TXAL Refunding Bonds, South Gate Redevelopment Project, Subseries A-2, 7.375%, 9/1/99(3) .................................................... $2,000,000 $ 2,055,202 Southern CA PP Authority Transmission Project RB, Southern Transmission A, 4%, 7/1/99 .......................................................................... 2,000,000 2,000,000 Visalia, CA IDV RB, Akers West Assn., 3.30%(1) ........................................ 2,350,000 2,350,000 ------------ 142,209,128 ------------ U.S. POSSESSIONS--4.5% PR CMWLTH TAN & RAN, 3.50%, 7/30/99 .................................................... 7,000,000 7,003,927 ------------ Total Investments, at Value ............................................................ 95.7% 149,213,055 ------------ Other Assets Net of Liabilities ........................................................ 4.3 6,626,422 ---------- ------------ Net Assets ............................................................................. 100.0% $155,839,477 ========== ============
To simplify the listings of securities, abbreviations are used per the table below: CDC--Community Development Corp. PFAU--Public Finance Authority CMWLTH--Commonwealth PP--Public Power COP--Certificates of Participation RAN--Revenue Anticipation Nts. FAU--Finance Authority RB--Revenue Bonds GOB--General Obligation Bonds RRB--Revenue Refunding Bonds HFA--Housing Finance Agency SCDAU--Statewide Communities Development Authority IDV--Industrial Development SWD--Solid Waste Disposal MH--Multifamily Housing TAN--Tax Anticipation Nts. MTAU--Metropolitan Transportation Authority TXAL--Tax Allocation PCFAU--Pollution Control Finance Authority
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. 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 $20,872,946 or 13.39% of the Trust's net assets as of June 30, 1999. 3. Put obligation redeemable at full face value on the date reported. See accompanying Notes to Financial Statements. 4 6 STATEMENT OF ASSETS AND LIABILITIES June 30, 1999 Centennial California Tax Exempt Trust
ASSETS Investments, at value--see accompanying statement..................................................... $149,213,055 Cash.................................................................................................. 374,493 Receivables and other assets: Shares of beneficial interest sold................................................................. 5,476,288 Interest........................................................................................... 2,221,644 Other.............................................................................................. 5,737 ------------ Total assets..................................................................................... 157,291,217 ------------ LIABILITIES Payables and other liabilities: Shares of beneficial interest redeemed ........................................................... 1,191,508 Dividends ........................................................................................ 122,533 Service plan fees ................................................................................ 82,961 Shareholder reports .............................................................................. 34,474 Transfer and shareholder servicing agent fees..................................................... 7,896 Custodian fees ................................................................................... 1,453 Other ............................................................................................ 10,915 ------------ Total liabilities .............................................................................. 1,451,740 ------------ NET ASSETS ........................................................................................... $155,839,477 ============ COMPOSITION OF NET ASSETS Paid-in capital ...................................................................................... $155,871,989 Accumulated net realized loss on investment transactions ............................................. (32,512) ------------ NET ASSETS--applicable to 155,871,989 shares of beneficial interest outstanding ...................... $155,839,477 ============ NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE ....................................... $1.00
See accompanying Notes to Financial Statements. 5 7 STATEMENT OF OPERATIONS For the Year Ended June 30, 1999 Centennial California Tax Exempt Trust INVESTMENT INCOME--Interest .......................................................................... $ 5,322,258 ----------- EXPENSES Management fees--Note 3 .............................................................................. 841,379 Service plan fees--Note 3 ............................................................................ 336,555 Transfer and shareholder servicing agent fees--Note 3 ................................................ 69,808 Custodian fees and expenses .......................................................................... 39,372 Shareholder reports .................................................................................. 28,482 Legal, auditing and other professional fees .......................................................... 12,131 Trustees' compensation ............................................................................... 2,400 Registration and filing fees ......................................................................... 2,057 Other ................................................................................................ 9,445 ----------- Total expenses .................................................................................... 1,341,629 Less expenses paid indirectly--Note 1 ........................................................... (13,211) Less reimbursement of expenses by Centennial Asset Management Corporation--Note 3................ (16,867) ----------- Net expenses ...................................................................................... 1,311,551 ----------- NET INVESTMENT INCOME ................................................................................ 4,010,707 ----------- NETREALIZED LOSS ON INVESTMENTS ...................................................................... (9,637) ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................................. $ 4,001,070 ===========
- -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS
Year Ended June 30, -------------------------------------- 1999 1998 ------------- ----------- OPERATIONS Net investment income .......................................................... $ 4,010,707 $ 4,512,553 Net realized loss .............................................................. (9,637) (19,307) ------------ ------------ Net increase in net assets resulting from operations ........................... 4,001,070 4,493,246 ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS .................................... (4,010,707) (4,512,553) ------------ ------------ BENEFICIAL INTEREST TRANSACTIONS Net increase in net assets resulting from beneficial interest transactions--Note 2 .................................... 17,181 23,912,099 ------------ ------------ NET ASSETS Total increase ................................................................. 7,544 23,892,792 Beginning of period ............................................................ 155,831,933 131,939,141 ------------ ------------ End of period .................................................................. $155,839,477 $155,831,933 ============ ============
See accompanying Notes to Financial Statements. 6 8 FINANCIAL HIGHLIGHTS Centennial California 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.................................. 02 .03 .03 .03 .03 Dividends and distributions to shareholders.......... (.02) (.03) (.03) (.03) (.03) -------- -------- -------- -------- ------- Net asset value, end of period....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======= TOTAL RETURN(1)...................................... 2.41% 2.86% 2.81% 2.97% 3.00% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands)............. $155,839 $155,832 $131,939 $118,838 $92,318 Average net assets (in thousands).................... $168,272 $160,317 $129,087 $112,911 $71,278 Ratios to average net assets:(2) Net investment income ............................... 2.38% 2.81% 2.78% 2.94% 2.99% Expenses, before voluntary assumption by the Manager(3)................................. 0.80% 0.80% 0.82% 0.80% 0.83% Expenses, net of voluntary assumption by the Manager.................................... 0.78% 0.79% 0.80% 0.79% 0.80%
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 gross expenses paid indirectly by the Trust. See accompanying Notes to Financial Statements. 7 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. 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 $24,000, 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. There are certain risks arising from geographic concentration in any state. Certain revenue or tax related event in a state may impair the ability of certain issuers of municipal securities to pay principal and interest on their obligations. 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. 8 10 NOTES TO FINANCIAL STATEMENTS (Continued) Centennial California 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.......................... 545,122,539 $ 545,122,539 587,035,412 $ 587,035,412 Dividends and distributions reinvested................... 3,938,512 3,938,512 4,414,987 4,414,987 Redeemed...................... (549,043,870) (549,043,870) (567,538,300) (567,538,300) ------------ ------------- ------------ ------------- Net increase.................. 17,181 $ 17,181 23,912,099 $ 23,912,099 ============ ============= ============ =============
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 and 0.40% of net assets in excess of $1 billion. The Manager has voluntarily undertaken to assume Trust expenses in excess of 0.80% of average annual net assets. The Trust's management fee for the year ended June 30, 1999 was 0.50% 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 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. 9 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, 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 California 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 10 12 FEDERAL INCOME TAX INFORMATION (Unaudited) Centennial California 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. 11 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 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 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.) 303-768-3200 (outside U.S.) Or write: Shareholder Services, Inc. P.O. 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