<PAGE>
Dear Shareholder:
It is a pleasure to report that Centennial Tax Exempt Trust once again met its
objectives well for the year ended December 31, 1994, providing a highly
attractive yield exempt from federal income taxes while maintaining principal
stability.1
During the 6-month period ended December 31, 1994, the Trust's compounded
annualized yield was 2.74%. The corresponding yield without compounding was
2.70%. The seven-day annualized yields with and without compounding at December
31, 1994 were 4.24% and 4.15%, respectively.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 2.14% at the beginning of the year to 4.24% at December 31.
To put this yield in perspective, an investor in the 36% federal income tax
bracket would need to earn at least 6.63% on a taxable investment to match the
Trust's tax-free yield.
Throughout the year, your managers steadily shortened the Trust's average
maturity, reducing it from 71 days on January 1 to 63 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 Tax Exempt Trust is ready to
respond to whatever opportunities the future holds in store.
We appreciate the confidence you have placed in Centennial 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 Tax Exempt Trust
JAMES C. SWAIN
James C. Swain
Chairman, Centennial 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 Tax Exempt Trust
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS - 109.4%
ALABAMA - 1.4%
Bessemer, Alabama Industrial Development Revenue Bonds, Big B, Inc. Project, Series A,
5.65%(1)................................................................................... $ 3,675,000 $ 3,675,000
Montgomery, Alabama Baptist Medical Center Special Care Facilities Financing Authority
Revenue Bonds, VHA Alabama, Inc., Series C, AMBAC Insured, 5.25%(1)........................ 3,775,000 3,775,000
Montgomery, Alabama Baptist Medical Center Special Care Facilities Financing Authority
Revenue Bonds, VHA Alabama, Inc., Series D, AMBAC Insured, 5.25%(1)........................ 5,000,000 5,000,000
Winfield City, Alabama Industrial Development Revenue Bonds, Union Underwear Co., 5.40%(1)... 1,900,000 1,900,000
------------
14,350,000
------------
ALASKA - 1.9%
Alaska Industrial Development & Export Authority Revenue Refunding Bonds, Safeway, Inc.
Project, 4.45%, 6/1/95(2).................................................................. 2,380,000 2,380,000
Alaska Industrial Development Authority Revenue Bonds, Providence Medical Office Building,
3.50%(1)................................................................................... 4,015,000 4,015,000
North Slope Boro, Alaska General Obligation Revenue Refunding Bonds, Series J, MBIA Insured,
6.10%, 6/30/95............................................................................. 12,710,000 12,830,491
------------
19,225,491
------------
ARIZONA - 3.4%
Apache County, Arizona Industrial Development Authority Revenue Bonds, Tucson Electric Power
Projects, Series 83B, 5.625%(1)............................................................ 6,000,000 6,000,000
Apache County, Arizona Industrial Development Authority Revenue Bonds, Tucson Electric Power
Projects, Series A, 5.45%(1)............................................................... 8,300,000 8,300,000
Maricopa County, Arizona Industrial Development Authority Revenue Bonds, Grand Canyon
University Project, 5.55%(1)............................................................... 5,500,000 5,500,000
Phoenix, Arizona Industrial Development Authority Multifamily Housing Revenue Bonds,
Southwest Villages Project, Series A, 5.50%(1)............................................. 13,400,000 13,400,000
Tempe, Arizona Industrial Development Authority Revenue Refunding Bonds, Safeway, Inc.
Project, 3.95%, 5/1/95(2).................................................................. 1,000,000 1,000,000
------------
34,200,000
------------
ARKANSAS - 0.5%
Harrison, Arkansas Industrial Development Revenue Refunding Bonds, McKesson Corp. Project,
5.70%(1)................................................................................... 3,940,000 3,940,000
Jonesboro, Arkansas Industrial Development Revenue Bonds, Farr Co. Project, 6.25%(1)......... 645,000 645,000
</TABLE>
2
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
------ ------------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
ARKANSAS (CONTINUED)
Subiaco, Arkansas Industrial Development Revenue Bonds, Cloves Gear & Products, Inc.,
5.70%(1)................................................................................... $ 700,000 $ 700,000
------------
5,285,000
------------
CALIFORNIA - 5.1%
California Health Facilities Finance Authority Revenue Bonds, Adventist Health System, Series
B, 5.30%(1)................................................................................ 1,000,000 1,000,000
California Health Facilities Finance Authority Revenue Bonds, Scripps Memorial Hospital,
Series A, MBIA Insured, 5.75%(1)........................................................... 500,000 500,000
California Health Facilities Finance Revenue Bonds, Huntington Memorial Hospital, 5.50%(1)... 1,900,000 1,900,000
California Health Facilities Finance Revenue Bonds, Pooled Loan Program, Series B, FGIC
Insured, 5.75%(1).......................................................................... 500,000 500,000
California Health Facilities Finance Revenue Bonds, Santa Barbara Cottage Project, Series C,
5.30%(1)................................................................................... 9,600,000 9,600,000
California Health Facilities Financing Authority Revenue Bonds, Kaiser Permanente, Series B,
5.30%(1)................................................................................... 4,400,000 4,400,000
California State General Obligation Bonds, Series A-3, MBIA Insured, 5.80%(1)................ 500,000 500,000
Contra Costa County, California Multifamily Housing Revenue Refunding Bonds, Del Norte Place
Apts., Series A, 5.35%(1).................................................................. 1,000,000 1,000,000
Huntington Park, California Redevelopment Agency Multifamily Housing Revenue Bonds, Casa Rita
Apts., Series A, 5.70%(1).................................................................. 1,500,000 1,500,000
Irvine, California Multifamily Housing Revenue Bonds, Series 1983A, 6.45%(1)................. 900,000 900,000
Kern County, California Union High School District Certificates of Participation, Finance
Project, 5.35%(1).......................................................................... 1,000,000 1,000,000
Kern, California Community College District Certificates of Participation, Finance Project,
4.90%(1)................................................................................... 1,000,000 1,000,000
Los Angeles County, California Housing Authority Revenue Bonds, Park Sierra Project,
5.55%(1)................................................................................... 2,000,000 2,000,000
Los Angeles, California Multifamily Housing Revenue Bonds, Series K, 5%(1)................... 3,000,000 3,000,000
Oceanside, California Multifamily Revenue Bonds, Lakeridge Apts. Project, CCSB Insured,
6.25%(1)................................................................................... 9,000,000 9,000,000
Ontario, California Multifamily Mtg. Revenue Bonds, Residential Park Centre, Series A,
5.50%(1)................................................................................... 2,400,000 2,400,000
San Bernardino County, California Multifamily Housing Authority Revenue Refunding Bonds,
Monterey Villas Apts. Project, Series A, 5.15%(1).......................................... 2,125,000 2,125,000
</TABLE>
3
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION> Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
CALIFORNIA (CONTINUED)
San Francisco, California City & County Multifamily Housing Authority Revenue Bonds,
Winterland Project, Series 85-C, 5.40%(1).................................................. $ 2,400,000 $ 2,400,000
San Francisco, California City & County Redevelopment Agency Multifamily Revenue Refunding
Bonds, Fillmore Center Housing, Series A-1, 5.40%(1)....................................... 500,000 500,000
Southern California Public Power Authority Revenue Refunding Bonds, Southern Transmission
Project, AMBAC Insured, 4.80%(1)........................................................... 5,000,000 5,000,000
Visalia, California Certificates of Participation, Visalia Convention Center Expansion
Project, 5.90%(1).......................................................................... 400,000 400,000
------------
50,625,000
------------
COLORADO - 5.9%
Arapahoe County, Colorado Multifamily Revenue Refunding Bonds, Hunters Run Rental Housing,
5.75%(1)................................................................................... 25,600,000 25,600,000
Aurora, Colorado Industrial Development Revenue Refunding Bonds, La Quinta Motor Inns,
5.65%(1)................................................................................... 3,000,000 3,000,000
Colorado Health Facilities Authority Revenue Bonds, Sisters of Charity Project, Series S,
5.55%(1)................................................................................... 4,400,000 4,400,000
Colorado Housing Finance Authority Revenue Refunding Bonds, Huntersridge Multifamily Housing
Project, 5.50%(1).......................................................................... 2,595,000 2,595,000
Englewood, Colorado Industrial Development Revenue Refunding Bonds, Safeway, Inc. Project,
4.45%, 6/1/95(2)........................................................................... 1,815,000 1,815,000
Fraser, Colorado Industrial Development Revenue Refunding Bonds, Safeway, Inc. Project,
4.45%, 6/1/95(2)........................................................................... 1,965,000 1,965,000
Westminster, Colorado Multifamily Revenue Bonds, Wexford Station Apts., Series A, CCSB
Insured, 4.875%, 12/1/95(2)................................................................ 17,235,000 17,235,000
Wheat Ridge, Colorado Industrial Development Revenue Refunding Bonds, La Quinta Motor Inns,
5.65%(1)................................................................................... 2,400,000 2,400,000
------------
59,010,000
------------
DELAWARE - 0.6%
Sussex County, Delaware Economic Development Revenue Bonds, Route 113 Ltd., Partnership
Project, 4.20%(1).......................................................................... 6,000,000 6,000,000
------------
FLORIDA - 7.7%
Broward County, Florida Mulifamily Housing Finance Authority Revenue Bonds, Landings
Inverrary Apts., 5.35%(1).................................................................. 7,800,000 7,800,000
Dade County, Florida Housing Finance Authority Multifamily Mtg. Revenue Bonds, Flamingo Plaza
Apts. Project, Series 18, 5.60%(1)......................................................... 9,900,000 9,900,000
</TABLE>
4
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
FLORIDA (CONTINUED)
Dade County, Florida Housing Finance Authority Multifamily Mtg. Revenue Refunding Bonds,
Hadley Gardens, Series 1, 5.30%(1)......................................................... $ 6,425,000 $ 6,425,000
Dade County, Florida School District General Obligation Bonds, Series A, 5.50%(1)............ 2,000,000 2,000,000
Dade County, Florida School District General Obligation Bonds, Series B, 5.50%(1)............ 2,000,000 2,000,000
Escambia County, Florida Health Facilities Authority Revenue Refunding Bonds, Florida
Convertible Centers Project, Series A, 3.90%(1)............................................ 1,400,000 1,400,000
Florida Housing Finance Agency Revenue Bonds, Series G3, 5.45%, 1/3/95(2).................... 10,000,000 10,003,600
Florida State Board of Education Public Education Capital Outlay Refunding Bonds, Series A,
3.58%(1)................................................................................... 13,230,000 13,230,000
Hillsborough County, Florida Industrial Development Authority Pollution Control Revenue
Bonds, 5.73%(1)............................................................................ 17,975,000 17,975,000
Key West, Florida Community Redevelopment Agency Revenue Refunding Bonds, Pier House Joint
Venture, 5.50%(1).......................................................................... 900,000 900,000
Orange County, Florida Housing Finance Authority Revenue Refunding Bonds, Monterey
Multifamily Housing Project, Series B, 5.70%(1)............................................ 5,040,000 5,040,000
------------
76,673,600
------------
GEORGIA - 2.1%
Coweta County, Georgia Development Authority Pollution Control Revenue Bonds, Georgia Power
Co. Plant, Yates Project, 5.62%(1)......................................................... 10,125,000 10,125,000
De Kalb County, Georgia Housing Authority Apt. Development Revenue Refunding Bonds, Winter
Peachtree Project, 5.80%(1)................................................................ 5,000,000 5,000,000
Floyd County, Georgia Development Authority Pollution Control Revenue Refunding Bonds,
Inland-Rome, Inc. Project, 5.70%(1)........................................................ 4,735,000 4,735,000
Newton County, Georgia Industrial Development Authority Revenue Refunding Bonds, John H.
Harland Co. Project, 5.60%(1).............................................................. 1,000,000 1,000,000
------------
20,860,000
------------
HAWAII - 0.3%
Hawaii State Department of Budget & Finance Special Purpose Mtg. Revenue Bonds, Kuakini
Medical Center Project, FGIC Insured, 3.75%(1)............................................. 2,900,000 2,900,000
------------
ILLINOIS - 8.7%
Centralia City, Illinois Industrial Development Revenue Bonds, Consolidated Foods
Corp./Hollywood Brands, Inc., 5.70%(1)..................................................... 5,500,000 5,500,000
Elk Grove Village, Illinois Industrial Development Revenue Bonds, La Quinta Motor Inns,
4.20%(1)................................................................................... 3,700,000 3,700,000
</TABLE>
5
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
ILLINOIS (CONTINUED)
Illinois Development Finance Authority Pollution Control Revenue Bonds, Illinois Power Co.
Project, Series C, 3.90%, 3/2/95(2)........................................................ $ 4,000,000 $ 4,003,960
Illinois Educational Facilities Authority Revenue Bonds, National St. Louis University,
5.50%(1)................................................................................... 6,500,000 6,500,000
Illinois Health Facilities Authority Revenue Bonds, Lake Forest Hospital Project, 4.25%(1)... 13,000,000 13,000,000
Lakemoor Village Illinois Multifamily Housing Mtg. Revenue Bonds, Lakemoor Apt. Project,
5.55%, 6/1/95(2)........................................................................... 15,000,000 15,000,000
Oakbrook Terrace, Illinois Multifamily Housing Mtg. Revenue Bonds, 5.55%, 6/1/95(2).......... 35,000,000 35,000,030
West Chicago, Illinois Industrial Development Revenue Refunding Bonds, Liquid Container
Project, 5.50%(1).......................................................................... 3,810,000 3,810,000
------------
86,513,990
------------
INDIANA - 4.9%
Crawfordsville, Indiana Economic Development Revenue Refunding Bonds, Pedcor
Investments-Shady Knoll I Apts. Project, 5.70%(1).......................................... 3,475,000 3,475,000
Gary, Indiana Industrial Environmental Improvement Revenue Bonds, U.S. Steel Corp. Project,
4.25%(1)................................................................................... 1,000,000 1,000,000
Hobart, Indiana Economic Development Revenue Refunding Bonds, MMM Invest, Inc. Project,
5.55%(1)................................................................................... 2,410,000 2,410,000
Indiana Health Facilities Finance Authority Revenue Bonds, Cardinal Center Project,
3.59%(1)................................................................................... 2,350,000 2,350,000
Indiana State Industrial Development Finance Authority Revenue Bonds, Saroyan Hardwoods,
Inc., 5.75%(1)............................................................................. 2,300,000 2,300,000
Indianapolis, Indiana Local Public Improvement Bank Notes, Series F, 5.25%, 7/14/95.......... 28,850,000 28,912,893
Indianapolis, Indiana Local Public Improvement Bank Notes, Series G, 5.25%, 7/14/95.......... 2,675,000 2,680,832
Marion County, Indiana Hospital Authority Hospital Facility Revenue Bonds, Indianapolis
Osteopathic, 3.40%(1)...................................................................... 4,100,000 4,100,000
St. Joseph County, Indiana Educational Facilities Revenue Bonds, Holy Cross College,
5.55%(1)................................................................................... 1,000,000 1,000,000
------------
48,228,725
------------
IOWA - 0.7%
Des Moines, Iowa Commercial Development Revenue Bonds, Series A, 5.50%(1).................... 6,900,000 6,900,000
------------
</TABLE>
6
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
KANSAS - 0.8%
Kansas City, Kansas Private Activity Revenue Refunding Bonds, Inland Container Corp.,
5.70%(1)................................................................................... $ 5,200,000 $ 5,200,000
Olathe, Kansas Industrial Revenue Refunding Bonds, William F. Bieber Project, 3.40%(1)....... 1,925,000 1,925,000
Ottawa, Kansas Industrial Development Revenue Bonds, Laich Industries Project, 5.70%(1)...... 800,000 800,000
------------
7,925,000
------------
KENTUCKY - 0.6%
Greenville, Kentucky Industrial Development Revenue Refunding Bonds, Wetterau, Inc. Project,
5.50%(1)................................................................................... 5,000,000 5,000,000
Jamestown, Kentucky Industrial Building Revenue Bonds, Union Underwear Co., 5.40%(1)......... 1,000,000 1,000,000
------------
6,000,000
------------
LOUISIANA - 0.8%
Caddo Parish, Louisiana Industrial Development Revenue Bonds, Frymaster Corp. Project,
5.50%(1)................................................................................... 5,750,000 5,750,000
East Baton Rouge Parish, Louisiana Industrial Development Board Revenue Refunding Bonds, La
Quinta Motor Inns, 5.65%(1)................................................................ 2,625,000 2,625,000
------------
8,375,000
------------
MARYLAND - 5.8%
Hartford County, Maryland Revenue Refunding Bonds, 1001 Participation Facility Project,
4%(1)...................................................................................... 2,850,000 2,850,000
Hyattsville, Maryland Industrial Development Revenue Refunding Bonds, Safeway, Inc. Project,
4.45%, 6/1/95(2)........................................................................... 2,700,000 2,700,000
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Carroll
General Pooled Loan Program, Series A, 5.60%(1)............................................ 1,555,000 1,555,000
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, University of
Maryland Pooled Loan Program, Series B, 4%(1).............................................. 1,285,000 1,285,000
Montgomery County, Maryland Multifamily Housing Revenue Bonds, Grosvenor House Project,
Series A, 4%(1)............................................................................ 19,700,000 19,700,000
Montgomery County, Maryland Multifamily Housing Revenue Bonds, Issue A, 5.75%(1)............. 15,800,000 15,800,000
Montgomery County, Maryland Public Improvement General Obligation Bonds, Series A, 5.20%,
10/1/95.................................................................................... 5,000,000 5,014,835
</TABLE>
7
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
MARYLAND (CONTINUED)
Worcester County, Maryland Revenue Refunding Bonds, White Marlin Mall Project, 4.20%(1)...... $ 8,250,000 $ 8,250,000
------------
57,154,835
------------
MASSACHUSETTS - 1.7%
Massachusetts State Commonwealth General Obligation Bonds, Series C, 3.81%(1)................ 15,400,000 15,400,000
Massachusetts State Industrial Finance Agency Revenue Bonds, Hazen Paper Co., 4.245%(1)...... 550,000 550,000
North Andover Town, Massachusetts Industrial Revenue Bonds, Atlee-Oak Realty Trust of
Delaware, Inc., 4.245%(1).................................................................. 550,000 550,000
------------
16,500,000
------------
MICHIGAN - 0.7%
Detroit, Michigan Tax Increment Finance Authority Revenue Bonds, 5.50%(1).................... 4,200,000 4,200,000
Madison Heights, Michigan Economic Development Revenue Bonds, Red Roof Inns Project,
4.05%(1)................................................................................... 1,000,000 1,000,000
Michigan State Job Development Authority Revenue Bonds, East Lansing Residence Associates
Project, 3.90%(1).......................................................................... 1,900,000 1,900,000
------------
7,100,000
------------
MINNESOTA - 7.4%
Anoka, Minnesota Multifamily Housing Revenue Bonds, Walker Plaza, Series B, 5.50%(1)......... 2,050,000 2,050,000
Austin, Minnesota Industrial Development Revenue Refunding Bonds, SuperValu Stores, Inc.
Project, 5.65%(1).......................................................................... 4,600,000 4,600,000
Bloomington, Minnesota Port Authority Tax Revenue Refunding Bonds, Mall of America Project,
Series C, FSA Insured, 5.55%(1)............................................................ 8,300,000 8,300,000
Burnsville, Minnesota Commercial Development Revenue Bonds, SuperValu Stores, Inc. Project,
Series 83, 5.65%(1)........................................................................ 5,500,000 5,500,000
Dakota County, Minnesota Housing & Redevelopment Multifamily Mtg. Revenue Bonds, Westwood
Ridge Rental Housing, Series A, 5.50%(1)................................................... 2,500,000 2,500,000
Eagan, Minnesota Multifamily Housing Revenue Refunding Bonds, Aspenwoods of Eagan Apts.
Project, 5.55%(1).......................................................................... 5,580,000 5,580,000
Eden Prairie, Minnesota Commercial Development Revenue Refunding Bonds, Lakeview Business
Center, 5.50%(1)........................................................................... 1,200,000 1,200,000
Maplewood, Minnesota Revenue Bonds, 3.75%(1)................................................. 1,340,000 1,340,000
</TABLE>
8
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
MINNESOTA (CONTINUED)
Minneapolis City, Minnesota Commercial Development Refunding Revenue Bonds, Minnehaha Lake
Partners Project, 5.55%(1)................................................................. $ 2,750,000 $ 2,750,000
Minneapolis, Minnesota Housing Development Revenue Refunding Bonds, One Ten Grant Project,
5.25%(1)................................................................................... 3,000,000 3,000,000
Minnesota State Housing Finance Agency Revenue Bonds, Single Family Mtg., Series F, 2.50%,
1/12/95(2)................................................................................. 2,855,000 2,855,000
New Ulm, Minnesota Hospital Facilities Revenue Bonds, Health Center Systems, 5.40%(1)........ 2,500,000 2,500,000
North Suburban Hospital District, Minnesota Revenue Bonds, Anoka and Ramsey Counties Hospital
Health Center, 5.40%(1).................................................................... 3,400,000 3,400,000
St. Paul, Minnesota Housing & Development Authority Revenue Bonds, Series A, 5.55%(1)........ 16,700,000 16,700,000
St. Paul, Minnesota Port Authority Parking Revenue Refunding Bonds, City Walking Ramp
Project, 5.50%(1).......................................................................... 2,410,000 2,410,000
St. Paul, Minnesota Port Authority Tax Increment Revenue Bonds, Westgate Office & Industrial
Center Project, 5.50%(1)................................................................... 5,500,000 5,500,000
Stillwater, Minnesota Industrial Development Revenue Refunding Bonds, SuperValu Stores, Inc.
Project, 5.65%(1).......................................................................... 3,500,000 3,500,000
------------
73,685,000
------------
MISSOURI - 2.2%
Howell County, Missouri Industrial Development Authority Revenue Refunding Bonds, Safeway,
Inc. Project, 3.60%, 2/1/95(2)............................................................. 4,425,000 4,425,000
St. Charles County, Missouri Industrial Development Revenue Refunding Bonds, Remington Apts.
Project, 5.80%(1).......................................................................... 6,300,000 6,300,000
St. Louis County, Missouri Industrial Development Authority Multifamily Housing Revenue
Refunding Bonds, Sugar Pines Apts. Project, Series A, 5.50%(1)............................. 10,985,000 10,985,000
------------
21,710,000
------------
MONTANA - 0.1%
Great Falls, Montana Industrial Development Revenue Refunding Bonds, SuperValu Stores, Inc.
Project, 5.65%(1).......................................................................... 1,000,000 1,000,000
------------
NEBRASKA - 0.3%
Norfolk, Nebraska Industrial Development Revenue Refunding Bonds, SuperValu Stores, Inc.
Project, 5.65%(1).......................................................................... 2,800,000 2,800,000
------------
</TABLE>
9
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
NEVADA - 2.5%
Nevada State General Obligation Bonds, Colorado River Commission, 3.85%(1)................... $25,000,000 $ 25,000,000
------------
NEW HAMPSHIRE - 0.3%
New Hampshire Higher Educational & Health Facilities Authority Revenue Bonds, VHA New
England, Inc., Series E, AMBAC Insured, 5.25%(1)........................................... 3,000,000 3,000,000
------------
NEW JERSEY - 1.6%
New Jersey Economic Development Authority Manufacturing Facilities Revenue Bonds, VPR
Commerce Center Project, 5.65%(1).......................................................... 3,750,000 3,750,000
New Jersey State General Obligation Revenue Refunding Bonds, 7.90%, 8/1/95................... 5,000,000 5,094,450
New Jersey State Tax & Revenue Anticipation Notes, Series A, 5%, 6/15/95(2).................. 6,500,000 6,522,270
------------
15,366,720
------------
NEW YORK - 5.5%
Babylon, New York General Obligation Bonds, Series B, AMBAC Insured, 4.70%(1)................ 1,500,000 1,500,000
City of New York Development Corp. Mtg. Revenue Bonds, Columbus Multifamily Project, Series
A, 5.50%(1)................................................................................ 2,700,000 2,700,000
City of New York Housing Development Corp. Mtg. Revenue Bonds, East 96th Street Project,
Series A, 5.20%(1)......................................................................... 1,500,000 1,500,000
City of New York Housing Development Corp. Mtg. Revenue Bonds, Multifamily-James Tower
Development, Series A, 5.40%(1)............................................................ 3,000,000 3,000,000
City of New York Housing Development Corp. Mtg. Revenue Bonds, Queenswood Multifamily
Project, Series A, 5.50%(1)................................................................ 1,800,000 1,800,000
City of New York Revenue Anticipation Notes, Series B, 4.75%, 6/30/95........................ 23,000,000 23,011,025
City of New York Trust Cultural Resources Revenue Refunding Bonds, American Museum of Natural
History, Series A, MBIA Insured, 4.70%(1).................................................. 2,400,000 2,400,000
City of New York Trust Cultural Resources Revenue Refunding Bonds, American Museum of Natural
History, Series B, MBIA Insured, 4.70%(1).................................................. 900,000 900,000
Erie County, New York General Obligation Revenue Anticipation Notes, 4.75%, 8/15/95.......... 1,800,000 1,799,675
Erie County, New York Water Authority Revenue Bonds, Series A, AMBAC Insured, 4.75%(1)....... 1,000,000 1,000,000
Geneva, New York Industrial Development Agency Civic Facility Revenue Bonds, Colleges of the
Seneca, Series A, 5.30%(1)................................................................. 470,000 470,000
New York State Housing Finance Agency Revenue Bonds, Normandie Court I Project, 5.50%(1)..... 900,000 900,000
New York State Job Development Authority Guaranteed Revenue Bonds, 1984 Series E-1 to E-55,
3.75%(1)................................................................................... 400,000 400,000
</TABLE>
10
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
NEW YORK (CONTINUED)
New York State Job Development Authority Guaranteed Revenue Bonds, 1984 Series F-1 to F-17,
3.75%(1)................................................................................... $ 175,000 $ 175,000
New York State Job Development Authority Guaranteed Revenue Bonds, Series C1 to C30,
3.75%(1)................................................................................... 955,000 955,000
New York State Job Development Authority Guaranteed Revenue Bonds, Special Purpose, Series
C-1, 3.85%(1).............................................................................. 865,000 865,000
New York State Local Government Assistance Corp. Revenue Bonds, Series A, 5.10%(1)........... 2,000,000 2,000,000
New York State Medical Care Facilities Finance Agency Revenue Bonds, St. Marys
Hospital-Private Insurance Program, Prerefunded, AMBAC Insured, 8.375%, 11/1/95............ 5,000,000 5,235,138
North Hempstead, New York Solid Waste Management Authority Revenue Refunding Bonds, Series A,
4.85%(1)................................................................................... 200,000 200,000
Suffolk County, New York Industrial Development Agency Revenue Bonds, Nissequogue Cogen
Partners Project, 4.85%(1)................................................................. 1,500,000 1,500,000
Triborough Bridge & Tunnel Authority of New York Revenue Bonds, FGIC Insured, 4.85%,(1)...... 2,000,000 2,000,000
------------
54,310,838
------------
NORTH CAROLINA - 1.7%
North Carolina National Bank Certificates of Participation, Series 1990A, 4.25%(1)........... 11,650,000 11,650,000
North Carolina National Bank Certificates of Participation, Series 1990B, 4.25%(1)........... 4,700,000 4,700,000
------------
16,350,000
------------
NORTH DAKOTA - 0.1%
Bismarck, North Dakota Industrial Development Revenue Refunding Bonds, SuperValu Stores, Inc.
Project, 5.65%(1).......................................................................... 800,000 800,000
------------
OHIO - 8.4%
Cuyahoga County, Ohio Industrial Development Revenue Bonds, Southwest Ltd. Partnership,
4.70%, 12/1/95(2).......................................................................... 500,000 500,000
Dublin Inn, Ohio Mtg. Revenue Bonds, Series 1987, 4.57%, 3/1/95(2)........................... 7,420,000 7,420,000
Gallia County, Ohio Industrial Development Mtg. Revenue Refunding Bonds, Jackson Pike Assn.,
4.40%, 6/15/95(2).......................................................................... 1,680,000 1,680,000
Licking County, Ohio Industrial Development Revenue Bonds, Power Industries, Inc. Project,
4.50%, 6/1/95(2)........................................................................... 315,000 315,000
Lucas County, Ohio Industrial Development Revenue Refunding Bonds, H.H. Motel, Inc. Project,
5.55%(1)................................................................................... 4,045,000 4,045,000
Mahoning County, Ohio Long Term Care Facility Revenue Bonds, Assumption Nursing Home, Inc.,
5.50%(1)................................................................................... 5,850,000 5,850,000
</TABLE>
11
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
OHIO (CONTINUED)
Marion County, Ohio Hospital Revenue Bonds, Pooled Lease Program, 4%, 5/1/95(2).............. $ 9,150,000 $ 9,150,000
Marion County, Ohio Hospital Revenue Bonds, Pooled Lease Program, 5.55%(1)................... 6,960,000 6,960,000
Miami Valley, Ohio Mtg. Revenue Bonds, Series 86, 4.88%, 10/15/95(2)......................... 2,860,000 2,860,000
Ohio State Air Quality Development Authority Pollution Control Revenue Refunding Bonds,
Series B, 4.95%, 10/4/95................................................................... 4,655,000 4,655,000
Ohio State Water Development Authority Pollution Control Facilities Revenue Refunding Bonds,
Duquesne Light Co., Series A, 4.95%, 10/4/95............................................... 33,955,000 33,955,000
Scioto County, Ohio Health Care Facilities Revenue Bonds, Hill View Retirement Center, 4.50%,
6/1/95(2).................................................................................. 2,895,000 2,895,000
Warren County, Ohio Industrial Development Revenue Refunding Bonds, Liquid Container Project,
5.50%(1)................................................................................... 1,670,000 1,670,000
Whitehall, Ohio Industrial Development Revenue Refunding Bonds, Fst. Mtg. Continental
Commercial, 3.55%, 2/1/95(2)............................................................... 1,630,000 1,630,000
------------
83,585,000
------------
OKLAHOMA - 0.9%
Claremore, Oklahoma Industrial & Redevelopment Authority Revenue Refunding Bonds, Worthington
Cylinder Project, 5.65%(1)................................................................. 2,370,000 2,370,000
Cleveland County, Oklahoma Public Facilities Revenue Bonds, Hunt Development Project, Series
A, 5.60%(1)................................................................................ 1,000,000 1,000,000
Mid-West, Oklahoma Mtg. Revenue Bonds, 4%(1)................................................. 2,370,000 2,370,000
Tulsa, Oklahoma Industrial Authority Revenue Bonds, 5.60%(1)................................. 3,500,000 3,500,000
------------
9,240,000
------------
OREGON - 1.2%
Hillsboro, Oregon Revenue Bonds, Oregon Graduate Institute, 5.55%(1)......................... 8,600,000 8,600,000
Oregon State Economic & Industrial Development Commission Revenue Bonds, Eagel-Picher
Industries Project, 5.60%(1)............................................................... 3,600,000 3,600,000
------------
12,200,000
------------
PENNSYLVANIA - 2.8%
Allegheny County Pennsylvania Hospital Development Authorities Revenue Refunding Bonds,
Harmarville Rehabilitation Project, 3.56%(1)............................................... 1,000,000 1,000,000
Chartiers Valley, Pennsylvania Industrial & Commercial Development Authority Revenue Bonds,
William Penn Place Project, 3.90%(1)....................................................... 800,000 800,000
Commonwealth of Pennsylvania Mtg. Revenue Bonds, Series A, 4.20%, 5/1/95(2).................. 3,675,000 3,675,000
</TABLE>
12
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Cumberland County, Pennsylvania Municipal Authority Revenue Bonds, United Methodist Housing
Agency, 5.65%(1)........................................................................... $ 2,000,000 $ 2,000,000
Littlestown, Pennsylvania Industrial Development Authority Revenue Refunding Bonds, Hanover
House Industries Project, 3.45%(1)......................................................... 3,000,000 3,000,000
Philadelphia, Pennsylvania Authority for Industrial Development Revenue Bonds, Commercial
Development Assn., 3.90%(1)................................................................ 7,400,000 7,400,000
Philadelphia, Pennsylvania Authority for Industrial Development Revenue Bonds, Franklin
Institute Project, 5.50%(1)................................................................ 2,775,000 2,775,000
Philadelphia, Pennsylvania Authority for Industrial Development Revenue Refunding Bonds,
Harbor View Towers, 5.50%(1)............................................................... 1,350,000 1,350,000
Philadelphia, Pennsylvania Hospital & Higher Educational Facilities Authority Revenue Bonds,
Friends Hospital, Series A, 5.50%(1)....................................................... 1,000,000 1,000,000
Schuylkill County, Pennsylvania Industrial Development Authority Revenue Bonds, Bon-Ton
Stores Project, 5.50%(1)................................................................... 1,860,000 1,860,000
Schuylkill County, Pennsylvania Industrial Development Authority Revenue Bonds, S. Grumbacher
& Son Project, 5.50%(1).................................................................... 1,600,000 1,600,000
Warren County, Pennsylvania Hospital Authority Revenue Bonds, Warren General Hospital
Project, Series B, 5.50%(1)................................................................ 1,000,000 1,000,000
------------
27,460,000
------------
SOUTH CAROLINA - 3.7%
Charleston Center, South Carolina General Obligation Bonds, Grantor Trust, No. 2 Ltd.
Partnership, 4%, 5/1/95(2)................................................................. 4,407,500 4,407,500
Charleston Center, South Carolina General Obligation Bonds, Grantor Trust, No. 3 Ltd.
Partnership, 3.15%, 7/1/95(2).............................................................. 18,905,000 18,905,000
Charleston Center, South Carolina General Obligation Bonds, Grantor Trust, No. 6 Ltd.
Partnership, 3.90%, 4/1/95(2).............................................................. 8,075,000 8,075,000
Florence County, South Carolina Industrial Development Revenue Bonds, Stone Container Corp.
Project, 4.50%(1).......................................................................... 4,000,000 4,000,000
South Carolina Jobs & Economic Development Authority Revenue Bonds, Wellman Income Project,
5.75%(1)................................................................................... 1,000,000 1,000,000
------------
36,387,500
------------
</TABLE>
13
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
SOUTH DAKOTA - 1.8%
Grant County, South Dakota Pollution Control Revenue Refunding Bonds, Otter Tail Power Co.
Project, 5.55%(1).......................................................................... $10,400,000 $ 10,400,000
South Dakota State Health & Educational Bonds, Sioux Valley Hospital Issue, 5.55%(1)......... 5,900,000 5,900,000
Watertown, South Dakota Industrial Development Revenue Bonds, SuperValu Income Project,
5.65%(1)................................................................................... 2,000,000 2,000,000
------------
18,300,000
------------
TENNESSEE - 3.0%
Clarksville, Tennessee Public Building Authority Revenue Bonds, Pooled Financing Tennessee
Municipal Bond Fund, 5.60%(1).............................................................. 12,000,000 12,000,000
Dayton, Tennessee Industrial Development Board Revenue Refunding Bonds, La-Z Boy Chair Co.
Project, 5.70%(1).......................................................................... 4,350,000 4,350,000
Knox County, Tennessee Industrial Development Board Revenue Bonds, Weisgarber Partners, FGIC
Insured, 3.65%,(1)......................................................................... 3,000,000 3,000,000
Metropolitan Government of Nashville & Davidson County, Tennessee Health & Education
Facilities Board Revenue Bonds, Vanderbilt University, Series 85A, 2.60%, 1/15/95(2)....... 1,000,000 1,000,000
Metropolitan Government of Nashville & Davidson County, Tennessee Health & Education
Facilities Board Revenue Bonds, Vanderbilt University, Series 85A, 2.60%, 1/15/95(2)....... 700,000 700,000
Metropolitan Government of Nashville & Davidson County, Tennessee Multifamily Housing Revenue
Bonds, Arbor Crest Project, Series B, 5.45%(1)............................................. 3,550,000 3,550,000
Rutherford County, Tennessee Industrial Development Revenue Bonds, Derby Industries, Inc.
Project, 5.75%(1).......................................................................... 1,000,000 1,000,000
Smyrna, Tennessee Housing Assn., Inc. Multifamily Revenue Refunding Bonds, Imperial Gardens
Apt. Project, 5.65%(1)..................................................................... 4,285,000 4,285,000
------------
29,885,000
------------
TEXAS - 7.1%
Angelina and Neches River Authority Texas Pollution Control Revenue Refunding Bonds,
Temple-Inland Forest Project, 5.70%(1)..................................................... 7,350,000 7,350,000
Harris County, Texas Revenue Bonds, Series A, 2.94%(1)....................................... 5,000,000 5,000,000
Red River, Texas Pollution Control Authority Revenue Refunding Bonds, Southwestern Public
Service Co., 3.50%(1)...................................................................... 2,200,000 2,200,000
Texas State Tax & Revenue Anticipation Notes, 5%, 8/31/95.................................... 49,150,000 49,219,208
</TABLE>
14
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
TEXAS (CONTINUED)
Travis County, Texas Health Facilities Development Corp. Hospital Revenue Bonds, 3.63%(1).... $ 4,400,000 $ 4,400,000
Trinity River Authority Texas Pollution Revenue Refunding Bonds, LaFarge Corp. Project,
5.35%(1)................................................................................... 2,500,000 2,500,000
------------
70,669,208
------------
UTAH - 0.2%
Castle Dale, Utah Industrial Development Revenue Refunding Bonds, Safeway, Inc. Project,
3.60%, 2/1/95(2)........................................................................... 1,200,000 1,200,000
Tremonton City, Utah Industrial Development Revenue Refunding Bonds, Safeway, Inc. Project,
4.45%, 6/1/95(2)........................................................................... 1,190,000 1,190,000
------------
2,390,000
------------
VERMONT - 0.2%
Vermont Industrial Development Authority Revenue Bonds, Sherburne Corp., 4.245%(1)........... 2,285,000 2,285,000
------------
VIRGINIA - 0.2%
Rockbridge County, Virginia Industrial Development Authority Revenue Refunding Bonds,
Safeway, Inc. Project, 3.60%, 2/1/95(2).................................................... 2,000,000 2,000,000
------------
WASHINGTON - 1.7%
Port Longview, Washington Industrial Development Revenue Bonds, Longview Fibre Co. Project,
5.50%(1)................................................................................... 2,500,000 2,500,000
Port Vancouver, Washington Revenue Refunding Bonds, United Grain Corp. of Oregon-1984B,
5.10%(1)................................................................................... 1,400,000 1,400,000
Redmond, Washington Public Corp. Industrial Revenue Refunding Bonds, Genie Industries, Lot 1,
6.25%(1)................................................................................... 1,140,000 1,140,000
Redmond, Washington Public Corp. Industrial Revenue Refunding Bonds, Genie Industries, Lot 2,
6.25%(1)................................................................................... 1,805,000 1,805,000
Seattle, Washington Industrial Development Corp. Revenue Bonds, RICS Ltd. Partnership,
5.50%(1)................................................................................... 5,700,000 5,700,000
Washington State Housing Finance Commission Revenue Bonds, Horizon House Project, 5.50%(1)... 4,655,000 4,655,000
------------
17,200,000
------------
</TABLE>
15
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Market
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS (CONTINUED)
WEST VIRGINIA - 2.6%
Grant County, West Virginia Pollution Control Revenue Bonds, Virginia Electric & Power Co.
Project, Series 1994, 4.75%, 5/25/95....................................................... $19,500,000 $ 19,521,645
Harrison County, West Virginia Industrial Development Revenue Refunding Bonds, Fox Grocery
Co. Project, 5.50%(1)...................................................................... 4,140,000 4,140,000
Keyser, West Virginia Industrial Revenue Refunding Bonds, Keyser Assn. Project, 5.50%(1)..... 1,650,000 1,650,000
------------
25,311,645
------------
WYOMING - 0.3%
Douglas, Wyoming Industrial Development Revenue Refunding Bonds, Safeway, Inc. Project,
4.45%, 6/1/95(2)........................................................................... 2,795,000 2,795,000
------------
Total Investments, at Value (Cost $1,087,557,552)............................................ 109.4% 1,087,557,552
Liabilities in Excess of Other Assets........................................................ (9.4) (93,693,689)
----------- ------------
Net Assets................................................................................... 100.0% $993,863,863
----------- ------------
----------- ------------
</TABLE>
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.
See accompanying Notes to Financial Statements.
16
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES December 31, 1994 (Unaudited)
Centennial Tax Exempt Trust
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $1,087,557,552) - see accompanying statement......................... $1,087,557,552
Cash.............................................................................................. 146,905
Receivables:
Shares of beneficial interest sold.............................................................. 16,269,878
Interest........................................................................................ 5,392,155
Other............................................................................................. 29,195
--------------
Total assets................................................................................. 1,109,395,685
--------------
LIABILITIES:
Payables and other liabilities:
Investments purchased........................................................................... 96,025,975
Shares of beneficial interest redeemed.......................................................... 19,275,123
Service plan fees - Note 3...................................................................... 99,441
Dividends....................................................................................... 8,387
Other........................................................................................... 122,896
--------------
Total liabilities............................................................................ 115,531,822
--------------
NET ASSETS........................................................................................ $ 993,863,863
--------------
--------------
COMPOSITION OF NET ASSETS:
Paid-in capital................................................................................... $ 993,871,389
Accumulated net realized gain (loss) from investment transactions................................. (7,526)
--------------
NET ASSETS - Applicable to 993,887,356 shares of beneficial interest outstanding.................. $ 993,863,863
--------------
--------------
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE.................................... $1.00
</TABLE>
See accompanying Notes to Financial Statements.
17
<PAGE>
STATEMENT OF OPERATIONS For the Six Months Ended December 31, 1994 (Unaudited)
Centennial Tax Exempt Trust
<TABLE>
<S> <C>
INVESTMENT INCOME - Interest......................................................................... $17,913,844
-----------
EXPENSES:
Management fees - Note 3............................................................................. 2,383,305
Service plan fees - Note 3........................................................................... 1,058,792
Transfer and shareholder servicing agent fees - Note 3............................................... 190,692
Shareholder reports.................................................................................. 57,948
Registration and filing fees......................................................................... 42,467
Legal and auditing fees.............................................................................. 35,193
Trustees' fees and expenses.......................................................................... 9,604
Other................................................................................................ 16,044
-----------
Total expenses.................................................................................. 3,794,045
-----------
NET INVESTMENT INCOME (LOSS)......................................................................... 14,119,799
NET REALIZED GAIN (LOSS) ON INVESTMENTS.............................................................. 23,863
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................................... $14,143,662
-----------
-----------
</TABLE>
See accompanying Notes to Financial Statements.
18
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Six Months Ended
December 31, Year Ended
1994 June 30,
(Unaudited) 1994
---------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......................................... $ 14,119,799 $ 19,775,488
Net realized gain (loss) on investments............................... 23,863 2,423
---------------- --------------
Net increase (decrease) in net assets resulting from operations....... 14,143,662 19,777,911
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS........................... (14,131,296) (19,846,407)
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets resulting from beneficial
interest transactions - Note 2...................................... (45,534,326) 58,297,214
---------------- --------------
NET ASSETS:
Total increase (decrease)............................................. (45,521,960) 58,228,718
Beginning of period................................................... 1,039,385,823 981,157,105
---------------- --------------
End of period......................................................... $ 993,863,863 $1,039,385,823
---------------- --------------
---------------- --------------
</TABLE>
See accompanying Notes to Financial Statements.
19
<PAGE>
FINANCIAL HIGHLIGHTS
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Six Months Ended Year Ended June 30,
December 31, 1994 ----------------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
----------------- ---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
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 .05
Dividends and distributions to
shareholders........................ (.01) (.02) (.02) (.03) (.04) (.05)
----- ----- ----- ----- ----- -----
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).......................... $ 993,864 $1,039,386 $981,157 $917,402 $786,673 $575,461
Average net assets (in thousands)..... $ 1,056,231 $1,057,022 $977,073 $900,497 $710,799 $560,984
Number of shares outstanding at end of
period (in thousands)............... 993,887 1,039,421 981,125 917,305 786,576 575,462
Ratios to average net assets:
Net investment income............... 2.65%(1) 1.87% 2.08% 3.40% 4.84% 5.44%
Expenses............................ .71%(1) .76% .76% .75% .77% .79%
</TABLE>
1. Annualized.
See accompanying Notes to Financial Statements.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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 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.
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:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1994 June 30, 1994
-------------------------------- --------------------------------
Shares Amount Shares Amount
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold............................... 1,629,226,355 $ 1,629,225,326 3,351,917,791 $ 3,351,918,751
Dividends and distributions
reinvested....................... 14,621,686 14,621,686 19,299,307 19,299,307
Issued in connection with the
acquisition of Oppenheimer
Tax-Exempt Cash Reserves -- Note
4................................ 31,152,605 31,152,738 -- --
Redeemed........................... (1,720,534,076) (1,720,534,076) (3,312,920,844) (3,312,920,844)
-------------- --------------- -------------- ---------------
Net increase (decrease).......... (45,533,430) $ (45,534,326) 58,296,254 $ 58,297,214
-------------- --------------- -------------- ---------------
-------------- --------------- -------------- ---------------
</TABLE>
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 $1.5 billion, .35% on
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
the next $500 million of net assets and .325% on net assets in excess of $2
billion. Until Trust net assets reach $1.5 billion, the annual fee payable to
the Manager will be reduced by $100,000. The Manager has agreed to assume Trust
expenses (with specified exceptions) in excess of the most stringent applicable
regulatory limit on Trust expenses.
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 service plan, 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. During the six months ended
December 31, 1994, the Trust paid $6,984 to a broker/dealer affiliated with the
Manager as reimbursement for distribution-related expenses.
4. ACQUISITION OF OPPENHEIMER TAX-EXEMPT CASH RESERVES
On July 22, 1994, the Trust acquired all of the net assets of Oppenheimer
Tax-Exempt Cash Reserves (OTECR), pursuant to an Agreement and Plan of
Reorganization approved by the OTECR shareholders on July 12, 1994. The Trust
issued 31,152,605 shares of beneficial interest, valued at $31,152,738, in
exchange for the net assets, resulting in combined net assets of $1,086,765,782
on July 22, 1994. The exchange qualifies as a tax-free reorganization for
federal income tax purposes.
22
<PAGE>
[THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY]
<PAGE>
CENTENNIAL 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 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:
1-800-525-7048 (in U.S.)
303-671-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5270
Denver, CO 80217-5270
RS0160.001.0295 ['Recycled' Logo] Printed on recycled paper
1994 SEMI-ANNUAL REPORT
CENTENNIAL
TAX EXEMPT
TRUST
DECEMBER 31, 1994
