<PAGE> 1
1996 ANNUAL REPORT
CENTENNIAL
TAX EXEMPT
TRUST
JUNE 30, 1996
<PAGE> 2
DEAR SHAREHOLDER:
The twelve months ending June 30, 1996 have been defined by changing beliefs
about the direction of the economy which, in turn, has had both positive and
negative effects on the securities markets.
Toward the end of 1995, most investors expected that the economy would continue
to show signs of slowing. In fact, many were convinced that the economy was
moving toward recession. Given the prevailing sentiment, it wasn't a surprise
when the Federal Reserve lowered interest rates in an effort to prolong the
economic expansion. The goal: a slow but steady and sustainable rate of
economic growth that would diminish the possibility of recession. The impact of
lower interest rates on the stock and all sectors of the bond market was
profound. The Dow Jones Industrial Average reached an all time high, while most
sectors of the bond market, including municipal bonds, chalked up double digit
returns.
But in mid-February, the federal government issued a report on job growth that
radically altered investor perceptions. Suddenly, investors believed that the
economy was heating up and inflation was around the corner. In the weeks that
followed, the bond market sold off sharply, as long-term interest rates spiked
upward, with the benchmark 30-year Treasury yield moving about seven percent.
Since municipal bonds tend to track U.S. Treasury bonds, yields on municipals
rose as well. As a result, the bond market, including municipal bonds, weakened
between February and June.
Though this market environment has created some concerns for most long-term
municipal bond investors, rising interest rates are good for investors in
short-term municipal securities. Because the portfolio is structured to capture
the maximum amount of interest income exempt from federal income taxes, the
Trust continues to invest in short-term securities--especially during the
current rising rate market. Although shorter-term securities require us to
reinvest the proceeds we receive upon maturity more often, in a rising rate
environment that means moving into securities issued at higher rates.
The Centennial Tax Exempt Trust had a compounded annualized yield of 3.18% for
the twelve months ended June 30, 1996. The corresponding yield without
compounding was 3.14%. For investors in the 36% federal tax bracket, this is
equivalent to a taxable yield for twelve months of 4.97% with compounding and
4.91% without. Its seven-day yields with and without compounding for the
twelve-month period ended June 30, 1996 were 2.93% and 2.89%, respectively.1
<PAGE> 3
As we move through 1996, the strength of the economy continues to be an
uncertainty. However, with higher gasoline and agricultural prices there could
be some upward pressure on inflation over the next several months. As such, we
continue to look for opportunities to add to the portfolio's yield, while
keeping the Trust's average maturity shorter, remaining alert to the possibility
that interest rates may move slightly higher or lower in the coming months.
We are pleased to be able to maintain a competitive yield, as well as share
price stability, in light of the dramatic changes that have taken place during
the last twelve months.
Thank you for your confidence in Centennial Tax Exempt Trust. We look forward
to helping you reach your financial goals in the future.
Sincerely,
/s/ JAMES C. SWAIN
- -------------------------
James C. Swain
Chairman--Centennial Tax Exempt Trust
/s/ Bridget A. Macaskill
- -------------------------
Bridget A. Macaskill
President--Centennial Tax Exempt Trust
July 22, 1996
An investment in the Trust is neither insured nor guaranteed by the U.S.
Government and there can be no assurance that the Trust will be able to
maintain a stable net asset value of $1.00 per share.
1. Compounded yields assume reinvestment of dividends. A portion of the
Trust's distributions may be subject to federal and state income taxes. For
investors subject to the federal and/or state alternative minimum tax, a
portion of the Trust's distributions may increase this tax.
2
<PAGE> 4
STATEMENT OF INVESTMENTS June 30, 1996
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- ---------
SHORT-TERM TAX-EXEMPT OBLIGATIONS - 100.2%
<S> <C> <C>
ALABAMA - 0.8%
Bessemer, Alabama Industrial Development Revenue Bonds, Big B, Inc. Project,
Series A, 3.40%(1) ................................................................. $ 2,450,000 $ 2,450,000
Huntsville, Alabama Finance Authority Multifamily Housing Revenue Refunding Bonds,
Series B, 3.25%(1) ................................................................. 7,000,000 7,000,000
Winfield City, Alabama Industrial Development Revenue Bonds, Union Underwear Co.,
3.55%(1) ........................................................................... 1,900,000 1,900,000
-----------
11,350,000
-----------
ARIZONA - 4.8%
Arizona Health Facilities Authority Revenue Bonds, Blood Systems, Inc., 3.40%(1) ...... 8,000,000 8,000,000
Maricopa County, Arizona Industrial Development Authority Revenue Bonds, Grand
Canyon University Project, 3.40%(1) ................................................ 5,400,000 5,400,000
Phoenix, Arizona Industrial Development Authority Multifamily Housing Revenue
Refunding Bonds, Lynwood Apts. Project, 3.35%(1) ................................... 4,675,000 4,675,000
Phoenix, Arizona Industrial Development Authority Multifamily Housing Revenue
Refunding Bonds, Paradise Lakes Apts. Project, 1995 Series, 3.55%(1) ............... 22,500,000 22,500,000
Pima County, Arizona Industrial Development Authority Revenue Bonds, Tucson
Electric Power Co., Series A, 3.40%(1) ............................................. 6,000,000 6,000,000
Salt River, Arizona Agriculture Improvement Power Authority Revenue Bonds, 3.60%,
10/1/96(2) ......................................................................... 9,431,000 9,431,000
Salt River, Arizona Agriculture Improvement Power Authority Revenue Bonds, 3.60%,
9/10/96(2) ......................................................................... 11,100,000 11,100,000
Tucson, Arizona Industrial Development Authority Revenue Bonds, Geronimo Building
Renovation Project, 8%, 12/15/96(2) ................................................ 1,085,000 1,085,000
-----------
68,191,000
-----------
ARKANSAS - 0.3%
Harrison, Arkansas Industrial Development Revenue Refunding Bonds, McKesson
Corp. Project, 3.40%(1) ............................................................ 3,940,000 3,940,000
Subiaco, Arkansas Industrial Development Revenue Bonds, Cloves Gear & Products,
Inc., 3.75%(1) ..................................................................... 400,000 400,000
-----------
4,340,000
-----------
CALIFORNIA - 8.9%
Anaheim, California Housing Authority Multifamily Housing Revenue Bonds, Bel Page
Project, Series A, 3.20%(1) ........................................................ 1,000,000 1,000,000
Anaheim, California Housing Authority Multifamily Housing Revenue Refunding
Bonds, Park Vista Apts., Series A, 3.20%(1) ........................................ 2,000,000 2,000,000
California Health Facilities Financing Authority Revenue Bonds, Adventist Health
System, Series B, 3%(1) ............................................................ 1,000,000 1,000,000
California Health Facilities Financing Authority Revenue Bonds, Huntington Memorial
Hospital, 3.15%(1) ................................................................. 1,200,000 1,200,000
</TABLE>
3
<PAGE> 5
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS June 30, 1996(Continued)
Centennial Tax Exempt Trust
Face Value
Amount See Note 1
-------- ---------
<S> <C> <C>
CALIFORNIA (CONTINUED)
California Health Facilities Financing Authority Revenue Bonds, Kaiser Permanente
Medical Center Project, Series B, 3%(1) ............................................ $ 5,000,000 $ 5,000,000
California Health Facilities Financing Authority Revenue Bonds, Pooled Loan Program,
Series B, FGIC Insured, 2.80%(1) ................................................... 500,000 500,000
California Health Facilities Financing Authority Revenue Bonds, Santa Barbara Cottage
Project, Series C, 3%(1) ........................................................... 1,400,000 1,400,000
California Health Facilities Financing Authority Revenue Bonds, Scripps Memorial
Hospital, Series A, MBIA Insured, 3.05%(1) ......................................... 420,000 420,000
California Health Facilities Financing Authority Revenue Refunding Bonds, Memorial
Health Services Project, 3%(1) ..................................................... 3,700,000 3,700,000
California Higher Education Loan Authority Revenue Refunding Bonds, Sr. Lien,
Series A-1, 3.50%(1) ............................................................... 6,500,000 6,500,000
California Higher Education Loan Authority Student Loan Revenue Bonds, Series C,
3.50%(1) ........................................................................... 6,800,000 6,800,000
California Higher Education Loan Authority Student Loan Revenue Refunding Bonds,
Series 1987A, 3.70%, 5/1/97(2) ..................................................... 13,750,000 13,750,000
California Higher Education Loan Authority Student Loan Revenue Refunding Bonds,
Series 1992A-2, 3.70%, 5/1/97(2) ................................................... 14,000,000 14,000,000
California Pollution Control Financing Authority Revenue Bonds, 3.55%, 10/1/96(2) ..... 12,600,000 12,600,401
California Pollution Control Financing Authority Solid Waste Disposal Revenue Bonds,
Western Waste Industries, Series A, 3.10%(1) ....................................... 1,400,000 1,400,000
California State General Obligation Bonds, Series A-3, MBIA Insured, 3.60%(1) ......... 500,000 500,000
California Statewide Communities Development Authority Apt. Development Revenue
Refunding Bonds, Series 1995A, 3.15%(1) ............................................ 1,560,000 1,560,000
California Statewide Communities Development Corp. Industrial Development
Revenue Bonds, Andercraft Project, Series A, 3.25%(1) .............................. 940,000 940,000
Fresno, California Multifamily Housing Revenue Refunding Bonds, Heron Pointe Apts.,
Series A, 3.20%(1) ................................................................. 3,350,000 3,350,000
Kings County, California Housing Authority Multifamily Revenue Refunding Bonds,
Edgewater Isle Apts., Series A, 3.20%(1) ........................................... 3,195,000 3,195,000
Los Angeles County, California Housing Authority Revenue Bonds, Park Sierra Project,
3.15%(1) ........................................................................... 1,500,000 1,500,000
Metropolitan Water District of Southern California Waterworks Revenue Refunding
Bonds, Series A, AMBAC Insured, 2.95%(1) ........................................... 1,000,000 1,000,000
Northern California Power Agency Public Power Revenue Refunding Bonds,
Geothermal Project 3-A, 3.15%(1) ................................................... 2,800,000 2,800,000
Oceanside, California Multifamily Revenue Refunding Bonds, Lakeridge Apts. Project,
3.50%(1) ........................................................................... 5,000,000 5,000,000
Orange County, California Apt. Development Revenue Refunding Bonds, Series A,
3.15%(1) ........................................................................... 13,050,000 13,050,000
Pittsburg, California Mtg. Obligation Gtd. Revenue Bonds, Series A, 3.45%(1) .......... 5,000,000 5,000,000
</TABLE>
4
<PAGE> 6
STATEMENT OF INVESTMENTS June 30, 1996(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- -----------
CALIFORNIA (CONTINUED)
<S> <C> <C>
Pittsburg, California Multifamily Mtg. Revenue Bonds, Fountain Plaza Project, 3.20%(1) $ 1,500,000 $ 1,500,000
Riverside County, California Housing Authority Multifamily Housing Revenue Bonds,
McKinley Project, 3.35%(1) ........................................................ 2,300,000 2,300,000
Sacramento County, California Multifamily Housing Revenue Refunding Bonds,
Issue A, 3.813%(1) ................................................................ 3,400,000 3,400,000
Sacramento, California Municipal Utility District Tax-Exempt Commercial Paper, 3.50%,
10/1/96(2) ........................................................................ 500,000 500,029
San Bernardino County, California Housing Authority Multifamily Housing Revenue
Refunding Bonds, Arrowview Park Apts. Project, Series A, 3.25%(1) ................. 670,000 670,000
San Francisco, California City & County Redevelopment Agency Multifamily Revenue
Refunding Bonds, Fillmore Center Housing Project, Series A-1, 3%(1) ............... 500,000 500,000
San Leandro, California Multifamily Mtg. Revenue Bonds, Parkside Commons Project,
Series A, 3.10%(1) ................................................................ 1,000,000 1,000,000
Southern California Public Power Authority Revenue Refunding Bonds, Palo Verde
Project, Series B, AMBAC Insured, 3.10%(1) ........................................ 6,400,000 6,400,000
West Covina, California Redevelopment Agency Certificates of Participation, Barranca
Project, 3%(1) .................................................................... 1,300,000 1,300,000
------------
126,735,430
------------
COLORADO - 2.1%
Arapahoe County, Colorado Multifamily Revenue Refunding Bonds, Hunters Run
Rental Housing, 3.45%(1) .......................................................... 25,600,000 25,600,000
Aurora, Colorado Industrial Development Revenue Refunding Bonds, La Quinta
Motor Inns, Inc., 3.40%(1) ........................................................ 2,800,000 2,800,000
Wheat Ridge, Colorado Industrial Development Revenue Refunding Bonds, La Quinta
Motor Inns, Inc., 3.40%(1) ........................................................ 2,025,000 2,025,000
------------
30,425,000
------------
CONNECTICUT - 0.4%
Manshantucket Pequot, Connecticut Industrial Development Revenue Bonds, 3.40%,
9/5/96(2) ......................................................................... 2,500,000 2,500,000
Mashantucket Pequot, Connecticut Industrial Development Revenue Bonds, 3.40%,
10/24/96(2) ....................................................................... 3,500,000 3,500,000
------------
6,000,000
------------
Delaware - 0.4%
Sussex County, Delaware Economic Development Revenue Bonds, Route 113 LP
Project, 3.55%(1) ................................................................. 6,000,000 6,000,000
------------
Florida - 9.0%
Dade County, Florida Water & Sewer System Revenue Bonds, FGIC Insured, 3.65%(1) ...... 10,000,000 10,000,000
Escambia County, Florida Health Facilities Authority Revenue Refunding Bonds,
Florida Convertible Centers Project, Series A, 3.65%(1) ........................... 1,300,000 1,300,000
</TABLE>
5
<PAGE> 7
STATEMENT OF INVESTMENTS June 30, 1996(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- ---------
<S> <C> <C>
FLORIDA (CONTINUED)
Florida Housing Finance Agency Revenue Refunding Bonds, Multifamily Housing
Monterey Lake Project, 3.55%(1) ............................................... $ 19,965,000 $ 19,965,000
Florida State Board of Education Capital Outlay Public Education Refunding Bonds,
Series A, 3.50%(1) ............................................................ 13,230,000 13,230,000
Florida State Turnpike Authority Revenue Bonds, Series A, FGIC Insured, 3.60%(1) . 15,000,000 15,000,000
Hillsborough County, Florida Industrial Development Authority Pollution Control
Revenue Bonds, Tampa Electric Co. Project, 3.49%(1) ........................... 17,975,000 17,975,000
Jacksonville, Florida Electric Authority Revenue Bonds, 3.60%, 9/10/96(2) ........ 20,000,000 20,000,000
Orange County, Florida Housing Finance Authority Revenue Bonds, Smokewood/Sun
Project, Series A, 3.35%(1) ................................................... 4,000,000 4,000,000
Orange County, Florida Housing Finance Authority Revenue Refunding Bonds,
Monterey Multifamily Housing Project, Series B, 3.70%(1) ...................... 4,890,000 4,890,000
Orlando, Florida Waste Water Systems Revenue Refunding Bonds, Series A, 3.60%,
9/10/96(2) .................................................................... 5,000,000 5,000,000
Putnam County, Florida Development Authority Pollution Control Revenue Refunding
Bonds, Seminole Electric Co-op, Series D, 3.50%, 12/15/96(2) .................. 16,765,000 16,765,000
------------
128,125,000
------------
GEORGIA - 4.8%
Cobb County, Georgia Housing Authority Multifamily Housing Revenue Refunding
Bonds, Terrell Mill Project, 3.55%(1) ......................................... 9,400,000 9,400,000
Floyd County, Georgia Development Authority Pollution Control Revenue Refunding
Bonds, Inland-Rome, Inc. Project, 3.55%(1) .................................... 4,735,000 4,735,000
Fulton County, Georgia Development Authority Industrial Revenue Refunding Bonds,
Palisades West Ltd. Project, 3.35%(1) ......................................... 2,235,000 2,235,000
Fulton County, Georgia Development Authority Revenue Bonds, Georgia Tech Athletic
Assn., Inc., 3.35%(1) ......................................................... 3,000,000 3,000,000
Fulton County, Georgia Development Authority Revenue Bonds, Robert W. Woodruff
Arts Project, 3.35%(1) ........................................................ 2,000,000 2,000,000
Fulton County, Georgia Residential Care Facilities Revenue Bonds, Canterbury Court
Project, Series A, 3.35%(1) ................................................... 2,160,000 2,160,000
Georgia State General Obligation Bonds, Series 1995B, 3.45%(1) ................... 12,000,000 12,000,000
Newton County, Georgia Industrial Development Authority Revenue Refunding Bonds,
John H. Harland Co. Project, 3.35%(1) ......................................... 1,000,000 1,000,000
Roswell, Georgia Housing Authority Multifamily Revenue Bonds, Post Canyon Project,
3.25%(1) ...................................................................... 3,500,000 3,500,000
Roswell, Georgia Housing Authority Multifamily Revenue Refunding Bonds, Oxford
Project, 3.40%(1) ............................................................. 23,610,000 23,610,000
Smyrna, Georgia Housing Authority Multifamily Revenue Refunding Bonds, Hills of
Post Village Project, 3.25%(1) ................................................ 5,000,000 5,000,000
------------
68,640,000
------------
</TABLE>
6
<PAGE> 8
STATEMENT OF INVESTMENTS June 30, 1996(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- ---------
<S> <C> <C>
ILLINOIS - 10.7%
Centralia City, Illinois Industrial Development Revenue Bonds, Consolidated Foods
Corp./Hollywood Brands, Inc., 3.40%(1) ............................................. $ 5,500,000 $ 5,500,000
Chicago, Illinois General Obligation Nts., Series B, 3.65%, 10/31/96(2) ............... 25,600,000 25,600,000
Chicago, Illinois O'Hare International Airport Revenue Bonds, American Airlines
Project, Series B, 3.70%(1) ........................................................ 9,000,000 9,000,000
Elk Grove Village, Illinois Industrial Development Revenue Bonds, La Quinta Motor
Inns, Inc., 3.55%(1) ............................................................... 3,400,000 3,400,000
Illinois Development Finance Authority Revenue Bonds, Residential Brookdale
Project, 3.45%(1) .................................................................. 11,000,000 11,000,000
Illinois Educational Facilities Authority Revenue Bonds, National-Louis University,
3.35%(1) ........................................................................... 6,300,000 6,300,000
Illinois Educational Facilities Authority Revenue Bonds, University of Chicago,
Prerefunded, 7.10%, 12/1/96 ........................................................ 1,000,000 1,033,737
Illinois Health Facilities Authority Revenue Bonds, Lake Forest Hospital Project,
4.125%(1) .......................................................................... 13,000,000 13,000,000
Illinois Housing Development Authority Homeowner Mtg. Revenue Bonds, Subseries
C-1, 3.35%, 9/3/96(2) .............................................................. 4,500,000 4,500,000
Lakemoor Village, Illinois Multifamily Housing Mtg. Revenue Bonds, Lakemoor Apts.
Project, 3.90%, 9/1/96(2) .......................................................... 4,780,485 4,780,485
Lakemoor Village, Illinois Multifamily Housing Mtg. Revenue Bonds, Lakemoor Apts.
Project, 4.20%, 9/5/96(2) .......................................................... 15,000,000 15,000,000
Oakbrook Terrace, Illinois Multifamily Housing Mtg. Revenue Bonds, 4.25%, 11/1/96(2) .. 35,000,000 35,000,000
Oakbrook Terrace, Illinois Multifamily Housing Mtg. Revenue Bonds, Renaissance
Project, Series 1985 A, 4.45%, 11/1/96(2) .......................................... 14,000,000 14,000,000
West Chicago, Illinois Industrial Development Revenue Refunding Bonds, Liquid
Container Project, 3.55%(1) ........................................................ 3,810,000 3,810,000
------------
151,924,222
------------
INDIANA - 2.7%
Crawfordsville, Indiana Economic Development Revenue Refunding Bonds, Pedcor
Investments-Shady Knoll I Apts. Project, 3.50%(1) .................................. 3,450,000 3,450,000
Gary, Indiana Industrial Environmental Improvement Revenue Bonds, U.S. Steel Corp.
Project, 3.70%(1) .................................................................. 1,000,000 1,000,000
Hobart, Indiana Economic Development Revenue Refunding Bonds, MMM Invest, Inc.
Project, 3.40%(1) .................................................................. 2,010,000 2,010,000
Indiana Health Facilities Finance Authority Revenue Bonds, Cardinal Center Project,
3.60%(1) ........................................................................... 1,860,000 1,860,000
Indiana State Development Finance Authority Economic Development Revenue Bonds,
Saroyan Hardwoods, Inc., 3.55%(1) .................................................. 2,150,000 2,150,000
Indianapolis, Indiana Local Public Improvement Bond Bank Nts., Series E,
4.50%, 7/11/96 ..................................................................... 2,725,000 2,725,584
</TABLE>
7
<PAGE> 9
STATEMENT OF INVESTMENTS June 30, 1996(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
INDIANA (CONTINUED)
Marion County, Indiana Hospital Authority Hospital Facility Revenue Bonds,
Indianapolis Osteopathic, 3.60%(1) ................................................ $ 3,715,000 $ 3,715,000
Rockport, Indiana Pollution Control Revenue Refunding Bonds, Indiana & Michigan
Electric Co. Project, Series A, 3.15%(1) .......................................... 13,000,000 13,000,000
St. Joseph County, Indiana Hospital Authority Special Obligation Bonds, Madison
Center, Inc. Project, 3.60%(1) .................................................... 7,020,000 7,020,000
St. Joseph County, Indiana Industrial Educational Facilities Revenue Bonds, Holy Cross
College, 3.60%(1) ................................................................. 1,375,000 1,375,000
-----------
38,305,584
-----------
IOWA - 0.8%
Des Moines, Iowa Commercial Development Revenue Bonds, Series A, 3.45%(1) ............ 6,900,000 6,900,000
Mason City, Iowa Industrial Development Revenue Bonds, SuperValu Stores, Inc.
Project, 3.45%(1) ................................................................. 4,900,000 4,900,000
-----------
11,800,000
-----------
KANSAS - 1.0%
Kansas City, Kansas Private Activity Revenue Refunding Bonds, Inland Container Corp.,
3.55%(1)........................................................................... 5,200,000 5,200,000
Mission, Kansas Multifamily Revenue Bonds, Woodland Village Housing Project,
3.35%(1)........................................................................... 5,900,000 5,900,000
Olathe, Kansas Industrial Revenue Refunding Bonds, William F. Bieber Project, 3.80%(1) 1,800,000 1,800,000
Ottawa, Kansas Industrial Development Revenue Bonds, Laich Industries Project,
3.75%(1)........................................................................... 750,000 750,000
-----------
13,650,000
-----------
KENTUCKY - 0.5%
Jamestown, Kentucky Industrial Building Revenue Bonds, Union Underwear Co.,
3.50%(1) .......................................................................... 1,000,000 1,000,000
Trimble County Kentucky Pollution Control Revenue Bonds, Louisville Gas & Electric
Co. Project, Series A, 3.60%, 10/1/96(2) .......................................... 5,900,000 5,900,000
-----------
6,900,000
-----------
LOUISIANA - 2.3%
East Baton Rouge Parish, Louisiana Industrial Development Board Revenue Refunding
Bonds, La Quinta Motor Inns, Inc., 3.40%(1) ....................................... 2,325,000 2,325,000
Lake Charles, Louisiana Harbor & Terminal District Revenue Bonds, Reynolds Metal
Co. Project, 3.40%(1) ............................................................. 7,000,000 7,000,000
Lake Charles, Louisiana Harbor & Terminal District Revenue Bonds, Reynolds Metal
Co. Project, 3.80%, 12/1/96(2) .................................................... 4,085,000 4,085,804
</TABLE>
8
<PAGE> 10
STATEMENT OF INVESTMENTS June 30, 1996(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- ----------
<S> <C> <C>
LOUISIANA (CONTINUED)
Louisiana School Health Care Facilities Revenue Bonds, Sisters of Charity, 3.60%,
8/13/96(2) ...................................................................... $ 2,700,000 $ 2,700,000
Plaquemines, Louisiana Port Harbor & Terminal District Facilities Revenue Bonds,
Chevron Pipeline Co., 3.90%, 9/1/96(2) .......................................... 2,500,000 2,500,590
St. Charles Parish, Louisiana Industrial Development Revenue Bonds, 3.40%, 7/1/96(2) 14,000,000 14,000,000
-----------
32,611,394
-----------
MARYLAND - 3.4%
Hartford County, Maryland Revenue Refunding Bonds, 1001 Participation Facility
Project, 3.65%(1) ............................................................... 2,700,000 2,700,000
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds,
Carroll General Pooled Loan Program, Series A, 3.35%(1) ......................... 1,375,000 1,375,000
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds,
University of Maryland Pooled Loan Program, Series B, 3.65%(1) .................. 1,220,000 1,220,000
Montgomery County, Maryland Multifamily Housing Opportunities Commission
Revenue Bonds, Grosvenor House Project, Series A, 3.65%(1) ...................... 19,700,000 19,700,000
Montgomery County, Maryland Multifamily Housing Opportunities Commission
Revenue Bonds, Issue A, 3.50%(1) ................................................ 15,800,000 15,800,000
Worcester County, Maryland Revenue Refunding Bonds, White Marlin Mall Project,
3.55%(1) ........................................................................ 8,050,000 8,050,000
-----------
48,845,000
-----------
MASSACHUSETTS - 1.1%
Massachusetts State Commonwealth General Obligation Bonds, Series C, 3.49%(1) ...... 15,400,000 15,400,000
Massachusetts State Industrial Finance Agency Revenue Bonds, Hazen Paper, 3.55%(1) . 250,000 250,000
North Andover Town, Massachusetts Industrial Revenue Bonds, Atlee-Oak Realty Trust
of Delaware, Inc., 4.21%(1) ..................................................... 350,000 350,000
-----------
16,000,000
-----------
MICHIGAN - 0.9%
Madison Heights, Michigan Economic Development Revenue Bonds, Red Roof Inns
Project, 3.70%(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
Michigan State Underground Storage Tank Financial Assurance Authority Revenue
Refunding Bonds, Series I, 3.45%, 8/15/96(2) .................................... 10,000,000 10,000,000
-----------
12,900,000
-----------
MINNESOTA - 4.7%
Anoka, Minnesota Multifamily Housing Revenue Bonds, Walker Plaza, Series B, 3.45%(1) 1,850,000 1,850,000
Austin, Minnesota Industrial Development Revenue Refunding Bonds, SuperValu
Stores, Inc. Project, 3.45%(1) .................................................. 4,600,000 4,600,000
</TABLE>
9
<PAGE> 11
STATEMENT OF INVESTMENTS June 30, 1996(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- -----------
<S> <C> <C>
MINNESOTA (CONTINUED)
Blaine, Minnesota Industrial Development Revenue Refunding Bonds, SuperValu
Stores, Inc. Project, 3.45%(1) ................................................... $ 4,700,000 $ 4,700,000
Bloomington, Minnesota Port Authority Tax Revenue Refunding Bonds, Mall of
America Project, Series C, FSA Insured, 3.45%(1) ................................. 8,700,000 8,700,000
Burnsville, Minnesota Commercial Development Revenue Bonds, SuperValu Stores,
Inc. Project, Series 83, 3.85%(1) ................................................ 5,500,000 5,500,000
Dakota County, Minnesota Housing & Redevelopment Multifamily Mtg. Revenue
Bonds, Westwood Ridge Rental Housing Project, Series A, 3.45%(1) ................. 4,200,000 4,200,000
Eden Prairie, Minnesota Commercial Development Revenue Refunding Bonds,
Lakeview Business Center, 3.45%(1) ............................................... 2,595,000 2,595,000
Eden Prairie, Minnesota Industrial Development Revenue Bonds, SuperValu Stores,
Inc. Project, 3.45%(1) ........................................................... 1,000,000 1,000,000
Maplewood, Minnesota Revenue Bonds, 5.115%(1) ....................................... 885,000 885,000
Minneapolis, Minnesota Commercial Development Revenue Refunding Bonds,
Minnehaha/Lake Partners Project, 3.45%(1) ........................................ 2,750,000 2,750,000
Minneapolis, Minnesota Community Development Agency Revenue Refunding Bonds,
Heart Institute Foundation Project, 3.45%(1) ..................................... 3,000,000 3,000,000
Minnesota State Housing Finance Agency Single Family Mtg. Bonds, Series M, 3.50%,
12/12/96(2) ...................................................................... 2,500,000 2,500,000
New Ulm, Minnesota Hospital Facilities Revenue Bonds, Health Center Systems, 3.55%(1) 2,400,000 2,400,000
North Suburban Hospital District, Minnesota Revenue Bonds, Anoka & Ramsey
Counties Hospital Health Center, 3.55%(1) ........................................ 3,300,000 3,300,000
St. Paul, Minnesota Port Authority Parking Revenue Refunding Bonds, City Walking
Ramp Project, 3.45%(1) ........................................................... 2,410,000 2,410,000
St. Paul, Minnesota Port Authority Tax Increment Revenue Bonds, Westgate Office &
Industrial Center Project, 3.45%(1) .............................................. 5,500,000 5,500,000
Stillwater, Minnesota Industrial Development Revenue Refunding Bonds, SuperValu
Stores, Inc. Project, 3.45%(1) ................................................... 5,500,000 5,500,000
University of Minnesota Revenue Bonds, Series G, 3.25%, 8/1/96(2) ................... 2,100,000 2,100,000
Waite Park, Minnesota Housing Revenue Refunding Bonds, Park Meadows Apts
Project, 3.45%(1) ................................................................ 3,270,000 3,270,000
-----------
66,760,000
-----------
MISSOURI - 0.9%
St. Charles County, Missouri Industrial Development Revenue Refunding Bonds,
Remington Apts. Project, 3.70%(1) ................................................ 12,700,000 12,700,000
MONTANA - 0.1%
Great Falls, Montana Industrial Development Revenue Refunding Bonds, SuperValu
Stores, Inc. Project, 3.45%(1) ................................................... 1,000,000 1,000,000
</TABLE>
10
<PAGE> 12
STATEMENT OF INVESTMENTS June 30, 1996(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
-------- -----------
<S> <C> <C>
NEBRASKA - 0.9%
Nebraska Investment Finance Authority Single Family Mtg. Revenue Refunding Bonds,
Series B, FGIC Insured, 3.35%, 7/15/96(2) ......................................... $ 9,555,000 $ 9,555,000
Norfolk, Nebraska Industrial Development Revenue Refunding Bonds, SuperValu
Stores, Inc. Project, 3.45%(1) .................................................... 2,800,000 2,800,000
-----------
12,355,000
-----------
NEW JERSEY - 0.2%
New Jersey Economic Development Authority Manufacturing Facilities Revenue
Bonds, VPR Commerce Center Project, 3.70%(1) ...................................... 3,350,000 3,350,000
NEW YORK - 1.8%
Babylon, New York General Obligation Bonds, Series B, AMBAC Insured, 3.10%(1) ........ 1,300,000 1,300,000
City of New York Housing Development Corp. Multifamily Mtg. Revenue Bonds,
Columbus Project, Series A, 3.10%(1) .............................................. 1,000,000 1,000,000
City of New York Housing Development Corp. Multifamily Mtg. Revenue Bonds, James
Tower Development, Series A, 3.20%(1) ............................................. 3,000,000 3,000,000
City of New York Trust Cultural Resources Revenue Refunding Bonds, American
Museum of Natural History, Series A, MBIA Insured, 3.10%(1) ....................... 1,900,000 1,900,000
City of New York Trust Cultural Resources Revenue Refunding Bonds, American
Museum of Natural History, Series B, MBIA Insured, 3.10%(1) ....................... 1,000,000 1,000,000
City of New York Water Finance Authority Revenue Bonds, 3.65%, 8/1/96(2) ............. 1,100,000 1,100,018
Dormitory Authority of the State of New York Revenue Bonds, Memorial Sloan
Kettering Cancer Center Project, Series D, 3.40%, 8/7/96(2) ....................... 495,000 495,000
Franklin County, New York Industrial Development Agency Revenue Refunding Bonds,
McAdam Cheese Co. Project, 3.40%(1) ............................................... 800,000 800,000
New York State Energy Research & Development Authority Electric Facilities Revenue
Bonds, Long Island Lighting Co., Series B, 3.05%(1) ............................... 1,400,000 1,400,000
New York State Energy Research & Development Authority Pollution Control Revenue
Refunding Bonds, Orange/Rockland Utility Project, Series A, AMBAC Insured, 3.10%(1) 2,000,000 2,000,000
New York State Energy Research & Development Authority Pollution Control Revenue
Refunding Bonds, Orange/Rockland Utility Project, Series A, FGIC Insured, 3.10%(1) 3,500,000 3,500,000
New York State Housing Finance Agency Revenue Bonds, Normandie Court I Project,
3.05%(1)........................................................................... 200,000 200,000
New York State Local Government Assistance Corp. Revenue Bonds, Series A, 3.10%(1) ... 1,300,000 1,300,000
New York State Medical Care Facilities Finance Agency Revenue Bonds, Lenox Hill
Hospital Project, Series A, 3.30%(1) .............................................. 4,900,000 4,900,000
New York State Medical Care Facilities Finance Agency Revenue Bonds, Pooled
Equipment Loan Program II-A, 3.20%(1) ............................................. 1,000,000 1,000,000
New York State Power Authority Revenue and General Purpose Bonds, 3.75%, 9/10/96(2) .. 100,000 100,060
</TABLE>
11
<PAGE> 13
STATEMENT OF INVESTMENTS June 30, 1996 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- -----------
<S> <C> <C>
NEW YORK (CONTINUED)
North Hempstead, New York Solid Waste Management Authority Revenue Refunding
Bonds, Series A, 3.05%(1) .......................................................... $ 100,000 $ 100,000
Triborough Bridge & Tunnel Authority of New York Revenue Bonds, FGIC Insured, 3.05%(1) 400,000 400,000
-----------
25,495,078
-----------
NORTH CAROLINA - 0.7%
North Carolina National Bank Pooled Tax-Exempt Trust Certificates of Participation,
Series 1990A, 4.125%(1) ............................................................ 6,530,000 6,530,000
North Carolina National Bank Pooled Tax-Exempt Trust Certificates of Participation,
Series 1990B, 4.125%(1) ............................................................ 4,030,000 4,030,000
-----------
10,560,000
-----------
NORTH DAKOTA - 0.2%
Bismarck, North Dakota Industrial Development Revenue Refunding Bonds, SuperValu
Stores, Inc. Project, 3.85%(1) ..................................................... 800,000 800,000
Bismarck, North Dakota Industrial Development Revenue Refunding Bonds, SuperValu
Stores, Inc. Project, 3.85%(1) ..................................................... 1,500,000 1,500,000
-----------
2,300,000
-----------
OHIO - 5.1%
Cuyahoga County, Ohio Industrial Development Revenue Bonds, Southwest LP, 4.15%,
12/1/96(2) ......................................................................... 2,045,000 2,045,000
Gallia County, Ohio Industrial Development Mtg. Revenue Refunding Bonds, Jackson
Pike Assn., 3.60%, 12/15/96(2) ..................................................... 4,255,000 4,255,000
Greene County, Ohio Industrial Development Revenue Refunding Bonds, SuperValu
Holdings, Inc. Project, 3.85%(1) ................................................... 1,000,000 1,000,000
Lucas County, Ohio Industrial Development Revenue Refunding Bonds, H.H. Motel, Inc.
Project, 3.40%(1) .................................................................. 3,600,000 3,600,000
Marion County, Ohio Hospital Revenue Bonds, Pooled Lease Program, 3.40%(1) ........... 6,760,000 6,760,000
Marion County, Ohio Hospital Revenue Bonds, Pooled Lease Program, 3.40%(1) ........... 6,810,000 6,810,000
Merchant & Mechanics Tax-Exempt Mtg. Bond Trust Revenue Bonds, 3.20%, 9/1/96(2) ...... 1,000,000 1,000,000
Miami Valley, Ohio Tax-Exempt Mtg. Trust Revenue Bonds, Series 86, 4.88%,
10/15/96(2) ........................................................................ 2,780,000 2,780,000
Ohio State Air Quality Development Authority Pollution Control Revenue Refunding
Bonds, Series B, 3.85%, 7/11/96(2) ................................................. 4,655,000 4,655,000
Ohio State Water Development Authority Pollution Control Facilities Revenue
Refunding Bonds, Duquesne Light Co., Series A, 3.85%, 7/11/96(2) ................... 33,955,000 33,955,000
Scioto County, Ohio Health Care Facilities Revenue Bonds, Hill View Retirement
Center, 3.65%, 12/1/96(2) .......................................................... 2,890,000 2,890,000
Warren County, Ohio Industrial Development Revenue Refunding Bonds, Liquid
Container Project, 3.55%(1) ........................................................ 1,670,000 1,670,000
Whitehall, Ohio Industrial Development Revenue Refunding Bonds, First Mtg
Continental Commercial, 3.40%, 8/1/96(2) ........................................... 1,490,000 1,490,000
-----------
72,910,000
-----------
</TABLE>
12
<PAGE> 14
STATEMENT OF INVESTMENTS June 30, 1996 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- -----------
<S> <C> <C>
OKLAHOMA - 0.8%
Claremore, Oklahoma Industrial & Redevelopment Authority Revenue Refunding
Bonds, Worthington Cylinder Project, 3.40%(1) ................................... $ 2,335,000 $ 2,335,000
Cleveland County, Oklahoma Public Facilities Revenue Bonds, Hunt Development
Project, Series A, 3.60%(1) ..................................................... 1,000,000 1,000,000
Mid-West Tax-Exempt Mtg. Board Trust Revenue Bonds, 3.55%(1) ...................... 915,000 915,000
Tulsa, Oklahoma Industrial Authority Revenue Bonds, 3.60%(1) ...................... 6,500,000 6,500,000
-----------
10,750,000
-----------
OREGON - 0.7%
Hillsboro, Oregon Revenue Bonds, Oregon Graduate Institute, 3.45%(1) .............. 6,700,000 6,700,000
Oregon State Economic & Industrial Development Commission Revenue Bonds,
Eagel-Picher Industries Project, 4.10%(1) ....................................... 3,600,000 3,600,000
-----------
10,300,000
-----------
PENNSYLVANIA - 1.6%
Commonwealth of Pennsylvania Tax-Exempt Mtg. Bond Trust Certificates, Series A,
3.85% , 11/1/96(2) .............................................................. 3,015,000 3,015,000
Delaware County, Pennsylvania Industrial Development Authority Pollution Control
Revenue Refunding Bonds, Philadelphia Electric Project, Series C, FGIC Insured,
3.60%, 8/22/96(2) ............................................................... 14,500,000 14,500,000
Littlestown, Pennsylvania Industrial Development Authority Revenue Refunding Bonds,
Hanover House Industries Project, 3.35%(1) ...................................... 3,000,000 3,000,000
Montgomery County, Pennsylvania Higher Education & Health Authority Hospital
Revenue Bonds, 3.30%(1) ......................................................... 500,000 500,000
Montgomery County, Pennsylvania Industrial Development Authority Revenue Bonds,
Quaker Chemical Corp. Project, 3.80%(1) ......................................... 1,600,000 1,600,000
-----------
22,615,000
-----------
SOUTH CAROLINA - 4.6%
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 2, 3.70%, 11/1/96(2) ........ 4,407,500 4,407,500
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 3, 3.90%, 7/1/96(2) ......... 9,452,500 9,452,500
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 6, 3.50%, 10/1/96(2) ........ 8,075,000 8,075,000
Dorchester County, South Carolina Pollution Control Facilities Revenue Refunding
Bonds, The BOC Group, Inc. Project, 3.40%(1) .................................... 3,500,000 3,500,000
South Carolina Jobs & Economic Development Authority Revenue Bonds, Wellman
Income Project, 3.55%(1) ........................................................ 1,000,000 1,000,000
South Carolina State Public Service Authority Revenue Bonds, 3.40%, 7/26/96(2)..... 24,695,000 24,695,000
South Carolina State Public Service Authority Revenue Bonds, Series 182, MBIA
Insured, 3.44%(1) ............................................................... 15,000,000 15,000,000
-----------
66,130,000
-----------
</TABLE>
13
<PAGE> 15
STATEMENT OF INVESTMENTS June 30, 1996 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- -----------
<S> <C> <C>
SOUTH DAKOTA - 2.4%
Grant County, South Dakota Pollution Control Revenue Refunding Bonds, Otter Tail
Power Co. Project, 3.45%(1) ...................................................... $10,400,000 $10,400,000
South Dakota State Health & Educational Bonds, Sioux Valley Hospital Issue, 3.45%(1) 20,100,000 20,100,000
Watertown, South Dakota Industrial Development Revenue Bonds, SuperValu Stores,
Inc. Project, 3.85%(1) ........................................................... 3,900,000 3,900,000
-----------
34,400,000
-----------
TENNESSEE - 2.0%
Clarksville, Tennessee Public Building Authority Revenue Bonds, Pooled Financing-
Tennessee Municipal Bond Fund, 3.35%(1) .......................................... 11,100,000 11,100,000
Covington, Tennessee Industrial Development Board Revenue Bonds, Charms Co.
Project, 3.45%(1) ................................................................ 4,100,000 4,100,000
Dayton, Tennessee Industrial Development Board Revenue Refunding Bonds, La-Z Boy
Chair Co. Project, 3.40%(1) ...................................................... 4,350,000 4,350,000
Knox County, Tennessee Industrial Development Board Revenue Bonds, Weisgarber
Partners, FGIC Insured, 3.60%(1) ................................................. 3,000,000 3,000,000
Metropolitan Government of Nashville & Davidson County, Tennessee Health &
Educational Facilities Board Revenue Bonds, Vanderbilt University Project,
Series 1985A, 3.50%, 1/15/97(2) .................................................. 1,000,000 1,000,000
Metropolitan Government of Nashville & Davidson County, Tennessee Health &
Educational Facilities Board Revenue Bonds, Vanderbilt University Project,
Series 1985A, 3.50%, 1/15/97(2) .................................................. 700,000 700,000
Metropolitan Government of Nashville & Davidson County, Tennessee Multifamily
Housing Revenue Bonds, Arbor Crest Project, Series B, 3.40%(1) ................... 3,550,000 3,550,000
Rutherford County, Tennessee Industrial Development Board Industrial Building
Revenue Bonds, Derby Industries, Inc. Project, 3.55%(1) .......................... 1,435,000 1,435,000
-----------
29,235,000
-----------
TEXAS - 8.9%
Angelina & Neches River Authority of Texas Pollution Control Revenue Refunding
Bonds, Temple-Inland Forest Project, 3.55%(1) .................................... 7,350,000 7,350,000
Gulf Coast Industrial Development Authority of Texas Marine Terminal Revenue
Bonds, Amoco Oil Co. Project, 3.60%, 12/1/96(2) .................................. 3,000,000 3,000,000
Harris County, Texas Custodial Receipts, Series A, 3.45%(1) ........................ 5,000,000 5,000,000
Hockley County, Texas Industrial Development Corp. Pollution Control Revenue Bonds,
Amoco Project-Standard Oil Co., 3.30%, 9/1/96(2) ................................. 20,000,000 20,000,000
North Central Texas Health Facility Development Corp. Hospital Revenue Bonds,
Baylor Health Project, Series B, 3.60%, 9/10/96(2) ............................... 50,000,000 50,000,000
Plano, Texas Health Facilities Development Corp. Hospital Revenue Bonds, Children's
Hospital & Presbyterian Health Care Center, 3.60%, 7/30/96(2) .................... 5,000,000 5,000,000
</TABLE>
14
<PAGE> 16
STATEMENT OF INVESTMENTS June 30, 1996 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
TEXAS (CONTINUED)
Texas Association of School Boards Certificates of Participation, Series A, 4.75%,
8/30/96 ......................................................................... $31,700,000 $ 31,735,065
Travis County, Texas Housing Finance Corp. Multifamily Housing Revenue Bonds, Bent
Oaks Apts., 3.50%(1) ............................................................ 4,400,000 4,400,000
------------
126,485,065
------------
UTAH - 1.0%
Salt Lake County, Utah Pollution Control Revenue Refunding Bonds, Service Station
Holdings BP Oil Co. Project, 3.60%(1) ........................................... 5,200,000 5,200,000
Utah State Housing Finance Agency Multifamily Housing Revenue Refunding Bonds,
Candlestick Apts. Project, 3.35%(1) ............................................. 6,400,000 6,400,000
Weber County, Utah Industrial Development Revenue Refunding Bonds, Parker
Properties, Inc. Project, 3.40%(1) .............................................. 2,600,000 2,600,000
------------
14,200,000
------------
VERMONT - 0.1%
Vermont Industrial Development Authority Revenue Bonds, Sherburne Corp., 4.21%(1) . 1,885,000 1,885,000
VIRGINIA - 0.4%
Arlington County, Virginia Revenue Bonds, Ballston Public Parking Project, 3.35%(1) 5,900,000 5,900,000
WASHINGTON - 4.9%
Port Longview, Washington Industrial Development Revenue Bonds, Longview Fibre
Co. Project, 3.45%(1) ........................................................... 5,000,000 5,000,000
Redmond, Washington Public Corp. Industrial Revenue Refunding Bonds, Genie
Industries, Lot 1, 3.50%(1) ..................................................... 1,100,000 1,100,000
Redmond, Washington Public Corp. Industrial Revenue Refunding Bonds, Genie
Industries, Lot 2, 3.50%(1) ..................................................... 1,770,000 1,770,000
Seattle, Washington Industrial Development Corp. Revenue Bonds, RICS LP, 3.60%(1) . 5,350,000 5,350,000
Seattle, Washington Municipal Light & Power Revenue Bonds, Prerefunded,
5.875%, 10/1/96 ................................................................. 1,800,000 1,810,061
Washington State General Obligation Bonds, Series 1996-A, 3.40%(1) ................ 41,100,000 41,100,000
Washington State General Obligation Refunding Bonds, Series 1995C, 3.44%(1) ....... 13,850,000 13,850,000
------------
69,980,061
------------
WEST VIRGINIA - 1.8%
Beckley, West Virginia Revenue Anticipation Nts., Series A, 3.40%(1) .............. 1,500,000 1,500,000
Grant County, West Virginia Pollution Control Revenue Bonds, Virginia Electric &
Power Co. Project, Series 1994, 3.60%, 9/9/96(2) ................................ 19,500,000 19,500,000
Harrison County, West Virginia Industrial Development Revenue Refunding Bonds, Fox
Grocery Co. Project, 3.55%(1) ................................................... 4,140,000 4,140,000
------------
25,140,000
------------
</TABLE>
15
<PAGE> 17
STATEMENT OF INVESTMENTS June 30, 1996 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ---------------
<S> <C> <C>
WISCONSIN - 0.7%
Wisconsin Housing & Economic Development Authority Home Ownership Revenue
Refunding Bonds, Series A, 3.30%, 9/1/96(2) .................................. $ 5,490,000 $ 5,490,000
Wisconsin Housing & Economic Development Authority Home Ownership Revenue
Refunding Bonds, Series A, 3.35%, 9/1/96(2) .................................. 4,715,000 4,715,000
---------------
10,205,000
---------------
WYOMING - 0.2%
Uinta County, Wyoming Pollution Control Revenue Bonds, AMOCO Standard Oil Co. of
Indiana Project, 3.98%, 12/1/96(2) ........................................... 3,000,000 3,002,646
---------------
DISTRICT OF COLUMBIA - 0.6%
District of Columbia General Obligation Bonds, Series A-1, 3.80%(1) ............ 3,100,000 3,100,000
District of Columbia General Obligation Bonds, Series A-3, 3.80%(1) ............ 4,800,000 4,800,000
---------------
7,900,000
---------------
Total Investments, at Value .................................................... 100.2% 1,428,300,480
Liabilities in Excess of Other Assets .......................................... (0.2) (2,306,506)
---------- ---------------
Net Assets ..................................................................... 100.0% $ 1,425,993,974
========== ===============
</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 June
30, 1996. This instrument may also have a demand feature which allows the
recovery of principal at any time, or at specified intervals not exceeding
one year, on up to 30 days' notice.
2. Put obligation redeemable at full face value on the date reported.
See accompanying Notes to Financial Statements.
16
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES June 30, 1996
Centennial Tax Exempt Trust
<TABLE>
<S> <C>
ASSETS
Investments, at value - see accompanying statement ........... $1,428,300,480
Cash ......................................................... 2,263,510
Receivables:
Interest .................................................... 8,687,982
Shares of beneficial interest sold .......................... 6,954,419
Other ....................................................... 91,152
--------------
Total assets ............................................... 1,446,297,543
--------------
LIABILITIES
Payables and other liabilities:
Shares of beneficial interest redeemed ...................... 18,789,395
Dividends ................................................... 1,141,663
Service plan fees ........................................... 98,402
Transfer and shareholder servicing agent fees ............... 44,709
Other ....................................................... 229,400
--------------
Total liabilities .......................................... 20,303,569
--------------
NET ASSETS ................................................... $1,425,993,974
==============
COMPOSITION OF NET ASSETS
Paid-in capital .............................................. $1,425,759,204
Accumulated net realized gain on investment transactions ..... 234,770
--------------
NET ASSETS - applicable to 1,425,775,172 shares of beneficial
interest outstanding ....................................... $1,425,993,974
==============
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $ 1.00
</TABLE>
See accompanying Notes to Financial Statements.
17
<PAGE> 19
STATEMENT OF OPERATIONS For the Year Ended June 30, 1996
Centennial Tax Exempt Trust
<TABLE>
<S> <C>
INVESTMENT INCOME -- Interest ........................ $56,570,903
-----------
EXPENSES
Management fees - Note 3 ............................. 6,380,737
Service plan fees - Note 3 ........................... 2,929,180
Transfer and shareholder servicing agent fees - Note 3 680,208
Registration and filing fees ......................... 197,697
Custodian fees and expenses .......................... 163,122
Shareholder reports .................................. 130,621
Legal and auditing fees .............................. 38,030
Trustees' fees and expenses .......................... 17,899
Insurance expenses ................................... 17,708
Other ................................................ 1,850
-----------
Total expenses ...................................... 10,557,052
-----------
NET INVESTMENT INCOME ................................ 46,013,851
NET REALIZED GAIN ON INVESTMENTS ..................... 244,254
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . $46,258,105
===========
</TABLE>
==============================================================================
STATEMENT OF CHANGES IN NET ASSETS
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Year Ended June 30,
1996 1995
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income ....................................... $ 46,013,851 $ 35,272,785
Net realized gain ........................................... 244,254 69,768
--------------- ---------------
Net increase in net assets resulting from operations ........ 46,258,105 35,342,553
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS ................. (46,061,715) (35,284,282)
BENEFICIAL INTEREST TRANSACTIONS:
Net increase in net assets resulting from beneficial interest
transactions - Note 2 ..................................... 110,876,607 275,476,883
--------------- ---------------
NET ASSETS
Total increase .............................................. 111,072,997 275,535,154
Beginning of period ......................................... 1,314,920,977 1,039,385,823
--------------- ---------------
End of period ............................................... $ 1,425,993,974 $ 1,314,920,977
=============== ===============
</TABLE>
See accompanying Notes to Financial Statements
18
<PAGE> 20
FINANCIAL HIGHLIGHTS
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Year Ended June 30,
-----------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <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
Income from investment operations - net
investment income and net realized gain
on investments........................... .03 .03 .02 .02 .03
Dividends and distributions to
shareholders............................. (.03) (.03) (.02) (.02) (.03)
------ ------ ------ ------ -----
Net asset value, end of period............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00
====== ====== ====== ====== =====
TOTAL RETURN, AT NET ASSET VALUE(1)........ 3.16% 3.17% 1.90% 2.19% 3.55%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions).... $1,426 $1,315 $1,039 $ 981 $ 917
Average net assets (in millions) $1,473 $1,127 $1,057 $ 977 $ 900
Ratios to average net assets:
Net investment income.................... 3.12% 3.13% 1.87% 2.08% 3.40%
Expenses................................. 0.72% 0.73% 0.76% 0.76% 0.75%
</TABLE>
1. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Total returns are
not annualized for periods of less than one full year. Total returns reflect
changes in net investment income only.
See accompanying Notes to Financial Statements.
19
<PAGE> 21
NOTES TO FINANCIAL STATEMENTS
Centennial Tax Exempt Trust
1. SIGNIFICANT ACCOUNTING POLICIES
Centennial Tax Exempt Trust (the Trust) is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust's investment objective is to seek the maximum
short-term interest income exempt from federal income taxes that is consistent
with low capital risk and the maintenance of liquidity. The Trust's investment
advisor is Centennial Asset Management Corporation (the Manager), a subsidiary
of OppenheimerFunds, Inc. (OFI). The following is a summary of significant
accounting policies consistently followed by the Trust.
Investment Valuation - Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
Federal Taxes - The Trust intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders. Therefore, no federal
income or excise tax provision is required.
Distributions to Shareholders - The Trust intends to declare dividends from net
investment income each day the New York Stock Exchange is open for business and
pay such dividends monthly. To effect its policy of maintaining a net asset
value of $1.00 per share, the Trust may withhold dividends or make distributions
of net realized gains.
Other - Investment transactions are accounted for on the date the investments
are purchased or sold (trade date). Realized gains and losses on investments are
determined on an identified cost basis, which is the same basis used for federal
income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
2. SHARES OF BENEFICIAL INTEREST
The Trust has authorized an unlimited number of no par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Year Ended June 30,1996 Year Ended June 30, 1995
--------------------------------------------------------------------
Shares Amount Shares Amount
-------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Sold 4,357,729,565 $4,357,729,549 3,745,799,353 $3,745,799,210
Dividends and distributions
reinvested................. 45,904,203 45,904,203 33,490,524 33,490,524
Issued in connection with the
acquisition of Oppenheimer
Tax-Exempt Cash Reserves -
Note 4..................... - - 31,152,605 31,152,738
Redeemed..................... (4,292,757,161) (4,292,757,145) (3,534,964,703) (3,534,965,589)
-------------- -------------- -------------- --------------
Net increase............... 110,876,607 $ 110,876,607 275,477,779 $ 275,476,883
============== ============== ============== ==============
</TABLE>
20
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS (Continued)
Centennial Tax Exempt Trust
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Trust which provides for a fee of 0.50% on the first
$250 million of average annual net assets with a reduction of 0.025% on each
$250 million thereafter to $1.5 billion, 0.35% on the next $500 million of net
assets and 0.325% 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 OFI, is the transfer and
shareholder servicing agent for the Trust, and for other registered investment
companies. SSI's total costs of providing such services are allocated ratably to
these companies.
Under an approved service plan, the Trust may expend up to 0.20% of its net
assets annually to reimburse 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 year ended June
30,1996, the Trust paid $11,258 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.
21
<PAGE> 23
INDEPENDENT AUDITORS' REPORT
Centennial Tax Exempt Trust
The Board of Trustees and Shareholders of Centennial Tax Exempt Trust:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Centennial Tax Exempt Trust as of June 30,
1996, the related statement of operations for the year then ended, the
statements of changes in net assets for the years ended June 30, 1996 and 1995,
and the financial highlights for the period July 1, 1991 to June 30, 1996. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at June 30,
1996 by correspondence with the custodian and brokers; where replies were not
received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Centennial Tax
Exempt Trust at June 30, 1996, the results of its operations, the changes in its
net assets, and the financial highlights for the respective stated periods, in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
July 22, 1996
22
<PAGE> 24
FEDERAL INCOME TAX INFORMATION (Unaudited)
Centennial Tax Exempt Trust
In early 1997, shareholders will receive information regarding all dividends and
distributions paid to them by the Trust during calendar year 1996. Regulations
of the U.S. Treasury Department require the Trust to report this information to
the Internal Revenue Service.
None of the dividends paid by the Trust during the fiscal year ended June 30,
1996 are eligible for the corporate dividend-received deduction. The dividends
were derived from interest on municipal bonds and are not subject to federal
income tax. To the extent a shareholder is subject to any state or local tax
laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Trust to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
23
<PAGE> 25
CENTENNIAL TAX EXEMPT TRUST
Officers and Trustees
James C. Swain, Chairman and Chief Executive Officer
Bridget A. Macaskill, Trustee and President
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
George C. Bowen, Vice President, Treasurer
and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Michael A. Carbuto, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
Investment Advisor and Distributor
Centennial Asset Management
Corporation
Transfer and Shareholder Servicing Agent
Shareholder Services, Inc.
Custodian of Portfolio Securities
Citibank, N.A.
Independent Auditors
Deloitte & Touche LLP
Legal Counsel
Myer, Swanson, Adams & Wolf, P.C.
This is a copy of a report to shareholders of Centennial Tax
Exempt Trust. This report must be preceded or accompanied by a
Prospectus of Centennial Tax Exempt Trust. For material
information concerning the Trust, see the Prospectus.
For shareholder servicing, call:
1-800-525-9310 (in U.S.)
303-671-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5143 Denver, CO 80217-5143
[LOGO]Printed on recycled paper.
