CENTENNIAL TAX EXEMPT TRUST
Supplement dated December 1, 1997 to the
Prospectus dated October 1, 1997
The Prospectus is changed as follows:
The first two paragraphs in the section entitled "Fees and Expenses" on pages
A-1 to A-2 are deleted and replaced with the following paragraphs:
o Fees and Expenses. The management fee is payable monthly to the Manager
under the terms of each Trust's Agreement and is computed on the average annual
net assets of the respective Trust as of the close of business each day. The
annual rates applicable to Money Market Trust are as follows: 0.500% of the
first $250 million of net assets; 0.475% of the next $250 million of net assets;
0.450% of the next $250 million of net assets; 0.425% of the next $250 million
of net assets; 0.400% of the next $250 million of net assets; 0.375% of the next
$250 million of net assets; 0.350% of the next $500 million of net assets; and
0.325% of net assets in excess of $2 billion. Furthermore, the Manager
guarantees that the total expenses of Money Market Trust in any fiscal year,
exclusive of taxes, interest and brokerage commissions, and extraordinary
expenses such as litigation costs, shall not exceed, and the Manager undertakes
to pay or refund to Money Market Trust any amount by which such expenses shall
exceed, the lesser of (i) 1.5% of the average annual net assets of Money Market
Trust up to $30 million and 1% of its average annual net assets in excess of $30
million; or (ii) 25% of total annual investment income of Money Market Trust.
The annual rates applicable to Government Trust are as follows: 0.50% of
the first $250 million of net assets; 0.475% of the next $250 million of net
assets; 0.45% of the next $250 million of net assets; 0.425% of the next $250
million of net assets; and 0.40% of net assets in excess of $1 billion.
The annual rates applicable to Tax Exempt Trust are as follows: 0.50% of
the first $250 million of net assets; 0.475% of the next $250 million of net
assets; 0.45% of the next $250 million of net assets; 0.425% of the next $250
million of net assets; 0.40% of the next $250 million of net assets; 0.375% of
the next $250 million of net assets; 0.35% of the next $500 million of net
assets and 0.325% of net assets in excess of $2 billion. Furthermore, under Tax
Exempt Trust's Agreement, when the value of Tax Exempt Trust's net assets is
less than $1.5 billion, the annual fee payable to the Manager shall be reduced
by $100,000 based on average net assets computed daily and paid monthly at the
annual rates, but in no event shall the annual fee be less than $0. See the
Statement of Additional Information for an explanation of the Manager's
reimbursement
Continued
<PAGE>
arrangement for the Trusts set forth in their Agreements. "Investment Management
Services" in the Statement of Additional Information contains more complete
information about the Agreements, including a discussion of expense
arrangements, and a description of the exculpation provisions and portfolio
transactions.
December 1, 1997 PS0160.002
<PAGE>
CENTENNIAL TAX EXEMPT TRUST
Supplement dated December 1, 1997 to the
Statement of Additional Information dated October 1, 1997
The Statement of Additional Information is changed by deleting the fifth
paragraph in the section entitled "Investment Management Services" on pages A-7
and replacing it with the following:
Independently of the Money Market Trust's Agreement, the Manager
voluntarily agreed to waive a portion of the management fee otherwise payable to
it by the Money Market Trust during the period from December 1, 1991 through
November 21, 1997. For fiscal year ended June 30, 1995, June 30, 1996 and June
30,1997, the reimbursements by the Manager to Money Market Trust were $0, $0 and
$4,890,123, respectively. Contemporaneously with the amendment of Money Market
Trust's Agreement with the Manager, the Manager withdrew its voluntary waiver on
November 21, 1997.
December 1, 1997 PX0160.001
