<PAGE> 1
1996 Semiannual Report
Centennial Tax Exempt Trust
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 Adviser 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.
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:
1-800-525-9310 (in U.S.)
303-671-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5143
Denver, CO 80217-5143
RS0160.0011296 [RECYCLE LOG0] Printed on recycled paper.
<PAGE> 2
Dear Shareholder:
The second half of 1996 was a period of uncertainty in the fixed income
markets, largely due to investor fears of rapid economic growth and
accelerating inflation. The 30-year Treasury rates rose above 7% in the second
quarter and remained relatively unchanged until the end of the third quarter.
That's when negative investor sentiment that led to the market downturn in June
and July began to subside.
The swing away from inflationary fears seemed complete in October with the
release of economic indicators showing a firm dollar, low inflation and slow
growth. When the Federal Reserve responded to these indicators with another
decision to leave rates alone, it appeared that concerns about rapid growth had
been overblown, and interest rates fell in response. The status quo outcome of
the presidential election also aided the decline in rates, and the bond market
experienced one of the most substantial post-election rallies in recent
history. With continued, sustainable non-inflationary growth of around 2% to
2.5%, and long-term rates at their lowest levels since April, the economy seems
to have settled into a comfortable path of neither too little nor too much
growth.
Centennial Tax Exempt Trust performed well due to our bullish outlook on
interest rates. In the early part of 1996, we believe that the Fed would be
hesitant to raise rates as long as inflation didn't accelerate wildly. In
response, we extended the portfolio's duration and took advantage of the higher
returns that usually accompany longer-duration bonds. Later in the summer, as
it became accepted among analysts that the Fed was probably less inclined to
raise rates, we began to be even more aggressive in lengthening the portfolio's
maturity.
In the second half of 1996, rates declined quite a bit so we backed away from
the longer maturities and monitored year-end activity. We expect that the
economy will continue to slowly decelerate.
The Trust had a compounded annualized yield of 2.99% for the six months ended
December 31, 1996. Without compounding, the corresponding yield was 2.95%. For
investors in the 36% federal tax bracket, this is equivalent to a taxable yield
for six months of 4.67% with compounding, and 4.61% without. The seven-day
annualized yields, with and without compounding for the six-month period ended
December 31, 1996 were 3.31% and 3.26%, respectively.(1)
<PAGE> 3
An investment in the Trust is neither insured nor guaranteed by the U.S.
government, and there is no assurance that the Trust will maintain a stable
$1.00 share price in the future.
Thank you for your confidence in Centennial Tax Exempt Trust. We look forward
to helping you reach your investment 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
January 22, 1997
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. Past performance
does not gaurantee future results.
<PAGE> 4
STATEMENT OF INVESTMENTS December 31, 1996 (Unaudited)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- -----------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS - 103.1%
ALABAMA - 0.9%
AL GORRB, 5.55%, 3/1/97(1) ................................................... $ 3,400,000 $ 3,409,972
Bessemer, AL ID RB, Big B, Inc. Project, Series A, 4.35%(2) .................. 2,100,000 2,100,000
Huntsville, AL FAU MH RRB, Series B, 4.05%(2) ................................ 7,000,000 7,000,000
Winfield City, AL ID RB, Union Underwear Co., 4.30%(2) ....................... 1,900,000 1,900,000
-----------
14,409,972
-----------
ARIZONA - 3.5%
AZ HFAU RB, Blood Systems, Inc., 4.20%(2) .................................... 8,000,000 8,000,000
Maricopa Cnty., AZ IDA RB, Grand Canyon University Project, 4.20%(2) ......... 5,200,000 5,200,000
Maricopa Cnty., AZ PC Corp. PC RRB, Arizona Public Service Co.
Project, Series D, 5.25%(2) ............................................... 3,500,000 3,500,000
Phoenix, AZ IDA MH RRB, Lynwood Apts. Project, 4.15%(2) ...................... 4,675,000 4,675,000
Phoenix, AZ IDA MH RRB, Paradise Lakes Apts. Project, 1995 Series, 4.35%(2) .. 22,500,000 22,500,000
Salt River, AZ Agriculture Improvement PAU RB, 3.70%, 1/14/97(1) ............. 9,431,000 9,431,000
Tucson, AZ IDA RB, Geronimo Building Renovation Project, 4%, 12/15/97(1) ..... 1,045,000 1,045,000
-----------
54,351,000
-----------
ARKANSAS - 0.0%
Subiaco, AR ID RB, Cloves Gear & Products, Inc., 4.40%(2) .................... 400,000 400,000
-----------
CALIFORNIA - 15.7%
Anaheim, CA HAU MH RB, Bel Page Project, Series A, 4%(2) ..................... 1,000,000 1,000,000
Anaheim, CA HAU MH RRB, Park Vista Apts., Series A, 4.25%(2) ................. 1,000,000 1,000,000
CA HEA Student Loan RB, Series C, 4.25%(2) ................................... 11,800,000 11,800,000
CA HEA Student Loan RRB, Series 1987A, 3.70%, 5/1/97(1) ...................... 13,750,000 13,750,000
CA HEA Student Loan RRB, Series 1992A-2, 3.70%, 5/1/97(1) .................... 14,000,000 14,000,000
CA HFFA RB, Catholic Healthcare Project, Series C, 4%(2) ..................... 2,000,000 2,000,000
CA HFFA RB, Pooled Loan Program, Series B, FGIC Insured, 4%(2) ............... 500,000 500,000
CA HFFA RB, Santa Barbara Cottage Project, Series C, 3.75%(2) ................ 800,000 800,000
CA HFFA RB, Scripps Memorial Hospital, Series A, MBIA Insured, 4%(2) ......... 420,000 420,000
CA HFFA RRB, Catholic West Project, Series C, MBIA Insured, 4%(2) ............ 4,300,000 4,300,000
CA PCFA SWD RB, Western Waste Industries, Series A, 4.10%(2) ................. 500,000 500,000
CA Revenue Anticipation Nts., 4.50%, 6/30/97 ................................. 76,185,000 76,378,946
Hemet, CA HAU MH RRB, West Acadia Project, 4%(2) ............................. 4,800,000 4,800,000
Huntington Park, CA RA MH RB, Casa Rita Apts., Series A, 4.10%(2) ............ 800,000 800,000
Irvine, CA Public Facilities & Infrastructure Authority Lease RB,
Capital Improvement Projects, 3.90%(2) .................................... 4,800,000 4,800,000
</TABLE>
3
<PAGE> 5
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
CALIFORNIA (CONTINUED)
Kings Cnty., CA HAU Multifamily RRB, Edgewater Isle Apts., Series A, 4.15%(2) ...... $ 1,745,000 $ 1,745,000
Los Angeles Cnty., CA Tax & Revenue Anticipation Nts., Series A, 4.50%, 6/30/97 .... 72,300,000 72,530,371
Los Angeles, CA Airport Revenue Municipal Trust Bonds, Series SG-61, 4.15%(2) ...... 2,555,000 2,555,000
Metropolitan Water District of Southern CA Waterworks RRB, Series A,
AMBAC Insured, 4%(2) ............................................................ 3,000,000 3,000,000
Modesto, CA Irrigation District FAU RB, Series SG-66, 4.10%(2) ..................... 500,000 500,000
Northern CA PPA RRB, Geothermal Project 3-A, 3.85%(2) .............................. 3,000,000 3,000,000
Oceanside, CA MH RRB, Lakeridge Apts. Project, 4.40%(2) ............................ 4,100,000 4,100,000
Ontario, CA Multifamily Residential Mtg. RB, Park Centre Project, Series A, 4%(2) .. 400,000 400,000
Orange Cnty., CA Apt. Development RRB, The Lakes Project, Series A, 4.15%(2) ....... 3,000,000 3,000,000
Rancho Mirage, CA RA COP, 4.25%(2) ................................................. 2,300,000 2,300,000
Riverside Cnty., CA HAU MH RB, McKinley Project, 4%(2) ............................. 2,000,000 2,000,000
Sacramento Cnty., CA MH RRB, Issue A, 3.95%(2) ..................................... 3,400,000 3,400,000
San Bernardino Cnty., CA HAU MH RRB, Arrowview Park Apts. Project,
Series A, 4%(2) ................................................................. 3,050,000 3,050,000
San Bernardino Cnty., CA HAU MH RRB, Monterey Villas Apts. Project,
Series A, 3.80%(2) .............................................................. 2,125,000 2,125,000
San Francisco, CA City & Cnty. RA Multifamily RRB,
Fillmore Center Housing Project, Series A-1, 4.15%(2) ........................... 500,000 500,000
Southern CA PAU RRB, Palo Verde Project, Series B,
AMBAC Insured, 3.90%(2) ......................................................... 2,400,000 2,400,000
------------
243,454,317
------------
COLORADO - 1.9%
Arapahoe Cnty., CO Multifamily RRB, Hunters Run Rental Housing, 4.25%(2) ........... 25,600,000 25,600,000
Aurora, CO ID RRB, La Quinta Motor Inns, Inc., 4.35%(2) ............................ 2,600,000 2,600,000
Wheat Ridge, CO ID RRB, La Quinta Motor Inns, Inc., 4.35%(2) ....................... 1,900,000 1,900,000
------------
30,100,000
------------
DELAWARE - 1.0%
DE EDA RB, Hospital Billing Project, Series A, BIG Insured, 4.15%(2) ............... 6,100,000 6,100,000
DE GOB, Series A, 5.60%, 3/1/97 .................................................... 2,550,000 2,557,682
Sussex Cnty., DE ED RB, Route 113 LP Project, 3.70%(2) ............................. 6,000,000 6,000,000
------------
14,657,682
------------
FLORIDA - 5.4%
Dade Cnty., FL WSS RB, FGIC Insured, 3.60%, 1/1/97(1)(2) ........................... 9,500,000 9,500,000
Escambia Cnty., FL HFAU RRB, Florida Convertible Centers Project,
Series A, 3.45%(2) .............................................................. 1,300,000 1,300,000
</TABLE>
4
<PAGE> 6
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
FLORIDA (CONTINUED)
FL BOE Capital Outlay Public Education Refunding Bonds, Series A, 4.35%(2) .......... $13,230,000 $ 13,230,000
FL HFA RRB, MH Monterey Lake Project, 3.85%(2) ...................................... 19,965,000 19,965,000
FL Turnpike Authority RB, Series A, FGIC Insured, 3.60%, 1/1/97(1)(2) ............... 14,200,000 14,200,000
Hillsborough Cnty., FL IDA PC RB, Tampa Electric Co. Project, 4.26%(2) .............. 17,000,000 17,000,000
Orange Cnty., FL Housing FAU RB, Smokewood/Sun Project, Series A, 4.25%(2) .......... 4,000,000 4,000,000
Orange Cnty., FL Housing FAU RRB, Monterey MH Project, Series B, 4.45%(2) ........... 4,890,000 4,890,000
------------
84,085,000
------------
GEORGIA - 4.8%
Burke Cnty., GA DAU PC RB, Georgia Power Co., Vogtle-Fourth Series, 4.20%(2) ........ 5,700,000 5,700,000
Cobb Cnty., GA HAU MH RRB, Terrell Mill Project, 4.25%(2) ........................... 9,400,000 9,400,000
Floyd Cnty., GA DAU PC RRB, Inland-Rome, Inc. Project, 4.35%(2) ..................... 4,735,000 4,735,000
Fulton Cnty., GA DAU RB, Georgia Tech Athletic Assn., Inc., 4.15%(2) ................ 3,000,000 3,000,000
Fulton Cnty., GA DAU RB, Robert W. Woodruff Arts Project, 4.15%(2) .................. 2,000,000 2,000,000
Fulton Cnty., GA Residential Care Facilities RB, Canterbury Court Project,
Series A, 4.15%(2) ............................................................... 2,255,000 2,255,000
GA GOB, Series 1995B, 4.26%(2) ...................................................... 11,400,000 11,400,000
Newton Cnty., GA IDA RRB, John H. Harland Co. Project, 4.30%(2) ..................... 1,000,000 1,000,000
Roswell, GA HAU MH RRB, Oxford Project, 4.40%(2) .................................... 23,610,000 23,610,000
Savannah, GA HAU MH RRB, Somerset Place Project, Series A, 4.05%(2) ................. 2,500,000 2,500,000
Savannah, GA HAU MH RRB, Somerset Wharf Project, Series B, 4.05%(2) ................. 3,400,000 3,400,000
Smyrna, GA HAU MH RRB, Hills of Post Village Project, 4.05%(2) ...................... 5,000,000 5,000,000
------------
74,000,000
------------
ILLINOIS - 8.7%
Centralia City, IL ID RB, Consolidated Foods Corp./Hollywood Brands, Inc., 4.15%(2) . 5,500,000 5,500,000
Elk Grove Village, IL ID RB, La Quinta Motor Inns, Inc., 3.70%(2) ................... 3,100,000 3,100,000
IL Development FAU RB, Residential Brookdale Project, 4.50%(2) ...................... 14,800,000 14,800,000
IL Educational FA RB, Museum of Science & Industry Project, 4.20%(2) ................ 6,000,000 6,000,000
IL Educational FA RB, National-Louis University, 4.20%(2) ........................... 6,300,000 6,300,000
IL HFAU RB, Lake Forest Hospital Project, 4.125%(2) ................................. 12,190,000 12,190,000
IL Regional Transportation Authority RB, AMBAC Insured, 4.15%(2) .................... 20,170,000 20,170,000
IL Student Assistance Commission Student Loan RB, 4.30%(2) .......................... 7,800,000 7,800,000
Lakemoor Village, IL MH Mtg. RB, Lakemoor Apts. Project, 4.45%, 9/1/97(1) ........... 4,780,485 4,780,485
Lakemoor Village, IL MH Mtg. RB, Lakemoor Apts. Project, 4.75%, 9/4/97(1) ........... 15,000,000 15,000,000
Oakbrook Terrace, IL MH Mtg. RB, 4.90%, 11/3/97(1) .................................. 35,000,000 35,000,000
West Chicago, IL ID RRB, Liquid Container Project, 4.10%(2) ......................... 3,810,000 3,810,000
------------
134,450,485
------------
</TABLE>
5
<PAGE> 7
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- -----------
<S> <C> <C>
INDIANA - 2.6%
Crawfordsville, IN ED RRB, Pedcor Investments-Shady Knoll Apts. Project, 4.25%(2) ........ $ 3,425,000 $ 3,425,000
Gary, IN Industrial Environmental Improvement RB, U.S. Steel Corp. Project, 3.70%(2) ..... 1,000,000 1,000,000
Greenfield, IN Industrial ED RRB, 4.20%(2) ............................................... 1,250,000 1,250,000
Greenwood, IN Industrial ED RRB, 4.20%(2) ................................................ 1,260,000 1,260,000
Hobart, IN ED RRB, MMM Invest, Inc. Project, 4.20%(2) .................................... 2,010,000 2,010,000
IN Development FAU RB, Brebeuf Prep School, 4.20%(2) ..................................... 3,500,000 3,500,000
IN EDFA RB, Saroyan Hardwoods, Inc., 4.30%(2) ............................................ 2,000,000 2,000,000
IN HFFA RB, Cardinal Center Project, 4.25%(2) ............................................ 1,510,000 1,510,000
Marion Cnty., IN HA Hospital Facility RB, Indianapolis Osteopathic, 4.25%(2) ............. 3,645,000 3,645,000
Rockport, IN PC RRB, Indiana & Michigan Electric Co. Project, Series A, 4.15%(2) ......... 13,000,000 13,000,000
St. Joseph Cnty., IN HA Special Obligation Bonds, Madison Center, Inc.
Project, 4.25%(2) ..................................................................... 6,985,000 6,985,000
St. Joseph Cnty., IN Industrial Educational Facilities RB, Holy Cross College, 4.25%(2) .. 1,305,000 1,305,000
-----------
40,890,000
-----------
IOWA - 1.1%
Des Moines, IA CD RB, Series A, 4.20%(2) ................................................. 11,400,000 11,400,000
Mason City, IA ID RB, SuperValu Stores, Inc. Project, 4.20%(2) ........................... 4,900,000 4,900,000
-----------
16,300,000
-----------
KANSAS - 0.5%
Kansas City, KS Private Activity RRB, Inland Container Corp., 4.35%(2) ................... 5,200,000 5,200,000
Olathe, KS Industrial RRB, William F. Bieber Project, 4.40%(2) ........................... 1,675,000 1,675,000
Ottawa, KS ID RB, Laich Industries Project, 4.25%(2) ..................................... 700,000 700,000
-----------
7,575,000
-----------
KENTUCKY - 0.4%
Jamestown, KY Industrial Building RB, Union Underwear Co., 4.30%(2) ...................... 1,000,000 1,000,000
Trimble Cnty., KY PC RB, Louisville Gas & Electric Co. Project, Series A,
3.70%, 1/14/97(1) ..................................................................... 5,900,000 5,900,000
-----------
6,900,000
-----------
LOUISIANA - 0.7%
East Baton Rouge Parish, LA ID Board RRB, La Quinta Motor Inns, Inc., 4.35%(2) ........... 2,125,000 2,125,000
Lake Charles, LA Harbor & Terminal District RB, Reynolds Metals Co. Project,
3.75%, 12/1/97(1) ..................................................................... 4,085,000 4,085,000
South LA Port Commission PC RRB, Occidental Petroleum Corp., 4.15%(2) .................... 5,200,000 5,200,000
-----------
11,410,000
-----------
</TABLE>
6
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- -----------
<S> <C> <C>
MARYLAND - 3.5%
Anne Arundel Cnty., Economic West Capitol RB, Series A, 4.15%(2) .................. $ 6,000,000 $ 6,000,000
Hartford Cnty., MD RRB, 1001 Participation Facility Project, 4%(2) ................ 2,550,000 2,550,000
MD Health & HEFA RB, Carroll General Pooled Loan Program, Series A, 4.30%(2) ...... 1,060,000 1,060,000
MD Health & HEFA RB, University of Maryland Pooled Loan Program, Series B, 4%(2) .. 1,150,000 1,150,000
Montgomery Cnty., MD MH Opportunities Commission RB, Grosvenor House
Project, Series A, 4%(2) ....................................................... 19,700,000 19,700,000
Montgomery Cnty., MD MH Opportunities Commission RB, Issue A, 4.30%(2) ............ 15,800,000 15,800,000
Worcester Cnty., MD RRB, White Marlin Mall Project, 3.70%(2) ...................... 7,850,000 7,850,000
-----------
54,110,000
-----------
MASSACHUSETTS - 1.0%
MA Commonwealth GOB, Series C, 4.21%(2) ........................................... 14,600,000 14,600,000
North Andover Town, MA Industrial RB,
Atlee-Oak Realty Trust of Delaware, Inc., 4.05%(2) ............................. 350,000 350,000
-----------
14,950,000
-----------
MICHIGAN - 1.0%
Madison Heights, MI ED RB, Red Roof Inns Project, 3.70%(2) ........................ 1,000,000 1,000,000
MI GORB, Strategic Fund Limited, Series 1, 5.25%(2) ............................... 2,400,000 2,400,000
MI Hospital FAU RRB, Mount Clemens General Hospital, 4.15%(2) ..................... 9,920,000 9,920,000
MI Job DAU RB, East Lansing Residence Associates Project, 3.60%(2) ................ 1,900,000 1,900,000
-----------
15,220,000
-----------
MINNESOTA - 4.4%
Anoka City, MN MH RB, Walker Plaza, Series B, 4.20%(2) ............................ 1,750,000 1,750,000
Austin, MN ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ....................... 4,600,000 4,600,000
Blaine, MN ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ....................... 5,500,000 5,500,000
Bloomington, MN Port Authority Tax RRB, Mall of America Project, Series C,
FSA Insured, 4.20%(2) .......................................................... 8,700,000 8,700,000
Burnsville, MN CD RB, SuperValu Stores, Inc. Project, Series 83, 4.20%(2) ......... 5,500,000 5,500,000
Dakota Cnty., MN Housing & Redevelopment Multifamily Mtg. RB,
Westwood Ridge Rental Housing Project, Series A, 4.20%(2) ...................... 4,100,000 4,100,000
Eden Prairie, MN CD RRB, Lakeview Business Center, 4.20%(2) ....................... 2,595,000 2,595,000
Eden Prairie, MN ID RB, SuperValu Stores, Inc. Project, 4.20%(2) .................. 1,000,000 1,000,000
Maplewood, MN RB, 5.53%(2) ........................................................ 755,000 755,000
Minneapolis, MN CD RRB, Minnehaha/Lake Partners Project, 4.20%(2) ................. 2,750,000 2,750,000
Minneapolis, MN Community Development Agency RRB,
Heart Institute Foundation Project, 4.20%(2) ................................... 3,000,000 3,000,000
</TABLE>
7
<PAGE> 9
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- -----------
<S> <C> <C>
MINNESOTA (CONTINUED)
Minneapolis, MN RB, Catholic Charities Project, 4.15%(2) ............................ $ 3,000,000 $ 3,000,000
New Ulm, MN Hospital Facilities RB, Health Center Systems, 4.60%(2) ................. 2,400,000 2,400,000
North Suburban Hospital District, MN RB,
Anoka & Ramsey Cntys. Hospital Health Center, 4.60%(2) ........................... 3,300,000 3,300,000
St. Paul, MN Port Authority Tax Increment RB,
Westgate Office & Industrial Center Project, 4.20%(2) ............................ 10,800,000 10,800,000
Stillwater, MN ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ..................... 5,500,000 5,500,000
Waite Park, MI Housing RRB, Park Meadows Apts. Project, 4.20%(2) .................... 3,235,000 3,235,000
-----------
68,485,000
-----------
MISSOURI - 0.8%
St. Charles Cnty., MO ID RRB, Remington Apts. Project, 4.60%(2) ..................... 12,700,000 12,700,000
-----------
MONTANA - 0.3%
Great Falls, MT ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) .................... 1,000,000 1,000,000
MT Board Investment RR RB, Colstrip Project, 4%(2) .................................. 3,000,000 3,000,000
-----------
4,000,000
-----------
NEBRASKA - 0.4%
Lancaster Cnty., NE HA RRB, Bryan Memorial Hospital Project, 4%(2) .................. 3,000,000 3,000,000
Norfolk, NE ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ........................ 2,800,000 2,800,000
-----------
5,800,000
-----------
NEVADA - 1.2%
NV Highway Improvement RB, Motor Vehicle Fuel Tax, 5.25%, 4/1/97 .................... 17,700,000 17,792,217
-----------
NEW JERSEY - 0.2%
NJ EDA Manufacturing Facilities RB, VPR Commerce Center Project, 4.25%(2) ........... 3,750,000 3,750,000
-----------
NEW YORK - 8.5%
Babylon, NY GOB, Series B, AMBAC Insured, 3.90%(2) .................................. 1,000,000 1,000,000
Buffalo, NY General Obligation Revenue Anticipation Nts., Series A, 4.25%, 7/15/97 .. 16,000,000 16,058,295
Franklin Cnty., NY ID Agency RRB, McAdam Cheese Co. Project, 4.11%(2) ............... 600,000 600,000
NYC HDC Multifamily Mtg. RB, Columbus Project, Series A, 3.95%(2) ................... 2,800,000 2,800,000
NYC HDC Multifamily Mtg. RB, James Tower Development, Series A, 4.15%(2) ............ 3,000,000 3,000,000
NYC ID Agency RB, Brooklyn Navy Yard Cogen, Series B, 4.20%(2) ...................... 5,000,000 5,000,000
NYC ID RB, Brooklyn Navy Yard Cogen, Series A, 4.15%(2) ............................. 1,600,000 1,600,000
</TABLE>
8
<PAGE> 10
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
NEW YORK (CONTINUED)
NYC Tax Anticipation Nts., Series A, 4.50%, 2/12/97 ................................ $73,000,000 $ 73,063,748
NYC Trust Cultural Resources RRB, American Museum of Natural History,
Series A, MBIA Insured, 3.80%(2) ................................................ 800,000 800,000
NYC Trust Cultural Resources RRB, American Museum of Natural History,
Series B, MBIA Insured, 3.80%(2) ................................................ 1,000,000 1,000,000
NYS DA RB, Series A, FGIC Insured, 4.30%(2) ........................................ 700,000 700,000
NYS Environmental Facilities Corp. SWD RRB, General Electric Co. Project,
Series A, 3.60%, 1/14/97(1) ..................................................... 1,000,000 1,000,000
NYS ERDAEF RB, L.I. Lighting Co., Series A, 4%(2) .................................. 200,000 200,000
NYS ERDAEF RB, L.I. Lighting Co., Series B, 4%(2) .................................. 1,100,000 1,100,000
NYS ERDAPC RRB, Orange/Rockland Utility Project, Series A, FGIC Insured, 3.80%(2) .. 3,500,000 3,500,000
NYS MCFFA RB, Lenox Hill Hospital Project, Series A, 3.95%(2) ...................... 2,800,000 2,800,000
NYS MCFFA, 8.875%, 8/15/97(1) ...................................................... 2,350,000 2,468,284
NYS PAU Revenue & General Purpose Municipal Trust Receipts, Series SG4, 4.15%(2) ... 2,295,000 2,295,000
NYS TBTA Beneficial Interest Certificates, MBIA Insured, 3.40%, 1/15/97(1) ......... 3,300,000 3,300,000
NYS TBTA COP, Series A, 3.60%(2) ................................................... 9,700,000 9,700,000
------------
131,985,327
------------
NORTH CAROLINA - 0.4%
NC National Bank Pooled Tax-Exempt Trust COP, Series 1990A, 4.12%(2) ............... 4,730,000 4,730,000
NC National Bank Pooled Tax-Exempt Trust COP, Series 1990B, 4.12%(2) ............... 1,815,000 1,815,000
------------
6,545,000
------------
NORTH DAKOTA - 0.2%
Bismarck, ND ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ...................... 800,000 800,000
Bismarck, ND ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ...................... 1,500,000 1,500,000
------------
2,300,000
------------
OHIO - 4.6%
Cuyahoga Cnty., OH ID RB, Southwest LP, 3.75%, 12/1/97(1) .......................... 2,015,000 2,015,000
Gallia Cnty., OH ID Mtg. RRB, Jackson Pike Assn., 3.50%, 6/15/97(1) ................ 4,040,000 4,040,000
Greene Cnty., OH ID RRB, SuperValu Holdings, Inc. Project, 4.20%(2) ................ 1,000,000 1,000,000
Lucas Cnty., OH ID RRB, H.H. Motel, Inc. Project, 4.20%(2) ......................... 3,440,000 3,440,000
Marion Cnty., OH Hospital RB, Pooled Lease Program, 4.20%(2) ....................... 6,560,000 6,560,000
Marion Cnty., OH Hospital RB, Pooled Lease Program, 4.20%(2) ....................... 6,330,000 6,330,000
Merchant & Mechanics Tax-Exempt Mtg. Bond Trust RB, 3.75%, 3/1/97(1) ............... 965,000 965,000
Miami Valley, OH Tax-Exempt Mtg. Trust RB, Series 86, 4.88%, 10/15/97(1) ........... 2,800,000 2,800,000
</TABLE>
9
<PAGE> 11
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- -----------
<S> <C> <C>
OHIO (CONTINUED)
OH Air Quality DAU PC RRB, Series B, 3.85%, 10/9/97(1) ......................... $ 4,655,000 $ 4,655,000
OH Water DAU PC Facilities RB, Duquesne Commercial Paper, Series A,
3.85%, 10/9/97(1) ........................................................... 33,955,000 33,955,000
Scioto Cnty., OH Health Care Facilities RB, Hill View Retirement Center,
3.65%, 6/1/97(1) ............................................................ 2,815,000 2,815,000
Warren Cnty., OH ID RRB, Liquid Container Project, 4.10%(2) .................... 1,670,000 1,670,000
Whitehall, OH ID RRB, First Mtg. Continental Commercial, 3.90%, 2/1/97(1) ...... 1,430,000 1,430,000
-----------
71,675,000
-----------
OKLAHOMA - 0.7%
Claremore, OK Industrial & Redevelopment Authority RRB,
Worthington Cylinder Project, 4.35%(2) ...................................... 2,335,000 2,335,000
Cleveland Cnty., OK Public Facilities RB, Hunt Development Project,
Series A, 4.50%(2) .......................................................... 1,000,000 1,000,000
Mid-West, OK Tax-Exempt Mtg. Board Trust RB, 3.60%(2) .......................... 865,000 865,000
Tulsa, OK Industrial Authority RB, 4%(2) ....................................... 6,500,000 6,500,000
-----------
10,700,000
-----------
OREGON - 0.6%
Hillsboro, OR RB, Oregon Graduate Institute, 3.95%(2) .......................... 6,400,000 6,400,000
OR Economic & ID Commission RB, Eagle-Picher Industries Project, 4.60%(2) ...... 3,600,000 3,600,000
-----------
10,000,000
-----------
PENNSYLVANIA - 5.5%
Montgomery Cnty., PA IDA RB, Quaker Chemical Corp. Project, 3.75%(2) ........... 1,600,000 1,600,000
PA Commonwealth Tax Anticipation Nts., 4.50%, 6/30/97 .......................... 72,000,000 72,276,262
PA Commonwealth Tax-Exempt Mtg. Bond Trust Certificates, Series A,
3.95%, 5/1/97(1) ............................................................ 2,830,000 2,830,000
Pittsburg, PA Rate Receipts, Series SG-71, 4.10%(2) ............................ 9,205,000 9,205,000
-----------
85,911,262
-----------
SOUTH CAROLINA - 2.6%
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 2, 3.70%, 5/1/97(1) ...... 4,407,500 4,407,500
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 3, 3.70%, 1/1/97(1) ...... 9,452,500 9,452,500
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 6, 3.80%, 4/1/97(1) ...... 8,075,000 8,075,000
Dorchester Cnty., SC PC Facilities RRB, The BOC Group, Inc. Project, 4.15%(2) .. 3,500,000 3,500,000
SC Jobs & EDA RB, Wellman Income Project, 4.25%(2) ............................. 1,000,000 1,000,000
SC Public Service Authority RB, Series 182, MBIA Insured, 4.21%(2) ............. 14,200,000 14,200,000
-----------
40,635,000
-----------
</TABLE>
10
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
SOUTH DAKOTA - 2.2%
Grant Cnty., SD PC RRB, Otter Tail Power Co. Project, 4.20%(2) ...................... $10,400,000 $ 10,400,000
SD Health & Educational RB, Sioux Valley Hospital Issue, 4.20%(2) ................... 19,700,000 19,700,000
Watertown, SD ID RRB, SuperValu Stores, Inc. Project, 4.20%(2) ...................... 3,900,000 3,900,000
------------
34,000,000
------------
TENNESSEE - 1.9%
Clarksville, TN Public Building Authority RB, Pooled Financing-Tennessee
Municipal Bond Fund, 4.30%(2) .................................................... 10,800,000 10,800,000
Covington, TN ID Board RB, Charms Co. Project, 4.20%(2) ............................. 4,100,000 4,100,000
Dayton, TN ID Board RRB, La-Z Boy Chair Co. Project, 4.15%(2) ....................... 4,350,000 4,350,000
Knox Cnty., TN ID Board RB, Weisgarber Partners, FGIC Insured, 3.50%(2) ............. 3,000,000 3,000,000
Metropolitan Government of Nashville & Davidson Cnty.,
TN Health & Educational Facilities Board RB, Vanderbilt University Project,
Series 1985A, 3.50%, 1/15/97(1) .................................................. 1,000,000 1,000,000
Metropolitan Government of Nashville & Davidson Cnty.,
TN Health & Educational Facilities Board RB, Vanderbilt University Project,
Series 1985A, 3.50%, 1/15/97(1) .................................................. 700,000 700,000
Metropolitan Government of Nashville & Davidson Cnty., TN MH RB,
Arbor Crest Project, Series B, 4.15%(2) .......................................... 3,550,000 3,550,000
Rutherford Cnty., TN ID Board Industrial Building RB,
Derby Industries, Inc. Project, 4.30%(2) ......................................... 1,435,000 1,435,000
------------
28,935,000
------------
TEXAS - 11.3%
Angelina & Neches TX River Authority PC RRB,
Temple-Inland Forest Project, 4.35%(2) ........................................... 7,350,000 7,350,000
Gulf Coast, TX IDA Marine Terminal RB, Amoco Oil Project, 3.50%, 6/1/97(1) .......... 7,065,000 7,065,000
Harris Cnty., TX Series A-CR 139, 4.26%(2) .......................................... 5,000,000 5,000,000
Hockley Cnty., TX ID Corp. PC RB, Amoco Project-Standard Oil Co., 3.75%, 3/1/97(1) .. 20,000,000 20,000,000
Houston, TX WSS RB, 4.15%(2) ........................................................ 35,000,000 35,000,000
Travis Cnty., TX Housing Finance Corp. MH RB, Bent Oaks Apts., 4.35%(2) ............. 4,400,000 4,400,000
TX Tax & Revenue Anticipation Nts., 4.75%, 8/29/97 .................................. 77,000,000 77,424,874
TX Turnpike Authority RB, Dallas Northtollway, Series SG-70, 4.15%(2) ............... 18,325,000 18,325,000
------------
174,564,874
------------
UTAH - 0.6%
UT HFA MH RRB, Candlestick Apts. Project, 4.15%(2) .................................. 6,400,000 6,400,000
Weber Cnty., UT ID RRB, Parker Properties, Inc. Project, 4%(2) ...................... 2,600,000 2,600,000
------------
9,000,000
------------
</TABLE>
11
<PAGE> 13
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ ---------------
<S> <C> <C>
VERMONT - 0.1%
VT IDA RB, Sherbern Corp., 4.29%(2) ............................................ $ 1,460,000 $ 1,460,000
---------------
WASHINGTON - 2.2%
Port Longview, WA ID RB, Longview Fibre Co. Project, 4.20%(2) .................. 5,000,000 5,000,000
Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 1, 4.15%(2) ..... 1,055,000 1,055,000
Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 2, 4.15%(2) ..... 1,770,000 1,770,000
Seattle, WA ID Corp. RB, RICS LP, 4.20%(2) ..................................... 4,950,000 4,950,000
WA GOB, Series 1996-A, 4.15%(2) ................................................ 8,000,000 8,000,000
WA GORB, Series 1995C, 4.21%(2) ................................................ 13,100,000 13,100,000
---------------
33,875,000
---------------
WEST VIRGINIA - 0.4%
Beckley City, WV Revenue Anticipation Nts., Series A, 4.20%(2) ................. 1,500,000 1,500,000
Harrison Cnty., WV ID RRB, Fox Grocery Co. Project, 4.10%(2) ................... 4,140,000 4,140,000
---------------
5,640,000
---------------
WISCONSIN - 1.1%
Milwaukee WI Revenue School Order Nts., Series B, 4.25%, 8/21/97 ............... 16,500,000 16,603,455
---------------
WYOMING - 0.2%
Uinta Cnty., WY PC RB, AMOCO Standard Oil Co. of Indiana Project,
3.90%, 12/1/97(1) .......................................................... 3,000,000 3,000,000
---------------
U.S. POSSESSIONS - 0.0%
PR Industrial, Medical & Environmental PC Facilities FAU RB,
Reynolds Metals Co. Project, 3.80%, 9/1/97(1) ............................... 200,000 200,064
---------------
Total Investments, at Value .................................................... 103.1% 1,596,820,655
Liabilities in Excess of Other Assets .......................................... (3.1) (47,569,059)
------------ ---------------
Net Assets ..................................................................... 100.0% $ 1,549,251,596
============ ===============
</TABLE>
12
<PAGE> 14
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
Centennial Tax Exempt Trust
To simplify the listings of the Centennial Tax Exempt Trust holdings in the
Statement of Investments, we have abbreviated the descriptions of many of the
securities per the table below:
<TABLE>
<S> <C> <C> <C>
BOE Board of Education ED Economic Development
CD Commercial Development EDA Economic Development Authority
COP Certificates of Participation EDFA Economic Development Finance
DA Dormitory Authority Authority
DAU Development Authority ERDAEF Energy Research & Development
ERDAPC Energy Research & Development Authority Electric Facilities
Authority Pollution Control L.I. Long Island
FA Facilities Authority MCFFA Medical Care Facilities Finance
FAU Finance Authority Agency
GOB General Obligation Bonds MH Multifamily Housing
GORB General Obligation Refunding Bonds NYC New York City
GORRB General Obligation Revenue NYS New York State
Refunding Bonds PAU Power Authority
HA Hospital Authority PC Pollution Control
HAU Housing Authority PCFA Pollution Control Finance Authority
HDC Housing Development Corp. PPA Public Power Agency
HEA Higher Education Authority RA Redevelopment Agency
HEFA Higher Educational Facilities RB Revenue Bonds
Authority RR Resource Recovery
HFA Housing Finance Agency RRB Revenue Refunding Bonds
HFAU Health Facilities Authority SWD Solid Waste Disposal
HFFA Health Facilities Finance Authority TBTA Triborough Bridge & Tunnel
ID Industrial Development Authority
IDA Industrial Development Authority WSS Water & Sewer System
</TABLE>
1. Put obligation redeemable at full face value on the date reported.
2. 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, 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.
See accompanying Notes to Financial Statements
13
<PAGE> 15
STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 (Unaudited)
Centennial Tax Exempt Trust
<TABLE>
<S> <C>
ASSETS:
Investments, at value - see accompanying statement .............. $ 1,596,820,655
Cash ............................................................ 6,017,488
Receivables:
Shares of beneficial interest sold ........................... 14,336,568
Interest ..................................................... 13,510,722
Other ........................................................... 93,875
---------------
Total assets ............................................... 1,630,779,308
---------------
LIABILITIES:
Payables and other liabilities:
Investments purchased ........................................ 64,606,079
Shares of beneficial interest redeemed ....................... 16,380,576
Service plan fees ............................................ 354,112
Transfer and shareholder servicing agent fees ................ 19,899
Dividends .................................................... 14,646
Other ........................................................ 152,400
---------------
Total liabilities .......................................... 81,527,712
NET ASSETS ...................................................... $ 1,549,251,596
===============
COMPOSITION OF NET ASSETS:
Paid-in capital ................................................. $ 1,549,257,857
Accumulated net realized loss on investment transactions ........ (6,261)
---------------
NET ASSETS - applicable to 1,549,273,825 shares of beneficial
interest outstanding ......................................... $ 1,549,251,596
===============
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE .. $ 1.00
</TABLE>
See accompanying Notes to Financial Statements.
14
<PAGE> 16
STATEMENT OF OPERATIONS For the Six Months Ended December 31, 1996 (Unaudited)
Centennial Tax Exempt Trust
<TABLE>
<S> <C>
INVESTMENT INCOME - Interest ............................. $ 27,973,838
------------
EXPENSES:
Management fees - Note 3 ................................. 3,346,718
Service plan fees - Note 3 ............................... 1,534,325
Transfer and shareholder servicing agent fees - Note 3 ... 314,222
Custodian fees and expenses .............................. 139,922
Registration and filing fees ............................. 106,329
Shareholder reports ...................................... 34,894
Legal and auditing fees .................................. 17,627
Insurance expenses ....................................... 10,408
Trustees' fees and expenses .............................. 8,971
Other .................................................... 680
------------
Total expenses ........................................ 5,514,096
Less expenses paid indirectly - Note 3 ................ (101,386)
------------
Net expenses .......................................... 5,412,710
------------
NET INVESTMENT INCOME .................................... 22,561,128
NET REALIZED GAIN ON INVESTMENTS ......................... 4,819
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..... $ 22,565,947
============
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1996 Year Ended
(Unaudited) June 30, 1996
----------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income .......................................... $ 22,561,128 $ 46,013,851
Net realized gain .............................................. 4,819 244,254
--------------- ---------------
Net increase in net assets resulting from operations ........... 22,565,947 46,258,105
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS .................... (22,806,978) (46,061,715)
BENEFICIAL INTEREST TRANSACTIONS:
Net increase in net assets resulting from beneficial interest
transactions - Note 2 ....................................... 123,498,653 110,876,607
--------------- ---------------
NET ASSETS:
Total increase ................................................. 123,257,622 111,072,997
Beginning of period ............................................ 1,425,993,974 1,314,920,977
--------------- ---------------
End of period .................................................. $ 1,549,251,596 $ 1,425,993,974
=============== ===============
</TABLE>
See accompanying Notes to Financial Statements.
15
<PAGE> 17
FINANCIAL HIGHLIGHTS
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Six Months Ended Year Ended June 30,
December 31, ------------------------------------------------------------------
1996 (Unaudited) 1996 1995 1994 1993 1992
---------------- --------- --------- --------- --------- ----------
<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 ............. .01 .03 .03 .02 .02 .03
Dividends and distributions to shareholders . (.01) (.03) (.03) (.02) (.02) (.03)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
TOTAL RETURN, AT
NET ASSET VALUE(1) ....................... 1.50% 3.16% 3.17% 1.90% 2.19% 3.55%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) ..... $ 1,549 $ 1,426 $ 1,315 $ 1,039 $ 981 $ 917
Average net assets (in millions) ............ $ 1,533 $ 1,473 $ 1,127 $ 1,057 $ 977 $ 900
RATIOS TO AVERAGE NET ASSETS:
Net investment income ....................... 2.92%(2) 3.12% 3.13% 1.87% 2.08% 3.40%
Expenses(3) ................................. 0.71%(2) 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.
2. Annualized.
3. Beginning in fiscal 1995, the expense ratio reflects the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not
been adjusted.
See accompanying Notes to Financial Statements.
16
<PAGE> 18
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 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 by investing in
short-term municipal securities. The Trust's investment adviser 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.
17
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Centennial Tax Exempt Trust
2. SHARES OF BENEFICIAL INTEREST
The Trust has authorized an unlimited number of no par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Six Months Ended December 31, 1996 Year Ended June 30, 1996
-------------------------------------- --------------------------------------
Shares Amount Shares Amount
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold ......................... 2,220,911,676 $ 2,220,911,676 4,357,729,565 $ 4,357,729,549
Dividends and distributions
reinvested ................. 23,570,335 23,570,335 45,904,203 45,904,203
Redeemed ..................... (2,120,983,358) (2,120,983,358) (4,292,757,161) (4,292,757,145)
-------------- --------------- -------------- ---------------
Net increase ............... 123,498,653 $ 123,498,653 110,876,607 $ 110,876,607
============== =============== ============== ===============
</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 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.
Expenses paid indirectly represent a reduction of custodian fees for earnings on
cash balances maintained by the fund.
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 six months ended
December 31, 1996, the Trust paid $3,529 to a broker/dealer affiliated with the
Manager as reimbursement for distribution-related expenses.
18
<PAGE> 20
(This page has been left blank intentionally.)
