<PAGE> 1
DEAR SHAREHOLDER:
The U.S. economy is in the midst of one of its best periods in decades, with
growth in 1997 reaching an annual rate of 4%, up from about 2% in 1995.
Unemployment has fallen to its lowest level since the early 1970s, and
inflation is dormant, despite the strengthening economy.
As a result, interest rates have remained under control. Although 30-year
Treasury rates have risen above 7% several times during the past 12 months,
yields on short-term securities, particularly tax-exempts, remain relatively
low. Still, yields on tax-exempt securities are adequate to offset the effects
of inflation, which is currently running at an annual rate of 2.4%.
For the year ended June 30, 1997, the Centennial Tax Exempt Trust had a
compounded annual yield of 3.01%. Without compounding, the corresponding yield
was 2.96%. For investors in the 36% federal tax bracket, these yields are
equivalent to taxable yields of 4.70% with compounding, and 4.63% without
compounding, respectively. The seven-day annualized yields, with and without
compounding, for the year ended June 30, 1997 were 3.40% and 3.34%,
respectively.(1)
The portfolio continues to emphasize the highest quality investments, and over
two thirds of the securities are typically enhanced by municipal bond insurance
or bank letters of credit. This high quality is important so that the
Centennial Tax Exempt Trust can continue to provide liquidity, as well as
safety of principal. However, it's important to remember that 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.
One of the special challenges of managing a tax-exempt short-term fund is the
inconsistent supply of securities with the appropriate maturity. For instance,
during the latter half of 1996, the Trust received an above-average inflow of
funds, which we sought to put to work. At the same time, we believed that
interest rates were likely to go down. As a result, we sought to purchase
securities with longer maturities. That's because in a period of falling
interest rates, longer-term paper paying a relatively high yield appreciates in
value. However, longer-term paper was not uniformly available during that
period.
But the concern diminished by December as we began to view the interest-rate
environment differently. By January, we began to sell some of our longer dated
paper because we believed that interest rates would rise during the first
quarter of 1997. Having a shorter-maturity portfolio is typically more
appropriate in April, as investors liquidate shares to pay income taxes on
their other investments.
On March 25, 1997, the Federal Reserve Board raised short-term interest rates
by 0.25%. As a result of the Fed action, and the
1
<PAGE> 2
April taxpaying season, the rates for very short-term tax-free instruments
surged, resulting in falling yields. By keeping the portfolio's average
maturity very short, we were able to take advantage of the 1.5 percentage point
yield increase that ensued in the tax-exempt marketplace from mid-April to late
May.
However, as the end of the fiscal year approached, we began to extend the
portfolio once again. As of June 30, 1997, the portfolio's average maturity is
65 days, up from 37 days at the beginning of the fiscal year. Due to a somewhat
decelerating economy, we are less concerned about rising inflation and interest
rates than we were a few months ago. As opportunities present themselves, we
will purchase longer-term paper in order to lock in higher yields.
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
July 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
guarantee future results.
2
<PAGE> 3
STATEMENT OF INVESTMENTS
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS-102.7%
ALABAMA-0.6%
Bessemer, AL IDV RB, Big B, Inc. Project, Series A, 4.25%(1) . . . . . . . . . . $ 1,750,000 $ 1,750,000
Huntsville, AL FAU MH RRB, Series B, 4.10%(1) . . . . . . . . . . . . . . . . . . 7,000,000 7,000,000
Winfield, AL IDV RB, Union Underwear Co., 4%(1) . . . . . . . . . . . . . . . . . 1,900,000 1,900,000
--------------
10,650,000
--------------
ARIZONA-2.6%
AZ HFAU RB, Blood Systems, Inc., 4.20%(1) . . . . . . . . . . . . . . . . . . . . 8,000,000 8,000,000
Maricopa Cnty., AZ IDAU RB, Grand Canyon University Project, 4.20%(1) . . . . . . 5,200,000 5,200,000
Phoenix, AZ IDAU MH RRB, Lynwood Apts. Project, 4.15%(1) . . . . . . . . . . . . 6,475,000 6,475,000
Phoenix, AZ IDAU MH RRB, Paradise Lakes Apts. Project, 1995 Series, 4.35%(1) . . 22,500,000 22,500,000
Tucson, AZ IDAU RB, Geronimo Building Renovation Project, 4%, 12/15/97(2) . . . . 1,045,000 1,045,000
--------------
43,220,000
--------------
ARKANSAS-0.0%
Subiaco, AR IDV RB, Cloves Gear & Products, Inc., 5.40%(1) . . . . . . . . . . . 265,000 265,000
--------------
CALIFORNIA-14.1%
Anaheim, CA HAU MH RB, Bel Page Project, Series A, 4.10%(1) . . . . . . . . . . . 1,000,000 1,000,000
Anaheim, CA HAU MH RRB, Park Vista Apts., Series A, 4.05%(1) . . . . . . . . . . 1,000,000 1,000,000
CA GOB, 3.70%, 7/1/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000
CA HEAU Student Loan RB, Series C, 4.20%(1) . . . . . . . . . . . . . . . . . . . 4,000,000 4,000,000
CA HEAU Student Loan RRB, Series 1987A, 3.95%, 5/1/98(2) . . . . . . . . . . . . 27,175,000 27,175,000
CA HEAU Student Loan RRB, Series 1992A-2, 3.95%, 5/1/98(2) . . . . . . . . . . . 14,000,000 14,000,000
CA HEAU Student Loan RB, 3.95%, 5/1/98(2) . . . . . . . . . . . . . . . . . . . . 34,400,000 34,400,000
CA HFFAU RB, Adventist Health System, Series B, 3.95%(1) . . . . . . . . . . . . 1,000,000 1,000,000
CA HFFAU RB, Catholic Healthcare Project, Series B, 4.05%(1) . . . . . . . . . . 1,100,000 1,100,000
CA HFFAU RB, Pooled Loan Program, Series B, FGIC Insured, 4.05%(1) . . . . . . . 500,000 500,000
CA HFFAU RB, Santa Barbara Cottage Project, Series C, 3.95%(1) . . . . . . . . . 800,000 800,000
CA HFFAU RB, Scripps Memorial Hospital, Series A, MBIA Insured, 4.05%(1) . . . . 420,000 420,000
CA HFFAU RRB, Catholic West Project, Series C, MBIA Insured, 4.05%(1) . . . . . . 1,900,000 1,899,977
CA HFFAU RRB, Memorial Health Services Project, 3.95%(1) . . . . . . . . . . . . 1,300,000 1,300,000
CA M-S-R PPA RB, San Juan Project, Sub Lien, Series E, MBIA Insured, 3.90%(1) . . 4,000,000 4,000,000
CA Municipal RB, Series SG89, MBIA Insured, 3.90%, 8/7/97 . . . . . . . . . . . . 7,425,000 7,425,000
CA PCFAU SWD RB, Western Waste Industries, Series A, 3.90%(1) . . . . . . . . . . 500,000 500,000
CA School Cash Reserve Program Authority Nts., Series A,
AMBAC Insured, 4.75%, 7/2/98 . . . . . . . . . . . . . . . . . . . . . . . . . 45,000,000 45,389,250
Hemet, CA HAU MH RRB, West Acacia Project, 4%(1) . . . . . . . . . . . . . . . . 4,800,000 4,800,000
</TABLE>
3
<PAGE> 4
STATEMENT OF INVESTMENTS (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
CALIFORNIA (CONTINUED)
Huntington Park, CA RA MH RB, Casa Rita Apts., Series A, 4.05%(1) . . . . . . . . $ 1,500,000 $ 1,499,990
Irvine, CA Public Facilities & Infrastructure Authority Lease RB,
Capital Improvement Projects, 4%(1) . . . . . . . . . . . . . . . . . . . . . 1,800,000 1,800,000
Kings Cnty., CA HAU MH RRB, Edgewater Isle Apts., Series A, 3.95%(1) . . . . . . 3,005,000 3,005,000
Los Angeles Cnty., CA HAU MH RB, Park Sierra Project, 4.05%(1) . . . . . . . . . 1,700,000 1,700,000
Los Angeles, CA Airport RB, Series SG61, 4.35%(1) . . . . . . . . . . . . . . . . 2,555,000 2,555,000
Metropolitan Water District of Southern CA Waterworks RRB, Series A,
AMBAC Insured, 4%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 400,006
Modesto, CA Irrigation District FAU RB, Series SG66, 4.25%(1) . . . . . . . . . . 500,000 500,000
Northern CA PPA RRB, Geothermal Project 3-A, 3.90%(1) . . . . . . . . . . . . . . 3,000,000 3,000,040
Oceanside, CA MH RRB, Lakeridge Apts. Project, 4.40%(1) . . . . . . . . . . . . . 4,100,000 4,100,000
Ontario, CA Multifamily Residential Mtg. RB,
Park Centre Project, Series A, 3.75%(1) . . . . . . . . . . . . . . . . . . . 400,000 400,000
Rancho Mirage, CA RA COP, 4.05%(1) . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,011
Riverside Cnty., CA HAU MH RB, McKinley Project, 4%(1) . . . . . . . . . . . . . 2,000,000 2,000,000
Sacramento Cnty., CA MH RRB, Issue A, 4.10%(1) . . . . . . . . . . . . . . . . . 3,400,000 3,400,000
San Bernardino Cnty., CA HAU MH RRB, Arrowview Park Apts. Project,
Series A, 4%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,050,000 3,050,037
San Bernardino Cnty., CA HAU MH RRB, Monterey Villas Apts. Project,
Series A, 4%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,125,000 2,125,000
San Bernardino Cnty., CA Tax & RAN,
Series A, 4.50%, 6/30/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,000,000 23,143,060
San Francisco, CA City & Cnty. RA MH RRB,
Fillmore Center Housing Project, Series A-1, 4%(1) . . . . . . . . . . . . . . 500,000 500,000
San Francisco, CA City & Cnty. Redevelopment FAU RRB,
Yerba Buena Garden, 4.05%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 760,000 760,000
Southern CA PAU RRB, Palo Verde Project,
Series B, AMBAC Insured, 3.90%(1) . . . . . . . . . . . . . . . . . . . . . . 2,400,000 2,400,000
--------------
232,047,371
--------------
COLORADO-2.1%
Arapahoe Cnty., CO MH RRB, Hunters Run Rental Housing, 4.30%(1) . . . . . . . . . 25,600,000 25,600,000
Aurora, CO IDV RRB, La Quinta Motor Inns, Inc., 4.25%(1) . . . . . . . . . . . . 2,600,000 2,600,000
Superior Metropolitan District No. 3, CO GOB, 4.20%(1) . . . . . . . . . . . . . 5,000,000 5,000,000
Wheat Ridge, CO IDV RRB, La Quinta Motor Inns, Inc., 4.25%(1) . . . . . . . . . . 1,775,000 1,775,000
--------------
34,975,000
--------------
DELAWARE-0.7%
DE EDAU RB, Hospital Billing Project, Series A, BIG Insured, 4.25%(1) . . . . . . 6,100,000 6,100,000
Sussex Cnty., DE EDAU RB, Route 113 LP Project, 3.70%(1) . . . . . . . . . . . . 6,000,000 6,000,000
--------------
12,100,000
--------------
</TABLE>
4
<PAGE> 5
STATEMENT OF INVESTMENTS (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
FLORIDA-7.6%
Dade Cnty., FL WSS RB, FGIC Insured, 3.40%, 7/1/97 . . . . . . . . . . . . . . . $ 9,500,000 $ 9,500,000
Escambia Cnty., FL HFAU RRB, Florida Convertible Centers Project,
Series A, 3.70%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,250,000
FL BOE Capital Outlay Public Education Refunding Bonds, Series A, 4.28%(1) . . . 13,230,000 13,230,000
FL HFA MH RRB, Monterey Lake Project, 4.30%(1) . . . . . . . . . . . . . . . . . 19,965,000 19,965,000
FL Turnpike Authority RB, Series A, FGIC Insured, 3.40%, 7/1/97(2) . . . . . . . 14,200,000 14,200,000
Hillsborough Cnty., FL IDAU PC COP, Tampa Electric Co. Project,
MBIA Insured, 3.97%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000,000 17,000,000
Hillsborough Cnty., FL IDAU PC RB, Tampa Electric Co. Project, 4.30%(1) . . . . . 17,000,000 17,000,000
Jacksonville, FL IDV RRB, Airport Hotel Project, 4.15%(1) . . . . . . . . . . . . 3,000,000 3,000,000
Orange Cnty., FL HFAU RRB, Pooled Hospital Loan Program,
Series 1985, MBIA Insured, 3.60%, 8/25/97 . . . . . . . . . . . . . . . . . . 16,000,000 16,000,000
Orange Cnty., FL Housing FAU MH RRB, Monterey Project, Series B, 4.45%(1) . . . . 4,815,000 4,815,000
St. Lucie Cnty., FL PC RB, Florida Power & Light Project, 3.55%, 8/11/97 . . . . 9,200,000 9,200,000
--------------
125,160,000
--------------
GEORGIA-4.4%
Cobb Cnty., GA HAU MH RRB, Terrell Mill Project, 4.35%(1) . . . . . . . . . . . . 9,400,000 9,400,000
Floyd Cnty., GA DAU PC RRB, Inland-Rome, Inc. Project, 4.35%(1) . . . . . . . . . 4,735,000 4,735,000
Fulton Cnty., GA DAU RB, Georgia Tech Athletic Assn., Inc., 4.20%(1) . . . . . . 3,000,000 3,000,000
Fulton Cnty., GA DAU RB, Lovett School Project, 4.20%(1) . . . . . . . . . . . . 3,000,000 3,000,000
Fulton Cnty., GA DAU RB, Robert W. Woodruff Arts Project, 4.20%(1) . . . . . . . 2,000,000 2,000,000
Fulton Cnty., GA Residential Care Facilities RB,
Canterbury Court Project, Series A, 4.20%(1) . . . . . . . . . . . . . . . . . 2,255,000 2,255,000
GA GOB, Series 1995B, 4.30%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 11,400,000 11,400,000
Gwinnett Cnty., GA HAU MH RB, Post Chase Project, 4.10%(1) . . . . . . . . . . . 7,500,000 7,500,000
Roswell, GA HAU MH RRB, Oxford Project, 4.35%(1) . . . . . . . . . . . . . . . . 23,610,000 23,610,000
Smyrna, GA HAU MH RRB, Hills of Post Village Project, 4.10%(1) . . . . . . . . . 5,000,000 5,000,000
--------------
71,900,000
--------------
ILLINOIS-11.4%
Centralia City, IL IDV RB, Consolidated Foods
Corp./Hollywood Brands, Inc., 4.20%(1) . . . . . . . . . . . . . . . . . . . . 5,500,000 5,500,000
Elk Grove Village, IL IDV RB, La Quinta Motor Inns, Inc., 3.70%(1) . . . . . . . 3,100,000 3,100,000
IL Development FAU RB, Residential Brookdale Project, 4.183%(1) . . . . . . . . . 14,800,000 14,800,000
IL Educational FA RB, National-Louis University, 4.20%(1) . . . . . . . . . . . . 6,200,000 6,200,000
IL HFAU RB, Lake Forest Hospital Project, 4.057%(1) . . . . . . . . . . . . . . . 12,190,000 12,190,000
IL HFAU RRB, Advocate Health Care, Series B, 4.20%(1) . . . . . . . . . . . . . . 74,500,000 74,500,000
</TABLE>
5
<PAGE> 6
STATEMENT OF INVESTMENTS (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
ILLINOIS (CONTINUED)
IL IDAU RRB, SuperValu, Inc. Project, 4.15%(1) . . . . . . . . . . . . . . . . . $ 5,000,000 $ 5,000,000
IL Student Assistance Commission Student Loan RB, Series A, 4.20%(1) . . . . . . 7,600,000 7,600,000
Lakemoor Village, IL MH Mtg. RB, Lakemoor Apts. Project, 4.75%, 9/4/97(2) . . . . 15,000,000 15,000,000
Lakemoor Village, IL MH Mtg. RB, Lakemoor Apts.
Project, Series A, 4.45%, 9/1/97(2) . . . . . . . . . . . . . . . . . . . . . 4,724,050 4,724,050
Oakbrook Terrace, IL MH Mtg. RB, Series C, 4.90%, 11/3/97(2) . . . . . . . . . . 35,000,000 35,000,000
West Chicago, IL IDV RRB, Liquid Container Project, 4.25%(1) . . . . . . . . . . 3,810,000 3,810,000
--------------
187,424,050
--------------
INDIANA-2.4%
Crawfordsville, IN ED RRB, Pedcor Investments-Shady Knoll Apts. Project, 4.25%(1) 3,425,000 3,425,000
Gary, IN Industrial Environmental Improvement RB, U.S. Steel Corp.
Project, 4.10%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,000,000
Greenfield, IN Industrial ED RRB, 4.20%(1) . . . . . . . . . . . . . . . . . . . 1,200,000 1,200,000
Greenwood, IN Industrial ED RRB, 4.20%(1) . . . . . . . . . . . . . . . . . . . . 1,210,000 1,210,000
Hobart, IN ED RRB, MMM Invest, Inc. Project, 4.20%(1) . . . . . . . . . . . . . . 1,785,000 1,785,000
IN Development FAU RB, Brebeuf Prep School, 4.20%(1) . . . . . . . . . . . . . . 3,500,000 3,500,000
IN EDFAU RB, Saroyan Hardwoods, Inc., 4.30%(1) . . . . . . . . . . . . . . . . . 2,000,000 2,000,000
Marion Cnty., IN HA Hospital Facility RB, Indianapolis Osteopathic, 4.25%(1) . . 3,645,000 3,645,000
Rockport, IN PC RRB, Indiana & Michigan Electric Co. Project, Series A, 4.20%(1) 13,000,000 13,000,000
St. Joseph Cnty., IN HA Special Obligation Bonds, Madison Center, Inc.
Project, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,875,000 6,875,000
St. Joseph Cnty., IN Industrial Educational Facilities RB,
Holy Cross College, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 1,305,000 1,305,000
--------------
38,945,000
--------------
IOWA-0.6%
Des Moines, IA CD RB, Series A, 4.15%(1) . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000
Mason City, IA IDV RB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . 4,900,000 4,900,000
--------------
9,900,000
--------------
KANSAS-0.5%
Kansas City, KS Private Activity RRB, Inland Container Corp., 4.35%(1) . . . . . 5,200,000 5,200,000
Olathe, KS Industrial RRB, William F. Bieber Project, 4.35%(1) . . . . . . . . . 1,675,000 1,675,000
Ottawa, KS IDV RB, Laich Industries Project, 5.40%(1) . . . . . . . . . . . . . . 700,000 700,000
--------------
7,575,000
--------------
</TABLE>
6
<PAGE> 7
STATEMENT OF INVESTMENTS (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
KENTUCKY-1.0%
Jamestown, KY Industrial Building RB, Union Underwear Co., 4%(1) . . . . . . . . $ 1,000,000 $ 1,000,000
Mayfield, KY Multi-City Lease RB, Kentucky League of
Cities Funding Trust, 4.30%(1) . . . . . . . . . . . . . . . . . . . . . . . . 15,200,000 15,200,000
--------------
16,200,000
--------------
LOUISIANA-0.4%
East Baton Rouge Parish, LA IDV Board RRB, La Quinta Motor Inns, Inc., 4.25%(1) . 2,125,000 2,125,000
LA GORB, Series A, MBIA Insured, 6.60%, 8/1/97 . . . . . . . . . . . . . . . . . 1,000,000 1,002,214
Lake Charles, LA Harbor & Terminal District RB, Reynolds Metals Co.
Project, 3.75%, 12/1/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . 4,085,000 4,085,000
--------------
7,212,214
--------------
MARYLAND-4.1%
Anne Arundel Cnty., MD ED RB, West Capitol, Series A, 4.20%(1) . . . . . . . . . 6,000,000 6,000,000
Hartford Cnty., MD RRB, 1001 Partnership Facility Project, 3.70%(1) . . . . . . . 2,550,000 2,550,000
MD Health & HEFAU RB, Carroll General Pooled Loan Program, Series A, 4.20%(1) . . 1,060,000 1,060,000
MD Health & HEFAU RB, University of Maryland Pooled Loan Program,
Series B, 3.70%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,150,000 1,150,000
Montgomery Cnty., MD GOB, Series A, 5%, 5/1/98 . . . . . . . . . . . . . . . . . 4,750,000 4,792,148
Montgomery Cnty., MD MH Opportunities Commission RB, Grosvenor House Project,
Series A, 3.70%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,700,000 19,700,000
Montgomery Cnty., MD MH Opportunities Commission RB, Issue A, 4.35%(1) . . . . . 23,800,000 23,800,000
Worcester Cnty., MD RRB, White Marlin Mall Project, 3.70%(1) . . . . . . . . . . 7,850,000 7,850,000
--------------
66,902,148
--------------
MASSACHUSETTS-1.2%
MA Commonwealth GOB, Series C, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . 14,600,000 14,600,000
MA HFA RB, SFM, Series 50, 3.90%, 6/1/98 . . . . . . . . . . . . . . . . . . . . 5,535,000 5,535,000
North Andover Town, MA Industrial RB, Atlee-Oak Realty Trust of Delaware, Inc.,
4.75%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350,000 350,000
--------------
20,485,000
--------------
MICHIGAN-0.8%
Madison Heights, MI ED RB, Red Roof Inns Project, 3.80%(1) . . . . . . . . . . . 1,000,000 1,000,000
MI Hospital FAU RRB, Mount Clemens General Hospital, 4.15%(1) . . . . . . . . . . 9,920,000 9,920,000
MI Job DAU RB, East Lansing Residence Associates Project, 4.10%(1) . . . . . . . 1,900,000 1,900,000
--------------
12,820,000
--------------
</TABLE>
7
<PAGE> 8
STATEMENT OF INVESTMENTS (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
MINNESOTA-4.5%
Anoka City, MN MH RB, Walker Plaza, Series B, 4.20%(1) . . . . . . . . . . . . . $ 1,750,000 $ 1,750,000
Austin, MN IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . . 4,600,000 4,600,000
Blaine, MN IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . . 5,500,000 5,500,000
Bloomington, MN Port Authority Tax RRB, Mall of America Project, Series C,
FSA Insured, 4.20%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,300,000 8,300,000
Burnsville, MN CD RB, SuperValu Stores, Inc. Project, Series 83, 4.15%(1) . . . . 5,500,000 5,500,000
Dakota Cnty., MN Housing & Redevelopment Multifamily Mtg. RB, Westwood
Ridge Rental Housing Project, Series A, 4.20%(1) . . . . . . . . . . . . . . . 4,100,000 4,100,000
Eden Prairie, MN CD RRB, Lakeview Business Center, 4.20%(1) . . . . . . . . . . . 2,495,000 2,495,000
Eden Prairie, MN IDV RB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . 1,000,000 1,000,000
Maplewood, MN CD RRB, 5.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 625,000 625,000
Minneapolis, MN CD RRB, Minnehaha/Lake Partners Project, 4.20%(1) . . . . . . . . 2,750,000 2,750,000
Minneapolis, MN Community Development Agency RRB, Heart Institute
Foundation Project, 4.20%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 2,900,000 2,900,000
Minneapolis, MN RB, Catholic Charities Project, 4.15%(1) . . . . . . . . . . . . 3,000,000 3,000,000
New Ulm, MN Hospital Facilities RB, Health Center Systems, 4%(1) . . . . . . . . 2,400,000 2,400,000
North Suburban Hospital District, MN RB, Anoka & Ramsey Counties Hospital
Health Center, 4%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,300,000 3,300,000
St. Paul, MN Housing & Redevelopment Authority RB, Science Museum of Minnesota,
Series B, 3.30%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,300,000 7,300,000
St. Paul, MN Port Authority Tax Increment RB, Westgate Office & Industrial Center
Project, 4.15%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,500,000 10,500,000
Stillwater, MN IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . 5,500,000 5,500,000
Waite Park, MN Housing RRB, Park Meadows Apts. Project, 4.20%(1) . . . . . . . . 3,235,000 3,235,000
--------------
74,755,000
--------------
MISSOURI-3.1%
MO Environmental Improvement & Energy Research Authority PC RB, Union
Electric Co., Series B, 3.95%, 6/1/98 . . . . . . . . . . . . . . . . . . . . 37,975,000 37,976,124
St. Charles Cnty., MO IDV RRB, Remington Apts. Project, 4.50%(1) . . . . . . . . 12,700,000 12,700,000
--------------
50,676,124
--------------
MONTANA-1.1%
Great Falls, MT IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . 1,000,000 1,000,000
MT Board Investment RR RB, Colstrip Project, 4.25%(1) . . . . . . . . . . . . . . 3,000,000 3,000,000
MT HFAU RB, Health Care Pooled Loan Program, Series A, FGIC Insured, 4.15%(1) . . 14,300,000 14,300,000
--------------
18,300,000
--------------
</TABLE>
8
<PAGE> 9
STATEMENT OF INVESTMENTS (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
NEBRASKA-0.2%
Norfolk, NE IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . . $ 2,800,000 $ 2,800,000
--------------
NEW JERSEY-0.2%
NJ EDAU Manufacturing Facilities RB, VPR Commerce Center Project, 4.40%(1) . . . 3,750,000 3,750,020
--------------
NEW YORK-6.3%
Buffalo, NY RAN, Series A, 4.25%, 7/15/97 . . . . . . . . . . . . . . . . . . . . 1,000,000 1,000,262
Erie Cnty., NY RAN, 4.50%, 6/25/98 . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,006,628
Franklin Cnty., NY IDA RAN, McAdam Cheese Co. Project, 4.20%(1) . . . . . . . . . 600,000 600,000
Hempstead Town, NY GOB, AMBAC Insured, 5%, 2/15/98 . . . . . . . . . . . . . . . 2,572,000 2,588,756
Monroe Cnty., NY RAN, 4.25%, 12/12/97 . . . . . . . . . . . . . . . . . . . . . . 20,050,000 20,105,499
NY PAU RB, Series SG4, 4.35%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 2,295,000 2,295,001
NYC HDC Multifamily Mtg. RB, Columbus Project, Series A, 4.10%(1) . . . . . . . . 2,800,000 2,800,000
NYC HDC Multifamily Mtg. RB, James Tower Development, Series A, 4.10%(1) . . . . 3,000,000 3,000,000
NYC Health & Hospital Corp. RB, Series D, 4.10%(1) . . . . . . . . . . . . . . . 1,500,000 1,500,000
NYC IDA RB, Brooklyn Navy Yard Cogeneration, Series B, 4.15%(1) . . . . . . . . . 15,000,000 15,000,000
NYC IDA RB, Brooklyn Navy Yard Cogeneration, Series A, 4.20%(1) . . . . . . . . . 800,000 799,988
NYC Trust Cultural Resources RRB, American Museum of Natural History, Series A,
MBIA Insured, 4.05%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000 2,200,042
NYC Trust Cultural Resources RRB, American Museum of Natural History, Series B,
MBIA Insured, 4.05%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 800,000
NYS DA COP, Rockefeller University, 3.52%(1) . . . . . . . . . . . . . . . . . . 500,000 500,013
NYS Environmental Quality GOB, 3.70%, 8/27/97 . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000
NYS ERDAUEF RB, L.I. Lighting Co., Series A, 4.095%(1) . . . . . . . . . . . . . 400,000 400,002
NYS ERDAUEF RB, L.I. Lighting Co., Series B, 4.20%(1) . . . . . . . . . . . . . . 700,000 700,000
NYS ERDAUPC RRB, Orange/Rockland Utility Project,
Series A, AMBAC Insured, 4.05%(1) . . . . . . . . . . . . . . . . . . . . . . 800,000 799,998
NYS LGAC RB, Series SG100, MBIA Insured, 3.75%, 7/24/97 . . . . . . . . . . . . . 10,420,000 10,420,000
NYS LGAC RB, Series SG99, MBIA Insured, 3.75%, 7/24/97(2) . . . . . . . . . . . . 17,195,000 17,195,000
NYS MCFFA RB, Lenox Hill Hospital Project, Series A, 4.10%(1) . . . . . . . . . . 4,300,000 4,299,991
NYS MCFFA RRB, Mental Health Services, Series A, 8.875%, 8/15/97(2) . . . . . . . 1,550,000 1,590,362
NYS TBTAU Beneficial Interest COP, MBIA Insured, 3.80%, 7/15/97(2) . . . . . . . 3,300,000 3,300,000
NYS TBTAU COP, Series A, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . 9,700,000 9,700,000
--------------
104,601,542
--------------
NORTH CAROLINA-0.4%
NC National Bank Pooled Tax-Exempt Trust COP, Series 1990A, 4.283%(1) . . . . . . 3,830,000 3,830,000
NC National Bank Pooled Tax-Exempt Trust COP, Series 1990B, 4.20%(1) . . . . . . 2,015,000 2,015,000
--------------
5,845,000
--------------
</TABLE>
9
<PAGE> 10
STATEMENT OF INVESTMENTS (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
NORTH DAKOTA-0.1%
Bismarck, ND IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . $ 800,000 $ 800,000
Bismarck, ND IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . 1,500,000 1,500,000
--------------
2,300,000
--------------
OHIO-6.0%
Coshocton Cnty., OH Hospital FA RB, Coshocton Cnty. Memorial Hospital Project,
4.26%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,500,000
Cuyahoga Cnty., OH IDV RB, Southwest LP, 3.75%, 12/1/97(2) . . . . . . . . . . . 2,015,000 2,015,000
Gallia Cnty., OH IDV Mtg. RRB, Jackson Pike Assn., 3.75%, 12/15/97(2) . . . . . . 4,040,000 4,040,000
Greene Cnty., OH IDV RRB, SuperValu Holdings, Inc. Project, 4.15%(1) . . . . . . 1,000,000 1,000,000
Lorain Cnty., OH Hospital Facilities RB, Catholic Health Care Partners, 3.80%,
7/3/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000
Lucas Cnty., OH IDV RRB, H.H. Motel, Inc. Project, 4.20%(1) . . . . . . . . . . . 3,275,000 3,275,000
Marion Cnty., OH Hospital RB, Pooled Lease Program, 4.20%(1) . . . . . . . . . . 6,560,000 6,560,000
Marion Cnty., OH Hospital RB, Pooled Lease Program, 4.20%(1) . . . . . . . . . . 3,460,000 3,460,000
Merchant & Mechanics Tax-Exempt Mtg. Bond Trust RB, 3.70%, 9/1/97(2) . . . . . . 925,000 925,000
Miami Valley, OH Tax-Exempt Mtg. Trust RB, Series 86, 4.88%, 10/15/97(2) . . . . 2,765,000 2,765,000
OH Air Quality DAU PC RRB, Series B, 3.85%, 10/9/97 . . . . . . . . . . . . . . . 4,655,000 4,655,000
OH Water DAU PC Facilities RB, Duquesne Commercial Paper, Series A, 3.85%,
10/9/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,955,000 33,955,000
Scioto Cnty., OH HCF RB, Hill View Retirement Center, 3.90%,
12/1/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,815,000 2,815,000
Toledo, OH City Services Special Assessment Nts., 4.15%(1) . . . . . . . . . . . 2,720,000 2,720,000
Warren Cnty., OH IDV RRB, Liquid Container Project, 4.25%(1) . . . . . . . . . . 1,670,000 1,670,000
--------------
98,355,000
--------------
OKLAHOMA-0.6%
Claremore, OK Industrial & Redevelopment Authority RRB, Worthington Cylinder
Project, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,220,000 2,220,000
Cleveland Cnty., OK Public Facilities RB, Hunt Development Project, Series A,
4.40%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,000,000
Mid-West, OK Tax-Exempt Mtg. Board Trust RB, 3.85%(1) . . . . . . . . . . . . . . 820,000 820,000
Tulsa, OK Industrial Authority RB, 3.60%(1) . . . . . . . . . . . . . . . . . . . 6,500,000 6,500,000
--------------
10,540,000
--------------
OREGON-0.6%
Hillsboro, OR RB, Oregon Graduate Institute, 4.20%(1) . . . . . . . . . . . . . . 6,900,000 6,900,000
OR Economic & IDV Commission RB, Eagle-Picher Industries Project, 4%(1) . . . . . 3,600,000 3,600,000
--------------
10,500,000
--------------
</TABLE>
10
<PAGE> 11
STATEMENT OF INVESTMENTS (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
PENNSYLVANIA-1.9%
Delaware Cnty., PA IDA PC RRB, Philadelphia Electric Co., FGIC Insured, 3.65%,
7/23/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000,000 $ 10,000,000
Montgomery Cnty., PA IDAU RB, Quaker Chemical Corp. Project, 3.954%(1) . . . . . 1,600,000 1,600,000
PA HEFAU RB, Council Independent Colleges, Series A3, 4.75%, 4/1/98(2) . . . . . 2,600,000 2,615,102
PA HEFAU RB, Council Independent Colleges, Series A4, 4.75%, 4/1/98 . . . . . . . 1,200,000 1,206,970
PA Higher Education University Funding Obligations RB, Temple University,
4.75%, 5/18/98(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000,000 16,114,996
--------------
31,537,068
--------------
SOUTH CAROLINA-3.4%
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 2, 3.90%, 11/1/97(2) . . . 4,407,500 4,407,500
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 3, 3.50%, 7/1/97(2) . . . . 9,452,500 9,452,500
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 6, 3.70%, 10/1/97(2) . . . 8,075,000 8,075,000
Dorchester Cnty., SC PC Facilities RRB, The BOC Group, Inc. Project, 4.20%(1) . . 3,500,000 3,500,000
Piedmont, SC MPA Electrical RRB, Series D, MBIA Insured, 4.15%(1) . . . . . . . . 15,000,000 15,000,000
SC Jobs & EDAU RB, Wellman Income Project, 4.30%(1) . . . . . . . . . . . . . . . 1,000,000 1,000,000
SC Public Service Authority RB, Series 182, MBIA Insured, 4.25%(1) . . . . . . . 14,200,000 14,200,000
--------------
55,635,000
--------------
SOUTH DAKOTA-2.1%
Grant Cnty., SD PC RRB, Otter Tail Power Co. Project, 4.20%(1) . . . . . . . . . 10,400,000 10,400,000
SD Health & Educational Facilities RB, Sioux Valley Hospital Issue, 4.20%(1) . . 19,700,000 19,700,000
Watertown, SD IDV RRB, SuperValu Stores, Inc. Project, 4.15%(1) . . . . . . . . . 3,900,000 3,900,000
--------------
34,000,000
--------------
TENNESSEE-2.1%
Clarksville, TN Public Building Authority RB, Pooled Financing-Tennessee
Municipal Bond Fund, 4.20%(1) . . . . . . . . . . . . . . . . . . . . . . . . 10,800,000 10,800,000
Dayton, TN IDV Board RRB, La-Z-Boy Chair Co. Project, 4.20%(1) . . . . . . . . . 4,350,000 4,350,000
Knox Cnty., TN IDV Board RB, Weisgarber Partners, FGIC Insured, 3.85%(1) . . . . 3,000,000 3,000,000
Metropolitan Government of Nashville & Davidson Cnty., TN Educational &
HF Board RB, Vanderbilt University Project, Series 1985B, 3.95%, 5/1/98(2) . . 2,500,000 2,500,000
Metropolitan Government of Nashville & Davidson Cnty., TN MH RB, Arbor Crest
Project, Series B, 4.20%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 3,550,000 3,550,000
Rutherford Cnty., TN IDV Board Industrial Building RB, Derby Industries, Inc.
Project, 4.30%(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,345,000 1,345,000
TN GOB, 5%, 5/1/98(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,640,000 8,716,615
--------------
34,261,615
--------------
</TABLE>
11
<PAGE> 12
STATEMENT OF INVESTMENTS (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
TEXAS-12.7%
Angelina & Neches TX River Authority PC RRB,
Temple-Inland Forest Project, 4.35%(1) . . . . . . . . . . . . . . . . . . . . $ 7,350,000 $ 7,350,000
Greater East TX HEAU RRB, Student Loans, Series A, 4.10%, 5/1/98 . . . . . . . . 4,700,000 4,700,000
Gulf Coast, TX IDAU Marine Terminal RB, Amoco Oil Project, 3.75%, 12/1/97(2) . . 8,065,000 8,065,000
Harris Cnty., TX Criminal Justice Center RB, Series SG96, FGIC
Insured, 3.90%, 8/14/97 . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,475,000 7,475,000
Harris Cnty., TX Toll Road COP, 3.97%(1) . . . . . . . . . . . . . . . . . . . . 9,500,000 9,500,000
Hockley Cnty., TX IDV Corp. PC RB, Amoco Project-Standard
Oil Co., 3.60%, 9/1/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000
Houston, TX WSS RB, Series SG77, 4.35%(1) . . . . . . . . . . . . . . . . . . . . 35,000,000 35,000,000
San Antonio, TX Electric & Gas RRB, Series SG105, 3.85%, 8/7/97 . . . . . . . . . 20,000,000 20,000,000
Travis Cnty., TX Housing Finance Corp. MH RB, Bent Oaks Apts., 4.25%(1) . . . . . 4,400,000 4,400,000
TX Tax & RAN, 4.75%, 8/29/97 . . . . . . . . . . . . . . . . . . . . . . . . . . 78,150,000 78,253,678
TX Turnpike Authority RB, Dallas Northtollway, Series SG70, 4.35%(1) . . . . . . 15,325,000 15,325,000
--------------
210,068,678
--------------
UTAH-0.5%
UT HFA MH RRB, Candlestick Apts. Project, 4.15%(1) . . . . . . . . . . . . . . . 6,400,000 6,400,000
Weber Cnty., UT IDV RRB, Parker Properties, Inc. Project, 4.20%(1) . . . . . . . 2,600,000 2,600,000
--------------
9,000,000
--------------
VERMONT-0.3%
VT Educational & Health Buildings Financing Agency RB, Middlebury College
Project, Series 1988A, 3.95%, 5/1/98(2) . . . . . . . . . . . . . . . . . . . 4,700,000 4,700,000
VT IDAU RB, Sherbern Corp., Series 1998, 3.60%(1) . . . . . . . . . . . . . . . . 1,005,000 1,005,000
--------------
5,705,000
--------------
WASHINGTON-1.6%
Port Longview, WA IDV RB, Longview Fibre Co. Project, 4.35%(1) . . . . . . . . . 5,000,000 5,000,000
Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 1, 4.10%(1) . . . 1,010,000 1,010,000
Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 2, 4.10%(1) . . . 1,725,000 1,725,000
Seattle, WA IDV Corp. RB, RICS LP, 4.10%(1) . . . . . . . . . . . . . . . . . . . 4,950,000 4,950,000
WA GORB, Series 1995C, 4.25%(1) . . . . . . . . . . . . . . . . . . . . . . . . . 13,100,000 13,100,000
--------------
25,785,000
--------------
WEST VIRGINIA-0.3%
Beckley, WV RAN, Series A, 4.20%(1) . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,500,000
Cabell Cnty., WV BOE GOB, MBIA Insured, 8%, 5/1/98 . . . . . . . . . . . . . . . 2,625,000 2,712,051
--------------
4,212,051
--------------
</TABLE>
12
<PAGE> 13
STATEMENT OF INVESTMENTS (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ --------------
<S> <C> <C>
WYOMING-0.2%
Uinta Cnty., WY PC RB, AMOCO Standard Oil Co. of Indiana Project, 3.90%,
12/1/97(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 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(2) . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 200,016
----------- --------------
Total Investments, at Value . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.7% 1,693,607,897
Liabilities in Excess of Other Assets . . . . . . . . . . . . . . . . . . . . . . (2.7) (44,861,768)
----------- --------------
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $1,648,746,129
=========== ==============
</TABLE>
13
<PAGE> 14
STATEMENT OF INVESTMENTS (Continued)
Centennial Tax Exempt Trust
To simplify the listings of securities abbreviations are used per the table
below:
<TABLE>
<S> <C>
BOE Board of Education HFAU Health Facilities Authority
CD Commercial Development HFFAU Health Facilities Finance Authority
COP Certificates of Participation IDV Industrial Development
DA Dormitory Authority IDA Industrial Development Agency
DAU Development Authority IDAU Industrial Development Authority
ED Economic Development LGAC Local Government Assistance Corp.
EDAU Economic Development Authority L.I. Long Island
EDFAU Economic Development Finance Authority MCFFA Medical Care Facilities Finance Agency
ERDAUEF Energy Research & Development Authority Electric Facilities MH Multifamily Housing
ERDAUPC Energy Research & Development Authority Pollution Control MPA Municipal Power Agency
FA Facilities Authority NYC New York City
FAU Finance Authority NYS New York State
GOB General Obligation Bonds PAU Power Authority
GORB General Obligation Refunding Bonds PC Pollution Control
HA Hospital Authority PCFAU Pollution Control Finance Authority
HAU Housing Authority PPA Public Power Agency
HCF Health Care Facilities RA Redevelopment Agency
HDC Housing Development Corp. RAN Revenue Anticipation Nts.
HEAU Higher Education Authority RB Revenue Bonds
HEFAU Higher Educational Facilities Authority RR Resource Recovery
HF Health Facilities RRB Revenue Refunding Bonds
HFA Housing Finance Agency SFM Single Family Mortgage
SWD Solid Waste Disposal
TBTAU Triborough Bridge & Tunnel Authority
WSS Water & Sewer System
</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, 1997. 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.
14
<PAGE> 15
STATEMENT OF ASSETS AND LIABILITIES June 30, 1997
Centennial Tax Exempt Trust
<TABLE>
<S> <C>
ASSETS:
Investments, at value-see accompanying statement . . . . . . . . . . . . . . . . . . . . . $1,693,607,897
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,677
Receivables:
Shares of beneficial interest sold . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,202,566
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,950,146
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,069
--------------
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,746,839,355
--------------
LIABILITIES:
Payables and other liabilities:
Investments purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,537,733
Shares of beneficial interest redeemed . . . . . . . . . . . . . . . . . . . . . . . . . 18,476,819
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,668,348
Service plan fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,349
Transfer and shareholder servicing agent fees . . . . . . . . . . . . . . . . . . . . . 56,005
Trustees' fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,158
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218,814
--------------
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,093,226
--------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,648,746,129
==============
COMPOSITION OF NET ASSETS:
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,648,641,002
Accumulated net realized gain on investment transactions . . . . . . . . . . . . . . . . . 105,127
--------------
NET ASSETS-applicable to 1,648,656,970 shares of beneficial
interest outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,648,746,129
==============
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE . . . . . . . . . . . . . . $1.00
</TABLE>
See accompanying Notes to Financial Statements.
15
<PAGE> 16
STATEMENT OF OPERATIONS For the Year Ended June 30, 1997
Centennial Tax Exempt Trust
<TABLE>
<S> <C>
INVESTMENT INCOME-Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $58,330,447
-----------
EXPENSES:
Management fees-Note 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,858,451
Service plan fees-Note 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,177,577
Transfer and shareholder servicing agent fees-Note 3 . . . . . . . . . . . . . . . . . . . 720,214
Registration and filing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364,067
Custodian fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251,398
Shareholder reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,016
Legal and auditing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,178
Trustees' fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,685
Insurance expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,792
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,308
-----------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,521,686
Less expenses paid indirectly-Note 3 . . . . . . . . . . . . . . . . . . . . . . . . . . (169,628)
-----------
Net expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,352,058
-----------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,978,389
NET REALIZED GAIN ON INVESTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,199
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $47,094,588
===========
</TABLE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended June 30,
---------------------------------------
1997 1996
--------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . . $ 46,978,389 $ 46,013,851
Net realized gain . . . . . . . . . . . . . . . . . . . . . . . . 116,199 244,254
-------------- --------------
Net increase in net assets resulting from operations . . . . . . 47,094,588 46,258,105
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS . . . . . . . . . . . (47,224,231) (46,061,715)
BENEFICIAL INTEREST TRANSACTIONS:
Net increase in net assets resulting from beneficial interest
transactions-Note 2 . . . . . . . . . . . . . . . . . . . . . 222,881,798 110,876,607
-------------- --------------
NET ASSETS:
Total increase . . . . . . . . . . . . . . . . . . . . . . . . . 222,752,155 111,072,997
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . 1,425,993,974 1,314,920,977
-------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $1,648,746,129 $1,425,993,974
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
16
<PAGE> 17
FINANCIAL HIGHLIGHTS
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Year Ended June 30,
---------------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<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 . . . . . . . . . . . . . . .03 .03 .03 .02 .02
Dividends and distributions to shareholders . . . . . . . . (.03) (.03) (.03) (.02) (.02)
------- ------- ------- ------- -------
Net asset value, end of period . . . . . . . . . . . . . . $1.00 $1.00 $1.00 $1.00 $1.00
======= ======= ======= ======= =======
TOTAL RETURN, AT
NET ASSET VALUE(1) . . . . . . . . . . . . . . . . . . . 3.01% 3.16% 3.17% 1.90% 2.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) . . . . . . . . . . $1,649 $1,426 $1,315 $1,039 $981
Average net assets (in millions) . . . . . . . . . . . . . $1,591 $1,473 $1,127 $1,057 $977
Ratios to average net assets:
Net investment income . . . . . . . . . . . . . . . . . . 2.95% 3.12% 3.13% 1.87% 2.08%
Expenses(2) . . . . . . . . . . . . . . . . . . . . . . . . 0.72% 0.72% 0.73% 0.76% 0.76%
</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
reflect changes in net investment income only.
2. Beginning in fiscal 1995, the expense ratio reflects the effect of gross
expenses paid indirectly by the Trust. Prior year expense ratios have not
been adjusted.
See accompanying Notes to Financial Statements.
17
<PAGE> 18
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 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.
18
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (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>
Year Ended June 30, 1997 Year Ended June 30, 1996
---------------------------------- ---------------------------------
Shares Amount Shares Amount
--------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C>
Sold . . . . . . . . . . . 4,793,933,452 $ 4,793,933,452 4,357,729,565 $ 4,357,729,565
Dividends and distributions
reinvested . . . . . . . . 45,861,059 45,861,059 45,904,203 45,904,203
Redeemed . . . . . . . . . (4,616,912,713) (4,616,912,713) (4,292,757,161) (4,292,757,161)
-------------- --------------- --------------- ---------------
Net increase . . . . . . . 222,881,798 $ 222,881,798 110,876,607 $ 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% 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. Until Trust net assets
reach $1.5 billion, the annual fee payable to the Manager will be reduced by
$100,000.
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 Trust.
Under an approved service plan, the Trust may expend up to 0.20% of its net
assets annually to reimburse the Manager, as distributor, for costs incurred in
connection with the personal service and maintenance of accounts that hold
shares of the Trust, including amounts paid to brokers, dealers, banks and
other institutions. During the year ended June 30, 1997, the Trust paid $10,400
to a broker/dealer affiliated with the Manager as reimbursement for
distribution-related expenses.
19
<PAGE> 20
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,
1997, the related statement of operations for the year then ended, the
statements of changes in net assets for the years ended June 30, 1997 and 1996,
and the financial highlights for the period July 1, 1992 to June 30, 1997.
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, 1997 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, 1997, 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, 1997
20
<PAGE> 21
FEDERAL INCOME TAX INFORMATION (Unaudited)
Centennial Tax Exempt Trust
In early 1998, shareholders will receive information regarding all dividends
and distributions paid to them by the Trust during calendar year 1997.
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,
1997 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 adviser for specific guidance.
21
<PAGE> 22
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22
<PAGE> 23
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23
<PAGE> 24
[PHOTO]
1997 ANNUAL 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.
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.)
303-768-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5143
Denver, CO 80217-5143
RA0160.001.0697 [LOGO] Printed on recycled paper.
24
