1998 Semiannual Report
Centennial
Tax Exempt
Trust
December 31, 1998
<PAGE>
Dear Shareholder:
When international markets become unsteady, investors around the world often
look to U.S. government securities for safety and security. That clearly took
place in much of 1998, as Asia's financial crisis continued to form a backdrop
to the global economy. At various times during the year, demand for Treasury
bills surged, boosting prices and reducing yields, particularly in late summer
as Russia's economy weakened.
With a global recession looming, the Federal Reserve Board went into action. In
the fall, the Fed cut short-term interest rates three times to stimulate the
U.S. economy, and dozens of central banks around the world followed suit. While
these actions invigorated the U.S. stock market in particular, money market
instruments, including tax-exempt issues in the Centennial Tax Exempt Trust,
tended to offer lower yields as a result. However, because the demand for
taxable Treasury bills was so high, causing T-bill prices to surge and their
yields to plunge, T-bill yields weren't much higher than tax-exempts during the
second half of the year. In fact, when taxes are taken into account, tax-exempt
securities were particularly attractive in comparison.
For the six-month period that ended December 31, 1998, the Trust provided a
compounded annual yield of 2.73%. Without compounding, the corresponding yield
was 2.70%. For investors in the 36% federal tax bracket, this is equivalent to a
taxable yield of 4.27% and 4.22%, with and without compounding, respectively.
The seven-day annualized yields, with and without compounding, on December 31,
1998, were 2.78% and 2.74%, respectively.(1) It is 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 be able to maintain a
stable $1.00 share price in the future.
During the last six-month period, we focused on non-callable rather than
callable securities. Non-callable securities, which cannot be prematurely repaid
by the issuer, earn higher returns in the portfolio. In a period of declining
interest rates, a non-callable structure is particularly valuable. Otherwise,
the issuer would be able to repay the security, and we would have to reinvest
the money at lower yields. With inflation throughout the world extremely low by
historical standards, and economic growth sluggish, we believe that interest
rates are likely to decline further.
1. Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
<PAGE>
As we move into 1999, we will continue to monitor interest rates, the various
municipal economies and the credit quality of the securities in the portfolio.
To the extent that we purchase securities backed by banking institutions, we
have been careful to avoid banks that have heavy exposure to Asia. Indeed, all
of the banks guaranteeing securities in the portfolio carry very high ratings by
national credit rating agencies. Although we will continue to search for
tax-exempt yield, we will always keep in mind your objectives of safety and
liquidity.
Thank you for your confidence in Centennial Tax Exempt Trust. We look forward to
helping you reach your investment goals of safety, liquidity and attractive
yield.
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 25, 1999
2
<PAGE>
Statement of Investments December 31, 1998 (Unaudited)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Short-Term Tax-Exempt Obligations--103.4%
Alaska--0.5%
Valdez, AK Marine Term RB, Arco Transition Project, Series A,
3.25%, 3/12/99(1) ........................................................... $ 8,400,000 $ 8,400,000
------------
Arizona--2.2%
AZ HFAU RB, Blood Systems, Inc., 4.05%(2) ...................................... 8,795,000 8,795,000
Maricopa Cnty., AZ GORB, FGIC Insured, 6.25%, 7/1/99 ........................... 2,000,000 2,031,776
Maricopa Cnty., AZ IDAU SWD RB, Rainbow Valley Landfill Project,
Series A, 4%, 4/30/99(1) .................................................... 4,000,000 4,000,000
Phoenix, AZ Airport RRB, Series A, MBIA Insured, 5.40%, 7/1/99 ................. 2,000,000 2,023,943
Phoenix, AZ IDAU MH RRB, Paradise Lakes Apts. Project, 1995 Series, 4.15%(2) ... 22,500,000 22,500,000
Tucson, AZ IDAU RB, Geronimo Building Renovation Project, 4%, 12/15/99(1) ...... 965,000 965,000
------------
40,315,719
------------
Arkansas--0.0%
Subiaco, AR IDV RB, Cloves Gear & Products, Inc., 4.20%(2) ..................... 135,000 135,000
------------
California--7.6%
ABN AMRO Munitops Certificates, Series 1998-10, 3.35%(2)(3) .................... 1,000,000 1,000,000
Agoura Hills, CA MH RRB, Oakridge Apts. Project, 3.90%(2) ...................... 2,200,000 2,200,030
Anaheim, CA HAU MH RRB, Park Vista Apts., Series A, 3.70%(2) ................... 1,000,000 1,000,000
CA CDAU Apartment Development RRB, Whispering Winds Apts.,
Series D, 4.10%(2) .......................................................... 4,500,000 4,500,000
CA GOB Tendered Option Certificates, Series 1998A, MBIA Insured, 4.10%(2)(3) ... 3,057,000 3,057,000
CA HEAU Student Loan RB, Series C, 3.95%(2) .................................... 4,000,000 4,000,000
CA HFA RB, Series C, 3.55%, 2/1/99 ............................................. 1,255,000 1,255,000
CA HFFAU RB, Pooled Loan Program, Series B, FGIC Insured, 3.60%(2) ............. 500,000 500,000
CA HFFAU RRB, Catholic West Project, Series C, MBIA Insured, 3.60%(2) .......... 5,000,000 4,999,946
CA Municipal RB, Series SG89, MBIA Insured, 3.93%(2) ........................... 7,425,000 7,425,000
CA RAN, 4%, 6/30/99 ............................................................ 74,210,000 74,567,869
CA Statewide CDC RB, Fibrebond, Inc., 3.90%(2) ................................. 1,610,000 1,609,985
Huntington Park, CA RA MH RB, Casa Rita Apts., Series A, 3.80%(2) .............. 1,100,000 1,100,000
Los Angeles Cnty., CA Pension Obligation RRB, Series A, 3.70%(2) ............... 3,000,000 2,999,957
Los Angeles, CA Airport RB, Series SG61, 3.92%(2) .............................. 1,055,000 1,055,000
Modesto, CA Irrigation District FAU RB, Series SG66, 3.88%(2) .................. 500,000 500,000
Oceanside, CA MH RRB, Lakeridge Apts. Project, 4.25%(2) ........................ 3,000,000 2,999,999
Pittsburg, CA Mortgage Obligation RRB, Series A, 4.20%(2) ...................... 4,470,000 4,470,000
Riverside Cnty., CA Tax & RAN, 4.50%, 9/30/99 .................................. 5,000,000 5,056,292
Sacramento Cnty., CA RB, Trust REG D, Series A28, 3.95%(2) ..................... 12,000,000 12,000,000
San Bernardino Cnty, CA Tax & RAN, 4.50%, 9/30/99 .............................. 500,000 505,715
</TABLE>
3
<PAGE>
Statement of Investments December 31, 1998 (Unaudited) (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
California (Continued)
San Francisco, CA City & Cnty. Redevelopment FAU RRB, Yerba Buena
Garden, 3.90%(2) ............................................................ $ 415,000 $ 415,000
Southern CA PAU RRB, Palo Verde Project, Series B, AMBAC Insured, 3.65%(2) ..... 2,400,000 2,400,000
------------
139,616,793
------------
Colorado--2.2%
Arapahoe Cnty., CO MH RRB, Hunters Run Rental Housing, 4.05%(2) ................ 25,600,000 25,600,000
Denver, CO City & Cnty. MH RRB, Parliament Apts. Project, 4.10%(2) ............. 10,000,000 10,000,000
Superior Metropolitan District No. 3, CO GOB, 4.05%(2) ......................... 5,000,000 5,000,000
------------
40,600,000
------------
Delaware--1.4%
DE EDAU IDV RRB, Delaware CleanPower Project, Series A, 4.20%(2) ............... 10,000,000 10,000,000
DE EDAU IDV RRB, Delaware CleanPower Project, Series C, 4.11%(2) ............... 8,000,000 8,000,000
DE EDAU RB, Hospital Billing Project, Series A, BIG Insured, 4.25%(2) .......... 6,100,000 6,100,000
DE Transportation Authority System RRB, Sr. Lien, AMBAC Insured,
5.25%, 7/1/99 ............................................................... 900,000 908,290
------------
25,008,290
------------
Florida--7.0%
Dade Cnty., FL WSS RB, FGIC Insured, 3.10%, 1/1/99(1) .......................... 9,900,000 9,900,000
Escambia Cnty., FL HFAU RRB, Florida Convertible Centers Project,
Series A, 3.45%(2) .......................................................... 1,200,000 1,200,000
FL BOE Capital Outlay Public Education Refunding Bonds, Series A, 3.90%(2) ..... 13,230,000 13,230,000
FL HFA MH RRB, Monterey Lake Project, 3.45%(2) ................................. 19,965,000 19,965,000
FL TUAU RB, Prerefunded, 7.75%, 7/1/99(1) ...................................... 1,250,000 1,301,630
FL TUAU RB, Series A, FGIC Insured, 3.10%, 7/1/99(1) ........................... 14,850,000 14,850,000
Hillsboro Cnty., FL IDV PC RB, Tampa Electric Co., MBIA Insured,
3.70%, 1/15/99(1) ........................................................... 35,590,000 35,590,000
Jacksonville, FL IDV RRB, Airport Hotel Project, 4%(2) ......................... 3,000,000 3,000,000
Orange Cnty., FL Housing FAU MH RRB, Monterey Project, Series B, 4.25%(2) ...... 4,740,000 4,740,000
Putnam Cnty., FL PC DAU RRB, Seminole Electric Co-op, Series D,
2.85%, 6/15/99(1) ........................................................... 20,000,000 20,000,000
St. Lucie Cnty., FL RB, Florida Power & Light, 3.25%, 3/12/99(1) ............... 5,000,000 5,000,000
------------
128,776,630
------------
</TABLE>
4
<PAGE>
Statement of Investments December 31, 1998 (Unaudited) (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Georgia--3.7%
Atlanta, GA Urban Residential FAU MH RB, New Community East Lake
Project, 4.15%(2) ........................................................... $ 2,000,000 $ 2,000,000
Cobb Cnty., GA HAU MH RRB, Terrell Mill Project, 4.15%(2)(3) ................... 9,400,000 9,400,000
Fulton Cnty., GA DAU RB, Georgia Tech Athletic Assn., Inc., 4%(2) .............. 3,000,000 3,000,000
Fulton Cnty., GA DAU RB, Lovett School Project, 4%(2) .......................... 3,000,000 3,000,000
Fulton Cnty., GA DAU RB, Robert W. Woodruff Arts Project, 4%(2) ................ 2,000,000 2,000,000
Fulton Cnty., GA Residential Care Facilities RB, Canterbury Court Project,
Series A, 4%(2) ............................................................. 2,255,000 2,255,000
GA GOB, Series 1995B, 4.15%(2) ................................................. 11,880,000 11,880,000
Gainesville, GA RA RB, Riverside Military Academy, 4.10%(2) .................... 10,000,000 10,000,000
Roswell, GA HAU MH RRB, Oxford Project, 4.10%(2) ............................... 23,610,000 23,610,000
------------
67,145,000
------------
Idaho--0.1%
Custer Cnty., ID IDV SWD RB, Hecla Mining Co. Project, 4.20%(2) ................ 1,000,000 1,000,000
------------
Illinois--6.1%
ABN AMRO Munitops Certificates/Chicago, IL, Trust 1998-3, 4.657%(2)(3) ......... 8,735,000 8,735,000
Chicago, IL Lakefront Millennium Parking Facilities, 3.25%, 4/1/99(1) .......... 22,495,000 22,495,000
Elk Grove Village, IL IDV RB, La Quinta Motor Inns, Inc., 3.65%(2) ............. 2,300,000 2,300,000
IL Educational FA RB, National-Louis University, 3.95%(2) ...................... 6,200,000 6,200,000
IL HFAU RB, Delnor Community Hospital Project, Prerefunded, 8%, 5/15/99(1) ..... 7,000,000 7,257,229
IL HFAU RB, Lake Forest Hospital Project, 4.25%(2) ............................. 10,565,000 10,565,000
IL HFAU RRB, Advocate Health Care, Series B, 4%(2) ............................. 25,540,000 25,540,000
IL IDAU RRB, SuperValu Stores, Inc. Project, 3.95%(2) .......................... 5,000,000 5,000,000
IL Student Assistance Commission Student Loan RB, Series A, 3.80%(2) ........... 14,960,000 14,960,000
Lakemoor Village, IL MH Mtg. RB, Lakemoor Apts. Project, Series A,
3.65%, 1/27/99(1) ........................................................... 4,595,486 4,595,486
West Chicago, IL IDV RRB, Liquid Container Project, 4.05%(2) ................... 3,810,000 3,810,000
------------
111,457,715
------------
Indiana--4.1%
Dyer, IN HCF RRB, Regency Place, Series A-1, 4.20%(2) .......................... 3,315,000 3,315,000
Fort Wayne, IN HCF RRB, Health Quest, Series X-A, 4.20%(2) ..................... 3,215,000 3,215,000
Gary, IN Industrial Environmental Improvement RB, U.S. Steel Corp.
Project, 3.50%(2) ........................................................... 1,000,000 1,000,000
IN MPA RB, Power Supply System, MBIA Insured, 4.08%(2) ......................... 13,600,000 13,600,000
Indianapolis, IN HCF RRB, Health Quest, Series A, 4.20%(2) ..................... 3,980,000 3,980,000
Indianapolis, IN Local Public Improvement Revenue Nts., Series F,
3.50%, 7/12/99 .............................................................. 14,025,000 14,064,807
</TABLE>
5
<PAGE>
Statement of Investments December 31, 1998 (Unaudited) (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Indiana (Continued)
Indianapolis, IN Multifamily RB, Camby Housing Partners Project, 3.32%(2) ...... $ 5,400,000 $ 5,400,000
Marion Cnty., IN HA Hospital Facility RB, Indianapolis Osteopathic, 4.05%(2) ... 2,810,000 2,810,000
Merrillville, IN HCF RRB, Southlake, Series A-1, 3.95%(2) ...................... 4,110,000 4,110,000
Rockport, IN PC RRB, Indiana & Michigan Electric Co. Project,
Series A, 4.05%(2) .......................................................... 13,000,000 13,000,000
South Bend, IN HCF RRB, Fountainview, Series A-1, 3.95%(2) ..................... 3,135,000 3,135,000
St. Joseph Cnty., IN HA SPO Bonds, Madison Center, Inc. Project, 4.05%(2) ...... 6,420,000 6,420,000
St. Joseph Cnty., IN Industrial Educational Facilities RB, Holy Cross
College, 4.05%(2) ........................................................... 1,130,000 1,130,000
------------
75,179,807
------------
Kansas--1.4%
Burlington, KS Environmental Improvement RRB, K C Power & Light Co.
Project, Series B, 4.10%(2) ................................................. 19,800,000 19,800,000
Manhattan, KS Industrial RRB, Parker Hannifin, Inc. Project, 4.10%(2) .......... 6,000,000 6,000,000
Ottawa, KS IDV RB, Laich Industries Project, 4.20%(2) .......................... 525,000 525,000
------------
26,325,000
------------
Kentucky--0.8%
Jamestown, KY Industrial Building RB, Union Underwear Co., 3.75%(2) ............ 1,000,000 1,000,000
KY Asset/Liability Commission General Fund Tax & RAN, Series A,
4.50% 6/25/99 ............................................................... 5,000,000 5,026,656
KY Asset/Liability Commission General Fund Tax & RAN, Series B, 4%, 6/25/99 .... 9,000,000 9,028,249
------------
15,054,905
------------
Maryland--1.1%
MD Department of Transportation RB, Prerefunded, Second Issue,
6.80%, 11/1/99(1) ........................................................... 3,155,000 3,314,150
MD Health & HEFAU RB, Mercy Medical Center, Prerefunded, 8%, 7/1/99(1) ......... 6,500,000 6,788,148
MD Health & HEFAU RB, University of Maryland Pooled Loan Program,
Series B, 3.75%(2) .......................................................... 985,000 985,000
Montgomery Cnty., MD MH Opportunities Commission RB,
Oakwood-A-Remarket, 4.05%(2) ................................................ 10,000,000 10,000,000
------------
21,087,298
------------
</TABLE>
6
<PAGE>
Statement of Investments December 31, 1998 (Unaudited) (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Massachusetts--3.2%
MA CMWLTH General Obligation Consolidation Loan, 3.70%, 1/15/99(1) ............. $15,245,000 $ 15,245,000
MA Health & Education FA RRB, Boston University, Series H, 3%, 8/25/99(1) ...... 22,500,000 22,500,000
MA Municipal Wholesale Electric Co. Power Supply System RRB, Series C,
MBIA Insured, 3.90%(2) ...................................................... 10,000,000 10,000,000
MA Water Resource Authority Multi-Modal RRB, Sub. Lien, Series D,
FGIC Insured, 3.90%(2)(4) ................................................... 10,000,000 10,000,000
North Andover Town, MA Industrial RB, Atlee-Oak Realty Trust
of Delaware, Inc., 4.28%(2) ................................................. 350,000 350,000
------------
58,095,000
------------
Michigan--0.7%
Madison Heights, MI ED RB, Red Roof Inns Project, 3.14%(2) ..................... 1,000,000 1,000,000
MI Hospital FAU RRB, Mount Clemens General Hospital, 4%(2) ..................... 9,220,000 9,220,000
MI Job DAU RB, East Lansing Residence Associates Project, 3.05%(2) ............. 1,900,000 1,900,000
------------
12,120,000
------------
Minnesota--2.1%
Blaine, MN IDV RRB, SuperValu Stores, Inc. Project, 3.95%(2) ................... 5,500,000 5,500,000
Burnsville, MN CD RB, SuperValu Stores, Inc. Project, Series 83, 3.95%(2) ...... 5,500,000 5,500,000
Dakota Cnty., MN MH & Redevelopment Mtg. RB, Westwood Ridge
Rental Housing Project, Series A, 4%(2) ..................................... 4,000,000 4,000,000
Maplewood, MN CD RRB, 5.27%(2) ................................................. 235,000 235,000
Minneapolis, MN CD RRB, Minnehaha/Lake Partners Project, 3.55%(2) .............. 2,750,000 2,750,000
New Ulm, MN Hospital Facilities RB, Health Center Systems, 3.85%(2) ............ 2,200,000 2,200,000
North Suburban Hospital District, MN RB, Anoka & Ramsey Cntys
Hospital Health Center, 3.85%(2) ............................................ 3,300,000 3,300,000
St. Paul, MN Housing & Redevelopment Authority RB, Science Museum
of Minnesota, Series B, 3.95%(2) ............................................ 5,600,000 5,600,000
St. Paul, MN POAU Tax Increment RB, Westgate Office & Industrial
Center Project, 3.85%(2) .................................................... 10,300,000 10,300,000
------------
39,385,000
------------
Montana--1.8%
MT Board Investment RR RB, Colstrip Project, 4.05%(2) .......................... 3,000,000 3,000,000
MT Tax & RAN, 3.50%, 6/30/99 ................................................... 30,000,000 30,102,181
------------
33,102,181
------------
</TABLE>
7
<PAGE>
Statement of Investments December 31, 1998 (Unaudited) (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Nevada--1.1%
NV Municipal Securities Trust Receipts, Series SG 114, 4.10%(2) ................ $20,350,000 $ 20,350,000
------------
New Hampshire--1.4%
NH Business PCFAU RRB, Series 1990-A, 3.45%, 5/4/99(1) ......................... 25,000,000 25,000,000
------------
New Jersey--4.9%
NJ EDAU Manufacturing Facilities RB, Commerce Center Project, 3.90%(2) ......... 3,700,000 3,700,019
NJ Tax & RAN, 3.35%, 2/9/99(1) ................................................. 25,000,000 25,000,000
NJ Tax & RAN, 3.35%, 2/16/99(1) ................................................ 20,000,000 20,000,000
NJ Tax & RAN, 3.35%, 2/17/99(1) ................................................ 40,000,000 40,000,000
Passaic Valley, NJ Water Commission RB, Sub-System, Series A, 4%, 11/16/99 ..... 2,000,000 2,014,802
------------
90,714,821
------------
New Mexico--0.5%
Albuquerque, NM Gross Receipts Tax RRB, MBIA Insured, 5%, 7/1/99 ............... 2,445,000 2,466,970
NM Tax & RAN, Series A, 3.75%, 6/30/99 ......................................... 7,000,000 7,026,198
------------
9,493,168
------------
New York--13.7%
Battery Park City Authority, NY RB, Prerefunded, 7.70%, 5/1/99(1) .............. 3,550,000 3,672,634
Buffalo, NY RAN, Series A, 3.75%, 7/27/99 ...................................... 500,000 502,096
Erie Cnty., NY RAN, 4%, 10/13/99 ............................................... 7,800,000 7,859,117
Franklin Cnty., NY IDA RAN, McAdam Cheese Co. Project, 4.10%(2) ................ 600,000 600,000
Great Neck, NY Unified Free SDI TAN, 3.75%, 6/30/99 ............................ 9,000,000 9,023,590
Greystone Tax Exempt Cerificates RB, Trust 1998-1, Sr. Certificate
Beneficial Ownership, 3.72%(2) .............................................. 30,800,000 30,800,000
L.I. PAU Electric System Sub. RB, 3.10%, 3/18/99(1) ............................ 20,000,000 20,000,000
L.I. PAU Electric System Sub. RB, 3.15%, 3/10/99(1) ............................ 34,000,000 34,000,000
NYC HDC MH RB, James Tower Development, Series A, 3.80%(2) ..................... 600,000 600,013
NYC Health & Hospital Corp. RB, Series D, 3.80%(2) ............................. 1,500,000 1,500,000
NYC IDA Civic Facility RB, Columbia Grammar School Project, 3.75%(2) ........... 900,000 899,984
NYC MTAU RB, 3.10%, 2/9/99(1) .................................................. 7,000,000 7,000,000
NYC MTAU Transportation Facilities RB, Series SG3 6, 3.10%, 1/1/99(1) .......... 10,200,000 10,200,000
NYC Municipal Assistance Corp. RRB, Series G, 4.10%, 7/1/99 .................... 10,000,000 10,038,703
NYC Trust Cultural Resource RB, Soloman R. Guggenheim, Series B, 5%(2) ......... 650,000 650,000
NYC Trust Cultural Resource RRB, American Museum of Natural History,
Series A, MBIA Insured, 3.80%(2) ............................................ 1,000,000 1,000,000
NYS DA COP, Rockefeller University, 4.10%(2) ................................... 500,000 500,012
NYS DA RB, Memorial Sloan Kettering Cancer Center, 3.15%, 2/1/99(1) ............ 2,000,000 2,000,000
NYS Environmental Quality GOB, 3%, 3/1/99(1) ................................... 1,250,000 1,250,000
NYS ERDAUEF RB, L.I. Lighting Co., Series A, 3.55%(2) .......................... 300,000 300,001
NYS ERDAUEF RB, L.I. Lighting Co., Series A, 3.85%(2) .......................... 100,000 100,001
NYS ERDAUEF RB, L.I. Lighting Co., Series B, 3.55%(2) .......................... 530,000 530,000
</TABLE>
8
<PAGE>
Statement of Investments December 31, 1998 (Unaudited) (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
New York (Continued)
NYS ERDAUEF RB, L.I. Lighting Co., Series B, 4.10%(2) .......................... $ 770,000 $ 770,002
NYS ERDAUPC RB, NYS Electric & Gas Corp., Series B, 3.20%, 10/15/99(1) ......... 700,000 700,000
NYS ERDAUPC RB, NYS Electric & Gas Corp., Series D, 3%, 12/1/99(1) ............. 5,500,000 5,500,000
NYS ERDAUPC RRB, NYS Electric & Gas Corp., Series B, 5.05%(2) .................. 800,000 800,000
NYS HFA RB, Normandie Court I Project, 4.10%(2) ................................ 3,410,000 3,410,007
NYS LGAC RB, Series A, 3.90%(2) ................................................ 1,800,000 1,799,987
NYS LGAC RB, Series SG100, MBIA Insured, 4.10%(1)(2) ........................... 10,420,000 10,420,000
NYS LGAC RB, Series SG99, MBIA Insured, 4.10%(1)(2) ............................ 29,195,000 29,195,000
NYS MAG RB, Series PT217, 3.15%, 5/6/99(1) ..................................... 5,625,000 5,625,000
NYS PAU RB, Series SG4, 4.10%(2) ............................................... 2,295,000 2,295,001
NYS TBTAU Beneficial Interest COP, MBIA Insured, 3.50%, 1/15/99(1) ............. 3,300,000 3,300,000
NYS UDC RB, Correctional Capital Facilities, Prerefunded, Series 1,
FSA Insured, 7.50%, 1/1/00(1) ............................................... 1,000,000 1,061,668
NYS Empire UDC RB, Series A, 4.10%(2) .......................................... 10,255,000 10,255,000
PAUNYNJ SPO Bonds, Series SG94, 4.13%(2) ....................................... 600,000 600,006
Suffolk Cnty., NY TAN, Series II, 4%, 9/9/99 ................................... 33,000,000 33,142,588
------------
251,900,410
------------
North Carolina--0.4%
NC GOUN, Series A, 4.75%, 4/1/99 ............................................... 8,000,000 8,037,823
------------
Ohio--0.9%
Gallia Cnty., OH IDV Mtg. RRB, Jackson Pike Assn., 3%, 6/15/99(1) .............. 3,625,000 3,625,000
Marion Cnty., OH Hospital RB, Pooled Lease Program, 4.05%(2) ................... 5,985,000 5,985,000
Miami Valley, OH Tax-Exempt Mtg. Trust RB, Series 86, 4.88%, 10/15/99(1) ....... 2,660,000 2,660,000
Scioto Cnty., OH HCF RB, Hill View Retirement Center,
3%, 6/1/99(1) .............................................................. 2,675,000 2,675,000
Warren Cnty., OH IDV RRB, Liquid Container Project, 4.05%(2) ................... 1,670,000 1,670,000
------------
16,615,000
------------
Oklahoma--1.1%
Cleveland Cnty., OK Public Facilities RB, Hunt Development Project,
Series A, 4%(2) ............................................................. 1,000,000 1,000,000
Creek Cnty., OK IDV RRB, Indiana Glass, 3%, 6/1/99(2) .......................... 1,795,000 1,795,000
Mid-West, OK Tax-Exempt Mtg. Board Trust RB, 3.15%(2) .......................... 720,000 720,000
OK Industrial Authority RB, Casady School Project, 3.135%(2) ................... 6,500,000 6,500,000
Tulsa, OK IDAU RB, Indian Health Care Project, 4.05%(2) ........................ 3,100,000 3,100,000
Tulsa, OK Industrial Authority RB, 3.35%(2) .................................... 6,500,000 6,500,000
------------
19,615,000
------------
</TABLE>
9
<PAGE>
Statement of Investments December 31, 1998 (Unaudited) (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Oregon--0.5%
Hillsboro, OR RB, Oregon Graduate Institute, 4.10%(2) .......................... $ 6,100,000 $ 6,100,000
OR Economic & IDV Commission RB, Eagle-Picher Industries Project, 3.85%(2) ..... 3,600,000 3,600,000
------------
9,700,000
------------
Pennsylvania--1.6%
Butler Cnty., PA IDAU RRB, Lutheran Welfare, Series A, 2.95%, 11/1/99(1) ....... 6,185,000 6,185,000
Monroe Cnty., PA HA RB, Pocono Medical Center, Series C, 4.05%(2) .............. 2,920,000 2,920,000
Montgomery Cnty., PA IDAU RB, Quaker Chemical Corp. Project, 3.50%(2) .......... 1,600,000 1,600,000
PA HEFAU RB, Assn. Independent Colleges & Universities, Series C1,
4%, 11/1/99(1) .............................................................. 1,700,000 1,713,812
PA HEFAU RB, Assn. Independent Colleges & Universities, Series C2,
4%, 11/1/99(1) .............................................................. 4,500,000 4,536,560
PA HEFAU RB, Assn. Independent Colleges & Universities, Series C6,
4%, 11/1/99(1) .............................................................. 3,000,000 3,024,373
PA HEFAU RB, CICU Financing Program, Series B1, 2.95%, 11/1/99(1) .............. 2,900,000 2,900,000
PA HEFAU RB, CICU Financing Program, Series B4, 2.95%, 11/1/99(1) .............. 2,500,000 2,500,000
PA HEFAU RB, CICU Financing Program, Series B6, 2.95%, 11/1/99(1) .............. 2,000,000 2,000,000
PA HEFAU RB, CICU Financing Program, Series B8, 2.95%, 11/1/99(1) .............. 2,950,000 2,950,000
------------
30,329,745
------------
South Carolina--2.0%
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 2, 3.10%, 5/1/99(1) ...... 4,407,500 4,407,500
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 3, 2.95%, 7/1/99(1) ...... 9,452,500 9,452,500
Charleston Center Tax-Exempt Bonds, Grantor Trust No. 6, 3.35%(1)(2) ........... 8,075,000 8,075,000
SC Public Service Authority RB, Series 182, MBIA Insured, 4.15%(2) ............. 14,850,000 14,850,000
------------
36,785,000
------------
South Dakota--1.7%
Grant Cnty., SD PC RRB, Otter Tail Power Co. Project, 3.55%(2) ................. 10,400,000 10,400,000
SD Health & Educational Facilities RB, Sioux Valley Hospital Issue, 3.55%(2) ... 21,400,000 21,400,000
------------
31,800,000
------------
Tennessee--2.1%
Clarksville, TN Public Building Authority RB, Pooled Financing-Tennessee
Municipal Bond Fund, 4.05%(2) ............................................... 9,500,000 9,500,000
Fayetteville & Lincoln, TN IDV Board RB, V.A.W. of America, 4.20%(2) ........... 2,000,000 2,000,000
Knox Cnty., TN IDV Board RB, Weisgarber Partners, FGIC Insured, 3.50%(2) ....... 3,000,000 3,000,000
Montgomery Cnty., TN Public Building Authority RB, Tennessee
County Loan, 4.05%(2) ....................................................... 25,000,000 25,000,000
------------
39,500,000
------------
</TABLE>
10
<PAGE>
Statement of Investments December 31, 1998 (Unaudited) (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ------------
<S> <C> <C>
Texas--14.8%
ABN AMRO Munitops Certificates, Series 1998-19, 3.10%, 6/9/99(1) ............... $ 8,000,000 $ 8,000,000
Austin, TX IDV Corp. RRB, Scarbrough Building Project, 2.90%(2) ................ 65,000 65,000
Austin, TX IDV Corp. RRB, Scarbrough Building Project, 4.05%(2) ................ 4,300,000 4,300,000
Austin, TX RRB, Prerefunded, Series B, 7%, 9/1/99(1) ........................... 1,000,000 1,023,671
De Soto, TX IDAU RRB, National Service Industries, Inc. Project, 4.10%(2) ...... 7,150,000 7,150,000
Harris Cnty., TX Criminal Justice Center RB, Series SG96,
FGIC Insured, 4.10%(2) ...................................................... 7,475,000 7,475,000
Harris Cnty., TX Toll Road COP, 3.40%(2) ....................................... 9,900,000 9,900,000
Hockley Cnty., TX IDV Corp. PC RB, Amoco Project-Standard Oil Co.,
3.60%, 3/1/99(1) ............................................................ 25,250,000 25,250,000
Houston, TX Airport Commercial Paper, 3.45%, 1/14/99(1) ........................ 3,100,000 3,100,000
Houston, TX WSS RB, Series SG120, 4.10%(2) ..................................... 37,600,000 37,600,000
San Antonio, TX Electric & Gas RRB, Series G-101, 4.10%(2) ..................... 20,000,000 20,000,000
San Antonio, TX Electric & Gas RRB, Series SG105, 3.60%(2) ..................... 20,000,000 20,000,000
TX Gulf Coast Waste Disposal Authority RRB, Armco Inc. Project, 4.05%(2) ....... 6,000,000 6,000,000
TX Gulf Coast Waste Disposal Authority Texas Environmental Improvement RB,
Amoco Oil Co. Project, 3.45%, 3/1/99(1) ..................................... 7,000,000 7,000,000
TX Tax & RAN, 4.50%, 8/31/99 ................................................... 93,000,000 93,764,448
TX TUAU RB, Dallas Northtollway, Series SG70, 4.10%(2) ......................... 15,325,000 15,325,000
Yoakum Cnty., TX IDV PC RB, Amoco Project, 3%, 5/1/99(1) ....................... 5,265,000 5,265,000
------------
271,218,119
------------
Utah--3.7%
UT HFA MH RRB, Candlestick Apts. Project, 4%(2) ................................ 6,400,000 6,400,000
UT Intermountain Power Agency RRB, Series E, AMBAC Insured,
3.30%, 3/15/99(1) ........................................................... 24,000,000 24,000,000
UT Intermountain Power Agency RRB, Series F, AMBAC Insured,
3.30%, 3/15/99(1) ........................................................... 37,700,000 37,700,000
------------
68,100,000
------------
Vermont--0.0%
VT IDAU RB, Sherbern Corp., Series 1998, 4.28%(2) .............................. 520,000 520,000
------------
Virginia--0.2%
Henry Cnty., VA IDAU RB, Amfibe, Inc. Project, 2.94%(2) ........................ 100,000 100,000
Henry Cnty., VA IDAU RB, Amfibe, Inc. Project, 4.15%(2) ........................ 2,900,000 2,900,000
------------
3,000,000
------------
</TABLE>
11
<PAGE>
Statement of Investments December 31, 1998 (Unaudited) (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- --------------
<S> <C> <C>
Washington--2.3%
Port Longview, WA IDV RB, Longview Fibre Co. Project, 4%(2) .................... $ 5,000,000 $ 5,000,000
Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 1, 4%(2) ........ 960,000 960,000
Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 2, 4%(2) ........ 1,675,000 1,675,000
Seattle, WA IDV Corp. RB, 3.80%(2) ............................................. 4,050,000 4,050,000
WA GORB, Series 1995C, 4.15%(2) ................................................ 13,710,000 13,710,000
WA GORB, Series 1995C, AT-8 & R-95B, 5.50%, 7/1/99 ............................. 2,000,000 2,024,919
WA GORB, Series R-94A, 4.40%, 8/1/99 ........................................... 10,000,000 10,053,601
WA PP Supply System RRB, Nuclear Project No. 1, Prerefunded, Series A,
7.50%, 7/1/99(1) ............................................................ 4,650,000 4,834,022
--------------
42,307,542
--------------
Wisconsin--0.4%
Milwaukee, WI GOUN, Series BY, 6.60%, 6/15/99 .................................. 1,250,000 1,267,979
WI GOUN, Series G, 6.30%, 5/1/99 ............................................... 1,000,000 1,009,707
WI Transportation RB, Prerefunded, Series A, 6.25%, 7/1/99(1) .................. 5,000,000 5,169,482
--------------
7,447,168
--------------
Wyoming--0.6%
Lincoln Cnty., WY PC RRB, Pacificorp Project, 3.25%, 4/8/99(1) ................. 4,200,000 4,200,000
Uinta Cnty., WY Hospital Facilities RRB, IHC Hospitals Inc., Prerefunded,
7.25%, 2/15/99(1) ........................................................... 7,350,000 7,530,842
--------------
11,730,842
--------------
U.S. Possessions--3.5%
PR CMWLTH, Tax & RAN, 3.50%, 7/30/99 ........................................... 63,500,000 63,734,339
--------------
Total Investments, at Value .................................................... 103.4% 1,900,703,315
Liabilities in Excess of Other Assets .......................................... (3.4) (62,202,546)
----------- --------------
Net Assets ..................................................................... 100.0% $1,838,500,769
=========== ==============
</TABLE>
12
<PAGE>
Statement of Investments December 31, 1998 (Unaudited) (Continued)
Centennial Tax Exempt Trust
To simplify the listings of securities, abbreviations are used per the table
below:
BOE --Board of Education
CD --Commercial Development
CDAU --Communities Development Authority
CDC --Community Development Corp.
CMWLTH --Commonwealth
COP --Certificates of Participation
DA --Dormitory Authority
DAU --Development Authority
ED --Economic Development
EDAU --Economic Development Authority
ERDAUEF--Energy Research & Development Authority Electric Facilities
ERDAUPC--Energy Research & Development Authority Pollution Control
FA --Facilities Authority
FAU --Finance Authority
GOB --General Obligation Bonds
GORB --General Obligation Refunding Bonds
GOUN --General Obligation Unlimited Nts.
HA --Hospital Authority
HAU --Housing Authority
HCF --Health Care Facilities
HDC --Housing Development Corp.
HEAU --Higher Education Authority
HEFAU --Higher Educational Facilities Authority
HFA --Housing Finance Agency
HFAU --Health Facilities Authority
HFFAU --Health Facilities Finance Authority
IDA --Industrial Development Agency
IDAU --Industrial Development Authority
IDV --Industrial Development
LGAC --Local Government Assistance Corp.
L.I. --Long Island
MAG --Mtg. Agency
MH --Multifamily Housing
MPA --Municipal Power Agency
MTAU --Metropolitan Transportation Authority
NYC --New York City
NYS --New York State
PAU --Power Authority
PAUNYNJ--Port Authority of New York & New Jersey
PC --Pollution Control
PCFAU --Pollution Control Finance Authority
POAU --Port Authority
PP --Public Power
RA --Redevelopment Agency
RAN --Revenue Anticipation Nts.
RB --Revenue Bonds
RR --Resource Recovery
RRB --Revenue Refunding Bonds
SDI --School District
SPO --Special Obligations
SWD --Solid Waste Disposal
TAN --Tax Anticipation Nts.
TBTAU --Triborough Bridge & Tunnel Authority
TUAU --Turnpike Authority
UDC --Urban Development Corp.
WSS --Water & Sewer System
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
31,1998. The instrument may also have a demand feature which allows, on up to 30
days' notice, the recovery of principal at any time, or at specified intervals
not exceeding one year.
3. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $22,192,000 or 1.21% of the Trust's net
assets as of December 31, 1998.
See accompanying Notes to Financial Statements.
13
<PAGE>
Statement of Assets and Liabilities December 31, 1998 (Unaudited)
Centennial Tax Exempt Trust
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost $1,900,703,315)--see accompanying statement ............. $1,900,703,315
Cash ................................................................................ 9,260,204
Receivables and other assets:
Shares of beneficial interest sold ................................................ 35,312,476
Interest .......................................................................... 15,257,009
Other ............................................................................. 79,799
---------------
Total assets .................................................................... 1,960,612,803
---------------
LIABILITIES
Payables and other liabilities:
Investments purchased ............................................................ 103,271,898
Shares of beneficial interest redeemed ........................................... 18,406,566
Service plan fees ................................................................ 201,193
Transfer and shareholder servicing agent fees .................................... 69,830
Other ............................................................................. 162,547
---------------
Total liabilities ............................................................... 122,112,034
---------------
NET ASSETS .......................................................................... $1,838,500,769
===============
COMPOSITION OF NET ASSETS
Paid-in capital ..................................................................... $1,839,007,616
Accumulated net realized loss on investment transactions ............................ (506,847)
---------------
NET ASSETS--applicable to 1,839,023,584 shares of beneficial interest outstanding ... $1,838,500,769
===============
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE ...................... $1.00
</TABLE>
See accompanying Notes to Financial Statements.
14
<PAGE>
Statement of Operations For the Six Months Ended December 31, 1998 (Unaudited)
Centennial Tax Exempt Trust
INVESTMENT INCOME--Interest .................................. $32,104,945
-----------
EXPENSES
Management fees--Note 3 ...................................... 3,991,521
Service plan fees--Note 3 .................................... 1,899,288
Transfer and shareholder servicing agent fees--Note 3 ........ 359,543
Registration and filing fees ................................. 79,232
Custodian fees and expenses .................................. 72,987
Shareholder reports .......................................... 49,523
Legal, auditing and other professional fees .................. 18,683
Trustees' fees and expenses .................................. 11,806
Other ........................................................ 8,242
-----------
Total expenses ............................................. 6,490,825
-----------
NET INVESTMENT INCOME ........................................ 25,614,120
-----------
NET REALIZED GAIN ON INVESTMENTS ............................. 76,008
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......... $25,690,128
===========
See accompanying Notes to Financial Statements.
15
<PAGE>
Statements of Changes in Net Assets
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1998 Year Ended
(Unaudited) June 30, 1998
--------------- ---------------
<S> <C> <C>
OPERATIONS
Net investment income ................................. $ 25,614,120 $ 56,209,459
Net realized gain (loss) .............................. 76,008 (569,188)
--------------- ---------------
Net increase in net assets resulting from operations .. 25,690,128 55,640,271
--------------- ---------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS ........... (25,614,120) (56,328,253)
--------------- ---------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions--Note 2 ............ 9,439,000 180,927,614
--------------- ---------------
NET ASSETS
Total increase ........................................ 9,515,008 180,239,632
Beginning of period ................................... 1,828,985,761 1,648,746,129
--------------- ---------------
End of period ......................................... $ 1,838,500,769 $ 1,828,985,761
=============== ===============
</TABLE>
See accompanying Notes to Financial Statements.
16
<PAGE>
Financial Highlights
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Six Months Ended Year Ended June 30,
December 31, -------------------------------------------------------
1998 (Unaudited) 1998 1997 1996 1995 1994
---------------- ------- ------- ------- ------- -------
<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 .03 .03 .02
Dividends and distributions to shareholders . (.01) (.03) (.03) (.03) (.03) (.02)
------ ------ ------ ------ ------ ------
Net asset value, end of period .............. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
TOTAL RETURN(1) ............................. 1.39% 3.12% 3.01% 3.16% 3.17% 1.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) ..... $1,839 $1,829 $1,649 $1,426 $1,315 $1,039
Average net assets (in millions) ............ $1,887 $1,832 $1,591 $1,473 $1,127 $1,057
Ratios to average net assets:
Net investment income ....................... 2.69%(2) 3.07% 2.95% 3.12% 3.13% 1.87%
Expenses(3) ................................. 0.68%(2) 0.69% 0.72% 0.72% 0.73% 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 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 Trust. Prior year expense ratios have not been
adjusted.
See accompanying Notes to Financial Statements.
17
<PAGE>
Notes to Financial Statements (Unaudited)
Centennial Tax Exempt Trust
1. Significant Accounting Policies
Centennial Tax Exempt Trust (the Trust) is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust's investment 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 advisor is Centennial
Asset Management Corporation (the Manager), a subsidiary of OppenheimerFunds,
Inc. (OFI). The following is a summary of significant accounting policies
consistently followed by the Trust.
Investment Valuation. Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
Federal Taxes. The Trust intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, 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>
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, 1998 Year Ended June 30, 1998
--------------------------------- ---------------------------------
Shares Amount Shares Amount
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold ......................... 2,701,031,121 $ 2,701,031,121 5,609,068,596 $ 5,609,068,596
Dividends and distributions
reinvested ................. 26,875,294 26,875,294 55,170,917 55,170,917
Redeemed ..................... (2,718,467,415) (2,718,467,415) (5,483,311,899) (5,483,311,899)
-------------- --------------- -------------- ---------------
Net increase ................. 9,439,000 $ 9,439,000 180,927,614 $ 180,927,614
============== =============== ============== ===============
</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. Furthermore, under Tax Exempt Trust's
Agreement, when the value of Tax Exempt Trust's net assets is less than $1.5
billion, the annual fee payable to the Manager shall be reduced by $100,000
based on average net assets computed daily and paid monthly at the annual rates,
but in no event shall the annual fee be less than $0. The Trust's management fee
for the six months ended December 31, 1998 was 0.42% of the average annual net
assets for the Trust.
Shareholder Services, Inc. (SSI), a subsidiary of OFI, is the transfer and
shareholder servicing agent for the Trust and other Oppenheimer funds. SSI's
total costs of providing such services are allocated ratably to these funds.
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 six months ended December 31, 1998, the Trust paid
$9,462 to a broker/dealer affiliated with the Manager as reimbursement for
distribution-related expenses.
19
<PAGE>
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, Trustee, Vice President, Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Michael J. Carbuto, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
Investment Advisor and Distributor
Centennial Asset Management Corporation
Transfer and Shareholder Servicing Agent
Shareholder Services, Inc.
Custodian of Portfolio Securities
Citibank, N.A.
Independent Auditors
Deloitte & Touche LLP
Legal Counsel
Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been taken from the records of the
Trust without examination of 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
RS0160.001.1298 [RECYCLE LOGO] Printed on recycled paper
