<PAGE> 1
1999 ANNUAL REPORT
CENTENNIAL
TAX EXEMPT
TRUST
JUNE 30, 1999
<PAGE> 2
DEAR SHAREHOLDER:
In a year when the bond market was shaken by significant and far-reaching
events, such as the collapse of the Japanese economy and the forced rescue of a
major hedge fund, tax-exempt money market funds remained an island of stability.
October 1998 recorded historic lows for the yields on 30-year U.S. Treasuries.
However, even then, the primary concern for tax-exempt fund managers was not
loss, but the dwindling supply of tax-exempt issues in a robust U.S. economy.
With tax revenues at record highs and many municipalities posting a budget
surplus, the need to issue new notes was greatly reduced. Although many of these
municipalities have refinanced their old debt in order to take advantage of
lower interest rates, the supply remains far below the demand for these issues.
Our strategy for managing the Trust in such an environment was to further extend
the Trust's average maturities, from 30-60 days, into the 75-85 day range. By
exchanging a percentage of our variable rate debt for fixed-rate, longer dated
paper, we were able to lock in higher yields. As active managers we are always
trying to find the balance between the optimal place for the maturity as well as
to meet liquidity demand.
For the fiscal year that ended June 30, 1999, the Centennial Tax Exempt Trust
produced a compounded annual yield of 2.61%. Without compounding, the
corresponding yield was 2.58%. For investors in the 36% tax bracket this is
equivalent to a taxable yield of 4.08% with compounding, and 4.03% without. On
June 30, 1999, the seven-day annualized yields, with and without compounding,
were 2.69% and 2.66%, respectively. 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 the Trust will maintain a stable $1.00 share
price.(1)
Although the Trust currently holds municipal securities issued by various
states, with approximately 36% of the portfolio invested in New York, Texas and
Georgia, it is important to note that the determining factor for selecting
securities is not geography. In fact, the Trust invests in the following types
of tax-exempt municipal securities, among others: variable rate demand notes,
primarily notes backed by commercial banks that are payable on demand; put bonds
that allow the Trust to redeem the issues at specified intervals before maturity
and receive full face value; commercial paper, which includes short term
obligations with maturities ranging from 2-270 days, issued
(1). Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
<PAGE> 3
by top-rated borrowers and backed by bank letters of credit; and the general
market notes, where we seek out individual tax-exempt securities that meet our
standards for quality, yield and maturity. Ultimately the portfolio is compiled
from all over the country. We also buy a number of insured issues. The insurance
enables us to benefit from the superior rates of a long-term bond combined with
many of the desirable features of a short-term bond.
Looking to the future, we intend to continue in the same fashion; balancing
maturities while carefully monitoring market activity. On June 30, 1999 the
Federal Reserve raised short-term interest rates in an attempt to stem the rapid
growth of the U.S. economy. However, in our opinion, this move had already been
factored in by the market and should have minimal effect on near-term prices.
Although we continue to have some concern about the Y2K problem, the Federal
Reserve has indicated that at year-end, it will allow selected banks to borrow
at certain discount windows in order to guarantee liquidity. With U.S. financial
institutions thus prepared, it may be that only our connections with
international entities could create some disruption. In any case we will
continue to invest conservatively, keeping in mind our shareholders' objectives
of safety and liquidity.
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, 1999
<PAGE> 4
STATEMENT OF INVESTMENTS June 30, 1999
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ ---------------
<S> <C> <C>
SHORT-TERM TAX-EXEMPT OBLIGATIONS--108.1%
ARIZONA--2.1%
AZ HFAU RB, Blood Systems, Inc., 3.62%(1).............................................. $ 8,795,000 $ 8,795,000
Maricopa Cnty., AZ GORB, FGIC Insured, 6.25%, 7/1/99................................... 2,000,000 2,000,000
Phoenix, AZ Airport RRB, Series A, MBIA Insured, 5.40%, 7/1/99......................... 2,000,000 2,000,000
Phoenix, AZ IDAU MH RRB, Paradise Lakes Apts. Project, 1995 Series, 3.65%(1)........... 22,500,000 22,500,000
Tucson, AZ IDAU RB, Geronimo Building Renovation Project, 4%, 12/15/99(2).............. 965,000 965,000
----------------
36,260,000
----------------
CALIFORNIA--9.3%
Anaheim, CA HAU MH RRB, Park Vista Apts., Series A, 3.75%(1)........................... 1,000,000 1,000,000
CA CDAU Apartment Development RRB, Whispering Winds Apts., Series D, 3.15%(1).......... 1,000,000 1,000,000
CA GOB, Tendered Option Certificates, Series 1998A, MBIA Insured, 3.65%(1)(3).......... 3,027,000 3,027,000
CA HEAU Student Loan RB, Series C, 3.40%(1)............................................ 4,000,000 4,000,000
CA HFFAU RRB, Catholic West Project, Series C, MBIA Insured, 3.30%(1).................. 2,000,000 1,999,979
CA Municipal RB, Series SG89, MBIA Insured, 3.62%(1)................................... 7,425,000 7,425,000
CA School Cash Reserve Program Authority RB, Series A, 4%, 7/3/00...................... 70,000,000 70,612,500
CA Statewide CDC RB, Fibrebond, Inc., 3.30%(1)......................................... 1,310,000 1,309,988
Covina City, CA RA MH RRB, Shadowhills Apts., Inc., Series A, 3.55%(1)................. 2,700,000 2,700,020
Huntington Park, CA RA MH RB, Casa Rita Apts., Series A, 3.52%(1)...................... 1,100,000 1,100,000
Los Angeles Cnty., CA Pension Obligation RB, Series B, AMBAC Insured, 3.25%(1)......... 1,000,000 1,000,000
Los Angeles Cnty., CA Pension Obligation RRB, Series A, 3.25%(1)....................... 2,000,000 2,000,000
Los Angeles, CA Airport RB, Series SG61, 3.64%(1)...................................... 1,055,000 1,055,000
Los Angeles, CA TAN & RAN, 4%, 6/30/00................................................. 40,000,000 40,262,400
Modesto, CA Irrigation District FAU RB, Series SG66, 3.57%(1).......................... 500,000 500,000
Oceanside, CA MH RRB, Lakeridge Apts. Project, 3.75%(1)................................ 3,000,000 2,999,999
Pittsburg, CA Mortgage Obligation RRB, Series A, 3.55%(1).............................. 4,470,000 4,470,000
Sacramento Cnty., CA RB, Trust REG D, Series A28, 3.30%(1)............................. 11,300,000 11,300,000
San Bernardino Cnty., CA TAN & RAN, 4.50%, 9/30/99..................................... 500,000 501,912
San Diego, CA ABN AMRO Munitops Certificates, Series 1998-10, 3.60%(1)(3).............. 1,000,000 1,000,000
San Francisco, CA City & Cnty. Redevelopment FAU RRB, Yerba Buena Garden, 3.25%(1)..... 315,000 315,000
Southern CA PAU RRB, Palo Verde Project, Series B, AMBAC Insured, 3.25%(1)............. 2,400,000 2,400,000
Southern CA Public PAU RRB, Southern Transmission Project, AMBAC Insured, 3.25%(1)..... 1,000,000 1,000,000
----------------
162,978,798
----------------
</TABLE>
3
<PAGE> 5
STATEMENT OF INVESTMENTS June 30, 1999 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- --------------
<S> <C> <C>
COLORADO--1.7%
Arapahoe Cnty., CO MH RRB, Hunters Run Rental Housing, 3.85%(1)........................ $25,600,000 $ 25,600,000
Superior Metropolitan District No. 3, CO GOB, 3.62%(1)................................. 5,000,000 5,000,000
--------------
30,600,000
--------------
DELAWARE--1.1%
DE EDAU IDV RRB, Delaware CleanPower Project, Series A, 3.55%(1)....................... 5,000,000 5,000,000
DE EDAU IDV RRB, Delaware CleanPower Project, Series C, 3.61%(1)....................... 8,000,000 8,000,000
DE EDAU RB, Hospital Billing Project, Series A, BIG Insured, 3.55%(1).................. 5,200,000 5,200,000
DE Transportation Authority System RRB, Sr. Lien, AMBAC Insured, 5.25%, 7/1/99......... 900,000 900,000
--------------
19,100,000
--------------
FLORIDA--7.2%
Dade Cnty., FL WSS RB, FGIC Insured, 3.40%, 4/1/00(2).................................. 9,900,000 9,900,000
Escambia Cnty., FL HFAU RRB, Florida Convertible Centers Project, Series A, 3.50%(1)... 1,150,000 1,150,000
FL BOE Capital Outlay Public Education Refunding Bonds, Series A, 3.75%(1)............. 13,230,000 13,230,000
FL HFA MH RRB, Monterey Lake Project, 3.40%(1)......................................... 19,965,000 19,965,000
FL TUAU RB, Prerefunded, 7.75%, 7/1/99(2).............................................. 1,250,000 1,275,000
FL TUAU RB, Series A, FGIC Insured, 3.10%, 7/1/99(2)................................... 14,850,000 14,850,000
Hillsboro Cnty., FL IDV PC RB, Tampa Electric Co., MBIA Insured, 3.25%, 1/15/00(2)..... 17,795,000 17,795,000
Hillsboro Cnty., FL IDV PC RB, Tampa Electric Co., MBIA Insured, 3.25%, 1/15/00(2)..... 17,795,000 17,795,000
Jacksonville, FL IDV RRB, Airport Hotel Project, 3.50%(1).............................. 3,000,000 3,000,000
Orange Cnty., FL Housing FAU MH RRB, Monterey Project, Series B, 3.75%(1).............. 4,665,000 4,665,000
Putnam Cnty., FL PC DAU RRB, Seminole Electric Co-op, Series D, 3.125%, 12/15/99(2).... 23,000,000 23,000,000
--------------
126,625,000
--------------
GEORGIA--11.6%
Atlanta, GA Urban Residential FAU MH RB, New Community East Lake Project, 3.90%(1)..... 2,000,000 2,000,000
Cobb Cnty., GA HAU MH RRB, Terrell Mill Project, 3.65%(1)(3)........................... 9,400,000 9,400,000
Cobb Cnty., GA SDI RB, 3.50%, 12/31/99................................................. 14,650,000 14,673,119
Cobb Cnty., GA TAN, 3.25%, 12/31/99.................................................... 20,900,000 20,922,465
Fulton Cnty., GA DAU RB, Georgia Tech Athletic Assn., Inc., 3.75%(1)................... 3,000,000 3,000,000
Fulton Cnty., GA DAU RB, Lovett School Project, 3.75%(1)............................... 3,000,000 3,000,000
Fulton Cnty., GA DAU RB, Robert W. Woodruff Arts Project, 3.75%(1)..................... 2,000,000 2,000,000
Fulton Cnty., GA General Fund TAN, 3.25%, 12/31/99..................................... 77,000,000 77,065,198
GA GOB, Series 1995B, 3.69%(1)......................................................... 11,880,000 11,880,000
</TABLE>
4
<PAGE> 6
STATEMENT OF INVESTMENTS June 30, 1999 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- --------------
<S> <C> <C>
GEORGIA (CONTINUED)
Gainesville, GA RA RB, Riverside Military Academy, 3.65%(1)............................ $10,000,000 $ 10,000,000
Gwinnett Cnty., GA SDI Construction Sales Tax Nts., 3.50%, 12/31/99.................... 25,000,000 25,073,281
Roswell, GA HAU MH RRB, Oxford Project, 3.60%(1)....................................... 23,610,000 23,610,000
--------------
202,624,063
--------------
IDAHO--0.1%
Custer Cnty., ID IDV SWD RB, Hecla Mining Co. Project, 3.95%(1)........................ 1,000,000 1,000,000
--------------
ILLINOIS--4.7%
Chicago, IL ABN AMRO Munitops Certificates, Trust 1998-3, 3.75%(1)(3).................. 8,735,000 8,735,000
Chicago, IL Lakefront Millennium Parking Facilities RB, 3.15%, 10/1/99(2).............. 22,495,000 22,495,000
Chicago, IL Metropolitan Reclamation Water District GOB, Greater
Chicago Capital Improvements, 6.80%, 1/1/00(2)...................................... 5,200,000 5,398,999
Elk Grove Village, IL IDV RB, La Quinta Motor Inns, Inc., 3.10%(1)..................... 2,300,000 2,300,000
IL Development FAU RB, Metropolitan Family Services, 3.415%(1)......................... 8,700,000 8,700,000
IL HFAU RB, Lake Forest Hospital Project, 3.875%(1).................................... 10,565,000 10,565,000
IL HFAU RRB, The Carle Foundation, Series B, 3.20%(1).................................. 5,100,000 5,100,000
IL IDAU RRB, SuperValu Stores, Inc. Project, 3.55%(1).................................. 5,000,000 5,000,000
IL Student Assistance Commission Student Loan RB, Series A, 3.60%(1)................... 10,000,000 10,000,000
West Chicago, IL IDV RRB, Liquid Container Project, 3.65%(1)........................... 3,810,000 3,810,000
--------------
82,103,999
--------------
INDIANA--7.1%
Dyer, IN HCF RRB, Regency Place, Series A-1, 3.77%(1).................................. 3,270,000 3,270,000
Fort Wayne, IN HCF RRB, Health Quest, Series X-A, 3.77%(1)............................. 3,110,000 3,110,000
IN Bank Bonds, Advance Funding Program, Series A-2, 3.50%, 1/19/00..................... 45,000,000 45,128,451
IN MPA RB, Power Supply System, MBIA Insured, 3.69%(1)................................. 13,600,000 13,600,000
Indianapolis, IN HCF RRB, Health Quest, Series A, 3.77%(1)............................. 3,915,000 3,915,000
Indianapolis, IN Local Public Improvement Bank Bonds, Series A, 4%, 1/10/00............ 11,250,000 11,293,740
Indianapolis, IN Local Public Improvement Revenue Nts., Series F, 3.50%, 7/12/99....... 14,025,000 14,027,281
Indianapolis, IN MH RB, Camby Housing Partners Project, 3.75%(1)....................... 5,400,000 5,400,000
Marion Cnty., IN HA Hospital Facility RB, Indianapolis Osteopathic, 3.60%(1)........... 2,810,000 2,810,000
Merrillville, IN HCF RRB, Southlake, Series A-1, 3.77%(1).............................. 3,995,000 3,995,000
Rockport, IN PC RRB, Indiana & Michigan Electric Co. Project, Series A, 3.55%(1)....... 13,000,000 13,000,000
South Bend, IN HCF RRB, Fountainview, Series A-1, 3.77%(1)............................. 3,095,000 3,095,000
St. Joseph Cnty., IN Industrial Educational Facilities RB, Holy Cross College, 3.60%(1) 1,130,000 1,130,000
--------------
123,774,472
--------------
</TABLE>
5
<PAGE> 7
STATEMENT OF INVESTMENTS June 30, 1999 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ----------------
<S> <C> <C>
IOWA--1.0%
IA School Cash Anticipation Program Warrant Certificates, Series B,
FSA Insured, 3.50%, 1/28/00......................................................... $16,740,000 $ 16,789,802
----------------
KANSAS--1.5%
Burlington, KS Environmental Improvement RRB, K C Power & Light
Co. Project, Series B, 3.60%(1)..................................................... 19,800,000 19,800,000
Manhattan, KS Industrial RRB, Parker Hannifin, Inc. Project, 3.65%(1).................. 6,000,000 6,000,000
Ottawa, KS IDV RB, Laich Industries Project, 3.75%(1).................................. 525,000 525,000
----------------
26,325,000
----------------
KENTUCKY--2.7%
Jamestown, KY Industrial Building RB, Union Underwear Co., 3.75%(1).................... 1,000,000 1,000,000
KY Asset/Liability Commission General Fund TAN & RAN, Series A, 4.25%, 6/28/00......... 30,000,000 30,255,000
Mayfield, KY Multi-City Lease RB, Kentucky League of Cities Funding Trust, 3.60%(1).... 15,200,000 15,200,000
----------------
46,455,000
----------------
MARYLAND--1.0%
Anne Arundel Cnty., MD ED RB, West Capitol, Series A, 3.65%(1)......................... 6,000,000 6,000,000
MD Department of Transportation RB, Prerefunded, Second Issue, 6.80%, 11/1/99(2)....... 3,155,000 3,256,962
MD Health & HEFAU RB, Mercy Medical Center, Prerefunded, 8%, 7/1/99(2)................. 6,500,000 6,630,000
MD Health & HEFAU RB, University of Maryland Pooled Loan
Program, Series B, 3.20%(1)......................................................... 985,000 985,000
----------------
16,871,962
----------------
MASSACHUSETTS--3.3%
MA CMWLTH General Obligation Consolidation Loan, 3.25%, 1/15/00(2)..................... 15,245,000 15,245,000
MA GOB, 3.15%, 10/1/99(2).............................................................. 20,800,000 20,800,000
MA Health & Education FA RRB, Boston University, Series H, 3%, 8/25/99(2).............. 22,500,000 22,500,000
----------------
58,545,000
----------------
MICHIGAN--0.7%
Madison Heights, MI ED RB, Red Roof Inns Project, 3.40%(1)............................. 1,000,000 1,000,000
MI Hospital FAU RRB, Mount Clemens General Hospital, 3.40%(1).......................... 9,220,000 9,220,000
MI Job DAU RB, East Lansing Residence Associates Project, 3.50%(1)..................... 1,900,000 1,900,000
----------------
12,120,000
----------------
</TABLE>
6
<PAGE> 8
STATEMENT OF INVESTMENTS June 30, 1999 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
------------ -----------------
<S> <C> <C>
MINNESOTA--1.9%
Blaine, MN IDV RRB, SuperValu Stores, Inc. Project, 3.70%(1)........................... $ 5,500,000 $ 5,500,000
Burnsville, MN CD RB, SuperValu Stores, Inc. Project, Series 83, 3.70%(1).............. 5,500,000 5,500,000
Maplewood, MN CD RRB, 5.27%(1)......................................................... 105,000 105,000
Minneapolis, MN CD RRB, Minnehaha/Lake Partners Project, 3.45%(1)...................... 2,750,000 2,750,000
New Ulm, MN Hospital Facilities RB, Health Center Systems, 3.75%(1).................... 2,200,000 2,200,000
North Suburban Hospital District, MN RB, Anoka & Ramsey Cntys.
Hospital Health Center, 3.75%(1).................................................... 3,300,000 3,300,000
St. Paul, MN Housing & Redevelopment Authority RB, Science
Museum of Minnesota, Series B, 3.75%(1)............................................. 3,200,000 3,200,000
St. Paul, MN POAU Tax Increment RB, Westgate Office & Industrial
Center Project, 3.60%(1)............................................................ 10,300,000 10,300,000
-----------------
32,855,000
-----------------
NEVADA--1.2%
NV Municipal Securities Trust Receipts, Series SG 114, 3.77%(1)........................ 20,350,000 20,350,000
-----------------
NEW HAMPSHIRE--1.4%
NH Business FAU PC RRB, Series 1990-A, 3.25%, 8/2/99(2)................................ 25,000,000 25,000,000
-----------------
NEW JERSEY--0.1%
Passaic Valley, NJ Water Commission RB, Sub-System, Series A, 4%, 11/16/99............. 2,000,000 2,006,403
-----------------
NEW MEXICO--1.5%
Albuquerque, NM Gross Receipts Tax RRB, MBIA Insured, 5%, 7/1/99....................... 2,445,000 2,445,000
Farmington, NM PC RB, 3.25%, 4/6/00(2)................................................. 24,000,000 24,000,000
-----------------
26,445,000
-----------------
NEW YORK--12.8%
Buffalo, NY RAN, Series A, 3.75%, 7/27/99.............................................. 500,000 500,263
Erie Cnty., NY RAN, 4%, 10/13/99....................................................... 7,800,000 7,821,573
Franklin Cnty., NY IDA RAN, McAdam Cheese Co. Project, 3.65%(1)........................ 600,000 600,000
L.I., NY PAU RB, 3.15%, 7/22/99(2)..................................................... 34,000,000 34,000,000
L.I., NY PAU RB, 3.15%, 8/23/99(2)..................................................... 10,000,000 10,000,000
NYC Health & Hospital Corp. RB, Series D, 3.30%(1)..................................... 1,500,000 1,500,000
NYC MTAU Dedicated Tax Fund RB, FGIC Insured, 4%, 4/1/00............................... 3,640,000 3,662,909
NYC Municipal Assistance Corp. RRB, Series G, 4.10%, 7/1/99............................ 10,000,000 10,000,000
NYC Trust Cultural Resource RRB, American Museum of Natural
History, Series A, MBIA Insured, 3.10%(1)........................................... 1,000,000 1,000,000
</TABLE>
7
<PAGE> 9
STATEMENT OF INVESTMENTS June 30, 1999 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
---------- -------------
<S> <C> <C>
NEW YORK (CONTINUED)
NYS DA COP, Rockefeller University, 3.65%(1)........................................... $ 500,000 $ 500,012
NYS ERDAUPC RB, NYS Electric & Gas Corp., Series B, 3.20%, 10/15/99(2)................. 700,000 700,000
NYS ERDAUPC RB, NYS Electric & Gas Corp., Series D, 3%, 12/1/99(2)..................... 2,500,000 2,500,000
NYS HFA RB, Normandie Court I Project, 3.20%(1)........................................ 1,010,000 1,010,000
NYS HFA RB, Saxony Housing, Series A, 3.30%(1)......................................... 1,500,000 1,500,000
NYS LGAC RB, Series SG100, MBIA Insured, 3.77%, 10/1/99(2)............................. 10,420,000 10,420,000
NYS LGAC RB, Series SG99, MBIA Insured, 3.77%, 10/1/99(2).............................. 29,195,000 29,195,000
NYS MAG RB, Series PT217, 3.30%, 10/1/99(2)............................................ 3,200,000 3,200,000
NYS MCFFA RB, St. Luke's Hospital Center Mortgage., Prerefunded,
Series B, 7.45%, 2/15/00............................................................ 1,000,000 1,048,427
NYS PAU RB, Series SG4, 3.77%(1)....................................................... 3,195,000 3,195,001
NYS TBTAU Beneficial Interest COP, MBIA Insured, 3.35%, 7/15/99(2)..................... 3,300,000 3,300,000
NYS TBTAU RB, Series SG-41, 2.95%, 11/10/99(2)......................................... 5,000,000 5,000,000
NYS UDC RB, Correctional Capital Facilities, Prerefunded, Series 1,
FSA Insured, 7.50%, 1/1/00(2)....................................................... 1,000,000 1,041,454
NYS Urban Empire Development Corp. RB, Series A, 3.65%(1).............................. 10,255,000 10,255,000
PAUNYNJ SPO Bonds, Series SG94, 3.82%(1)............................................... 600,000 600,006
Suffolk Cnty., NY TAN, Series II, 3.50%, 8/12/99....................................... 48,000,000 48,027,102
Suffolk Cnty., NY TAN, Series II, 4%, 9/9/99........................................... 33,000,000 33,039,765
-------------
223,616,512
-------------
OHIO--0.9%
Gallia Cnty., OH IDV Mtg. RRB, Jackson Pike Assn., 3.20%, 12/15/99(2).................. 3,625,000 3,625,000
Marion Cnty., OH Hospital RB, Pooled Lease Program, 3.62%(1)........................... 5,985,000 5,985,000
Miami Valley, OH Tax-Exempt Mtg. Trust RB, Series 86, 4.88%, 10/15/99(2)............... 2,620,000 2,620,000
Scioto Cnty., OH HCF RB, Hill View Retirement Center, 3.25%, 12/1/99(2)................ 2,675,000 2,675,000
Warren Cnty., OH IDV RRB, Liquid Container Project, 3.65%(1)........................... 1,670,000 1,670,000
-------------
16,575,000
-------------
OKLAHOMA--0.7%
Cleveland Cnty., OK Public Facilities RB, Hunt Development Project,
Series A, 3.40%(1).................................................................. 1,000,000 1,000,000
Creek Cnty., OK IDV RRB, Indiana Glass, 3.25%, 12/1/99(2).............................. 1,795,000 1,795,000
OK Industrial Authority RB, Casady School Project, 3.62%(1)............................ 6,405,000 6,405,000
Tulsa, OK IDAU RB, Indian Health Care Project, 3.62%(1)................................ 3,100,000 3,100,000
-------------
12,300,000
-------------
</TABLE>
8
<PAGE> 10
STATEMENT OF INVESTMENTS June 30, 1999 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ----------------
<S> <C> <C>
OREGON--0.8%
Hillsboro, OR RB, Oregon Graduate Institute, 3.65%(1).................................. $ 6,100,000 $ 6,100,000
OR Economic & IDV Commission RB, Eagle-Picher Industries Project, 3.75%(1)............. 3,600,000 3,600,000
OR Housing & Community Services Department Mtg. RB, SFM
Program, Series C, 3.15%, 4/13/00(2)................................................ 4,615,000 4,615,000
----------------
14,315,000
----------------
PENNSYLVANIA--1.7%
Butler Cnty., PA IDAU RRB, Lutheran Welfare, Series A, 2.95%, 11/1/99(2)............... 6,185,000 6,185,000
Monroe Cnty., PA HA RB, Pocono Medical Center, Series C, 3.65%(1)...................... 2,920,000 2,920,000
Montgomery Cnty., PA IDAU RB, Quaker Chemical Corp. Project, 3.35%(1).................. 1,600,000 1,600,000
PA HEFAU RB, Assn. Independent Colleges & Universities, Series C1, 4%, 11/1/99(2)...... 1,700,000 1,705,588
PA HEFAU RB, Assn. Independent Colleges & Universities, Series C2, 4%, 11/1/99(2)...... 4,500,000 4,514,792
PA HEFAU RB, Assn. Independent Colleges & Universities, Series C6, 4%, 11/1/99(2)...... 3,000,000 3,009,862
PA HEFAU RB, CICU Financing Program, Series B1, 2.95%, 11/1/99(2)...................... 2,900,000 2,900,000
PA HEFAU RB, CICU Financing Program, Series B4, 2.95%, 11/1/99(2)...................... 2,500,000 2,500,000
PA HEFAU RB, CICU Financing Program, Series B6, 2.95%, 11/1/99(2)...................... 2,000,000 2,000,000
PA HEFAU RB, CICU Financing Program, Series B8, 2.95%, 11/1/99(2)...................... 2,950,000 2,950,000
----------------
30,285,242
----------------
SOUTH CAROLINA--0.8%
SC Public Service Authority RB, Series 182, MBIA Insured, 3.69%(1)..................... 14,850,000 14,850,000
----------------
SOUTH DAKOTA--1.9%
Grant Cnty., SD PC RRB, Otter Tail Power Co. Project, 3.70%(1)......................... 10,400,000 10,400,000
SD Health & Educational Facilities RB, Sioux Valley Hospital Issue, 3.70%(1)........... 21,400,000 21,400,000
Yankton, SD IDV RB, Kolber-Pioneer, Inc. Project, 3.75%(1)............................. 2,000,000 2,000,000
----------------
33,800,000
----------------
TENNESSEE--4.4%
Clarksville, TN Public Building Authority RB, Pooled Financing-
Tennessee Municipal Bond Fund, 3.80%(1)............................................. 9,500,000 9,500,000
Clarksville, TN Public Building Authority RB, Tennessee Municipal
Bond Fund, 3.25%(1)................................................................. 41,000,000 41,000,000
Fayetteville & Lincoln, TN IDV Board RB, V.A.W. of America, 3.95%(1)................... 2,000,000 2,000,000
Knox Cnty., TN IDV Board RB, Weisgarber Partners, FGIC Insured, 3.40%(1)............... 3,000,000 3,000,000
</TABLE>
9
<PAGE> 11
STATEMENT OF INVESTMENTS June 30, 1999 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- ----------------
<S> <C> <C>
TENNESSEE (CONTINUED)
Montgomery Cnty., TN Public Building Authority RB, Tennessee
County Loan, 3.80%(1)............................................................... $17,000,000 $ 17,000,000
Sevier Cnty., TN Public Building Authority RB, Local Government
Public Improvements-III-D-6, AMBAC Insured, 3.65%(1)................................ 5,000,000 5,000,000
----------------
77,500,000
----------------
TEXAS--13.2%
Austin, TX RRB, Prerefunded, Series B, 7%, 9/1/99(2)................................... 1,000,000 1,006,039
Dallas, TX Waterworks & Sewer ABN AMRO Munitops Certificates,
Series 1998-19, 3.20%(1)............................................................ 8,000,000 8,000,000
De Soto, TX IDAU RRB, National Service Industries, Inc. Project, 3.65%(1).............. 7,150,000 7,150,000
Greater East TX HEAU RRB, Student Loans, Series A, 3.15%, 5/1/00(2).................... 9,000,000 9,000,000
Harris Cnty., TX Criminal Justice Center RB, Series SG96, FGIC Insured, 3.77%(1)....... 7,475,000 7,475,000
Harris Cnty., TX Toll Road COP, 3.40%(1)............................................... 9,900,000 9,900,000
Hockley Cnty., TX IDV Corp. PC RB, Amoco/Standard Oil Co. Project,
2.90%, 9/1/99(2).................................................................... 28,750,000 28,750,000
Houston, TX WSS RB, Series SG120, 3.77%(1)............................................. 37,600,000 37,600,000
San Antonio, TX Electric & Gas RRB, Series G-101, 3.77%(1)............................. 20,000,000 20,000,000
San Antonio, TX Electric & Gas RRB, Series SG105, 3.47%(1)............................. 20,000,000 20,000,000
TX Gulf Coast Waste Disposal Authority Environmental Improvement
RB, Amoco Oil Co. Project, 2.90%, 9/1/99(2)......................................... 7,000,000 7,000,000
TX Gulf Coast Waste Disposal Authority RRB, Armco, Inc. Project, 3.65%(1).............. 6,000,000 6,000,000
TX TAN & RAN, 4.50%, 8/31/99........................................................... 48,000,000 48,115,357
TX TUAU RB, Dallas Northtollway, Series SG70, 3.77%(1)................................. 15,325,000 15,325,000
Yoakum Cnty., TX IDV PC RB, Amoco Project, 3.15%, 11/1/99(2)........................... 5,265,000 5,265,000
----------------
230,586,396
----------------
UTAH--3.9%
UT HFA MH RRB, Candlestick Apts. Project, 3.60%(1)..................................... 6,400,000 6,400,000
UT Intermountain Power Agency RRB, Series E, AMBAC Insured, 3.125%, 9/15/99(2)......... 24,000,000 24,000,000
UT Intermountain Power Agency RRB, Series F, AMBAC Insured, 3.10%, 9/15/99(2).......... 37,700,000 37,700,000
----------------
68,100,000
----------------
VIRGINIA--0.2%
Henry Cnty., VA IDAU RB, Amfibe, Inc. Project, 3.90%(1)................................ 2,900,000 2,900,000
----------------
</TABLE>
10
<PAGE> 12
STATEMENT OF INVESTMENTS June 30, 1999 (Continued)
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
----------- --------------
<S> <C> <C>
WASHINGTON--2.4%
Port Longview, WA IDV RB, Longview Fibre Co. Project, 3.75%(1)......................... $ 5,000,000 $ 5,000,000
Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 1, 3.80%(1)............. 910,000 910,000
Redmond, WA Public Corp. Industrial RRB, Genie Industries, Lot 2, 3.80%(1)............. 1,620,000 1,620,000
Seattle, WA IDV Corp. RB, 3.70%(1)..................................................... 4,050,000 4,050,000
WA GORB, Series 1995C, 3.69%(1)........................................................ 13,710,000 13,710,000
WA GORB, Series 1995C, AT-8 & R-95B, 5.50%, 7/1/99..................................... 2,000,000 2,000,000
WA GORB, Series R-94A, 4.40%, 8/1/99................................................... 10,000,000 10,007,838
WA PP Supply System RRB, Nuclear Project No. 1, Prerefunded,
Series A, 7.50%, 7/1/99(2).......................................................... 4,650,000 4,743,000
--------------
42,040,838
--------------
WISCONSIN--0.3%
WI Transportation RB, Prerefunded, Series A, 6.25%, 7/1/99(2).......................... 5,000,000 5,100,000
---------------
DISTRICT OF COLUMBIA--0.6%
DC HFA MH RB, Tyler House Trust Certificates Partnership A, 3.717%(1).................. 10,800,000 10,800,000
--------------
U.S. POSSESSIONS--2.3%
Greystone Tax Exempt Certificates RB, Trust 1998-1, Sr. Certificate
Beneficial Ownership, 3.78%(1)...................................................... 30,800,000 30,800,000
PR CMWLTH TAN & RAN, 3.50%, 7/30/99.................................................... 9,500,000 9,504,841
--------------
40,304,841
--------------
Total Investments, at Value............................................................ 108.1% 1,891,903,328
--------------
Liabilities in Excess of Other Assets.................................................. (8.1) (142,422,073)
------------ --------------
Net Assets............................................................................. 100.0% $1,749,481,255
=========== ==============
</TABLE>
11
<PAGE> 13
STATEMENT OF INVESTMENTS June 30, 1999 (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 IDV--Industrial Development
CD--Commercial Development LGAC--Local Government Assistance Corp.
CDAU--Communities Development Authority MAG--Mtg. Agency
CDC--Community Development Corp. MCFFA--Medical Care Facilities Finance Agency
CMWLTH--Commonwealth MH--Multifamily Housing
COP--Certificates of Participation MPA--Municipal Power Agency
DA--Dormitory Authority MTAU--Metropolitan Transportation Authority
DAU--Development Authority NYC--New York City
ED--Economic Development NYS--New York State
EDAU--Economic Development Authority PAU--Power Authority
ERDAUPC--Energy Research & Development Authority PAUNYNJ--Port Authority of New York & New Jersey
Pollution Control PC--Pollution Control
FA--Facilities Authority POAU--Port Authority
FAU--Finance Authority PP--Public Power
GOB--General Obligation Bonds RA--Redevelopment Agency
GORB--General Obligation Refunding Bonds RAN--Revenue Anticipation Nts.
HA--Hospital Authority RB--Revenue Bonds
HAU--Housing Authority RRB--Revenue Refunding Bonds
HCF--Health Care Facilities SDI--School District
HEAU--Higher Education Authority SFM--Single Family Mtg.
HEFAU--Higher Educational Facilities Authority SPO--Special Obligations
HFA--Housing Finance Agency SWD--Solid Waste Disposal
HFAU--Health Facilities Authority TAN--Tax Anticipation Nts.
HFFAU--Health Facilities Finance Authority TBTAU--Triborough Bridge & Tunnel Authority
IDA--Industrial Development Agency TUAU--Turnpike Authority
IDAU--Industrial Development Authority WSS--Water Sewer System
</TABLE>
1. Floating or variable rate obligation maturity 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,
1999. This 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.
2. Put obligation redeemable at full face value on the date reported.
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 $22,162,000 or 1.27% of the Trust's net
assets as of June 30, 1999.
See accompanying Notes to Financial Statements.
12
<PAGE> 14
STATEMENT OF ASSETS AND LIABILITIES June 30, 1999
Centennial Tax Exempt Trust
<TABLE>
<S> <C>
ASSETS
Investments, at value--see accompanying statement .................................................... $1,891,903,328
Receivables and other assets:
Shares of beneficial interest sold.................................................................. 17,240,098
Interest ........................................................................................... 17,122,132
Investments sold ................................................................................... 7,143,021
Other .............................................................................................. 116,445
--------------
Total assets...................................................................................... 1,933,525,024
--------------
LIABILITIES
Bank overdraft ....................................................................................... 5,010,342
Payables and other liabilities:
Investments purchased............................................................................... 141,147,608
Shares of beneficial interest redeemed ............................................................. 35,849,075
Dividends........................................................................................... 1,651,504
Service plan fees .................................................................................. 178,779
Transfer and shareholder servicing agent fees....................................................... 89,937
Shareholder reports ................................................................................ 78,444
Other .............................................................................................. 38,080
--------------
Total liabilities................................................................................. 184,043,769
--------------
NET ASSETS .......................................................................................... $1,749,481,255
==============
COMPOSITION OF NET ASSETS
Paid-in capital....................................................................................... $1,749,961,465
Accumulated net realized loss on investment transactions ............................................. (480,210)
--------------
NET ASSETS--applicable to 1,749,977,433 shares of
beneficial interest outstanding .................................................................. $1,749,481,255
==============
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE ....................................... $1.00
</TABLE>
See accompanying Notes to Financial Statements.
13
<PAGE> 15
STATEMENT OF OPERATIONS For the Year Ended June 30, 1999
Centennial Tax Exempt Trust
<TABLE>
<S> <C>
INVESTMENT INCOME--Interest ............................................................................ $61,856,853
-----------
EXPENSES
Management fees--Note 3 ................................................................................ 7,950,188
Service plan fees--Note 3 .............................................................................. 3,773,272
Transfer and shareholder servicing agent fees--Note 3 .................................................. 817,705
Custodian fees and expenses ............................................................................ 237,108
Shareholder reports .................................................................................... 131,295
Registration and filing fees ........................................................................... 112,318
Legal, auditing and other professional fees ............................................................ 41,810
Trustees' compensation ................................................................................. 21,655
Other .................................................................................................. 22,770
-----------
Total expenses ....................................................................................... 13,108,121
Less expenses paid indirectly--Note 1............................................................... (136,809)
-----------
Net expenses ......................................................................................... 12,971,312
-----------
NET INVESTMENT INCOME .................................................................................. 48,885,541
-----------
NET REALIZED GAIN ON INVESTMENTS ....................................................................... 102,645
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................................... $48,988,186
===========
</TABLE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended June 30,
------------------------------------------
1999 1998
------------------ ----------------
<S> <C> <C>
OPERATIONS
Net investment income ................................................... $ 48,885,541 $ 56,209,459
Net realized gain (loss) ................................................ 102,645 (569,188)
-------------- --------------
Net increase in net assets resulting from operations ..................... 48,988,186 55,640,271
-------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS .............................. (48,885,541) (56,328,253)
-------------- --------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions--Note 2 .............................. (79,607,151) 180,927,614
-------------- --------------
NET ASSETS
Total increase (decrease) ................................................ (79,504,506) 180,239,632
Beginning of period ...................................................... 1,828,985,761 1,648,746,129
-------------- --------------
End of period ............................................................ $1,749,481,255 $1,828,985,761
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
14
<PAGE> 16
FINANCIAL HIGHLIGHTS
Centennial Tax Exempt Trust
<TABLE>
<CAPTION>
Year Ended June 30,
---------------------------------------------------
1999 1998 1997 1996 1995
------ ------ ------ ------ ------
<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 .03 .03
Dividends and distributions to shareholders ..................... (.03) (.03) (.03) (.03) (.03)
------ ------ ------ ------ ------
Net asset value, end of period ................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
TOTAL RETURN(1) ................................................ 2.61% 3.12% 3.01% 3.16% 3.17%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) ........................ $1,749 $1,829 $1,649 $1,426 $1,315
Average net assets (in millions)................................. $1,896 $1,832 $1,591 $1,473 $1,217
Ratios to average net assets:(2)
Net investment income .......................................... 2.58% 3.07% 2.95% 3.12% 3.13%
Expenses(3)...................................................... 0.69% 0.69% 0.72% 0.72% 0.73%
</TABLE>
1. Assumes a $1,000 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. Total returns are not annualized for
periods of less than one full year.
2. Annualized for periods less than one full year.
3. The expense ratio reflects the effect of expenses paid indirectly by the
Trust.
See accompanying Notes to Financial Statements.
15
<PAGE> 17
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 maximum
short-term interest income exempt from federal income taxes that is consistent
with low capital risk and the maintenance of liquidity. The Trust's investment
advisor is Centennial Asset Management Corporation (the Manager), a subsidiary
of OppenheimerFunds, Inc. (OFI). The following is a summary of significant
accounting policies consistently followed by the Trust.
Securities 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. As of June 30, 1999, the Trust had
available for federal income tax purposes an unused capital loss carryover of
approximately $467,000, which expires between 2006 and 2007.
Distributions to Shareholders. Distributions to shareholders, which are
determined in accordance with income tax regulations, are recorded on the
ex-dividend date.
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Trust.
Other. Investment transactions are accounted for as of 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.
16
<PAGE> 18
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, 1999 Year Ended June 30, 1998
--------------------------------- --------------------------------
Shares Amount Shares Amount
-------------- ---------------- ------------- ---------------
<S> <C> <C> <C> <C>
Sold ........................ 5,631,707,953 $ 5,631,707,953 5,609,068,596 $ 5,609,068,596
Dividends and distributions
reinvested ................ 48,085,400 48,085,400 55,170,917 55,170,917
Redeemed..................... (5,759,400,504) (5,759,400,504) (5,483,311,899) (5,483,311,899)
-------------- --------------- -------------- ---------------
Net increase (decrease).... (79,607,151) $ (79,607,151) 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 the Trust's Agreement,
when the value of the 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 year
ended June 30, 1999 was 0.42% of average annual net assets.
Shareholder Services, Inc. (SSI), a subsidiary of OFI, is the transfer and
shareholder servicing agent for the Trust and for other registered investment
companies. SSI's total costs of providing such services are allocated ratably to
these companies.
Under an approved service plan, the Trust may expend up to 0.20% of its net
assets annually to reimburse 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, 1999, the Trust paid $16,878 to a
broker/dealer affiliated with the Manager as reimbursement for
distribution-related expenses.
17
<PAGE> 19
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,
1999, the related statement of operations for the year then ended, the
statements of changes in net assets for the years ended June 30, 1999 and 1998,
and the financial highlights for the period July 1, 1994 to June 30, 1999. 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 as of June
30, 1999, 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 as of June 30, 1999, 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, 1999
18
<PAGE> 20
FEDERAL INCOME TAX INFORMATION (Unaudited)
Centennial Tax Exempt Trust
In early 2000, shareholders will receive information regarding all dividends and
distributions paid to them by the Trust during calendar year 1999. 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,
1999 are eligible for the corporate dividend-received deduction. The dividends
were derived from interest on municipal bonds and are not subject to federal
income tax. To the extent a shareholder is subject to any state or local tax
laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Trust to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
19
<PAGE> 21
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
George C. Bowen, Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Michael J. Carbuto, Vice President
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Vice President and Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Investment Advisor and Distributor
Centennial Asset Management Corporation
Transfer and Shareholder Servicing Agent
Shareholder Services, Inc.
Custodian of Portfolio Securities
Citibank, N.A.
Independent Auditors
Deloitte & Touche LLP
Legal Counsel
Myer, Swanson, Adams & Wolf, P.C.
This is a copy of a report to shareholders of Centennial Tax
Exempt Trust. This report must be preceded or accompanied by a
Prospectus of Centennial Tax Exempt Trust. For material
information concerning the Trust, see the Prospectus.
For shareholder servicing, call:
1-800-525-9310 (in U.S.)
303-671-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5143
Denver, CO 80217-5143
RA0160.001.0699 [PRINTED ON RECYCLED PAPER LOGO]
