CENTENNIAL MONEY MARKET TRUST
CENTENNIAL GOVERNMENT TRUST
CENTENNIAL TAX EXEMPT TRUST
Supplement dated December 1, 1997 to the
Prospectus dated October 1, 1997
The Prospectus is changed as follows:
1. In the paragraph which follows "Annual Trust Operating Expenses (as a
percentage of average net assets)" on page 1-2, the fifth sentence is deleted
and replaced by the following:
"On November 21, 1997, the Manager withdrew its voluntary waiver and amended its
Agreement with the Trust."
2. The first two paragraphs in the section entitled "Fees and Expenses" on pages
A-1 to A-2 are deleted and replaced with the following paragraphs:
o Fees and Expenses. The management fee is payable monthly to the Manager
under the terms of each Trust's Agreement and is computed on the average annual
net assets of the respective Trust as of the close of business each day. The
annual rates applicable to Money Market Trust are as follows: 0.500% of the
first $250 million of net assets; 0.475% of the next $250 million of net assets;
0.450% of the next $250 million of net assets; 0.425% of the next $250 million
of net assets; 0.400% of the next $250 million of net assets; 0.375% of the next
$250 million of net assets; 0.350% of the next $500 million of net assets; and
0.325% of net assets in excess of $2 billion. Furthermore, the Manager
guarantees that the total expenses of Money Market Trust in any fiscal year,
exclusive of taxes, interest and brokerage commissions, and extraordinary
expenses such as litigation costs, shall not exceed, and the Manager undertakes
to pay or refund to Money Market Trust any amount by which such expenses shall
exceed, the lesser of (i) 1.5% of the average annual net assets of Money Market
Trust up to $30 million and 1% of its average annual net assets in excess of $30
million; or (ii) 25% of total annual investment income of Money Market Trust.
The annual rates applicable to Government Trust are as follows: 0.50% of
the first $250 million of net assets; 0.475% of the next $250 million of net
assets; 0.45% of the next $250 million of net assets; 0.425% of the next $250
million of net assets; and 0.40% of net assets in excess of $1 billion.
The annual rates applicable to Tax Exempt Trust are as follows: 0.50% of
the first $250 million of net assets; 0.475% of the next $250 million of net
assets; 0.45% of the next $250 million
Continued
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of net assets; 0.425% of the next $250 million of net assets; 0.40% of the next
$250 million of net assets; 0.375% of the next $250 million of net assets; 0.35%
of the next $500 million of net assets and 0.325% of net assets in excess of $2
billion. Furthermore, under Tax Exempt Trust's Agreement, when the value of Tax
Exempt Trust's net assets is less than $1.5 billion, the annual fee payable to
the Manager shall be reduced by $100,000 based on average net assets computed
daily and paid monthly at the annual rates, but in no event shall the annual fee
be less than $0. See the Statement of Additional Information for an explanation
of the Manager's reimbursement arrangement for the Trusts set forth in their
Agreements. "Investment Management Services" in the Statement of Additional
Information contains more complete information about the Agreements, including a
discussion of expense arrangements, and a description of the exculpation
provisions and portfolio transactions.
December 1, 1997 PS000.006
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