[COVER PAGE]
1996 Semiannual Report
CENTENNIAL
AMERICA FUND, L.P.
- --------------------------------------------------------------------------------
JUNE 30, 1996
RS0870.001.0696
<PAGE>
DEAR SHAREHOLDER:
The six months ending June 30, 1996 were defined by changing beliefs about
the direction of the economy which, in turn, has had both positive and negative
effects on the securities markets.
Toward the end of 1995, most investors expected that the economy would
continue to show signs of slowing. In fact, many were convinced that the economy
was moving toward recession. Given the prevailing sentiment, it wasn't a
surprise when the Federal Reserve lowered interest rates in an effort to prolong
the economic expansion. The goal: a slow but steady and sustainable rate of
economic growth that would diminish the possibility of recession. The impact of
lower interest rates on both the stock and bond markets was profound. The Dow
Jones Industrial Average reached an all time high, while most sectors of the
bond market chalked up double digit returns.
But in mid-February, the federal government issued a report on job growth
that radically altered investor perceptions. Suddenly, investors believed that
the economy was heating up and inflation was around the corner. In the weeks
that followed, the bond market sold off sharply, as long-term interest rates
spiked upward, with the benchmark 30-year Treasury yield moving above seven
percent. As a result, the bond market weakened between February and June.
Though this market environment has created some concerns for both stock and
bond investors, rising interest rates are good for investors in short-term
securities. Because the portfolio is structured to capture as much yield as
possible without taking on any additional credit risk, the Fund continues to
invest in short maturity money market securities -- especially during the
current market. Although shorter-term securities require us to reinvest the
proceeds we receive upon maturity more often, in a rising rate environment that
means moving into securities issued at higher rates.
For the six months ended June 30, 1996, the Fund's compounded annualized
yield was 4.62%. Its seven-day yields with and without compounding for the
6-month period ended June 30, 1996 were 4.55% and 4.45%, respectively.(1)
As we move through 1996, the strength of the economy continues to be an
uncertainty. However, with higher gasoline and agricultural prices there could
be some upward pressure on inflation over the next several months. As such, we
continue to look for opportunities to add to the portfolio's yield, while
keeping the Fund's average maturity shorter than other money funds and remaining
alert to the possibility that interest rates may move higher or lower in the
coming months.
<PAGE>
We are pleased to be able to maintain a competitive yield, as well as share
price stability, in light of the dramatic changes that have taken place during
the past six months. Thank you for your confidence in Centennial America Fund,
L.P. We look forward to helping you reach your financial goals.
Sincerely,
/S/James C. Swain
James C. Swain
Chairman--Centennial America Fund, L.P.
/S/Bridget A. Macaskill
President--Centennial America Fund, L.P.
July 22, 1996
An investment in the Fund is neither insured nor guaranteed by the U.S.
Government and there can be no assurance that the Fund will be able to maintain
a stable net asset value of $1.00 per share.
1. Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
<PAGE>
<TABLE>
<CAPTION>
==================================================
STATEMENT OF INVESTMENTS June 30, 1996 (Unaudited)
Centennial America Fund, L.P.
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C> <C>
====================================================================================================================================
U.S. GOVERNMENT AGENCIES - 91.9%
- ---------------------------------------------------------------------------------------------------------------------
Federal Farm Credit Bank, 5.28%, 7/11/96 $ 530,000 $ 529,223
----------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
5.27%, 7/1/96 3,311,000 3,311,000
5.18%, 7/25/96 1,000,000 996,547
5.22%, 7/15/96 3,833,000 3,825,157
5.26%, 9/3/96 2,000,000 1,981,298
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Federal National Mortgage Assn.:
4.93%, 7/25/96 1,500,000 1,495,070
5.26%-5.62%, 7/2/96 2,000,000 1,999,859
5.26%, 8/6/96 575,000 571,975
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Student Loan Marketing Assn., guaranteeing commercial paper
of Secondary Market Services, Inc., Education Loan Revenue
Nts. Services, Series A, 5.27%, 7/8/96 913,000 912,064
------------
Total U.S. Government Agencies (Cost $15,622,193) 15,622,193
=====================================================================================================================
REPURCHASE AGREEMENT - 8.2%
- ---------------------------------------------------------------------------------------------------------------------
Repurchase agreement with PaineWebber, Inc., 5.55%,
dated 6/28/96, to be repurchased at $1,400,648 on 7/1/96,
collateralized by Federal National Mortgage Assn. Participation
Nts., 6.50%-7.50%, 3/1/09-3/1/26, with a value of $1,436,560,
and Federal Home Loan Mortgage Corp. Participation Nts.,
7%, 12/1/22, with a value of $132,887 (Cost $1,400,000) 1,400,000 1,400,000
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TOTAL INVESTMENTS, AT VALUE 100.1% 17,022,193
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LIABILITIES IN EXCESS OF OTHER ASSETS (0.1) (17,913)
------ ------------
NET ASSETS 100.0% $17,004,280
====== ============
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================================
STATEMENT OF ASSETS AND LIABILITIES June 30, 1996 (Unaudited)
Centennial America Fund, L.P.
=====================================================================================================================
<S> <C> <C>
ASSETS Investments, at value (including repurchase agreement
of $1,400,000)- see accompanying statement $17,022,193
-------------------------------------------------------------------------------------------
Cash 46,272
-------------------------------------------------------------------------------------------
Receivables:
Interest 28,593
Shares of beneficial interest sold 14,433
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Other 1,469
------------
Total assets 17,112,960
=====================================================================================================================
LIABILITIES Payables and other liabilities:
Shares of beneficial interest redeemed 69,833
Dividends 21,871
Service plan fees 8,732
Custodian fees and expenses 3,590
Transfer and shareholder servicing agent fees 1,040
Other 3,614
-------------
Total liabilities 108,680
=====================================================================================================================
NET ASSETS $17,004,280
============
=====================================================================================================================
COMPOSITION OF Paid-in capital - applicable to 17,004,280 shares of
NET ASSETS beneficial interest outstanding $17,004,280
============
=====================================================================================================================
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $1.00
=====
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================================
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1996 (Unaudited)
Centennial America Fund, L.P.
<S> <C> <C>
=====================================================================================================================
INVESTMENT INCOME Interest $ 444,962
=====================================================================================================================
EXPENSES Management fees - Note 3 37,208
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Service plan fees - Note 3 15,839
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Legal and auditing fees 5,084
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Shareholder reports 3,901
-------------------------------------------------------------------------------------------
Custodian fees and expenses 3,256
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Registration and filing fees 2,338
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Transfer and shareholder servicing agent fees - Note 3 2,188
-------------------------------------------------------------------------------------------
Managing General Partners' fees and expenses 1,232
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Insurance expenses 1,056
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Other 280
------------
Total expenses 72,382
=====================================================================================================================
NET INVESTMENT INCOME 372,580
=====================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 372,580
============
</TABLE>
<TABLE>
<CAPTION>
=====================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995
<S> <C> <C> <C>
=====================================================================================================================
OPERATIONS Net investment income $ 372,580 $ 350,917
-------------------------------------------------------------------------------------------
Net realized gain -- 8,197
-------------------------------
Net increase in net assets resulting from operations 372,580 359,114
=====================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS
TO SHAREHOLDERS (380,777) (350,917)
=====================================================================================================================
BENEFICIAL INTEREST Net increase in net assets resulting from
TRANSACTIONS beneficial interest transactions - Note 2 5,910,797 4,892,850
=====================================================================================================================
NET ASSETS Total increase 5,902,600 4,901,047
-------------------------------------------------------------------------------------------
Beginning of period 11,101,680 6,200,633
-------------------------------
End of period
$17,004,280 $11,101,680
============ ===========
</TABLE>
See accompanying Notes to Financial Statements.
6
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Centennial America Fund, L.P.
Six Months
Ended June 30, Year Ended December 31,
1996 (Unaudited) 1995 1994 1993 1992 1991(1)
============================================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C> <C>
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 .02 .04 .03 .02 .03 .14
Dividends and distributions to shareholders (.02) (.04) (.03) (.02) (.03) (.14)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=============================================================================
============================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 2.32% 4.56% 2.91% 2.23% 3.92% 0.35%
============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $17,004 $11,102 $6,201 $4,349 $5,253 $5,056
- ----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $16,660 $ 7,862 $5,693 $4,780 $5,323 $5,217
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.50%(3) 4.48% 2.89% 2.22% 3.64% 7.08%
Expenses, before voluntary reimbursement
by the Manager 0.87%(3) 1.48% 1.47% 1.34% 1.86% 2.00%
Expenses, net of voluntary reimbursement
by the Manager N/A N/A N/A 1.13% 0.60% 1.91%
</TABLE>
1. All numbers of shares and per share data have been restated to reflect a
10.51 for 1 stock split effective December 5, 1991.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Total returns reflect
changes in net investment income only.
3. Annualized.
See accompanying Notes to Financial Statements.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Centennial America Fund, L.P.
1. SIGNIFICANT ACCOUNTING POLICIES
Centennial America Fund, L.P. (the Fund) is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund's investment objective is to seek as high a level
of current income as is consistent with the preservation of capital and the
maintenance of liquidity. The Fund is organized as a limited partnership and
issues one class of shares, in the form of limited partnership interests. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The following
is a summary of significant accounting policies consistently followed by the
Fund.
INVESTMENT VALUATION. Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
FEDERAL TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to limited partnerships. As a limited
partnership, the Fund is not subject to U.S. federal income tax, and the
character of the income earned and capital gains or losses realized by the Fund
flows directly through to shareholders. Therefore, no federal income or excise
tax provision is required.
DISTRIBUTIONS TO SHAREHOLDERS. The Fund 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 Fund 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.
2. SHARES OF BENEFICIAL INTEREST
The Fund 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 JUNE 30, 1996 YEAR ENDED DECEMBER 31, 1995
------------------------------ ----------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Sold 32,365,442 $32,365,442 32,857,284 $32,857,284
Dividends and distributions
reinvested 343,754 343,754 326,936 326,936
Redeemed (26,798,399) (26,798,399) (28,291,370) (28,291,370)
------------ ------------ ------------ ------------
Net increase 5,910,797 $ 5,910,797 4,892,850 $ 4,892,850
============ ============ ============ ============
</TABLE>
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Centennial America Fund, L.P.
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of 0.45% on
the first $500 million of net assets and 0.40% on net assets in excess of $500
million. The Manager has agreed to reimburse the Fund if aggregate expenses
(with specified exceptions) exceed the most stringent applicable regulatory
limit on Fund expenses.
Shareholder Services, Inc. (SSI), a subsidiary of the Manager, is the transfer
and shareholder servicing agent for the Fund, and for other registered
investment companies. SSI's total costs of providing such services are allocated
ratably to these companies.
Under an approved plan of distribution, the Fund expends 0.20% of its net assets
annually to reimburse Centennial Asset Management Corporation, a subsidiary of
the Manager, for costs incurred in distributing shares of the Fund, including
amounts paid to brokers, dealers, banks and other institutions.
9
<PAGE>
CENTENNIAL AMERICA FUND, L.P.
OFFICERS AND MANAGING GENERAL PARTNERS
James C. Swain, Managing General Partner and Chairman
Bridget A. Macaskill, Managing General Partner and President
Robert G. Avis, Managing General Partner
William A. Baker, Managing General Partner
Charles Conrad, Jr., Managing General Partner
Jon S. Fossel, Managing General Partner
Sam Freedman, Managing General Partner
Raymond J. Kalinowski, Managing General Partner
C. Howard Kast, Managing General Partner
Robert M. Kirchner, Managing General Partner
Ned M. Steel, Managing General Partner
George C. Bowen, Vice President, Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Dorothy G. Warmack, Vice President
Carol E. Wolf, Vice President
Arthur J. Zimmer, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
INVESTMENT ADVISOR
OppenheimerFunds, Inc.
DISTRIBUTOR
Centennial Asset Management Corporation
SUB-DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
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
Fund without examination by the independent auditors.
This is a copy of a report to shareholders of Centennial America Fund, L.P. This
report must be preceded or accompanied by a Prospectus of Centennial America
Fund, L.P. For material information concerning the Fund, 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
10
