<PAGE>
1995 ANNUAL REPORT
CENTENNIAL
AMERICA FUND, L.P.
- ------------------------------------------------------------------------------
December 31, 1995
RA0870.001.0296
<PAGE>
DEAR SHAREHOLDER:
We are pleased to send you the annual report for Centennial America Fund, L.P.
During the 12 months ended December 31, 1995, the Fund's compounded annualized
yield was 4.62%. The corresponding yield without compounding was 4.52%. The
seven-day annualized yields with and without compounding on December 31, 1995
were 4.68% and 4.58%, respectively.(1)
Money market funds have always been a highly liquid place for cash "on the
sidelines"--earning a steady income while protecting principal.(2) In 1995,
money market funds turned out to be a good investment choice for the
income-oriented investor.
While the 30-year U.S. Treasury yield fell from nearly 8% to 6% during the year,
and rates on intermediate-term bonds fell by nearly as much, money market yields
stayed about the same throughout the year. This made the yield on money market
funds very attractive relative to intermediate-term bonds.
Normally, long-term bonds pay anywhere from three to five percentage points more
than a money market fund. One reason for this situation is the relationship
between money market funds and the inflation rate. Typically, money market
yields are roughly one percentage point above inflation. Assuming that the
annual inflation rate is 2.5%, money market yields would normally be about 3.5%,
while longer-term rates might be as high as 5.5%. However, the current
difference between money market yields and inflation is three times its normal
level. Part of the reason for this anomaly is the successful way in which the
Federal Reserve Board has fought inflation.
By the spring of 1995, the economy stabilized and began to decelerate. And
economists began to speculate that the Fed would lower short-term rates to keep
the economy from going into a recession. Meanwhile, longer-term interest rates
had already begun to decline in anticipation of the Fed action. And although the
Fed reduced short-term interest rates slightly in July, it didn't lower rates
nearly as much as the decline in long-term rates, which are market driven.
With the economy continuing to slow, we believe that additional cuts by the Fed
are likely. And since longer-term rates will probably come down further, we
expect that the relationship between short-term yields and longer-term yields
will remain similar for the time being.
As a result, money market funds continue to offer relatively high yields in
relation to longer-term investments--and in relation to inflation. Thank you for
your confidence in Centennial America Fund. We look forward to helping you
continue to reach your investment goals in the future.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
President, Centennial America Fund, L.P.
January 22, 1996
1. Compounded yields assume reinvestment of dividends. Past performance is
not indicative of future results.
2. The fund is neither insured nor guaranteed by the U.S. government, and
there is no assurance that the Fund will maintain a stable $1 share price in
the future.
2
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<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS December 31, 1995
Centennial America Fund, L.P.
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 81.1%
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Federal Farm Credit Bank:
5.57%, 2/5/96 $ 225,000 $ 223,782
5.58%, 2/16/96 110,000 109,216
5.58%, 2/29/96 500,000 495,427
5.59%, 1/31/96 875,000 870,924
5.76%, 1/23/96 600,000 597,928
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Federal Home Loan Bank:
5.44%, 2/28/96 170,000 168,510
5.45%, 5/10/96 175,000 171,587
5.77%, 2/2/96 600,000 597,035
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Federal Home Loan Mortgage Assn.:
5.34%, 3/29/96 449,000 443,139
5.65%, 1/2/96 618,000 617,903
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Federal National Mortgage Assn.:
5.56%, 1/19/96 725,000 722,985
5.65%, 2/28/96 1,000,000 991,058
5.75%, 1/11/96 500,000 499,215
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Student Loan Marketing Assn., guaranteeing commercial paper of:
New Hampshire Higher Education Loan Corp., Commercial Paper Nts.,
Series 1995A, 5.75%, 1/19/96 854,000 851,545
New Hampshire Higher Education Loan Corp., Commercial Paper Nts.,
Series 1995A, 5.80%, 1/31/96 1,000,000 995,167
Secondary Market Services, Inc., Education Loan Revenue Nts.,
Series-1995A, 5.77%, 1/18/96 650,000 648,229
----------------
Total U.S. Government Obligations (Cost $9,003,650) 9,003,650
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REPURCHASE AGREEMENT - 18.9%
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Repurchase agreement with PaineWebber, Inc., 5.93%, dated 12/29/95,
to be repurchased at $2,101,384 on 1/2/96, collateralized by
Government National Mortgage Assn., 7%-8%, 8/15/23-11/15/25, with a
value of $1,445,242, and Federal National Mortgage Assn., 7.50%,
3/1/24,
with a value of $844,055 (Cost $2,100,000) 2,100,000 2,100,000
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 100.0% 11,103,650
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LIABILITIES IN EXCESS OF OTHER ASSETS 0.0 (1,970)
-------------- ----------------
NET ASSETS 100.0% $ 11,101,680
============== ================
</TABLE>
See accompanying Notes to Financial Statements.
3
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES December 31, 1995
Centennial America Fund, L.P.
<S> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS Investments, at value (including repurchase agreement
of $2,100,000) - see accompanying statement $11,103,650
---------------------------------------------------------------------------------------------------
Cash 32,304
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Receivables:
Shares of beneficial interest sold 18,053
Interest and principal paydowns 1,038
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Other 19,563
------------
Total assets 11,174,608
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- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Shares of beneficial interest redeemed 33,725
Shareholder reports 5,149
Service plan fees 4,755
Transfer and shareholder servicing agent fees 1,404
Dividends 1,341
Other 26,554
------------
Total liabilities 72,928
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- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $11,101,680
------------
------------
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COMPOSITION OF Paid-in capital $11,093,483
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NET ASSETS Accumulated net realized gain on investment transactions 8,197
---------------------------------------------------------------------------------------------------
Net assets - applicable to 11,093,483 shares of beneficial
interest outstanding $11,101,680
------------
------------
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NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $1.00
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995
Centennial America Fund, L.P.
<S> <C>
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INVESTMENT INCOME Interest $466,986
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EXPENSES Management fees - Note 3 35,312
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Registration and filing fees 27,000
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Service plan fees - Note 3 14,345
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Custodian fees and expenses 9,822
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Legal and auditing fees 7,930
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Transfer and shareholder servicing agent fees - Note 3 6,052
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Shareholder reports 3,551
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Insurance expenses 2,160
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Managing General Partners' fees and expenses 1,750
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Other 8,147
---------
Total expenses 116,069
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NET INVESTMENT INCOME 350,917
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NET REALIZED GAIN 8,197
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $359,114
---------
---------
</TABLE>
================================================================================
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
Centennial America Fund, L.P.
YEAR ENDED DECEMBER 31,
1995 1994
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS Net investment income $350,917 $164,636
---------------------------------------------------------------------------------------------------
Net realized gain 8,197 --
-------------------------------
Net increase in net assets resulting
from operations 359,114 164,636
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DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS (350,917) (164,636)
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BENEFICIAL INTEREST Net increase in net assets resulting from
TRANSACTIONS beneficial interest transactions - Note 2 4,892,850 1,851,622
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NET ASSETS Total increase 4,901,047 1,851,622
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Beginning of period 6,200,633 4,349,011
-------------------------------
End of period $11,101,680 $6,200,633
-------------------------------
-------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Centennial America Fund, L.P.
Year Ended December 31,
1995 1994 1993 1992 1991(2) 1990(2)(3) 1989(2) 1988(2) 1987(1)(2)
- ------------------------------------------------------------------------------------------------------------------------------------
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PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations - net
investment income and net realized gain .04 .03 .02 .03 .14 .10 .08 .09 .05
Dividends and distributions to shareholders (.04) (.03) (.02) (.03) (.14) (.10) (.08) (.09) (.05)
- ------------------------------------------==========================================================================================
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
==========================================================================================
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TOTAL RETURN, AT NET ASSET VALUE(4) 4.56% 2.91% 2.23% 3.92% 0.35% N/A N/A N/A N/A
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RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $11,102 $6,201 $4,349 $5,253 $5,056 $5,486 $8,167 $8,808 $8,190
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $7,862 $5,693 $4,780 $5,323 $5,217 $6,819 $8,589 $9,949 $3,573
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.48% 2.89% 2.22% 3.64% 7.08% 7.87% 8.15% 8.77% 8.32%(5)
Expenses, before voluntary reimbursement
by the Manager 1.48% 1.47% 1.34% 1.86% 2.00% 1.96% 1.96% 2.14% 3.05%(5)
Expenses, net of voluntary reimbursement
by the Manager N/A N/A 1.13% 0.60% 1.91% N/A 1.62% 0.92% 0.74%(5)
<FN>
1. For the period from May 14, 1987 (commencement of operations) to December
31, 1987.
2. All numbers of shares and per share data have been restated to reflect a
10.51 for 1 stock split effective December 5, 1991.
3. On May 25, 1990, OppenheimerFunds, Inc. became the investment advisor to the
Fund.
4. 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 calcu-
lated 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.
5. Annualized.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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>
YEAR ENDED DECEMBER 31, 1995 YEAR ENDED DECEMBER 31, 1994
----------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Sold 32,857,284 $32,857,284 18,665,883 $18,665,883
Dividends and
distributions reinvested 326,936 326,936 147,846 147,846
Redeemed (28,291,370) (28,291,370) (16,962,107) (16,962,107)
------------ ------------ ------------ ------------
Net increase 4,892,850 $ 4,892,850 1,851,622 $ 1,851,622
============ ============ ============ ============
</TABLE>
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (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 .45% on the
first $500 million of net assets and .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 state 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 .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.
8
<PAGE>
INDEPENDENT AUDITORS' REPORT
Centennial America Fund, L.P.
The Managing General Partners and Shareholders of
Centennial America Fund, L.P.:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Centennial America Fund, L.P. as of December
31, 1995, the related statement of operations for the year then ended, the
statements of changes in net assets for the years ended December 31, 1995 and
1994, and the financial highlights for the period January 1, 1990 to December
31, 1995. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for the period May 14, 1987 (commencement of
operations) to December 31, 1989 were audited by other auditors whose report
dated February 2, 1990, expressed an unqualified opinion on those financial
highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1995 by correspondence with the custodian. 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 America
Fund, L.P. at December 31, 1995, 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
January 22, 1996
9
<PAGE>
FEDERAL INCOME TAX INFORMATION (Unaudited)
Centennial America Fund, L.P.
In early 1996, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1995. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal year ended December 31,
1995 are eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund 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.
10
<PAGE>
CENTENNIAL AMERICA FUND, L.P.
OFFICERS AND MANAGING GENERAL PARTNERS
James C. Swain, Managing General Partner and Chairman
Robert G. Avis, Managing General Partner
William A. Baker, Managing General Partner
Charles Conrad, Jr., Managing General Partner
Jon S. Fossel, Managing General Partner
Raymond J. Kalinowski, Managing General Partner
C. Howard Kast, Managing General Partner
Robert M. Kirchner, Managing General Partner
Bridget A. Macaskill, Managing General Partner and President
Ned M. Steel, Managing General Partner
Andrew J. Donohue, Vice President
Dorothy G. Warmack, Vice President
Carol E. Wolf, Vice President
Arthur J. Zimmer, Vice President
George C. Bowen, Vice President, Secretary and Treasurer
Robert J. Bishop, Assistant Treasurer
Scott 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.
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
11
