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[Cover Page]
1998 SEMIANNUAL REPORT
CENTENNIAL AMERICA FUND, L.P.
JUNE 30, 1998
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JAMES C. SWAIN
Chairman
Centennial America Fund, L.P.
BRIDGET A. MACASKILL
President
Centennial America Fund, L.P.
Dear Shareholder:
In a period of excitement and volatility for stock markets here and abroad,
money market funds, such as Centennial America Fund, L.P., generally continued
to provide stable returns. Yields moved in a very narrow range, as the Federal
Reserve Board, which raises and lowers short-term interest rates based on its
view of inflation, stayed on the sidelines for the entire six-month period.
Two opposing forces have kept the Fed from raising or lowering rates. On one
hand, the U.S. economy continues to grow at a strong pace, with the unemployment
rate at just 4.5% and consumer confidence soaring. On the other hand, the Asian
financial crisis shows no signs of easing, which has weakened global demand for
goods and services. Since the United States is a major exporter to Asia,
slackening demand and devalued currencies in the Far East have created a
dampening effect on inflation. Remarkably, seven years into an economic
expansion, U.S. inflation has now been running below 2%.
For the six months ended June 30, 1998, Centennial America Fund, L.P.
produced a compounded annualized yield of 4.65%. Without compounding, the
corresponding yield was 4.55%. The seven-day annualized yields, with and
without compounding, on June 30, 1998 were 4.67% and 4.57%,
respectively.(1) It is important to remember that an investment in the Fund
is neither insured nor guaranteed by the U.S. government, and there is no
assurance that the Fund will maintain a stable $1.00 share price in the future.
During the period, the Asian crisis boosted worldwide demand for U.S. Treasury
bills, as investors sought safety and liquidity for their money. That extra
demand boosted T-bill prices and reduced their yields. As a result, yields on
U.S. government agency securities were often significantly higher than those of
T-bills. To achieve greater yield without incurring additional credit risk, most
of the portfolio was invested in agency securities, which offered a slightly
higher yield than T-bills.
When the difference between T-bill yields and U.S. government agency yields
narrowed, we purchased T-bills. Since T-bills are much more liquid than
government agency securities, they are quite attractive to us as money market
fund managers. In addition, because of the unusual fluctuation in T-bill yields
arising from the Asian crisis, it was possible to buy T-bills, watch them
closely, and then sell them at a substantial gain after only a few weeks or
months.
During the rest of 1998 and beyond, we plan to continue monitoring global events
so that we can position the portfolio accordingly. We will also continue to
invest conservatively, always keeping in mind your objectives of safety and
liquidity.
Thank you for your confidence in Centennial America Fund, L.P. We look forward
to helping you reach your investment goals, part of our commitment to you as THE
RIGHT WAY TO INVEST.
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Sincerely,
/S/James C. Swain
James C. Swain
/S/Bridget A. Macaskill
Bridget A. Macaskill
July 22, 1998
1. Compounded yields assume reinvestment of dividends. Past performance
is not indicative of future results.
2 Centennial America Fund, L.P.
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<TABLE>
<CAPTION>
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STATEMENT OF INVESTMENTS June 30, 1998 (Unaudited)
Centennial America Fund, L.P.
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C>
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U.S. GOVERNMENT AGENCIES - 78.3%
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Federal Farm Credit Bank, 5.42%, 7/7/98 $ 640,000 $ 639,422
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Federal Home Loan Bank:
5.41%, 8/12/98 575,000 571,371
5.55%, 7/10/98 710,000 709,015
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Federal Home Loan Mortgage Corp.:
5.42%, 7/15/98 802,000 800,309
5.43%, 7/1/98 660,000 660,000
5.45%, 7/20/98 800,000 797,673
5.46%, 7/17/98 895,000 892,828
5.46%, 7/9/98 389,000 388,528
5.46%, 7/14/98 802,000 800,413
5.48%, 7/27/98 545,000 542,843
5.48%, 7/23/98 812,000 809,281
5.49%, 7/31/98 632,000 629,109
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Federal National Mortgage Assn.:
5.43%, 7/17/98 359,000 358,134
5.475%, 7/22/98 640,000 637,956
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Student Loan Marketing Assn., guaranteeing commercial paper of:
NEBHELP, Inc.:
5.53%, 7/10/98(1) 876,000 874,789
5.54%, 7/27/98(1) 1,000,000 995,999
New Hampshire Higher Education Loan Corp., Commercial Paper Nts., Series 1995A:
5.48%, 7/29/98 1,255,000 1,249,651
5.48%, 7/30/98 832,000 828,327
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USA Group Secondary Market Services, Inc., Education Loan Revenue Nts., Series A:
5.48%, 7/17/98 1,200,000 1,197,077
5.50%, 7/8/98 536,000 535,427
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Total U.S. Government Agencies 14,918,152
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REPURCHASE AGREEMENTS - 22.0%
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Repurchase agreement with PaineWebber, Inc., 6.10%, dated 6/30/98, to be
repurchased at $4,200,712 on 7/1/98, collateralized by Government National
Mortgage Assn. Participation Nts., 6.50%-7.50%, 1/15/23-1/15/28, with a value of
$2,681,612, and Federal National Mortgage Assn. Participation Nts., 6.50%-7.50%,
8/1/11-2/1/28, with a value of $1,609,261 4,200,000 4,200,000
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TOTAL INVESTMENTS, AT VALUE 100.3% 19,118,152
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LIABILITIES IN EXCESS OF OTHER ASSETS (0.3) (56,605)
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NET ASSETS 100.0% $19,061,547
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1. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $1,870,788, or 9.81% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Managing General Partners.
See accompanying Notes to Financial Statements.
3
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<TABLE>
<CAPTION>
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STATEMENT OF ASSETS AND LIABILITIES June 30, 1998 (Unaudited)
Centennial America Fund, L.P.
<S> <C>
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ASSETS
Investments, at value (including repurchase agreement of $4,200,000)
- see accompanying statement $19,118,152
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Cash 85,475
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Receivables:
Shares of beneficial interest sold 8,096
Interest 683
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Other 21,346
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Total assets 19,233,752
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LIABILITIES
Payables and other liabilities:
Shares of beneficial interest redeemed 116,846
Dividends 27,265
Shareholder reports 14,172
Service plan fees 8,473
Other 5,449
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Total liabilities 172,205
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NET ASSETS $19,061,547
=====================
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COMPOSITION OF NET ASSETS
Paid-in capital - applicable to 19,061,547 shares of beneficial interest outstanding $19,061,547
=====================
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NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $1.00
</TABLE>
See accompanying Notes to Financial Statements.
4
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<TABLE>
<CAPTION>
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STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1998 (Unaudited)
Ventennial America Fund, L.P.
<S> <C>
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INVESTMENT INCOME - Interest $441,763
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EXPENSES
Management fees - Note 3 35,560
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Service plan fees - Note 3 15,286
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Transfer and shareholder servicing agent fees - Note 3 9,391
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Shareholder reports 8,563
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Custodian fees and expenses 6,126
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Registration and filing fees 3,948
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Legal, auditing and other professional fees 2,990
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Managing General Partners' fees and expenses 1,129
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Insurance expenses 881
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Other 62
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Total expenses 83,936
Less expenses paid indirectly - Note 3 (2,275)
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Net expenses 81,661
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NET INVESTMENT INCOME $360,102
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STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
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<S> <C> <C>
OPERATIONS
Net investment income $360,102 $739,196
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DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (360,102) (739,196)
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BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions - Note 2 4,481,432 (4,081,282)
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NET ASSETS
Total increase (decrease) 4,481,432 (4,081,282)
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Beginning of period 14,580,115 18,661,397
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End of period $19,061,547 $14,580,115
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</TABLE>
See accompanying Notes to Financial Statements.
5
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<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Centennial America Fund, L.P.
Six Months
Ended June 30, Year Ended December 31,
1998 (Unaudited) 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
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Per Share Operating Data
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
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Income from investment operations - net
investment income and net realized gain .02 .05 .05 .04 .03 .02
Dividends and distributions to shareholders (.02) (.05) (.05) (.04) (.03) (.02)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===================================================================================
==================================================================================================================================
Total Return (1) 2.26% 4.63% 4.69% 4.56% 2.91% 2.23%
==================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $19,062 $14,580 $18,661 $11,102 $6,201 $4,349
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Average net assets (in thousands) $15,961 $16,320 $16,998 $ 7,862 $5,693 $4,780
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Ratios to average net assets:
Net investment income 4.55%(2) 4.53% 4.52% 4.48% 2.89% 2.22%
Expenses, before voluntary reimbursement by
the Manager 1.06%(2)(3) 0.98% 0.86% 1.48% 1.47% 1.34%
Expenses, net of voluntary reimbursement by
the Manager N/A N/A N/A N/A N/A 1.13%
</TABLE>
1. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Total returns are not
annualized for periods of less than one full year. Total returns reflect
changes in net investment income only.
2. Annualized.
3. The expense ratio reflects the effect of gross expenses paid indirectly by
the Fund. Prior year expense ratios have not been adjusted.
See accompanying Notes to Financial Statements.
6
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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. Beginning in 1998, according to the
provisions of the 1997 Taxpayer Relief Act, the Fund will elect to be
treated as an "Electing 1987 Partnership". As such it will record a U.S.
Federal income tax provision equal to 3.50% of gross income.
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, 1998 YEAR ENDED DECEMBER 31, 1997
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Sold 23,310,294 $ 23,310,294 44,369,483 $ 44,369,483
Dividends and distributions reinvested 315,636 315,636 706,803 706,803
Redeemed (19,144,498) (19,144,498) (49,157,568) (49,157,568)
----------- ------------ ----------- ------------
Net increase (decrease) 4,481,432 $ 4,481,432 (4,081,282) $ (4,081,282)
=========== ============ ========== ============
</TABLE>
7
<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% of the first $500 million of net assets and 0.40% on net assets over
$500 million.
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.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
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.
8
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CENTENNIAL AMERICA FUND, L.P.
OFFICERS AND MANAGING GENERAL PARTNERS
James C. Swain, Managing General Partner and Chairman
Bridget A. Macaskill, President
Robert G. Avis, Managing General Partner
William A. Baker, Managing General Partner
Charles Conrad, Jr., 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
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 of 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.)
303-768-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5143
Denver, CO 80217-5143
RS0870.001.0698
9