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OPPENHEIMER TAX-EXEMPT CASH RESERVES
SEMI-ANNUAL REPORT JUNE 30, 1994
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OPPENHEIMER FUNDS.
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OPPENHEIMER TAX-EXEMPT CASH RESERVES
Enclosed are the financial statements for Oppenheimer Tax-Exempt Cash Reserves
for the six-month period ended June 30, 1994. I'd like to take this opportunity
to remind you of some exciting changes to the Fund that occurred recently.
In June, you received a proxy statement and ballot on a proposed
reorganization of your Fund into Centennial Tax Exempt Trust. The ballots were
counted, and it was confirmed at the Shareholder Meeting on July 12 that a
majority of you have voted in favor of this proposal. The reorganization
became effective July 22, 1994.
We believe that the reorganization of your Fund into Centennial
Tax Exempt Trust will provide significant benefits to shareholders, and we are
pleased you agree. By combining the two funds, the expenses will be spread
across a larger asset base, and we anticipate that the per-share expenses of the
combined funds will be reduced. And the investment objectives--virtually the
same for both funds will--remain our target.
Just to reiterate, there are relatively few changes to the services
you are offered now that the reorganization has taken place. Please note:
If you had checkwriting privileges for your Oppenheimer Tax-Exempt
Cash Reserves account, new checks should have been sent to you automatically.
The per-check minimum for Centennial Tax Exempt Trust is $250. Of course, if
you haven't received your new checks, you may continue to use your old checks
until the new ones arrive.
Although our PhoneLink and AccountLink services are not available to
Centennial Tax Exempt Trust shareholders, you can still set up automatic
investment or withdrawal plans and make telephone exchanges or redemptions by
calling our toll-free number, 1-800-852-8457.
If you have any questions regarding the services or the reorganization,
please call one of our Customer Service Representatives at 1-800-525-7048.
Jon S. Fossel
Chairman and Chief Executive Officer
July 23, 1994
2 Oppenheimer Tax-Exempt Cash Reserves
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Statement of Investments June 30, 1994 (Unaudited)
Face Market Value
Amount See Note 1
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Municipal Bonds and Notes--99.7%
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Alaska--2.7% Alaska Industrial Development Authority Revenue Bonds,
Providence Medical Office Building, 2.60%(1) $870,000 $870,000
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Arizona--9.3% Apache County, Arizona Industrial Development Authority
Revenue
Bonds, Tucson Electric Power Projects, Series A, 2.50%(1) 1,000,000
1,000,000
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Pima County, Arizona Industrial Development Authority Revenue
Bonds, Tucson Electric Power Projects, 2.35%(1) 1,400,000 1,400,000
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Tempe, Arizona Industrial Development Authority Revenue
Refunding Bonds, Safeway, Inc. Project, 3.30%, 10/17/94(2) 600,000
600,000
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3,000,000
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Arkansas--2.2% Subiaco, Arkansas Industrial Development Revenue Bonds,
Cloves Gear and Products, Inc., 3.20%(1) 700,000 700,000
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Colorado--3.1% Arapahoe County, Colorado Multifamily Revenue Refunding
Bonds, Hunters Run Rental Housing, 2.80%(1) 1,000,000 1,000,000
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Florida--5.2% Dade County, Florida Housing Finance Authority Multifamily
Mtg.
Revenue Bonds, Flamingo Plaza Apts. Project, Series 18, 2.50%(1) 900,000
900,000
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Orange County, Florida Housing Finance Authority Revenue
Refunding Bonds, Monterey Multifamily Housing Project, Series B, 2.95%(1)
788,000 788,000
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1,688,000
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Georgia--3.1% Coweta County, Georgia Development Authority Pollution Control
Revenue Bonds, Georgia Power Co. Plant, Yates Project, 2.45%(1) 1,000,000
1,000,000
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Hawaii--3.1% Hawaii State Department of Budget and Finance Special Purpose
Mtg. Revenue Bonds, Kuakini Medical Center Project, FGIC Insured, 2.75%(1)
1,000,000 1,000,000
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Illinois--5.9% Illinois Development Finance Authority Pollution Control
Revenue
Bonds, Diamond Star Motors Co. Project, 3.65%(1) 900,000 900,000
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Oakbrook Terrace, Illinois Multifamily Housing Mtg. Revenue
Bonds, 3.20%, 7/1/94(2) 1,000,000 1,000,000
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1,900,000
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Kansas--5.3% Ottawa, Kansas Industrial Development Revenue Bonds,
Laich Industries Project, 3.20%(1) 900,000 900,000
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Wichita, Kansas Multifamily Revenue Bonds, Shores, Inc. Project, 3.20%(1)
800,000 800,000
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1,700,000
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Massachusetts--1.7% Massachusetts State Industrial Finance Agency Revenue
Bonds,
Hazen Paper Co., 3.73%(1) 550,000 550,000
3 Oppenheimer Tax-Exempt Cash Reserves
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Statement of Investments (Unaudited) (Continued)
Face Market Value
Amount See Note 1
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Michigan--8.4% Detroit, Michigan Tax Increment Finance Authority Revenue
Bonds, Tax Increment Reserve, 2.75%(1) $700,000 $700,000
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Madison Heights, Michigan Economic Development Revenue
Bonds, Red Roof Inns Project, 3.25%(1) 1,000,000 1,000,000
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Michigan State Job Development Authority Revenue Bonds,
East Lansing Residence Associates Project, 3%(1) 1,000,000 1,000,000
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2,700,000
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New Jersey--3.1% New Jersey Economic Development Authority Manufacturing
Facilities Revenue Bonds, VPR Commerce Center Project, 2.80%(1) 1,000,000
1,000,000
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North Dakota--2.5% Bismarck, North Dakota Industrial Development Revenue
Refunding Bonds, SuperValu, Inc. Project, 2.75%(1) 800,000 800,000
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Ohio--7.6% Cuyahoga County, Ohio Industrial Development Revenue Bonds,
Southwest Ltd. Partnership, 3%, 12/1/94(2) 500,000 500,000
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Licking County, Ohio Industrial Development Revenue Bonds,
Power Industries, Inc. Project, 2.80%, 12/1/94(2) 475,000 475,000
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Miami Valley, Ohio Tax-Exempt Mtg. Trust Revenue Bonds,
Series 86, 4.88%, 10/15/94(2) 1,085,000 1,085,000
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Scioto County, Ohio Health Care Facilities Revenue Bonds,
Hill View Retirement Center, 2.75%, 12/1/94(2) 375,000 375,000
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2,435,000
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Oklahoma--3.1% Cleveland County, Oklahoma Public Facilities Revenue Bonds,
Hunt Development Project, Series A, 2.70%(1) 1,000,000 1,000,000
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Mid-West Tax-Exempt Mtg. Board Trust Revenue Bonds, 3.25%(1) 15,000
15,000
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1,015,000
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Pennsylvania--10.4% Commonwealth of Pennsylvania Six Month Demand
Certificates,
Series A, 3.25%, 11/1/94(2) 145,000 145,000
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Pennsylvania Energy Development Authority Revenue Bonds,
Continental Energy Associates Project, 3.15%(1) 900,000 900,000
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Philadelphia, Pennsylvania Authority for Industrial Development
Revenue Bonds, Franklin Institute Project, 2.65%(1) 1,300,000 1,300,000
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Philadelphia, Pennsylvania Hospital and Higher Educational
Facilities Authority Revenue Bonds, Friends Hospital, Series A, 2.65%(1)
1,000,000 1,000,000
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3,345,000
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South Carolina--5.6% Florence County, South Carolina Industrial Development
Revenue Bonds, Stone Container Corp. Project, 3.15%(1) 800,000 800,000
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South Carolina Jobs and Economic Development Authority
Revenue Bonds, Wellman Income Project, 2.55%(1) 1,000,000 1,000,000
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1,800,000
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Tennessee--3.1% Knox County, Tennessee Industrial Development Board Revenue
Bonds, Weisgarber Partners, FGIC Insured, 2.75%(1) 1,000,000 1,000,000
4 Oppenheimer Tax-Exempt Cash Reserves
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Face Market Value
Amount See Note 1
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Texas--11.2% Harris County, Texas Health Facilities Development Revenue
Bonds, St. Luke's Episcopal Hospital, Series D, 3.30%(1) $1,200,000
$1,200,000
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Houston, Texas Health Facilities Development Revenue Bonds,
Methodist Hospital Project, 3.30%(1) 1,100,000 1,100,000
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Texas State Multi-Modal Water Development Board Revenue
Bonds, Series A, 3.30%(1) 1,300,000 1,300,000
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3,600,000
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Washington--3.1% Washington State General Obligation Refunding Bonds,
Series R-94A, 3.25%, 8/1/94 1,000,000 1,000,257
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Total Investments, at Value (Cost $32,103,257) 99.7% 32,103,257
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Other Assets Net of Liabilities 0.3 105,974
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Net Assets 100.0% $32,209,231
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1. Floating or variable rate obligation maturing 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,
1994. A demand feature allows the recovery of principal at any time, or at
specified intervals not exceeding one year, on up to 30 days' notice.
2. Put obligation redeemable at full face value on the date reported.
See accompanying Notes to Financial Statements.
5 Oppenheimer Tax-Exempt Cash Reserves
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Statement of Assets and Liabilities June 30, 1994 (Unaudited)
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Assets Investments, at value (cost $32,103,257)--see accompanying statement
$32,103,257
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Cash 226,621
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Receivables:
Interest 115,926
Shares of beneficial interest sold 81,192
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Other 749
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Total assets 32,527,745
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Liabilities Payables and other liabilities:
Shares of beneficial interest redeemed 264,729
Service plan fees--Note 3 14,612
Dividends 12,174
Other 26,999
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Total liabilities 318,514
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Net Assets $32,209,231
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Composition of
Net Assets
Paid-in capital $32,210,127
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Accumulated net realized loss from investment transactions (896)
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Net assets--applicable to 32,210,127 shares of beneficial interest outstanding
$32,209,231
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Net Asset Value, Redemption Price and Offering Price Per Share $1.00
See accompanying Notes to Financial Statements.
6 Oppenheimer Tax-Exempt Cash Reserves
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Statement of Operations For the Six Months Ended June 30, 1994 (Unaudited)
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Investment Income Interest $393,517
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Expenses Management fees--Note 3 72,330
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Transfer and shareholder servicing agent fees--Note 3 34,550
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Service plan fees--Note 3 26,108
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Legal and auditing fees 15,721
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Shareholder reports 14,061
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Registration and filing fees 14,004
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Custodian fees and expenses 3,601
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Trustees' fees and expenses 941
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Other 3,711
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Total expenses 185,027
Less assumption of expenses by Oppenheimer Management Corporation--Note 3
(2,312)
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Net expenses 182,715
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Net Increase in Net Assets Resulting From Operations $210,802
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See accompanying Notes to Financial Statements.
7 Oppenheimer Tax-Exempt Cash Reserves
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Statements of Changes in Net Assets
Six Months Ended Year Ended
June 30, 1994 December 31,
(Unaudited) 1993
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Operations Net investment income $210,802 $426,020
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Net realized gain on investments -- 452
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Net increase in net assets resulting from operations 210,802 426,472
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Dividends and Distributions
To Shareholders (210,802) (426,020)
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Beneficial Interest
Transactions
Net increase (decrease) in net assets resulting from beneficial
interest transactions--Note 2 8,312,324 (835,869)
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Net Assets Total increase (decrease) 8,312,324 (835,417)
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Beginning of period 23,896,907 24,732,324
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End of period $32,209,231 $23,896,907
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See accompanying Notes to Financial Statements.
8 Oppenheimer Tax-Exempt Cash Reserves
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Financial Highlights
Six Months
Ended
June 30,
1994 Year Ended December 31,
(Unaudited) 1993 1992 1991 1990 1989(1)
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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 on investments .01 .02 .02 .04 .05 .06
Dividends and distributions
to shareholders (.01) (.02) (.02) (.04) (.05) (.06)
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Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
$1.00
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Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $32,209 $23,897 $24,732 $23,824 $22,628
$9,383
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Average net assets (in thousands) $29,235 $23,781 $24,810
$25,347 $15,968 $5,207
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Number of shares outstanding at
end of period (in thousands) 32,210 23,898 24,734 23,825
22,628 9,383
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Ratios to average net assets:
Net investment income 1.45%(2) 1.79% 2.28% 4.00% 5.21%
5.72%(2)
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Expenses, before voluntary
assumption by the Manager 1.28%(2) 1.41% 1.32% 1.22% 1.44%
1.50%(2)
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Expenses, net of voluntary
assumption by the Manager 1.26%(2) 1.10% 1.00% 1.00% 1.00%
1.00%(2)
1. For the period from January 3, 1989 (commencement of operations) to December
31, 1989.
2. Annualized.
See accompanying Notes to Financial Statements.
9 Oppenheimer Tax-Exempt Cash Reserves
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Notes to Financial Statements (Unaudited)
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1. Significant
Accounting Policies
Oppenheimer Tax-Exempt Cash Reserves (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 advisor is Oppenheimer
Management Corporation (the Manager). The following is a summary of significant
accounting policies consistently followed by the Fund.
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Investment Valuation. Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
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Federal Income Taxes. The Fund 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 tax provision is required.
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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.
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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.
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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:
Six Months Ended June 30, 1994 Year Ended December 31, 1993
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Shares Amount Shares Amount
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Sold 32,826,400 $32,826,400 38,650,212 $38,650,212
Dividends and distributions reinvested 262,128 262,128 356,917
356,917
Redeemed (24,776,204) (24,776,204) (39,842,998) (39,842,998)
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Net increase (decrease) 8,312,324 $8,312,324 (835,869)
$(835,869)
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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 .50% on the
first $250 million of average net assets with a reduction of .025% on each $250
million thereafter, to .40% on net assets in excess of $1 billion. The Manager
has agreed to assume Fund expenses (with specified exceptions) in excess of the
most stringent applicable regulatory limit on Fund expenses. In addition, the
Manager has voluntarily undertaken to assume Fund expenses in excess of 1.10% of
average annual net assets. This voluntary undertaking was terminated, effective
January 22, 1994.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other registered
investment companies. OSS's total costs of providing such services are allocated
ratably to these companies.
Under an approved service plan, the Fund may expend up to .20% of its net
assets annually to reimburse Oppenheimer Funds Distributor, Inc. (OFDI), a
subsidiary of the Manager, for costs incurred in connection with the personal
service and maintenance of accounts that hold shares of the Fund, including
amounts paid to brokers, dealers, banks and other institutions. During the six
months ended June 30, 1994, OFDI paid $3,897 to an affiliated broker/dealer as
reimbursement for personal service and maintenance expenses.
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4. Reorganization
On February 23, 1994, the Trustees adopted an Agreement and Plan of
Reorganization (the Plan). Under the Plan, substantially all of the assets of
Oppenheimer Tax-Exempt Cash Reserves were exchanged for shares of Centennial Tax
Exempt Trust on July 22, 1994, the Closing Date. Oppenheimer Tax-Exempt Cash
Reserves redeemed 31,152,605 shares, valued at $31,152,738, on the Valuation
Date (the business day prior to the Closing Date). The proceeds were reinvested
in shares of Centennial Tax Exempt Trust, resulting in combined net assets of
$1,086,765,782. The exchange is intended to be tax-free. The reorganization was
approved by the shareholders of Oppenheimer Tax-Exempt Cash Reserves at a
meeting held on July 12, 1994. Other than proxy printing and mailing costs to be
paid by Oppenheimer Tax-Exempt Cash Reserves, Oppenheimer Tax-Exempt Cash
Reserves and Centennial Tax Exempt Trust will pay their respective out-of-pocket
expenses associated with the Plan.
10 Oppenheimer Tax-Exempt Cash Reserves
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Oppenheimer Tax-Exempt Cash Reserves
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Officers and Trustees James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee and President
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Michael A. Carbuto, Vice President
Andrew J. Donohue, Vice President
George C. Bowen, Vice President, Secretary and Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
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Investment Advisor Oppenheimer Management Corporation
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Distributor Oppenheimer Funds Distributor, Inc.
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Transfer and Shareholder
Servicing Agent
Oppenheimer Shareholder Services
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Custodian of
Portfolio Securities
Citibank, N.A.
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Independent Auditors Deloitte & Touche
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Legal Counsel Myer, Swanson & Adams, 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 Oppenheimer Tax-Exempt Cash
Reserves. This report must be preceded or accompanied by a Prospectus of
Oppenheimer Tax-Exempt Cash Reserves. For material information concerning the
Fund, see the Prospectus.
11 Oppenheimer Tax-Exempt Cash Reserves
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"HOW MAY I HELP YOU?"
GENERAL INFORMATION
1-800-525-7048
Talk to a Customer Service Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m., and Saturday from 10:00 a.m.
to 2:00 p.m. ET.
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"Just as OppenheimerFunds offers over 30 different mutual funds designed to
help meet virtually every investment need, Oppenheimer Shareholder Services
offers a variety of services to satisfy your individual needs. Whenever you
require help, we're only a toll-free phone call away.
"For personalized assistance and account information, call our General
Information number to speak with our knowledgeable Customer Service
Representatives and get the help you need.
"When you want to make account transactions, it's easy for you to
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"And for added convenience, OppenheimerFunds PhoneLink, an automated
voice response system is available 24 hours a day, 7 days a week. PhoneLink
gives you access to a variety of fund, account, and market information. You can
even make purchases, exchanges and redemptions using your touch-tone phone. Of
course, PhoneLink will always give you the option to speak with a Customer
Service Representative during the hours shown to the left.
"When you invest in OppenheimerFunds, you know youll receive a high
level of customer service. The International Customer Service Association knows
it, too, as it awarded Oppenheimer Shareholder Services a 1993 Award of
Excellence for consistently demonstrating superior customer service.
"Whatever your needs, we're ready to assist you."
[Photograph]
Barbara Hennigar
Chief Executive Officer
Oppenheimer Shareholder Services
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AWARD of
EXCELLENCE
ICSA
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Service Association
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Oppenheimer Funds Distributor, Inc.
P.O. Box 5270
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