Dear Centennial California Tax Exempt Trust Shareholder:
We are pleased to provide you with the 1993 semi-annual report for Centennial
California Tax Exempt Trust.
During the six-month period ended December 31, 1993, the Trust's compounded
annualized yield was 1.81%. This equates to 3.14% for investors in the 42.40%
combined effective federal and California state income tax bracket. The
corresponding yield without compounding was 1.79%. The seven-day annualized
yields with and without compounding at December 31, 1993 were 2.03% and
2.01%, respectively.
In general, the municipal bond market has performed very well throughout
1993. The U.S. economy has remained in a slow growth mode; interest rates
have remained in a relatively low range despite occasional periods of
volatility; and investors have sought out investments in the tax-exempt
market in increasing numbers since the passage of the Clinton
Administration's tax package. All of these factors have combined to generate
above-average performance.
Municipal securities with maturities of six to twelve months have frequently
offered a significant advantage, on an after-tax basis, over equivalent
taxable investments. Accordingly, we have maintained a relatively long
average maturity in the Trust's portfolio to generate higher yields.
This strategy left the Trust in a well-protected position when, in late
November and early December, the short-term tax-exempt market experienced a
dramatic influx of investment dollars that temporarily drove rates down to
abnormally low levels. We expect these artificially low rates to persist
through the end of January. At that point, we expect short-term tax-exempt
rates to firm somewhat, as the imbalance between supply and demand eases.
With an average maturity of 68 days, the Trust has been able to provide
attractive yields even during this interim period of artificially low rates,
and will be in an excellent position to capitalize on higher rates in the
first quarter of 1994.
To ensure stability of principal, the Trust's managers continue to emphasize
high quality short-term tax-exempt investments.
We will continue to monitor the interest rate environment on a day-to-day
basis, to seek the best possible position for the Trust. We look forward to
serving your investment needs in the future.
(Signature James C. Swain)
James C. Swain
Chairman--Centennial California
Tax Exempt Trust
(Signature Jon S. Fossel)
Jon S. Fossel
President--Centennial California
Tax Exempt Trust
January 21, 1994
<PAGE>
Statement of Investments December 31, 1993 (Unaudited)
Centennial California Tax Exempt Trust
<TABLE>
<CAPTION>
Face Market
Amount Value-Note 1
<S> <C> <C>
Municipal Bonds and Notes-99.5%
California-99.5%
Anaheim, California Electric Revenue Anticipation Nts.,
2.55%, 1/27/94 .................................................... $2,000,000 2,000,000
California Health Facilities Financing Authority Revenue Bonds:
Health Dimensions, Inc., Series A, 2.75%, 2/1/94 (2) ................ 2,000,000 2,000,000
Huntington Memorial Hospital, 2.75% (1) ............................. 800,000 800,000
Kaiser Permanente Medical, Series A, 2.70%, 2/15/94 (2) ............. 5,915,000 5,914,976
Scripps Memorial Hospital, Series A, MBIA Insured, 2.75% (1) ........ 500,000 500,000
California Pollution Control Financing Authority:
Revenue Bonds:
Chevron Chemical Co. Project, 2.85%, 11/15/94 (2) ................. 2,275,000 2,275,000
Chevron USA, Inc. Project, 2.85%, 11/15/94 (2) .................... 500,000 500,000
San Diego Gas & Electric, 2.90%, 9/1/94 (2) ....................... 4,000,000 4,000,000
Southern California Edison, Series C, 2.35%, 3/9/94 ............... 2,000,000 2,000,000
Revenue Refunding Bonds, Pacific Gas & Electric Co., Series C:
2.45%, 1/14/94 ................................................... 2,700,000 2,700,000
2.50%, 2/18/94 ................................................... 2,000,000 2,000,000
Solid Waste Disposal Revenue Bonds, Thermal Energy
Development Project, Series A, 2.25%, 2/10/94 ..................... 1,000,000 1,000,000
California State Customer Receipts General Obligation Bonds:
Series A-3, MBIA Insured, 3.50% (1) ................................. 800,000 800,000
MBIA Insured, 2.85%, 5/1/94 (2)...................................... 1,000,000 1,000,000
Costa Mesa, California Certificates of Participation,
Orange County Performing Arts Center, 3.024% (1) .................... 1,280,000 1,280,000
Fairfield, California Industrial Development Revenue Bonds,
Herman G. Rowland, 3.024% (1) ....................................... 1,150,000 1,150,000
First Nationwide Bank of Sacramento, California Multifamily
Housing Revenue Bonds, Grantor Trust, Series 1991-1,
Class K, 2.95% (1) .................................................. 1,000,000 1,000,000
Long Beach, California Memorial Health Services Revenue Bonds:
Series A, 2.70%, 5/15/94 (2) ........................................ 1,000,000 1,000,000
Series D, 2.70%, 3/1/94 (2) ......................................... 2,150,000 2,150,000
Los Angeles, California Multifamily Housing Revenue Refunding
Nts., Series C, 2.95%, 1/7/94 (2) ................................... 4,000,000 4,000,000
Los Angeles County, California Housing Authority Revenue Bonds,
Park Sierra Project, 3.15% (1) ...................................... 2,000,000 2,000,000
Los Angeles County, California Transportation Commission
Revenue Bonds, Second Subordinated Sales Tax, 2.50%,
4/7/94 .............................................................. 2,000,000 2,000,000
Northern California Power Agency Public Power Revenue Bonds,
11.50%, 7/1/94 (2) ................................................. 3,790,000 4,051,061
Ontario, California Multifamily Revenue Bonds, Mortgage
Residential Park Centre, Series A, 2.90% (1) ........................ 2,400,000 2,400,000
</TABLE>
<PAGE>
Statement of Investments (Unaudited) (Continued)
Centennial California Tax Exempt Trust
<TABLE>
<CAPTION>
Face Market
Amount Value-Note 1
<S> <C> <C>
Municipal Bonds and Notes (Continued)
California (Continued)
Orange County, California Local Transportation Authority
Sales Tax Revenue Bonds, 2.15%, 4/4/94 .............................. $ 2,000,000 $ 2,000,000
Palm Springs, California Community Redevelopment Agency
Certificates of Participation, Headquarters Hot, Series 7,
3.05% (1) ........................................................... 500,000 500,000
Sacramento, California Municipal Utility District Electric Revenue
Refunding Bonds:
2.35%, 3/8/94 ....................................................... 2,000,000 2,000,000
2.35%, 3/9/94 ....................................................... 2,150,000 2,150,000
San Diego, California Multifamily Housing Revenue Refunding
Bonds, Coral Park Apartments Project, Series A, 3.75% (1) ........... 2,500,000 2,500,000
San Francisco, California City and County Multifamily Housing
Authority Revenue Bonds, Winterland Project, Series 85-C,
3% (1) .............................................................. 1,200,000 1,200,000
San Francisco, California City and County Redevelopment
Agency Multifamily Revenue Refunding Bonds, Fillmore
Center Housing, Series A-1, 3% (1) .................................. 500,000 500,000
San Marcos, California Redevelopment Agency Multifamily
Housing Bonds, San Marcos Retirement Village Project,
3.55% (1) ........................................................... 2,500,000 2,500,000
Southern California Public Power Authority Subordinated
Revenue Refunding Bonds, Southern Transmission Project,
AMBAC Insured, 3.05% (1) ............................................ 700,000 700,000
Stockton, California Industrial Development Authority Revenue
Bonds, Citation Circuit Co., 3.08% (1) .............................. 375,000 375,000
Visalia, California Industrial Development Revenue Bonds,
Akers West Associates, 3.40% (1) .................................... 650,000 650,000
Total Investments, at Value (Cost $63,596,037) ........................ 99.5% 63,596,037
Other Assets Net of Liabilities ....................................... .5 312,807
Net Assets ............................................................ 100.0% 63,908,844
<FN>
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 December 31, 1993. 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.
</TABLE>
4
<PAGE>
Statement of Assets and Liabilities December 31, 1993 (Unaudited)
Centennial California Tax Exempt Trust
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $63,596,037) - see
accompanying statement. . . . . . . . . . . . . . . . . . . . . . . . . . . $63,596,037
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,577
Receivables:
Shares of beneficial interest sold. . . . . . . . . . . . . . . . . . . . . . 710,185
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528,262
Deferred organization costs . . . . . . . . . . . . . . . . . . . . . . . . . . 5,781
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,269
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64,893,111
LIABILITIES:
Payables and other liabilities:
Shares of beneficial interest redeemed. . . . . . . . . . . . . . . . . . . . 901,928
Distribution assistance - Note 3. . . . . . . . . . . . . . . . . . . . . . . 32,477
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,449
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 984,267
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $63,908,844
COMPOSITION OF NET ASSETS:
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $63,908,809
Accumulated net realized gain from investment
transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
NET ASSETS - Applicable to 63,908,809 shares of
beneficial interest outstanding . . . . . . . . . . . . . . . . . . . . . . $63,908,844
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE
PER SHARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.00
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Statement of Operations For the Six Months Ended December 31, 1993
(Unaudited)
Centennial California Tax Exempt Trust
<TABLE>
<S> <C>
INVESTMENT INCOME - Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 815,977
EXPENSES:
Management fees - Note 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157,329
Distribution assistance - Note 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,650
Custodian fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,400
Transfer and shareholder servicing agent fees
- Note 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,908
Shareholder reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,228
Legal and auditing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,190
Registration and filing fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,951
Trustees' fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 920
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,669
Total expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279,245
Less assumption of expenses by Centennial Asset
Management Corporation - Note 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . (27,499)
Net expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251,746
NET INVESTMENT INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564,231
NET REALIZED GAIN ON INVESTMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS. . . . . . . . . . . . . . . . . .$ 564,287
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Statements of Changes in Net Assets
Centennial California Tax Exempt Trust
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1993 June 30,
(Unaudited) 1993
<S> <C> <C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 564,231 $ 1,066,789
Net realized gain on investments. . . . . . . . . . . . . . . . 56 4,381
Net increase in net assets resulting
from operations. . . . . . . . . . . . . . . . . . . . . . . 564,287 1,071,170
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . (567,167) (1,066,789)
BENEFICIAL INTEREST TRANSACTIONS:
Net increase in net assets resulting
from beneficial interest
transactions - Note 2. . . . . . . . . . . . . . . . . . . . 5,832,791 9,591,873
NET ASSETS:
Total increase . . . . . . . . . . . . . . . . . . . . . . . . 5,829,911 9,596,254
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 58,078,933 48,482,679
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $63,908,844 $58,078,933
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Financial Highlights
Centennial California Tax Exempt Trust
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1993 Year Ended June 30,
(Unaudited) 1993 1992 1991 1990(1)
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period. . . . . . . . . . $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations -
net investment income and net realized gain
on investments. . . . . . . . . . . . . . . . . . . . .01 .02 .03 .04 .003
Dividends and distributions to shareholders . . . . . . (.01) (.02) (.03) (.04) (.003)
Net asset value, end of period. . . . . . . . . . . . . $1.00 $1.00 $1.00 $1.00 $1.00
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands). . . . . . . . $63,909 $58,079 $48,483 $32,337 $2,018
Average net assets (in thousands) . . . . . . . . . . . $62,746 $56,082 $40,684 $16,150 $1,914
Number of shares outstanding at end of period
(in thousands). . . . . . . . . . . . . . . . . . . . 63,909 58,076 48,484 32,337 2,018
Ratios to average net assets:
Net investment income . . . . . . . . . . . . . . . . 1.79%(2) 1.90% 3.13% 4.09% 6.29%(2)
Expenses, before voluntary assumption by the Manager. . .88%(2) .86% .91% 1.09% 2.53%(2)
Expenses, net of voluntary assumption by the Manager. .80%(2) .80% .80% .84% .90%(2)
<FN>
1. For the period from June 12, 1990 (commencement of operations) to June 30, 1990.
2. Annualized.
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Notes to Financial Statements (Unaudited)
Centennial California Tax Exempt Trust
1. Significant Accounting Policies
Centennial California Tax Exempt Trust (the Trust) is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The Trust's investment advisor is Centennial
Asset Management Corporation (the Manager), a subsidiary of Oppenheimer
Management Corporation (OMC). The following is a summary of significant
accounting policies consistently followed by the Trust.
Investment Valuation - Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
Federal Income Taxes - The Trust 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.
Organization Costs - The Manager advanced $18,743 for organization and start-up
costs of the Trust. Such expenses are being amortized over a five-year period
from the date operations commenced. In the event that all or part of the
Manager's initial investment in shares of the Trust is withdrawn during the
amortization period, the redemption proceeds will be reduced to reimburse the
Trust for any unamortized expenses, in the same ratio as the number of shares
redeemed bears to the number of initial shares outstanding at the time of
such redemption.
Distributions to Shareholders - The Trust intends to declare dividends from net
investment income each regular business day and pay such dividends monthly.
To effect its policy of maintaining a net asset value of $1.00 per share, the
Trust 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.
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
Centennial California Tax Exempt Trust
2. Shares of Beneficial Interest
The Trust 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 Year Ended
December 31, 1993 June 30, 1993
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Sold. . . . . . . . . 110,977,464 $110,977,464 193,288,887 $193,288,887
Dividends and
distributions
reinvested. . . . . . 586,885 586,885 1,045,494 1,045,494
Redeemed. . . . . . . (105,731,558) (105,731,558) (184,742,508) (184,742,508)
Net increase 5,832,791 $ 5,832,791 9,591,873 $ 9,591,873
</TABLE>
3. Management Fees and Other Transactions With Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Trust which provides for an annual fee of .50% on
the first $250 million of 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 Trust expenses (with specified exceptions) in
excess of the regulatory limitation of the State of California. In addition,
the Manager has voluntarily undertaken to assume Trust expenses in excess of
.80% of average annual net assets.
Shareholder Services, Inc. (SSI), a subsidiary of OMC, is the transfer and
shareholder servicing agent for the Trust, 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 Trust may expend up to .20% of
its net assets annually to reimburse Centennial Asset Management Corporation,
as distributor, for amounts paid to brokers, dealers, banks and other
institutions for costs incurred in distributing shares of the Trust.
<PAGE>
Centennial California Tax Exempt Trust
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
Lynn M. Coluccy, Assistant Treasurer
Robert G. Zack, Assistant Secretary
Investment Advisor and Distributor
Centennial Asset Management Corporation
Transfer and Shareholder Servicing Agent
Shareholder Services, Inc.
Custodian of Portfolio Securities
Citibank, N.A.
Independent Auditors
Deloitte & Touche
Legal Counsel
Myer, Swanson & Adams, P.C.
The financial statements included herein have been taken from the records of
the Trust without examination by the independent auditors.
This is a copy of a report to shareholders of Centennial California Tax
Exempt Trust. This report must be preceded or accompanied by a Prospectus of
Centennial California Tax Exempt Trust. For material information concerning
the Trust, see the Prospectus.
For shareholder servicing, call:
1-800-525-7048 (in U.S.)
303-671-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5270
Denver, CO 80217-5270
