<PAGE>
[COVER PAGE]
1997 ANNUAL REPORT
CENTENNIAL
CALIFORNIA TAX EXEMPT TRUST
- ------------------------------------------
June 30, 1997
RA0180.001.0697
<PAGE>
DEAR SHAREHOLDER:
The U.S. economy is in the midst of one of its best periods in decades, with
growth in 1997 reaching an annual rate of 4%, up from about 2% in 1995.
Unemployment has fallen to its lowest level since the early 1970s, and inflation
is dormant, despite the strengthening economy.
As a result, interest rates have remained under control. Although 30-year
Treasury rates have risen above 7% several times during the past 12 months,
yields on short-term securities, particularly tax-exempts, remain relatively
low. Still, yields on tax-exempt securities are adequate to offset the effects
of inflation, which is currently running at an annual rate of 2.4%.
For the year ended June 30, 1997, the Centennial California Tax Exempt Trust had
a compounded annual yield of 2.82%. Without compounding, the corresponding yield
was 2.79%. For investors in the 36% federal tax bracket, these yields are
equivalent to taxable yields of 4.41% with compounding, and 4.36% without
compounding, respectively. The seven-day annualized yields, with and without
compounding, for the year ended June 30, 1997 were 3.30% and 3.24%,
respectively.(1)
The portfolio continues to emphasize the highest quality investments.
California's economy continues to improve, and tax revenues have been buoyed by
the booming entertainment and high technology industries. However, certain
municipalities in California have experienced credit problems in recent years.
For example, despite strong tax revenues, credit concerns continue with respect
to securities issued by Los Angeles County. These securities may require credit
enhancement from further backing by private insurance or a major bank.
Over two-thirds of the portfolio's securities are typically enhanced by
municipal bond insurance or bank letters of credit. The high quality is
important so that the Centennial California Tax Exempt Trust can continue to
provide liquidity, as well as safety of principal. However, it's important to
remember that an investment in the Trust is neither insured nor guaranteed by
the U.S. government, and there is no assurance that the Trust will maintain a
stable $1.00 share price in the future.
One of the special challenges of managing a tax-exempt short-term fund is the
inconsistent supply of securities with the appropriate maturity. For instance,
during the latter half of 1996, the Trust received an above-average inflow of
funds, which we sought to put to work. At the same time, we believed that
interest rates were likely to trend down. As a result, we sought to purchase
securities with longer maturities. That's because in a period of falling
interest rates, longer-term paper paying a relatively high yield appreciates in
value. However, longer-term paper was not uniformly available during that
period.
But the concern diminished by December, as we began to view the interest-rate
environment differently. Indeed, by January, we began to sell some of our longer
dated paper because our view was that interest rates would rise during the first
quarter of 1997. Having a shorter-maturity portfolio is typically more
appropriate in April, as investors liquidate shares to pay income taxes on their
other investments.
<PAGE>
On March 25, 1997, the Federal Reserve Board raised short-term interest rates by
0.25%. As a result of the Fed action, and the April taxpaying season, the rates
for very short-term tax-free instruments surged, resulting in falling yields. By
keeping the portfolio's average maturity very short, we were able to take
advantage of the 1.5 percentage point yield increase that ensued in the
tax-exempt marketplace from mid-April to late May.
However, as the end of the fiscal year approached, we began to extend the
portfolio once again. Due to a somewhat decelerating economy, we are less
concerned about rising inflation and interest rates than we were a few months
ago. As opportunities present themselves, we will purchase longer-term paper in
order to lock in higher yields.
Thank you for your confidence in Centennial California Tax Exempt Trust. We look
forward to helping you reach your investment goals in the future.
Sincerely,
/S/James C. Swain
James C. Swain
Chairman
Centennial California Tax Exempt Trust
/S/Bridget A. Macaskill
Bridget A. Macaskill
President
Centennial California Tax Exempt Trust
July 22, 1997
1. Compounded yields assume reinvestment of dividends. A portion of the
Trust's distributions may be subject to federal and state income taxes. For
investors subject to the federal and/or state alternative minimum tax, a portion
of the Trust's distributions may increase this tax. Past performance does not
guarantee future results.
<PAGE>
<TABLE>
<CAPTION>
================================================================================
STATEMENT OF INVESTMENTS JUNE 30, 1997
Centennial California Tax Exempt Trust
FACE VALUE
AMOUNT SEE NOTE 1
================================================================================================================================
SHORT-TERM TAX-EXEMPT OBLIGATIONS - 97.9%
- --------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 97.9%
<S> <C> <C> <C>
Alhambra, CA RA MH RB, Main Street Plaza Apts.
Project, 4.45% (1) $6,400,000 $ 6,400,000
- --------------------------------------------------------------------------------------------------------------------------------
CA EDFAU IDV RB, Inland Empire Venture, LLC Project, 4.15% (1) 2,000,000 2,000,000
- --------------------------------------------------------------------------------------------------------------------------------
CA FAU RB, Pacific Gas & Electric, 3.75%, 7/9/97 5,500,000 5,500,000
- --------------------------------------------------------------------------------------------------------------------------------
CA GOB, 3.75%, 8/8/97 (2) 7,000,000 7,000,000
- --------------------------------------------------------------------------------------------------------------------------------
CA GOB, 3.90%, 7/9/97 (2) 3,500,000 3,500,000
- --------------------------------------------------------------------------------------------------------------------------------
CA GOB, Series A-3, MBIA Insured, 4.40% (1) 3,500,000 3,500,000
- --------------------------------------------------------------------------------------------------------------------------------
CA HFFAU RB, Catholic Healthcare Project, Series B, 4.05% (1) 1,100,000 1,100,000
- --------------------------------------------------------------------------------------------------------------------------------
CA HFFAU RB, Santa Barbara Cottage Project, Series C, 3.95% (1) 200,000 200,000
- --------------------------------------------------------------------------------------------------------------------------------
CA HFFAU RRB, Catholic West Project, Series C, MBIA Insured,
4.05% (1) 3,100,000 3,099,989
- --------------------------------------------------------------------------------------------------------------------------------
CA HFFAU RRB, Memorial Health Services Project, 3.95% (1) 700,000 700,000
- --------------------------------------------------------------------------------------------------------------------------------
CA M-S-R PPA RB, San Juan Project, Sub Lien, Series E, MBIA
Insured, 3.90% (1) 2,000,000 2,000,000
- --------------------------------------------------------------------------------------------------------------------------------
CA PCFAU RB, Chevron USA, Inc. Project, 4%, 5/15/98 (2) 2,500,000 2,500,000
- --------------------------------------------------------------------------------------------------------------------------------
CA PCFAU RB, Southern California Edison Co. Project, Series C,
3.80%, 7/9/97 1,050,000 1,050,000
- --------------------------------------------------------------------------------------------------------------------------------
CA PCFAU RRB, Pacific Gas & Electric, Series C, 3.85% (1) 800,000 800,000
- --------------------------------------------------------------------------------------------------------------------------------
CA PCFAU SWD RB, Western Waste Industries, Series A,
3.90% (1) 4,000,000 4,000,000
- --------------------------------------------------------------------------------------------------------------------------------
CA Statewide CDC IDV RB, Propak California Corp., Series B,
4.10% (1) 800,000 800,000
- --------------------------------------------------------------------------------------------------------------------------------
CA Statewide CDC RB, Fibrebond, Inc., 4.10% (1) 2,000,000 2,000,000
- --------------------------------------------------------------------------------------------------------------------------------
CA University Board of Regents RB, 3.75%, 9/29/97 6,000,000 6,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Covina City, CA RA MH RRB, Shadowhills Apts., Inc., Series A,
4.40% (1) 3,000,000 3,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Fairfield, CA IDAU RB, Herman G. Rowland, 4% (1) 1,150,000 1,150,000
- --------------------------------------------------------------------------------------------------------------------------------
Irvine Ranch, CA Water District RRB, Series B, 3.80% (1) 1,000,000 1,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Irvine, CA Public Facilities & Infrastructure Authority Lease RB:
Capital Improvement Projects, 4% (1) 3,000,000 2,999,915
Capital Improvement Projects, 4% (1) 1,860,000 1,860,000
- --------------------------------------------------------------------------------------------------------------------------------
Los Angeles Cnty., CA HAU MH RB, Park Sierra Project, 4.05% (1) 300,000 300,000
- --------------------------------------------------------------------------------------------------------------------------------
Los Angeles Cnty., CA MTAU Sales Tax RB, AMBAC Insured,
Series SG54, 3.637% (1) 1,000,000 1,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Los Angeles Cnty., CA Pension Obligation RRB, Series A,
3.90% (1) 2,000,000 2,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA Airport RB, Series SG61, 4.35% (1) 4,500,000 4,500,000
- --------------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA Wastewater System RB:
3.70%, 7/25/97 6,000,000 6,000,000
3.75%, 8/11/97 (2) 4,000,000 4,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Metropolitan Water District of Southern CA Waterworks RRB,
Series A, AMBAC Insured, 4% (1) 2,600,000 2,600,080
- --------------------------------------------------------------------------------------------------------------------------------
Modesto, CA Irrigation District FAU RB, Series SG66, 4.25% (1) 5,500,000 5,500,000
- --------------------------------------------------------------------------------------------------------------------------------
Oceanside, CA MH RRB, Lakeridge Apts. Project, 4.40% (1) 5,900,000 5,900,000
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================================
STATEMENT OF INVESTMENTS (CONTINUED)
Centennial California Tax Exempt Trust
FACE VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
<S> <C> <C> <C>
Ontario, CA Multifamily Residential Mtg. RB, Park Centre Project,
Series A, 3.75% (1) $2,000,000 $ 2,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Orange Cnty., CA Apt. Development RRB, The Lakes Project,
Series A, 4.05% (1) 3,000,000 3,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Palm Springs, CA Community RA COP, Headquarters Hotel,
Series 7, 3.90% (1) 300,000 300,000
- --------------------------------------------------------------------------------------------------------------------------------
Pittsburg, CA Mtg. Obligation Gtd. RB, Series A, 4.10% (1) 5,000,000 5,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Riverside Cnty., CA HAU MH RB, McKinley Project, 4% (1) 4,300,000 4,300,000
- --------------------------------------------------------------------------------------------------------------------------------
Sacramento, CA MUD RB, 3.75%, 7/9/97 5,500,000 5,500,000
- --------------------------------------------------------------------------------------------------------------------------------
San Diego, CA MH RRB, Coral Point Apts. Project, Series A,
4.35% (1) 2,500,000 2,500,000
- --------------------------------------------------------------------------------------------------------------------------------
San Francisco, CA City & Cnty. International Airport RB, Series
88, 4.25% (1) 1,700,000 1,700,000
- --------------------------------------------------------------------------------------------------------------------------------
San Francisco, CA City & Cnty. Redevelopment FAU RRB, Yerba
Buena Garden, 4.05% (1) 3,500,000 3,500,074
- --------------------------------------------------------------------------------------------------------------------------------
San Jose, CA MH RB, Siena at Renaissance, Series A, 4.10% (1) 2,000,000 2,000,000
- --------------------------------------------------------------------------------------------------------------------------------
San Marcos, CA RA MH Bonds, San Marcos Retirement Village
Project, 3.456% (1) 2,500,000 2,500,000
- --------------------------------------------------------------------------------------------------------------------------------
Southern CA PAU RRB, Palo Verde Project, Series B, AMBAC
Insured, 3.90% (1) 600,000 600,000
- --------------------------------------------------------------------------------------------------------------------------------
Visalia, CA IDV RB, Akers West Assn., 4.15% (1) 2,350,000 2,350,000
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 97.9% 129,210,058
- --------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.1 2,729,083
------ -------------
NET ASSETS 100.0% $131,939,141
====== =============
</TABLE>
To simplify the listing of securities abbreviations are used per the table
below:
CDC - Community Development Corp. MH - Multifamily Housing
COP - Certificates of Participation MTAU - Metropolitan Transportation
EDFAU - Economic Development Finance Authority
Authority MUD - Municipal Utility District
FAU - Finance Authority PAU - Power Authority
GOB - General Obligation Bonds PCFAU - Pollution Control Finance
Authority
HAU - Housing Authority PPA - Public Power Agency
HFFAU - Health Facilities Finance RA - Redevelopment Agency
Authority RB - Revenue Bonds
IDAU - Industrial Development Authority RRB - Revenue Refunding Bonds
IDV - Industrial Development SWD - Solid Waste Disposal
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,
1997. This instrument may also have a demand feature which 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
<PAGE>
<TABLE>
<CAPTION>
================================================================================
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1997
Centennial California Tax Exempt Trust
=============================================================================================================================
ASSETS
<S> <C>
Investments, at value - see accompanying statement $129,210,058
- -----------------------------------------------------------------------------------------------------------------------------
Cash 245,827
- -----------------------------------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 3,022,583
Interest 463,422
- -----------------------------------------------------------------------------------------------------------------------------
Other 5,736
-------------
Total assets 132,947,626
=============================================================================================================================
LIABILITIES
Payables and other liabilities:
Shares of beneficial interest redeemed 776,307
Dividends 127,629
Service plan fees 67,550
Shareholder reports 16,121
Transfer and shareholder servicing agent fees 3,829
Other 17,049
-------------
Total liabilities 1,008,485
=============================================================================================================================
NET ASSETS $131,939,141
=============
=============================================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $131,942,709
- -----------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (3,568)
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - applicable to 131,942,709 shares of beneficial interest outstanding $131,939,141
=============
=============================================================================================================================
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $1.00
</TABLE>
See accompanying Notes to Financial Statements.
6
<PAGE>
<TABLE>
<CAPTION>
================================================================================
STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 1997
Centennial California Tax Exempt Trust
=============================================================================================================================
<S> <C>
INVESTMENT INCOME - Interest $4,618,950
=============================================================================================================================
EXPENSES
Management fees - Note 3 644,397
- -----------------------------------------------------------------------------------------------------------------------------
Service plan fees - Note 3 261,035
- -----------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 3 75,459
- -----------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 32,452
- -----------------------------------------------------------------------------------------------------------------------------
Shareholder reports 14,565
- -----------------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 12,650
- -----------------------------------------------------------------------------------------------------------------------------
Registration and filing fees 12,089
- -----------------------------------------------------------------------------------------------------------------------------
Insurance expenses 3,653
- -----------------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 3,264
- -----------------------------------------------------------------------------------------------------------------------------
Other 2,501
-----------
Total expenses 1,062,065
-----------
Less assumption of expenses by Centennial Asset Management
Corporation - Note 3 (7,679)
Less expenses paid indirectly - Note 3 (22,156)
-----------
Net expenses 1,032,230
=============================================================================================================================
NET INVESTMENT INCOME 3,586,720
=============================================================================================================================
NET REALIZED LOSS ON INVESTMENTS (3,568)
=============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,583,152
===========
</TABLE>
<TABLE>
<CAPTION>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED JUNE 30,
1997 1996
=============================================================================================================================
OPERATIONS
<S> <C> <C>
Net investment income $ 3,586,720 $ 3,314,158
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (3,568) 13,191
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 3,583,152 3,327,349
=============================================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (3,588,347) (3,314,158)
=============================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions - Note 2 13,106,174 26,507,136
=============================================================================================================================
NET ASSETS
Total increase 13,100,979 26,520,327
- -----------------------------------------------------------------------------------------------------------------------------
Beginning of period 118,838,162 92,317,835
----------------------------------
End of period $131,939,141 $118,838,162
==================================
</TABLE>
See accompanying Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
================================================================================
FINANCIAL HIGHLIGHTS
Centennial California Tax Exempt Trust
Year Ended June 30,
---------------------------------------------------------------------
1997 1996 1995 1994 1993
============================================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C>
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 .03 .03 .03 .02 .02
Dividends and distributions to shareholders (.03) (.03) (.03) (.02) (.02)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
===================================================================
============================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(1) 2.81% 2.97% 3.00% 1.82% 2.00%
============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $131,939 $118,838 $92,318 $60,376 $58,079
- ----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $129,087 $112,911 $71,278 $65,520 $56,082
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.78% 2.94% 2.99% 1.79% 1.90%
Expenses, before voluntary assumption
by the Manager(2) 0.82% 0.80% 0.83% 0.87% 0.86%
Expenses, net of voluntary assumption
by the Manager 0.80% 0.79% 0.80% 0.80% 0.80%
</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 reflect
changes in net investment income only.
2. Beginning in fiscal 1995, the expense ratio reflects the effect of expenses
paid indirectly by the Trust. Prior year expense ratios have not been adjusted.
See accompanying Notes to Financial Statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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 objective is to seek the
maximum current interest income exempt from Federal and California personal
income taxes for individual investors as is consistent with preservation of
capital. The Trust's investment adviser is Centennial Asset Management
Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). 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 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 or excise tax provision is required.
DISTRIBUTIONS TO SHAREHOLDERS. The Trust 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 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. The Trust concentrates its investments in California and,
therefore, may have more credit risks related to the economic conditions of
California than a portfolio with a broader geographical diversification.
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 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>
YEAR ENDED JUNE 30, 1997 YEAR ENDED JUNE 30, 1996
------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Sold 400,712,797 $ 400,712,797 397,706,144 $ 397,706,144
Dividends and distributions reinvested 3,470,265 3,470,265 3,281,812 3,281,812
Redeemed (391,076,888) (391,076,888) (374,480,820) (374,480,820)
------------- -------------- ------------- --------------
Net increase 13,106,174 $ 13,106,174 26,507,136 $ 26,507,136
============= ============== ============= ==============
</TABLE>
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
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 a fee of 0.50% of the first
$250 million of net assets; 0.475% of the next $250 million of net assets; 0.45%
of the next $250 million of net assets; 0.425% of the next $250 million of net
assets and 0.40% of net assets in excess of $1 billion. The Manager has
voluntarily undertaken to assume Trust expenses in excess of 0.80% of average
annual net assets.
Shareholder Services, Inc. (SSI), a subsidiary of OFI, 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.
Expenses paid indirectly represent a reduction of custodian fees for earnings on
cash balances maintained by the Trust.
Under an approved plan of distribution, the Trust may expend up to 0.20% of its
net assets annually to reimburse the Manager, as distributor, for costs incurred
in connection with the personal service and maintenance of accounts that hold
shares of the Trust, including amounts paid to brokers, dealers, banks and other
institutions.
10
<PAGE>
INDEPENDENT AUDITORS' REPORT
Centennial California Tax Exempt Trust
The Board of Trustees and Shareholders of
Centennial California Tax Exempt Trust:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Centennial California Tax Exempt Trust as of
June 30, 1997, the related statement of operations for the year then ended, the
statements of changes in net assets for the years ended June 30, 1997 and 1996,
and the financial highlights for the period July 1, 1992 to June 30, 1997. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
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 June 30,
1997 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
California Tax Exempt Trust at June 30, 1997, 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
July 22, 1997
11
<PAGE>
FEDERAL INCOME TAX INFORMATION (Unaudited)
Centennial California Tax Exempt Trust
In early 1998, shareholders will receive information regarding all dividends and
distributions paid to them by the Trust during calendar year 1997. Regulations
of the U.S. Treasury Department require the Trust to report this information to
the Internal Revenue Service.
None of the dividends paid by the Trust during the fiscal year ended June 30,
1997 are eligible for the corporate dividend-received deduction. The dividends
were derived from interest on municipal bonds and are not subject to federal
income tax. To the extent a shareholder is subject to any state or local tax
laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Trust 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 adviser for specific guidance.
12
<PAGE>
CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
OFFICERS AND TRUSTEES
James C. Swain, Chairman and Chief Executive Officer
Bridget A. Macaskill, Trustee and President
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
George C. Bowen, Vice President, Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Michael A. Carbuto, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
INVESTMENT ADVISER 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 LLP
LEGAL COUNSEL
Myer, Swanson, Adams & Wolf, P.C.
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:
1-800-525-9310 (in U.S.)
303-768-3200 (outside U.S.)
Or write:
Shareholder Services, Inc.
P.O. Box 5143
Denver, CO 80217-5143
13
