<PAGE>
[Cover Page]
1998 ANNUAL REPORT
CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
June 30, 1998
<PAGE>
[Blank Page]
<PAGE>
JAMES C. SWAIN
Chairman
Centennial California
Tax Exempt Trust
BRIDGET A. MACASKILL
President
Centennial California
Tax Exempt Trust
DEAR SHAREHOLDER,
In a year of excitement and volatility for stock markets here and abroad,
tax-exempt money market funds, such as Centennial California Tax Exempt Trust,
generally continued to provide relatively stable returns. True, the supply of
and demand for tax-exempt securities are variable, causing fluctuations in yield
on a month-to-month basis. Nevertheless, the overall pattern of tax-exempt
yields generally tends to track the actions of the Federal Reserve Board, which
raises and lowers short-term interest rates based on its view of inflation.
Because the Fed stayed on the sidelines for the entire fiscal year, tax-exempt
yields remained relatively unchanged.
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 is now trending below 2%.
For the fiscal year ended June 30, 1998, the Centennial California Tax Exempt
Trust produced a compounded annual yield of 2.86%. Without compounding, the
corresponding yield was 2.82%. For investors in the combined 42% Federal and
California state income tax bracket, this is equivalent to a taxable yield of
4.93% with compounding, and 4.86% without. On June 30, 1998, the seven-day
annualized yields, with and without compounding, were 2.79% and 2.76%,
respectively.(1) It is 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.
Generally speaking, securities that mature in several months pay higher yields
than those maturing within days or weeks. The reason is that the issuer needs to
compensate the investor for the risk that future inflation could trigger higher
interest rates, which would create more-attractive investment opportunities.
However, because of today's very low inflationary environment, tax-exempt money
market securities with longer maturities have not offered much extra yield.
The California economy has improved dramatically in the last year or two,
bolstered by the booming entertainment, manufacturing and high technology
industries. Because investors and issuers assume there is very little
additional risk in lower-quality credits, yields on these lower-quality
credits are just marginally higher. We don't believe sacrificing credit
quality for this slight benefit is worthwhile, particularly in light of the
potential risks posed by the Asian economic crisis on California, which is a
major trading partner.
During the rest of 1998 and beyond, we plan to continue monitoring global events
so that we can position the portfolio accordingly. If the Asian crisis
diminishes and the U.S. economy continues growing, then we would expect the
Federal Reserve Board to raise short-term interest rates to keep inflation in
check. In that event, we would keep the portfolio's maturity fairly short to
allow us to reinvest at higher yeilds. however, if the U.S. economy should
begin to slow and the Fed appears likely to lower short-term interest rates,
then we would lengthen the portfolio's
3 Centennial Californina Tax Exempt Trust
<PAGE>
maturity to lock in higher yeilds. In either case, we will continue to
invest conservatively, always keeping in mind your objectives of safety and
liquidity.
Thank you for your confidence in Centennial California Tax Exempt Trust.
We look forward to helping you reach your investment goals, part of our
commitment to you as The Right Way to Invest.
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.
4 Centennial California Tax Exempt Trust
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================================
STATEMENT OF INVESTMENTS June 30, 1998
Centennial California Tax Exempt Trust
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C> <C>
=============================================================================================================================
SHORT-TERM TAX-EXEMPT OBLIGATIONS - 97.3%
- -----------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 97.3%
- -----------------------------------------------------------------------------------------------------------------------------
Agoura Hills, CA MH RRB, Oakridge Apts. Project, 3.55% 1 $2,900,000 $2,900,000
- -----------------------------------------------------------------------------------------------------------------------------
CA CDAU Apartment Development RRB, Whispering Winds Apts., Series D, 3.55% 1 5,750,000 5,750,000
- -----------------------------------------------------------------------------------------------------------------------------
CA EDFAU IDV RB, Inland Empire Venture, LLC Project, 3.55% 1 1,875,000 1,875,000
- -----------------------------------------------------------------------------------------------------------------------------
CA EDFAU RB, California Independent System Project:
Series B, 3.40% 1 2,000,000 2,000,000
Series D, 3.50% 1 1,600,000 1,600,000
- -----------------------------------------------------------------------------------------------------------------------------
CA GOB Tendered Option Certificates, Series 1998A, MBIA Insured, 4% 1 3,470,000 3,470,000
- -----------------------------------------------------------------------------------------------------------------------------
CA HFFAU RRB, Catholic West Project, Series C, MBIA Insured, 3% 1 5,000,000 4,999,751
- -----------------------------------------------------------------------------------------------------------------------------
CA M-S-R PPA RB, San Juan Project, Sub. Lien, Series E, MBIA Insured, 3.10% 1 2,000,000 1,999,920
- -----------------------------------------------------------------------------------------------------------------------------
CA PCFAU RB:
Chevron USA, Inc. Project, 3.65%, 5/15/99 2,500,000 2,500,000
Pacific Gas, 3.35%, 8/6/98 2 1,000,000 1,000,000
Southern California Edison Co. Project, Series C, 3.60%, 8/12/98 2 1,050,000 1,050,000
Southern California Edison Co. Project, Series D, 3.60%, 8/12/98 2 4,100,000 4,100,000
- -----------------------------------------------------------------------------------------------------------------------------
CA PCFAU RRB, Pacific Gas & Electric:
Series A, 3.50% 1 2,700,000 2,700,000
Series C, 3.35% 1 3,400,000 3,400,000
- -----------------------------------------------------------------------------------------------------------------------------
CA PCFAU SWD RB:
Shell Oil Co. Martinez Project, Series A, 3.35% 1 1,700,000 1,700,000
Western Waste Industries, Series A, 3.70% 1 1,500,000 1,500,000
- -----------------------------------------------------------------------------------------------------------------------------
CA PCFAU SWD RR RB, Shell Martinez Refining, Series A, 3.40% 1 5,300,000 5,300,000
- -----------------------------------------------------------------------------------------------------------------------------
CA School Cash Reserve Program Authority Nts., Series A, AMBAC Insured,
4.75%, 7/2/98 7,965,000 7,965,229
- -----------------------------------------------------------------------------------------------------------------------------
CA Statewide CDC IDV RB, Propak California Corp., Series B, 3.40% 1 700,000 700,000
- -----------------------------------------------------------------------------------------------------------------------------
CA University Board of Regents RB, 3.20%, 8/10/98 6,000,000 6,000,000
- -----------------------------------------------------------------------------------------------------------------------------
Covina City, CA RA MH RRB, Shadowhills Apts., Inc., Series A, 3.70% 1 3,000,000 3,000,000
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles Cnty., CA MTAU Sales Tax RB, Series SG54, AMBAC Insured, 3.60% 1 1,000,000 1,000,000
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles Cnty., CA Pension Obligation RRB, Series A, 3.10% 1 7,300,000 7,300,000
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA Airport RB, Series SG61, 3.63% 1 6,000,000 6,000,000
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA Department of Water RB, Power Project, 3.40%, 7/13/98 3,000,000 3,000,000
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA Wastewater System RB, 3.50%, 8/7/98 2,100,000 2,100,000
- -----------------------------------------------------------------------------------------------------------------------------
Modesto, CA Irrigation District FAU RB, Series SG66, 3.58% 1 5,500,000 5,500,000
- -----------------------------------------------------------------------------------------------------------------------------
Oceanside, CA MH RRB, Lakeridge Apts. Project, 3.80% 1 7,000,000 7,000,160
- -----------------------------------------------------------------------------------------------------------------------------
Orange Cnty., CA Sanitation District COP, FGIC Insured, 3.50% 1 1,000,000 1,000,000
- -----------------------------------------------------------------------------------------------------------------------------
Pittsburg, CA Mortgage Obligation RRB, Series A, 3.61% 1 7,000,000 7,000,035
- -----------------------------------------------------------------------------------------------------------------------------
Riverside Cnty., CA HAU MH RB, McKinley Project, 3.30% 1 6,300,000 6,300,082
- -----------------------------------------------------------------------------------------------------------------------------
Sacramento Cnty., CA MH RRB, Issue A, 3.30% 1 3,400,000 3,400,071
- -----------------------------------------------------------------------------------------------------------------------------
Sacramento Cnty., CA Tax & RAN, 4.50%, 9/30/98 3,700,000 3,708,488
- -----------------------------------------------------------------------------------------------------------------------------
Sacramento, CA MUD RB, 3.35%, 8/5/98 7,000,000 7,000,000
- -----------------------------------------------------------------------------------------------------------------------------
San Bernardino Cnty., CA COP, West Valley Detention Center Project,
7.70%, 11/1/98 2 8,975,000 9,195,142
5
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Continued)
Centennial California Tax Exempt Trust
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------
San Diego Cnty., CA Tax & RAN, 4.50%, 9/30/98 $4,920,000 $ 4,930,262
- -----------------------------------------------------------------------------------------------------------------------------
San Diego, CA MH RRB, Coral Point Apts. Project, Series A, 3.80% 1 2,500,000 2,500,000
- -----------------------------------------------------------------------------------------------------------------------------
San Francisco, CA City & Cnty.:
International Airport RB, Series 88, 3.58% 1 1,700,000 1,700,000
Redevelopment FAU RRB, Yerba Buena Garden, 3.20% 1 2,150,000 2,150,040
- -----------------------------------------------------------------------------------------------------------------------------
San Marcos, CA RA MH Bonds, San Marcos Retirement Village Project, 4.33% 1 2,400,000 2,400,000
- -----------------------------------------------------------------------------------------------------------------------------
Southern CA Metropolitan Water District Waterworks RRB, Series A,
AMBAC Insured, 3% 1 600,000 599,998
- -----------------------------------------------------------------------------------------------------------------------------
Visalia, CA IDV RB, Akers West Assn., 3.25% 1 2,350,000 2,350,000
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 97.3% 151,644,178
- -----------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.7 4,187,755
------------ ---------------
NET ASSETS 100.0% $155,831,933
============ ===============
To simplify the listings of securities, abbreviations are used per the table
below:
CDAU - Communities Development Authority MTAU - Metropolitan Transportation Authority
CDC - Community Development Corp. MUD - Municipal Utility District
COP - Certificates of Participation PCFAU - Pollution Control Finance Authority
EDFAU - Economic Development Finance Authority PPA - Public Power Agency
FAU - Finance Authority RA - Redevelopment Agency
GOB - General Obligation Bonds RAN - Revenue Anticipation Nts.
HAU - Housing Authority RB - Revenue Bonds
HFFAU - Health Facilities Finance Authority RR - Resource Recovery
IDV - Industrial Development RRB - Revenue Refunding Bonds
MH - Multifamily Housing SWD - Solid Waste Disposal
</TABLE>
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,
1998. This instrument may also have a demand feature which allows, on up to 30
days' notice, the recovery of principal at any time, or at specified intervals
not exceeding one year.
2. Put obligation redeemable at full face value on the date reported.
See accompanying Notes to Financial Statements.
6
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================================
STATEMENT OF ASSETS AND LIABILITIES June 30, 1998
Centennial California Tax Exempt Trust
<S> <C>
=============================================================================================================================
ASSETS
Investments, at value $151,644,178
- -----------------------------------------------------------------------------------------------------------------------------
Cash 700,816
- -----------------------------------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 3,543,970
Interest 1,129,573
- -----------------------------------------------------------------------------------------------------------------------------
Other 4,695
---------------------
Total assets 157,023,232
=============================================================================================================================
LIABILITIES
Payables and other liabilities:
Shares of beneficial interest redeemed 902,838
Dividends 130,833
Service plan fees 87,362
Transfer and shareholder servicing agent fees 17,214
Other 53,052
---------------------
Total liabilities 1,191,299
=============================================================================================================================
NET ASSETS $155,831,933
=====================
=============================================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $155,854,808
- -----------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (22,875)
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - applicable to 155,854,808 shares of beneficial
interest outstanding $155,831,933
=====================
=============================================================================================================================
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $1.00
</TABLE>
See accompanying Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================================
STATEMENT OF OPERATIONS For the Year Ended June 30, 1998
Centennial California Tax Exempt Trust
<S> <C>
=============================================================================================================================
INVESTMENT INCOME-Interest $5,773,872
=============================================================================================================================
EXPENSES
Management fees - Note 3 801,264
- -----------------------------------------------------------------------------------------------------------------------------
Service plan fees - Note 3 320,662
- -----------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 3 68,783
- -----------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 39,178
- -----------------------------------------------------------------------------------------------------------------------------
Shareholder reports 24,979
- -----------------------------------------------------------------------------------------------------------------------------
Registration and filing fees 14,378
- -----------------------------------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 11,100
- -----------------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 2,193
- -----------------------------------------------------------------------------------------------------------------------------
Other 3,328
---------------------
Total expenses 1,285,865
Less assumption of expenses by Centennial Asset Management
Corporation - Note 3 (2,862)
Less expenses paid indirectly - Note 3 (21,684)
---------------------
Net expenses 1,261,319
=============================================================================================================================
NET INVESTMENT INCOME 4,512,553
=============================================================================================================================
NET REALIZED LOSS ON INVESTMENTS (19,307)
=============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $4,493,246
=====================
</TABLE>
<TABLE>
<CAPTION>
=============================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended June 30,
1998 1997
<S> <C> <C>
=============================================================================================================================
OPERATIONS
Net investment income $4,512,553 $3,586,720
- -----------------------------------------------------------------------------------------------------------------------------
Net realized loss (19,307) (3,568)
------------------------------------------
Net increase in net assets resulting from operations 4,493,246 3,583,152
=============================================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (4,512,553) (3,588,347)
=============================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions - Note 2 23,912,099 13,106,174
=============================================================================================================================
NET ASSETS
Total increase 23,892,792 13,100,979
- -----------------------------------------------------------------------------------------------------------------------------
Beginning of period 131,939,141 118,838,162
------------------------------------------
End of period $155,831,933 $131,939,141
==========================================
</TABLE>
See accompanying Notes to Financial Statements.
8
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Centennial California Tax Exempt Trust
Year Ended June 30,
-------------------------------------------------------------------------
1998 1997 1996 1995 1994
<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 .03 .03 .03 .03 .02
Dividends and distributions to shareholders (.03) (.03) (.03) (.03) (.02)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
=========================================================================
==========================================================================================================================
TOTAL RETURN(1) 2.86% 2.81% 2.97% 3.00% 1.82%
==========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $155,832 $131,939 $118,838 $92,318 $60,376
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $160,317 $129,087 $112,911 $71,278 $65,520
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.81% 2.78% 2.94% 2.99% 1.79%
Expenses, before voluntary assumption
by the Manager(2) 0.80% 0.82% 0.80% 0.83% 0.87%
Expenses, net of voluntary assumption
by the Manager 0.79% 0.80% 0.79% 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 gross
expenses paid indirectly by the Trust. Prior year expense ratios have not been
adjusted.
See accompanying Notes to Financial Statements.
9
<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 advisor 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, 1998 Year Ended June 30, 1997
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Sold 587,035,412 $ 587,035,412 400,712,797 $ 400,712,797
Dividends and distributions reinvested 4,414,987 4,414,987 3,470,265 3,470,265
Redeemed (567,538,300) (567,538,300) (391,076,888) (391,076,888)
-------------- --------------- ---------------- ---------------
Net increase 23,912,099 $ 23,912,099 13,106,174 $ 13,106,174
============== ============== =============== =============
</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 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, 1998, the related statement of operations for the year then ended, the
statements of changes in net assets for the years ended June 30, 1998 and 1997,
and the financial highlights for the period July 1, 1993 to June 30, 1998. 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,
1998 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, 1998, 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, 1998
11
<PAGE>
FEDERAL INCOME TAX INFORMATION (Unaudited)
Centennial California Tax Exempt Trust
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Trust during calendar year 1998. 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,
1998 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 advisor for specific guidance.
12
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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, Trustee, Vice President, Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President and Secretary
Michael J. Carbuto, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, 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 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
RA0180.001.0698
