UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05871
Centennial California Tax Exempt Trust
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: June 30
Date of reporting period: July 1, 2002 - June 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS June 30, 2003
Principal Value
Amount See Note 1
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Short-Term Tax-Exempt Obligations--103.3%
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California--103.3%
CA Department of Water & Power Supply RB, Series B-1, 1% 1 $ 3,500,000 $ 3,500,000
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CA Department of Water & Power Supply RRB, Central Valley Project,
MERLOT Series 2003 B32, FGIC Insured, 1.03% 1 2,000,000 2,000,000
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CA EDLFA Revenue Nts., Stanford University, 0.80%, 9/8/03 4,000,000 4,000,000
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CA HFFAU RB, MSTFC Series 1998 26, FSA Insured, 0.98% 1 6,000,000 6,000,000
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CA Infrastructure & ED Bank RRB, J. Paul Getty Trust, Series A, 1%, 5/15/04 2 6,000,000 6,000,000
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CA Infrastructure & ED Bank RRB, J. Paul Getty Trust, Series D, 1%, 5/13/04 2 4,000,000 4,000,000
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CA Infrastructure & ED Bank RRB, Salvation Army Western Territory,
Series 2001, 1.08%, 1/28/04 7,500,000 7,500,000
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CA M-S-R PPA RRB, San Juan Project, Sub. Lien, Series E,
MBIA Insured, 0.90% 1 900,000 900,000
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CA PCFAU SWD RB, Burrtec Waste Industries, Series A, 1.10% 1 2,500,000 2,500,000
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CA PCFAU SWD RR RB, Greenteam of San Jose Project-A, 1.05% 1 4,235,000 4,235,000
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CA PCFAU SWD RR RB, Shell Martinez Refining-A, 0.95% 1 4,200,000 4,200,000
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CA SCDAU MH RB, Greentree Sr. Apts. Project-P, 1% 1 7,350,000 7,350,000
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CA SCDAU RB, IDV-Fibrebond, Inc., 1.35% 1 655,000 655,000
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CA SCDAU RB, IDV-Propak California Corp.-B, 1.35% 1 340,000 340,000
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Lodi, CA EU REF COP, Series A, MBIA Insured, 0.85% 1 5,000,000 5,000,000
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Los Angeles Cnty., CA MH Mtg. RB, Valencia Housing Project,
Series C, 1% 1 2,500,000 2,500,000
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Los Angeles, CA Convention & Exhibit Center Authority Lease RRB,
Subseries B-2, AMBAC Insured, 0.97%, 6/16/04 2 5,000,000 5,000,000
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Los Angeles, CA USD GOB, AAMC Series 1999-7, MBIA Insured, 0.98% 1,3 6,000,000 6,000,000
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Los Angeles, CA Wastewater System GOB, AAMC Series 1998-25,
FGIC Insured, 0.98% 1 2,000,000 2,000,000
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Mount San Antonio, CA Community College District GOUN, Series A,
FGIC Insured, 3.25%, 5/1/04 1,000,000 1,019,385
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Northern CA Power Agency RRB, Hydroelectric Project 1-A,
MBIA Insured, 0.95% 1 3,500,000 3,500,000
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Oceanside, CA MH RRB, Lakeridge Apts. Project, 0.95% 1 3,300,000 3,300,000
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Orange Cnty., CA Apt. Development RB, Niquel Summit 2, Series B, 1% 1 3,461,000 3,461,000
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Orange Cnty., CA LTA RB, 1.05%, 8/14/03 11,000,000 11,000,000
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Orange Cnty., CA LTA RB, 1.05%, 8/14/03 200,000 200,000
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Orange Cnty., CA Special FAU Teeter Plan RB, Series B,
AMBAC Insured, 0.95% 1 1,250,000 1,250,000
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Orange Cnty., CA Special FAU Teeter Plan RB, Series D,
AMBAC Insured, 0.95% 1 2,400,000 2,400,000
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Rancho Mirage, CA Joint Powers FA REF COP, Eisenhower Medical
Center, Series B, MBIA Insured, 0.97% 1 1,700,000 1,700,000
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Sacramento Cnty., CA HAU MH RB, Shadowood Apts
Project-Issue A, 1.08% 1 6,000,000 6,000,000
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San Bernardino Cnty., CA MH HAU RRB, Montclair Heritage-A, 1.04% 1 4,620,000 4,620,000
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San Bernardino Cnty., CA MH RRB, Somerset Apts.-A, 0.90% 1 2,495,000 2,495,000
4 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
Principal Value
Amount See Note 1
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California Continued
San Diego, CA TAN, MERLOT Series 2003 B20, 1.75%, 6/30/04 4 $ 7,000,000 $ 7,064,330
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San Diego, CA Unified Port/Airport District RB, Lindberg Field,
1.05%, 11/3/03 9,400,000 9,400,000
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San Diego, CA Water Utility Fund Net System GOB, AAMC Series
1998-10, FGIC Insured, 1.05% 1,3 7,000,000 7,000,000
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San Francisco, CA City & Cnty. PUC Clean Water RRB, MERLOT Series B20,
MBIA Insured, 1.03% 1 7,500,000 7,500,000
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Southeast CA RR FA Lease RRB, Series A, 0.92% 1 2,000,000 2,000,000
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Stockton, CA CFD No. 99-02 SPTX Bonds, Arch Road East, 1% 1 2,835,000 2,835,000
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University of CA Regents RB, 0.90%, 8/13/03 7,500,000 7,500,000
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Total Investments, at Value (Cost $157,924,715) 103.3% 157,924,715
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Liabilities in Excess of Other Assets (3.3) (5,068,834)
----------------------------
Net Assets 100.0% $152,855,881
============================
Footnotes to Statement of Investments
To simplify the listings of securities, abbreviations are used per the table
below:
AAMC ABN AMRO Munitops Certificates
CFD Community Development District
COP Certificates of Participation
ED Economic Development
EDLFA Educational Facilities Authority
EU Electric Utilities
FA Facilities Authority
FAU Finance Authority
GOB General Obligation Bonds
GOUN General Obligation Unlimited Nts.
HAU Housing Authority
HFFAU Health Facilities Finance Authority
IDV Industrial Development
LTA Local Transportation Authority/Agency
MERLOT Municipal Exempt Receipts Liquidity Option Tender
MH Multifamily Housing
MSTFC Morgan Stanley & Co., Inc. Trust Floater Certificates
PCFAU Pollution Control Finance Authority
PPA Public Power Agency
PUC Public Utilities Commission
RB Revenue Bonds
REF Refunding
RR Resource Recovery
RRB Revenue Refunding Bonds
SCDAU Statewide Communities Development Authority
SPTX Special Tax
SWD Solid Waste Disposal
TAN Tax Anticipation Nts.
USD Unified School District
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,
2003. This instrument has 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 principal value on the date reported.
3. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $13,000,000 or 8.50% of the Trust's net
assets as of June 30, 2003.
4. When-issued security to be delivered and settled after June 30, 2003. See
Note 1 of Notes to Financial Statements.
See accompanying Notes to Financial Statements.
5 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
STATEMENT OF ASSETS AND LIABILITIES June 30, 2003
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Assets
Investments, at value (cost $157,924,715)--see accompanying statement $157,924,715
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Cash 563,054
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Receivables and other assets:
Shares of beneficial interest sold 2,971,417
Interest 271,196
Other 8,794
--------------
Total assets 161,739,176
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Liabilities
Payables and other liabilities:
Investments purchased on a when-issued basis 7,064,330
Shares of beneficial interest redeemed 1,701,552
Service plan fees 76,949
Shareholder reports 11,602
Dividends 10,931
Transfer and shareholder servicing agent fees 4,025
Trustees' compensation 642
Other 13,264
--------------
Total liabilities 8,883,295
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Net Assets $152,855,881
==============
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Composition of Net Assets
Paid-in capital $152,855,881
--------------
Net Assets--applicable to 152,837,158 shares of beneficial interest outstanding $152,855,881
==============
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Net Asset Value, Redemption Price Per Share and Offering Price Per Share $1.00
See accompanying Notes to Financial Statements.
6 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
STATEMENT OF OPERATIONS For the Year Ended June 30, 2003
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Investment Income
Interest $1,991,365
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Expenses
Management fees 781,783
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Service plan fees 312,648
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Transfer and shareholder servicing agent fees 49,046
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Shareholder reports 13,987
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Custodian fees and expenses 6,148
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Trustees' compensation 5,918
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Other 26,521
------------
Total expenses 1,196,051
Less reduction to custodian expenses (6,502)
Less voluntary reimbursement of expenses (3,905)
------------
Net expenses 1,185,644
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Net Investment Income 805,721
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Net Realized Gain on Investments 2,327
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Net Increase in Net Assets Resulting from Operations $ 808,048
============
See accompanying Notes to Financial Statements.
7 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended June 30, 2003 2002
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Operations
Net investment income $ 805,721 $ 1,464,326
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Net realized gain 2,327 20,304
------------------------------
Net increase in net assets resulting from operations 808,048 1,484,630
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Dividends and/or Distributions to Shareholders
Dividends from net investment income (805,721) (1,447,930)
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Distributions from net realized gain -- (16,396)
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Beneficial Interest Transactions
Net decrease in net assets resulting from beneficial interest transactions (1,799,511) (2,683,600)
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Net Assets
Total decrease (1,797,184) (2,663,296)
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Beginning of period 154,653,065 157,316,361
------------------------------
End of period $152,855,881 $154,653,065
==============================
See accompanying Notes to Financial Statements.
8 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
FINANCIAL HIGHLIGHTS
Year Ended June 30 2003 2002 2001 2000 1999
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Per Share Operating Data
Net asset value, beginning of period $ 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 .01 .01 .03 .03 .02
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Dividends and/or distributions to shareholders:
Dividends from net investment income (.01) (.01) (.03) (.03) (.02)
Distributions from net realized gain -- -- 1 -- -- --
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Total dividends and/or distributions
to shareholders (.01) (.01) (.03) (.03) (.02)
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Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=================================================================
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Total Return 2 0.52% 0.89% 2.74% 2.63% 2.41%
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Ratios/Supplemental Data
Net assets, end of period (in thousands) $152,856 $154,653 $157,316 $162,261 $155,839
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Average net assets (in thousands) $156,348 $164,278 $166,654 $160,351 $168,272
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Ratios to average net assets: 3
Net investment income 0.52% 0.89% 2.72% 2.57% 2.38%
Expenses, gross 0.76% 0.77% 0.84% 0.83% 0.80%
Expenses, net 0.76% 4,5 0.77% 4,5 0.81% 6 0.81% 0.78% 4,6
1. Less than $0.005 per share.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions 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. Total returns are not annualized for periods less than
one full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Trust distributions or the redemption of Trust shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary reimbursement of expenses less than 0.01%.
6. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
9 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
NOTES TO FINANCIAL STATEMENTS
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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 the 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.
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Securities Valuation. Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
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Securities on a When-Issued Basis. Delivery and payment for securities that
have been purchased by the Trust on a when-issued basis can take place a month
or more after the trade date. Normally the settlement date occurs within six
months after the trade date; however, the Trust may, from time to time,
purchase securities whose settlement date extends six months or more beyond
trade date. During this period, such securities do not earn interest, are
subject to market fluctuation and may increase or decrease in value prior to
their delivery. The Trust maintains segregated assets with a market value equal
to or greater than the amount of its purchase commitments. The purchase of
securities on a when-issued basis may increase the volatility of the Trust's
net asset value to the extent the Trust makes such purchases while remaining
substantially fully invested. As of June 30, 2003, the Trust had entered into
when-issued purchase commitments of $7,064,330.
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Security Credit Risk. There arecertain risks arising from geographic
concentration in any State. Certain revenue or tax related events in a state
may impair the ability of certain issuers of municipal securities to pay
principal and interest on their obligations.
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Federal Taxes. The Trust intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income to shareholders,
therefore, no federal income or excise tax provision is required.
The tax components of capital shown in the table below represent
distribution requirements the Trust must satisfy under the income tax
regulations, losses the Trust may be able to offset against income and gains
realized in future years for federal income tax purposes.
Undistributed Net Undistributed Accumulated
Investment Income Long-Term Gains Loss Carryforward
---------------------------------------------------------
$27,351 $-- $--
10 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Trust.
To (From) From Net
Ordinary Capital Gain Tax Return Investment
Income (Loss) (Loss) 1 of Capital Loss
------------------------------------------------------
$-- $2,327 $-- $--
1. $2,327 was distributed in connection with Trust share redemptions.
The tax character of distributions paid during the years ended June 30, 2003
and June 30, 2002 were as follows:
Year Ended Year Ended
June 30, 2003 June 30, 2002
-------------------------------------------------------
Distributions paid from:
Exempt-interest distributions $805,721 $ 1,447,930
Long-term capital gain -- 16,396
------------------------
Total $805,721 $1,464,326
========================
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Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are
declared daily and paid monthly. Capital gain distributions, if any, are
declared and paid annually.
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Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Trust.
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Security Transactions. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
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Other. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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.
11 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
NOTES TO FINANCIAL STATEMENTS Continued
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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:
Year Ended June 30, 2003 Year Ended June 30, 2002
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------
Sold 450,261,068 $ 450,261,068 444,501,691 $ 444,501,691
Dividends and/or
distributions reinvested 803,029 803,029 1,492,748 1,492,748
Redeemed (452,863,608) (452,863,608) (448,678,039) (448,678,039)
-----------------------------------------------------------------
Net decrease (1,799,511) $ (1,799,511) (2,683,600) $ (2,683,600)
=================================================================
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3. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Trust which provides for a fee at an
annual rate of 0.50% of the first $250 million of the 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 any
expenses of the Trust in any fiscal year they exceed 0.80% of the Trust's
average annual net assets. The Manager reserves the right to amend or terminate
that expense assumption at any time.
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Transfer Agent Fees. Shareholder Services, Inc. (SSI) acts as the transfer and
shareholder servicing agent for the Trust and for other registered investment
companies. The Trust pays SSI a $14.75 per account fee.
SSI has voluntarily agreed to limit transfer and shareholder servicing agent
fees up to an annual rate of 0.35% of average net assets of the Trust. This
undertaking may be amended or withdrawn at any time.
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Service Plan (12b-1) Fees. The Trust has adopted a service plan. It reimburses
the Distributor for a portion of its costs incurred for services provided to
accounts that hold shares of the Trust. Reimbursement is made quarterly at an
annual rate up to 0.20% of the average annual net assets of the Trust. During
the year ended June 30, 2003, the Trust paid $11 to a broker/dealer affiliated
with the Manager as reimbursement for distribution-related expenses.
12 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
INDEPENDENT AUDITORS' REPORT
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To the Board of Trustees and Shareholders of Centennial California Tax Exempt
Trust:
We have audited the accompanying statement of assets and liabilities of
Centennial California Tax Exempt Trust, including the statement of investments,
as of June 30, 2003, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. 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 auditing standards generally
accepted in the United States of America. 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 as of June 30, 2003, by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. 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, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Centennial California Tax Exempt Trust as of June 30, 2003, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche LLP
Denver, Colorado
July 22, 2003
13 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Trust during
calendar year 2003. 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 year ended June 30, 2003
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 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.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES Unaudited
- --------------------------------------------------------------------------------
The Trust has adopted Portfolio Proxy Voting Policies and Procedures under
which the Trust votes proxies relating to securities ("portfolio proxies") held
by the Trust. A description of the Trust's Portfolio Proxy Voting Policies and
Procedures is available (i) without charge, upon request, by calling the Trust
toll-free at 1.800.225.5677, (ii) on the Trust's website at
www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In
addition, the Trust will be required to file new Form N-PX, with its complete
proxy voting record for the 12 months ended June 30th, no later than August
31st of each year. The first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Trust's Form N-PX
filing will be available (i) without charge, upon request, by calling the Trust
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
14 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
TRUSTEES AND OFFICERS Unaudited
Principal Occupation(s) During Past 5 Years;
Other Trusteeships/Directorships Held by
Name, Position(s) Held with Trustee; Number of Portfolios in Fund Complex
Trust, Length of Service, Age Currently Overseen by Trustee
INDEPENDENT The address of each Trustee in the chart below
TRUSTEES is 6803 S. Tucson Way, Centennial, CO
80112-3924. Each Trustee serves for an
indefinite term, until his or her resignation,
retirement, death or removal.
James C. Swain, Formerly, Chief Executive Officer (until August
Chairman and Trustee 27, 2002) of the Board II Funds, President and a
(since 1990) director (until 1997) of the Manager and Vice
Age: 69 Chairman (until January 2, 2002) of
OppenheimerFunds, Inc. (of which the Manager is
a wholly-owned investment advisory subsidiary).
Oversees 42 portfolios in the OppenheimerFunds
complex.
William L. Armstrong, Chairman of the following private mortgage
Vice Chairman (since 2003) banking companies: Cherry Creek Mortgage Company
and Trustee (since 1999) (since 1991), Centennial State Mortgage Company
Age: 66 (since 1994), The El Paso Mortgage Company
(since 1993), Transland Financial Services, Inc.
(since 1997); Chairman of the following private
companies: Great Frontier Insurance (insurance
agency) (since 1995), Ambassador Media
Corporation and Broadway Ventures (since 1984);
a director of the following public companies:
Helmerich & Payne, Inc. (oil and gas
drilling/production company) (since 1992) and
UNUMProvident (insurance company) (since 1991).
Mr. Armstrong is also a Director/Trustee of
Campus Crusade for Christ and the Bradley
Foundation. Formerly a director of the
following: Storage Technology Corporation (a
publicly-held computer equipment company)
(1991-February 2003), International Family
Entertainment (television channel) (1992-1997)
and Natec Resources, Inc. (air pollution control
equipment and services company) (1991-1995),
Frontier Real Estate, Inc. (residential real
estate brokerage) (1994-1999), and Frontier
Title (title insurance agency) (1995-June 1999);
a U.S. Senator (January 1979-January 1991).
Oversees 42 portfolios in the OppenheimerFunds
complex.
Robert G. Avis, Formerly, Director and President of A.G. Edwards
Trustee (since 1993) Capital, Inc. (General Partner of private equity
Age: 72 funds) (until February 2001); Chairman,
President and Chief Executive Officer of A.G.
Edwards Capital, Inc. (until March 2000); Vice
Chairman and Director of A.G. Edwards, Inc. and
Vice Chairman of A.G. Edwards & Sons, Inc. (its
brokerage company subsidiary) (until March
1999); Chairman of A.G. Edwards Trust Company
and A.G.E. Asset Management (investment advisor)
(until March 1999); and a Director (until March
2000) of A.G. Edwards & Sons and A.G. Edwards
Trust Company. Oversees 42 portfolios in the
OppenheimerFunds complex.
George C. Bowen, Formerly (until April 1999) Mr. Bowen held the
Trustee (since 1997) following positions: Senior Vice President (from
Age: 66 September 1987) and Treasurer (from March 1985)
of OppenheimerFunds, Inc; Vice President (from
June 1983) and Treasurer (since March 1985) of
OppenheimerFunds Distributor, Inc. (a subsidiary
of OppenheimerFunds, Inc., of which the Manager
is an investment advisory subsidiary); Senior
Vice President (since February 1992), Treasurer
(since July 1991) Assistant Secretary and a
director (since December 1991) of the Manager;
Vice President (since October 1989) and
Treasurer (since April 1986) of HarbourView
Asset Management Corporation (an investment
advisory subsidiary of OppenheimerFunds, Inc.);
President, Treasurer and a director (June
1989-January 1990) of Centennial Capital
Corporation (a prior investment advisory
subsidiary of OppenheimerFunds, Inc.); Vice
President and Treasurer (since August 1978) and
Secretary (since April 1981) of Shareholder
Services, Inc., and Vice President, Treasurer
and Secretary (since November 1989) of
Shareholder Financial Services, Inc. (both are
transfer agent subsidiaries of OppenheimerFunds,
Inc.); Assistant Treasurer (since March 1998) of
15 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
TRUSTEES AND OFFICERS Unaudited / Continued
George C. Bowen, Oppenheimer Acquisition Corp. (OppenheimerFunds,
Continued Inc.'s parent holding company); Treasurer (since
November 1989) of Oppenheimer Partnership
Holdings, Inc. (a holding company subsidiary of
OppenheimerFunds, Inc.); Vice President and
Treasurer (since July 1996) of Oppenheimer Real
Asset Management, Inc. (an investment advisory
subsidiary of OppenheimerFunds, Inc.); Treasurer
(since October 1997) of OppenheimerFunds
International Ltd. and Oppenheimer Millennium
Funds plc (offshore fund management subsidiaries
of OppenheimerFunds, Inc.). Oversees 42
portfolios in the OppenheimerFunds complex.
Edward L. Cameron, A member of The Life Guard of Mount Vernon,
Trustee (since 1999) George Washington's home (since June 2000).
Age: 64 Formerly (March 2001 - May 2002) Director of
Genetic ID, Inc. and its subsidiaries (a
privately held biotech company); a partner with
PricewaterhouseCoopers LLP (from 1974-1999) (an
accounting firm) and Chairman (from 1994-1998),
Price Waterhouse LLP Global Investment
Management Industry Services Group. Oversees 42
portfolios in the OppenheimerFunds complex.
Jon S. Fossel, Chairman and Director (since 1998) of Rocky
Trustee (since 1990) Mountain Elk Foundation (a not-for-profit
Age: 61 foundation); and a director (since October 1999)
of P.R. Pharmaceuticals (a privately held
company) and UNUMProvident (an insurance
company) (since June 1, 2002). Formerly Chairman
and a director (until October 1996) and
President and Chief Executive Officer (until
October 1995) of OppenheimerFunds, Inc.;
President, Chief Executive Officer and a
director of Oppenheimer Acquisition Corp.,
Shareholders Services Inc. and Shareholder
Financials Services, Inc. (until October 1995).
Oversees 42 portfolios in the OppenheimerFunds
complex.
Sam Freedman, Director of Colorado Uplift (a non-profit
Trustee (since 1996) charity) (since September 1984). Formerly (until
Age: 62 October 1994) Mr. Freedman held several
positions in subsidiary or affiliated companies
of OppenheimerFunds, Inc. Oversees 42 portfolios
in the OppenheimerFunds complex.
Beverly L. Hamilton, Trustee (since 1996) of MassMutual Institutional
Trustee (since 2002) Funds and of MML Series Investment Fund
Age: 56 (open-end investment companies); Director of MML
Services (since April 1987) and America Funds
Emerging Markets Growth Fund (since October
1991) (both are investment companies), The
California Endowment (a philanthropy
organization) (since April 2002), and Community
Hospital of Monterey Peninsula, (since February
2002); a trustee (since February 2000) of
Monterey International Studies (an educational
organization), and an advisor to Unilever
(Holland)'s pension fund and to Credit Suisse
First Boston's Sprout venture capital unit. Mrs.
Hamilton also is a member of the investment
committees of the Rockefeller Foundation, the
University of Michigan and Hartford Hospital.
Formerly, President (February 1991-April 2000)
ARCO Investment Management Company. Oversees 43
portfolios in the OppenheimerFunds complex.
Robert J. Malone, Director (since 2001) of Jones Knowledge, Inc.
Trustee (since 2002) (a privately held company), U.S. Exploration,
Age: 58 Inc., (since 1997), Colorado UpLIFT (a
non-profit organization) (since 1986) and a
trustee of the Gallagher Family Foundation
(non-profit organization) (since 2000).
Formerly, Chairman of U.S. Bank (a subsidiary of
U.S. Bancorp and formerly Colorado National
Bank,) (July 1996-April 1, 1999) and a director
of Commercial Assets, Inc. (a REIT) (1993-2000).
Oversees 43 portfolios in the OppenheimerFunds
complex.
16 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
F. William Marshall, Jr., Trustee (since 1996) of MassMutual Institutional
Trustee (since 2000) Funds and of MML Series Investment Fund
Age: 61 (open-end investment companies); Trustee (since
1987), Chairman of the Board (since 2003) and
Chairman of the investment committee (since
1994) for the Worcester Polytech Institute;
President and Treasurer (since January 1999) of
the SIS Fund (a private not for profit
charitable fund); Trustee (since 1995) of the
Springfield Library and Museum Association;
Trustee (since 1996) of the Community Music
School of Springfield. Formerly, member of the
investment committee of the Community Foundation
of Western Massachusetts (1998 - 2003); Chairman
(January 1999-July 1999) of SIS & Family Bank,
F.S.B. (formerly SIS Bank); President, Chief
Executive Officer and Director (May
1993-December 1998) of SIS Bankcorp, Inc. and
SIS Bank (formerly Springfield Institution for
Savings) and Executive Vice President (January
1999-July 1999) of Peoples Heritage Financial
Group, Inc. Oversees 42 portfolios in the
OppenheimerFunds complex.
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE The address of Mr. Grabish in the chart below is
6803 S. Tucson Way, Centennial, CO 80112-3924.
Mr. Grabish serves for an indefinite term, until
his resignation, retirement, death or removal.
Richard F. Grabish, Senior Vice President, Assistant Director of
Trustee (since 2001) Sales and Marketing (since March 1997), and
Age: 54 Manager of Private Client Services (since June
1985) for A.G. Edwards & Sons, Inc.
(broker/dealer and investment firm). Chairman
and Chief Executive Officer (since March 2001)
of A.G. Edwards Trust Company; Director (since
March 1988) of A.G. Edwards & Sons, Inc.
Formerly (until March 1987) President and Vice
Chairman of A.G. Edwards Trust Company. Oversees
6 portfolios in the OppenheimerFunds complex.
- --------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart below
is as follows: for Messrs. Murphy and Zack, 498
Seventh Avenue, New York, NY 10018, for Messrs.
Carbuto and Wixted, 6803 S. Tucson Way,
Centennial, CO 80112-3924. Each Officer serves
for an annual term or until his or her earlier
resignation, death or removal.
John V. Murphy, Director (since November 2001) of the Manager;
President (since 2001) Chairman, Chief Executive Officer and director
Age: 53 (since June 2001) and President (since September
2000) of OppenheimerFunds, Inc.; President and a
trustee or director of other Oppenheimer funds;
President and a director (since July 2001) of
Oppenheimer Acquisition Corp. and of Oppenheimer
Partnership Holdings, Inc.; a director (since
November 2001) of OppenheimerFunds Distributor,
Inc.; Chairman and a director (since July 2001)
of Shareholder Services, Inc. and of Shareholder
Financial Services, Inc.; President and a
director (since July 2001) of OppenheimerFunds
Legacy Program (a charitable trust program
established by OppenheimerFunds, Inc.); a
director of the following investment advisory
subsidiaries of OppenheimerFunds, Inc.: OFI
Institutional Asset Management, Inc. (since
November 2001), HarbourView Asset Management
Corporation and OFI Private Investments, Inc.
(since July 2002); President (since November 1,
2001) and a director (since July 2001) of
Oppenheimer Real Asset Management, Inc.; a
director (since November 2001) of Trinity
Investment Management Corp. and Tremont
Advisers, Inc. (investment advisory affiliates
of OppenheimerFunds, Inc.); Executive Vice
President (since February 1997) of Massachusetts
Mutual Life Insurance Company (OppenheimerFunds,
Inc.'s parent company); a director (since June
1995) of DLB Acquisition Corporation (a holding
company that owns shares of David L. Babson &
Company, Inc.); formerly Chief Operating Officer
(September 2000-June 2001) of OppenheimerFunds,
Inc.; President and trustee (November
1999-November 2001) of MML Series Investment
Fund and
17 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
TRUSTEES AND OFFICERS Unaudited / Continued
John V. Murphy, MassMutual Institutional Funds (open-end
Continued investment companies); a director (September
1999-August 2000) of C.M. Life Insurance
Company; President, Chief Executive Officer and
director (September 1999-August 2000) of MML Bay
State Life Insurance Company; a director (June
1989-June 1998) of Emerald Isle Bancorp and
Hibernia Savings Bank (wholly-owned subsidiary
of Emerald Isle Bancorp). An officer of 90
portfolios in the OppenheimerFunds complex.
Michael A. Carbuto, Vice President (since May 1988) of
Vice President (since 1990) OppenheimerFunds, Inc.; an officer of 3
Age: 47 portfolios in the OppenheimerFunds complex;
formerly Vice President of the Distributor (May
1988 - September 1999).
Brian W. Wixted, Senior Vice President and Treasurer (since March
Treasurer (since 1999) 1999) of OppenheimerFunds, Inc.; Treasurer
Age: 43 (since March 1999) of HarbourView Asset
Management Corporation, Shareholder Services,
Inc., Oppenheimer Real Asset Management Corpora-
tion, Shareholder Financial Services, Inc.,
Oppenheimer Partnership Holdings, Inc., OFI
Private Investments, Inc. (since March 2000),
OppenheimerFunds International Ltd. and
Oppenheimer Millennium Funds plc (since May
2000), offshore fund management subsidiaries of
OppenheimerFunds, Inc., and OFI Institutional
Asset Management, Inc. (since November 2000), an
investment advisory subsidiary of
OppenheimerFunds, Inc.; Treasurer and Chief
Financial Officer (since May 2000) of
Oppenheimer Trust Company, a trust company
subsidiary of OppenheimerFunds, Inc.; Assistant
Treasurer (since March 1999) of Oppenheimer
Acquisition Corp. and OppenheimerFunds Legacy
Program (since April 2000); formerly Principal
and Chief Operating Officer (March 1995-March
1999), Bankers Trust Company-Mutual Fund
Services Division. An officer of 90 portfolios
in the OppenheimerFunds complex.
Robert G. Zack, General Counsel (since November 2001) of the
Vice President and Secretary Manager; Senior Vice President (since May 1985)
(since 2001) and General Counsel (since February 2002) of
Age: 54 OppenheimerFunds, Inc.; General Counsel and a
director (since November 2001) of
OppenheimerFunds Distributor, Inc.; Senior Vice
President and General Counsel (since November
2001) of HarbourView Asset Management
Corporation; Vice President and a director
(since November 2000) of Oppenheimer Partnership
Holdings, Inc.; Senior Vice President, General
Counsel and a director (since November 2001) of
Shareholder Services, Inc., Shareholder
Financial Services, Inc., OFI Private
Investments, Inc., Oppenheimer Trust Company and
OFI Institutional Asset Management, Inc.; a
director (since November 2001) of Oppenheimer
Real Asset Management, Inc.; Assistant Secretary
and a director (since November 2001) of
OppenheimerFunds International Ltd.; Vice
President (since November 2001) of
OppenheimerFunds Legacy Program; Secretary
(since November 2001) of Oppenheimer Acquisition
Corp.; formerly Acting General Counsel (November
2001-February 2002) and Associate General
Counsel (May 1981-October 2001) of
OppenheimerFunds, Inc.; Assistant Secretary of
Shareholder Services, Inc. (May 1985-November
2001), Shareholder Financial Services, Inc.
(November 1989-November 2001); OppenheimerFunds
International Ltd. and Oppenheimer Millennium
Funds plc (October 1997-November 2001). An
officer of 90 portfolios in the OppenheimerFunds
complex.
The Trust's Statement of Additional Information contains additional information
about the Trust's Trustees and is available without charge upon request.
18 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
ITEM 2. CODE OF ETHICS - NOT REQUIRED
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT - NOT REQUIRED
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. RESERVED
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(c)) as of June 30, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to be appropriately
designed to ensure that information required to be disclosed by
registrant in the reports that it files under the Securities Exchange
Act of 1934 (a) is accumulated and communicated to registrant's
management, including its principal executive officer and principal
financial officer, to allow timely decisions regarding required
disclosure, and (b) is recorded, processed, summarized and reported,
within the time periods specified in the rules and forms adopted by the
U.S. Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect
registrant's internal controls subsequent to the date of the most
recent evaluation as indicated, including no significant deficiencies
or material weaknesses that required corrective action.
ITEM 10. EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)