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 811-3104
Centennial 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.
Two World Financial Center, New York, New York 10281-1008
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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, 2003 - June 30, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS JUNE 30, 2004
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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SHORT-TERM TAX-EXEMPT OBLIGATIONS--100.6%
- ---------------------------------------------------------------------------------------------------------------------------
ALABAMA--2.0%
AL HFA MH RB, Park Rocky Ridge Project, Series B, 1.21% 1 $ 9,980,000 $ 9,980,000
- ---------------------------------------------------------------------------------------------------------------------------
Birmingham, AL Waterworks & Sewer Board RB, AAMC Series 2002-21,
1.07%, 9/1/04 2,3 10,000,000 10,000,000
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Demopolis, AL IDV Board RB, Del Mesa Farms Project, 1.20% 1 6,400,000 6,400,000
- ---------------------------------------------------------------------------------------------------------------------------
Hoover, AL BOE Capital Outlay TANs, AAMC Series 2001-16, 1.12% 1,3 4,950,000 4,950,000
- ---------------------------------------------------------------------------------------------------------------------------
Sylacauga, AL IDV Board RB, Harrells Fertilizer, Inc., 1.20% 1 3,400,000 3,400,000
------------------
34,730,000
- ---------------------------------------------------------------------------------------------------------------------------
ALASKA--0.9%
North Slope Borough, AK GOB, Series B, 1.13% 1 13,400,000 13,400,000
- ---------------------------------------------------------------------------------------------------------------------------
Valdez, AK Marine Term RRB, BP Pipelines, Inc. Project-A, 1.10% 1 2,300,000 2,300,000
------------------
15,700,000
- ---------------------------------------------------------------------------------------------------------------------------
ARIZONA--1.6%
Phoenix, AZ Civic Improvement Corp. Waste WS BANs, Series 2003,
0.98%, 7/14/04 5,000,000 5,000,000
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Phoenix, AZ IDAU MH RRB, Paradise Lakes Apts. Project, Series 1995, 1.12% 1 22,500,000 22,500,000
------------------
27,500,000
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CALIFORNIA--9.3%
Alameda/Contra Cost, CA School FAU COP, Capital Improvements
Financing Project, Series G, 1.19% 1 835,000 835,000
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Alameda/Contra Cost, CA School FAU COP, Capital Improvements
Financing Project, Series H, 1.19% 1 4,720,000 4,720,000
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CA Department of Water Resources Power Supply RB, Series C-2, 1.07% 1 1,900,000 1,900,000
- ---------------------------------------------------------------------------------------------------------------------------
CA Department of Water Resources Power Supply RB, Series C-7, 1.08% 1 12,100,000 12,100,000
- ---------------------------------------------------------------------------------------------------------------------------
CA Department of Water Resources Power Supply RB, Series C-9, 1.08% 1 12,600,000 12,600,000
- ---------------------------------------------------------------------------------------------------------------------------
CA Department of Water Resources Power Supply RB, Series C-10, 1.09% 1 43,600,000 43,600,000
- ---------------------------------------------------------------------------------------------------------------------------
CA Department of Water Resources Power Supply RB, Series C-12, 1.06% 1 12,000,000 12,000,000
- ---------------------------------------------------------------------------------------------------------------------------
CA Department of Water Resources Power Supply RB, Series C-14, 1.08% 1 1,000,000 1,000,000
- ---------------------------------------------------------------------------------------------------------------------------
CA Infrastructure & ED Bank RRB, Independent System Operator Corp.
Project-C, 1.04% 1 1,000,000 1,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Lake Elsinore, CA Recreation Authority RB, Public Facilities, Series 2000A,
1.07% 1 13,535,000 13,535,000
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Los Angeles Cnty., CA Pension Obligation RRB, Series B, 1.04% 1 8,050,000 8,050,000
- ---------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA Community RA RB, Baldwin Hills Public Parking Facilities
Project, Series 1984, 1.04% 1 15,000,000 15,000,000
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Los Angeles, CA Community RA RB, Skyline at Southpark Apts.,
Series 1985, 1.07% 1 1,900,000 1,900,000
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Oakland/Alameda Cntys., CA Coliseum Authority RB, Coliseum Project,
Series C-2, 1.03% 1 14,000,000 14,000,000
5 | CENTENNIAL TAX EXEMPT TRUST
STATEMENT OF INVESTMENTS CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
Orange Cnty., CA Apt. Development RB, Niguel Summit 2, Series B, 1.02% 1 $ 590,000 $ 590,000
- ---------------------------------------------------------------------------------------------------------------------------
Orange Cnty., CA HAU MH RB, Lantern Pines Project-CC, 1.05% 1 300,000 300,000
- ---------------------------------------------------------------------------------------------------------------------------
Sacramento Cnty., CA COP, Administration Center & Court House
Project, 1.06% 1 11,250,000 11,250,000
- ---------------------------------------------------------------------------------------------------------------------------
San Bernardino Cnty., CA MH HAU RRB, Somerset Apts.-A, 1.07% 1 1,500,000 1,500,000
- ---------------------------------------------------------------------------------------------------------------------------
Santa Clara Cnty., CA El Camino Hospital FAU RB, 1.08% 1 1,338,000 1,338,000
- ---------------------------------------------------------------------------------------------------------------------------
Santa Clara Cnty., CA El Camino Hospital FAU RB, 1.08% 1 600,000 600,000
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Santa Clara, CA Transportation District RRB, Series 1985 A, 1.04% 1 8,235,000 8,235,000
------------------
166,053,000
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COLORADO--2.4%
Arapahoe Cnty., CO MH Senior RB, Centennial East Apt. Project,
2000 Series A-1, Revenue Bond Certificates Trust, Series 2004-13, 1.38% 1,3 3,115,000 3,115,000
- ---------------------------------------------------------------------------------------------------------------------------
Arapahoe Cnty., CO Water & Wastewater Authority RRB, Series A, 1.11% 1 2,500,000 2,500,000
- ---------------------------------------------------------------------------------------------------------------------------
Castle Rock, CO MH RB, Castlegate Apt. Project, Revenue Bond
Certificates Trust, Series 2004-1, 1.38% 1,3 11,896,000 11,896,000
- ---------------------------------------------------------------------------------------------------------------------------
Central Platte Valley & Denver Cnty., CO Metro District GOB,
Series B, 1.30%, 12/1/04 2 3,000,000 3,000,000
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CO Educational & Cultural FA Public Radio RB, Community
Wireless Park City, 1.10% 1 790,000 790,000
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Denver, CO Cty. & Cnty. Excise Tax RB, Colorado Convention
Center Project, 1.08% 1 1,000,000 1,000,000
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Denver, CO Cty. & Cnty. REF COP, Wellington E. Webb Building,
Series 2003C, 1.05% 1 3,550,000 3,550,000
- ---------------------------------------------------------------------------------------------------------------------------
E-470 Public Highway, CO RRB, Vehicle Registration Fee, 1.05% 1 2,100,000 2,100,000
- ---------------------------------------------------------------------------------------------------------------------------
Stapleton Business Center Metro District, CO RB, 1.18% 1 7,550,000 7,550,000
- ---------------------------------------------------------------------------------------------------------------------------
Superior Metro District No. 1, CO WSS BANs, 1.18% 1 2,000,000 2,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Superior/McCaslin Interchange Metro District, CO GOB, Series 2004,
1.10%, 11/15/04 2 2,075,000 2,075,000
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Willow Trace Metro District, CO GOLB, Series A, 1.30%, 12/1/04 2 2,295,000 2,295,000
------------------
41,871,000
- ---------------------------------------------------------------------------------------------------------------------------
CONNECTICUT--2.0%
CT SPTX Obligations RRB, Transportation Infrastructure-1, 1.06% 1 33,830,000 33,830,000
- ---------------------------------------------------------------------------------------------------------------------------
CT SPTX Obligations RRB, Transportation Infrastructure-2, 1.06% 1 1,410,000 1,410,000
------------------
35,240,000
- ---------------------------------------------------------------------------------------------------------------------------
FLORIDA--7.7%
Broward Cnty., FL Airport Facilities RB, Learjet, Inc. Project-2000, 1.20% 1 2,450,000 2,450,000
- ---------------------------------------------------------------------------------------------------------------------------
Collier Cnty., FL IDAU RB, Gulf Coast American Blind, Series A, 1.18% 1 2,805,000 2,805,000
- ---------------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL WSS RB, ETET Series 96C0908, Cl. A, 1.14% 1,3 9,900,000 9,900,000
- ---------------------------------------------------------------------------------------------------------------------------
FL Gulf Coast University Financing Corp./Capital Improvement RB,
Series 2003, 1.08% 1 46,000,000 46,000,000
6 | CENTENNIAL TAX EXEMPT TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
FLORIDA Continued
FL TUAU RB, Series A, ETET Series 96C0910, Cl. A, 1.14% 1,3 $14,850,000 $ 14,850,000
- ---------------------------------------------------------------------------------------------------------------------------
Hillsborough Cnty., FL IDAU PC COP, Tampa Electric Co. Project,
ETET Series 96C0911, Cl. A, 1.14% 1,3 17,795,000 17,795,000
- ---------------------------------------------------------------------------------------------------------------------------
Hillsborough Cnty., FL IDAU PC COP, Tampa Electric Co. Project,
ETET Series 97C0901, Cl. A, 1.14% 1,3 17,795,000 17,795,000
- ---------------------------------------------------------------------------------------------------------------------------
Jacksonville, FL Sales Tax RB, MERLOTS Series 2003 B26, 1.12% 1,3 9,990,000 9,990,000
- ---------------------------------------------------------------------------------------------------------------------------
Polk Cnty., FL School Board Master Lease Program COP, Series 2003A, 1.05% 1 15,200,000 15,200,000
------------------
136,785,000
- ---------------------------------------------------------------------------------------------------------------------------
GEORGIA--5.9%
Atlanta, GA TXAL Bonds, Westside Project, 1.09% 1 14,995,000 14,995,000
- ---------------------------------------------------------------------------------------------------------------------------
Burke Cnty., GA PC RB, Series 98-B, 1.12%, 8/16/04 25,000,000 25,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Cherokee Cnty., GA WSS RRB, MERLOTS Series 2003 A14, 1.12% 1,3 7,035,000 7,035,000
- ---------------------------------------------------------------------------------------------------------------------------
Cobb Cnty., GA DAU RB, Kennesaw St. University Foundation-Parking
Facilities, 1.09% 1 11,150,000 11,150,000
- ---------------------------------------------------------------------------------------------------------------------------
Dahlonega, GA Downtown DAU Student Housing RB, 1.07% 1 2,100,000 2,100,000
- ---------------------------------------------------------------------------------------------------------------------------
East Point, GA HAU RB, Village Highlands Apts. Project, Series 2004, 1.13% 1 4,000,000 4,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Fulton, GA DAU RB, Woodard Academy, Inc. Project, 1.05% 1 10,200,000 10,200,000
- ---------------------------------------------------------------------------------------------------------------------------
GA GOB, Series 1995B, ETET Series 96C1004, Cl. A, 1.14% 1,3 11,880,000 11,880,000
- ---------------------------------------------------------------------------------------------------------------------------
GA GOB, Series E, 6%, 7/1/04 180,000 180,000
- ---------------------------------------------------------------------------------------------------------------------------
Gainsville, GA RA EDLFA RRB, Riverside Military Project, 1.09% 1 6,250,000 6,250,000
- ---------------------------------------------------------------------------------------------------------------------------
Kennesaw, GA DAU MH RB, Walton Ridenour Apts., 1.13% 1 6,000,000 6,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Valdosta/Lowndes Cntys., GA HA RB, South Georgia Medical
Center Project, Series 1998, 1.08% 1 6,200,000 6,200,000
------------------
104,990,000
- ---------------------------------------------------------------------------------------------------------------------------
IDAHO--1.2%
Custer Cnty., ID PC RB, Amoco Standard Oil of Indiana, 0.90%, 10/1/04 2 20,375,000 20,375,000
- ---------------------------------------------------------------------------------------------------------------------------
ILLINOIS--15.6%
Chicago, IL BOE GOUN, AAMC Series 2002-4, 1.12% 1,3 9,225,000 9,225,000
- ---------------------------------------------------------------------------------------------------------------------------
Chicago, IL General Obligation Nts., Series 2004, 1.05%, 1/13/05 2 5,000,000 5,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Chicago, IL GOB, AAMC Series 2001-34, 1.12% 1,3 10,975,000 10,975,000
- ---------------------------------------------------------------------------------------------------------------------------
Chicago, IL GOUN, AAMC Series 1998-3, 1.12% 1,3 8,735,000 8,735,000
- ---------------------------------------------------------------------------------------------------------------------------
Chicago, IL RB, Lakefront Millennium Parking Facility, ETET Series 981303,
Cl. A, 1.14% 1,3 22,495,000 22,495,000
- ---------------------------------------------------------------------------------------------------------------------------
Crestwood, IL HEAU RB, Trinity Christian College, Series 2003, 1.08% 1 7,480,000 7,480,000
- ---------------------------------------------------------------------------------------------------------------------------
Crestwood, IL RB, Trinity Christian College, Series 2003, 1.13% 1 7,185,000 7,185,000
- ---------------------------------------------------------------------------------------------------------------------------
IL Development FAU IDV RB, Knead Dough Baking Co. Project, Series A, 1.28% 1 3,000,000 3,000,000
- ---------------------------------------------------------------------------------------------------------------------------
IL Development FAU RB, Jewish Federation of Chicago, Series 1999, 1.05% 1 1,270,000 1,270,000
- ---------------------------------------------------------------------------------------------------------------------------
IL Development FAU SWD RB, Waste Management, Inc. Project, 1.15% 1 9,000,000 9,000,000
- ---------------------------------------------------------------------------------------------------------------------------
IL EDLFA RN, Pooled Financing Program, Series 95, 1.10%, 8/12/04 32,000,000 32,000,000
7 | CENTENNIAL TAX EXEMPT TRUST
STATEMENT OF INVESTMENTS CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
ILLINOIS Continued
IL EDLFA RN, Pooled Financing Program, Series 95, 1.12%, 8/11/04 $15,000,000 $ 15,000,000
- ---------------------------------------------------------------------------------------------------------------------------
IL EDLFA RN, Pooled Financing Program, Series 95, 1.12%, 8/16/04 12,000,000 12,000,000
- ---------------------------------------------------------------------------------------------------------------------------
IL EDLFA RN, Pooled Financing Program, Series 95, 1.12%, 8/18/04 11,840,000 11,840,000
- ---------------------------------------------------------------------------------------------------------------------------
IL HFAU RB, Evanston Hospital Corp., Series 1985-B, 1.20%, 11/15/04 5,000,000 5,000,000
- ---------------------------------------------------------------------------------------------------------------------------
IL HFAU RB, Evanston Hospital Corp., Series 1992, 1.03%, 11/30/04 17,000,000 17,000,000
- ---------------------------------------------------------------------------------------------------------------------------
IL HFAU RB, Evanston Hospital Corp., Series 1996, 1.40%, 11/12/04 5,000,000 5,000,000
- ---------------------------------------------------------------------------------------------------------------------------
IL HFAU RB, Evanston Northwestern Corp., Series 1998, 1.03%, 11/1/04 2 50,000,000 50,000,000
- ---------------------------------------------------------------------------------------------------------------------------
IL HFAU RB, Swedish Covenant Hospital Project, 1.04% 1 10,950,000 10,950,000
- ---------------------------------------------------------------------------------------------------------------------------
IL RTA RB, MERLOTS Series 2003 B15, 1.12% 1,3 12,960,000 12,960,000
- ---------------------------------------------------------------------------------------------------------------------------
Lombard, IL RB, Elmhurst Healthcare Project, Series 2004, 1.08% 1 6,482,000 6,482,000
- ---------------------------------------------------------------------------------------------------------------------------
Macon Cnty., IL RB, Millikin University, Series 1999, 1.05% 1 4,500,000 4,500,000
- ---------------------------------------------------------------------------------------------------------------------------
Mundelein, IL IDV RRB, Town Line Road, Series 1992, 1.05% 1 3,600,000 3,600,000
- ---------------------------------------------------------------------------------------------------------------------------
Oak Forest, IL RB, Homewood Pool, 1.08% 1 4,500,000 4,500,000
- ---------------------------------------------------------------------------------------------------------------------------
West Frankfort, IL IDV RRB, Kroger Co., 1.18% 1 800,000 800,000
- ---------------------------------------------------------------------------------------------------------------------------
Will Cnty., IL Industrial Facilities RB, Amoco Chemical Co. Project,
Series 2001, 1.13% 1 2,000,000 2,000,000
------------------
277,997,000
- ---------------------------------------------------------------------------------------------------------------------------
INDIANA--2.9%
Goshen, IN ED RB, Goshen College Project, Series 2004, 1.10% 1 3,280,000 3,280,000
- ---------------------------------------------------------------------------------------------------------------------------
IN Development HFA Education Facilities RB, Indianapolis
Museum of Art, Series 2004, 1.05% 1 12,000,000 12,000,000
- ---------------------------------------------------------------------------------------------------------------------------
IN GOB, AAMC Series 2003-15, Single Asset Trust, 1.08%, 10/6/04 2,3 14,200,000 14,200,000
- ---------------------------------------------------------------------------------------------------------------------------
IN MPA PPS RB, ETET Series 981401, Cl. A, 1.14% 1,3 13,600,000 13,600,000
- ---------------------------------------------------------------------------------------------------------------------------
Kokomo, IN ED RB, Village Community Partner IV Project, 1.15% 1 2,640,000 2,640,000
- ---------------------------------------------------------------------------------------------------------------------------
Lawrence/Fort Harrison, IN Reuse Authority Tax Increment RB,
Harrison Military Base, 1.11% 1 2,725,000 2,725,000
- ---------------------------------------------------------------------------------------------------------------------------
Whiting, IN EFC RB, BP Products of North America, 1.13% 1 3,600,000 3,600,000
------------------
52,045,000
- ---------------------------------------------------------------------------------------------------------------------------
KENTUCKY--1.4%
Jackson/Clay/Magoffin Cntys., KY SFM RB, Series A, 1.27% 1 25,000,000 25,000,000
- ---------------------------------------------------------------------------------------------------------------------------
LOUISIANA--3.9%
LA Gas & Fuels Tax Nts., AAMC Series 2002-17, 1.12% 1,3 15,000,000 15,000,000
- ---------------------------------------------------------------------------------------------------------------------------
LA PFFAU RB, Pennington Medical Foundation Project, 1.05% 1 9,950,000 9,950,000
- ---------------------------------------------------------------------------------------------------------------------------
LA University & Mechanic College Auxillary RB, Series 2000, 1.06% 1 5,840,000 5,840,000
- ---------------------------------------------------------------------------------------------------------------------------
New Orleans, LA IDV Board MH RB, Orleans LLC Project, Series 3700, 1.30% 1 29,000,000 29,000,000
- ---------------------------------------------------------------------------------------------------------------------------
St. James Parish, LA PC RRB, Texaco Project, Series A, 1.12%, 7/13/04 2 10,000,000 10,000,000
------------------
69,790,000
8 | CENTENNIAL TAX EXEMPT TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
MARYLAND--1.8%
MD Health & HEFAU RB, Johns Hopkins University, Series B, 1.12%, 8/19/04 $17,732,000 $ 17,732,000
- ---------------------------------------------------------------------------------------------------------------------------
MD Health & HEFAU RB, Maryland Medical System, Series 2004A,
1.12%, 8/18/04 1,500,000 1,500,000
- ---------------------------------------------------------------------------------------------------------------------------
MD Health & HEFAU RRB, University of Maryland Medical System-A, 1.08% 1 4,000,000 4,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Montgomery Cnty., MD Consolidated BANs, Series 2002, 0.97%, 8/11/04 8,000,000 8,000,000
------------------
31,232,000
- ---------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS--0.9%
MA Route 3 Transportation Improvement Assn. Lease RB, Series 2002B, 1.05% 1 8,400,000 8,400,000
- ---------------------------------------------------------------------------------------------------------------------------
MA Water Resources Authority RB, Series A, 1.05% 1 6,990,000 6,990,000
------------------
15,390,000
- ---------------------------------------------------------------------------------------------------------------------------
MICHIGAN--4.2%
MI GANs, 1.04% 1 6,850,000 6,850,000
- ---------------------------------------------------------------------------------------------------------------------------
MI GANs, 1.07% 1 6,000,000 6,000,000
- ---------------------------------------------------------------------------------------------------------------------------
MI GANs, 1.07% 1 1,500,000 1,500,000
- ---------------------------------------------------------------------------------------------------------------------------
MI GANs, 1.07% 1 2,400,000 2,400,000
- ---------------------------------------------------------------------------------------------------------------------------
MI GANs, Series B, 1.07% 1 32,300,000 32,300,000
- ---------------------------------------------------------------------------------------------------------------------------
MI GOB, 2%, 9/30/04 15,450,000 15,488,805
- ---------------------------------------------------------------------------------------------------------------------------
MI Job DAU RB, East Lansing Residence Associates Project, 1.03% 1 1,900,000 1,900,000
- ---------------------------------------------------------------------------------------------------------------------------
St. Clair Cnty., MI ED RRB, MSTFC Series 2000-282X, 1.10%, 8/5/04 2,3 8,000,000 8,000,000
------------------
74,438,805
- ---------------------------------------------------------------------------------------------------------------------------
MINNESOTA--1.0%
MN GOB, 4.75%, 8/1/04 250,000 250,785
- ---------------------------------------------------------------------------------------------------------------------------
MN GOB, ETET Series 20002301, Cl. A, 1.14% 1,3 16,010,000 16,010,000
- ---------------------------------------------------------------------------------------------------------------------------
North Suburban Hospital District, MN RB, Anoka/
Ramsey Cntys. Hospital Health Center, 1% 1 2,200,000 2,200,000
------------------
18,460,785
- ---------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI--0.5%
Jackson Cnty., MS WS RB, 0.95%, 8/2/04 2 8,440,000 8,440,000
- ---------------------------------------------------------------------------------------------------------------------------
MISSOURI--0.8%
Boatmens St. Louis, MO Grantor Trust RB, Series 1996A, 1.20% 1,3 13,475,000 13,475,000
- ---------------------------------------------------------------------------------------------------------------------------
MO Development Finance Board of Education Facilities RB,
Southeast Missouri St. University, Series 2003B, 1.05% 1 1,210,000 1,210,000
------------------
14,685,000
- ---------------------------------------------------------------------------------------------------------------------------
NEVADA--2.0%
Clark Cnty., NV IDV RB, Nevada Cogeneration Assn. No. 2, 1.14% 1 4,000,000 4,000,000
- ---------------------------------------------------------------------------------------------------------------------------
NV GOLB, SGMSTR Series 1997 SG114, 1.12% 1,3 15,000,000 15,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Washoe Cnty., NV GOLB, AAMC Series 2001-24, Single Asset Trust, 1.12% 1,3 16,090,000 16,090,000
------------------
35,090,000
9 | CENTENNIAL TAX EXEMPT TRUST
STATEMENT OF INVESTMENTS CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
NEW JERSEY--0.1%
NJ Sports & Exposition Authority Contract Bonds, 2002 Series B-1, 1.03% 1 $ 2,000,000 $ 2,000,000
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK--2.1%
NYC GOUN, Subseries J3, 1.03% 1 5,200,000 5,200,000
- ---------------------------------------------------------------------------------------------------------------------------
NYC HDC MH RB, Monterey Project, Series A, 1% 1 2,750,000 2,750,000
- ---------------------------------------------------------------------------------------------------------------------------
NYC IDA Civic Facility RB, Casa Project, 1.09% 1 1,000,000 1,000,000
- ---------------------------------------------------------------------------------------------------------------------------
NYC MTAU BANs, Series CP-1A, 0.95%, 7/7/04 3,000,000 3,000,000
- ---------------------------------------------------------------------------------------------------------------------------
NYC MTAU RB, Series D-2, 1.06% 1 2,930,000 2,930,000
- ---------------------------------------------------------------------------------------------------------------------------
NYC MTAU RRB, Series A, MERLOTS Series 2004 B-16, 1.11% 1,3 2,000,000 2,000,000
- ---------------------------------------------------------------------------------------------------------------------------
NYS DA RRB, Municipal Securities Trust Receipts-CMC1B, 1.08% 1,3 800,000 800,000
- ---------------------------------------------------------------------------------------------------------------------------
NYS HFA RB, Historic Front Street Housing, Series 2003A, 1.05% 1 3,550,000 3,550,000
- ---------------------------------------------------------------------------------------------------------------------------
NYS MTAU BANs, Series CP-1A, 0.97%, 8/4/04 15,400,000 15,400,000
- ---------------------------------------------------------------------------------------------------------------------------
NYS UDC RB, SGMSTR, Series 2003 SG163, 1.10% 1,3 900,000 900,000
------------------
37,530,000
- ---------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA--0.9%
Fayetteville, NC Public Works Commission RRB, Series 20003B, 1.07% 1 5,135,000 5,135,000
- ---------------------------------------------------------------------------------------------------------------------------
NC Med Care Community Hospital RB, Northeast Medical Center
Project, Series B, 1.05% 1 11,100,000 11,100,000
------------------
16,235,000
- ---------------------------------------------------------------------------------------------------------------------------
OHIO--4.2%
Columbus, OH Regional AA Capital Funding RB, Municipal Pooled
Financing Program, 1.10% 1 6,660,000 6,660,000
- ---------------------------------------------------------------------------------------------------------------------------
Gallia Cnty., OH IDV Mtg. RRB, Jackson Pike Assn., 1.55%, 12/15/04 2 2,475,000 2,475,000
- ---------------------------------------------------------------------------------------------------------------------------
Hamilton Cnty., OH HCF RB, Twin Towers & Twin Lakes Project,
Series A, 1.11% 1 11,000,000 11,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Hamilton Cnty., OH Hospital Facilities RB, Children's Hospital &
Medical Center, Series 2000, 1.08% 1 1,500,000 1,500,000
- ---------------------------------------------------------------------------------------------------------------------------
Hamilton Cnty., OH Hospital Facilities RB, Children's Hospital &
Medical Center, Series 2002-I, 1.08% 1 5,800,000 5,800,000
- ---------------------------------------------------------------------------------------------------------------------------
Hamilton Cnty., OH Hospital Facilities RB, Elizabeth Gamble Deaconess
Home, Series 2002, 1.04% 1 7,800,000 7,800,000
- ---------------------------------------------------------------------------------------------------------------------------
Hamilton Cnty., OH Hospital Facilities RB, Elizabeth Gamble Deaconess
Home, Series 2002, 1.08% 1 600,000 600,000
- ---------------------------------------------------------------------------------------------------------------------------
Hamilton Cnty., OH Parking System RB, Series 2001, 1.08% 1 7,960,000 7,960,000
- ---------------------------------------------------------------------------------------------------------------------------
Madeira, OH ED RRB, Kroger Co., 1.18% 1 2,050,000 2,050,000
- ---------------------------------------------------------------------------------------------------------------------------
OH Air Quality DAU RB, Ohio Edison Project, Series A, 1.04% 1 3,500,000 3,500,000
- ---------------------------------------------------------------------------------------------------------------------------
OH Water DAU RRB, 1.09% 1 18,585,000 18,585,000
- ---------------------------------------------------------------------------------------------------------------------------
Scioto Cnty., OH HCF RB, Hill View Retirement Center, 1.55% 1 3,565,000 3,565,000
- ---------------------------------------------------------------------------------------------------------------------------
Stark Cnty., OH IDV RRB, Kroger Co., 1.18% 1 3,100,000 3,100,000
------------------
74,595,000
10 | CENTENNIAL TAX EXEMPT TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--2.1%
Berks Cnty., PA IDAU RB, Visiting Nurse Assn., Inc. Project, Series B, 1.19% 1 $ 690,000 $ 690,000
- ---------------------------------------------------------------------------------------------------------------------------
Harrisburg, PA School RB, SDI of Harrisburg, Series 2003, 1.08% 1 24,675,000 24,675,000
- ---------------------------------------------------------------------------------------------------------------------------
Lehigh Cnty., PA IDAU RB, Allentown Airport, 1.16% 1 410,000 410,000
- ---------------------------------------------------------------------------------------------------------------------------
PA Public School Buildings RB, MERLOTS Series 2003 A42, 1.12% 1,3 3,795,000 3,795,000
- ---------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA IDAU RB, Friends of Mast School, Inc. Project, 1.14% 1 975,000 975,000
- ---------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA IDV RB, Girard Estate Aramark Tower Acquisition
Project, 1.08% 1 7,600,000 7,600,000
------------------
38,145,000
- ---------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA--1.7%
Myrtle Beach, SC Hospitality Fee RRB, Series A, AAMC Series 2004-27,
1.33%, 10/20/04 2,3 5,000,000 5,000,000
- ---------------------------------------------------------------------------------------------------------------------------
SC Assn. of Governmental Organizations Nts., 2.75%, 4/15/05 10,000,000 10,095,000
- ---------------------------------------------------------------------------------------------------------------------------
SC Jobs EDAU RB, WUREF Development LLC Project, Series A, 1.09% 1 7,700,000 7,700,000
- ---------------------------------------------------------------------------------------------------------------------------
SC POAU GOB, AAMC Series 1998-7, 1.16% 1,3 7,325,000 7,325,000
------------------
30,120,000
- ---------------------------------------------------------------------------------------------------------------------------
TENNESSEE--0.8%
Chattanooga, TN Health, Education & Housing RB, Tuff/
Chattanooga Housing Project, 1.09% 1 1,655,000 1,655,000
- ---------------------------------------------------------------------------------------------------------------------------
Chattanooga, TN IDV Board RB, Tennessee Aquarium Project,
Series 2004, 1.08% 1 4,000,000 4,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Memphis/Shelby, TN IDV Board RB, YMCA Project, Series 2002, 1.08% 1 8,430,000 8,430,000
------------------
14,085,000
- ---------------------------------------------------------------------------------------------------------------------------
TEXAS--11.0%
Hockley Cnty., TX IDV Corp. PC RB, Amoco Project, 1.15%, 11/1/04 2 13,940,000 13,940,000
- ---------------------------------------------------------------------------------------------------------------------------
Houston, TX General Obligation Nts., Series B, 1.12%, 8/11/04 3,000,000 3,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Houston, TX Hotel Occupancy Tax and Parking RB, Sub. Lien, Series A,
1.12%, 9/13/04 20,500,000 20,500,000
- ---------------------------------------------------------------------------------------------------------------------------
Houston, TX WSS RB, SGMSTR Series 1997 SG120, 1.12% 1,3 32,600,000 32,600,000
- ---------------------------------------------------------------------------------------------------------------------------
Keller, TX ISD GOUN, AAMC Series 2001-26, 1.12% 1,3 3,000,000 3,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Mansfield, TX ISD School Building Bond, Series 2003, 1.08% 1 10,000,000 10,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Mansfield, TX ISD School Building Bond, Series 2003, 1.12% 1,3 14,595,000 14,595,000
- ---------------------------------------------------------------------------------------------------------------------------
Port of Port Arthur, TX Navigation PC RRB, Texaco, Inc. Project,
Series 1994, 1.10% 1 6,700,000 6,700,000
- ---------------------------------------------------------------------------------------------------------------------------
San Marcos, TX IDV Corp. RB, Butler Manufacturing Co. Project, 1.28% 1 6,250,000 6,250,000
- ---------------------------------------------------------------------------------------------------------------------------
TX TANs & RANs, Series 2003, 2%, 8/31/04 74,000,000 74,111,721
- ---------------------------------------------------------------------------------------------------------------------------
TX TUAU RB, Dallas Northtollway, SGMSTR Series 1996 SG70, 1.12% 1,3 11,000,000 11,000,000
------------------
195,696,721
11 | CENTENNIAL TAX EXEMPT TRUST
STATEMENT OF INVESTMENTS CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
UTAH--1.3%
Eagle Mountain, UT Gas & Electric RRB, 1.07% 1 $ 9,500,000 $ 9,500,000
- ---------------------------------------------------------------------------------------------------------------------------
Salt Lake City, UT PC RRB, Amoco Project, 0.95%, 10/1/04 2 4,715,000 4,715,000
- ---------------------------------------------------------------------------------------------------------------------------
Salt Lake Cnty., UT HAU MH RB, Crossroads Apts. Project, 1.10% 1 4,435,000 4,435,000
- ---------------------------------------------------------------------------------------------------------------------------
Salt Lake Cnty., UT TANs & RANs, 2.50%, 12/30/04 4,650,000 4,676,366
------------------
23,326,366
- ---------------------------------------------------------------------------------------------------------------------------
WASHINGTON--4.6%
Energy Northwest, WA Electric RRB, Project No. 3, Series A, 5%, 7/1/04 1,000,000 1,000,000
- ---------------------------------------------------------------------------------------------------------------------------
Energy Northwest, WA Electric RRB, Project No. 3, Series E, 1.04% 1 3,200,000 3,200,000
- ---------------------------------------------------------------------------------------------------------------------------
Everett, WA Public Facilities District RANs & TANs, 1%, 10/27/04 12,500,000 12,500,000
- ---------------------------------------------------------------------------------------------------------------------------
Everett, WA Public Facilities District RANs, Series A, 1%, 10/27/04 24,460,000 24,460,000
- ---------------------------------------------------------------------------------------------------------------------------
King Cnty., WA GOLB, AAMC Series 2001-1, 1.12% 1,3 12,770,000 12,770,000
- ---------------------------------------------------------------------------------------------------------------------------
King Cnty., WA Sewer RB, Jr. Lien, Series B, 1.06% 1 5,215,000 5,215,000
- ---------------------------------------------------------------------------------------------------------------------------
Snohomish Cnty., WA Public Utility District BANs, Generation System,
Series A, 1.07% 1 2,100,000 2,100,000
- ---------------------------------------------------------------------------------------------------------------------------
Snohomish Cnty., WA Public Utility District BANs, Generation System,
Series A, 1.07% 1 9,500,000 9,500,000
- ---------------------------------------------------------------------------------------------------------------------------
WA Housing Finance Commission Nonprofit RRB, Judson Park Project,
Series A, 1.10% 1 10,200,000 10,200,000
- ---------------------------------------------------------------------------------------------------------------------------
WA PPSS RRB, Nuclear Project No. 3, Series 3A-3, 1.07% 1 1,380,000 1,380,000
------------------
82,325,000
- ---------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA--0.4%
Marmet, WV CD RRB, Kroger Co., 1.18% 1 3,100,000 3,100,000
- ---------------------------------------------------------------------------------------------------------------------------
Monogalia Cnty., WV Community Hospital Building RB, Monogalia
General Hospital, Series 2002A, 1.10% 1 4,300,000 4,300,000
------------------
7,400,000
- ---------------------------------------------------------------------------------------------------------------------------
WISCONSIN--1.6%
West Allis, WI RB, State Fair Park Exposition Center, 1.13% 1 3,555,000 3,555,000
- ---------------------------------------------------------------------------------------------------------------------------
WI Education & HFAU RB, Divine Savior Healthcare, Series 2002B, 1.07% 1 400,000 400,000
- ---------------------------------------------------------------------------------------------------------------------------
WI Education & HFAU RB, Southwest Health Center, Inc., 1.07% 1 6,340,000 6,340,000
- ---------------------------------------------------------------------------------------------------------------------------
WI Education & HFAU RB, Wheaton Franciscan Services-B, 1.08% 1 17,750,000 17,750,000
------------------
28,045,000
- ---------------------------------------------------------------------------------------------------------------------------
WYOMING--0.5%
Lincoln Cnty., WY PC RRB, Amoco Oil Co. of Indiana Project, 0.95%, 10/1/04 2 9,250,000 9,250,000
- ---------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA--0.6%
District of Columbia GOB, Series 2000A, 1.06% 1 11,345,000 11,345,000
- ---------------------------------------------------------------------------------------------------------------------------
OTHER TERRITORIES--0.7%
Class B RB Certificates Trust, Series 2004-1, 1.43% 1 3,740,000 3,740,000
- ---------------------------------------------------------------------------------------------------------------------------
USBI 2002 Trust Pass-Through Certificates, Series 2002-A, 1.55% 1,3 9,278,000 9,278,000
------------------
13,018,000
12 | CENTENNIAL TAX EXEMPT TRUST
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--0.0%
PR CMWLTH HTAU RB, Putters Project-246, 1.09% 1,3 $ 450,000 $ 450,000
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,789,378,677) 100.6% 1,789,378,677
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.6) (11,252,311)
------------------------------------
NET ASSETS 100.0% $1,778,126,366
====================================
FOOTNOTES TO STATEMENT OF INVESTMENTS
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
AA Airport Authority
AAMC ABN AMRO Munitops Certificates
BANs Bond Anticipation Nts.
BOE Board of Education
CD Commercial Development
CMWLTH Commonwealth
COP Certificates of Participation
DA Dormitory Authority
DAU Development Authority
ED Economic Development
EDAU Economic Development Authority
EDLFA Educational Facilities Authority
EFC Environmental Facilities Corp.
ETET Eagle Tax-Exempt Trust
FA Facilities Authority
FAU Finance Authority
GANs Grant Anticipation Nts.
GOB General Obligation Bonds
GOLB General Obligation Ltd. Bonds
GOUN General Obligation Unlimited Nts.
HA Hospital Authority
HAU Housing Authority
HCF Health Care Facilities
HDC Housing Development Corp.
HEAU Higher Education Authority
HEFAU Higher Educational Facilities Authority
HFA Housing Finance Agency/Authority
HFAU Health Facilities Authority
HTAU Highway & Transportation Authority
IDA Industrial Development Agency
IDAU Industrial Development Authority
IDV Industrial Development
ISD Independent School District
MERLOTS Municipal Exempt Receipts Liquidity
Option Tender
MH Multifamily Housing
MPA Municipal Power Agency
MSTFC Morgan Stanley & Co., Inc. Trust Floater
Certificates
MTAU Metropolitan Transportation Authority
NYC New York City
NYS New York State
PC Pollution Control
PFFAU Public Facilities Finance Authority
POAU Port Authority
PPS Public Power System
PPSS Public Power Supply System
RA Redevelopment Agency/Authority
RANs Revenue Anticipation Nts.
RB Revenue Bonds
REF Refunding
RN Revenue Nts.
RRB Revenue Refunding Bonds
RTA Regional Transportation Authority/Agency
SDI School District
SFM Single Family Mtg.
SGMSTR Societe Generale, NY Branch Municipal
Security Trust Receipts
SPTX Special Tax
SWD Solid Waste Disposal
TANs Tax Anticipation Nts.
TUAU Turnpike Authority
TXAL Tax Allocation
UDC Urban Development Corp.
WS Water System
WSS Water & Sewer System
YMCA Young Men's Christian Association
13 | CENTENNIAL TAX EXEMPT TRUST
STATEMENT OF INVESTMENTS CONTINUED
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
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,
2004. 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 $398,484,000 or 22.41% of the Trust's net
assets as of June 30, 2004.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14 | CENTENNIAL TAX EXEMPT TRUST
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2004
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------------------------
Investments, at value (cost $1,789,378,677)--see accompanying statement of investments $1,789,378,677
- ------------------------------------------------------------------------------------------------------------------
Cash 4,685,064
- ------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 4,657,573
Investments sold 3,425,361
Shares of beneficial interest sold 3,006,582
Other 83,105
----------------
Total assets 1,805,236,362
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 14,771,366
Shares of beneficial interest redeemed 11,782,868
Dividends 275,923
Distribution and service plan fees 136,098
Shareholder communications 48,198
Transfer and shareholder servicing agent fees 43,318
Trustees' compensation 7,489
Other 44,736
----------------
Total liabilities 27,109,996
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS $1,778,126,366
================
- ------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------------------------------
Paid-in capital $1,778,228,184
- ------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (101,818)
----------------
NET ASSETS--applicable to 1,778,257,819 shares of beneficial interest outstanding $1,778,126,366
================
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND OFFERING PRICE PER SHARE $1.00
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 | CENTENNIAL TAX EXEMPT TRUST
STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $18,838,298
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 7,801,969
- --------------------------------------------------------------------------------
Service plan fees 3,697,181
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 544,922
- --------------------------------------------------------------------------------
Custodian fees and expenses 50,685
- --------------------------------------------------------------------------------
Shareholder communications 49,584
- --------------------------------------------------------------------------------
Trustees' compensation 13,325
- --------------------------------------------------------------------------------
Other 202,056
--------------
Total expenses 12,359,722
Less reduction to custodian expenses (13,848)
--------------
Net expenses 12,345,874
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 6,492,424
- --------------------------------------------------------------------------------
NET REALIZED LOSS ON INVESTMENTS (79,810)
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,412,614
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 | CENTENNIAL TAX EXEMPT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 2004 2003
- -----------------------------------------------------------------------------------------------------
OPERATIONS
- -----------------------------------------------------------------------------------------------------
Net investment income $ 6,492,424 $ 12,882,236
- -----------------------------------------------------------------------------------------------------
Net realized gain (loss) (79,810) 32,171
--------------------------------------
Net increase in net assets resulting from operations 6,412,614 12,914,407
- -----------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------------------
Dividends from net investment income (6,492,424) (12,882,236)
- -----------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions (98,384,454) 53,057,495
- -----------------------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------------------
Total increase (decrease) (98,464,264) 53,089,666
- -----------------------------------------------------------------------------------------------------
Beginning of period 1,876,590,630 1,823,500,964
--------------------------------------
End of period $1,778,126,366 $1,876,590,630
======================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | CENTENNIAL TAX EXEMPT TRUST
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------
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 -- 1 .01 .01 .03 .03
Dividends and/or distributions to shareholders -- 1 (.01) (.01) (.03) (.03)
- ------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====================================================
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN 2 0.35% 0.69% 1.17% 3.26% 3.01%
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $1,778 $1,877 $1,824 $1,822 $1,692
- ------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,851 $1,882 $1,904 $1,779 $1,737
- ------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.35% 0.68% 1.16% 3.21% 2.94%
Total expenses 0.67% 0.66% 0.69% 0.70% 0.72%
Expenses after payments and waivers
and reduction to custodian expenses N/A 4 N/A 4 N/A 4 0.69% N/A 4
<FN>
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 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%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | CENTENNIAL TAX EXEMPT TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Centennial Tax Exempt Trust (the Trust) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Trust's investment objective is to seek the maximum short-term interest
income exempt from federal income taxes that is consistent with low capital
risk and the maintenance of liquidity. 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.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The net asset value of shares of the Trust is normally
determined twice each day, at 12:00 Noon Eastern time and at 4:00 P.M. Eastern
time on each day The New York Stock Exchange (the Exchange) is open for
trading. Portfolio securities are valued on the basis of amortized cost, which
approximates market value.
- --------------------------------------------------------------------------------
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 LOSS
INVESTMENT INCOME LONG-TERM GAIN CARRYFORWARD 1,2,3
--------------------------------------------------------
$307,724 $-- $101,818
1. As of June 30, 2004, the Trust had $101,818 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of June 30, 2004, details
of the capital loss carryforwards were as follows:
EXPIRING
----------------------
2008 $ 22,008
2012 79,810
--------
Total $101,818
========
2. During the fiscal year ended June 30, 2004, the Trust did not utilize any
capital loss carryforward.
3. During the fiscal year ended June 30, 2003, the Trust utilized $32,171 of
capital loss carryforward to offset capital gains realized in that fiscal year.
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.
19 | CENTENNIAL TAX EXEMPT TRUST
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The tax character of distributions paid during the years ended June 30, 2004
and June 30, 2003 were as follows:
YEAR ENDED YEAR ENDED
JUNE 30, 2004 JUNE 30, 2003
-------------------------------------------------------
Distributions paid from:
Exempt-interest dividends $6,492,424 $12,882,236
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Board of Trustees has adopted a deferred
compensation plan for independent trustees that enables trustees to elect to
defer receipt of all or a portion of the annual compensation they are entitled
to receive from the Trust. For purposes of determining the amount owed to the
Trustee under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Trust or in other Oppenheimer funds
selected by the Trustee. The Trust does purchase shares of the funds selected
for deferral by the Trustee in amounts equal to his or her deemed investment,
resulting in a Trust asset equal to the deferred compensation liability. Such
assets are included as a component of "Other" within the asset section of the
Statement of Assets and Liabilities. Deferral of trustees' fees under the plan
will not affect the net assets of the Trust, and will not materially affect the
Trust's assets, liabilities or net investment income per share. Amounts will be
deferred until distributed in accordance to the Plan.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENT. The reduction of custodian fees, if applicable,
represents earnings on cash balances maintained by the Trust.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with U.S.
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.
20 | CENTENNIAL TAX EXEMPT TRUST
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Trust has authorized an unlimited number of no par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
YEAR ENDED JUNE 30, 2004 YEAR ENDED JUNE 30, 2003
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------
Sold 5,127,413,724 $ 5,127,413,724 4,883,642,642 $ 4,883,642,642
Dividends and/or
distributions reinvested 6,338,791 6,338,791 12,855,713 12,855,713
Redeemed (5,232,136,969) (5,232,136,969) (4,843,440,860) (4,843,440,860)
------------------------------------------------------------------------
Net increase (decrease) (98,384,454) $ (98,384,454) 53,057,495 $ 53,057,495
========================================================================
- --------------------------------------------------------------------------------
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 Trust's net assets,
0.475% of the next $250 million, 0.45% of the next $250 million, 0.425% of the
next $250 million, 0.40% of the next $250 million, 0.375% of the next $250
million, 0.35% of the next $500 million and 0.325% of net assets in excess of
$2 billion.
- --------------------------------------------------------------------------------
ADMINISTRATION SERVICES. The Trust pays the Manager a fee of $1,500 per year
for preparing and filing the Trust's tax returns.
- --------------------------------------------------------------------------------
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 per account fee. For the year ended June 30,
2004, the Trust paid $547,773 to SSI for services to the Trust.
- --------------------------------------------------------------------------------
SERVICE PLAN (12B-1) FEES. The Trust has adopted a service plan. It reimburses
Centennial Asset Management Corporation, the Distributor, for a portion of its
costs incurred for services provided to accounts that hold shares of the Trust.
Reimbursement is made quarterly, or monthly depending on asset size, at an
annual rate of up to 0.20% of the average annual net assets of the Trust. The
Distributor currently uses all of those fees to pay dealers, brokers, banks and
other financial institutions quarterly for providing personal services and
maintenance of accounts of their customers that hold shares of the Trust. Fees
incurred by the Trust under the Plan are detailed in the Statement of
Operations.
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. Under the investment advisory agreement, when
the value of the Trust's net assets is less than $1.5 billion, the annual fee
payable to the Manager shall be reduced by $100,000 based on average net assets
computed daily and paid monthly at the annual rates, however, the annual fee
cannot be less than $0.
SSI has voluntarily agreed to limit transfer and shareholder servicing agent
fees to 0.35% of average annual net assets of the Trust. This undertaking may
be amended or withdrawn at any time.
21 | CENTENNIAL TAX EXEMPT TRUST
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF CENTENNIAL TAX EXEMPT TRUST:
We have audited the accompanying statement of assets and liabilities of
Centennial Tax Exempt Trust, including the statement of investments, as of June
30, 2004, 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 the periods indicated. 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 the standards of the Public
Company Accounting Oversight Board (United States). 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, 2004, 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 Tax Exempt Trust as of June 30, 2004, 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 the periods
indicated, in conformity with accounting principles generally accepted in the
United States of America.
DELOITTE & TOUCHE LLP
Denver, Colorado
August 13, 2004
22 | CENTENNIAL TAX EXEMPT TRUST
FEDERAL INCOME TAX INFORMATION UNAUDITED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2005, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Trust during
calendar year 2004. 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, 2004
are qualified dividend income or eligible for the corporate dividend-received
deduction.
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 Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is 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 Fund's Form N-PX
filing is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.525.7048, and (ii) on the SEC's website at www.sec.gov.
23 | CENTENNIAL TAX EXEMPT TRUST
TRUSTEES AND OFFICERS UNAUDITED
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD
TRUST, LENGTH OF SERVICE, AGE BY TRUSTEE; NUMBER OF PORTFOLIOS IN TRUST COMPLEX CURRENTLY OVERSEEN BY TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL,
TRUSTEES CO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, UNTIL HIS OR HER RESIGNA-
TION, RETIREMENT, DEATH OR REMOVAL.
WILLIAM L. ARMSTRONG, Chairman of the following private mortgage banking companies: Cherry Creek
Chairman of the Board Mortgage Company (since 1991), Centennial State Mortgage Company (since
(since 2003) and Trustee 1994), The El Paso Mortgage Company (since 1993), Transland Financial Services,
(since 2000) Inc. (since 1997); Chairman of the following private companies: Great Frontier
Age: 67 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), and International
Family Entertainment (television channel) (1992-1997), 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
38 portfolios in the OppenheimerFunds complex.
ROBERT G. AVIS, Formerly, Director and President of A.G. Edwards Capital, Inc. (General Partner
Trustee (since 1990) of private equity funds) (until February 2001); Chairman, President and Chief
Age: 73 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 38 portfolios in the
OppenheimerFunds complex.
GEORGE C. BOWEN, Formerly Assistant Secretary and a director (December 1991-April 1999) of
Trustee (since 1998) Centennial Asset Management Corporation; President, Treasurer and a director
Age: 67 (June 1989-April 1999) of Centennial Capital Corporation; Chief Executive Officer
and a director of MultiSource Services, Inc. (March 1996-April 1999). Until April
1999 Mr. Bowen held several positions in subsidiary or affiliated companies of the
Manager. Oversees 38 portfolios in the OppenheimerFunds complex.
EDWARD L. CAMERON, A member of The Life Guard of Mount Vernon, George Washington's home (since
Trustee (since 2000) June 2000). Formerly Director (March 2001-May 2002) of Genetic ID, Inc. and its
Age: 65 subsidiaries (a privately held biotech company); a partner (July 1974-June 1999)
with PricewaterhouseCoopers LLP (an accounting firm); and Chairman (July 1994-
June 1998) of Price Waterhouse LLP Global Investment Management Industry
Services Group. Oversees 38 portfolios in the OppenheimerFunds complex.
JON S. FOSSEL, Director (since February 1998) of Rocky Mountain Elk Foundation (a not-for-
Trustee (since 1990) profit foundation); a director (since 1997) of Putnam Lovell Finance (finance
Age: 62 company); a director (since June 2002) of UNUMProvident (an insurance com-
pany). Formerly a director (October 1999-October 2003) of P.R. Pharmaceuticals
(a privately held company); Chairman and a director (until October 1996) and
President and Chief Executive Officer (until October 1995) of the Manager;
President, Chief Executive Officer and a director (until October 1995) of
Oppenheimer Acquisition Corp., Shareholders Services Inc. and Shareholder
Financial Services, Inc. Oversees 38 portfolios in the OppenheimerFunds complex.
24 | CENTENNIAL TAX EXEMPT TRUST
SAM FREEDMAN, Director of Colorado Uplift (a non-profit charity) (since September 1984).
Trustee (since 1996) Formerly (until October 1994) Mr. Freedman held several positions in subsidiary
Age: 63 or affiliated companies of the Manager. Oversees 38 portfolios in the
OppenheimerFunds complex.
BEVERLY L. HAMILTON, Trustee of Monterey International Studies (an educational organization) (since
Trustee (since 2002) February 2000); a director of The California Endowment (a philanthropic organi-
Age: 57 zation) (since April 2002) and of Community Hospital of Monterey Peninsula
(educational organization) (since February 2002); a director of America Funds
Emerging Markets Growth Fund (since October 1991) (an investment company);
an advisor to Credit Suisse First Boston's Sprout venture capital unit. Mrs.
Hamilton also is a member of the investment committees of the Rockefeller
Foundation and of the University of Michigan. Formerly, Trustee of MassMutual
Institutional Funds (open-end investment company) (1996-May 2004); a director
of MML Series Investment Fund (April 1989-May 2004) and MML Services
(April 1987-May 2004) (investment companies); member of the investment
committee (2000-2003) of Hartford Hospital; an advisor (2000-2003) to
Unilever (Holland)'s pension fund; and President (February 1991-April 2000)
of ARCO Investment Management Company. Oversees 37 portfolios in the
OppenheimerFunds complex.
ROBERT J. MALONE, Chairman, Chief Executive Officer and director of Steele Street State Bank (a
Trustee (since 2002) commercial banking entity) (since August 2003), Colorado UpLIFT (a non-profit
Age: 59 organization) (since 1986); a trustee (since 2000) of the Gallagher Family
Foundation (non-profit organization). Formerly a director of Jones Knowledge,
Inc. (a privately held company) (2001-July 2004), and U.S. Exploration, Inc. (oil
and gas exploration) (1997-February 2004), Chairman of U.S. Bank-Colorado
(a subsidiary of U.S. Bancorp and formerly Colorado National Bank,) (July 1996-
April 1999) and a director of Commercial Assets, Inc. (a REIT) (1993-2000).
Oversees 37 portfolios in the OppenheimerFunds complex.
F. WILLIAM MARSHALL, JR., Trustee of MassMutual Institutional Funds (since 1996) and MML Series
Trustee (since 2002) Investment Fund (since 1987) (both open-end investment companies) and the
Age: 62 Springfield Library and Museum Association (since 1995) (museums) and the
Community Music School of Springfield (music school) (since 1996); Trustee
(since 1987), Chairman of the Board (since 2003) and Chairman of the invest-
ment committee (since 1994) for the Worcester Polytech Institute (private
university); and President and Treasurer (since January 1999) of the SIS Fund
(a private not for profit charitable fund). 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) (commercial bank); and Executive Vice President (January 1999-July
1999) of Peoples Heritage Financial Group, Inc. (commercial bank). Oversees
38 portfolios in the OppenheimerFunds complex.
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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, RETIRE-
MENT, DEATH OR REMOVAL.
RICHARD GRABISH, Senior Vice President, Assistant Director of Sales and Marketing (since March
Trustee (since 2001) 1997), and Manager of Private Client Services (since June 1985) for A.G. Edwards
Age: 55 & 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.
25 | CENTENNIAL TAX EXEMPT TRUST
TRUSTEES AND OFFICERS UNAUDITED / CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS TWO WORLD FINANCIAL CENTER, 225
AND OFFICER LIBERTY STREET, NEW YORK, NY 10281-1008. MR. MURPHY SERVES FOR AN INDEFINITE TERM,
UNTIL HIS RESIGNATION, DEATH OR REMOVAL.
JOHN V. MURPHY, Chairman, Chief Executive Officer and director (since June 2001) and President
President (since 2001) (since September 2000) of the Manager; President and a director or trustee
and Trustee (since 2003) of other Oppenheimer funds; President and a director (since July 2001) of
Age: 55 Oppenheimer Acquisition Corp. (the Manager's parent holding company) and
of Oppenheimer Partnership Holdings, Inc. (a holding company subsidiary of the
Manager); a director (since November 2001) of OppenheimerFunds Distributor,
Inc. (a subsidiary of the Manager); Chairman and a director (since July 2001) of
Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer
agent subsidiaries of the Manager); President and a director (since July 2001)
of OppenheimerFunds Legacy Program (a charitable trust program established
by the Manager); a director of the following investment advisory subsidiaries
of the Manager: OFI Institutional Asset Management, Inc., Centennial Asset
Management Corporation, Trinity Investment Management Corporation and
Tremont Capital Management, Inc. (since November 2001), HarbourView Asset
Management Corporation and OFI Private Investments, Inc. (since July 2001);
President (since November 1, 2001) and a director (since July 2001) of
Oppenheimer Real Asset Management, Inc.; Executive Vice President (since
February 1997) of Massachusetts Mutual Life Insurance Company (the
Manager's parent company); a director (since June 1995) of DLB Acquisition
Corporation (a holding company that owns the shares of Babson Capital
Management LLC); a member of the Investment Company Institute's Board of
Governors (elected to serve from October 3, 2003 through September 30, 2006).
Formerly, Chief Operating Officer (September 2000-June 2001) of the Manager;
President and trustee (November 1999-November 2001) of MML Series
Investment Fund and MassMutual Institutional Funds (open-end 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 (a wholly-
owned subsidiary of Emerald Isle Bancorp). Oversees 73 portfolios as Trustee/
Director and 10 portfolios as Officer in the OppenheimerFunds complex.
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OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW IS AS FOLLOWS: FOR MR. ZACK, TWO WORLD
FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NY 10281-1008, FOR MR.
BONNELL, MR. WIXTED, AND MR. VANDEHEY, 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 BONNELL, Vice President (since May 2004) of OppenheimerFunds, Inc.; an officer of
Vice President (since 2004) 2 other portfolios in the OppenheimerFunds complex; formerly a portfolio
Age: 39 manager at Strong Financial Corp. (1999-2004).
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999) of the Manager;
Treasurer (since 1999) Treasurer of HarbourView Asset Management Corporation, Shareholder Financial
Age: 44 Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management
Corporation, and Oppenheimer Partnership Holdings, Inc. (since March 1999),
of OFI Private Investments, Inc. (since March 2000), of OppenheimerFunds Inter-
national Ltd. and OppenheimerFunds plc (since May 2000), of OFI Institutional
Asset Management, Inc. (since November 2000), and of OppenheimerFunds
Legacy Program (a Colorado non-profit corporation) (since June 2003); Treasurer
and Chief Financial Officer (since May 2000) of OFI Trust Company (a trust
26 | CENTENNIAL TAX EXEMPT TRUST
BRIAN W. WIXTED, company subsidiary of the Manager); Assistant Treasurer (since March 1999) of
Continued Oppenheimer Acquisition Corp. Formerly Assistant Treasurer of Centennial Asset
Management Corporation (March 1999-October 2003) and OppenheimerFunds
Legacy Program (April 2000-June 2003); Principal and Chief Operating Officer
(March 1995-March 1999) at Bankers Trust Company-Mutual Fund Services
Division. An officer of 83 portfolios in the OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since
Vice President and Secretary February 2002) of the Manager; General Counsel and a director (since November
(since 2001) 2001) of the Distributor; General Counsel (since November 2001) of Centennial
Age: 56 Asset Management Corporation; Senior Vice President and General Counsel
(since November 2001) of HarbourView Asset Management Corporation;
Secretary and General Counsel (since November 2001) of Oppenheimer
Acquisition Corp.; Assistant Secretary and a director (since October 1997) of
OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President
and a director (since November 2001) of Oppenheimer Partnership Holdings,
Inc.; a director (since November 2001) of Oppenheimer Real Asset Management,
Inc.; Senior Vice President, General Counsel and a director (since November 2001)
of Shareholder Financial Services, Inc., Shareholder Services, Inc., OFI Private
Investments, Inc. and OFI Trust Company; Vice President (since November 2001)
of OppenheimerFunds Legacy Program; Senior Vice President and General
Counsel (since November 2001) of OFI Institutional Asset Management, Inc.; a
director (since June 2003) of OppenheimerFunds (Asia) Limited. Formerly Senior
Vice President (May 1985-December 2003), Acting General Counsel (November
2001-February 2002) and Associate General Counsel (May 1981-October 2001)
of the Manager; Assistant Secretary of Shareholder Services, Inc. (May 1985-
November 2001), Shareholder Financial Services, Inc. (November 1989-November
2001); and OppenheimerFunds International Ltd. (October 1997-November
2001). An officer of 83 portfolios in the OppenheimerFunds complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer (since March 2004) of
Vice President (since 2004) the Manager; Vice President (since June 1983) of OppenheimerFunds
Age: 53 Distributor, Inc., Centennial Asset Management Corporation and Shareholder
Services, Inc. Formerly (until February 2004) Vice President and Director of
Internal Audit of OppenheimerFunds, Inc. An officer of 83 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.
27 | CENTENNIAL TAX EXEMPT TRUST
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the registrant has determined that Edward L.
Cameron, the Chairman of the Board's Audit Committee, and George C. Bowen, a
member of the Board's Audit Committee, possess the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as "audit
committee financial experts," and has designated Messrs. Cameron and Bowen as
the Audit Committee's financial experts. Messrs. Cameron and Bowen are
"independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) Audit Fees
The principal accountant for the audit of the registrant's annual
financial statements billed $26,000 in fiscal 2004 and $25,000 in
fiscal 2003.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $5,525 in fiscal 2004 and $45,744 in
fiscal 2003 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include, among others: due diligence related to
mergers and acquisitions, accounting consultations and audits in
connection with acquisitions, internal control reviews and
consultation concerning financial accounting and reporting
standards.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $0 in fiscal 2004 and $7,370 in fiscal
2003 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include, among others: tax compliance, tax
planning and tax advice. Tax compliance generally involves
preparation of original and amended tax returns, claims for a
refund and tax payment-planning services. Tax planning and tax
advice includes assistance with tax audits and appeals, tax advice
related to mergers and acquisitions and requests for rulings or
technical advice from taxing authorities.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $0 in fiscal 2004 and $3,500 in fiscal
2003 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant.
Such fees would include services provided to the registrant's
Board of Trustees with respect to the annual renewal of the
registrant's investment advisory agreement.
(e) (1) During its regularly scheduled periodic meetings, the
registrant's audit committee will pre-approve all audit,
audit-related, tax and other services to be provided by the
principal accountants of the registrant.
The audit committee has delegated pre-approval authority to its
Chairman for any subsequent new engagements that arise between
regularly scheduled meeting dates provided that any fees such
pre-approved are presented to the audit committee at its next
regularly scheduled meeting.
Pre-approval of non-audit services is waived provided that: 1) the
aggregate amount of all such services provided constitutes no more
than five percent of the total amount of fees paid by the
registrant to it principal accountant during the fiscal year in
which services are provided 2) such services were not recognized
by the registrant at the time of engagement as non-audit services
and 3) such services are promptly brought to the attention of the
audit committee of the registrant and approved prior to the
completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $5,525 in fiscal 2004 and $56,614 in
fiscal 2003 to the registrant and the registrant's investment
adviser or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
registrant related to non-audit fees. Those billings did not
include any prohibited non-audit services as defined by the
Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of trustees has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser, and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal account's independence. No such services
were rendered.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Board is responsible for approving nominees for election as
trustees. To assist in this task, the Board has designated the Audit Committee
as the nominating committee for the Board. It reviews and recommends nominees to
the Board. The Committee is comprised entirely of disinterested trustees as
defined in Section 2(a)(19) of the Investment Company Act of 1940.
The Audit Committee charter describes the responsibilities of the Committee in
nominating candidates for election as independent Trustees of the Registrant.
The Registrant's Board has adopted a written charter for the Committee. A
current copy of the Audit Committee charter is available to shareholders on the
OppenheimerFunds website at www.oppenheimerfunds.com.
Under the current policy, if the Board determines that a vacancy exists or is
likely to exist on the Board, the Audit Committee of the Board will consider
candidates for Board membership including recommended by Registrant
shareholders. The Audit Committee will consider nominees recommended by
independent Board members or recommended by any other Board members including
Board members affiliated with the Registrant's investment advisors. The
Committee may, upon Board approval, retain an executive search firm to assist in
screening potential candidates. Upon Board approval, the Audit Committee may
also use the services of legal, financial, or other external counsel that it
deems necessary or desirable in the screening process. Shareholders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., 6803 South Tucson Way, Centennial, CO
80112, to the attention of the Board of Trustees of the named Registrant, c/o
the Secretary of the Registrant.
The Committee's process for identifying and evaluating nominees for trustees
includes a number of factors. In screening candidates for board membership,
whether the candidate is suggested by Board members, shareholders or others, the
Committee considers the candidate's professional experience, soundness of
judgment, integrity, ability to make independent, analytical inquiries,
collegiality, willingness and ability to devote the time required to perform
Board activities adequately, ability to represent the interests of all
shareholders of the Registrant, and diversity relative to the board's
composition. Candidates are expected to provide a mix of attributes, experience,
perspective and skills necessary to effectively advance the interests of
shareholders.
ITEM 10. 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, 2004,
registrant's principal executive officer and principal financial
officer found registrant's disclosure controls and procedures to
provide reasonable assurances 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 over financial reporting that occurred during the
registrant's last fiscal half-year that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)