UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05871
Centennial California Tax Exempt Trust
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
(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, 2004 - December 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
FUND EXPENSES
- --------------------------------------------------------------------------------
FUND EXPENSES. As a shareholder of the Trust, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Trust expenses. These examples are intended to help you understand
your ongoing costs (in dollars) of investing in the Trust and to compare these
costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended December 31, 2004.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line, together with the amount you invested, to estimate the expense that you
paid over the period. Simply divide your account value by $1,000.00 (for
example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply
the result by the number in the "actual" line under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Trust's actual expense ratio, and an assumed rate of
return of 5% per year before expenses, which is not the Trust's actual return.
The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use
this information to compare the ongoing costs of investing in the Trust and
other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads). Therefore, the "hypothetical"
lines of the table are useful in comparing ongoing costs only, and will not help
you determine the relative total costs of owning different
5 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
FUND EXPENSES
- --------------------------------------------------------------------------------
funds. In addition, if these transactional costs were included, your costs would
have been higher.
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(7/1/04) (12/31/04) DECEMBER 31, 2004
- --------------------------------------------------------------------------------
Actual $ 1,000.00 $ 1,003.70 $ 3.87
- --------------------------------------------------------------------------------
Hypothetical 1,000.00 1,021.27 3.91
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Trust's annualized expense ratio, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period). The annualized expense ratio based on the 6-month period
ended December 31, 2004 is as follows:
EXPENSE RATIO
- -------------
0.77%
- --------------------------------------------------------------------------------
6 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
STATEMENT OF INVESTMENTS December 31, 2004 / Unaudited
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------
SHORT-TERM TAX-EXEMPT OBLIGATIONS--98.4%
- ----------------------------------------------------------------------------------------------------------
CALIFORNIA--97.6%
ABAG FAU for NonProfit Corps., CA COP, Episcopal Homes Foundation,
Series 2000, 2.03% 1 $ 1,600,000 $ 1,600,000
- ----------------------------------------------------------------------------------------------------------
CA Department of Water Resources Power Supply RB, Series C-9, 1.95% 1 550,000 550,000
- ----------------------------------------------------------------------------------------------------------
CA Department of Water Resources Power Supply RRB, Central Valley
Project, MERLOTS Series 2003 B32, 2.03% 1 1,990,000 1,990,000
- ----------------------------------------------------------------------------------------------------------
CA Economic Recovery Bonds, Series 2004 C-16, 2% 1 1,100,000 1,100,000
- ----------------------------------------------------------------------------------------------------------
CA EDFAU IDV RB, Applied Aerospace Structure Corp., Series 1998, 2.05% 1 2,600,000 2,600,000
- ----------------------------------------------------------------------------------------------------------
CA EDLFA RB, University of San Francisco, Series 2003, 1.97% 1 3,000,000 3,000,000
- ----------------------------------------------------------------------------------------------------------
CA HFFAU RB, Kaiser Permanente, Series A, MSTFC Series 1998 26, 2.01% 1,3 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------------------------
CA Infrastructure & ED Bank RB, Salvation Army Western Territory,
Series 2001, 2.10%, 8/9/05 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------------------------
CA Infrastructure & ED Bank RRB, Independent System Operator Corp.
Project, Series 2000C, 1.96% 1 400,000 400,000
- ----------------------------------------------------------------------------------------------------------
CA MSR PPA RRB, San Juan Project, Sub. Lien, Series E, 1.95% 1 400,000 400,000
- ----------------------------------------------------------------------------------------------------------
CA PCFAU RRB, Pacific Gas & Electric Co., 2.20% 1 3,900,000 3,900,000
- ----------------------------------------------------------------------------------------------------------
CA SCDAU MH RB, Crossings at Madera, Series NN, 2.15%, 6/15/05 2 4,750,000 4,750,000
- ----------------------------------------------------------------------------------------------------------
CA SCDAU MH RB, Las Flores Apts. Project, Series 2004 JJ, 2.39%, 2/28/05 2 10,000,000 10,000,000
- ----------------------------------------------------------------------------------------------------------
CA SCDAU RB, IDV-Fibrebond, Inc., 2.45% 1 385,000 385,000
- ----------------------------------------------------------------------------------------------------------
CA SCDAU RB, Trust Receipts, Series F15 D, 2.15% 1,3 4,000,000 4,000,000
- ----------------------------------------------------------------------------------------------------------
Hayward, CA MH RB, Lord Tennyson Apts. Project, Series 2004A,
2.39%, 1/31/05 2 8,000,000 8,000,000
- ----------------------------------------------------------------------------------------------------------
Long Beach, CA USD COP, Capital Improvement Refinancing Project,
Series 2001, 1.99% 1 2,400,000 2,400,000
- ----------------------------------------------------------------------------------------------------------
Los Angeles Cnty., CA MH Mtg. RB, Valencia Housing Project,
Series C, 2.05% 1 2,225,000 2,225,000
- ----------------------------------------------------------------------------------------------------------
Los Angeles, CA Community RA RB, Skyline at Southpark Apts.,
Series 1985, 2.03% 1 1,500,000 1,500,000
- ----------------------------------------------------------------------------------------------------------
Los Angeles, CA USD GOB, AAMC Series 1999-7, 2.02% 1,3 6,000,000 6,000,000
- ----------------------------------------------------------------------------------------------------------
Los Angeles, CA Wastewater System GOB, AAMC Series 1998-25, 2.02% 1,3 2,000,000 2,000,000
- ----------------------------------------------------------------------------------------------------------
Los Angeles, CA Wastewater System RRB, Series B, 2.115%, 12/15/05 2 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------------------------
Mt. Diablo, CA USD GOB, AAMC Series 2004-36, 2.02% 1,3 4,590,000 4,590,000
- ----------------------------------------------------------------------------------------------------------
Oakland, CA Joint Powers FAU Lease RB, Series 1998, 1.95% 1 2,900,000 2,900,000
- ----------------------------------------------------------------------------------------------------------
Oakland/Alameda Cnty., CA Coliseum Authority Lease RB, Coliseum
Project, Series C-2, 1.95% 1 3,600,000 3,600,000
- ----------------------------------------------------------------------------------------------------------
Oceanside, CA MH RRB, Lakeridge Apts. Project, 1.98% 1 3,300,000 3,300,000
- ----------------------------------------------------------------------------------------------------------
Orange Cnty., CA Transportation Authority Toll Road RB, Express Lanes,
Series B-2, 1.95% 1 1,250,000 1,250,000
- ----------------------------------------------------------------------------------------------------------
San Bernardino Cnty., CA MH HAU RRB, Montclair Heritage-A, 1.95% 1 4,620,000 4,620,000
- ----------------------------------------------------------------------------------------------------------
San Bernardino Cnty., CA MH HAU RRB, Somerset Apts.-A, 1.98% 1 1,395,000 1,395,000
7 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
San Diego, CA Sewer RB, SGMSTR Series SG 14, 2.01% 1,3 $ 3,955,000 $ 3,955,000
- ----------------------------------------------------------------------------------------------------------
San Diego, CA Water Utility Fund Net System GOB, AAMC Series
1998-10, 2.02% 1,3 1,650,000 1,650,000
- ----------------------------------------------------------------------------------------------------------
San Francisco, CA City & Cnty. PUC Clean Water RRB, MERLOTS
Series 2003 B20, 2.03% 1,3 6,990,000 6,990,000
- ----------------------------------------------------------------------------------------------------------
Santa Clara Cnty., CA El Camino Hospital FAU RB, 1.98% 1 5,800,000 5,800,000
- ----------------------------------------------------------------------------------------------------------
Santa Clara Cnty., CA FAU Lease RB, Housing Authority Office Project,
Series 2004A, 2.02% 1 3,550,000 3,550,000
- ----------------------------------------------------------------------------------------------------------
Santa Margarita/Dana Point, CA RB, Puttable Floating Option Tax
Exempt Receipts, Series PT-2348, 2.01% 1,3 3,055,000 3,055,000
- ----------------------------------------------------------------------------------------------------------
Stockton, CA CFD No. 99-02 SPTX Bonds, Arch Road East, 2.01% 1 2,605,000 2,605,000
- ----------------------------------------------------------------------------------------------------------
University of California Regents RB, 1.84%, 2/16/05 7,500,000 7,500,000
- ----------------------------------------------------------------------------------------------------------
Vallejo, CA COP, Golf Course Facilities Financing Project,
Series 2001, 2.06% 1 10,200,000 10,200,000
------------
138,760,000
- ----------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--0.8%
PR CMWLTH Public Improvement GOUN, Puttable Tax Exempt
Receipts, Series 491, 2.03% 1,3 1,200,000 1,200,000
- ----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $139,960,000) 98.4% 139,960,000
- ----------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.6 2,263,426
---------------------------
NET ASSETS 100.0% $142,223,426
===========================
8 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
FOOTNOTES TO STATEMENT OF INVESTMENTS
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
AAMC ABN AMRO Munitops Certificates
ABAG Association of Bay Area Governments
CFD Community Facilities District
CMWLTH Commonwealth
COP Certificates of Participation
ED Economic Development
EDFAU Economic Development Finance Authority
EDLFA Educational Facilities Authority
FAU Finance Authority
GOB General Obligation Bonds
GOUN General Obligation Unlimited Nts.
HAU Housing Authority
HFFAU Health Facilities Finance Authority
IDV Industrial Development
MERLOTS Municipal Exempt Receipts Liquidity Option Tender
MH Multifamily Housing
MSR Modesta Irrigation District of the City of Santa Clara and the City of
Redding
MSTFC Morgan Stanley & Co., Inc. Trust Floater Certificates
PCFAU Pollution Control Finance Authority
PPA Public Power Agency
PUC Public Utilities Commission
RA Redevelopment Agency/Authority
RB Revenue Bonds
RRB Revenue Refunding Bonds
SCDAU Statewide Communities Development Authority
SGMSTR Societe Generale, NY Branch Municipal Security Trust Receipts
SPTX Special Tax
USD Unified School District
1. Floating or variable rate obligation maturing in more than one year. The
interest rate, which is based on specific, or an index of, market interest
rates, is subject to change periodically and is the effective rate on December
31, 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 $4,590,000 or 3.23% of the Trust's net
assets as of December 31, 2004.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
9 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
December 31, 2004
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $139,960,000)--
see accompanying statement of investments $ 139,960,000
- --------------------------------------------------------------------------------
Cash 247,651
- --------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 2,058,954
Interest 329,073
Other 9,637
--------------
Total assets 142,605,315
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 254,326
Distribution and service plan fees 76,450
Dividends 15,978
Shareholder communications 11,060
Trustees' compensation 4,080
Transfer and shareholder servicing agent fees 4,028
Other 15,967
--------------
Total liabilities 381,889
- --------------------------------------------------------------------------------
NET ASSETS $ 142,223,426
==============
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------
Paid-in capital $ 142,231,688
- --------------------------------------------------------------------------------
Accumulated net realized loss on investments (8,262)
--------------
NET ASSETS--applicable to 142,212,965 shares of
beneficial interest outstanding $ 142,223,426
==============
- --------------------------------------------------------------------------------
NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND
OFFERING PRICE PER SHARE $ 1.00
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
10 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended December 31, 2004
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $ 1,127,459
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 380,213
- --------------------------------------------------------------------------------
Service plan fees 151,492
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 23,261
- --------------------------------------------------------------------------------
Shareholder communications 7,892
- --------------------------------------------------------------------------------
Trustees' compensation 2,844
- --------------------------------------------------------------------------------
Custodian fees and expenses 2,019
- --------------------------------------------------------------------------------
Other 19,416
--------------
Total expenses 587,137
Less reduction to custodian expenses (887)
--------------
Net expenses 586,250
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 541,209
- --------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS 4,782
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 545,991
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR
DECEMBER 31, ENDED
2004 JUNE 30,
(UNAUDITED) 2004
- --------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------
Net investment income $ 541,209 $ 309,706
- --------------------------------------------------------------------------------------
Net realized gain (loss) 4,782 (13,044)
-------------------------------
Net increase in net assets resulting from operations 545,991 296,662
- --------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------
Dividends from net investment income (541,209) (309,706)
- --------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- --------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions 2,326,803 (12,950,996)
- --------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------
Total increase (decrease) 2,331,585 (12,964,040)
- --------------------------------------------------------------------------------------
Beginning of period 139,891,841 152,855,881
-------------------------------
End of period $ 142,223,426 $ 139,891,841
===============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
12 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR
DECEMBER 31, ENDED
2004 JUNE 30,
(UNAUDITED) 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 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------------
Income from investment operations--net
investment income and net realized gain -- 1,2 -- 2 .01 .01 .03 .03
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- 2 -- 2 (.01) (.01) (.03) (.03)
Distributions from net realized gain -- -- -- -- 2 -- --
--------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- 2 -- 2 (.01) (.01) (.03) (.03)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
================================================================================
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 3 0.37% 0.21% 0.52% 0.89% 2.74% 2.63%
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 142,223 $139,892 $152,856 $154,653 $157,316 $162,261
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 151,259 $149,559 $156,348 $164,278 $166,654 $160,351
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.71% 0.21% 0.52% 0.89% 2.72% 2.57%
Total expenses 0.77% 0.78% 0.76% 0.77% 0.84% 0.83%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5,6 N/A 5,6 N/A 5,6 0.81% 0.81%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
3. 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.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary reimbursement of expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Centennial California Tax Exempt Trust (the Trust) is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The Trust's investment objective is to seek the
maximum current interest income exempt from federal and California personal
income taxes for individual investors as is consistent with the preservation of
capital. The Trust's investment advisor is Centennial Asset Management
Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI).
The following is a summary of significant accounting policies consistently
followed by the Trust.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. There are certain risks arising from geographic
concentration in any state. Certain revenue or tax related events in a state may
impair the ability of certain issuers of municipal securities to pay principal
and interest on their obligations.
- --------------------------------------------------------------------------------
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, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
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.
As of December 31, 2004, the Trust had available for federal income tax
purposes an estimated capital loss carryforward of $8,262 expiring by 2013. This
estimated capital loss carryforward represents carryforward as of the end of the
last fiscal year, increased for losses deferred under tax accounting rules to
the current fiscal year and is increased or decreased by capital losses or gains
realized in the first six months of the current fiscal year. As of December 31,
2004, it is estimated that the Trust will utilize $4,782 of capital loss
carryforward to offset realized capital gains. During the fiscal year ended June
30, 2004, the Trust did not utilize any capital loss carryforward.
As of June 30, 2004, the Trust had available for federal income tax purposes an
unused capital loss carryforward as follows:
EXPIRING
-------------------
2012 $13,044
14 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
- --------------------------------------------------------------------------------
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 purchases 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 but may be paid at other times to maintain the net asset value per
share at $1.00.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Trust on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Trust pays
interest to its custodian on such cash overdrafts at a rate equal to the Federal
Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item, if
applicable, represents earnings on cash balances maintained by the Trust during
the period. Such interest expense and other custodian fees may be paid with
these earnings.
- --------------------------------------------------------------------------------
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.
15 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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:
SIX MONTHS ENDED DECEMBER 31, 2004 YEAR ENDED JUNE 30, 2004
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------
Sold 209,518,747 $ 209,518,747 416,638,639 $ 416,638,639
Dividends and/or
distributions reinvested 534,136 534,136 300,412 300,412
Redeemed (207,726,080) (207,726,080) (429,890,047) (429,890,047)
----------------------------------------------------------------
Net increase (decrease) 2,326,803 $ 2,326,803 (12,950,996) $ (12,950,996)
================================================================
- --------------------------------------------------------------------------------
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Trust which provides for a fee at an
annual rate of 0.50% of the first $250 million of the net assets, 0.475% of the
next $250 million of net assets, 0.45% of the next $250 million of net assets,
0.425% of the next $250 million of net assets and 0.40% of the net assets in
excess of $1 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 six months ended
December 31, 2004, the Trust paid $22,845 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. The Manager has voluntarily undertaken to
assume certain expenses of the Trust in any fiscal year that exceed 0.80% of the
Trust's average annual net assets. Effective July 7, 2003, the Manager has
voluntarily undertaken to waive receipt of its management fees to the extent
necessary so that the Trust may seek to maintain a positive yield. The Manager
reserves the right to amend or terminate either voluntary expense assumption at
any time.
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.
16 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Trust has adopted Portfolio Proxy Voting Policies and Procedures under which
the Trust votes proxies relating to securities ("portfolio proxies") held by the
Trust. A description of the Trust's Portfolio Proxy Voting Policies and
Procedures is available (i) without charge, upon request, by calling the Trust
toll-free at 1.800.525.7048, (ii) on the Trust's website at
www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In
addition, the Trust 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 Trust's Form N-PX filing is available (i) without charge, upon
request, by calling the Trust toll-free at 1.800.525.7048, and (ii) on the SEC's
website at www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Trust's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
17 | CENTENNIAL CALIFORNIA TAX EXEMPT TRUST
ITEM 2. CODE OF ETHICS
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
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 registrant's Board of Trustees has established a Governance Committee,
one function of which is to create and oversee the process by which shareholders
can submit nominees for positions on the Board. The Governance Committee has not
yet adopted a charter, but anticipates that it will do so by the end of this
calendar year. The Committee has temporarily adopted the process previously
adopted by the Audit Committee regarding shareholder submission of nominees for
board positions. Shareholders may submit names of individuals, accompanied by
complete and properly supported resumes, for the Governance Committee's
consideration by mailing such information to the Committee in care of the Fund.
The Committee may consider such persons at such time as it meets to consider
possible nominees. The Committee, however, reserves solo discretion to determine
the candidates for trustees and independent trustees to recommend to the Board
and/or shareholders and may identify candidates other than those submitted by
Shareholders. The Committee may, but need not, consider the advice and
recommendation of the Manager and its affiliates in selecting nominees. The full
Board elects new trustees except for those instances when a shareholder vote is
required.
Shareholders who desire to communicate with the Board should address
correspondence to the Board of Trustees of the registrant, or to an individual
Trustee c/o the Secretary of the Fund at 6803 South Tucson Way, Centennial,
Colorado 80112 and may submit their correspondence electronically at
WWW.OPPENHEIMERFUNDS.COM under the caption "contact us." If your correspondence
is intended for a particular Trustee, please indicate the name of the Trustee
for whom it is intended. The sender should indicate in the address whether it is
intended for the entire board, the Independent Trustees as group, or to an
individual Trustee. The Governance Committee will consider if a different
process should be recommended to the Board.
ITEM 10. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-3(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-3(c)) as of December 31, 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 changes in registrant's internal controls over
financial reporting that occurred during the registrant's last
fiscal quarter 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)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)