<PAGE> 1
OPPENHEIMER MUNICIPAL BOND FUND
Semiannual Report January 31, 1997
[PHOTO]
"We want
investment
income
that won't add
to our taxes."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO NEED A SOURCE OF INCOME THAT'S EXEMPT FROM CURRENT
FEDERAL TAXES.
YIELD
STANDARDIZED YIELDS
For the 30 Days Ended 1/31/97:(4)
Class A
4.88%
Class B
4.34%
Class C
4.33%
BEAT THE AVERAGE
Total Return for the 1-Year Period
Ended 12/31/96:
Oppenheimer Municipal Bond
Fund (at net asset value)(2)
5.17%
Lipper General Municipal Debt
Fund Average for 225 Funds for
the 1-Year Period Ended 12/31/96(5)
3.30%
HOW YOUR FUND IS MANAGED
Oppenheimer Municipal Bond Fund invests in a diversified portfolio of municipal
bonds. As a Fund shareholder, you receive income that is free from federal
income taxes(1). Your dividends don't increase your taxable income the way
taxable investments do, so you can keep more of what you earn.
PERFORMANCE
Cumulative total returns for the six months ended 1/31/97 were 4.36% for Class
A shares, 3.87% for Class B shares and 3.86% for Class C shares, without
deducting sales charges(2).
Your Fund's average annual total returns for Class A shares for the 1-,
5- and 10-year periods ended 12/31/96 were 0.18%, 5.81% and 6.61%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 12/31/96 and since inception on 3/16/93 were (0.59)% and 4.17%,
respectively. For Class C shares, average annual total returns for the 1-year
period ended 12/31/96 and since inception on 8/29/95 were 3.36% and 7.55%,
respectively(3).
OUTLOOK
"We remain optimistic and, given current market conditions, we believe that
municipal bond investments offer a good value."
Jerry Webman, Portfolio Manager
January 31, 1997
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. For more complete
information, please review the prospectus carefully before you invest. As of
October 10, 1996, the Fund's name has been changed from "Oppenheimer Tax-Free
Bond Fund."
1. A portion of the distributions paid by the Fund may be subject to federal
and state income taxes. For investors subject to federal and/or state
alternative minimum tax (AMT), the Fund's distributions may increase this tax.
Capital gains distributions, if any, are taxed as capital gains.
2. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
3. Class A returns include the current maximum initial sales charge of 4.75%.
Class B returns include the applicable contingent deferred sales charge of 5%
(1-year) and 3% (since inception). Class C returns include the 1% contingent
deferred sales charge for the 1-year result. An explanation of the different
performance calculations is in the Fund's prospectus. Class B and Class C
shares are subject to an annual 0.75% asset-based sales charge.
4. Standardized yield is based on net investment income calculated for the
30-day period ended 1/31/97. Falling net asset values will tend to artificially
raise yields.
5. Source: Lipper Analytical Services, 12/31/96. The Lipper average is shown
for comparative purposes only. Oppenheimer Municipal Bond Fund is characterized
by Lipper as a general municipal debt fund. Lipper performance is based on
total return and does not take sales charges into account.
2 Oppenheimer Municipal Bond Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Municipal Bond Fund
DEAR SHAREHOLDER,
It's true that the stock market of 1996 received virtually all the recognition
this past year. While excitement during the second half of the year revolved
around equities, the bond market was experiencing a quiet, yet solid, rebound.
Some analysts anticipated that moderated economic growth and low inflation
would help stabilize interest rates, and even lower them--all factors that
would be beneficial for the bond market. During the second half of 1996, that's
exactly how events unfolded. In October, when the economy was characterized by
a firm dollar, low inflation and slow growth, the Federal Reserve responded by
maintaining its hands-off approach to interest rates. It appeared that earlier
concerns about rapid inflationary growth had been overblown, and interest rates
declined soon afterward. With continued, sustainable, non-inflationary growth
of around 2% to 2.5%, and no interest rate raises expected from the Federal
Reserve, the economy seemed to have settled into a comfortable pattern of
neither too little nor too much growth.
Moving ahead to 1997, President Clinton has pledged to focus on balancing
the federal budget during his second term. In fact, politicians from every camp
are discussing their intent to reduce the budget, perhaps through a balanced
budget amendment. Such a move should prove beneficial for the municipal bond
market. The other good news for municipal bond investors is that President
Clinton has no plans of initiating a flat tax, a proposal that would have
eliminated the tax advantages of municipal bonds.
On the other hand, investors may have experienced some volatility in the
income stream from municipal bond funds. This is primarily because the
availability of quality bonds paying high dividends has decreased over the past
few years, making it more difficult to find value bonds. We believe that over
the long term and on a tax-adjusted basis, our funds will continue to offer
value with the potential for higher total return.
When you consider the combination of these developments last year--a
sustained economic growth pattern, the assurance of a balanced federal budget
and the dissipated threat of a flat tax--the tax advantages of municipal bond
investing become much more attractive.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
February 24, 1997
3 Oppenheimer Municipal Bond Fund
<PAGE> 4
Q + A
[PHOTO]
Q WHAT
AREAS ARE
YOU CURRENTLY
TARGETING?
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED?
Our performance has been relatively strong. We attribute the Fund's success to
our strategy of mixing high-yield municipal bonds with U.S. Treasury and
municipal futures contracts that act as a hedge against rising interest rates.
As a result of this mixture, Oppenheimer Municipal Bond Fund finished 6th out
of 225 general municipal debt funds ranked by Lipper Analytical Services for
the 1-year period ended 12/31/96(1). This ranking places the Fund in the first
quartile of its peer group.
[PHOTO]
WHAT INVESTMENT STRATEGIES MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
Our concentration on high coupon bonds worked well for us throughout the period
and provided the Fund with a steady income stream. In the second quarter of
this year, we bought some attractive higher-yielding municipal bonds, in
hospitals and basic industrial companies, that enabled the Fund to capture some
unusually high income. When the market began to rally in the second half of
1996, these bonds were in demand, and we were able to benefit. Because
higher-yielding bonds often have a lower rating, they require careful analysis
of the risk of default.
In the second quarter, we bought some lower-rated and zero coupon bonds
that were out of favor. We reduced their volatility risk by hedging them with
Treasury futures contracts. When the bond market rallied in the fall, we were
able to reduce the hedges and these purchases worked out very well for us.
We were also able to benefit from securities that had less desirable
credit but have improved over the period. For example, the credit rating of our
airline holdings improved
1. Source: Lipper Analytical Services, 12/31/96. Oppenheimer Municipal Bond
Fund was ranked 36 out of 103 funds in its category for the 5-year period ended
12/31/96 and 31 out of 64 funds for the 10-year period ended 12/31/96.
Oppenheimer Municipal Bond Fund is characterized by Lipper as a general
municipal debt fund. Lipper performance is based on total return and does not
take sales charges into account.
4 Oppenheimer Municipal Bond Fund
<PAGE> 5
FACING PAGE
Top left: Jerry Webman,
Portfolio Manager
Top right: Michael Maciolek,
Securities Analyst
Bottom: Len Darling, Executive
VP, Director of Fixed Income
Investments
THIS PAGE
Top: Robert Patterson, Member
of Tax-Exempt Fixed Income
Investments Team
Bottom: Caryn Halbrecht, Member
of Tax-Exempt Fixed Income Invest-
ments Team, with Donna Compert,
Municipal Securities Trader
A We are targeting
California development
districts and infrastructure
financing
projects.
because general perception of the industry is better and airline travel has
increased. And because we were overweighted in this area, the Fund has
benefited. Finally, as the economy has become stronger, some of the basic
industry positions, such as paper and steel companies, have done well for
us(2).
DID ANY INVESTMENTS PERFORM POORLY?
In the last six months, as interest rates have fallen, prerefunded bonds have
not performed as well as discount and zero coupon bonds. Fortunately, we
correctly anticipated the fourth quarter decline in interest rates and offset
our prerefunded bond exposure with long positions in Treasury futures that gave
the portfolio a boost when the market rallied.
[PHOTO]
WHAT AREAS OF THE MARKET ARE YOU CURRENTLY TARGETING?
We believe California development districts and infrastructure financing
projects will offer some interesting opportunities during 1997. We plan to
seek those opportunities in economically strong parts of the state where the
business growth and demographic growth seem appropriate. We're looking at the
Southern California area, in Orange County, where despite political problems a
few years ago, the economics continue to appear very favorable. We're also
looking at some correctional facilities in California and New York, as well as
some airports in Texas that are tied to our airline holdings.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We continue to maintain a positive outlook. Currently, long-term interest rates
are attractive since there doesn't appear to be any real inflation on the
horizon, and we are continuing to see steady, moderate economic growth in the
United States and weak growth abroad. Also, we will remain alert to significant
changes in those favorable conditions. In the meantime, we remain optimistic
and, given current market conditions, we believe that municipal bond
investments offer a good value.
[PHOTO]
2. The Fund's portfolio is subject to change.
5 Oppenheimer Municipal Bond Fund
<PAGE> 6
STATEMENT OF INVESTMENTS January 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
================================================================================================================================
MUNICIPAL BONDS AND NOTES--99.3%
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ALABAMA--1.2%
Huntsville, AL Health Care Authority Facilities RB,
Series B, MBIA Insured, 6.625%, 6/1/23 Aaa/AAA $ 7,235,000 $ 7,902,356
- --------------------------------------------------------------------------------------------------------------------------------
ALASKA--0.6%
Anchorage, AK EU RB, Sr. Lien, Series B, 5.50%, 2/1/26 Aaa/AAA 4,000,000 3,878,880
- --------------------------------------------------------------------------------------------------------------------------------
ARIZONA--0.9%
Central AZ Irrigation & Drainage District GORB,
6%, 6/1/13 NR/NR 1,094,150 852,168
-------------------------------------------------------------------------------------------------------------------------
Navajo Cnty., AZ IDAU RB,
Stone Container Corp. Project, 7.40%, 4/1/26 NR/NR 5,000,000 5,258,200
------------
6,110,368
- --------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--13.4%
CA HFA Home Mtg. RB, Series C:
6.65%, 8/1/14 Aa2/AA- 5,000,000 5,210,700
6.75%, 2/1/25 Aa2/AA- 4,980,000 5,203,502
-------------------------------------------------------------------------------------------------------------------------
CA HFFAU RB, Episcopal Homes Project,
Series A, 7.80%, 7/1/15 NR/A+ 1,000,000 1,065,020
-------------------------------------------------------------------------------------------------------------------------
CA PWBL RB, Department of Corrections,
Series A, AMBAC Insured:
5.50%, 1/1/14 Aaa/AAA/AAA 6,750,000 6,716,587
5.50%, 1/1/17 Aaa/AAA/AAA 6,000,000 5,889,360
-------------------------------------------------------------------------------------------------------------------------
CA PWBL RB, University of California Regents,
Series A, AMBAC Insured, 6.40%, 12/1/16 Aaa/AAA/AAA 8,700,000 9,395,739
-------------------------------------------------------------------------------------------------------------------------
CA PWBL RRB, CA State University,
Series A, AMBAC Insured, 5.375%, 10/1/17 Aaa/AAA/A- 5,500,000 5,313,220
-------------------------------------------------------------------------------------------------------------------------
CA Statewide CDAU Revenue COP,
Cedars-Sinai Medical Center, 5.40%, 11/1/15 A1/NR 3,000,000 2,785,560
-------------------------------------------------------------------------------------------------------------------------
Foothill/Eastern Transportation Corridor Agency
CA Toll Road RB, Sr. Lien, Series A, 6.50%, 1/1/32 Baa/BBB-/BBB 10,500,000 10,931,235
-------------------------------------------------------------------------------------------------------------------------
Industry, CA Urban Development Agency
Tax Allocation Bonds, Transportation Distribution
Project No. 3, 6.90%, 11/1/07 NR/A- 500,000 542,885
-------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA Regional AIC Lease RRB,
Facilities Sublease-International Airport Project,
6.35%, 11/1/25 Baa3/BB+ 8,930,000 9,132,890
-------------------------------------------------------------------------------------------------------------------------
Pomona, CA SFM RRB, Escrowed to Maturity,
Series A, 7.60%, 5/1/23 NR/AAA 6,000,000 7,546,620
-------------------------------------------------------------------------------------------------------------------------
Redding, CA Electric System Revenue COP,
FGIC Insured, Inverse Floater, 7.586%, 6/1/19(1) Aaa/AAA/AAA 6,000,000 5,745,000
-------------------------------------------------------------------------------------------------------------------------
San Joaquin Hills, CA Transportation Corridor
Agency Toll Road RB, Sr. Lien, 6.75%, 1/1/32 NR/NR/BBB 12,700,000 13,361,797
------------
88,840,115
- --------------------------------------------------------------------------------------------------------------------------------
COLORADO--0.9%
CO HFAU RB, Rocky Mountain
Adventist Health System, 6.625%, 2/1/22 Baa2/BBB 5,000,000 5,125,500
-------------------------------------------------------------------------------------------------------------------------
Jefferson Cnty., CO School District No. R-001 GOB,
AMBAC Insured, 6.25%, 12/15/12 Aaa/AAA/AAA 500,000 526,180
-------------
5,651,680
</TABLE>
6 Oppenheimer Municipal Bond Fund
<PAGE> 7
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONNECTICUT--2.3%
Mashantucket, CT Western Pequot Tribe Special RB,
Series A, 6.40%, 9/1/11(2) Baa/BBB $15,000,000 $15,325,200
- --------------------------------------------------------------------------------------------------------------------------------
FLORIDA--5.6%
Broward Cnty., FL RR RB:
Broward Waste Energy-LP North Project, 7.95%, 12/1/08 A/A 5,735,000 6,304,084
Ses Broward Co.-LP South Project, 7.95%, 12/1/08 A/A- 9,450,000 10,387,723
-------------------------------------------------------------------------------------------------------------------------
Dade Cnty., FL IDAU RB, Miami
Cerebral Palsy Services Project, 8%, 6/1/22 NR/NR 3,000,000 3,020,970
-------------------------------------------------------------------------------------------------------------------------
FL BOE Capital Outlay GORB, 8.40%, 6/1/07 Aa/AA 750,000 948,532
-------------------------------------------------------------------------------------------------------------------------
FL HFA RRB, SFM, Series A, 6.35%, 7/1/14 Aaa/AAA 900,000 928,233
-------------------------------------------------------------------------------------------------------------------------
Hillsborough Cnty., FL IDAU PC RRB,
Tampa Electric Co. Project, Series 92, 8%, 5/1/22 Aa3/AA/AA- 4,000,000 4,652,600
-------------------------------------------------------------------------------------------------------------------------
Tampa, FL Water & Sewer RRB, Prerefunded,
6.60%, 10/1/14 Aaa/AAA 9,950,000 11,056,738
------------
37,298,880
- --------------------------------------------------------------------------------------------------------------------------------
GEORGIA--2.8%
GA Municipal Electric Authority Special Obligation Bonds,
Fifth Crossover Series, Project One:
6.50%, 1/1/17 A/A 10,750,000 11,718,252
MBIA Insured, 6.50%, 1/1/17 Aaa/AAA 1,000,000 1,120,700
Sixth Crossover Series, Project One,
MBIA Insured, 6.50%, 1/1/12 Aaa/AAA 500,000 560,470
-------------------------------------------------------------------------------------------------------------------------
Savannah, GA EDAU ID RB,
Stone Container Corp. Project, 7.40%, 4/1/26 NR/NR 5,000,000 5,258,200
------------
18,657,622
- --------------------------------------------------------------------------------------------------------------------------------
HAWAII--0.1%
Honolulu, HI City & Cnty. GOB, Series B, 6.10%, 6/1/11 Aa/AA 500,000 528,190
- --------------------------------------------------------------------------------------------------------------------------------
ILLINOIS--1.7%
Hoffman Estates, IL Tax Increment RB, ED Project,
7.625%, 11/15/09 Aaa/AAA 825,000 893,458
-------------------------------------------------------------------------------------------------------------------------
IL HFAU RB, Hinsdale Hospital Project,
Unrefunded Balance, Series C, 9.50%, 11/15/19 Baa1/BBB 935,000 1,062,169
-------------------------------------------------------------------------------------------------------------------------
IL Regional Transportation Authority RB,
AMBAC Insured, 7.20%, 11/1/20 Aaa/AAA/AAA 7,500,000 9,003,150
------------
10,958,777
- --------------------------------------------------------------------------------------------------------------------------------
INDIANA--4.0%
IN HFFAU Hospital RB,
Clarian Health Partners, Inc., 5.50%, 2/15/16 Aa3/AA/A 5,000,000 4,797,750
-------------------------------------------------------------------------------------------------------------------------
Indianapolis, IN Airport Authority RB, Special Facilities:
Federal Express Corp. Project, 7.10%, 1/15/17 Baa2/BBB 10,000,000 10,776,100
United Airlines Project, Series A, 6.50%, 11/15/31 Baa2/BB 10,500,000 10,699,185
-------------
26,273,035
</TABLE>
7 Oppenheimer Municipal Bond Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
KENTUCKY--0.4%
Kenton Cnty., KY AB RB, Special Facilities--
Delta Airlines Project, Series A, 6.125%, 2/1/22 Baa3/BB+ $ 2,790,000 $2,748,959
- --------------------------------------------------------------------------------------------------------------------------------
LOUISIANA--1.6%
New Orleans, LA Home Mtg. Authority
Special Obligation Refunding Bonds,
Escrowed to Maturity, 6.25%, 1/15/11 Aaa/AAA 9,500,000 10,298,760
- --------------------------------------------------------------------------------------------------------------------------------
MARYLAND--0.1%
MD University System Auxiliary Facilities &
Tuition RRB, Series A, 5.90%, 2/1/03 Aa3/AA+/AA 500,000 531,935
- --------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS--4.0%
MA Bay Transportation Authority RRB,
General Transportation System, Series A, 5.50%, 3/1/12 A1/A+/A+ 12,000,000 12,115,920
-------------------------------------------------------------------------------------------------------------------------
MA GORB, Series B, MBIA Insured, 6.50%, 8/1/11 Aaa/AAA/AAA 1,000,000 1,083,590
-------------------------------------------------------------------------------------------------------------------------
MA Water Resource Authority RB, Series A, 6.50%, 7/15/19 A/A/A 12,225,000 13,629,286
------------
26,828,796
- --------------------------------------------------------------------------------------------------------------------------------
MICHIGAN--7.0%
Detroit, MI GORB, Series B:
6.25%, 4/1/09 Baa/BBB 4,065,000 4,169,105
6.375%, 4/1/06 Baa/BBB 2,000,000 2,105,360
6.375%, 4/1/07 Baa/BBB 500,000 524,570
-------------------------------------------------------------------------------------------------------------------------
Detroit, MI Sewage Disposal RB, FGIC Insured,
Inverse Floater, 7.695%, 7/1/23(1) Aaa/AAA/AAA 13,200,000 12,325,500
-------------------------------------------------------------------------------------------------------------------------
Detroit, MI Water Supply System RB:
Prerefunded, FGIC Insured, Inverse Floater,
9.069%, 7/1/22(1) Aaa/AAA/AAA 3,700,000 4,467,750
Unrefunded Balance, FGIC Insured,
Inverse Floater, 9.069%, 7/1/22(1) Aaa/AAA 1,500,000 1,657,500
-------------------------------------------------------------------------------------------------------------------------
MI Hospital FAU RRB:
FSA Insured, Inverse Floater, 8.873%, 2/15/22(1) Aaa/AAA 5,000,000 5,400,000
Sisters of Mercy Hospital,
Series H, MBIA Insured, 7.50%, 8/15/13 Aaa/AAA 1,000,000 1,049,400
-------------------------------------------------------------------------------------------------------------------------
MI Strategic Fund SWD RRB,
Genesee Power Station Project, 7.50%, 1/1/21 NR/NR 3,650,000 3,708,108
-------------------------------------------------------------------------------------------------------------------------
Wayne Cnty., MI Special Airport Facilities RRB,
Northwest Airlines, Inc. Facilities,
Series 1995, 6.75%, 12/1/15 NR/NR 10,490,000 10,737,144
------------
46,144,437
- --------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE--0.2%
NH Housing FAU RB, SFM, Series C, 6.90%, 7/1/19 Aa/NR 1,000,000 1,042,780
- --------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY--4.5%
Bergen Cnty., NJ MUAU Water PC RB,
Series A, FGIC Insured, 6.50%, 12/15/12(3) Aaa/AAA/AAA 5,600,000 6,083,896
-------------------------------------------------------------------------------------------------------------------------
NJ GOB, Series D, 8%, 2/15/07 Aa1/AA+/AA+ 3,100,000 3,833,894
-------------------------------------------------------------------------------------------------------------------------
NJ Mtg. & HFA MH RB, Series C, 9.75%, 11/1/27 NR/AA 1,000,000 1,027,260
-------------------------------------------------------------------------------------------------------------------------
NJ Turnpike Authority RRB, Series C:
6.50%, 1/1/16 Baa1/BBB+/A- 16,150,000 17,603,338
MBIA Insured, 6.50%, 1/1/16 Aaa/AAA 1,100,000 1,228,964
-------------
29,777,352
</TABLE>
8 Oppenheimer Municipal Bond Fund
<PAGE> 9
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK--11.9%
NYC GOB:
Inverse Floater, 7.278%, 8/1/15(1) Baa1/BBB+ $ 3,050,000 $ 2,737,375
Prerefunded, Series D, 8%, 8/1/15 Aaa/BBB+ 10,780,000 12,436,347
Series H, 6.125%, 8/1/25 Baa1/BBB+/A- 5,000,000 4,933,700
Unrefunded Balance, Series A, 7.75%, 8/15/16 Baa1/BBB+ 152,500 169,492
Unrefunded Balance, Series D, 8%, 8/1/15 Baa1/BBB+ 220,000 245,599
Unrefunded Balance, Series G, 7.625%, 2/1/15 Baa1/BBB+/A- 90,000 99,728
-------------------------------------------------------------------------------------------------------------------------
NYC GORB, Series B, MBIA Insured, 6.20%, 8/15/06 Aaa/AAA 10,000,000 10,869,300
-------------------------------------------------------------------------------------------------------------------------
NYC IDAU Special Facilities RB, Terminal One
Group Assn. Project, 6%, 1/1/19 A/A/A- 6,000,000 5,902,740
-------------------------------------------------------------------------------------------------------------------------
NYS DAU RB, CUS:
Prerefunded, Series A, 7.625%, 7/1/20 Aaa/BBB 9,500,000 10,652,730
Prerefunded, Series F, 7.875%, 7/1/07 Aaa/BBB 3,005,000 3,391,713
-------------------------------------------------------------------------------------------------------------------------
NYS DAU RRB, SUEFS,
Prerefunded, Series A, 7.70%, 5/15/12 Aaa/BBB+/A 5,000,000 5,600,200
-------------------------------------------------------------------------------------------------------------------------
NYS GOB, 6.875%, 3/1/12 A/A- 1,000,000 1,087,220
-------------------------------------------------------------------------------------------------------------------------
NYS HFAU RRB:
NYC HF, Series A, 6%, 11/1/06 Baa/BBB+ 4,000,000 4,112,480
NYC HF, Series A, 6%, 5/1/08 Baa/BBB+ 2,000,000 2,029,200
Unrefunded Balance, 7.90%, 11/1/99 Baa2/BBB+ 5,450,000 5,768,662
-------------------------------------------------------------------------------------------------------------------------
NYS LGAC RB:
Series A, 7.125%, 4/1/11 A/A/A+ 745,000 832,225
Series D, 7%, 4/1/11 A/A/A+ 900,000 1,013,589
-------------------------------------------------------------------------------------------------------------------------
NYS Mtg. Agency RB, Ninth Series B, 8.30%, 10/1/17 Aa/NR 1,715,000 1,758,887
-------------------------------------------------------------------------------------------------------------------------
NYS PAU RB, Series V, 7.875%, 1/1/07 Aa/AA- 3,000,000 3,160,050
-------------------------------------------------------------------------------------------------------------------------
PAUNYNJ Consolidated RB,
Series Fifty-One E, 7%, 12/1/14 A1/AA- 2,000,000 2,053,540
------------
78,854,777
- --------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA--1.0%
NC Medical Care Commission HCF RB,
Carolina Medicorp Project, 5.25%, 5/1/26 Aa3/AA/AA 7,000,000 6,501,950
- --------------------------------------------------------------------------------------------------------------------------------
OHIO--2.4%
Cleveland, OH PPS First Mtg. RB,
Series A, MBIA Insured, 7%, 11/15/16 Aaa/AAA 2,000,000 2,260,960
-------------------------------------------------------------------------------------------------------------------------
OH Building Authority RB, Juvenile Correctional Projects,
Series A, AMBAC Insured, 6.60%, 10/1/14 Aaa/AAA/AAA 500,000 549,995
-------------------------------------------------------------------------------------------------------------------------
OH HFA SFM RB, Series B, Inverse Floater,
9.943%, 3/1/31(1) Aaa/AAA 5,430,000 5,945,850
-------------------------------------------------------------------------------------------------------------------------
OH Solid Waste RB, Republic Engineered
Steels, Inc. Project, 9%, 6/1/21 NR/NR 6,000,000 6,174,720
-------------------------------------------------------------------------------------------------------------------------
Summit Cnty., OH General Obligation RB, 6.625%, 12/1/12 Aaa/AAA/AAA 1,200,000 1,311,636
------------
16,243,161
</TABLE>
9 Oppenheimer Municipal Bond Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OKLAHOMA--1.7%
Muskogee, OK Industrial Trust PC RB,
Oklahoma Gas & Electric Co., Series A, 7%, 3/1/17 A1/AA- $ 1,575,000 $ 1,609,162
-------------------------------------------------------------------------------------------------------------------------
Tulsa, OK Municipal Airport Trust RB,
American Airlines Project, 6.25%, 6/1/20 Baa2/BB+ 9,820,000 9,938,920
------------
11,548,082
- --------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--6.9%
Delaware Cnty., PA IDAU RRB, RR Project,
Series A, 8.10%, 12/1/13 Aa3/AA- 3,320,000 3,468,836
-------------------------------------------------------------------------------------------------------------------------
PA EDFAU RR RB, Colver Project, Series D, 7.15%, 12/1/18 NR/BBB- 3,000,000 3,154,380
-------------------------------------------------------------------------------------------------------------------------
PA GOB, Second Series A, 6.60%, 11/1/11 A1/AA--/AA- 810,000 871,058
-------------------------------------------------------------------------------------------------------------------------
PA HEAA Student Loan RB, AMBAC Insured,
Inverse Floater, 8.462%, 3/1/22(1) Aaa/AAA/AAA 17,500,000 18,025,000
-------------------------------------------------------------------------------------------------------------------------
PA Turnpike Commission RRB, Series N, 6.50%, 12/1/13 Aaa/AAA 750,000 797,033
-------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA Water & Sewer RRB,
Escrowed to Maturity, Tenth Series, 7.35%, 9/1/04 Aaa/AAA 2,221,000 2,532,340
-------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA Water & Wastewater RB,
FGIC Insured, 10%, 6/15/05 Aaa/AAA/AAA 6,100,000 8,232,438
-------------------------------------------------------------------------------------------------------------------------
Schuylkill Cnty., PA IDAU RR RRB,
Schuylkill Energy Resources, Inc., 6.50%, 1/1/10 NR/NR 9,030,000 8,676,927
------------
45,758,012
- --------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA--2.5%
Florence Cnty., SC ID RB, Stone Container Project,
7.375%, 2/1/07 NR/NR 3,000,000 3,146,760
-------------------------------------------------------------------------------------------------------------------------
Piedmont, SC MPA RRB:
Prerefunded, Series A, FGIC Insured, 6.50%, 1/1/16 Aaa/AAA 285,000 318,413
Unrefunded Balance, Series A, FGIC Insured, 6.50%, 1/1/16 Aaa/AAA 1,715,000 1,901,026
-------------------------------------------------------------------------------------------------------------------------
SC Public Service Authority RB, Prerefunded,
Santee Cooper, Series D, AMBAC Insured, 6.50%, 7/1/24 Aaa/AAA/AAA 10,000,000 11,111,200
------------
16,477,399
- --------------------------------------------------------------------------------------------------------------------------------
TEXAS--11.6%
AAAU TX Special Facility RB:
American Airlines, Inc. Project, 7%, 12/1/11 Baa2/BB+ 3,000,000 3,324,780
Federal Express Corp. Project, 6.375%, 4/1/21 Baa2/BBB 9,100,000 9,185,813
-------------------------------------------------------------------------------------------------------------------------
Cypress-Fairbanks, TX Independent School District
CAP GORB, Series A, Zero Coupon:
5.886%, 2/15/14(4) Aaa/AAA 15,710,000 5,950,163
5.85%, 2/15/15(4) Aaa/AAA 15,000,000 5,329,050
5.908%, 2/15/16(4) Aaa/AAA 16,240,000 5,397,689
-------------------------------------------------------------------------------------------------------------------------
Dallas-Fort Worth, TX International Airport Facilities
Improvement Corp. RB, American Airlines, Inc.,
7.25%, 11/1/30 Baa2/BB+ 8,000,000 8,612,560
-------------------------------------------------------------------------------------------------------------------------
Harris Cnty., TX GORRB, Toll Road Project, Sub Lien:
6.75%, 8/1/14 Aa/AA 1,000,000 1,082,600
Series A, 6.50%, 8/15/15 Aa/AA 1,000,000 1,075,290
</TABLE>
10 Oppenheimer Municipal Bond Fund
<PAGE> 11
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TEXAS
(CONTINUED)
Houston, TX Airport System RB, Sub Lien, Series B,
FGIC Insured, 6.625%, 7/1/22 Aaa/AAA/AAA $ 1,000,000 $ 1,083,240
-------------------------------------------------------------------------------------------------------------------------
Houston, TX WSS RRB, Prior Lien, Series B:
6.40%, 12/1/09 A3/A/A 1,000,000 1,071,050
6.75%, 12/1/08 A3/A/A 500,000 541,735
-------------------------------------------------------------------------------------------------------------------------
North Central TX HFDC Hospital RB,
Baylor Health Care Project, Series B, Inverse Floater:
7.65%, 5/15/06(1) Aa2/AA 3,000,000 3,276,960
7.75%, 5/15/08(1) Aa2/AA 5,000,000 5,460,450
-------------------------------------------------------------------------------------------------------------------------
TX MPA CAP RRB, MBIA Insured, Zero Coupon:
5.95%, 9/1/13(4) Aaa/AAA/A+ 6,900,000 2,703,765
5.93%, 9/1/14(4) Aaa/AAA/A+ 17,500,000 6,425,650
5.85%, 9/1/15(4) Aaa/AAA/A+ 10,000,000 3,443,400
5.985%, 9/1/16(4) Aaa/AAA/A+ 39,990,000 12,879,579
------------
76,843,774
- --------------------------------------------------------------------------------------------------------------------------------
VERMONT--0.2%
VT HFA Home Mtg. Purchase RB, Series A, 7.85%, 12/1/29 A1/A- 1,570,000 1,650,745
- --------------------------------------------------------------------------------------------------------------------------------
WASHINGTON--4.3%
WA Public Power Supply System RRB,
Nuclear Project No. 1, Series A, 5.40%, 7/1/12 Aa1/AA-/AA- 30,000,000 28,209,000
- --------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA--0.5%
WV Parkways ED & Tourism Authority RB,
Inverse Floater, 7.829%, 5/16/19(1) Aaa/AAA 3,600,000 3,514,500
- --------------------------------------------------------------------------------------------------------------------------------
WISCONSIN--1.0%
WI Health & Educational Facilities Authority RB,
Sinai Samaritan Medical Center, Inc.,
MBIA Insured, 5.75%, 8/15/16 Aaa/AAA 6,250,000 6,188,375
-------------------------------------------------------------------------------------------------------------------------
WI Housing & EDAU Home Ownership RRB,
Series A, 7.10%, 3/1/23 Aa/AA 740,000 779,953
------------
6,968,328
- --------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--4.0%
PR Commonwealth GOB:
6.50%, 7/1/14 Baa1/A 6,690,000 7,397,334
6.50%, 7/1/15 Baa1/A 3,310,000 3,659,503
-------------------------------------------------------------------------------------------------------------------------
PR Commonwealth HTAU RB, Prerefunded:
Series S, 6.625%, 7/1/18 NR/AAA 3,500,000 3,914,820
Series T, 6.625%, 7/1/18 Aaa/AAA 5,500,000 6,151,860
-------------------------------------------------------------------------------------------------------------------------
PR EPAU RB, Unrefunded Balance, Series O, 7.125%, 7/1/14 Baa1/BBB+ 2,350,000 2,523,266
-------------------------------------------------------------------------------------------------------------------------
PR Industrial Tourist Educational Medical &
Environmental Control Facilities RB,
Teachers Retirement System, Series B:
5.50%, 7/1/21 NR/AAA 1,500,000 1,461,600
5.50%, 7/1/26 NR/AAA 1,150,000 1,131,750
------------
26,240,133
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $634,394,056) 99.3% 657,607,983
- --------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.7 4,533,849
------------- ------------
NET ASSETS 100.0% $662,141,832
============= ============
</TABLE>
11 Oppenheimer Municipal Bond Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
- -------------------------------------------------------------------------------
1. Represents the current interest rate for a variable rate bond. These
bonds known as "inverse floaters" pay interest at a rate that varies
inversely with short-term interest rates. As interest rates rise,
inverse floaters produce less current income. Their price may be more
volatile than the price of a comparable fixed-rate security. Inverse
floaters amount to $68,555,885 or 10.35% of the Fund's net assets at
January 31, 1997.
2. 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
$15,325,200 or 2.31% of the Fund's net assets, at January 31, 1997.
3. Securities with an aggregate market value of $2,634,544 are held in
collateralized accounts to cover initial margin requirements on open
futures sales contracts. See Note 5 of Notes to Financial Statements.
4. For zero coupon bonds, the interest rate shown is the effective
yield on the date of purchase.
As of January 31, 1997, securities subject to the alternative minimum
tax amounted to $122,318,136 or 18.47% of the Fund's net assets.
To simplify the listings of the Oppenheimer Municipal Bond Fund
holdings in the Statement of Investments, we have abbreviated the
descriptions of many of the securities per the table below:
<TABLE>
<S> <C> <C>
AAAU --Alliance Airport Authority, Inc. HFDC --Health Facilities Development Corp.
AB --Airport Board HFFAU --Health Facilities Finance Authority
AIC --Airports Improvement Corp. HTAU --Highway & Transportation Authority
BOE --Board of Education ID --Industrial Development
CAP --Capital Appreciation IDAU --Industrial Development Authority
CDAU --Communities Development Authority LGAC --Local Government Assistance Corp.
COP --Certificates of Participation MH --Multifamily Housing
CUS --City University System MPA --Municipal Power Agency
DAU --Development Authority MUAU --Municipal Utilities Authority
ED --Economic Development NYC --New York City
EDAU --Economic Development Authority NYS --New York State
EDFAU --Economic Development Finance Authority PAUNYNJ--Port Authority of New York & New Jersey
EPAU --Electric Power Authority PAU --Power Authority
EU --Electric Utilities PC --Pollution Control
FAU --Finance Authority PPS --Public Power System
GOB --General Obligation Bonds PWBL --Public Works Board Lease
GORB --General Obligation Refunding Bonds RB --Revenue Bonds
GORRB --General Obligation Revenue Refunding Bond RR --Resource Recovery
HCF --Health Care Facilities RRB --Revenue Refunding Bonds
HEAA --Higher Education Assistance Agency SFM --Single Family Mortgage
HF --Health Facilities SUEFS --State University Educational Facilities System
HFA --Housing Finance Agency SWD --Solid Waste Disposal
HFAU --Health Facilities Authority WSS --Water & Sewer System
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Municipal Bond Fund
<PAGE> 13
STATEMENT OF ASSETS AND LIABILITIES January 31, 1997 (Unaudited)
<TABLE>
===========================================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $634,394,056)--see accompanying statement $657,607,983
--------------------------------------------------------------------------------------------------------------------
Cash 124,162
---------------------------------------------------------------------------------------------------------------------
Receivables:
Interest 7,539,199
Investments sold 1,009,643
Shares of beneficial interest sold 330,370
---------------------------------------------------------------------------------------------------------------------
Other 72,843
------------
Total assets 666,684,200
- ----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Dividends 2,087,776
Shares of beneficial interest redeemed 1,424,695
Daily variation on futures contracts--Note 5 568,750
Trustees' fees 275,646
Distribution and service plan fees 129,777
Other 55,724
------------
Total liabilities 4,542,368
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS $662,141,832
------------
============================================================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $636,775,455
---------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 1,359,624
---------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 461,576
---------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Notes 3 and 5 23,545,177
------------
Net assets $662,141,832
============
============================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of $580,031,154 and
58,676,179 shares of beneficial interest outstanding) $ 9.89
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $10.38
---------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets of
$77,260,040 and 7,828,669 shares of beneficial interest outstanding) $ 9.87
---------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets of
$4,850,638 and 491,560 shares of beneficial interest outstanding) $ 9.87
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Municipal Bond Fund
<PAGE> 14
STATEMENT OF OPERATIONS For the Six Months Ended January 31, 1997
(Unaudited)
<TABLE>
============================================================================================================================
<S> <C>
INVESTMENT INCOME
Interest $21,772,718
- ----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees--Note 4 1,768,801
---------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 648,796
Class B 383,422
Class C 23,232
---------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 226,057
---------------------------------------------------------------------------------------------------------------------
Shareholder reports 65,557
---------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 63,029
---------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 32,418
---------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 14,094
---------------------------------------------------------------------------------------------------------------------
Insurance expenses 10,656
---------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 849
Class C 245
---------------------------------------------------------------------------------------------------------------------
Other 7,940
----------
Total expenses 3,245,096
- ----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 18,527,622
- ----------------------------------------------------------------------------------------------------------------------------
REALIZED AND
UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 2,421,006
Closing of futures contracts (1,936,327)
----------
Net realized gain 484,679
---------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 8,587,194
----------
Net realized and unrealized gain 9,071,873
- ----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $27,599,495
===========
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Municipal Bond Fund
<PAGE> 15
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JANUARY 31, 1997 PERIOD ENDED DECEMBER 31,
(UNAUDITED) JULY 31, 1996(1) 1995
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS
Net investment income $ 18,527,622 $ 21,806,993 $ 35,280,169
---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 484,679 10,273,043 (10,060,187)
---------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 8,587,194 (27,145,177) 79,929,069
------------ ------------ ------------
Net increase in net assets resulting from operations 27,599,495 4,934,859 105,149,051
- ----------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (16,020,877) (19,338,196) (31,334,557)
Class B (1,783,088) (2,010,127) (3,003,846)
Class C (108,064) (84,287) (19,720)
---------------------------------------------------------------------------------------------------------------------
Distributions in excess of net investment income:
Class A -- -- (1,231,760)
Class B -- -- (140,728)
Class C -- -- (3,835)
- ----------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions--Note 2:
Class A (18,819,234) (29,466,037) 30,679,725
Class B 2,131,403 3,308,384 12,510,842
Class C 578,006 2,283,590 1,925,528
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) (6,422,359) (40,371,814) 114,530,700
---------------------------------------------------------------------------------------------------------------------
Beginning of period 668,564,191 708,936,005 594,405,305
------------ ------------ ------------
End of period (including undistributed net investment
income of $1,359,624, $591,821 and $744,031, respectively) $662,141,832 $668,564,191 $708,936,005
============ ============ ============
</TABLE>
1. The Fund changed its fiscal year end from December 31 to July 31.
See accompanying Notes to Financial Statements.
15 Oppenheimer Municipal Bond Fund
<PAGE> 16
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------
SIX MONTHS PERIOD
ENDED ENDED
JANUARY 31, 1997 JULY 31, YEAR ENDED DECEMBER 31,
(UNAUDITED) 1996(2) 1995 1994
=================================================================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 9.74 $ 9.98 $ 8.93 $ 10.44
-------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .28 .32 .54 .57
Net realized and unrealized gain (loss) .14 (.25) 1.06 (1.52)
----------- --------- --------- --------
Total income (loss) from investment operations .42 .07 1.60 (.95)
-------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.27) (.31) (.54) (.56)
Dividends in excess of net investment income -- -- (.01) --
Distributions from net realized gain -- -- -- --
Distributions in excess of net realized gain -- -- -- --(4)
----------- --------- --------- --------
Total dividends and distributions to shareholders (.27) (.31) (.55) (.56)
-------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.89 $ 9.74 $ 9.98 $ 8.93
=========== ========= ========= --------
=========================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(5) 4.36% 0.77% 18.28% (9.19)%
=========================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $580,031 $590,299 $634,473 $541,161
-------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $589,447 $606,509 $569,859 $582,038
-------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.58%(6) 5.58%(6) 5.65% 5.94%
Expenses 0.87%(6) 0.92%(6) 0.88% 0.88%
-------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 11.8% 23.9% 25.1% 21.7%
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to
December 31, 1995.
2. The Fund changed its fiscal year end from December 31 to July 31.
3. For the period from March 16, 1993 (inception of offering) to
December 31, 1993.
4. Less than $.005 per share.
5. Assumes a hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), 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. Sales charges are not
reflected in the total returns. Total returns are not annualized for
periods of less than one full year.
16 Oppenheimer Municipal Bond Fund
<PAGE> 17
<TABLE>
<CAPTION>
CLASS B
- ------------------------ ----------------------------------------------------------------------------
SIX MONTHS PERIOD
ENDED ENDED
JANUARY 31, 1997 JULY 31, YEAR ENDED DECEMBER 31,
1993 1992 (UNAUDITED) 1996(2) 1995 1994 1993(3)
=========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
$ 9.94 $ 9.77 $ 9.73 $ 9.96 $ 8.92 $ 10.43 $ 10.22
- ---------------------------------------------------------------------------------------------------------
.59 .62 .24 .27 .47 .50 .41
.74 .25 .13 (.23) 1.05 (1.52) .43
- -------- --------- ---------- ---------- -------- -------- ---------
1.33 .87 .37 .04 1.52 (1.02) .84
- ---------------------------------------------------------------------------------------------------------
(.62) (.58) (.23) (.27) (.47) (.49) (.42)
-- -- -- -- (.01) -- --
(.21) (.12) -- -- -- -- (.21)
-- -- -- -- -- --(4) --
- -------- --------- ---------- ---------- -------- -------- ---------
(.83) (.70) (.23) (.27) (.48) (.49) (.63)
- ---------------------------------------------------------------------------------------------------------
$ 10.44 $ 9.94 $ 9.87 $ 9.73 $ 9.96 $ 8.92 $ 10.43
======== ========= ========== ========== ======== ======== =========
=========================================================================================================
13.79% 9.20% 3.87% 0.43% 17.30% (9.91)% 8.49%
- ---------------------------------------------------------------------------------------------------------
$608,128 $496,628 $77,260 $74,055 $72,488 $53,245 $33,024
- ---------------------------------------------------------------------------------------------------------
$567,777 $438,684 $76,245 $73,047 $63,669 $46,548 $16,444
- ---------------------------------------------------------------------------------------------------------
5.71% 6.34% 4.79%(6) 4.79%(6) 4.84% 5.11% 4.54%(6)
0.88% 0.94% 1.65%(6) 1.70%(6) 1.68% 1.69% 1.74%(6)
- ---------------------------------------------------------------------------------------------------------
30.2% 34.2% 11.8% 23.9% 25.1% 21.7% 30.2%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
- -------------------------------------------
SIX MONTHS PERIOD PERIOD
ENDED ENDED ENDED
JANUARY 31, 1997 JULY 31, DEC. 31,
(UNAUDITED) 1996(2) 1995(1)
- --------------------------------------------
<C> <C> <C>
$ 9.73 $ 9.96 $ 9.58
- -------------------------------------------
.24 .27 .15
.13 (.23) .39
- ---------- --------- --------
.37 .04 .54
- -------------------------------------------
(.23) (.27) (.15)
-- -- (.01)
-- -- --
-- -- --
- ---------- --------- --------
(.23) (.27) (.16)
- -------------------------------------------
$ 9.87 $ 9.73 $ 9.96
========== ========= ========
===========================================
3.86% 0.40% 5.64%
- -------------------------------------------
$4,851 $4,210 $1,975
- -------------------------------------------
$4,622 $3,105 $1,506
- -------------------------------------------
4.78%(6) 4.72%(6) 4.49%(6)
1.65%(6) 1.75%(6) 1.64%(6)
- -------------------------------------------
11.8% 23.9% 25.1%
</TABLE>
6. Annualized.
7.The lesser of purchases or sales of portfolio securities for a
period, divided by the monthly average of the market value of
portfolio securities owned during the period. Securities with a
maturity or expiration date at the time of acquisition of one year or
less are excluded from the calculation. Purchases and sales of
investment securities (excluding short-term securities) for the period
ended January 31, 1997 were $78,756,210 and $86,428,623, respectively.
See accompanying Notes to Financial Statements.
17 Oppenheimer Municipal Bond Fund
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (Unaudited)
===============================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer Municipal Bond Fund (the Fund), formerly named Oppenheimer
Tax-Free Bond Fund, is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end management investment
company. The Fund's investment objective is to seek the maximum current
income exempt from federal income taxes for individual investors as is
available from municipal securities that is consistent with
preservation of capital. The Fund's investment adviser is
OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class B
and Class C shares. Class A shares are sold with a front-end sales
charge. Class B and Class C shares may be subject to a contingent
deferred sales charge. All classes of shares have identical rights to
earnings, assets and voting privileges, except that each class has its
own distribution and/or service plan, expenses directly attributable to
a particular class and exclusive voting rights with respect to matters
affecting a single class. Class B shares will automatically convert to
Class A shares six years after the date of purchase. The following is a
summary of significant accounting policies consistently followed by the
Fund.
-----------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the
close of the New York Stock Exchange on each trading day. Listed and
unlisted securities for which such information is regularly reported
are valued at the last sale price of the day or, in the absence of
sales, at values based on the closing bid or the last sale price on the
prior trading day. Long-term and short-term "non-money market" debt
securities are valued by a portfolio pricing service approved by the
Board of Trustees. Such securities which cannot be valued by the
approved portfolio pricing service are valued using dealer-supplied
valuations provided the Manager is satisfied that the firm rendering
the quotes is reliable and that the quotes reflect current market
value, or are valued under consistently applied procedures established
by the Board of Trustees to determine fair value in good faith.
Short-term "money market type" debt securities having a remaining
maturity of 60 days or less are valued at cost (or last determined
market value) adjusted for amortization to maturity of any premium or
discount.
-----------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES.
Income, expenses (other than those attributable to a specific class)
and gains and losses are allocated daily to each class of shares based
upon the relative proportion of net assets represented by such class.
Operating expenses directly attributable to a specific class are
charged against the operations of that class.
-----------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions
of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income, including any
net realized gain on investments not offset by loss carryovers, to
shareholders. Therefore, no federal income or excise tax provision is
required.
-----------------------------------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded
retirement plan for the Fund's independent trustees. Benefits are
based on years of service and fees paid to each trustee during the
years of service. During the six months ended January 31, 1997, a
provision of $37,105 was made for the Fund's projected benefit
obligations, and payments of $11,314 were made to retired trustees,
resulting in an accumulated liability of $272,796 at January 31, 1997.
-----------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends
separately for Class A, Class B and Class C shares from net investment
income each day the New York Stock Exchange is open for business and
pay such dividends monthly. Distributions from net realized gains on
investments, if any, will be declared at least once each year.
-----------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment
income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes primarily because of premium
amortization for tax purposes. The character of the distributions made
during the 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 dividend distributions, the fiscal
year in which amounts are distributed may differ from the year that the
income or realized gain (loss) was recorded by the Fund.
18 Oppenheimer Municipal Bond Fund
<PAGE> 19
# 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
OTHER. Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Original issue discount
on securities purchased is amortized over the life of the respective
securities, in accordance with federal income tax requirements. For
bonds acquired after April 30, 1993, accrued market discount is
recognized at maturity or disposition as taxable ordinary income.
Taxable ordinary income is realized to the extent of the lesser of gain
or accrued market discount. Realized gains and losses on investments
and unrealized appreciation and depreciation are determined on an
identified cost basis, which is the same basis used for federal income
tax purposes.
The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
===============================================================================
2. SHARES OF
BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED JANUARY 31, 1997 PERIOD ENDED JULY 31, 1996(2)
--------------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------- -------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 2,428,819 $ 23,919,733 4,747,849 $ 46,379,774
Issued in connection with the
acquisition of Quest National Tax-
Exempt Fund--Note 6 -- -- -- --
Dividends and distributions
reinvested 1,069,299 10,524,580 1,312,265 12,765,106
Redeemed (5,408,806) (53,263,547) (9,076,955) (88,610,917)
---------- ------------ ---------- ------------
Net increase (decrease) (1,910,688) $(18,819,234) (3,016,841) $(29,466,037)
========== ============ ========== ============
- -----------------------------------------------------------------------------------------------------------------
Class B:
Sold 639,027 $ 6,282,236 1,143,171 $ 11,161,707
Dividends and distributions
reinvested 117,516 1,154,936 136,205 1,322,907
Redeemed (539,891) (5,305,769) (943,865) (9,176,230)
---------- ------------ ---------- ------------
Net increase 216,652 $ 2,131,403 335,511 $ 3,308,384
========== ============ ========== ============
- -----------------------------------------------------------------------------------------------------------------
Class C:
Sold 88,251 $ 868,734 241,982 $ 2,355,795
Dividends and distributions
reinvested 6,756 66,403 4,841 46,807
Redeemed (36,245) (357,131) (12,272) (119,012)
---------- ------------ ---------- ------------
Net increase 58,762 $ 578,006 234,551 $ 2,283,590
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1995(1)
---------------------------------
SHARES AMOUNT
- -----------------------------------------------------------------------------
<S> <C> <C>
Class A:
Sold 7,178,151 $ 68,805,897
Issued in connection with the
acquisition of Quest National Tax-
Exempt Fund--Note 6 7,276,353 71,599,310
Dividends and distributions
reinvested 2,221,310 21,323,241
Redeemed (13,705,703) (131,048,723)
----------- ------------
Net increase (decrease) 2,970,111 $ 30,679,725
=========== ============
- -----------------------------------------------------------------------------
Class B:
Sold 2,306,017 $ 22,148,575
Dividends and distributions
reinvested 219,509 2,106,903
Redeemed (1,221,000) (11,744,636)
----------- ------------
Net increase 1,304,526 $ 12,510,842
=========== ============
- -----------------------------------------------------------------------------
Class C:
Sold 223,883 $ 2,176,098
Dividends and distributions
reinvested 553 5,492
Redeemed (26,189) (256,062)
----------- ------------
Net increase 198,247 $ 1,925,528
=========== ============
</TABLE>
1. For the year ended December 31, 1995 for both Class A and B shares
and for the period from August 29, 1995 (inception of offering) to
December 31, 1995 for Class C shares.
2. The Fund changed its fiscal year end from December 31 to July 31.
================================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At January 31, 1997, net unrealized appreciation on investments of
$23,213,927 was composed of gross appreciation of $27,717,724, and
gross depreciation of $4,503,797.
19 Oppenheimer Municipal Bond Fund
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
===============================================================================
4. MANAGEMENT FEES AND
OTHER TRANSACTIONS
WITH AFFILIATES
Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of
0.60% on the first $200 million of average annual net assets, 0.55% on
the next $100 million, 0.50% on the next $200 million, 0.45% on the
next $250 million, 0.40% on the next $250 million and 0.35% on net
assets in excess of $1 billion. The Manager has agreed to assume Fund
expenses (with specified exceptions) in excess of the most stringent
applicable regulatory limit on Fund expenses.
For the six months ended January 31, 1997, commissions
(sales charges paid by investors) on sales of Class A shares totaled
$392,198, of which $99,864 was retained by OppenheimerFunds
Distributor, Inc. (OFDI), a subsidiary of the Manager, as general
distributor, and by an affiliated broker/dealer. Sales charges advanced
to broker/dealers by OFDI on sales of the Fund's Class B and Class C
shares totaled $209,845 and $8,568, of which $8,460 was paid to an
affiliated broker/dealer for Class B. During the six months ended
January 31, 1997, OFDI received contingent deferred sales charges of
$81,860 upon redemption of Class B shares as reimbursement for sales
commissions advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the
Manager, is the transfer and shareholder servicing agent for the Fund,
and for other registered investment companies. OFS's total costs of
providing such services are allocated ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to
reimburse OFDI for a portion of its costs incurred in connection with
the personal service and maintenance of accounts that hold Class A
shares. Reimbursement is made quarterly at an annual rate that may not
exceed 0.25% of the average annual net assets of Class A shares of the
Fund. OFDI uses the service fee to reimburse brokers, dealers, banks
and other financial institutions quarterly for providing personal
service and maintenance of accounts of their customers that hold Class
A shares. During the six months ended January 31, 1997, OFDI paid
$56,050 to an affiliated broker/dealer as reimbursement for Class A
personal service and maintenance expenses.
The Fund has adopted compensation type Distribution and
Service Plans for Class B and Class C shares to compensate OFDI for its
services and costs in distributing Class B and Class C shares and
servicing accounts. Under the Plans, the Fund pays OFDI an annual
asset-based sales charge of 0.75% per year on Class B and Class C
shares, as compensation for sales commissions paid from its own
resources at the time of sale and associated financing costs. If the
Plans are terminated by the Fund, the Board of Trustees may allow the
Fund to continue payments of the asset-based sales charge to OFDI for
certain expenses it incurred before the Plans were terminated. OFDI
also receives a service fee of 0.25% per year as compensation for costs
incurred in connection with the personal service and maintenance of
accounts that hold shares of the Fund, including amounts paid to
brokers, dealers, banks and other financial institutions. Both fees are
computed on the average annual net assets of Class B and Class C
shares, determined as of the close of each regular business day. During
the six months ended January 31, 1997, OFDI paid $4,955 to an
affiliated broker/dealer as compensation for Class B personal service
and maintenance expenses and retained $306,370 and $16,561,
respectively, as compensation for Class B and Class C sales commissions
and service fee advances, as well as financing costs. At January 31,
1997, OFDI had incurred unreimbursed expenses of $2,372,378 for Class B
and $64,323 for Class C.
20 Oppenheimer Municipal Bond Fund
<PAGE> 21
===============================================================================
5. FUTURES CONTRACTS
The Fund may buy and sell interest rate futures contracts in order to
gain exposure to or protect against changes in interest rates. The Fund
may also buy or write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge
against increases in interest rates and the resulting negative effect
on the value of fixed rate portfolio securities. The Fund may also
purchase futures contracts to gain exposure to changes in interest
rates as it may be more efficient or cost effective than actually
buying fixed income securities.
Upon entering into a futures contract, the Fund is
required to deposit either cash or securities in an amount (initial
margin) equal to a certain percentage of the contract value. Subsequent
payments (variation margin) are made or received by the Fund each day.
The variation margin payments are equal to the daily changes in the
contract value and are recorded as unrealized gains and losses. The
Fund recognizes a realized gain or loss when the contract is closed or
expires.
Securities held in collateralized accounts to cover
initial margin requirements on open futures contracts are noted in the
Statement of Investments. The Statement of Assets and Liabilities
reflects a receivable or payable for the daily mark to market for
variation margin.
Risks of entering into futures contracts (and related
options) include the possibility that there may be an illiquid market
and that a change in the value of the contract or option may not
correlate with changes in the value of the underlying securities.
At January 31, 1997, the Fund had outstanding futures contracts to sell
debt securities as follows:
<TABLE>
<CAPTION>
EXPIRATION NUMBER OF VALUATION AS OF UNREALIZED
DATE FUTURES CONTRACTS JANUARY 31, 1997 APPRECIATION
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury Bonds 3/97 650 $72,434,375 $331,250
</TABLE>
===============================================================================
6. ACQUISITION OF MI FUND, INC.
AND QUEST NATIONAL
TAX-EXEMPT FUND
On November 24, 1995, Oppenheimer Municipal Bond Fund acquired all of
the net assets of Quest National Tax-Exempt Fund, pursuant to an
Agreement and Plan of Reorganization approved by the Quest National
Tax-Exempt Fund shareholders on November 16, 1995. The Fund issued
7,276,353 shares of beneficial interest, valued at $71,599,310, in
exchange for the net assets, resulting in combined net assets of
$711,397,113 on November 24, 1995. The net assets acquired included net
unrealized appreciation of $3,756,263. The exchange was tax-free.
21 Oppenheimer Municipal Bond Fund
<PAGE> 22
OPPENHEIMER MUNICIPAL BOND FUND
================================================================================
OFFICERS AND TRUSTEES
Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert E. Patterson, Vice President
Jerry A. Webman, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISER
OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF PORTFOLIO SECURITIES
Citibank, N.A.
================================================================================
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
================================================================================
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the
records of the Fund without examination by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer Municipal
Bond Fund. This report must be preceded or accompanied by a Prospectus
of Oppenheimer Municipal Bond Fund. For material information concerning
the Fund, see the Prospectus. Shares of Oppenheimer funds are not
deposits or obligations of any bank, are not guaranteed by any bank,
and are not insured by the FDIC or any other agency, and involve
investment risks, including possible loss of the principal amount
invested.
22 Oppenheimer Municipal Bond Fund
<PAGE> 23
OPPENHEIMERFUNDS FAMILY
================================================================================
OppenheimerFunds offers over 50 funds designed to fit virtually every
investment goal. Whether you're investing for retirement, your
children's education or tax-free income, we have the funds to help you
seek your objective.
When you invest with OppenheimerFunds, you can feel
comfortable knowing that you are investing with a respected financial
institution with over 35 years of experience in helping people just
like you reach their financial goals. And you're investing with a
leader in global, growth stock and flexible fixed-income
investments--with over 3 million shareholder accounts and more than $60
billion under OppenheimerFunds' management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to exchange
shares. And you can exchange shares easily by mail or by telephone.(1)
For more information on Oppenheimer funds, please contact your
financial adviser or call us at 1-800-525-7048 for a prospectus. You
may also write us at the address shown on the back cover. As always,
please read the prospectus carefully before you invest.
<TABLE>
================================================================================
STOCK FUNDS
<S> <C>
Developing Markets Fund Quest Capital Value Fund
Global Emerging Growth Fund Growth Fund
Enterprise Fund(2) Global Fund
International Growth Fund Quest Global Value Fund
Discovery Fund Disciplined Value Fund
Quest Small Cap Value Fund Oppenheimer Fund
Gold & Special Minerals Fund Value Stock Fund
Capital Appreciation Fund(3) Quest Value Fund
================================================================================
STOCK & BOND FUNDS
Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Multiple Strategies Fund(4)
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
================================================================================
BOND FUNDS
International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
================================================================================
MUNICIPAL FUNDS
California Municipal Fund(5) Insured Municipal Fund
Florida Municipal Fund(5) Intermediate Municipal Fund
New Jersey Municipal Fund(5)
New York Municipal Fund(5) Rochester Division
Pennsylvania Municipal Fund(5) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
================================================================================
MONEY MARKET FUNDS(6)
Money Market Fund Cash Reserves
================================================================================
LIFESPAN
Growth Fund Income Fund
Balanced Fund
</TABLE>
1. Exchange privileges are subject to change or termination. Shares may
be exchanged only for shares of the same class of eligible funds.
2. Effective 4/1/96, the Fund is closed to new investors.
3. On 12/18/96, the Fund's name was changed from "Target Fund."
4. On 3/6/97, the Fund's name was changed from "Asset Allocation Fund."
5. Available only to investors in certain states.
6. An investment in money market funds is neither insured nor guaranteed
by the U.S. government and there can be no assurance that a money market
fund will be able to maintain a stable net asset value of $1.00 per
share. Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY 10048-0203.
(C) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
23 Oppenheimer Municipal Bond Fund
<PAGE> 24
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated
information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RS0310.001.0197 March 31, 1997
[PHOTO]
CUSTOMER SERVICE REPRESENTATIVE
OPPENHEIMERFUNDS SERVICES
"HOW MAY I HELP YOU?"
As an Oppenheimer fund shareholder, you have some special privileges.
Whether it's automatic investment plans, informative newsletters and hotlines,
or ready account access, you can benefit from services designed to make
investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling
our toll-free Telephone Transactions number. And, by enrolling in AccountLink,
a convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- -------------------
Bulk Rate
U.S. Postage
PAID
Permit No. 130
Torrington, CT
- -------------------
