- ------------------------------------
Oppenheimer New York Tax-Exempt Fund
Semiannual Report March 31, 1995
- ------------------------------------
"We want an
investment
that won't
add to
our income
taxes."
[LOGO] Oppenheimer Funds(R)
<PAGE>
Yield
- ---------------------------------
Standardized Yield
- ---------------------------------
For the 30 Days Ended 3/31/95:(1)
Class A
- ---------------------------------
5.03%
- ---------------------------------
Class B
- ---------------------------------
4.51%
- ---------------------------------
This Fund is for people who need an investment
that's exempt from income taxes.
- --------------------------------------------------------------------------------
How Your Fund Is Managed
- --------------------------------------------------------------------------------
Oppenheimer New York Tax-Exempt Fund invests primarily in a diversified
portfolio of investment grade New York tax-free municipal bonds. As a Fund
shareholder, you receive income that is free from federal, New York State, and
New York City income taxes.(2) Your dividends don't increase your income the way
taxable investments do, so you can keep more of what you earn.
- --------------------------------------------------------------------------------
Performance
- --------------------------------------------------------------------------------
Total returns at net asset value for the 6 months ended 3/31/95 for Class A and
B shares were 5.44% and 4.95%, respectively.(3)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1-, 5- and 10-year periods ended 3/31/95 were -0.13%,
6.75% and 8.55%, respectively. For Class B shares, average annual total returns
for the 1-year period ended 3/31/95 and since inception of the Class on 3/1/93
were -0.88% and 0.86%, respectively.(4)
- --------------------------------------------------------------------------------
Outlook
- --------------------------------------------------------------------------------
"The New York municipal market continues to offer substantial value to
investors. New York bonds are delivering attractive returns today, and we
believe that the fundamentals for long-term performance--positive supply and
demand characteristics, an improving state economy, and generally positive
interest rate outlook--are in place."
Robert Patterson, Portfolio Manager
March 31, 1995
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on 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.
1. Standardized yield is net investment income calculated on a yield-to-maturity
basis for the 30-day period ended 3/31/95, divided by the maximum offering price
at the end of the period, compounded semiannually and then annualized. Falling
net asset values will tend to artificially raise yields.
2. 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.
3. Based on the change in net asset value per share from 9/30/94 to 3/31/95,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
4. Class A returns show results of hypothetical investments on 4/1/94, 4/1/90
and 4/1/85 (inception of class), after deducting the current maximum initial
sales charge of 4.75%. Class B returns show results of hypothetical investments
on 4/1/94 and 3/1/93 (inception of class) and the deduction of the applicable
contingent deferred sales charge of 5% (1-year) and 3% (since inception). An
explanation of the different total returns is in the Fund's prospectus.
2 Oppenheimer New York Tax-Exempt Fund
<PAGE>
[PHOTOGRAPH]
Donald W. Spiro
President
Oppenheimer New York
Tax-Exempt Fund
[PHOTOGRAPH]
Jon S. Fossel
Chairman and CEO
Oppenheimer
Management
Corporation
Dear OppenheimerFunds Shareholder,
To see how greatly the municipal market has improved since our last
report--issued in one of the worst years for bonds on record--we need look no
further than the market's reaction to the Federal Reserve's most recent
short-term rate increase in February. While the markets had already anticipated
this move, unlike previous rate increases, long-term interest rates continued to
decline and bonds rallied further. While the Fed could possibly raise rates
again, we believe that this positive environment will likely last throughout
1995--an outlook supported by a number of considerations.
Most important, concerns about the impact of inflation on bond prices are
fading fast. The Fed's actions to fend off inflation seem to have had the
desired effect. By most indicators--commodity prices, consumer spending, housing
starts, and many others--economic growth is slowing to a pace that can be
sustained without reigniting inflation or causing a recession.
That's good news for municipal bondholders, and it gets even better. At
current prices, intermediate and long-term municipal bonds are producing some of
the best real, inflation-adjusted returns in years. With the actual inflation
rate running at about 3 percent today, many tax-free investors are clearly being
rewarded.
These positives are enhanced by another development: a marked shift in the
municipal bond market's supply and demand dynamics. While demand for tax-free
securities appears to be returning to its long-term upward trend, municipal bond
supplies are being constrained. Not only have higher interest rates caused the
volume of new tax-free issues to fall from 1994 levels, the high volume of bond
calls, in which issuers redeem bonds before their scheduled maturities, is
producing municipal bond shortages nationwide. This combination of growing
demand and shrinking supply is providing strong support to municipal bond
prices.
As the Fed concludes its tightening efforts--and recent events suggest that
point is near--long-term interest rates will likely stay within their current
range, and could possibly decline further as the economy slows. Of course, there
is a possibility of rising rates later this year if future economic reports
indicate that the economy isn't slowing as quickly as it seems to be today;
however, we believe that over the longer term, the downward trend of rates will
continue.
Of course, no one can predict the future with perfect clarity, especially
when looking ahead involves forecasting interest rates. The bond markets are
always subject to fluctuations and, as we saw in 1994, the shifts sometimes can
be sharp. Overall, however, we believe the outlook for the bond markets today
appears positive.
On the following pages, your portfolio manager discusses the trends in
place today and the outlook for your Fund in more detail. We appreciate your
confidence in OppenheimerFunds, and will continue to do our best to help you
meet your long-term investment objectives.
/s/ Donald W. Spiro /s/ Jon S. Fossel
Donald W. Spiro Jon S. Fossel
April 24, 1995
3 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Q + A [PHOTOGRAPH]-Robert Patterson, [PHOTOGRAPH]-The trading desk
Portfolio Manager
An interview with your Fund's manager.
Q Is the
municipal
market
improving?
Much has happened in the New York municipal market over the past year. What were
the most important factors affecting the Fund's performance?
Many factors combined to make the past year one of the most challenging that
tax-free investors have seen in decades, but one factor stands out:
the Federal Reserve's efforts to fend off inflation, which drove interest rates
up and bond prices down. The Fed's actions affected all municipal bonds and bond
funds, and this Fund was no exception.
Since November of 1994, the bond market has staged a rally, as it became
clear that the Fed's actions were working. With inflation fears largely out of
the way, the general tone of the municipal market is becoming more positive
every day, and recent Fund returns reflect it.
Did those developments cause you to change your investment strategy?
Not in any significant way. Our objective is to provide shareholders with a
high level of tax-free income from a portfolio of New York municipal bonds. To
do that, we presently keep the Fund's duration--a technical measure of a
portfolio's sensitivity to changing interest rates--slightly longer than those
of many other funds.
The longer-term results should benefit shareholders, as investors recognize
the fundamental positives--low inflation, reduced supply and increasing demand,
and improving issuer credit quality--at work in the New York municipal market
today.
Of course, within this strategic framework, we made some adjustments to
position the portfolio somewhat more defensively.(1)
What adjustments did you make?
We reduced the Fund's average maturity slightly, focusing on bonds in the
20-year maturity range. All other things being equal, the shorter a bond's
maturity, the less sensitive it is to changing interest rates. We selectively
reduced our exposure to electric utilities, particularly those with less than
competitive retail rates in an increasingly tough regulatory environment.
[PHOTOGRAPH]-Len Darling, Executive VP, Director of Fixed Income Investments,
with Jon Fossel, CEO and Chairman, Oppenheimer Management Corporation
1. The Fund's portfolio is subject to change.
4 Oppenheimer New York Tax-Exempt Fund
<PAGE>
A The
general
tone of the
municipal
market is
becoming
more
positive
every day.
What other kinds of bonds are you focusing on today?
We're continuing to find good values in New York higher education issues,
supporting public colleges and universities, including Fordham and NYU, as well
as in the transportation and environmental areas. We added to our position in
Triborough Bridge and Tunnel Authority bonds, as well as in New York City
Municipal Water Finance Authority.
Some analysts are predicting that a record amount of municipal bonds will be
called in 1995. How are you managing calls?
Bond calls, which allow issuers to redeem bonds before their scheduled maturity
and replace them with lower-yielding issuers, are a fact of life in the
municipal market. Because interest rates are currently much lower than they were
in the mid-1980s, when many of the municipal bonds outstanding today were
issued, it's possible that some bonds in the portfolio will be called.
We manage this by staying on top of the portfolio at all times, trying to
anticipate calls, and by seeking to buy bonds that offer both attractive yields
and significant call protection.
What's your outlook for the New York market going forward?
Our long-term outlook is very constructive. The positives at work on the
national level--low inflation, reduced municipal bond supply, and rising demand
for tax-free securities driven by rising tax burdens--are, if anything, even
stronger here.
Although the New York economy faces its share of challenges--particularly
in New York City--it remains one of the nation's largest state economies and
its second-largest issuer of municipal securities.
This combination of shrinking supply and mounting demand should provide
solid support for New York municipal bond prices. |_|
[PHOTOGRAPH]-Robert Patterson
5 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Statement of Investments March 31, 1995 (Unaudited)
----------------------------------------------------------------------------------------------------------------
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
====================================================================================================================================
Municipal Bonds and Notes--98.8%
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York--78.0% City of New York General Obligation Bonds:
Inverse Floater, 6.395%, 8/1/08(1) Baa1/A- $ 9,250,000 $ 7,839,032
Inverse Floater, 7.194%, 8/1/13(1) Baa1/A- 5,000,000 4,368,629
Inverse Floater, 7.195%, 8/1/14(1) Baa1/A- 8,150,000 7,102,871
Prerefunded, Series F, 8.25%, 11/15/17 Aaa/A- 7,820,000 9,341,294
Series A, 7.75%, 8/15/16 Baa1/A- 2,500,000 2,693,730
Series B, 8.25%, 6/1/07 Baa1/A- 1,750,000 1,990,266
Series B, FSA Insured, Inverse Floater,
5.892%, 10/1/07(1) Aaa/AAA 7,500,000 7,441,522
Series F, 8.25%, 11/15/17 Baa1/A- 680,000 752,134
----------------------------------------------------------------------------------------------------------------
City of New York Health & Hospital Corp. Revenue
Refunding Bonds, Series A, AMBAC Insured,
Inverse Floater, 6.94%, 2/15/23(1) Aaa/AAA/AAA 8,300,000 7,140,074
----------------------------------------------------------------------------------------------------------------
City of New York Housing Development Corp
Multifamily Housing Revenue Bonds:
1985 Fst. Series, FHA Insured, 9.875%, 10/1/17 Aa/AA 500,000 518,943
Glenn Garden Project, 6.50%, 1/15/18 NR/NR 3,022,809 2,848,224
Keith Plaza Project, 6.50%, 2/15/18 NR/NR 1,996,592 1,876,849
----------------------------------------------------------------------------------------------------------------
City of New York Industrial Development Agency
Civil Facility Revenue Bonds, USTA National Tennis
Center Project, FSA Insured, 6.375%, 11/15/14 Aaa/AAA 1,500,000 1,558,572
----------------------------------------------------------------------------------------------------------------
City of New York Industrial Development Agency
Revenue Bonds, Terminal One Group Assn.:
6%, 1/1/15 A/A/A- 5,000,000 4,842,225
6.125%, 1/1/24 A/A/A- 3,000,000 2,897,478
----------------------------------------------------------------------------------------------------------------
City of New York Municipal Water Finance
Authority Water & Sewer System Revenue Bonds:
Prerefunded, Series A, MBIA Insured, 7.25%, 6/15/15 Aaa/AAA 7,000,000 7,825,258
Prerefunded, Series B, 6.375%, 6/15/22 A/A-/A 2,650,000 2,887,400
Prerefunded, Series C, 7.75%, 6/15/20 Aaa/A- 17,250,000 19,982,794
Series B, 6.375%, 6/15/22 A/A-/A 6,100,000 6,226,916
Series B, AMBAC Insured, 5.375%, 6/15/19 Aaa/AAA/AAA 5,000,000 4,582,169
----------------------------------------------------------------------------------------------------------------
Dormitory Authority of the State of New York:
Revenue Bonds:
City University System, Series A, 5.75%, 7/1/18 Baa1/BBB 2,500,000 2,335,952
City University System, Series C, 6%, 7/1/16 Baa1/BBB 9,000,000 8,674,893
City University System, Series V, 5.60%, 7/1/10 Baa1/BBB 10,880,000 10,230,670
Department of Health, Prerefunded, 7.70%, 7/1/20 Aaa/BBB 2,750,000 3,143,626
Judicial Facilities Lease, Escrowed to Maturity,
MBIA-IBC Insured, 7.375%, 7/1/16 Aaa/AAA 2,300,000 2,615,123
Pooled Capital Program, Prerefunded, FGIC
Insured, 7.80%, 12/1/05 Aaa/AAA/AAA 8,145,000 8,963,425
Rockefeller University System, MBIA Insured,
7.375%, 7/1/14 Aaa/AAA 4,000,000 4,305,035
Revenue Refunding Bonds:
City University System, Second Series A, 5.75%, 7/1/18 Baa1/BBB 6,750,000 6,330,521
City University System, Series B, 6%, 7/1/14 Baa1/BBB 10,875,000 10,559,951
Fordham University System, FGIC Insured, 5.75%, 7/1/15 Aaa/AAA/AAA 9,100,000 8,886,467
New York University, Series A, MBIA Insured, 5%, 7/1/09 Aaa/AAA 9,000,000 8,266,491
</TABLE>
6 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York State University Educational Facilities System:
(continued) Prerefunded, Series B, 7.25%, 5/15/15 Aaa/BBB+ $ 15,230,000 $ 17,063,189
Prerefunded, Series B, 7.25%, 5/15/15 NR/AAA 1,735,000 1,943,837
Series A, 5.25%, 5/15/15 Baa1/BBB+ 23,090,000 20,344,550
Series A, 5.25%, 5/15/21 Baa1/BBB+ 5,010,000 4,311,285
Series B, 7%, 5/15/16 Baa1/BBB+ 9,020,000 9,397,974
----------------------------------------------------------------------------------------------------------------
Grand Central District Management Assn., Inc.,
New York Business District Capital Improvement:
Revenue Bonds, Prerefunded, 6.50%, 1/1/22 Aaa/AAA 2,000,000 2,197,338
Revenue Refunding Bonds, 5.125%, 1/1/14 A1/A 1,000,000 894,401
Refunding Bonds, 5.25%, 1/1/22 A1/A 2,500,000 2,200,342
----------------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority of New York
Revenue Bonds, Commuter Facilities, Series A,
MBIA Insured, 6.125%, 7/1/12 Aaa/AAA 4,090,000 4,159,472
----------------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority of New York
Revenue Bonds, Transportation Facilities Service
Contracts, 6%, 7/1/21 Baa1/BBB 12,950,000 12,341,311
----------------------------------------------------------------------------------------------------------------
New York State Energy Research and Development
Authority Electric Facilities Revenue Bonds:
Long Island Lighting Co., Series A, 7.15%, 12/1/20 Ba1/BB+ 7,500,000 7,112,197
Long Island Lighting Co., Series C, 6.90%, 8/1/22 Ba1/BB+ 9,200,000 8,451,781
Brooklyn Union Gas Co. Project, Series B, Inverse
Floater, 9.271%, 7/1/26(1) A1/A/A 6,000,000 6,330,294
Brooklyn Union Gas Co. Project, Series D, MBIA
Insured, Inverse Floater, 7.126%, 7/8/26(1) Aaa/AAA/A 2,000,000 1,616,870
----------------------------------------------------------------------------------------------------------------
New York State Environmental Facilities Corp
Pollution Control Revenue Bonds, State Water
Revolving Fund--New York City Municipal Water,
5.875%, 6/15/14 Aa/A-/AA 14,050,000 13,826,196
----------------------------------------------------------------------------------------------------------------
New York State Housing Finance Agency:
Revenue Bonds, Service Contracts, Series D,
5.375%, 3/15/23 Baa1/BBB 9,000,000 7,379,694
Revenue Refunding Bonds, New York City Health
Facility, Series A, 7.90%, 11/1/99 Baa/BBB+ 3,500,000 3,825,643
Revenue Refunding Bonds, New York City Health
Facility, Series A, 8%, 11/1/08 Baa/BBB+ 3,240,000 3,596,458
Revenue Refunding Bonds, State University
Construction, Escrowed to Maturity, Prerefunded,
Series A, 7.90%, 11/1/06 Aaa/AAA 1,750,000 2,058,364
----------------------------------------------------------------------------------------------------------------
New York State Local Government Assistance Corp
Revenue Bonds:
Prerefunded, Series C, 7%, 4/1/21(2) Aaa/AAA/AAA 9,455,000 10,586,403
Prerefunded, Series D, 6.75%, 4/1/21 Aaa/AAA/AAA 4,700,000 5,244,358
Series A, 5.375%, 4/1/14 A/A/A+ 5,500,000 5,069,366
Series C, 5.50%, 4/1/22 A/A/A+ 16,175,000 14,818,401
----------------------------------------------------------------------------------------------------------------
New York State Local Government Assistance Corp
Revenue Refunding Bonds, Series B, 5.50%, 4/1/21 A/A/A+ 13,000,000 11,894,778
</TABLE>
7 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
----------------------------------------------------------------------------------------------------------------
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York New York State Local Government Assistance Corp
(continued) Revenue Refunding Bonds, Series C, 5%, 4/1/21 A/A/A+ $ 15,000,000 $ 12,707,325
----------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency:
Revenue Bonds:
Long-Term Health Care, Series C, CGIC Insured,
6.40%, 11/1/14 Aaa/AAA 3,000,000 3,049,317
Mental Health Services Facilities Improvement Project:
Prerefunded, Series A, 8.875%, 8/15/07 Aaa/AAA 3,000,000 3,337,656
Prerefunded, Series B, 7.875%, 8/15/20 Aaa/AAA 4,235,000 4,885,572
Series A, 7.70%, 2/15/18 Baa1/BBB+ 765,000 813,136
Series A, 8.875%, 8/15/07 Baa1/BBB+ 6,800,000 7,463,517
Series A, FGIC Insured, 6.375%, 8/15/17 Aaa/AAA/AAA 5,000,000 5,080,734
Series B, 7.875%, 8/15/20 Baa1/BBB+ 2,020,000 2,239,172
Saint Luke's Hospital Center Mtg., Prerefunded,
Series B, FHA Insured, 7.45%, 2/15/29 Aaa/AAA 7,500,000 8,434,432
St. Francis Hospital Project, Series 1988A, FGIC
Insured, 7.625%, 11/1/21 Aaa/AAA/AAA 2,690,000 2,930,155
Revenue Refunding Bonds:
Hospital Insured Mtg., Series A, FHA Insured,
5.25%, 8/15/14 Aa/AAA 16,940,000 15,297,428
Mental Health Services Facilities Improvement
Project, Series F, 5.375%, 2/15/14 Baa1/BBB+ 6,600,000 5,821,306
Mental Health Services Facilities Improvement
Project, Series F, FSA Insured, 5.25%, 2/15/21 Aaa/AAA 4,400,000 3,884,940
----------------------------------------------------------------------------------------------------------------
New York State Mtg. Agency Revenue Bonds:
Eighth Series C, Verex Pool Insured, 8.40%, 10/1/17 Aa/NR 1,700,000 1,788,743
Homeowner Mtg.:
Series 1, 7.95%, 10/1/21 Aa/NR 2,270,000 2,356,578
Series GG, 7.60%, 10/1/18 Aa/NR 175,000 179,868
Series UU, FHA Insured, 7.75%, 10/1/23 Aa/NR 2,000,000 2,134,800
Inverse Floater, 5.342%, 10/1/24(1) NR/NR 9,000,000 6,131,816
Ninth Series B, Verex Pool Insured, 8.30%, 10/1/17 Aa/NR 1,720,000 1,785,372
----------------------------------------------------------------------------------------------------------------
New York State Power Authority Revenue Bonds,
Series Y, 6.50%, 1/1/11 Aa/AA- 2,500,000 2,602,970
----------------------------------------------------------------------------------------------------------------
New York State Power Authority Revenue Refunding
Bonds, Series V, 8%, 1/1/17 Aa/AA- 5,580,000 6,067,279
----------------------------------------------------------------------------------------------------------------
New York State Thruway Authority Revenue Bonds,
Service Contract, Series A, 5.75%, 1/1/19 A1/A 10,000,000 9,611,290
----------------------------------------------------------------------------------------------------------------
New York State Urban Development Corp.:
Revenue Bonds:
Correctional Facilities Capital Project, Prerefunded,
Series G, 7%, 1/1/17 Aaa/NR 2,000,000 2,206,750
Correctional Facilities Capital Project, Prerefunded,
Series G, 7.25%, 1/1/14 Aaa/NR 3,650,000 4,065,552
Revenue Refunding Bonds:
Correctional Facilities Project, 5.50%, 1/1/15 Baa1/BBB/A 10,000,000 9,018,610
Correctional Facilities Project, 5.50%, 1/1/18 Baa1/BBB/A 17,490,000 15,634,484
</TABLE>
8 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Ratings: Moody's/ Face Market Value
----------------------------------------------------------------------------------------------------------------
S&P's/Fitch's Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York Onondaga County, New York Resources Recovery
(continued) Agency Revenue Bonds, Resources Recovery
Facilities Project, 7%, 5/1/15 Baa2/NR/A- $ 15,600,000 $ 15,221,573
----------------------------------------------------------------------------------------------------------------
Port Authority of New York & New Jersey
Consolidated Revenue Bonds:
Sixty Series, 8.25%, 4/1/23 A1/AA-/AA- 8,775,000 8,961,301
Sixty-Second Series, 8%, 12/1/23 A1/AA-/AA- 1,370,000 1,432,515
----------------------------------------------------------------------------------------------------------------
Triborough Bridge & Tunnel Authority of New York
General Purpose Revenue Bonds:
Series A, 5%, 1/1/12 A1/AA-/AA- 9,000,000 9,456,758
Series A, 5%, 1/1/12 Aa/A+ 15,755,000 14,288,885
Series A, 5%, 1/1/15 Aa/A+ 7,500,000 6,693,989
Series B, Zero Coupon, 1/1/09 Aa/A+ 3,925,000 1,766,830
Series B, Zero Coupon, 1/1/16 Aa/A+ 2,540,000 731,502
Series B, Zero Coupon, 1/1/17 Aa/A+ 13,045,000 3,530,667
Series X, 6%, 1/1/14 Aa/A+ 14,510,000 14,556,243
Series Y, 5.50%, 1/1/17 Aa/A+ 15,000,000 14,111,339
------------
585,973,440
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Puerto Rico Commonwealth Aqueduct & Sewer
Possessions--20.8% Authority Revenue Bonds, Escrowed to Maturity,
10.25%, 7/1/09 Aaa/AAA 500,000 674,690
----------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth General Obligation
Refunding Bonds:
5.25%, 7/1/18 Baa1/A 20,000,000 17,741,840
Prerefunded, 7.70%, 7/1/20 NR/AAA 5,000,000 5,715,685
Series A, 6%, 7/1/14 Baa1/A 12,000,000 11,810,434
YCNS, FSA Insured, Inverse Floater, 7.432%, 7/1/20(1) Aaa/AAA 11,500,000 10,661,603
----------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway &
Transportation Authority Revenue Bonds:
Prerefunded, Series S, 6.50%, 7/1/22 NR/AAA 13,500,000 14,850,418
Prerefunded, Series T, 6.50%, 7/1/22 NR/AAA 2,790,000 3,069,086
Series W, Inverse Floater, 6.406%, 7/1/10(1) Baa1/A 9,000,000 7,920,665
----------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure
Financing Authority Special Tax Revenue Bonds,
Series A, 7.75%, 7/1/08 Baa1/BBB+ 6,000,000 6,558,612
----------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority:
Revenue Bonds:
Prerefunded, Series 0, 7.125%, 7/1/14 Baa1/AAA 6,145,000 6,759,457
Series T, 6%, 7/1/16 Baa1/A- 7,500,000 7,306,042
Revenue Refunding Bonds:
Series N, 5%, 7/1/12 Baa1/A- 6,545,000 5,738,348
Series U, 6%, 7/1/14 Baa1/A- 7,025,000 6,898,487
----------------------------------------------------------------------------------------------------------------
Puerto Rico Housing Bank & Finance Agency Single
Family Mtg. Revenue Bonds, Homeownership--
Fourth Portfolio, Prerefunded, FHA Insured,
8.50%, 12/1/18 Aaa/NR 1,580,000 1,919,510
----------------------------------------------------------------------------------------------------------------
Puerto Rico Industrial, Medical & Environmental
Pollution Control Revenue Bonds, American
Airlines, Inc. Project, Series A, 8.75%, 12/1/25 Baa1/BB+ 850,000 886,018
----------------------------------------------------------------------------------------------------------------
Puerto Rico Industrial, Medical & Environmental
Pollution Control Revenue Bonds, Warner Lambert
Co. Project, 7.60%, 5/1/14 Aaa/NR 3,000,000 3,261,621
</TABLE>
9 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
----------------------------------------------------------------------------------------------------------------
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Possessions Puerto Rico Public Buildings Authority Guaranteed
(continued) Public Education & Health Facilities:
Revenue Bonds, Prerefunded, Series J, 7.25%, 7/1/17 Aaa/AAA $ 6,000,000 $ 6,531,053
Revenue Bonds, Prerefunded, Series L, 6.875%, 7/1/21 Aaa/AAA 5,400,000 6,060,355
Revenue Refunding Bonds, Series M, 5.75%, 7/1/15 Baa1/A 11,500,000 10,893,788
----------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority Revenue
Guaranteed Refunding Bonds, Series L, 5.75%, 7/1/16 Baa1/A 12,100,000 11,474,053
----------------------------------------------------------------------------------------------------------------
Puerto Rico Telephone Authority Revenue Bonds,
MBIA Insured, Inverse Floater, 6.51%, 1/16/15(1) Aaa/AAA 11,000,000 9,611,238
------------
156,343,003
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $746,701,277) 98.8% 742,316,443
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.2 9,180,247
------ ------------
Net Assets 100.0% $751,496,690
====== ============
1. Represents the current interest rate for a variable rate bond. Variable rate 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. The multiplier for these inverse floaters is 1. Inverse floaters amount to $76,164,614 or
10.1% of the Fund's net assets, at March 31, 1995.
</TABLE>
<TABLE>
<CAPTION>
2. Securities with an aggregate market value of $1,959,408 are held in collateralized accounts to cover initial
margin requirements on open futures sales contracts, as follows:
Type of Contract Number of Contracts Face Amount
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Nts., 6/95 600 $60,000,000
The market value of the open contracts was $62,343,750 at March 31, 1995, with a net unrealized gain of
$1,227,343.
</TABLE>
<TABLE>
<CAPTION>
Distribution of investments by industry, as a percentage of total investments at value, is as follows:
Industry Market Value Percent
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Transportation $135,221,975 18.2%
Education 123,672,603 16.7
General Obligation Bonds 122,418,290 16.4
Utilities 116,210,817 15.6
Lease/Rental 86,570,544 11.7
Special Tax Bonds 72,171,324 9.7
Hospitals 36,851,406 5.0
Pollution Control 23,511,142 3.2
Housing 21,540,703 2.9
Industrial Development 4,147,639 0.6
------------ -----
$742,316,443 100.0%
============ =====
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 1995 (Unaudited)
----------------------------------------------------------------------------------------------------------------
====================================================================================================================================
<S> <C> <C>
Assets Investments, at value (cost $746,701,277)--see accompanying statement $742,316,443
----------------------------------------------------------------------------------------------------------------
Cash 101,953
----------------------------------------------------------------------------------------------------------------
Receivables:
Interest 13,075,610
Shares of beneficial interest sold 1,066,221
----------------------------------------------------------------------------------------------------------------
Other 37,032
------------
Total assets 756,597,259
----------------------------------------------------------------------------------------------------------------
Liabilities Payables and other liabilities:
Dividends 2,581,635
Shares of beneficial interest redeemed 1,850,754
Distribution and service plan fees--Note 5 434,000
Transfer and shareholder servicing agent fees--Note 5 28,711
Trustees' fees 5,384
Other 200,085
------------
Total liabilities 5,100,569
====================================================================================================================================
Net Assets $751,496,690
============
====================================================================================================================================
Composition of Paid-in capital $761,699,818
Net Assets ----------------------------------------------------------------------------------------------------------------
Undistributed net investment income 1,195,467
----------------------------------------------------------------------------------------------------------------
Accumulated net realized loss from investment transactions (5,786,418)
----------------------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments--Note 3 (5,612,177)
----------------------------------------------------------------------------------------------------------------
Net assets $751,496,690
============
====================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on
net assets of $668,466,673 and 54,841,749 shares of beneficial interest outstanding) $ 12.19
Maximum offering price per share (net asset value
plus sales charge of 4.75% of offering price) $ 12.80
----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $83,030,017 and 6,808,905 shares of beneficial interest outstanding) $ 12.19
</TABLE>
See accompanying Notes to Financial Statements
11 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended March 31, 1995 (Unaudited)
----------------------------------------------------------------------------------------------------------------
====================================================================================================================================
<S> <C> <C>
Investment Income Interest $24,891,143
====================================================================================================================================
Expenses Management fees--Note 5 1,872,377
----------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 5 744,433
Class B--Note 5 375,961
----------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 5 298,722
----------------------------------------------------------------------------------------------------------------
Shareholder reports 81,829
----------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 40,853
----------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 35,359
----------------------------------------------------------------------------------------------------------------
Legal and auditing fees 22,638
----------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 5,777
Class B 2,719
----------------------------------------------------------------------------------------------------------------
Other 39,203
-----------
Total expenses 3,519,871
====================================================================================================================================
Net Investment Income 21,371,272
====================================================================================================================================
Realized and Net realized loss on investments (7,330,880)
Unrealized ----------------------------------------------------------------------------------------------------------------
Gain (Loss) Net change in unrealized appreciation or depreciation on investments 22,714,503
on Investments -----------
Net realized and unrealized gain on investments 15,383,623
====================================================================================================================================
Net Increase in Net Assets Resulting From Operations $ 36,754,895
============
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------------------------------
Six Months Ended
March 31, 1995 Year Ended
(Unaudited) Sept. 30, 1994
====================================================================================================================================
<S> <C> <C>
Operations Net investment income $ 21,371,272 $ 44,947,364
----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (7,330,880) 1,578,448
----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 22,714,503 (92,939,878)
------------- -------------
Net increase (decrease) in net assets resulting from operations 36,754,895 (46,414,066)
====================================================================================================================================
Dividends and Dividends from net investment income:
Distributions to Class A ($.3576 and $.7155 per share, respectively) (19,849,704) (41,273,404)
Shareholders Class B ($.3135 and $.6033 per share, respectively) (2,012,035) (2,926,006)
----------------------------------------------------------------------------------------------------------------
Dividends in excess of net investment income:
Class A ($.0081 per share) -- (464,748)
Class B ($.0201 per share) -- (32,947)
----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments:
Class A ($.026 per share) -- (1,480,818)
Class B ($.026 per share) -- (97,630)
----------------------------------------------------------------------------------------------------------------
Distributions in excess of net realized gain on investments:
Class A ($.1144 per share) -- (6,524,436)
Class B ($.1144 per share) -- (430,153)
====================================================================================================================================
Beneficial Net increase (decrease) in net assets resulting from
Interest Class A beneficial interest transactions--Note 2 (31,840,644) 22,278,985
Transactions ----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Class B beneficial interest transactions--Note 2 7,267,862 40,649,454
====================================================================================================================================
Net Assets Total decrease (9,679,626) (36,715,769)
----------------------------------------------------------------------------------------------------------------
Beginning of period 761,176,316 797,892,085
------------ ------------
End of period (including undistributed net investment income
of $1,195,467 and $1,685,934, respectively) $ 751,496,690 $ 761,176,316
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Financial Highlights
----------------------------------------------------------------------------------------------------------------
Class A Class B
--------------------------------------------------------- --------------------------------
Six Months Six Months
Ended Ended Year Ended
March 31, 1995 Year Ended September 30, March 31, 1995 Sept. 30,
(Unaudited) 1994 1993 1992 1991 1990 (Unaudited) 1994 1993(1)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $ 11.92 $ 13.50 $ 12.59 $ 12.21 $ 11.61 $ 11.87 $ 11.93 $ 13.50 $ 13.07
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .36 .74 .73 .79 .81 .83 .31 .64 .36
Net realized and unrealized gain
(loss) on investments .27 (1.46) 1.01 .47 .64 (.25) .27 (1.45) .44
------ ------ ------ ------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations .63 (.72) 1.74 1.26 1.45 .58 .58 (.81) .80
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.36) (.71) (.75) (.75) (.81) (.83) (.32) (.60) (.37)
Dividends in excess of net
investment income -- (.01) -- -- -- -- -- (.02) --
Distributions from net realized
gain on investments -- (.03) (.08) (.13) (.04) (.01) -- (.03) --
Distributions in excess of net
realized gain on investments -- (.11) -- -- -- -- -- (.11) --
------ ------ ------ ------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.36) (.86) (.83) (.88) (.85) (.84) (.32) (.76) (.37)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.19 $ 11.92 $ 13.50 $ 12.59 $ 12.21 $ 11.61 $ 12.19 $ 11.93 $ 13.50
====== ====== ====== ====== ====== ====== ====== ====== ======
====================================================================================================================================
Total Return, at Net Asset Value(2) 5.44% (5.55)% 14.33% 10.72% 12.93% 4.95% 4.95% (6.22)% 6.56%
====================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $668,467 $687,233 $756,934 $530,260 $349,480 $250,012 $83,030 $73,943 $40,958
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $648,096 $738,747 $652,327 $436,876 $292,134 $227,504 $75,172 $61,008 $20,454
- ------------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 54,842 57,644 56,087 42,119 28,617 21,533 6,809 6,200 3,033
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 6.00%(3) 5.68% 5.66% 6.33% 6.81% 6.97% 5.21%(3) 4.88% 4.45%(3)
Expenses .90%(3) .86% .91% .96% .96% .99% 1.67%(3) 1.65% 1.73%(3)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 6.3% 9.4% 39.1% 30.5% 8.9% 13.3% 6.3% 9.4% 39.1%
1. For the period from March 1, 1993 (inception of offering) to September 30, 1993.
2. Assumes a hypothetical initial 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. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one full year.
3. Annualized.
4. 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 six months ended March 31, 1995 were $45,588,316 and
$72,870,419, respectively. See accompanying Notes to Financial Statements.
</TABLE>
14 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
----------------------------------------------------------------------------------------------------------------
====================================================================================================================================
<S> <C>
1. Significant Oppenheimer New York Tax-Exempt Fund (the Fund) is registered under the Investment Company Act of 1940, as
Accounting amended, as a diversified, open-end management investment company. The Fund's investment advisor is Oppenheimer
Policies Management Corporation (the Manager). The Fund offers both Class A and Class B shares. Class A shares are sold
with a front-end sales charge. Class B shares may be subject to a contingent deferred sales charge. Both 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 asked price 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
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. Forward contracts are valued based on the closing prices of the forward currency contract rates in the
London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. Options are valued
based upon the last sale price on the principal exchange on which the option is traded or, in the absence of any
transactions that day, the value is based upon the last sale price on the prior trading date if it is within the
spread between the closing bid and asked prices. If the last sale price is outside the spread, the closing bid
or asked price closest to the last reported sale price is used.
----------------------------------------------------------------------------------------------------------------
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 March 31, 1995, a provision of $27,338 was made for the Fund's projected benefit
obligations, and a payment of $2,786 was made to a retired trustee, resulting in an accumulated liability of
$152,318 at March 31, 1995.
----------------------------------------------------------------------------------------------------------------
Distributions to Shareholders. The Fund intends to declare dividends separately for Class A and Class B 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. 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. Effective October 1, 1993, the Fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distributions by
Investment Companies. As a result, the Fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and distributions determined in accordance
with income tax regulations.
</TABLE>
15 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
----------------------------------------------------------------------------------------------------------------
====================================================================================================================================
<S> <C>
1. Significant Other. Investment transactions are accounted for on the date the investments are purchased or sold (trade date).
Accounting Realized gains and losses on investments and unrealized appreciation and depreciation are determined on an
Policies identified cost basis, which is the same basis used for federal income tax purposes. Original issue discount on
(continued) 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.
====================================================================================================================================
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>
<TABLE>
<CAPTION>
Six Months Ended March 31, 1995 Year Ended September 30, 1994
------------------------------- ---------------------------------
Shares Amount Shares Amount
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 2,747,484 $ 32,217,228 8,954,607 $ 115,070,127
Dividends and distributions reinvested 1,211,816 14,101,602 2,804,397 35,919,371
Redeemed (6,761,301) (78,159,474) (10,201,903) (128,710,513)
---------- ------------ ----------- -------------
Net increase (decrease) (2,802,001) $(31,840,644) 1,557,101 $ 22,278,985
========== ============ =========== =============
---------------------------------------------------------------------------------------------------------------
Class B
Sold 1,048,103 $ 12,298,511 3,489,946 $ 44,671,139
Dividends and distributions reinvested 112,544 1,310,991 183,542 2,334,544
Redeemed (551,325) (6,341,640) (507,286) (6,356,229)
---------- ------------ ----------- -------------
Net increase 609,322 $ 7,267,862 3,166,202 $ 40,649,454
========== ============ =========== =============
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
<S> <C>
3. Unrealized At March 31, 1995, net unrealized depreciation on investments of $5,612,177 was composed of gross appreciation
Gains and of $22,999,296, and gross depreciation of $28,611,473.
Losses on
Investments
====================================================================================================================================
4. Futures The Fund may buy and sell interest rate futures contracts in order to gain exposure to or protect against
Contracts 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 March 31, 1995, the Fund had outstanding futures contracts
to sell debt securities as follows:
Expiration Number of Valuation as of Unrealized
Date Futures Contracts March 31, 1995 Appreciation
---------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts. 6/95 600 $62,343,750 $1,227,343
</TABLE>
16 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
====================================================================================================================================
<S> <C>
5. Management Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund
Fees And Other which provides for an annual fee of .60% on the first $200 million of net assets, .55% on the next $100 million,
Transactions .50% on the next $200 million, .45% on the next $250 million, .40% on the next $250 million and .35% on net
With Affiliates assets in excess of $1 billion.
For the six months ended March 31, 1995, commissions (sales charges paid by investors) on
sales of Class A shares totaled $665,711, of which $120,859 was retained by Oppenheimer Funds 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 shares totaled $408,272, of which $11,029 was
paid to an affiliated broker/dealer. During the six months ended March 31, 1995, OFDI received contingent
deferred sales charges of $114,419 upon redemption of Class B shares, as reimbursement for sales commissions
advanced by OFDI at the time of sale of such shares.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and for other registered investment companies. OSS's total costs of
providing such services are allocated ratably to these companies.
Under separate approved plans, each class may expend up to .25% of its net assets annually
to reimburse OFDI 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 institutions. In addition,
Class B shares are subject to an asset-based sales charge of .75% of net assets annually, to reimburse OFDI for
sales commissions paid from its own resources at the time of sale and associated financing costs. In the event
of termination or discontinuance of the Class B plan, the Board of Trustees may allow the Fund to continue
payment of the asset-based sales charge to OFDI for distribution expenses incurred on Class B shares sold prior
to termination or discontinuance of the plan. During the six months ended March 31, 1995, OFDI paid $11,496 and
$1,970, respectively, to an affiliated broker/dealer as reimbursement for Class A and Class B personal service
and maintenance expenses and retained $321,488 as reimbursement for Class B sales commissions and service fee
advances, as well as financing costs.
</TABLE>
17 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Oppenheimer New York Tax-Exempt Fund
---------------------------------------------------------------------------------------------------------------
====================================================================================================================================
<S> <C>
Officers and Trustees Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert E. Patterson, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
====================================================================================================================================
Investment Advisor Oppenheimer Management Corporation
====================================================================================================================================
Distributor Oppenheimer Funds Distributor, Inc.
====================================================================================================================================
Transfer and Shareholder Oppenheimer Shareholder Services
Servicing Agent
====================================================================================================================================
Custodian of Citibank, N.A.
Portfolio Securities
====================================================================================================================================
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 New York Tax-Exempt Fund. This report must be
preceded or accompanied by a Prospectus of Oppenheimer New York Tax-Exempt Fund. For material information
concerning the Fund, see the Prospectus.
</TABLE>
18 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
---------------------------------------------------------------------------------------------------------------
OppenheimerFunds Family
---------------------------------------------------------------------------------------------------------------
====================================================================================================================================
<S> <C> <C>
OppenheimerFunds offers over 35 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 30 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 2.4 million shareholder accounts and more than $30
billion under Oppenheimer's management and that of our affiliates.
At OppenheimerFunds, we don't charge a fee to exchange shares of eligible funds of the same
class. And you can exchange shares easily by mail or by telephone.1 For more information on
OppenheimerFunds, please contact your financial advisor 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.
====================================================================================================================================
Stock Funds Discovery Fund Global Fund
Global Emerging Growth Fund(2) Oppenheimer Fund
Time Fund Value Stock Fund
Target Fund Gold & Special Minerals Fund
Growth Fund(3)
====================================================================================================================================
Stock & Bond Funds Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
====================================================================================================================================
BondFunds High Yield Fund Strategic Short-Term Income Fund
Champion High Yield Fund Investment Grade Bond Fund
Strategic Income & Growth Fund Mortgage Income Fund
Strategic Income Fund U.S. Government Trust
Strategic Diversified Income Fund Limited-Term Government Fund
Strategic Investment Grade Bond Fund
====================================================================================================================================
Tax-Exempt Funds New York Tax-Exempt Fund(4) New Jersey Tax-Exempt Fund(4)
California Tax-Exempt Fund(4) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(4) Insured Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(4) Intermediate Tax-Exempt Bond Fund
====================================================================================================================================
Money Market Funds Money Market Fund Cash Reserves
1. Exchange privileges are subject to change or termination.
2. Formerly Global Bio-Tech Fund.
3. Formerly Special Fund.
4. Available only to residents of certain states.
OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc., Two World Trade Center,
New York, NY10048-0203.
(C) Copyright 1995 Oppenheimer Management Corporation. All rights reserved.
</TABLE>
19 Oppenheimer New York Tax-Exempt Fund
<PAGE>
Information
General Information
Monday-Friday 8:30 a.m.-8 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
- -------------------------------------
RS0865.001.0595 May 31, 1995
[PHOTOGRAPH]
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
"How may I help you?"
As an OppenheimerFunds 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 OppenheimerFunds 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 OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- --------------------------------------------------------------------------------
[LOGO] Oppenheimer Funds(R) ---------------
Oppenheimer Funds Distributor, Inc. Bulk Rate
P.O. Box 5270 U.S. Postage
Denver, CO 80217-5270 PAID
Permit No. 314
Farmingdale, NY
---------------
