<PAGE>
Oppenheimer New York Tax-Exempt Fund
Annual Report September 30, 1995
[PHOTO]
"We want
investment
income that
won't add
to our taxes."
[LOGO]
<PAGE>
This Fund is for people who need an investment that's EXEMPT from income TAXES.
YIELD
STANDARDIZED YIELDS
For the 30 Days Ended 9/30/95:4
Class A
4.66%
Class B
4.12%
Class C
4.05%
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.(1) Your income 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 12 months ended 9/30/95 for Class A and
B shares were 9.58% and 8.75%, respectively.(2)
Your Fund's average annual total returns for Class A shares for the 1-, 5-
and 10-year periods ended 9/30/95 were 4.37%, 7.11% and 8.25%, respectively. For
Class B shares, average annual total returns for the 1-year period ended 9/30/95
and since inception of the Class on 3/1/93 were 3.75% and 2.12%,
respectively.(3)
OUTLOOK
"While returns for the first half of the year were dominated by price
appreciation, we believe the rest of this year and the next will be more typical
for this market--where income is the key component of total return. As a result,
we remain committed to our strategy--as always, we're working to maintain
competitive income and reduce risk for investors."
Robert Patterson, Portfolio Manager
September 30, 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. 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. Based on the change in net asset value per share from 9/30/94 to 9/30/95,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
3. Class A returns show results of hypothetical investments on 9/30/94, 9/30/90
and 8/16/84 (inception of class), after deducting the current maximum initial
sales charge of 4.75%. The Fund's maximum sales charge rate on Class A shares
was lower during a portion of the periods shown, and actual investment
performance would be affected by that change. Class B returns show results of
hypothetical investments on 9/30/94 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). Total return data is not yet available for Class C shares
(inception 8/29/95). An explanation of the different total returns is in the
Fund's prospectus.
4. Standardized yield is net investment income calculated on a yield-to-maturity
basis for the 30-day period ended 9/30/95, 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 Oppenheimer New York Tax-Exempt Fund
<PAGE>
[PICTURE]
Donald W. Spiro
President
Oppenheimer New York
Tax-Exempt Fund
[PICTURE]
Jon S. Fossel
Chairman
Oppenheimer
Management
Corporation
Dear OppenheimerFunds Shareholder,
Like nearly all fixed income securities, municipal bonds have enjoyed the
benefits of declining long-term interest rates in 1995.
Although the Federal Reserve Board did not reduce short-term interest rates
until July 6, long-term interest rates--which are driven by market forces--had
been falling for some time based on positive underlying market fundamentals. And
when interest rates fall, bonds appreciate in value. As a result, most bond
markets, including the municipal bond market, have had a strong year thus far.
Another factor supporting the overall fixed income market has been the
continued focus in Washington on the trade imbalance and on budget deficit
reduction. This focus should further support the recently resurgent dollar
which, along with low interest rates in developed countries around the world,
has started attracting foreign investors back to U.S. fixed income markets in
search of higher yields.
One development that has sparked some concern among municipal investors,
however, is the discussion in Congress regarding possible changes to the income
tax system. There are several proposals to create a "flat" income tax, in which
the level of taxation would be changed to the same percentage for all taxpayers
in exchange for fewer tax deductions. Other proposals would exclude all
dividends and interest from taxation. If any of these proposals were to be
enacted, the relative advantage of municipal bonds over taxable bonds would
become smaller. While we can't be certain where these proposals will lead, we
believe that the odds of significant tax reform in the near future are quite low
and that the more likely scenario will be modifications to the existing tax
structure. In the meantime, the tax proposals have put some temporary downward
pressure on municipal bond prices.
Consequently, we believe municipal bonds are currently trading at very
attractive levels relative to taxable investments. Typically, we would expect
long-term municipal bonds to provide yields of about 80% of taxable bonds.
Recently, however, municipal bonds were trading at yields of more than 90% of
taxable securities. Couple that with inflation of only about 3%, and it becomes
clear that municipal bonds are producing some of the best real, inflation-
adjusted returns in some time.
Although the economy has shown a variety of mixed signals recently, we
believe the Federal Reserve Board will not return to a tightening policy again
in the near future, because the U.S. economy appears to be in a moderate growth
period with no inflation. As a result, we do not expect the bond market to
weaken any time soon and continue to be optimistic about municipal bonds.
Your portfolio manager discusses the outlook for your Fund on the following
pages. Thank you for your confidence in OppenheimerFunds, and we look forward to
helping you reach your investment goals in the future.
/s/ Donald W. Spiro /s/ Jon S. Fossel
Donald W. Spiro Jon S. Fossel
October 23, 1995
3 Oppenheimer New York Tax-Exempt Fund
<PAGE>
[PHOTO] [PHOTO]
Q+A AN INTERVIEW WITH YOUR FUND'S MANAGER.
Q What is your OUTLOOK for the Fund?
THE BOND MARKET RALLIED SUBSTANTIALLY OVER THE COURSE OF THE YEAR. TO WHAT
EXTENT DID MUNICIPAL BONDS PARTICIPATE IN THE RALLY?
The bond market in general, municipal bonds included, experienced a tremendous
run-up since last fall.
The rally was driven primarily by the Federal Reserve's move away from a
tight monetary policy. The Fed had been raising interest rates steadily
for a year out of fears that unchecked economic growth would spark inflation.
Although the municipal market had been rallying since December, in February
1995, on evidence that the economy's growth rate was indeed slowing, the Fed
stopped raising rates and the bond market took off.
Add this background to an environment where supply was small in municipals,
and you have a good picture of why the strength of the rally was so powerful.
In fact, the municipal bond market had its best performance in nine years
in the first quarter of this year.
HAS CONGRESSIONAL DISCUSSION OF TAX REFORM IMPACTED THE DEMAND FOR MUNICIPAL
BONDS?
Tax reform talks have limited the appreciation in the prices of muni bonds,
particularly in the longer maturities. For investors who see tax reform as a
threat, the appeal of municipal bonds is in the knowledge that once passed, any
reform would take several years to implement. We've been buying bonds with
maturities of ten years or less as well as bonds in the 15- to 20-year range,
where values are generally good.
WHAT OTHER FACTORS ARE AT WORK IN THIS MARKET?
The counterbalance in this market has been the relationship between supply and
demand. Supply was smaller
[PHOTO]
4 Oppenheimer New York Tax-Exempt Fund
<PAGE>
FACING PAGE
Top left: Robert Patterson,
Portfolio Manager
Top right: The trading desk
Bottom left: Len Darling, Executive
VP, Director of Fixed Income
Investments, with Jon Fossel,
Chairman, Oppenheimer
Management Corporation
THIS PAGE
Robert Patterson
A Our outlook remains POSITIVE.
over the period--with fewer new issues brought to market this year than in
recent years, plus a record number of bonds maturing or being called over the
summer--and demand, regardless of reform talks, was healthy. While tax reform
fears kept some investors out of the market, municipal bonds' yields versus
Treasuries attracted retail buyers and insurance companies.
DID THE DOWNGRADE OF NEW YORK CITY'S GENERAL OBLIGATION BONDS IMPACT THE FUND?
IN WHAT TYPES OF BONDS ARE YOU INVESTING IN THE CURRENT MARKET?
Our focus in the portfolio has been to carefully evaluate bonds in terms of
yield versus potential risk. In the case of New York City, the downgrade had
been reflected in the marketplace. We added a modest position where we felt that
the market's perceived concerns outweighed the actual risk. This perception held
the bond prices down, which made the yield extremely attractive. And the bonds
have appreciated since we bought them.
In New York State, we've de-emphasized electric utilities for the time
being due to concerns over the impact of proposed deregulation. We'll continue
monitoring them closely; however, we expect to find opportunities in that sector
going forward.
We've continued to focus on bonds that carry "call protection," a feature
that prevents them from being redeemed ahead of their scheduled maturity by the
issuer, which helps us manage income, and we've added to shorter maturity
prerefunded bonds for the relative stability they tend to offer.
WHAT IS YOUR OUTLOOK FOR THE FUND AND THE MARKET GOING FORWARD?
Our outlook remains positive. We believe that, because of the size of the groups
opposing it, any revisions to the tax code in the near future will probably not
be drastic. We're taking advantage of the fears surrounding the talks by buying
bonds which should do well if reforms, as we expect, are minor.
Demand remains steady, both from institutional investors and others
looking for income rather than tax benefits. In addition, the rally in the
stock market may support demand as well--when stocks are priced as high as they
are now, investors have a tendency to move into the bond market in an effort to
protect gains.
While returns for the first half of the year were dominated by price
appreciation, we believe the rest of this year and the next will be more typical
for this market--where income is the key component of total return. As a result,
we remain committed to our strategy--as always, we're working to maintain
competitive income and reduce risk for investors. / /
[PHOTO]
5 Oppenheimer New York Tax-Exempt Fund
<PAGE>
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--98.9%
- --------------------------------------------------------------------------------------------------------------------------------
NEW YORK--79.3% City of New York General Obligation Bonds:
Inverse Floater, 6.648%, 8/1/08(1) Baa1/BBB+ $ 9,250,000 $ 8,729,733
Inverse Floater, 7.652%, 8/1/13(1) Baa1/BBB+ 5,000,000 4,727,550
Inverse Floater, 7.652%, 8/1/14(1) Baa1/BBB+ 8,150,000 7,718,229
Prerefunded, Series F, 8.25%, 11/15/17 Aaa/BBB+ 7,820,000 9,482,743
Series A, 7.75%, 8/15/16 Baa1/BBB+ 2,500,000 2,740,262
Series B, 6.20%, 8/15/06 Baa1/BBB+/A- 3,500,000 3,555,041
Series B, 8.25%, 6/1/07 Baa1/BBB+ 1,750,000 2,044,663
Series B, FSA Insured, Inverse Floater, 6.40%,
10/1/07(1) Aaa/AAA 7,500,000 7,739,774
Series F, 8.25%, 11/15/17 Baa1/BBB+ 680,000 768,250
- --------------------------------------------------------------------------------------------------------------------------------
City of New York Health & Hospital Corp. Revenue
Refunding Bonds, Series A, AMBAC Insured,
Inverse Floater, 7.13%, 2/15/23(1) Aaa/AAA/AAA 8,300,000 7,537,396
- --------------------------------------------------------------------------------------------------------------------------------
City of New York Housing Development Corp.
Multifamily Housing Revenue Bonds:
Glenn Garden Project, 6.50%, 1/15/18 NR/NR 2,999,501 2,957,472
Keith Plaza Project, 6.50%, 2/15/18 NR/NR 1,981,315 1,944,512
- --------------------------------------------------------------------------------------------------------------------------------
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 1,571,767
- --------------------------------------------------------------------------------------------------------------------------------
City of New York Industrial Development Agency
Special Facility Revenue Bonds:
Terminal One Group Assn. Project, 6%, 1/1/15 A/A/A- 5,000,000 4,871,480
Terminal One Group Assn. Project, 6.125%, 1/1/24 A/A/A- 3,000,000 2,905,734
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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 7,928,619
Prerefunded, Series C, 7.75%, 6/15/20 Aaa/A- 17,250,000 20,254,379
Series B, 6.375%, 6/15/22 A/A-/A 6,100,000 6,188,754
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Dormitory Authority of the State of New York:
Revenue Bonds:
City University System, Prerefunded,
Series F, 7.875%, 7/1/07 Aaa/BBB 8,000,000 9,312,535
City University System, Series C, 6%, 7/1/16 Baa1/BBB 5,000,000 4,827,035
City University System, Series V, 5.60%, 7/1/10 Baa1/BBB 10,880,000 10,487,634
Department of Health, Prerefunded, 7.70%, 7/1/20 Aaa/BBB 2,750,000 3,181,321
Judicial Facilities Lease, Escrowed to Maturity,
MBIA--IBC Insured, 7.375%, 7/1/16 Aaa/AAA 2,300,000 2,655,934
Pooled Capital Program, Partially Prerefunded,
FGIC Insured, 7.80%, 12/1/05 Aaa/AAA/AAA 7,515,000 8,234,335
Rockefeller University System,
MBIA Insured, 7.375%, 7/1/14 Aaa/AAA 4,000,000 4,344,084
Revenue Refunding Bonds:
City University System, Second Series A, 5.75%,
7/1/18 Baa1/BBB 6,750,000 6,397,170
City University System, Series B, 6%, 7/1/14 Baa1/BBB 10,875,000 10,717,464
Fordham University System, FGIC Insured, 5.75%,
7/1/15 Aaa/AAA/AAA 9,100,000 9,056,556
</TABLE>
6 Oppenheimer New York Tax-Exempt Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED) New York University, Series A, MBIA Insured, 5%,
7/1/09 Aaa/AAA $ 9,000,000 $ 8,619,200
State University Educational Facilities System,
Prerefunded, Series B, 7.25%, 5/15/15 Aaa/BBB+ 15,230,000 17,284,374
State University Educational Facilities System,
Prerefunded, Series B, 7.25%, 5/15/15 Aaa/AAA 1,735,000 1,969,034
State University Educational Facilities System,
Series A, 5.25%, 5/15/15 Baa1/BBB+ 23,090,000 20,738,305
State University Educational Facilities System,
Series A, 5.25%, 5/15/21 Baa1/BBB+ 5,010,000 4,414,145
State University Educational Facilities System,
Series B, 7%, 5/15/16 Baa1/BBB+ 9,020,000 9,496,391
State University Educational Facilities, Prerefunded,
Series A, 7.70%, 5/15/12 Aaa/BBB+/A 9,000,000 10,381,922
- --------------------------------------------------------------------------------------------------------------------------------
Grand Central District Management Assn., Inc.
New York Business District Capital Improvement
Refunding Bonds:
5.125%, 1/1/14 A1/A 1,000,000 920,780
5.25%, 1/1/22 A1/A 2,500,000 2,253,442
- --------------------------------------------------------------------------------------------------------------------------------
New York State Energy Research & Development
Authority:
Electric Facilities Revenue Bonds:
Long Island Lighting Co., Series A, 7.15%, 12/1/20 Ba1/BB+ 7,500,000 7,639,769
Long Island Lighting Co., Series C, 6.90%, 8/1/22 Ba1/BB+ 9,200,000 9,255,163
Gas Facilities Revenue Bonds:
Brooklyn Union Gas Co. Project, Series B,
Inverse Floater, 9.718%, 7/1/26(1) A1/A/A 6,000,000 6,676,194
Brooklyn Union Gas Co. Project, Series D,
MBIA Insured, Inverse Floater, 7.224%, 7/8/26(1) Aaa/AAA/A 2,000,000 1,694,538
- --------------------------------------------------------------------------------------------------------------------------------
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 13,985,412
- --------------------------------------------------------------------------------------------------------------------------------
New York State Housing Finance Agency:
Revenue Refunding Bonds:
New York City Health Facility, Series A, 7.90%,
11/1/99 Baa2/BBB+ 3,500,000 3,841,127
New York City Health Facility, Series A, 8%, 11/1/08 Baa/A- 3,240,000 3,592,369
State University Construction, Escrowed to Maturity,
Series A, 7.90%, 11/1/06 Aaa/AAA 1,750,000 2,071,055
Service Contract Obligation Revenue Bonds:
Prerefunded, Series A, 7.375%, 9/15/21 Aaa/AAA 9,050,000 10,577,721
Series D, 5.375%, 3/15/23 Baa1/BBB 9,000,000 7,944,965
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New York State Local Assistance Corp.
Revenue Bonds, Prerefunded, Series A, 7%, 4/1/16 Aaa/AAA 14,000,000 15,916,558
- --------------------------------------------------------------------------------------------------------------------------------
New York State Local Government Assistance Corp.
Revenue Bonds:
Prerefunded, Series C, 7%, 4/1/21(2) Aaa/AAA/AAA 9,455,000 10,749,361
Prerefunded, Series D, 6.75%, 4/1/21 Aaa/AAA/AAA 4,700,000 5,335,364
Series A, 5.375%, 4/1/14 A/A/A+ 5,500,000 5,144,997
Series C, 5.50%, 4/1/22 A/A/A+ 16,175,000 14,947,348
Revenue Refunding Bonds:
Series B, 5.50%, 4/1/21 A/A/A+ 13,000,000 11,997,413
Series C, 5%, 4/1/21 A/A/A+ 15,000,000 12,861,990
</TABLE>
7 Oppenheimer New York Tax-Exempt Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED) 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 $ 2,800,000 $ 2,881,695
Mental Health Services Facilities Improvement Project:
Prerefunded, Series A, 8.875%, 8/15/07 Aaa/AAA 3,000,000 3,320,712
Prerefunded, Series B, 7.875%, 8/15/20 Aaa/AAA 4,235,000 4,944,036
Series A, 7.70%, 2/15/18 Baa1/BBB+ 765,000 814,000
Series A, 8.875%, 8/15/07 Baa1/BBB+ 6,800,000 7,385,555
Series A, FGIC Insured, 6.375%, 8/15/17 Aaa/AAA/AAA 5,000,000 5,116,700
Series B, 7.875%, 8/15/20 Baa1/BBB+ 2,020,000 2,236,724
St. Francis Hospital Project, Series 1988A,
FGIC Insured, 7.625%, 11/1/21 Aaa/AAA/AAA 2,690,000 2,918,486
St. Luke's Hospital Center Mtg., Prerefunded,
Series B, FHA Insured, 7.45%, 2/15/29 Aaa/AAA 7,500,000 8,528,549
Revenue Refunding Bonds:
Hospital Insured Mtg., Series A, FHA Insured,
5.25%, 8/15/14 Aa/AAA 16,940,000 15,604,721
Huntington Hospital Project, Prerefunded,
Series A, 8.125%, 11/1/14 Aaa/BBB 6,420,000 7,071,071
Mental Health Services, Series F,
FSA Insured, 5.25%, 2/15/21 Aaa/AAA 4,400,000 3,940,829
Mental Health Services, Series F,
MBIA--IBC Insured, 5.375%, 2/15/14 Aaa/AAA 6,600,000 6,168,194
- --------------------------------------------------------------------------------------------------------------------------------
New York State Mtg. Agency Revenue Bonds:
Eighth Series C, Verex Pool Insured, 8.40%, 10/1/17 Aa/NR 1,700,000 1,776,020
Homeowner Mtg., Series 1, 7.95%, 10/1/21 Aa/NR 2,270,000 2,343,330
Homeowner Mtg., Series GG, 7.60%, 10/1/18 Aa/NR 70,000 72,132
Homeowner Mtg., Series UU, FHA Insured, 7.75%,
10/1/23 Aa/NR 1,990,000 2,085,426
Inverse Floater, 6.262%, 10/1/24(1) NR/NR 9,000,000 6,740,243
Ninth Series B, Verex Pool Insured, 8.30%, 10/1/17 Aa/NR 1,720,000 1,774,166
- --------------------------------------------------------------------------------------------------------------------------------
New York State Power Authority Revenue &
General Purpose Bonds, Series Y, 6.50%, 1/1/11 Aa/AA- 2,500,000 2,638,470
- --------------------------------------------------------------------------------------------------------------------------------
New York State Power Authority Revenue Bonds,
Prerefunded, Series V, 8%, 1/1/17 NR/AA- 5,580,000 6,139,205
- --------------------------------------------------------------------------------------------------------------------------------
New York State Thruway Authority
General Revenue Bonds, Series A, 5.75%, 1/1/19 A1/A 10,000,000 9,712,029
- --------------------------------------------------------------------------------------------------------------------------------
New York State Urban Development Corp.:
Revenue Bonds:
Correctional Facilities Capital Project, Prerefunded,
Series G, 7%, 1/1/17 Aaa/NR 2,000,000 2,233,690
Correctional Facilities Capital Project, Prerefunded,
Series G, 7.25%, 1/1/14 Aaa/NR 3,650,000 4,111,542
Revenue Refunding Bonds:
Correctional Facilities Project, 5.50%, 1/1/15 Baa1/BBB/A 10,000,000 9,207,799
Correctional Facilities Project, 5.50%, 1/1/18 Baa1/BBB/A 17,490,000 15,903,341
- --------------------------------------------------------------------------------------------------------------------------------
Onondaga County, New York Resources
Recovery Agency Revenue Bonds,
Resources Recovery Facilities Project, 7%, 5/1/15 Baa/NR/A- 15,600,000 15,880,346
</TABLE>
8 Oppenheimer New York Tax-Exempt Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED) Port Authority of New York & New Jersey
Consolidated Revenue Bonds:
Sixty-Second Series, 8%, 12/1/23 A1/AA-/AA- $ 1,370,000 $ 1,412,585
Sixty-Third Series, 7.875%, 3/1/24 A1/AA-/AA- 9,000,000 9,350,181
- --------------------------------------------------------------------------------------------------------------------------------
Triborough Bridge & Tunnel Authority of New York
General Purpose Revenue Bonds:
Series A, 5%, 1/1/12 Aa/A+ 15,755,000 14,422,883
Series A, 5%, 1/1/15 Aa/A+ 7,500,000 6,800,797
Series X, 6%, 1/1/14 Aa/A+ 14,510,000 14,568,373
Series Y, 5.50%, 1/1/17 Aa/A+ 15,000,000 14,435,095
------------
605,728,288
- --------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--19.6% Puerto Rico Commonwealth Aqueduct & Sewer
Authority Revenue Bonds, Escrowed to Maturity,
10.25%, 7/1/09 Aaa/AAA 500,000 700,022
- --------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth General Obligation
Refunding Bonds:
5.25%, 7/1/18 Baa1/A 20,000,000 18,149,237
7.625%, 7/1/10 NR/AAA 3,000,000 3,460,335
Prerefunded, 7.70%, 7/1/20 NR/AAA 5,000,000 5,784,219
Series A, 6%, 7/1/14 Baa1/A 10,000,000 10,059,740
Yield Curve Notes, FSA Insured,
Inverse Floater, 7.683%, 7/1/20(1) Aaa/AAA 11,500,000 10,911,981
- --------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway &
Transportation Authority Revenue Bonds:
Prerefunded, Series S, 6.50%, 7/1/22 NR/AAA 13,500,000 15,131,056
Prerefunded, Series T, 6.50%, 7/1/22 NR/AAA 2,790,000 3,127,085
Series W, Inverse Floater, 6.774%, 7/1/10(1) Baa1/A 9,000,000 8,422,946
- --------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure
Financing Authority Special Tax Revenue Bonds,
Series A, 7.75%, 7/1/08 Baa1/BBB+ 6,000,000 6,554,778
- --------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority:
Revenue Bonds:
Prerefunded, Series O, 7.125%, 7/1/14 Baa1/AAA 6,145,000 6,820,335
Revenue Refunding Bonds:
Series N, 5%, 7/1/12 Baa1/A- 6,545,000 5,929,344
Series U, 6%, 7/1/14 Baa1/A- 3,000,000 2,986,305
- --------------------------------------------------------------------------------------------------------------------------------
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 1,943,120
- --------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Industrial, Medical & Environmental
Pollution Control Revenue Bonds:
American Airlines, Inc. Project, Series A, 8.75%,
12/1/25 Baa1/BB+ 850,000 872,227
Warner Lambert Co. Project, 7.60%, 5/1/14 Aaa/NR 3,000,000 3,309,111
- --------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority Guaranteed
Public Education & Health Facilities
Revenue Bonds:
Prerefunded, Series J, 7.25%, 7/1/17 Aaa/AAA 6,000,000 6,552,863
Prerefunded, Series L, 6.875%, 7/1/21 Aaa/AAA 5,400,000 6,167,329
Revenue Refunding Bonds:
Series M, 5.75%, 7/1/15 Baa1/A 11,500,000 11,181,599
</TABLE>
9 Oppenheimer New York Tax-Exempt Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. POSSESSIONS
(CONTINUED) Puerto Rico Public Buildings Authority Revenue
Guaranteed Refunding Bonds, Series L, 5.75%, 7/1/16 Baa1/A $12,100,000 $ 11,700,578
- --------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Telephone Authority Revenue Bonds,
MBIA Insured, Inverse Floater, 6.743%, 1/16/15(1) Aaa/AAA 11,000,000 10,035,607
------------
149,799,817
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $744,974,999) 98.9% 755,528,105
- --------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.1 8,655,147
----------- ------------
NET ASSETS 100.0% $764,183,252
----------- ------------
----------- ------------
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 one. Inverse floaters amount
to $80,934,191 or 10.6% of the Fund's net assets at September 30, 1995.
2. Securities with an aggregate market value of $2,017,429 are held in collateralized accounts to cover
initial margin requirements on open futures sales contracts. See Note 4 of Notes to Financial Statements.
As of September 30, 1995, securities subject to the alternative minimum tax amounted to $64,266,505 or
8.4% of the Fund's net assets.
Distribution of investments by industry, as a percentage of total investments at value, is as follows:
</TABLE>
<TABLE>
<CAPTION>
INDUSTRY MARKET VALUE PERCENT
-------------------------------------------------------------------------------------------------------
<S> <C> <C>
Education $142,117,440 18.8%
General Obligation Bonds 131,474,125 17.4
Transportation 110,866,488 14.7
Utilities 99,486,796 13.1
Lease/Rental 84,404,404 11.2
Special Tax Bonds 86,682,030 11.5
Hospitals 44,541,919 5.9
Pollution Control 25,265,663 3.3
Housing 21,636,422 2.9
Industrial Development 9,052,818 1.2
----------- ------------
$755,528,105 100.0%
----------- ------------
----------- ------------
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer New York Tax-Exempt Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS Investments, at value (cost $744,974,999)--see accompanying statement $755,528,105
------------------------------------------------------------------------------------------------------
Cash 236,472
------------------------------------------------------------------------------------------------------
Receivables:
Interest 13,275,124
Shares of beneficial interest sold 689,873
------------------------------------------------------------------------------------------------------
Other 22,400
------------
Total assets 769,751,974
- --------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Dividends 2,459,903
Shares of beneficial interest redeemed 1,510,664
Payable for daily variation margin on futures contracts 825,000
Distribution and service plan fees--Note 5 458,281
Trustees' fees--Note 1 174,027
Transfer and shareholder servicing agent fees--Note 5 31,218
Other 109,629
------------
Total liabilities 5,568,722
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $764,183,252
------------
------------
- --------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $767,963,868
NET ASSETS ------------------------------------------------------------------------------------------------------
Overdistributed net investment income (2,195,669)
------------------------------------------------------------------------------------------------------
Accumulated net realized loss from investment transactions (11,706,803)
------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 10,121,856
------------
Net assets $764,183,252
------------
------------
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on
net assets of $673,050,035 and 54,748,687 shares of beneficial interest outstanding) $ 12.29
Maximum offering price per share (net asset value
plus sales charge of 4.75% of offering price) $ 12.90
------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $91,108,223 and 7,407,887 shares of beneficial interest outstanding) $ 12.30
------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $24,994 and 2,032 shares of beneficial interest outstanding) $ 12.30
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer New York Tax-Exempt Fund
<PAGE>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME Interest $ 49,327,390
- --------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 5 3,833,144
------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 5:
Class A 1,545,677
Class B 819,246
Class C 13
------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 5 556,513
------------------------------------------------------------------------------------------------------
Shareholder reports 234,368
------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 78,153
------------------------------------------------------------------------------------------------------
Custodian fees and expenses 74,489
------------------------------------------------------------------------------------------------------
Legal and auditing fees 58,180
------------------------------------------------------------------------------------------------------
Insurance expenses 39,640
------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 6,271
Class B 4,773
------------------------------------------------------------------------------------------------------
Other 51,517
------------
Total expenses 7,301,984
- --------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 42,025,406
- --------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized loss from:
GAIN (LOSS) ON INVESTMENTS Investments (5,262,851)
Futures contracts (9,074,837)
------------
Net realized loss (14,337,688)
-----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 38,448,536
------------
Net realized and unrealized gain on investments 24,110,848
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 66,136,254
------------
------------
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer New York Tax-Exempt Fund
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS Net investment income $42,025,406 $ 44,947,364
------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (14,337,688) 1,578,448
------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 38,448,536 (92,939,878)
----------- ------------
Net increase (decrease) in net assets resulting from operations 66,136,254 (46,414,066)
- --------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A ($.7031 and $.7236 per share, respectively) (38,964,531) (41,738,152)
SHAREHOLDERS Class B ($.6178 and $.6234 per share, respectively) (4,185,973) (2,958,953)
Class C ($.0533 per share) (60) --
------------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments:
Class A ($.0272 and $.026 per share, respectively) (1,474,250) (1,480,818)
Class B ($.0272 and $.026 per share, respectively) (195,772) (97,630)
------------------------------------------------------------------------------------------------------
Distributions in excess of gain on investments:
Class A ($.1144 per share) -- (6,524,436)
Class B ($.1144 per share) -- (430,153)
- --------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase (decrease) in net assets resulting from
TRANSACTIONS Class A beneficial interest transactions--Note 2 (32,998,922) 22,278,985
------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Class B beneficial interest transactions--Note 2 14,665,131 40,649,454
------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Class C beneficial interest transactions--Note 2 25,059 --
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase (decrease) 3,006,936 (36,715,769)
------------------------------------------------------------------------------------------------------
Beginning of period 761,176,316 797,892,085
----------- ------------
End of period [including undistributed (overdistributed) net investment
income of ($2,195,669) and $1,685,934, respectively] $764,183,252 $761,176,316
----------- ------------
----------- ------------
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer New York Tax-Exempt Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------------------------
Year Ended September 30,
1995 1994 1993 1992 1991 1990 1989
- --------------------------------------------------------------------------------------------------------------------------------
<S> <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 $ 11.91
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .69 .74 .73 .79 .81 .83 .84(3)
Net realized and unrealized gain (loss) on investments .41 (1.46) 1.01 .47 .64 (.25) .01
-------- -------- -------- -------- -------- -------- --------
Total income (loss) from investment operations 1.10 (.72) 1.74 1.26 1.45 .58 .85
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.70) (.72) (.75) (.75) (.81) (.83) (.83)
Distributions from net realized gain on investments (.03) (.03) (.08) (.13) (.04) (.01) (.06)
Distributions in excess of net realized gain
on investments -- (.11) -- -- -- -- --
-------- -------- -------- -------- -------- -------- --------
Total dividends and distributions to shareholders (.73) (.86) (.83) (.88) (.85) (.84) (.89)
-------------------------------------------------------------------------
Net asset value, end of period $ 12.29 $ 11.92 $ 13.50 $ 12.59 $ 12.21 $ 11.61 $ 11.87
-------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- --------
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 9.58% (5.55)% 14.33% 10.72% 12.93% 4.95% 6.91%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $673,050 $687,233 $756,934 $530,260 $349,480 $250,012 $197,321
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $659,465 $738,747 $652,327 $436,876 $292,134 $227,504 $156,572
- --------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at end of period
(in thousands) 54,749 57,644 56,087 42,119 28,617 21,533 16,618
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.76% 5.68% 5.66% 6.33% 6.81% 6.97% 7.07%
Expenses .90% .86% .91% .96% .96% .99% .98%(3)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 15.2% 9.4% 39.1% 30.5% 8.9% 13.3% 11.8%
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to September 30,
1995.
2. For the period from March 1, 1993 (inception of offering) to September 30,
1993.
3. Net investment income would have been $.83, $.87 and $.88 absent the
voluntary assumption of expenses, resulting in an expense ratio of 1.00%, 1.02%
and .85% for 1989, 1988 and 1987, respectively.
4. 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.
14 Oppenheimer New York Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
Class B Class C
------------------------------ ------------------------------ -------
Period
Ended
Year Ended September 30, Sept. 30,
1988 1987 1986 1995 1994 1993(2) 1995(1)
- ------------------------------------------------------------------------------------- ------------------------------ -------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 11.60 $ 12.51 $ 10.98 $ 11.93 $ 13.50 $ 13.07 $ 12.22
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .88(3) .90(3) .86 .60 .64 .36 .05
Net realized and unrealized gain (loss) on investments .45 (.79) 1.62 .42 (1.45) .44 .10
-------- -------- -------- -------- -------- -------- --------
Total income (loss) from investment operations 1.33 .11 2.48 1.02 (.81) .80 .15
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.94) (.88) (.86) (.62) (.62) (.37) (.05)
Distributions from net realized gain on investments (.08) (.14) (.09) (.03) (.03) -- --
Distributions in excess of net realized gain
on investments -- -- -- -- (.11) -- --
-------- -------- -------- -------- -------- -------- --------
Total dividends and distributions to shareholders (1.02) (1.02) (.95) (.65) (.76) (.37) (.05)
-------------------------------------------------------------------------
Net asset value, end of period $ 11.91 $ 11.60 $ 12.51 $ 12.30 $ 11.93 $ 13.50 $ 12.30
-------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- --------
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 11.48% .29% 22.73% 8.75% (6.22)% 6.56% 1.10%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $116,931 $ 79,479 $ 50,810 $ 91,108 $ 73,943 $ 40,958 $ 25
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 95,996 $ 65,102 $ 42,907 $ 81,743 $ 61,008 $ 20,454 $ 18
- --------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at end of period
(in thousands) 9,817 6,851 4,061 7,408 6,200 3,033 2
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 7.48% 7.33% 7.10% 4.95% 4.88% 4.45%(5) 3.67%(5)
Expenses .90%(3) .67%(3) .86% 1.67% 1.65% 1.73%(5) 1.37%(5)
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 11.7% 22.9% 29.7% 15.2% 9.4% 39.1% 15.2%
</TABLE>
5. Annualized.
6. 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 September 30, 1995 were $111,679,958 and $141,536,941, respectively.
See accompanying Notes to Financial Statements.
15 Oppenheimer New York Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer New York Tax-Exempt Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment advisor is Oppenheimer
Management Corporation (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 three
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 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. At September 30, 1995, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $3,200,000 expiring in 2003.
- -------------------------------------------------------------------------------
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 year ended
September 30, 1995, a provision of $35,214 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 $160,194 at September 30, 1995.
- -------------------------------------------------------------------------------
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.
During the year ended September 30, 1995, 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. Accordingly, during the year ended
September 30, 1995, amounts have been reclassified to reflect a decrease in
undistributed net investment income of $2,756,445. Accumulated net realized loss
on investments was decreased by the same amount.
16 Oppenheimer New York Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 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 Fund concentrates its investments in New York and, therefore, may have
more credit risks related to the economic conditions of New York than a
portfolio with a broader geographical diversification.
- -------------------------------------------------------------------------------
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>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 1995(1) SEPTEMBER 30, 1994
--------------------------- -------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 6,112,332 $ 73,644,378 8,954,607 $ 115,070,127
Dividends and distributions reinvested 2,407,670 28,865,634 2,804,397 35,919,371
Redeemed (11,415,065) (135,508,934) (10,201,903) (128,710,513)
----------- -----------------------------------------------
Net increase (decrease) (2,895,063) $ (32,998,922) 1,557,101 $ 22,278,985
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
- ----------------------------------------------------------------------------------------------------------
Class B:
Sold 1,966,120 $ 23,621,179 3,489,946 $ 44,671,139
Dividends and distributions reinvested 240,583 2,892,411 183,542 2,334,544
Redeemed (998,399) (11,848,459) (507,286) (6,356,229)
----------- ------------- ----------- -------------
Net increase 1,208,304 $ 14,665,131 3,166,202 $ 40,649,454
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
- ----------------------------------------------------------------------------------------------------------
Class C:
Sold 2,032 $ 25,059 -- $ --
Dividends reinvested -- -- -- --
Redeemed -- -- -- --
----------- ------------- ----------- -------------
Net increase 2,032 $ 25,059 -- $ --
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
</TABLE>
1. For the year ended September 30, 1995 for Class A and Class B shares and for
the period from August 29, 1995 (inception of offering) to September 30, 1995
for Class C shares.
- -------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At September 30, 1995, net unrealized appreciation on investments of $10,121,856
was composed of gross appreciation of $26,604,382, and gross depreciation of
$16,482,526.
17 Oppenheimer New York Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
4. 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 September 30, 1995, the Fund had outstanding futures contracts to sell debt
securities as follows:
<TABLE>
<CAPTION>
EXPIRATION NUMBER OF VALUATION AS OF UNREALIZED
DATE FUTURES CONTRACTS SEPTEMBER 30, 1995 DEPRECIATION
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury Nts. 12/95 600 $68,606,250 $431,250
</TABLE>
- ------------------------------------------------------------------------------
5. 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 .60% on the first
$200 million of average annual net assets, .55% on the next $100 million, .50%
on the next $200 million, .45% on the next $250 million, .40% on the next $250
million and .35% on net assets in excess of $1 billion.
For the year ended September 30, 1995, commissions (sales charges paid by
investors) on sales of Class A shares totaled $1,403,152, of which $259,977 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 $826,211, of which $12,299 was paid to an affiliated broker/dealer.
During the year ended September 30, 1995, OFDI received contingent deferred
sales charges of $235,304 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 compensate 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 and Class C shares are subject to an asset-based sales charge
of .75% of net assets annually, to compensate 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 or Class C 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 or Class C
shares sold prior to termination or discontinuance of the plan. At September 30,
1995, OFDI had incurred unreimbursed expenses of $3,233,621. During the year
ended September 30, 1995, OFDI paid $23,663 and $4,607, respectively, to an
affiliated broker/dealer as compensation for Class A and Class B personal
service and maintenance expenses and retained $683,188 as compensation for Class
B sales commissions and service fee advances, as well as financing costs.
18 Oppenheimer New York Tax-Exempt Fund
<PAGE>
INDEPENDENT AUDITORS' REPORT
- -------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER NEW YORK TAX-EXEMPT FUND:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer New York Tax-Exempt Fund as of September 30, 1995,
and the related statement of operations for the year then ended, the statements
of changes in net assets for each of the years in the two-year period then ended
and the financial highlights for each of the years in the ten-year period then
ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer New York Tax-Exempt Fund as of September 30, 1995, the results of
its operations for the year then ended, the changes in its net assets for each
of the years in the two-year period then ended, and the financial highlights for
each of the years in the ten-year period then ended, in conformity with
generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
October 20, 1995
19 Oppenheimer New York Tax-Exempt Fund
<PAGE>
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
- -------------------------------------------------------------------------------
In early 1996, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1995. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
A capital gain distribution of $.0272 per share was paid on July 10, 1995,
which was designated as a "capital gain distribution" for federal income tax
purposes. Whether received in stock or cash, the capital gain distribution
should be treated by shareholders as a gain from the sale of capital assets held
for more than one year (long-term capital gains). Both short-term and long-term
capital gain distributions are subject to federal, state and local taxes.
None of the dividends paid by the Fund during the fiscal year ended
September 30, 1995 are eligible for the corporate dividend-received deduction.
The dividends were derived from interest on municipal bonds and are not subject
to federal income tax. To the extent a shareholder is subject to any state or
local tax laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
20 Oppenheimer New York Tax-Exempt Fund
<PAGE>
SHAREHOLDER MEETING (UNAUDITED)
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On May 25, 1995, a special shareholder meeting was held at which the twelve
Trustees identified below were elected, the selection of KPMG Peat Marwick LLP
as the independent certified public accountants and auditors of the Fund for the
fiscal year beginning October 1, 1994 was ratified (Proposal No. 1), the
proposed changes in the Fund's investment policies were approved (Proposal No.
2), as described in the Fund's proxy statement for that meeting. That meeting
was adjourned until May 31, 1995, with respect to a proposal voted on only by
Class B shareholders, at which time the Fund's amended Class B 12b-1
Distribution and Service Plan was approved by Class B shareholders (Proposal No.
3), as described in the Fund's proxy statement for that meeting. The following
is a report of the votes cast:
<TABLE>
<CAPTION>
NOMINEE FOR AGAINST TOTAL
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Leo Cherne 31,392,318.141 1,216,510.014 32,608,828.155
Robert G. Galli 31,423,499.173 1,185,328.982 32,608,828.155
Leon Levy 31,496,565.665 1,112,262.490 32,608,828.155
Benjamin Lipstein 31,480,118.328 1,128,709.827 32,608,828.155
Elizabeth B. Moynihan 31,380,143.658 1,228,684.497 32,608,828.155
Kenneth A. Randall 31,419,552.764 1,189,275.391 32,608,828.155
Edward V. Regan 31,509,297.575 1,099,530.580 32,608,828.155
Russell S. Reynolds, Jr. 31,425,158.373 1,183,669.782 32,608,828.155
Sidney M. Robbins 31,325,278.112 1,283,550.043 32,608,828.155
Donald W. Spiro 31,396,818.466 1,212,009.689 32,608,828.155
Pauline Trigere 31,208,407.513 1,400,420.642 32,608,828.155
Clayton K. Yeutter 31,373,621.729 1,235,206.426 32,608,828.155
</TABLE>
<TABLE>
<CAPTION>
PROPOSAL FOR AGAINST WITHHELD/ABSTAIN BROKER NON-VOTES TOTAL
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Proposal No. 1 30,929,438.022 284,642.644 1,394,747.489 1,082,442 32,608,828.155
Proposal No. 2 28,098,595.026 2,254,303.883 2,255,929.246 1,082,442 32,608,828.155
Proposal No. 3 3,108,222.595 123,757.558 253,962.265 679,278 3,485,942.418
</TABLE>
21 Oppenheimer New York Tax-Exempt Fund
<PAGE>
OPPENHEIMER NEW YORK TAX-EXEMPT FUND
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OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Bridget A. Macaskill, 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 Oppenheimer Shareholder Services
SHAREHOLDER SERVICING AGENT
- -------------------------------------------------------------------------------
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
- -------------------------------------------------------------------------------
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
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. 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 New York Tax-Exempt Fund
<PAGE>
OPPENHEIMERFUNDS FAMILY
- -------------------------------------------------------------------------------
OppenheimerFunds offers over 30 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 2.8 million shareholder accounts and more than $38
billion under Oppenheimer's 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 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 Oppenheimer Fund
Target Fund Value Stock Fund
Growth Fund Gold & Special Minerals Fund
- -------------------------------------------------------------------------------
STOCK & BOND FUNDS Main Street Income & Growth
Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth & Income Fund Strategic Income & Growth Fund
- -------------------------------------------------------------------------------
BOND FUNDS High Yield Fund Bond Fund
Champion Income Fund U.S. Government Trust
Strategic Income Fund Limited-Term Government Fund
International Bond Fund
- -------------------------------------------------------------------------------
TAX-EXEMPT FUNDS New York Tax-Exempt Fund(2) New Jersey Tax-Exempt Fund(2)
California Tax-Exempt Fund(2) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Insured Tax-Exempt Fund
Fund(2) Intermediate Tax-Exempt Fund
Florida Tax-Exempt Fund(2)
- -------------------------------------------------------------------------------
MONEY MARKET FUNDS Money Market Fund Cash Reserves
1. Exchange privileges are subject to change or termination. Shares may be
exchanged only to the same class of eligible funds.
2. Available only to investors in certain states.
Oppenheimer funds are distributed by Oppenheimer Funds Distributor, Inc., Two
World Trade Center, New York, NY10048-0203.
- -C- Copyright 1995 Oppenheimer Management Corporation. All rights reserved.
23 Oppenheimer New York Tax-Exempt Fund
<PAGE>
BACK COVER DATA MISSING
<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
RAO500.001.0995 November 30, 1995
[PHOTO]
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
"How may I help you?"
As an Oppenheimer funds 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,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- -------------------------------------------------------------------------------
[LOGO] --------------
Oppenheimer Funds Distributor, Inc. Bulk Rate
P.O. Box 5270 U.S. Postage
Denver, CO 80217-5270 PAID
Permit No. 469
Denver, CO
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