<PAGE> 1
OPPENHEIMER NEW YORK MUNICIPAL FUND
Annual Report September 30, 1996
"We want
investment
income that
won't add
to our
taxes."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
YIELD
STANDARDIZED YIELDS
For the 30 Days Ended 9/30/96:(4)
Class A
4.64%
Class B
4.12%
Class C
4.06%
BEAT THE AVERAGE
Cumulative Total Return for the
1-Year Period Ended 9/30/96:
Oppenheimer New York
Municipal Fund
Class A (at net asset value)(1)
6.65%
Lipper New York Municipal Debt Funds Average for 99 Funds for the 1-Year Period
Ended 9/30/96(5)
5.55%
THIS FUND IS FOR PEOPLE WHO NEED INCOME THAT'S EXEMPT FROM INCOME TAXES.
HOW YOUR FUND IS MANAGED
Oppenheimer New York Municipal Fund invests in a diversified portfolio
consisting primarily 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 9/30/96 for Class A, B
and C shares were 6.65%, 5.77% and 5.64%, respectively.(2)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1-, 5- and 10-year periods ended 9/30/96 were 1.59%,
5.89% and 6.69%, respectively. For Class B shares, average annual total returns
for the 1-year period ended 9/30/96 and since inception on 3/1/93 were 0.77%
and 3.41%, respectively. For Class C shares, average annual total return for
the 1-year period ended 9/30/96 and since inception on 8/29/95 were 4.64% and
6.25%, respectively.(3)
OUTLOOK
"We have an optimistic outlook for the Fund and expect moderate growth and
moderate inflation in the coming months, which will be constructive for
municipal bonds. We believe this will prove to have been a good time to put
money to work in municipals, and that 1997 will be a better year for the bond
market as a whole."
Robert Patterson, Portfolio Manager
September 30, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. In reviewing the notes that follow on performance
and rankings, please be aware that past performance does not guarantee future
results. Investment return and principal value of an investment in the Fund
will fluctuate so that an investor's shares, when redeemed, may be worth more
or less than the original cost.
1. A portion of the distributions paid by the Fund may be subject to federal,
state and local 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 for the period shown. Such
performance would have been lower if sales charges were taken into account.
3. Class A returns show results of hypothetical investments on 9/30/95, 9/30/91
and 9/30/86, after deducting the current maximum initial sales charge of 4.75%.
Class A shares were first publicly offered on 8/16/84. The Fund's maximum sales
charge rate on Class A shares was lower during a portion of the periods shown,
so that actual investment performance would be greater. Class B returns show
results of hypothetical investments on 9/30/95 and 3/1/93 (inception of class),
after the deduction of the applicable contingent deferred sales charge of 5%
(1-year) and 3% (since inception). Class C returns show results of hypothetical
investments on 9/30/95 and 8/29/95 (inception of class), after the deduction of
the 1% contingent deferred sales charge for the 1-year result. 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 9/30/96, 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.
5. Source: Lipper Analytical Services, 9/30/96, an independent mutual fund
monitoring service. The average is shown for comparative purposes only.
Oppenheimer New York Municipal Fund is characterized by Lipper as a New York
municipal bond fund. Lipper performance does not take sales charges into
consideration.
2 Oppenheimer New York Municipal Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
New York
Municipal Fund
DEAR SHAREHOLDER,
After a turbulent beginning this year, third quarter economic indicators are
now pointing to continuing growth and low inflation. As a result, we are seeing
signs of improvement in both the government bond and the closely related
municipal markets. Most recently, the Federal Reserve again showed confidence
in the non-inflationary growth of the economy by deciding not to raise interest
rates, and we feel this current economic environment could lead to a rebound in
the bond market.
Interest rates, which have recently leveled off, rose from 6% in
January to about 7% in July, driven by investors' concerns that strong economic
growth would trigger higher inflation. This rate increase affected the
municipal market because municipal bond yields tend to track Treasuries quite
closely. Muni investors, however, were affected less severely than other
fixed-income investors because most of the income generated by municipals is
free from federal income tax, making actual yields more attractive.
Although economic factors such as declining unemployment and strong
retail sales still point toward growth, our outlook is for inflation to remain
under control for the following three reasons: the Federal Reserve's
conservative monetary policy over the last few years; the declining federal
government deficit; and higher corporate productivity that has caused unit
labor costs to grow more slowly than they have in the past. Yet another
development favorably impacting the municipal bond market is the strengthening
financial condition of many municipalities throughout the United States.
Finally, the tax-exempt market is also benefiting from price supports
created by a diminishing supply of securities. We continue to see fewer issues
and more redemptions as bonds mature or are "called" out of the market. This
shrinking supply dates back to 1985, when a surge of municipal bond issuance
occurred just prior to the Tax Reform Act of 1986. By today's standards, these
bonds paid very high rates of interest, and this year billions of dollars worth
of these bonds were redeemed by issuers who were contractually obligated to
wait at least ten years to "call" them. Going forward, former bondholders, who
received cash from these redemptions, may fuel bond price increases further by
reinvesting in the smaller pool of existing bonds.
When you look at all the current factors affecting this market: the
prospect of stable, lower interest rates, the strengthening economies of states
and municipalities, the shrinking supply of securities, as well as tax reform
being down on the political agenda, the outlook for municipal bond investors is
very positive.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ BRIDGET A. MACASKILL
- --------------------------
Bridget A. Macaskill
October 21, 1996
3 Oppenheimer New York Municipal Fund
<PAGE> 4
Q WHAT INVESTMENTS BENEFITED PERFORMANCE?
Q + A
[PHOTO]
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
The Fund has performed well and outperformed the majority of its peers during
what was a tough period of volatile interest rates. Oppenheimer New York
Municipal Fund finished 13th out of 99 funds rated by Lipper Analytical
Services for the 1-year period ended 9/30/96.(1) We maintained the Fund's
return by managing our interest rate exposure with shorter durations and by
seeking income through high coupon bonds.
[PHOTO]
WHAT INVESTMENTS OR MARKET CONDITIONS MADE POSITIVE CONTRIBUTIONS TO THE FUND'S
PERFORMANCE?
The market continued through the year, which was characterized by thin trading,
a relatively small new issue supply and rising interest rates. The Fund's
strategy of increased emphasis on selectively purchasing municipal authorities
whose bonds are higher yielding than average has led in part to the Fund's
outperformance during the year.
[PHOTO]
In addition, we concentrated 80% of the portfolio in revenue bonds.
Revenue bonds are backed by a definable source of income and are not linked to
income taxes. During tight fiscal periods they have traditionally been a good
source of return and this was the case once again as these revenue bonds
provided solid levels of income.
Finally, city and state university education bonds have also been one
of our favorite investments despite their link to the state budget. Higher
education has been an established priority of the state and therefore has
received a more consistent flow of funds. It is also backed by tuition payments
from private citizens. The well-managed city and
1. Source: Lipper Analytical Services, 9/30/96. Oppenheimer New York Municipal
Fund is characterized by Lipper as a New York municipal fund. Lipper
performance does not take sales charges into consideration.
4 Oppenheimer New York Municipal Fund
<PAGE> 5
FACING PAGE
Top left: Robert Patterson,
Portfolio Manager, with Len Darling,
Executive VP, Director of Fixed
Income Investments
Top right: Michael Maciolek,
Securities Analyst
Bottom: Caryn Halbrecht, VP,
Municipal Portfolio Manager
THIS PAGE
Top: Robert Patterson
Bottom: Caryn Halbrecht with
Donna Compert, Municipal
Securities Trader
A REVENUE BONDS HAVE BEEN A GOOD SOURCE OF RETURN.
state systems have been an excellent source of coupon for the portfolio.(2)
DID ANY INVESTMENTS NOT PERFORM AS EXPECTED?
General obligation bonds have not performed as well as we had expected. Despite
the slow but steady economic recovery of New York City and New York State, the
fiscal environment remains tight. General obligation bonds, backed solely by
taxes, rely on funds from the shrinking tax base. At the same time, the demand
for state services continues to rise. The combination of a smaller tax base and
a larger demand for services makes it tough to get a decent yield on general
obligations. For this reason, we have continued to de-emphasize our position in
general obligation bonds.
WHAT AREAS ARE YOU CURRENTLY TARGETING?
As of today, the outcome of the Presidential election has not been decided, so
we are keeping our eye on the myriad of tax reform recommendations that could
affect the muni bond market. The real danger for municipals would come from
large tax cuts which would put more pressure on the states and localities to
continue paying for services with less revenue. Tax cuts also would have a
negative impact on general obligation bonds. Until the election is over,
revenue bonds will remain our focus.
[PHOTO]
We feel that the expectations this past summer for strong economic
recovery and possible inflation had an overly negative impact on the municipal
bond market. Therefore, we have positioned ourselves to participate in the
rebound when it takes place.
[PHOTO]
WHAT IS YOUR OUTLOOK FOR THE FUND?
We have an optimistic outlook for the Fund and expect moderate growth and
moderate inflation in the coming months, which will be constructive for
municipal bonds. We believe this will prove to have been a good time to put
money to work in municipals, and that 1997 will be a better year for the bond
market as a whole.
2. The Fund's portfolio is subject to change.
5 Oppenheimer New York Municipal Fund
<PAGE> 6
STATEMENT OF INVESTMENTS September 30, 1996
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
===========================================================================================================================
MUNICIPAL BONDS AND NOTES--99.2%
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK--83.8%
<S> <C> <C> <C>
Battery Park City, NY RB, Series A, AMBAC Insured,
5.50%, 11/1/16(1) Aaa/AAA $ 5,000,000 $ 4,895,650
-------------------------------------------------------------------------------------------------------------------
Buffalo, NY GOB, 6.65%, 12/1/13 Aaa/AAA/AAA 500,000 549,890
-------------------------------------------------------------------------------------------------------------------
Grand Central District Management Assn., Inc.
NY Business District Capital Improvement RRB:
5.125%, 1/1/14 A1/A 1,000,000 917,230
5.25%, 1/1/22 A1/A 2,500,000 2,274,075
-------------------------------------------------------------------------------------------------------------------
MTA of NY:
RB, Series J, FGIC Insured, 6.375%, 7/1/10 Aaa/AAA/AAA 500,000 534,345
RB, Transportation Facilities Service Contracts,
Series 3, 7.375%, 7/1/08 Baa1/BBB 250,000 285,205
RRB, Commuter Facilities Project, Series B,
MBIA Insured, 6.25%, 7/1/17 Aaa/AAA 350,000 365,340
-------------------------------------------------------------------------------------------------------------------
Nassau Cnty., NY GOB, Series L, AMBAC Insured,
6.25%, 10/15/09 Aaa/AAA/AAA 500,000 534,530
-------------------------------------------------------------------------------------------------------------------
NYC GOB:
Inverse Floater, 7.028%, 8/1/08(2) Baa1/BBB+ 9,250,000 8,475,312
Inverse Floater, 8.004%, 8/1/13(2) Baa1/BBB+ 5,000,000 4,743,750
Inverse Floater, 8.004%, 8/1/14(2) Baa1/BBB+ 8,150,000 7,671,187
Prerefunded, Series F, 8.25%, 11/15/17 Aaa/BBB+ 7,820,000 9,196,398
Series B, 8.25%, 6/1/07 Baa1/BBB+ 1,750,000 2,075,815
Series B, FSA Insured, Inverse Floater, 7.149%, 10/1/07(2) Aaa/AAA 7,500,000 7,409,850
Series C-1, 7.50%, 8/1/20 Baa1/BBB+ 200,000 222,274
Unrefunded Balance, Series A, 7.75%, 3/15/03 Baa1/BBB+/A- 150,000 161,767
Unrefunded Balance, Series A, 7.75%, 8/15/16 Baa1/BBB+ 1,120,000 1,255,867
Unrefunded Balance, Series F, 8.25%, 11/15/17 Baa1/BBB+ 680,000 776,247
-------------------------------------------------------------------------------------------------------------------
NYC GORB:
Series B, MBIA Insured, 6.20%, 8/15/06 Aaa/AAA 3,500,000 3,759,000
Series D, MBIA Insured, 5.75%, 8/1/05 Aaa/AAA 450,000 472,684
Series F, 7.625%, 2/1/14 Baa1/BBB+ 350,000 386,942
-------------------------------------------------------------------------------------------------------------------
NYC HDC MH RB:
Glenn Garden Project, 6.50%, 1/15/18 NR/NR 2,949,940 2,939,468
Keith Plaza Project, 6.50%, 2/15/18 NR/NR 1,948,840 1,941,961
Series A, 5.625%, 5/1/12 Aa/AA 4,500,000 4,456,035
-------------------------------------------------------------------------------------------------------------------
NYC Health & Hospital Corp. RRB, AMBAC Insured,
Inverse Floater, 7.45%, 2/15/23(2) Aaa/AAA/AAA 8,300,000 7,521,875
-------------------------------------------------------------------------------------------------------------------
NYC IDA:
Civic Facility RB, USTA National Tennis Center Project,
FSA Insured, 6.375%, 11/15/14 Aaa/AAA 1,500,000 1,597,740
Civic Facility RB, YMCA of Greater NY, 8%, 8/1/16 NR/NR 3,950,000 4,238,034
RB, VISY Paper, Inc. Project, 7.80%, 1/1/16 NR/NR 6,800,000 7,144,148
RB, VISY Paper, Inc. Project, 7.95%, 1/1/28 NR/NR 6,250,000 6,613,125
Special Facilities RB, Terminal One Group
Assn. Project, 6%, 1/1/15 A/A/A- 6,000,000 5,924,040
Special Facilities RB, Terminal One Group
Assn. Project, 6.125%, 1/1/24 A/A/A- 3,000,000 2,979,990
-------------------------------------------------------------------------------------------------------------------
NYC MWFA WSS:
RB, Prerefunded, Series A, MBIA Insured, 7.25%, 6/15/15 Aaa/AAA 5,000,000 5,532,450
RB, Prerefunded, Series C, 7.75%, 6/15/20 Aaa/A- 17,250,000 19,737,967
RB, Unrefunded Balance, Series B, 6.375%, 6/15/22 A/A-/A 6,625,000 6,859,856
RRB, Series A, 6%, 6/15/25 A/A-/A 7,235,000 7,282,534
RRB, Series A-1994, 7.10%, 6/15/12 A/A- 275,000 303,361
</TABLE>
6 Oppenheimer New York Municipal Fund
<PAGE> 7
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
<S> <C> <C> <C>
NYS DA:
RB, City University--Third General Resolution,
Series 2, 6.875%, 7/1/14 Aaa/AAA/A- $ 500,000 $ 554,625
RB, Courts Facilities Lease, Series A, 5.50%, 5/15/10 Baa1/BBB+ 2,115,000 2,042,138
RB, CUS, Prerefunded, Series A, 7.625%, 7/1/20 Aaa/BBB 14,500,000 16,305,975
RB, CUS, Prerefunded, Series F, 7.875%, 7/1/07 Aaa/BBB 7,000,000 7,929,040
RB, CUS, Series V, 5.60%, 7/1/10 Baa1/BBB 10,880,000 10,604,301
RB, Department of Health, Series 1996, 5.75%, 7/1/17 Baa1/BBB/A 8,190,000 7,886,888
RB, Judicial Facilities Lease, Escrowed to Maturity,
MBIA Insured, 7.375%, 7/1/16 Aaa/AAA 2,300,000 2,719,359
RB, Menorah Campus, 7.30%, 8/1/16 NR/AA 195,000 215,467
RB, Pooled Capital Program, Partially Prerefunded,
FGIC Insured, 7.80%, 12/1/05 Aaa/AAA/AAA 6,835,000 7,406,679
RB, Rockefeller University, MBIA Insured, 7.375%, 7/1/14 Aaa/AAA 4,000,000 4,281,880
RRB, Columbia University, 5.75%, 7/1/15 Aaa/AA+ 750,000 749,498
RRB, CUS, Second Series A, 5.75%, 7/1/18 Baa1/BBB 6,750,000 6,613,988
RRB, CUS, Series B, 6%, 7/1/14 Baa1/BBB 10,875,000 11,046,499
RRB, CUS, Series E, 5.75%, 7/1/11 Baa1/BBB 5,955,000 5,925,165
RRB, Episcopal Health, 5.85%, 8/1/13 NR/AAA 500,000 508,680
RRB, Fordham University, FGIC Insured, 5.75%, 7/1/15 Aaa/AAA/AAA 9,100,000 9,093,903
RRB, NY University, Series A, MBIA Insured,
5%, 7/1/09 Aaa/AAA 9,000,000 8,642,430
RRB, St. Vincent's Hospital, 7.375%, 8/1/11 Aa/AAA 150,000 167,519
RRB, SUEFS, Prerefunded, Series A, 7.70%, 5/15/12 Aaa/BBB+/A 9,000,000 10,114,020
RRB, SUEFS, Prerefunded, Series B, 7.25%, 5/15/15 Aaa/BBB+ 15,230,000 16,888,242
RRB, SUEFS, Series A, 5.25%, 5/15/15 Baa1/BBB+ 23,090,000 21,393,578
RRB, SUEFS, Series A, 5.25%, 5/15/21 Baa1/BBB+ 5,010,000 4,562,357
RRB, SUEFS, Series B, 5.25%, 5/15/13 Baa1/BBB+/A 1,000,000 935,180
RRB, SUEFS, Series B, 7%, 5/15/16 Baa1/BBB+ 9,020,000 9,614,328
-------------------------------------------------------------------------------------------------------------------
NYS EFCPC RB, State Revolving Fund:
Series A, 6.60%, 9/15/12 Aaa/AAA/AAA 250,000 273,028
Series C, 7.20%, 3/15/11 Aa/A+/AA 350,000 382,228
Series E, 6.50%, 6/15/14 Aa/A/AA 500,000 533,625
-------------------------------------------------------------------------------------------------------------------
NYS ERDAEF RB:
Consolidated Edison Co., Series A, 7.50%, 1/1/26 Aa3/A+ 280,000 302,123
Consolidated Edison Co., Series A, 7.75%, 1/1/24 A1/A+ 620,000 650,560
Consolidated Edison Co., Series B, 7.375%, 7/1/24 Aa3/A+ 200,000 210,326
L.I. Lighting Co., Series A, 7.15%, 12/1/20 Ba1/BB+ 7,500,000 7,605,975
L.I. Lighting Co., Series C, 6.90%, 8/1/22 Ba1/BB+ 9,200,000 9,230,360
-------------------------------------------------------------------------------------------------------------------
NYS ERDAGF RB, Brooklyn Union Gas Co.:
Series B, Inverse Floater, 10.30%, 7/1/26(2) A1/A/A 6,000,000 7,072,500
Series D, MBIA Insured, Inverse Floater, 7.386%, 7/8/26(2) Aaa/AAA/A 2,000,000 1,755,000
-------------------------------------------------------------------------------------------------------------------
NYS GOB:
6.875%, 3/1/12 A/A- 500,000 543,070
7%, 2/1/09 A/A- 300,000 327,432
-------------------------------------------------------------------------------------------------------------------
NYS GORB, 7.50%, 11/15/00 A/A- 500,000 554,475
-------------------------------------------------------------------------------------------------------------------
NYS HFA MH RB, Secured Mtg.:
Program-A, 7.05%, 8/15/24 Aa/NR 350,000 369,173
Program-C, 6.95%, 8/15/24 Aa/NR 235,000 245,977
</TABLE>
7 Oppenheimer New York Municipal Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
<S> <C> <C> <C>
NYS HFA:
RB, Prerefunded, 8%, 11/1/08 Aaa/BBB+ $ 2,690,000 $ 3,078,732
RB, Unrefunded Balance, 8%, 11/1/08 Baa/BBB+ 550,000 615,676
RRB, Unrefunded Balance, 7.90%, 11/1/99 Baa2/BBB+ 2,720,000 2,950,112
RRB, Housing Mtg., Series A, 6.10%, 11/1/15 Aaa/AAA 12,375,000 12,559,140
RRB, State University Construction,
Escrowed to Maturity, Series A, 7.90%, 11/1/06 Aaa/AAA 1,750,000 2,086,998
-------------------------------------------------------------------------------------------------------------------
NYS HFASC:
Obligation RB, Series A, 6%, 3/15/26 Baa1/BBB 10,000,000 9,816,700
RB, Prerefunded, Series A, 7.375%, 9/15/21 Aaa/AAA 9,050,000 10,346,141
RB, Prerefunded, Series A, 7.80%, 9/15/20 Aaa/AAA 3,840,000 4,356,211
RB, Series D, 5.375%, 3/15/23 Baa1/BBB 9,000,000 8,024,220
-------------------------------------------------------------------------------------------------------------------
NYS Local GAC:
GORB, Series A, 6%, 4/1/16 A/A/A+ 5,875,000 5,950,318
RB, Prerefunded, Series C, 7%, 4/1/21(3) Aaa/AAA/AAA 9,455,000 10,532,775
RB, Series A, 5.375%, 4/1/14 A/A/A+ 5,500,000 5,309,535
RB, Series A, 7%, 4/1/12 A/A/A+ 700,000 785,029
RRB, Series B, 5.50%, 4/1/21 A/A/A+ 10,000,000 9,578,700
RRB, Series C, 5%, 4/1/21 A/A/A+ 15,000,000 13,413,750
RRB, Series E, 5%, 4/1/21 A/A/A+ 500,000 454,395
-------------------------------------------------------------------------------------------------------------------
NYS MCFFA:
RB, Hospital & Nursing Home Project,
Series D, 6.45%, 2/15/09 Aa/AAA 355,000 381,401
RB, Long-Term Health Care, Series C,
FSA Insured, 6.40%, 11/1/14 Aaa/AAA 2,800,000 2,949,996
RB, Mental Health Services Facilities, Prerefunded,
Series B, 7.875%, 8/15/20 Aaa/AAA 5,445,000 6,177,843
RB, Mental Health Services Facilities,
Series A, 7.70%, 2/15/18 Baa1/BBB+ 765,000 811,145
RB, Mental Health Services Facilities,
Series A, AMBAC Insured, 5.70%, 8/15/14 Aaa/AAA/AAA 500,000 500,290
RB, Mental Health Services Facilities, Series A,
FGIC Insured, 6.375%, 8/15/17 Aaa/AAA/AAA 5,000,000 5,241,850
RB, Mental Health Services Facilities,
Series B, 7.875%, 8/15/20 Baa1/BBB+ 8,145,000 9,102,119
RB, Mental Health Services Facilities,
Unrefunded Balance, Series A, 8.875%, 8/15/07 Baa1/BBB+ 6,800,000 7,202,424
RB, NY Hospital, Series A,
AMBAC Insured, 6.75%, 8/15/14 Aaa/AAA/AAA 500,000 547,625
RB, St. Francis Hospital, Series 1998A,
FGIC Insured, 7.625%, 11/1/21 Aaa/AAA/AAA 2,690,000 2,914,319
RB, St. Luke's Hospital Center Mtg., Prerefunded,
Series B, 7.45%, 2/15/29 Aaa/AAA 7,500,000 8,312,925
RRB, Mental Health Services Facilities, Series F,
MBIA Insured, 5.375%, 2/15/14 Aaa/AAA 6,600,000 6,371,970
RRB, North Shore University Hospital,
MBIA Insured, 7.20%, 11/1/20 Aaa/AAA 250,000 275,980
RRB, Presbyterian Hospital, Series A, 5.25%, 8/15/14 Aa/AA 17,440,000 16,463,534
</TABLE>
8 Oppenheimer New York Municipal Fund
<PAGE> 9
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
<S> <C> <C> <C>
NYS Mtg. Agency RB:
Homeowner Mtg., Series 1, 7.95%, 10/1/21 Aa/NR $ 2,270,000 $ 2,416,279
Homeowner Mtg., Series UU, 7.75%, 10/1/23 Aa/NR 1,990,000 2,102,833
Homeowner Mtg., Series VV, 7.375%, 10/1/11 Aa/NR 345,000 367,660
Inverse Floater, 6.865%, 10/1/24(2) NR/NR 9,000,000 7,458,750
Series 40-B, 6.40%, 10/1/12 Aa/NR 500,000 513,525
Series B, 8.30%, 10/1/17 Aa/NR 1,720,000 1,771,428
Series C, 8.40%, 10/1/17 Aa/NR 1,700,000 1,744,438
-------------------------------------------------------------------------------------------------------------------
NYS PAU:
General Purpose RB, Series Z, 6.625%, 1/1/12 Aa/AA- 315,000 339,652
RB, Prerefunded, Series V, 8%, 1/1/17 NR/AA 5,680,000 6,066,694
-------------------------------------------------------------------------------------------------------------------
NYS Thruway Authority:
General RB, Series A, 5.75%, 1/1/19 A1/A 10,000,000 9,772,100
Service Contract RB, Local Highway & Bridge,
5.125%, 4/1/07 Baa1/BBB 500,000 478,465
-------------------------------------------------------------------------------------------------------------------
NYS UDC:
RB, Correctional Facilities Project, Prerefunded,
Series G, 7.25%, 1/1/14 Aaa/NR 3,650,000 4,020,986
RB, Series A, MBIA Insured, 5.50%, 4/1/16 Aaa/AAA/AAA 7,500,000 7,381,125
RRB, Correctional Facilities Project,
FSA Insured, 5.50%, 1/1/15 Aaa/AAA/A 10,000,000 9,680,300
RRB, Correctional Facilities Project, Series A,
FSA Insured, 5.50%, 1/1/16 Aaa/AAA/A 500,000 488,070
-------------------------------------------------------------------------------------------------------------------
Onondaga Cnty., NY Resources Recovery Agency RB,
Resources Recovery Facilities Project, 7%, 5/1/15 Baa/NR/A- 15,600,000 15,966,444
-------------------------------------------------------------------------------------------------------------------
PANYNJ:
Consolidated RB, 69th Series, 7.125%, 6/1/25 A1/AA-/AA- 4,155,000 4,508,840
Consolidated RRB, 78th Series, 6.50%, 4/15/11 A1/AA-/AA- 250,000 266,788
Consolidated RRB, 89th Series, 5%, 10/1/13 A1/AA-/AA- 500,000 467,115
Special Obligation RRB, KIAC-4 Project,
5th Installment, 6.75%, 10/1/19 NR/NR 12,600,000 12,740,364
-------------------------------------------------------------------------------------------------------------------
TBTA of NY:
General Purpose RB, Series A, 5%, 1/1/12 Aa/A+ 15,755,000 14,846,567
General Purpose RB, Series A, 5%, 1/1/15 Aa/A+ 7,500,000 6,928,500
General Purpose RB, Series X, 6%, 1/1/14 Aa/A+ 14,510,000 14,707,046
General Purpose RB, Series Y, 5.50%, 1/1/17 Aa/A+ 15,000,000 14,917,050
General Purpose RRB, Series B, 5%, 1/1/20 Aa/A+ 500,000 460,910
Special Obligation RRB, Series A,
MBIA Insured, 6.625%, 1/1/17 Aaa/AAA 500,000 537,740
------------
646,355,055
- ---------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--15.4%
PR Commonwealth:
Aqueduct & Sewer Authority RB,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA 500,000 695,820
GORB, 5.25%, 7/1/18 Baa1/A 20,000,000 18,451,200
GORB, 7.625%, 7/1/10 NR/AAA 3,000,000 3,387,000
GORB, FSA Insured, Inverse Floater, 7.962%, 7/1/20(2) Aaa/AAA 11,500,000 11,428,125
GORB, Prerefunded, 7.70%, 7/1/20 NR/AAA 5,000,000 5,657,850
HTA RB, Prerefunded, Series S, 6.50%, 7/1/22 NR/AAA 13,500,000 14,963,535
HTA RB, Series W, Inverse Floater, 6.645%, 7/1/10(2) Baa1/A 9,000,000 8,403,750
</TABLE>
9 Oppenheimer New York Municipal Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS (CONTINUED)
<S> <C> <C> <C>
Infrastructure Financing Authority Special Tax RB,
Series A, 7.75%, 7/1/08 Baa1/BBB+ $ 6,000,000 $ 6,456,180
-------------------------------------------------------------------------------------------------------------------
PR EPA:
RB, Series O, 5%, 7/1/12 Baa1/BBB+ 500,000 454,920
RRB, Series N, 5%, 7/1/12 Baa1/BBB+ 7,045,000 6,409,823
-------------------------------------------------------------------------------------------------------------------
PR Housing Bank & Finance Agency Single Family
Mtg. RB, Homeownership-Fourth Portfolio,
Prerefunded, 8.50%, 12/1/18 Aaa/NR 1,580,000 1,894,941
-------------------------------------------------------------------------------------------------------------------
PR Industrial, Medical & Environmental PC:
Facilities Financing Authority RB, American Airlines, Inc.
Project, Series A, 6.45%, 12/1/25 Baa1/BB+ 850,000 873,146
Facilities Financing Authority RB,
Warner Lambert Co. Project, 7.60%, 5/1/14 A1/NR 3,000,000 3,274,110
RB, American Home Products, 5.10%, 12/1/18 Aaa/NR 500,000 455,155
-------------------------------------------------------------------------------------------------------------------
PR Port Authority RB, American Airlines Special
Facilities Project, Series A, 6.25%, 6/1/26 Baa3/BBB+ 8,000,000 8,062,400
-------------------------------------------------------------------------------------------------------------------
PR Public Buildings Authority Guaranteed Public
Education & Health Facilities RB:
Prerefunded, Series L, 6.875%, 7/1/21 Aaa/AAA 5,400,000 6,083,910
Series M, 5.75%, 7/1/15 Baa1/A 11,500,000 11,298,290
-------------------------------------------------------------------------------------------------------------------
PR Telephone Authority RB, MBIA Insured,
Inverse Floater, 7.065%, 1/16/15(2) Aaa/AAA 11,000,000 10,271,250
------------
118,521,405
------------
Total Municipal Bonds and Notes (Cost $752,471,413) 764,876,460
===========================================================================================================================
Short-Term Tax-Exempt Obligations--0.1%
- ---------------------------------------------------------------------------------------------------------------------------
NYS Energy Research & Development Authority PC RRB,
Orange/Rockland Utility Project, Series A,
FGIC Insured, 3.60%, 10/1/96 (Cost $600,000)(4) 600,000 600,000
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $753,071,413) 99.3% 765,476,460
- ---------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.7 5,089,471
------------ ------------
NET ASSETS 100.0% $770,565,931
============ ============
</TABLE>
1. When-issued security to be delivered and settled after September 30,
1996.
2. Represents the current interest rate for a variable rate bond. These
bonds known as "inverse floaters" pay interest at a rate that varies
inversely with short-term interest rates. As interest rates rise,
inverse floaters produce less current income. Their price may be more
volatile than the price of a comparable fixed-rate security. Inverse
floaters amount to $82,211,349 or 10.67% of the Fund's net assets at
September 30, 1996.
3. Securities with an aggregate market value of $2,534,327 are held in
collateralized accounts to cover initial margin requirements on open
futures sales contracts. See Note 5 of Notes to Financial Statements.
4. Floating or variable rate obligation maturing in more than one year.
The interest rate, which is based on specific, or an index of, market
interest rates, is subject to change periodically and is the effective
rate on September 30, 1996. This instrument may also have a demand
feature which allows the recovery of principal at any time, or at
specified intervals not exceeding one year, on up to 30 days' notice.
Maturity date shown represents effective maturity based on variable
rate and, if applicable, demand feature.
10 Oppenheimer New York Municipal Fund
<PAGE> 11
- --------------------------------------------------------------------------------
As of September 30, 1996, securities subject to the alternative minimum
tax amounted to $92,289,229 or 12% of the Fund's net assets.
Distribution of investments by industry, as a percentage of total
investments at value, is as follows:
<TABLE>
<CAPTION>
INDUSTRY MARKET VALUE PERCENT
----------------------------------------------------------------------
<S> <C> <C>
Education $155,257,364 20.3%
Lease/Rental 128,618,308 16.8
Transportation 100,583,655 13.1
General Obligation Bonds 93,990,986 12.3
Utilities 79,920,772 10.4
Housing 53,677,040 7.0
Special Tax Bonds 49,721,669 6.5
Hospitals 39,535,174 5.2
Pollution Control 28,615,724 3.7
Corporate-Backed Municipals 26,422,084 3.5
Revenue Bonds 4,895,650 0.6
Industrial Development 4,238,034 0.6
------------ -----
$765,476,460 100.0%
============ =====
</TABLE>
To simplify the listings of the Oppenheimer New York Municipal Fund
holdings in the Statement of Investments, we have abbreviated the
descriptions of many of the securities per the table below:
<TABLE>
<S> <C> <C>
BOE --Board of Education HFASC --Housing Finance Agency Service Contract
CDA --Communities Development Authority HFAU --Health Facilities Authority
CDC --Community Development Corporation HFDC --Health Facilities Development Corporation
COP --Certificates of Participation HTA --Highway & Transportation Authority
CUS --City University System IDA --Industrial Development Authority
DA --Dormitory Authority LMC --Loan Marketing Corporation
EFCPC --Environmental Facilities Corporation MCFFA --Medical Care Facilities Finance Agency
Pollution Control MH --Multifamily Housing
EPA --Electric Power Authority MTA --Metropolitan Transportation Authority
ERDAEF --Energy Research & Development MWFA --Municipal Water Finance Authority
Authority Electric Facilities NYC --New York City
ERDAGF --Energy Research & Development NYS --New York State
Authority Gas Facilities PANYNJ --Port Authority of New York & New Jersey
FA --Facilities Authority PAU --Power Authority
GAC --Government Assistance Corporation PC --Pollution Control
GOB --General Obligation Bonds RB --Revenue Bonds
GORB --General Obligation Refunding Bonds RR --Resource Recovery
HA --Hospital Authority RRB --Revenue Refunding Bonds
HDA --Hospital Development Authority SAC --Student Assistance Corporation
HDC --Housing Development Corporation SUEFS --State University Educational Facilities System
HEAA --Higher Education Assistance Agency SWD --Solid Waste Disposal
HEFA --Higher Educational Facilities Authority TBTA --Triborough Bridge & Tunnel Authority
HF --Health Facilities UDC --Urban Development Corporation
HFA --Housing Finance Agency WSS --Water & Sewer System
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer New York Municipal Fund
<PAGE> 12
STATEMENT OF ASSETS AND LIABILITIES September 30, 1996
<TABLE>
===========================================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $753,071,413)--see accompanying statement $765,476,460
-------------------------------------------------------------------------------------------------------------------
Cash 327,357
-------------------------------------------------------------------------------------------------------------------
Receivables:
Interest 13,172,801
Shares of beneficial interest sold 2,011,500
Daily variation on futures contracts--Note 5 140,625
-------------------------------------------------------------------------------------------------------------------
Other 18,527
------------
Total assets 781,147,270
===========================================================================================================================
LIABILITIES
Payables and other liabilities:
Investments purchased 4,899,483
Dividends 2,528,846
Shares of beneficial interest redeemed 2,149,260
Distribution and service plan fees 465,569
Trustees' fees 301,846
Transfer and shareholder servicing agent fees 81,309
Other 155,026
------------
Total liabilities 10,581,339
===========================================================================================================================
NET ASSETS $770,565,931
============
===========================================================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $763,238,702
-------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 620,943
-------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (5,355,011)
-------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Notes 3 and 5 12,061,297
------------
Net assets $770,565,931
============
===========================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $667,257,677 and 53,767,908 shares of beneficial interest outstanding) $12.41
Maximum offering price per share (net asset value
plus sales charge of 4.75% of offering price) $13.03
-------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $101,301,593 and 8,160,381 shares of beneficial interest outstanding) $12.41
-------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $2,006,661 and 161,657 shares of beneficial interest outstanding) $12.41
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer New York Municipal Fund
<PAGE> 13
STATEMENT OF OPERATIONS For the Year Ended September 30, 1996
<TABLE>
===========================================================================================================================
<S> <C>
INVESTMENT INCOME
Interest $50,277,244
===========================================================================================================================
EXPENSES
Management fees--Note 4 4,014,768
-------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,617,263
Class B 984,510
Class C 7,472
-------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 608,275
-------------------------------------------------------------------------------------------------------------------
Shareholder reports 233,985
-------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 208,938
-------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 100,488
-------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 59,539
-------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 3,277
Class C 700
-------------------------------------------------------------------------------------------------------------------
Other 57,514
-----------
Total expenses 7,896,729
===========================================================================================================================
NET INVESTMENT INCOME 42,380,515
===========================================================================================================================
REALIZED AND
UNREALIZED GAIN
Net realized gain on:
Investments 4,288,943
Closing of futures contracts 1,656,867
-----------
Net realized gain 5,945,810
-------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 425,530
-----------
Net realized and unrealized gain 6,371,340
===========================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $48,751,855
===========
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer New York Municipal Fund
<PAGE> 14
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1996 1995
===========================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 42,380,515 $ 42,025,406
-------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 5,945,810 (14,337,688)
-------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 425,530 38,448,536
------------ ------------
Net increase in net assets resulting from operations 48,751,855 66,136,254
===========================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (37,568,731) (38,964,531)
Class B (4,655,633) (4,185,973)
Class C (34,664) (60)
-------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (1,474,250)
Class B -- (195,772)
===========================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions--Note 2:
Class A (11,537,144) (32,998,922)
Class B 9,460,309 14,665,131
Class C 1,966,687 25,059
===========================================================================================================================
NET ASSETS
Total increase 6,382,679 3,006,936
-------------------------------------------------------------------------------------------------------------------
Beginning of period 764,183,252 761,176,316
------------ ------------
End of period [including undistributed (overdistributed) net
investment income of $620,943 and $(2,195,669), respectively] $770,565,931 $764,183,252
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer New York Municipal Fund
<PAGE> 15
Financial Highlights
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------
YEAR ENDED SEPTEMBER 30,
1996 1995 1994 1993 1992
=====================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $12.29 $11.92 $13.50 $12.59 $12.21
- -------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .68 .69 .74 .73 .79
Net realized and unrealized
gain (loss) .12 .41 (1.46) 1.01 .47
------ ------ ------ ------ ------
Total income (loss) from
investment operations .80 1.10 (.72) 1.74 1.26
- -------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net investment
income (.68) (.70) (.72) (.75) (.75)
Distributions from net realized gain -- (.03) (.03) (.08) (.13)
Distributions in excess of net
realized gain -- -- (.11) -- --
------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.68) (.73) (.86) (.83) (.88)
- -------------------------------------------------------------------------------------
Net asset value, end of period $12.41 $12.29 $11.92 $13.50 $12.59
====== ====== ====== ====== ======
=====================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 6.65% 9.58% (5.55)% 14.33% 10.72%
=====================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $667,258 $673,050 $687,233 $756,934 $530,260
- -------------------------------------------------------------------------------------
Average net assets (in thousands) $684,981 $659,465 $738,747 $652,327 $436,876
- -------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.50% 5.76% 5.68% 5.66% 6.33%
Expenses 0.91% 0.90% 0.86% 0.91% 0.96%
- -------------------------------------------------------------------------------------
Portfolio turnover rate(5) 21.2% 15.2% 9.4% 39.1% 30.5%
</TABLE>
<TABLE>
<CAPTION>
CLASS B CLASS C
------------------------------------ ----------------
YEAR ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
1996 1995 1994 1993(2) 1996 1995(1)
==================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $12.30 $11.93 $13.50 $13.07 $12.30 $12.22
- --------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .60 .60 .64 .36 .60 .05
Net realized and unrealized
gain (loss) .10 .42 (1.45) .44 .09 .08
------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations .70 1.02 (.81) .80 .69 .13
- --------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net investment
income (.59) (.62) (.62) (.37) (.58) (.05)
Distributions from net realized gain -- (.03) (.03) -- -- --
Distributions in excess of net
realized gain -- -- (.11) -- -- --
------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.59) (.65) (.76) (.37) (.58) (.05)
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $12.41 $12.30 $11.93 $13.50 $12.41 $12.30
====== ====== ====== ====== ====== ======
==================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 5.77% 8.75% (6.22)% 6.56% 5.64% 1.10%
==================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $101,302 $91,108 $73,943 $40,958 $2,007 $25
- --------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 98,488 $81,743 $61,008 $20,454 $ 752 $18
- --------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.73% 4.95% 4.88% 4.45%(4) 4.60% 3.67%(4)
Expenses 1.68% 1.67% 1.65% 1.73%(4) 1.77% 1.37%(4)
- --------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 21.2% 15.2% 9.4% 39.1% 21.2% 15.2%
</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. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
4. Annualized.
5. 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, 1996 were $164,934,339 and $189,341,203,
respectively.
See accompanying Notes to Financial Statements.
15 Oppenheimer New York Municipal Fund
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer New York Municipal Fund (the Fund) operating under the name
Oppenheimer New York Tax-Exempt Fund through October 9, 1996, is
registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. The Fund's
investment objective is to seek maximum current income exempt from
Federal, New York State & New York City income taxes for individual
investors that is consistent with the preservation of capital. The
Fund's investment adviser is OppenheimerFunds, Inc. (the Manager). The
Fund offers Class A, Class B and Class C shares. Class A shares are
sold with a front-end sales charge. Class B and Class C shares may be
subject to a contingent deferred sales charge. All 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 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, 1996, the Fund had available for federal
income tax purposes an unused capital loss carryover of approximately
$5,752,000, expiring in 2003 and 2004.
------------------------------------------------------------------------
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, 1996, a provision of
$131,331 was made for the Fund's projected benefit obligations and
payments of $6,672 were made to retired trustees, resulting in
an accumulated liability of $284,853 at September 30, 1996.
------------------------------------------------------------------------
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, 1996, the Fund
adjusted the classification of distributions to shareholders to reflect
the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly,
during the year ended September 30, 1996, amounts have been
reclassified to reflect a decrease in paid-in capital of $3,101,107, a
decrease in overdistributed net investment income of $2,695,125, and a
decrease in accumulated net realized loss on investments of $405,982.
16 Oppenheimer New York Municipal Fund
<PAGE> 17
================================================================================
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, on disposition or maturity,
taxable ordinary income is recognized to the extent of the lesser of
gain or market discount that would have accrued over the holding
period. 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.
The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
================================================================================
2. SHARES OF
BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1996 YEAR ENDED SEPTEMBER 30, 1995(1)
----------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 4,043,999 $ 50,569,882 6,112,332 $ 73,644,378
Issued in connection with the
acquisition of Quest for Value
New York Tax-Exempt Fund--Note 6 2,350,157 29,517,976 -- --
Dividends and distributions reinvested 2,105,244 26,158,018 2,407,670 28,865,634
Redeemed (9,480,179) (117,783,020) (11,415,065) (135,508,934)
---------- ------------ ----------- ------------
Net decrease (980,779) $(11,537,144) (2,895,063) $(32,998,922)
========== ============ =========== ============
-----------------------------------------------------------------------------------------------------------------
Class B:
Sold 1,631,788 $ 20,375,193 1,966,120 $ 23,621,179
Dividends and distributions reinvested 244,423 3,035,829 240,583 2,892,411
Redeemed (1,123,717) (13,950,713) (998,399) (11,848,459)
---------- ------------ ----------- ------------
Net increase 752,494 $ 9,460,309 1,208,304 $ 14,665,131
========== ============ =========== ============
-----------------------------------------------------------------------------------------------------------------
Class C:
Sold 170,206 $ 2,101,116 2,032 $25,059
Dividends and distributions reinvested 2,083 25,651 -- --
Redeemed (12,664) (160,080) -- --
---------- ------------ ----------- ------------
Net increase 159,625 $ 1,966,687 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, 1996, net unrealized appreciation on investments of
$12,405,047 was composed of gross appreciation of $23,943,925, and
gross depreciation of $11,538,878.
17 Oppenheimer New York Municipal Fund
<PAGE> 18
Notes to Financial Statements (Continued)
================================================================================
4. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of
0.60% on the first $200 million of average annual net assets, 0.55% on
the next $100 million, 0.50% on the next $200 million, 0.45% on the
next $250 million, 0.40% on the next $250 million and 0.35% on net
assets in excess of $1 billion. The Manager has agreed to assume Fund
expenses (with specified exceptions) in excess of the most stringent
applicable regulatory limit on Fund expenses.
For the year ended September 30, 1996, commissions
(sales charges paid by investors) on sales of Class A shares totaled
$1,211,472, of which $253,441 was retained by OppenheimerFunds
Distributor, Inc. (OFDI), a subsidiary of the Manager, as general
distributor, and by an affiliated broker/dealer. Sales charges advanced
to broker/dealers by OFDI on sales of the Fund's Class B and Class C
shares totaled $741,328 and $18,148, of which $15,725 was paid to an
affiliated broker/dealer for Class B. During the year ended September
30, 1996, OFDI received contingent deferred sales charges of $269,168
upon redemption of Class B shares, as reimbursement for sales
commissions advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the
Manager, is the transfer and shareholder servicing agent for the Fund,
and for other registered investment companies. OFS's total costs of
providing such services are allocated ratably to these companies.
The Fund has adopted a Service Plan for Class A shares
to reimburse OFDI for a portion of its costs incurred in connection
with the personal service and maintenance of accounts that hold Class A
shares. Reimbursement is made quarterly at an annual rate that may not
exceed 0.25% of the average annual net assets of Class A shares of the
Fund. OFDI uses the service fee to reimburse brokers, dealers, banks
and other financial institutions quarterly for providing personal
service and maintenance of accounts of their customers that hold Class
A shares. During the year ended September 30, 1996, OFDI paid $31,334
to an affiliated broker/dealer as reimbursement for Class A personal
service and maintenance expenses.
The Fund has adopted compensation type Distribution
and Service Plans for Class B and Class C shares to compensate OFDI for
its services and costs in distributing Class B and Class C shares and
servicing accounts. Under the Plans, the Fund pays OFDI an annual
asset-based sales charge of 0.75% per year on Class B shares and on
Class C shares, as compensation for sales commissions paid from its own
resources at the time of sale and associated financing costs. If the
Plans are terminated by the Fund, the Board of Trustees may allow the
Fund to continue payments of the asset-based sales charge to OFDI for
certain expenses it incurred before the Plans were terminated. OFDI
also receives a service fee of 0.25% per year as compensation for costs
incurred in connection with the personal service and maintenance of
accounts that hold shares of the Fund, including amounts paid to
brokers, dealers, banks and other financial institutions. Both fees are
computed on the average annual net assets of Class B and Class C
shares, determined as of the close of each regular business day. During
the year ended September 30, 1996, OFDI paid $6,633 to an affiliated
broker/dealer as compensation for Class B personal service and
maintenance expenses and retained $791,306 and $7,458, respectively, as
compensation for Class B and Class C sales commissions and service fee
advances, as well as financing costs. At September 30, 1996, OFDI had
incurred unreimbursed expenses of $3,195,951 for Class B and $23,950
for Class C.
18 Oppenheimer New York Municipal Fund
<PAGE> 19
================================================================================
5. FUTURES CONTRACTS
The Fund may buy and sell interest rate futures contracts in order to
gain exposure to or protect against changes in interest rates. The Fund
may also buy or write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge
against increases in interest rates and the resulting negative effect
on the value of fixed rate portfolio securities. The Fund may also
purchase futures contracts to gain exposure to changes in interest
rates as it may be more efficient or cost effective than actually
buying fixed income securities.
Upon entering into a futures contract, the Fund is
required to deposit either cash or securities in an amount (initial
margin) equal to a certain percentage of the contract value. Subsequent
payments (variation margin) are made or received by the Fund each day.
The variation margin payments are equal to the daily changes in the
contract value and are recorded as unrealized gains and losses. The
Fund recognizes a realized gain or loss when the contract is closed or
expires.
Securities held in collateralized accounts to cover
initial margin requirements on open futures contracts are noted in the
Statement of Investments. The Statement of Assets and Liabilities
reflects a receivable or payable for the daily mark to market for
variation margin.
Risks of entering into futures contracts (and related
options) include the possibility that there may be an illiquid market
and that a change in the value of the contract or option may not
correlate with changes in the value of the underlying securities.
At September 30, 1996, 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, 1996 DEPRECIATION
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury Bonds 12/96 500 $54,593,750 $343,750
</TABLE>
================================================================================
6. ACQUISITION OF QUEST FOR
VALUE NEW YORK
TAX-EXEMPT FUND
On November 24, 1995, Oppenheimer New York Municipal Fund acquired all
of the net assets of Quest for Value New York Tax-Exempt Fund, pursuant
to an Agreement and Plan of Reorganization approved by the Quest for
Value New York Tax-Exempt Fund shareholders on November 16, 1995. The
Fund issued 2,350,157 Class A shares of beneficial interest, valued at
$29,517,976, in exchange for the net assets, resulting in combined
Class A net assets of $698,806,316 on November 24, 1995. The net
assets acquired included net unrealized appreciation of $1,513,911. The
exchange qualifies as a tax-free reorganization for federal income tax
purposes.
19 Oppenheimer New York Municipal Fund
<PAGE> 20
INDEPENDENT AUDITORS' REPORT
================================================================================
The Board of Trustees and Shareholders of Oppenheimer New York
Municipal Fund:
We have audited the accompanying statements of investments and assets
and liabilities of Oppenheimer New York Municipal Fund (formerly
Oppenheimer New York Tax-Exempt Fund) as of September 30, 1996, 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
five 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, 1996, 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 Municipal Fund as of
September 30, 1996, 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 five year period then ended, in conformity with generally
accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
October 21, 1996
20 Oppenheimer New York Municipal Fund
<PAGE> 21
FEDERAL INCOME TAX INFORMATION (Unaudited)
================================================================================
In early 1997, shareholders will receive information regarding all
dividends and distributions paid to them by the Fund during calendar
year 1996. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
None of the dividends paid by the Fund during the
fiscal year ended September 30, 1996 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 or to
alternative minimum tax, 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 adviser for specific guidance.
21 Oppenheimer New York Municipal Fund
<PAGE> 22
OPPENHEIMER NEW YORK MUNICIPAL FUND
================================================================================
OFFICERS AND TRUSTEES
Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert E. Patterson, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISER
OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF
PORTFOLIO SECURITIES
Citibank, N.A.
================================================================================
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
================================================================================
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of Oppenheimer New York
Municipal Fund. This report must be preceded or accompanied by a
Prospectus of Oppenheimer New York Municipal 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 Municipal Fund
<PAGE> 23
OPPENHEIMERFUNDS FAMILY
================================================================================
OppenheimerFunds offers over 50 funds designed to fit virtually every
investment goal. Whether you're investing for retirement, your children's
education or tax-free income, we have the funds to help you seek your
objective.
When you invest with OppenheimerFunds, you can feel
comfortable knowing that you are investing with a respected financial
institution with over 35 years of experience in helping people just like you
reach their financial goals. And you're investing with a leader in global,
growth stock and flexible fixed-income investments--with over 3 million
shareholder accounts and more than $55 billion under OppenheimerFunds'
management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to exchange
shares. And you can exchange shares easily by mail or by telephone.(1) For more
information on Oppenheimer funds, please contact your financial adviser or call
us at 1-800-525-7048 for a prospectus. You may also write us at the address
shown on the back cover. As always, please read the prospectus carefully before
you invest.
<TABLE>
=========================================================================================
<S> <C>
STOCK FUNDS
Global Emerging Growth Fund Growth Fund
Enterprise Fund(2) Global Fund
International Growth Fund Quest Global Value Fund
Discovery Fund Disciplined Value Fund
Quest Small Cap Value Fund Oppenheimer Fund
Gold & Special Minerals Fund Value Stock Fund
Target Fund Quest Value Fund
=========================================================================================
STOCK & BOND FUNDS
Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
=========================================================================================
BOND FUNDS
International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
=========================================================================================
MUNICIPAL FUNDS
California Municipal Fund(3) Insured Municipal Fund
Florida Municipal Fund(3) Intermediate Municipal Fund
New Jersey Municipal Fund(3)
New York Municipal Fund(3) Rochester Division
Pennsylvania Municipal Fund(3) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
=========================================================================================
MONEY MARKET FUNDS(4)
Money Market Fund Cash Reserves
=========================================================================================
LIFESPAN
Growth Fund Income Fund
Balanced Fund
</TABLE>
1. Exchange privileges are subject to change or termination. Shares may
be exchanged only for shares of the same class of eligible funds.
2.Effective 4/1/96, the Fund is closed to new investors.
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor
guaranteed by the U.S. government and there can be no assurance that a
money market fund will be able to maintain a stable net asset value of
$1.00 per share. Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY 10048-0203.
(C) Copyright 1996 OppenheimerFunds, Inc. All rights reserved.
23 Oppenheimer New York Municipal Fund
<PAGE> 24
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated
information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RA0855.001.0996 November 30, 1996
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
"How may I help you?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing
simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling
our toll-free Telephone Transactions number. And, by enrolling in AccountLink,
a convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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U.S. Postage
PAID
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