<PAGE> 1
OPPENHEIMER NEW YORK MUNICIPAL FUND
SEMIANNUAL REPORT MARCH 31, 1997
"We want
investment
income that
won't add
to our
taxes."
[OPPENHEIMERFUNDS LOGO]
OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO NEED INCOME
THAT'S EXEMPT FROM INCOME TAXES.
YIELD
STANDARDIZED YIELDS
For the 30 Days Ended 3/31/97:(4)
Class A
4.75%
Class B
4.22%
Class C
4.22%
BEAT THE AVERAGE
Total Return for the 1-Year Period Ended 3/31/97:
Oppenheimer New York
Municipal Fund
Class A Shares (at net asset value)(2)
5.14%
Lipper New York Municipal Debt
Average for 94 Funds for the
1-Year Period Ended 3/31/97(5)
4.44%
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 for the six months ended 3/31/97 were 2.19% for Class A shares,
1.81% for Class B shares and 1.79% for Class C shares, without deducting sales
charges.(2)
Your Fund's average annual total returns for Class A shares for the
1-, 5- and 10-year periods ended 3/31/97 were 0.15%, 5.75% and 6.16%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 3/31/97 and since inception on 3/1/93 were (0.62)% and 3.44%,
respectively. For Class C shares, average annual total returns for the 1-year
period ended 3/31/97 and since inception on 8/29/95 were 3.29% and 5.40%,
respectively.(3)
OUTLOOK
"The increased supply of municipal bonds should help to drive yields up again,
making it easier to identify higher-yielding situations with manageable risk."
Robert Patterson, Portfolio Manager
March 31, 1997
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the period shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
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. Includes change in net asset value per share for the period shown. Such
performance is not annualized and would have been lower if sales charges were
taken into account.
3. Class A returns include the current maximum initial sales charge of 4.75%.
Class 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 include
the applicable contingent deferred sales charge of 5% (1 year) and 2% (since
inception). Class C returns include the 1% contingent deferred sales charge for
the 1-year result. An explanation of the different total returns is in the
Fund's prospectus. Class B and Class C shares are subject to an annual 0.75%
asset-based sales charge.
4. Standardized yield is based on net investment income calculated for the
30-day period ended 3/31/97. Falling net asset values will tend to artificially
raise yields.
5. Source: Lipper Analytical Services, 3/31/97. The Lipper average is shown for
comparative purposes only. Funds included in the index may have different
investment policies and risks than the Fund. Oppenheimer New York Municipal
Fund is characterized by Lipper as a New York municipal debt fund. Lipper
performance is based on total return and does not take sales charges into
account.
2 Oppenheimer New York Municipal Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
New York
Municipal Fund
DEAR SHAREHOLDER,
For 1997, many industry analysts had anticipated a slow, sluggish year. This is
a prediction that just hasn't held true, due to the fact that the bond market
has continued to experience a quiet, yet solid, rebound during the first
quarter of this year.
Looking back at the second half of 1996, the sentiment was that
moderate economic growth and low inflation would help stabilize interest rates,
all factors that would be beneficial for the bond market. And that's exactly
how events unfolded. For example, in October, the economy was characterized by
a firm dollar, low inflation and slow growth. It appeared that earlier concerns
about rapid inflationary growth had been overblown, and interest rates declined
soon afterward. With continued, sustainable, non-inflationary growth of around
2% to 2.5%, the economy seemed to have settled into a comfortable pattern of
neither too little nor too much growth.
This year has turned out to be lively, particularly in the past few
months. President Clinton released the blueprint for a five-year agreement to
balance the federal budget, as promised in his campaign for a second term.
Immediately following the plan's announcement, the U.S. Labor Department
released a report stating that the unemployment rate dropped to 4.9% of the
work force in April--the lowest level since 1973. In response to this good
news, the stock market surged to yet another record high and the yield on the
benchmark 30-year Treasury bond retreated to 6.88%, its lowest level since
early March. Finally, the other good news for municipal bond investors is that
President Clinton has no plans of initiating a flat tax, a proposal that would
have eliminated the tax advantages of municipal bonds.
On the other hand, investors may have experienced some volatility in
the income stream from municipal bond funds. This is primarily because the
availability of quality bonds paying high yields has decreased over the past
few years. However, we believe that over the long term and on a tax-adjusted
basis, our funds should continue to offer potential for value with higher
income.
When you consider the combination of these developments--a sustained
economic growth pattern, a balanced federal budget and the dissipated threat of
a flat tax--the tax advantages of municipal bond fund investing become much
more attractive.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds, The Right Way to Invest. We look forward to helping you reach
your investment goals in the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
April 21, 1997
3 Oppenheimer New York Municipal Fund
<PAGE> 4
[PHOTO]
Q + A
Q WHAT AREAS ARE YOU CURRENTLY TARGETING?
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED?
The municipal bond market remained relatively quiet with some bouts of
volatility and yields remained within a narrow trading range. Rates were
influenced by a small supply of new issues matched by a large demand for
municipal bonds. In this environment, Oppenheimer New York Municipal Fund's
Class A shares earned 2.19%, before sales charges, for the six-month period
ending 3/31/97.(1)
The Fund maintained favorable performance relative to several of its
peers by investing in shorter maturity bonds for liquidity and hedging a
portion of the Fund's portfolio with Treasury futures to reduce volatility.
[PHOTO]
WHAT INVESTMENTS OR MARKET CONDITIONS MADE POSITIVE CONTRIBUTIONS TO
PERFORMANCE?
During the period, we continued to invest heavily in revenue bonds. These bonds
generally support an essential purpose, such as toll roads, water or sewers,
and are backed by a definable source of income. We also invested in insured
higher education bonds such as a highly regarded New York private college. The
investment provided yield for the Fund, in addition to substantial default
protection from the bond insurer.
Furthermore, we held an overweighted position in prerefunded and other
insured bonds, using them as a source of liquidity and as a defensive position.
Prerefunded bonds are a strong liquid investment because their durations to
maturity are relatively short. Insured bonds are a good defensive investment
because the risk of default is absorbed by the bond's insurer.(2)
DID ANY INVESTMENTS NOT PERFORM AS EXPECTED?
Near the end of 1996, rates in the municipal bond market
[PHOTO]
1. Includes change in net asset value per share for the period shown. Such
performance is not annualized and would have been lower if sales charges were
taken into account.
2. The Fund's portfolio is subject to change.
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,
Member of Tax-Exempt Fixed
Income Investments Team
THIS PAGE
Top: Robert Patterson
Bottom: Caryn Halbrecht with
Donna Compert, Municipal
Securities Trader
A WE WILL SEEK OUT OPPORTUNITIES IN THE ELECTRIC UTILITIES SECTOR.
increased momentarily before falling to the low levels that marked most of the
period. Although both our insured and prerefunded holdings performed as we had
expected, they were not able to match the temporarily stronger market
performance of longer-duration bonds in October and November.
WHAT AREAS ARE YOU CURRENTLY TARGETING?
Deregulation in the electric utility sector should lead to the emergence of a
few strong, competitive companies. We will seek out opportunities in this
sector as they become available. We continue to see both New York State and New
York City taking positive steps toward dealing with their high debt levels. In
addition, we expect to see new bonds issued by both of these entities and their
subdivisions, and are looking for suitable investments with high yield and low
call risk to add to the Fund's portfolio.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Although we anticipate a steadily growing economy, mixed economic signals
indicate potential inflationary pressure. We will therefore manage the Fund to
avoid undue interest-rate risk by staying close to neutral duration, a measure
of the portfolio's price sensitivity to interest rate changes. Also, the
increased supply of municipal bonds should help to drive yields up again,
making it easier to identify higher-yielding situations with manageable risk.
As the state and city budget process unfolds, bond issuers will bring new
projects to the municipal bond market.
[PHOTO]
[PHOTO]
5 Oppenheimer New York Municipal Fund
<PAGE> 6
FINANCIALS
CONTENTS
STATEMENT OF INVESTMENTS 7
STATEMENT OF ASSETS AND LIABILITIES 13
STATEMENT OF OPERATIONS 14
STATEMENTS OF CHANGES IN NET ASSETS 15
FINANCIAL HIGHLIGHTS 16
NOTES TO FINANCIAL STATEMENTS 18
6 Oppenheimer New York Municipal Fund
<PAGE> 7
STATEMENT OF INVESTMENTS March 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
==================================================================================================================================
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--99.4%
- ----------------------------------------------------------------------------------------------------------------------------------
NEW YORK--83.5%
- ----------------------------------------------------------------------------------------------------------------------------------
Battery Park City, NY RB, Series A, AMBAC Insured,
5.50%, 11/1/16 Aaa/AAA $ 5,000,000 $ 4,811,350
---------------------------------------------------------------------------------------------------------------------------
Buffalo, NY GOB, Series E, AMBAC Insured,
6.65%, 12/1/13 Aaa/AAA/AAA 500,000 544,915
---------------------------------------------------------------------------------------------------------------------------
Grand Central District Management Assn., Inc.
NY Business District Capital Improvement RRB:
5.125%, 1/1/14 A1/A 1,000,000 914,670
5.25%, 1/1/22 A1/A 2,500,000 2,258,125
---------------------------------------------------------------------------------------------------------------------------
Nassau Cnty., NY GOB, Series L, AMBAC Insured,
6.25%, 10/15/09 Aaa/AAA/AAA 500,000 533,880
---------------------------------------------------------------------------------------------------------------------------
NY MTAU:
RB, Series J, FGIC Insured, 6.375%, 7/1/10 Aaa/AAA/AAA 500,000 530,875
RB, Transportation Facilities Service Contracts,
Series 3, 7.375%, 7/1/08 Baa1/BBB 250,000 277,040
RRB, Commuter Facilities Project, Series B,
MBIA Insured, 6.25%, 7/1/17 Aaa/AAA 350,000 361,788
---------------------------------------------------------------------------------------------------------------------------
NY TBTAU General Purpose:
RB, Series X, 6%, 1/1/14 Aa/A+ 14,510,000 14,714,446
RRB, Series A, 5%, 1/1/12 Aa/A+ 15,755,000 14,596,535
RRB, Series A, 5%, 1/1/15 Aa/A+ 7,500,000 6,789,675
RRB, Series B, 5%, 1/1/20 Aa/A+ 500,000 453,580
RRB, Series Y, 5.50%, 1/1/17 Aa/A+ 15,000,000 14,689,200
---------------------------------------------------------------------------------------------------------------------------
NY TBTAU Special Obligation RRB, Series A,
MBIA Insured, 6.625%, 1/1/17 Aaa/AAA 500,000 534,045
---------------------------------------------------------------------------------------------------------------------------
NYC GOB:
Inverse Floater, 7.231%, 8/1/08(1) Baa1/BBB+ 8,250,000 7,734,375
Inverse Floater, 8.26%, 8/1/13(1) Baa1/BBB+ 5,000,000 4,750,000
Inverse Floater, 8.26%, 8/1/14(1) Baa1/BBB+ 8,150,000 7,722,125
Prerefunded, Series D, 8%, 8/1/03 Aaa/BBB+/A- 545,000 621,289
Prerefunded, Series F, 8.25%, 11/15/17 Aaa/BBB+ 7,820,000 9,051,806
Series B, 8.25%, 6/1/07 Baa1/BBB+ 1,750,000 2,073,120
Series B, FSA Insured, Inverse Floater, 6.709%, 10/1/07(1) Aaa/AAA 7,500,000 7,455,750
Series H, 6.125%, 8/1/25 Baa1/BBB+/A- 6,000,000 5,834,460
Unrefunded Balance, Series A, 7.75%, 3/15/03 Baa1/BBB+/A- 150,000 162,240
Unrefunded Balance, Series A, 7.75%, 8/15/16 Baa1/BBB+ 157,500 173,762
Unrefunded Balance, Series F, 8.25%, 11/15/17 Baa1/BBB+ 680,000 766,992
Unrefunded Balance, Subseries C-1, 7.50%, 8/1/20 Baa1/BBB+/A- 180,000 199,107
---------------------------------------------------------------------------------------------------------------------------
NYC GORB:
Series B, MBIA Insured, 6.20%, 8/15/06 Aaa/AAA 3,500,000 3,746,085
Series D, MBIA Insured, 5.75%, 8/1/05 Aaa/AAA 450,000 468,382
Series F, 7.625%, 2/1/14 Baa1/BBB+ 350,000 384,958
---------------------------------------------------------------------------------------------------------------------------
NYC HDC MH RB:
Glenn Gardens Project, 6.50%, 1/15/18 NR/NR 2,923,612 2,906,772
Keith Plaza Project, 6.50%, 2/15/18 NR/NR 1,931,589 1,918,319
Series A, 5.625%, 5/1/12 Aa/AA 4,500,000 4,412,430
---------------------------------------------------------------------------------------------------------------------------
NYC Health & Hospital Corp. RRB, AMBAC Insured,
Inverse Floater, 7.54%, 2/15/23(1) Aaa/AAA/AAA 8,300,000 7,272,875
</TABLE>
7 Oppenheimer New York Municipal Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED)
NYC IDAU Civil Facility RB:
Community Resources Development, 7.50%, 8/1/26 NR/NR $ 3,500,000 $ 3,534,300
USTA National Tennis Center Project, FSA Insured,
6.375%, 11/15/14 Aaa/AAA 1,500,000 1,583,745
YMCA Greater NY Project, 5.80%, 8/1/16 Baa3/NR/BBB 1,000,000 963,810
YMCA Greater NY Project, Prerefunded, 8%, 8/1/16 Aaa/NR/BBB 3,950,000 4,512,361
---------------------------------------------------------------------------------------------------------------------------
NYC IDAU RB, VISY Paper, Inc. Project:
7.80%, 1/1/16 NR/NR 6,800,000 7,212,488
7.95%, 1/1/28 NR/NR 6,250,000 6,699,125
---------------------------------------------------------------------------------------------------------------------------
NYC IDAU Special Facilities RB, Terminal One
Group Assn. Project:
6%, 1/1/15 A/A/A- 6,000,000 5,855,520
6.125%, 1/1/24 A/A/A- 3,000,000 2,941,680
---------------------------------------------------------------------------------------------------------------------------
NYC MWFAU WSS:
RB, Prerefunded, Series C, 7.75%, 6/15/20 Aaa/A- 17,250,000 19,465,245
RB, Unrefunded Balance, Series B, 6.375%, 6/15/22 A2/A-/A 6,625,000 6,868,204
RRB, Series A-1994, 7.10%, 6/15/12 A2/A- 275,000 300,451
---------------------------------------------------------------------------------------------------------------------------
NYS DA RB:
City University-Third General Resolution,
Series 2, MBIA Insured, 6.875%, 7/1/14 Aaa/AAA/A- 500,000 551,295
Courts Facilities Lease, Series A, 5.50%, 5/15/10 Baa1/BBB+ 2,115,000 2,034,567
CUS, Prerefunded, Series A, 7.625%, 7/1/20 Aaa/BBB 14,500,000 16,084,415
CUS, Prerefunded, Series F, 7.875%, 7/1/07 Aaa/BBB 7,000,000 7,813,750
Department of Health, Series 1996, 5.75%, 7/1/17 Baa1/BBB/A 8,190,000 7,826,364
Ithaca College, AMBAC Insured, 5.25%, 7/1/26 Aaa/AAA 5,750,000 5,265,160
Judicial Facilities Lease, Escrowed to Maturity,
MBIA Insured, 7.375%, 7/1/16 Aaa/AAA 2,300,000 2,789,900
Menorah Campus, 7.30%, 8/1/16 NR/AA 195,000 212,497
Mental Health Facilities Project, AMBAC Insured,
5.25%, 2/15/18 Aaa/AAA/AAA 9,400,000 8,772,832
Pooled Capital Program, Partially Prerefunded,
FGIC Insured, 7.80%, 12/1/05 Aaa/AAA/AAA 6,835,000 7,335,049
Rockefeller University, MBIA Insured, 7.375%, 7/1/14 Aaa/AAA 4,000,000 4,223,880
---------------------------------------------------------------------------------------------------------------------------
NYS DA RRB:
CUS, Second Series A, 5.75%, 7/1/18 Baa1/BBB 6,750,000 6,559,920
CUS, Series B, 6%, 7/1/14 Baa1/BBB 10,875,000 10,949,494
CUS, Series E, 5.75%, 7/1/11 Baa1/BBB 5,955,000 5,903,013
CUS, Series V, 5.60%, 7/1/10 Baa1/BBB 5,000,000 4,854,000
Episcopal Health Services, Inc., 5.85%, 8/1/13 NR/AAA 500,000 507,690
Fordham University, FGIC Insured, 5.75%, 7/1/15 Aaa/AAA/AAA 9,100,000 9,063,418
NY University, Series A, MBIA Insured, 5%, 7/1/09 Aaa/AAA 9,000,000 8,675,730
St. Joseph's Hospital Health Center, MBIA Insured,
5.25%, 7/1/18 Aaa/AAA 5,035,000 4,695,842
St. Vincent's Hospital, 7.375%, 8/1/11 Aa/AAA 150,000 165,730
SUEFS, Prerefunded, Series A, 7.70%, 5/15/12 Aaa/BBB+/A 9,000,000 9,973,620
SUEFS, Prerefunded, Series B, 7.25%, 5/15/15 Aaa/BBB+ 7,230,000 7,918,441
SUEFS, Series A, 5.25%, 5/15/15 Baa1/BBB+ 23,090,000 21,274,664
SUEFS, Series A, 5.25%, 5/15/21 Baa1/BBB+ 5,010,000 4,530,894
SUEFS, Series B, 5.25%, 5/15/13 Baa1/BBB+/A 1,000,000 928,980
SUEFS, Series B, 7%, 5/15/16 Baa1/BBB+ 9,020,000 9,582,938
---------------------------------------------------------------------------------------------------------------------------
NYS EFCPC RB, State Water Revolving Fund:
Series A, 6.60%, 9/15/12 Aaa/AAA/AAA 250,000 272,517
Series C, 7.20%, 3/15/11 Aa2/A+/AA 350,000 378,409
Series E, 6.50%, 6/15/14 Aa2/A/AA 500,000 534,340
</TABLE>
8 Oppenheimer New York Municipal Fund
<PAGE> 9
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED)
NYS ERDAUEF RB:
Consolidated Edison Co., Series A, 7.50%, 1/1/26 Aa3/A+ $ 280,000 $ 298,519
Consolidated Edison Co., Series A, 7.75%, 1/1/24 A1/A+ 620,000 641,173
Consolidated Edison Co., Series B, 7.375%, 7/1/24 Aa3/A+ 200,000 207,236
L.I. Lighting Co., Series A, 7.15%, 12/1/20 Ba1/BB+ 7,500,000 8,000,475
L.I. Lighting Co., Series C, 6.90%, 8/1/22 Ba1/BB+ 9,200,000 9,726,608
---------------------------------------------------------------------------------------------------------------------------
NYS ERDAUGF RB, Brooklyn Union Gas Co.:
Series B, Inverse Floater, 9.868%, 7/1/26(1) A1/A/A 6,000,000 7,020,000
Series D, MBIA Insured, Inverse Floater, 7.498%, 7/8/26(1) Aaa/AAA/A 3,000,000 2,550,000
---------------------------------------------------------------------------------------------------------------------------
NYS GOB:
6.875%, 3/1/12 A2/A- 500,000 539,930
7%, 2/1/09 A2/A- 300,000 325,389
---------------------------------------------------------------------------------------------------------------------------
NYS GORB, 7.50%, 11/15/00 A2/A- 500,000 546,355
---------------------------------------------------------------------------------------------------------------------------
NYS HFA MH RB, Secured Mtg.:
Program-A, 7.05%, 8/15/24 Aa/NR 350,000 368,623
Program-C, 6.95%, 8/15/24 Aa/NR 235,000 246,127
---------------------------------------------------------------------------------------------------------------------------
NYS HFA:
RB, Prerefunded, 8%, 11/1/08 Aaa/BBB+ 2,690,000 3,033,110
RB, Unrefunded Balance, 8%, 11/1/08 Baa/BBB+ 550,000 609,158
RRB, Housing Mtg., Series A, 6.10%, 11/1/15 Aaa/AAA 12,375,000 12,705,289
RRB, State University Construction, Escrowed to
Maturity, Series A, 7.90%, 11/1/06 Aaa/AAA 1,750,000 2,079,193
RRB, Unrefunded Balance, 7.90%, 11/1/99 Baa2/BBB+ 2,720,000 2,866,662
---------------------------------------------------------------------------------------------------------------------------
NYS HFASC Obligation RB, Series A, 6%, 3/15/26 Baa1/BBB 10,000,000 9,764,900
---------------------------------------------------------------------------------------------------------------------------
NYS HFASC RB:
Prerefunded, Series A, 7.375%, 9/15/21 Aaa/AAA 9,050,000 10,194,825
Series D, 5.375%, 3/15/23 Baa1/BBB 9,000,000 7,968,510
---------------------------------------------------------------------------------------------------------------------------
NYS LGAC:
RB, Prerefunded, Series C, 7%, 4/1/21(2) Aaa/AAA/AAA 9,455,000 10,427,636
RB, Series A, 5.375%, 4/1/14 A3/A/A+ 5,500,000 5,272,410
RB, Series B, Prerefunded, 7.50%, 4/1/20 Aaa/AAA/AAA 2,310,000 2,588,494
RRB, Series B, 5.50%, 4/1/21 A3/A/A+ 10,000,000 9,326,300
RRB, Series C, 5%, 4/1/21 A3/A/A+ 15,000,000 13,096,350
RRB, Series E, 5%, 4/1/21 A3/A/A+ 500,000 445,260
---------------------------------------------------------------------------------------------------------------------------
NYS MCFFA RB:
Hospital & Nursing Home Project, Series D,
6.45%, 2/15/09 Aa/AAA 350,000 374,199
Long-Term Health Care, Series C, FSA Insured,
6.40%, 11/1/14 Aaa/AAA 2,800,000 2,911,916
Mental Health Services Facilities, Prerefunded,
Series B, 7.875%, 8/15/20 Aaa/AAA 5,095,000 5,697,739
Mental Health Services Facilities, Series A,
7.70%, 2/15/18 Baa1/BBB+ 765,000 799,999
Mental Health Services Facilities, Series A,
FGIC Insured, 6.375%, 8/15/17 Aaa/AAA/AAA 5,000,000 5,190,700
Mental Health Services Facilities, Unrefunded Balance,
Series A, 8.875%, 8/15/07 Baa1/BBB+ 6,800,000 7,049,356
Mental Health Services Facilities, Unrefunded Balance,
Series B, 7.875%, 8/15/20 Baa1/BBB+ 8,085,000 8,938,291
NY Hospital, Series A, AMBAC Insured, 6.75%, 8/15/14 Aaa/AAA/AAA 500,000 542,800
St. Francis Hospital, Series 1998A, FGIC Insured,
7.625%, 11/1/21 Aaa/AAA/AAA 2,690,000 2,864,285
St. Luke's Hospital Center Mtg., Prerefunded,
Series B, 7.45%, 2/15/29 Aaa/AAA 7,500,000 8,213,850
</TABLE>
9 Oppenheimer New York Municipal Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED)
NYS MCFFA RRB:
Mental Health Services Facilities, Series F,
MBIA Insured, 5.375%, 2/15/14 Aaa/AAA $ 6,600,000 $ 6,286,566
North Shore University Hospital, MBIA Insured,
7.20%, 11/1/20 Aaa/AAA 250,000 272,833
Presbyterian Hospital, Series A, 5.25%, 8/15/14 Aa/AA 17,440,000 16,388,368
---------------------------------------------------------------------------------------------------------------------------
NYS MAG RB:
Homeowner Mtg., Series 1, 7.95%, 10/1/21 Aa2/NR 2,270,000 2,403,612
Homeowner Mtg., Series UU, 7.75%, 10/1/23 Aa/NR 1,990,000 2,095,709
Homeowner Mtg., Series VV, 7.375%, 10/1/11 Aa/NR 345,000 366,369
Inverse Floater, 7.015%, 10/1/24(1) NR/NR 9,000,000 7,245,000
Ninth Series B, 8.30%, 10/1/17 Aa/NR 1,720,000 1,759,577
Series 40-B, 6.40%, 10/1/12 Aa2/NR 500,000 516,610
Series C, 8.40%, 10/1/17 Aa/NR 1,700,000 1,731,144
---------------------------------------------------------------------------------------------------------------------------
NYS PAU General Purpose RB, Series B, 6.625%, 1/1/12 Aa/AA- 315,000 336,861
---------------------------------------------------------------------------------------------------------------------------
NYS Thruway Authority General RB, Series A,
5.75%, 1/1/19 A1/A 10,000,000 9,609,500
---------------------------------------------------------------------------------------------------------------------------
NYS Thruway Authority Service Contract RB, Local
Highway & Bridge Improvements, 5.125%, 4/1/07 Baa1/BBB 500,000 478,865
---------------------------------------------------------------------------------------------------------------------------
NYS UDC RB, Series A, MBIA Insured, 5.50%, 4/1/16 Aaa/AAA/AAA 7,500,000 7,263,900
---------------------------------------------------------------------------------------------------------------------------
NYS UDC RRB, Correctional Facilities Project,
FSA Insured, 5.50%, 1/1/15 Aaa/AAA/A 10,000,000 9,658,500
---------------------------------------------------------------------------------------------------------------------------
Onondaga Cnty., NY RR Agency RB,
RR Facilities Project, 7%, 5/1/15 Baa/NR/A- 15,600,000 16,206,060
---------------------------------------------------------------------------------------------------------------------------
PAUNYNJ Consolidated:
RB, 69th Series, 7.125%, 6/1/25 A1/AA-/AA- 4,155,000 4,469,160
RRB, 78th Series, 6.50%, 4/15/11 A1/AA-/AA- 250,000 267,028
RRB, 89th Series, 5%, 10/1/13 A1/AA-/AA- 500,000 459,625
---------------------------------------------------------------------------------------------------------------------------
PAUNYNJ Special Obligation RRB, KIAC-4 Project,
5th Installment, 6.75%, 10/1/19 NR/NR 12,600,000 12,975,858
------------
623,504,061
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--15.9%
- ----------------------------------------------------------------------------------------------------------------------------------
PR Commonwealth Aqueduct & Sewer Authority RB,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA 500,000 688,420
---------------------------------------------------------------------------------------------------------------------------
PR Commonwealth GOB, 5.375%, 7/1/25 Baa1/A 7,000,000 6,465,410
---------------------------------------------------------------------------------------------------------------------------
PR Commonwealth GORB:
FSA Insured, Inverse Floater, 8.382%, 7/1/20(1) Aaa/AAA 11,500,000 11,183,750
MBIA Insured, 5.25%, 7/1/18 Aaa/AAA 20,000,000 18,815,400
Prerefunded, 7.625%, 7/1/10 NR/AAA 3,000,000 3,334,560
Prerefunded, 7.70%, 7/1/20 NR/AAA 5,000,000 5,568,800
---------------------------------------------------------------------------------------------------------------------------
PR Commonwealth HTAU RB:
Prerefunded, Series S, 6.50%, 7/1/22 NR/AAA 10,000,000 10,967,500
Series W, Inverse Floater, 6.749%, 7/1/10(1) Baa1/A 9,000,000 8,336,250
---------------------------------------------------------------------------------------------------------------------------
PR Commonwealth Infrastructure FAU Special Tax RB,
Series A, 7.75%, 7/1/08 Baa1/BBB+ 6,000,000 6,360,600
---------------------------------------------------------------------------------------------------------------------------
PR EPAU CAP RRB, Series N, Zero Coupon, 5.93%, 7/1/17(3) Baa1/BBB+ 24,000,000 7,350,000
</TABLE>
10 Oppenheimer New York Municipal Fund
<PAGE> 11
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. POSSESSIONS (CONTINUED)
PR Housing Bank & Finance Agency SFM RB,
Homeownership-Fourth Portfolio, Escrowed to Maturity,
8.50%, 12/1/18 Aaa/NR $ 1,580,000 $ 1,839,910
---------------------------------------------------------------------------------------------------------------------------
PR Industrial, Medical & Environmental PC Facilities FAU RB:
American Airlines, Inc. Project, Series A, 6.45%, 12/1/25 Baa1/BB+ 850,000 888,667
American Home Products, 5.10%, 12/1/18 A2/NR 500,000 451,115
Warner Lambert Co. Project, 7.60%, 5/1/14 A1/NR 3,000,000 3,244,140
---------------------------------------------------------------------------------------------------------------------------
PR Port Authority RB, American Airlines
Special Facilities Project, Series A, 6.25%, 6/1/26 Baa3/BBB+ 8,000,000 8,153,760
---------------------------------------------------------------------------------------------------------------------------
PR Public Buildings Authority Guaranteed
Public Education & HF RB:
Series M, 5.75%, 7/1/15 Baa1/A 10,000,000 9,761,800
Prerefunded, Series L, 6.875%, 7/1/21 Aaa/AAA 5,400,000 6,013,116
---------------------------------------------------------------------------------------------------------------------------
PR Telephone Authority RB, MBIA Insured,
Inverse Floater, 7.068%, 1/16/15(1) Aaa/AAA 10,000,000 9,237,500
------------
118,660,698
------------
Total Municipal Bonds and Notes (Cost $735,820,283) 742,164,759
===================================================================================================================================
SHORT-TERM TAX-EXEMPT OBLIGATIONS--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
NYC Trust Cultural Resources RRB, American Museum
of Natural History, Series A, MBIA Insured, 3.30%, 4/2/97
(Cost $400,000)(4) 400,000 400,000
----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $736,220,283) 99.5% 742,564,759
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.5 3,688,778
----------- ------------
NET ASSETS 100.0% $746,253,537
=========== ============
</TABLE>
1. Represents the current interest rate for a variable rate bond. These bonds
known as "inverse floaters" pay interest at a rate that varies inversely with
short-term interest rates. As interest rates rise, inverse floaters produce
less current income. Their price may be more volatile than the price of a
comparable fixed-rate security. Inverse floaters amount to $80,507,625 or
10.79% of the Fund's net assets at March 31, 1997.
2. Securities with an aggregate market value of $2,536,601 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
3. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
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 March 31,
1997. 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.
11 Oppenheimer New York Municipal Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
- -------------------------------------------------------------------------------
As of March 31, 1997, securities subject to the alternative minimum tax
amounted to $96,245,130 or 12.90% 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>
Higher Education $143,567,852 19.3%
Lease Rental 101,624,934 13.7
General Obligation 99,002,841 13.3
Highways 81,221,606 10.9
Hospital/Healthcare 53,251,932 7.2
Sales Tax 41,156,449 5.5
Multi-Family Housing 32,322,461 4.4
Pollution Control 28,444,011 3.8
Water Utilities 27,322,320 3.7
Electric Utilities 20,662,719 2.8
Single Family Housing 17,957,932 2.4
Corporate Backed 17,839,627 2.4
Manufacturing, Non-Durable Goods 17,606,868 2.4
Resource Recovery 16,206,060 2.2
Special Assessment 14,344,745 1.9
Non-Profit Organization 10,994,217 1.5
Telephone Utilities 9,237,500 1.2
Marine/Aviation Facilities 5,195,812 0.7
Adult Living Facilities 3,419,606 0.5
Sewer Utilities 1,185,267 0.2
------------- -------------
$742,564,759 100.0%
============= =============
</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>
CAP --Capital Appreciation L.I. --Long Island
CUS --City University System MAG --Mtg. Agency
DA --Dormitory Authority MCFFA --Medical Care Facilities Finance Agency
EFCPC --Environmental Facilities Corp. MH --Multifamily Housing
Pollution Control MTAU --Metropolitan Transportation Authority
EPAU --Electric Power Authority MWFAU --Municipal Water Finance Authority
ERDAUEF --Energy Research & Development NYC --New York City
Authority Electric Facilities NYS --New York State
ERDAUGF --Energy Research & Development PAUNYNJ --Port Authority of New York & New Jersey
Authority Gas Facilities PAU --Power Authority
FAU --Finance Authority PC --Pollution Control
GOB --General Obligation Bonds RB --Revenue Bonds
GORB --General Obligation Refunding Bonds RR --Resource Recovery
HDC --Housing Development Corp. RRB --Revenue Refunding Bonds
HF --Health Facilities SFM --Single Family Mortgage
HFA --Housing Finance Agency SUEFS --State University Educational Facilities System
HFASC --Housing Finance Agency Service Contract TBTAU --Triborough Bridge & Tunnel Authority
HTAU --Highway & Transportation Authority UDC --Urban Development Corp.
IDAU --Industrial Development Authority WSS --Water & Sewer System
LGAC --Local Government Assistance Corp.
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer New York Municipal Fund
<PAGE> 13
STATEMENT OF ASSETS AND LIABILITIES March 31, 1997 (Unaudited)
<TABLE>
<S> <C>
==================================================================================================================================
ASSETS
Investments, at value (cost $736,220,283)--see accompanying statement $742,564,759
--------------------------------------------------------------------------------------------------------------------------
Cash 216,572
--------------------------------------------------------------------------------------------------------------------------
Receivables:
Interest 12,572,986
Investments sold 4,221,366
Shares of beneficial interest sold 484,635
Daily variation on futures contracts--Note 5 117,188
--------------------------------------------------------------------------------------------------------------------------
Other 21,149
------------
Total assets 760,198,655
==================================================================================================================================
LIABILITIES
Payables and other liabilities:
Investments purchased 6,594,194
Shares of beneficial interest redeemed 3,869,186
Dividends 2,492,686
Distribution and service plan fees 453,571
Trustees' fees--Note 1 277,059
Transfer and shareholder servicing agent fees 68,803
Other 189,619
------------
Total liabilities 13,945,118
==================================================================================================================================
NET ASSETS $746,253,537
============
==================================================================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $743,101,510
--------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 633,457
--------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (6,041,531)
--------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Notes 3 and 5 8,560,101
--------------------------------------------------------------------------------------------------------------------------
Net assets $746,253,537
============
===================================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $639,415,283 and 51,809,759 shares of beneficial interest outstanding) $12.34
Maximum offering price per share (net asset value
plus sales charge of 4.75% of offering price) $12.96
---------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $103,044,582 and 8,347,834 shares of beneficial interest outstanding) $12.34
---------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $3,793,672 and 307,349 shares of beneficial interest outstanding) $12.34
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer New York Municipal Fund
<PAGE> 14
STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1997 (Unaudited)
<TABLE>
<S> <C>
===================================================================================================================================
INVESTMENT INCOME
Interest $24,429,598
===================================================================================================================================
EXPENSES
Management fees--Note 4 1,968,005
---------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 773,143
Class B 514,278
Class C 15,204
---------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 223,296
---------------------------------------------------------------------------------------------------------------------------
Shareholder reports 146,342
---------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 52,766
---------------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 32,315
---------------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 21,216
---------------------------------------------------------------------------------------------------------------------------
Insurance expenses 10,255
---------------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 733
Class C 530
---------------------------------------------------------------------------------------------------------------------------
Other 11,528
------------
Total expenses 3,769,611
===================================================================================================================================
NET INVESTMENT INCOME 20,659,987
===================================================================================================================================
REALIZED AND
UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 1,369,230
Closing of futures contracts (2,055,750)
------------
Net realized loss (686,520)
----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (3,501,196)
------------
Net realized and unrealized loss (4,187,716)
===================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $16,472,271
============
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer New York Municipal Fund
<PAGE> 15
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1997 SEPTEMBER 30,
(UNAUDITED) 1996
===================================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 20,659,987 $ 42,380,515
---------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (686,520) 5,945,810
---------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (3,501,196) 425,530
------------ ------------
Net increase in net assets resulting from operations 16,472,271 48,751,855
===================================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (18,138,500) (37,568,731)
Class B (2,437,714) (4,655,633)
Class C (71,259) (34,664)
===================================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial
interest transactions--Note 2:
Class A (24,313,677) (11,537,144)
Class B 2,356,865 9,460,309
Class C 1,819,620 1,966,687
===================================================================================================================================
NET ASSETS
Total increase (decrease) (24,312,394) 6,382,679
---------------------------------------------------------------------------------------------------------------------------
Beginning of period 770,565,931 764,183,252
------------ ------------
End of period (including undistributed net investment
income of $633,457 and $620,943, respectively) $746,253,537 $770,565,931
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer New York Municipal Fund
<PAGE> 16
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, 1997 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
==============================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $12.41 $ 12.29 $ 11.92 $ 13.50
- ----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .34 .68 .69 .74
Net realized and unrealized gain (loss) (.07) .12 .41 (1.46)
-------- -------- -------- -------
Total income (loss) from investment operations .27 .80 1.10 (.72)
- ----------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.34) (.68) (.70) (.72)
Distributions from net realized gain -- -- (.03) (.03)
Distributions in excess of net realized gain -- -- -- (.11)
-------- ------ -------- -------
Total dividends and distributions to
shareholders (.34) (.68) (.73) (.86)
- ----------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.34 $ 12.41 $ 12.29 $ 11.92
======== ======== ======== =======
==============================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 2.19% 6.65% 9.58% (5.55)%
==============================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $639,415 $667,258 $673,050 $687,233
- ----------------------------------------------------------------------------------------------
Average net assets (in thousands) $662,814 $684,981 $659,465 $738,747
- ----------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.49%(4) 5.50% 5.76% 5.68%
Expenses 0.88%(4) 0.91% 0.90% 0.86%
- ----------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 8.9% 21.2% 15.2% 9.4%
</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.
16 Oppenheimer New York Municipal Fund
<PAGE> 17
<TABLE>
<CAPTION>
CLASS B CLASS C
- ----------------- ------------------------------------------------- --------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
MARCH 31, 1997 YEAR ENDED SEPTEMBER 30, MARCH 31, 1997 YEAR ENDED SEPTEMBER 30,
1993 1992 (UNAUDITED) 1996 1995 1994 1993(2) (UNAUDITED) 1996 1995(1)
=====================================================================================================================
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$12.59 $12.21 $12.41 $12.30 $11.93 $13.50 $13.07 $12.41 $12.30 $12.22
- ---------------------------------------------------------------------------------------------------------------------
.73 .79 .30 .60 .60 .64 .36 .29 .60 .05
1.01 .47 (.07) .10 .42 (1.45) .44 (.07) .09 .08
- -------- -------- -------- -------- ------- ------- ------- ------ ------ ------
1.74 1.26 .23 .70 1.02 (.81) .80 .22 .69 .13
- ---------------------------------------------------------------------------------------------------------------------
(.75) (.75) (.30) (.59) (.62) (.62) (.37) (.29) (.58) (.05)
(.08) (.13) -- -- (.03) (.03) -- -- -- --
-- -- -- -- -- (.11) -- -- -- --
- -------- -------- -------- -------- ------- ------- -------- ------ ------ ------
(.83) (.88) (.30) (.59) (.65) (.76) (.37) (.29) (.58) (.05)
- ---------------------------------------------------------------------------------------------------------------------
$13.50 $12.59 $12.34 $12.41 $12.30 $11.93 $13.50 $12.34 $12.41 $12.30
======== ======== ======== ======== ======= ======= ======= ====== ====== ======
=====================================================================================================================
14.33% 10.72% 1.81% 5.77% 8.75% (6.22)% 6.56% 1.79% 5.64% 1.10%
=====================================================================================================================
$756,934 $530,260 $103,045 $101,302 $91,108 $73,943 $40,958 $3,794 $2,007 $25
- ---------------------------------------------------------------------------------------------------------------------
$652,327 $436,876 $103,287 $98,488 $81,743 $61,008 $20,454 $3,062 $752 $18
- ---------------------------------------------------------------------------------------------------------------------
5.66% 6.33% 4.72%(4) 4.73% 4.95% 4.88% 4.45%(4) 4.65%(4) 4.60% 3.67%(4)
0.91% 0.96% 1.64%(4) 1.68% 1.67% 1.65% 1.73%(4) 1.66%(4) 1.77% 1.37%(4)
- ---------------------------------------------------------------------------------------------------------------------
39.1% 30.5% 8.9% 21.2% 15.2% 9.4% 39.1% 8.9% 21.2% 15.2%
</TABLE>
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 March 31, 1997 were $67,358,916 and $85,601,551,
respectively.
See accompanying Notes to Financial Statements.
17 Oppenheimer New York Municipal Fund
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (Unaudited)
===============================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer New York Municipal 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 objective is to
seek maximum current income exempt from federal, New York State & New
York City income taxes for individual investors as is available from
municipal securities and 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 classes of shares
have identical rights to earnings, assets and voting privileges, except
that each class has its own distribution and/or service plan, expenses
directly attributable to a particular class and exclusive voting rights
with respect to matters affecting a single class. Class B shares will
automatically convert to Class A shares six years after the date of
purchase. The following is a summary of significant accounting policies
consistently followed by the Fund.
------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the close of
the New York Stock Exchange on each trading day. Listed and unlisted
securities for which such information is regularly reported are valued
at the last sale price of the day or, in the absence of sales, at values
based on the closing bid or the last sale price on the prior trading
day. Long-term and short-term "non-money market" debt securities are
valued by a portfolio pricing service approved by the Board of Trustees.
Such securities which cannot be valued by the approved portfolio pricing
service are valued using dealer-supplied valuations provided the Manager
is satisfied that the firm rendering the quotes is reliable and that the
quotes reflect current market value, or are valued under consistently
applied procedures established by the Board of Trustees to determine
fair value in good faith. Short-term "money market type" debt securities
having a remaining maturity of 60 days or less are valued at cost (or
last determined market value) adjusted for amortization to maturity of
any premium or discount.
------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income, expenses
(other than those attributable to a specific class) and gains and losses
are allocated daily to each class of shares based upon the relative
proportion of net assets represented by such class. Operating expenses
directly attributable to a specific class are charged against the
operations of that class.
------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions of
the Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income, including any net realized
gain on investments not offset by loss carryovers, to shareholders.
Therefore, no federal income or excise tax provision is required.
------------------------------------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement
plan for the Fund's independent trustees. Benefits are based on years of
service and fees paid to each trustee during the years of service.
During the six months ended March 31, 1997, a reduction of $25,199 was
made for the Fund's projected benefit obligations and payments of
$11,314 were made to retired trustees, resulting in an accumulated
liability of $248,340 at March 31, 1997.
------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends
separately for Class A, Class B and Class C shares from net investment
income each day the New York Stock Exchange is open for business and pay
such dividends monthly. Distributions from net realized gains on
investments, if any, will be declared at least once each year.
------------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income
(loss) and net realized gain (loss) may differ for financial statement
and tax purposes primarily because of premium amortization for tax
purposes. The character of the distributions made during the year from
net investment income or net realized gains may differ from their
ultimate characterization for federal income tax purposes. Also, due to
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized gain
was recorded by the Fund.
18 Oppenheimer New York Municipal Fund
<PAGE> 19
===============================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
OTHER. Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Original issue discount
on securities purchased is amortized over the life of the respective
securities, in accordance with federal income tax requirements. For
bonds acquired after April 30, 1993, 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>
SIX MONTHS ENDED MARCH 31, 1997 YEAR ENDED SEPTEMBER 30, 1996
-------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 3,118,766 $ 39,012,217 4,043,999 $ 50,569,882
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 996,767 12,455,563 2,105,244 26,158,018
Redeemed (6,073,682) (75,781,457) (9,480,179) (117,783,020)
---------- ------------ ---------- ------------
Net decrease (1,958,149) $(24,313,677) (980,779) $(11,537,144)
========== ============ ========== ============
--------------------------------------------------------------------------------------------------------------------
Class B:
Sold 686,622 $ 8,587,188 1,631,788 $ 20,375,193
Dividends and distributions reinvested 125,722 1,571,757 244,423 3,035,829
Redeemed (624,891) (7,802,080) (1,123,717) (13,950,713)
---------- ------------ ---------- ------------
Net increase 187,453 $ 2,356,865 752,494 $ 9,460,309
========== ============ ========== ============
--------------------------------------------------------------------------------------------------------------------
Class C:
Sold 192,986 $ 2,410,274 170,206 $ 2,101,116
Dividends and distributions reinvested 4,799 60,027 2,083 25,651
Redeemed (52,093) (650,681) (12,664) (160,080)
---------- ------------ ---------- ------------
Net increase 145,692 $ 1,819,620 159,625 $ 1,966,687
========== ============ ========== ============
</TABLE>
===============================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At March 31, 1997, net unrealized appreciation on investments of
$6,344,476 was composed of gross appreciation of $19,809,192, and gross
depreciation of $13,464,716.
19 Oppenheimer New York Municipal Fund
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
===============================================================================
4. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of
0.60% on the first $200 million of average annual net assets, 0.55% on
the next $100 million, 0.50% on the next $200 million, 0.45% on the next
$250 million, 0.40% on the next $250 million and 0.35% on net assets in
excess of $1 billion.
For the six months ended March 31, 1997, commissions (sales
charges paid by investors) on sales of Class A shares totaled $478,206,
of which $99,287 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 $319,375
and $22,435, of which $6,129 was paid to an affiliated broker/dealer for
Class B. During the six months ended March 31, 1997, OFDI received
contingent deferred sales charges of $135,362 and $3,352, respectively,
upon redemption of Class B and Class C shares, as reimbursement for
sales commissions advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is
the transfer and shareholder servicing agent for the Fund, and for other
registered investment companies. OFS's total costs of providing such
services are allocated ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to
reimburse OFDI for a portion of its costs incurred in connection with
the personal service and maintenance of accounts that hold Class A
shares. Reimbursement is made quarterly at an annual rate that may not
exceed 0.25% of the average annual net assets of Class A shares of the
Fund. OFDI uses the service fee to reimburse brokers, dealers, banks and
other financial institutions quarterly for providing personal service
and maintenance of accounts of their customers that hold Class A shares.
During the six months ended March 31, 1997, OFDI paid $15,420 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 Class C shares, as
compensation for sales commissions paid from its own resources at the
time of sale and associated financing costs. OFDI also receives a
service fee of 0.25% per year as compensation for costs incurred in
connection with the personal service and maintenance of accounts that
hold shares of the Fund, including amounts paid to brokers, dealers,
banks and other financial institutions. Both fees are computed on the
average annual net assets of Class B and Class C shares, determined as
of the close of each regular business day. During the six months ended
March 31, 1997, OFDI paid $3,287 to an affiliated broker/dealer as
compensation for Class B personal service and maintenance expenses and
retained $406,733 and $14,624, respectively, as compensation for Class B
and Class C sales commissions and service fee advances, as well as
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. At March 31, 1997, OFDI had incurred unreimbursed
expenses of $3,095,944 for Class B and $44,928 for Class C.
20 Oppenheimer New York Municipal Fund
<PAGE> 21
===============================================================================
5. FUTURES CONTRACTS
The Fund may buy and sell interest rate futures contracts in order to
gain exposure to or protect against changes in interest rates. The Fund
may also buy or write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against
increases in interest rates and the resulting negative effect on the
value of fixed rate portfolio securities. The Fund may also purchase
futures contracts to gain exposure to changes in interest rates as it
may be more efficient or cost effective than actually buying fixed
income securities.
Upon entering into a futures contract, the Fund is required to
deposit either cash or securities in an amount (initial margin) equal to
a certain percentage of the contract value. Subsequent payments
(variation margin) are made or received by the Fund each day. The
variation margin payments are equal to the daily changes in the contract
value and are recorded as unrealized gains and losses. The Fund
recognizes a realized gain or loss when the contract is closed or
expires.
Securities held in collateralized accounts to cover initial
margin requirements on open futures contracts are noted in the Statement
of Investments. The Statement of Assets and Liabilities reflects a
receivable or payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options)
include the possibility that there may be an illiquid market and that a
change in the value of the contract or option may not correlate with
changes in the value of the underlying securities.
At March 31, 1997, the Fund had outstanding futures contracts to sell
debt securities as follows:
<TABLE>
<CAPTION>
EXPIRATION NUMBER OF VALUATION AS OF UNREALIZED
DATE FUTURES CONTRACTS MARCH 31, 1997 DEPRECIATION
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury Bonds 6/97 750 $80,414,063 $2,215,625
</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.
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
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
The financial statements included herein have been taken from the
records of the Fund without examination by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer New York
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, 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 $60 billion under OppenheimerFunds'
management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to exchange shares. And
you can exchange shares easily by mail or by telephone.(1) For more
information on Oppenheimer funds, please contact your financial adviser
or call us at 1-800-525-7048 for a prospectus. You may also write us at
the address shown on the back cover. As always, please read the
prospectus carefully before you invest.
===============================================================================
REAL ASSET FUNDS
Real Asset Fund Gold & Special Minerals Fund
===============================================================================
STOCK FUNDS
Developing Markets Fund Growth Fund
Global Emerging Growth Fund Global Fund
Enterprise Fund(2) Quest Global Value Fund
International Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Fund Value Stock Fund
Capital Appreciation Fund(3) Quest Value Fund
Quest Capital Value Fund
===============================================================================
STOCK & BOND FUNDS
Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Multiple Strategies Fund(4)
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
===============================================================================
BOND FUNDS
International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
===============================================================================
MUNICIPAL FUNDS
California Municipal Fund(5) Insured Municipal Fund
Florida Municipal Fund(5) Intermediate Municipal Fund
New Jersey Municipal Fund(5)
New York Municipal Fund(5) Rochester Division
Pennsylvania Municipal Fund(5) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
===============================================================================
MONEY MARKET FUNDS(6)
Money Market Fund Cash Reserves
===============================================================================
LIFESPAN
Growth Fund Income Fund
Balanced Fund
1. Exchange privileges are subject to change or termination. Shares may be
exchanged only for shares of the same class of eligible funds.
2. Effective 4/1/96, the Fund is closed to new investors.
3. On 12/18/96, the Fund's name was changed from "Target Fund."
4. On 3/6/97, the Fund's name was changed from "Asset Allocation Fund."
5. Available only to investors in certain states.
6. An investment in money market funds is neither insured nor guaranteed by the
U.S. government and there can be no assurance that a money market fund will be
able to maintain a stable net asset value of $1.00 per share. Oppenheimer funds
are distributed by OppenheimerFunds Distributor, Inc., Two World Trade Center,
New York, NY 10048-0203. (C) Copyright 1997 OppenheimerFunds, Inc. All rights
reserved.
23 Oppenheimer 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
RS0360.001.0397 May 31, 1997
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
"How may I help you?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing
simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling
our toll-free Telephone Transactions number. And, by enrolling in AccountLink,
a convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
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