<PAGE> 1
ANNUAL REPORT SEPTEMBER 30, 1997
OPPENHEIMER
New York Municipal Fund
[PHOTO]
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
4 Fund Performance
6 An Interview with the Fund's Managers
9 Statement of Investments
16 Statement of Assets & Liabilities
18 Statement of Operations
19 Statements of Changes in Net Assets
20 Financial Highlights
22 Notes to Financial Statements
28 Independent Auditors' Report
29 Federal Income Tax Information
30 Officers & Trustees
32 Information & Services
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
- - IN NEW YORK, we concentrated on those issuers whose prospects have improved
with the state's economic climate. These included issuers of state appropriation
bonds--bonds connected with the annual state budget--such as bonds issued by the
city and state universities.
- - IMPROVING ECONOMIC CONDITIONS throughout New York led us to find creditworthy
investments in virtually all areas of the state.
- - WE FOCUSED ON HIGHER-QUALITY BONDS, because investors weren't being
compensated for taking higher risks associated with lower-rated bonds.
AVG ANNUAL TOTAL RETURNS
For the 1-year period ended
9/30/97 without sales charges(1)
CLASS A
8.78%
CLASS B
7.97%
CLASS C
7.95%
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
2 Oppenheimer New York Municipal Fund
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer New York
Municipal Fund
DEAR SHAREHOLDER,
- --------------------------------------------------------------------------------
As you are no doubt aware, during the end of October and early November many
stock markets around the world recorded their all-time largest point declines,
followed by subsequent gains and continued volatility, leaving investors
uncertain about what would occur next.
To put those events in focus, let's look at a "snapshot" of the two-week
time period. Sharp declines in the overseas stock markets, particularly in Asia,
triggered a series of sell-offs throughout Europe, Latin America and the United
States. In response, the U.S. stock market, as measured by the Dow Jones
Industrial Average, dropped 554 points on October 27, its largest point decline
in history. However, almost as quickly, the U.S. stock market bounced back over
the succeeding few days, regaining nearly all of its losses.
While no one could have predicted the timing or extent of these
fluctuations, many analysts, including our fund managers here at
OppenheimerFunds, had warned of a correction for several months. We believed
that U.S. valuations were too high, stocks were expensive relative to bonds,
recent corporate earnings were somewhat disappointing and that Federal Reserve
Chairman Alan Greenspan could possibly seek a short-term interest rate hike.
As a result, when October 27 arrived, our equity funds held above-average
cash positions relative to many of our competitors. Not only did our higher cash
levels serve as a protection, they also enabled us to buy the stocks of numerous
excellent companies that were selling at more reasonable prices. In addition,
our international and global funds were not as impacted because they weren't
heavily invested in Southeast Asia and Japan. Finally, on the fixed-income side,
our bond funds were generally characterized by longer-than-normal durations,
which allowed us to lock in higher yields.
In conclusion, many of our funds experienced relatively strong performance
during the October-November market shake-ups. We'd like to take this opportunity
to remind shareholders that stock market volatility is a normal and expected
part of the business cycle. As Alan Greenspan suggested, in years to come this
period will likely be remembered as a positive change for a market that was
growing too quickly.
For frequent market updates, please visit our website at
WWW.OPPENHEIMERFUNDS.COM or call 1-800-835-3104 to listen to our recorded
messages. In the meantime, 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.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
November 7, 1997
3 Oppenheimer New York Municipal Fund
<PAGE> 4
AVG ANNUAL TOTAL RETURNS
For the Period Ended 9/30/97(1)
<TABLE>
<CAPTION>
CLASS A
1 year 5 year 10 year
<S> <C> <C>
3.62% 5.56% 7.52%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
Since
1 year 5 year Inception
<S> <C> <C>
2.97% N/A 4.40%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
Since
1 year 5 year Inception
<S> <C> <C>
6.95% N/A 7.06%
</TABLE>
CUMULATIVE TOTAL RETURN
For the Period Ended 9/30/97(1)
<TABLE>
<CAPTION>
CLASS A
5 year
<S> <C>
31.06% $13,106(4)
</TABLE>
PERFORMANCE UPDATE
- --------------------------------------------------------------------------------
Oppenheimer New York Municipal Fund has performed very well over the past twelve
months, outperforming many of its competitors. The Fund's positive returns can
largely be attributed to successful management of the portfolio's average
duration, as well as focusing on those states and municipalities whose bonds
offered the most competitive income and best values.(3)
GROWTH OF $10,000
Over 5 years
(without sales charges)(4)
<TABLE>
<CAPTION>
Lehman Brothers Oppenheimer NY Municipal Fund
Municipal Bond Index Class A Shares
<S> <C>
9/30/92 10000 10000
10181.8 10221.5
10559.6 10599.9
10905.1 10966.3
11273.5 11421.5
11431.7 11563.3
10804.2 10842.9
10923.8 10841.1
10998.5 10784.6
10840.6 10540.8
11607 11372.1
11887.4 11612.9
12229.3 11822.2
12733.6 12402.9
12580 12255.1
12676.5 12307.2
12968.3 12610.5
13298.8 12917.4
13267.8 12885.9
13725.2 13370.1
9/30/97 14139.1 13721.7
</TABLE>
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. 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 for Class A shares was lower prior to 1/31/86, so actual
performance may have been higher. Class B returns include the applicable
contingent deferred sales charge of 5% (1-year) and 2% (since inception on
3/1/93). Class C returns for the 1-year result include the contingent deferred
sales charge of 1%. Class C shares have an inception date of 8/29/95. An
explanation of the different performance calculations is in the Fund's
prospectus. Class B and C shares are subject to an annual 0.75% asset-based
sales charge and 0.25% distribution fee, and Class A shares are subject to an
annual asset-based sales charge not to exceed 0.25%.
4 Oppenheimer New York Municipal Fund
<PAGE> 5
STANDARDIZED YIELDS (2)
For the 30 Days Ended 9/30/97
CLASS A
4.29%
CLASS B
3.74%
CLASS C
3.75%
CREDIT ALLOCATION (5)
<TABLE>
<S> <C>
AAA 45.57%
AA 4.42
A 23.24
BBB 17.47
BB 4.27
Not Rated 5.03
</TABLE>
PORTFOLIO REVIEW
- -------------------------------------------------------------------------------
Oppenheimer New York Municipal Fund is for investors looking for income that's
exempt from New York State, New York City and federal income taxes.
WHAT WE LOOK FOR
- - Issues that provide high TRIPLE TAX-FREE INCOME.
- - Value-oriented issues with PRICE APPRECIATION POTENTIAL.
- - A DIVERSITY OF ISSUES across the state.
- - Municipal regions with IMPROVING CREDIT QUALITY.
<TABLE>
<CAPTION>
TOP 5 SECTORS(5)
...............................................
<S> <C>
Higher Education 16.8%
...............................................
General Obligation 13.4
...............................................
Highways 11.7
...............................................
Hospitals/Healthcare 8.6
...............................................
Sales Tax 4.8
...............................................
</TABLE>
2. Standardized yield is based on net investment income for the 30-day period
ended 9/30/97. Falling net asset values will tend to artificially raise-yields.
3. Duration is a measure of the portfolio's sensitivity to interest rates.
4. Results of a hypothetical $10,000 investment in Class A shares on September
30, 1992. The Lehman Brothers Municipal Bond Index includes a broad range index
of municipal bonds. It is an unmanaged index, including reinvestment of income,
and cannot be purchased directly by investors.
5. Portfolio data are as of 9/30/97, and are subject to change. Portfolio data
are dollar-weighted based on total market value of investments. Securities rated
by any rating organization are included in the equivalent Standard & Poor's
rating category. Average credit quality and allocation include rated securities
and those not rated by a national rating organization (currently 5.03% of total
investments) but to which the ratings given above have been assigned by the
Manager for internal purposes as being comparable, in the Manager's judgment, to
securities rated by a rating agency in the same category.
5 Oppenheimer New York Municipal Fund
<PAGE> 6
"WE'VE HAD A VERY POSITIVE VIEW ON INFLATION RECENTLY."
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- --------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED OVER THE PAST 12 MONTHS?
Oppenheimer New York Municipal Fund's Class A shares have provided an average
annual total return of 8.78%, without sales charges, for the one-year period
ended September 30, 1997.(1)
WHAT INFLUENCES AND EVENTS HAD THE GREATEST EFFECT ON THE TAX-EXEMPT MARKET?
Yields on New York's municipal bonds generally followed the trends established
over the past 12 months by the general municipal bond market. In turn,
tax-exempt bonds largely tracked the movements of taxable bonds, such as U.S.
Treasury securities. However, during the 12-month period, taxable and tax-exempt
bond markets experienced a relatively high level of volatility. Bond yields rose
and fell with investors' changing outlooks for economic growth, inflation and
federal monetary policy. When the economy appeared to be growing quickly,
investors became concerned about a resurgence of inflation and a more
restrictive monetary policy. During April, long-term interest rates peaked, then
declined by the end of July to the lowest rates during the period. When the
economy appeared to be slowing, investors seemed confident that inflation would
not be a problem.
HOW DID YOU MANAGE THE FUND IN THIS ENVIRONMENT?
We continued to follow the time-tested investment strategies we have used for
years. Regardless of market conditions, we prefer to keep our shareholders'
assets fully invested in a diversified portfolio of good-quality securities that
provide competitive levels of income and attractive relative values.
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
6 Oppenheimer New York Municipal Fund
<PAGE> 7
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Jerry Webman
Robert Patterson
(Fund Manager)
Within that fully invested position, we attempt to boost returns and reduce
risks.
One of the ways we do this is by actively managing the portfolio's
average duration--a measure of the portfolio's sensitivity to changes in
interest rates. By changing the portfolio's average duration relative to the
Fund's investment benchmark, we have been able to benefit when interest rates
are falling and protect ourselves when rates rise. For example, we've had a very
positive view on inflation recently, and that's caused us to keep the
portfolio's average duration relatively long in order to benefit from declining
interest rates. When interest rates were rising, we tried to keep our average
duration relatively short, and that helped us capture higher yields as they
became available.
WHAT MARKET SECTORS DID YOU FIND ATTRACTIVE, AND WHICH DID YOU AVOID?
We've concentrated on issuers whose prospects have improved with the economic
climate in New York. These include issuers of state appropriation bonds--bonds
connected with the annual state budget--such as bonds issued by the city and
state universities. We have increased our position in New York City bonds
because of the city's strengthening fiscal condition. On the other hand, we have
been cautious about bonds in the hospital sector. We see few opportunities for
credit improvement there because most hospital bonds in New York are insured.
We've also tended to avoid the smaller municipalities in New York.
7 Oppenheimer New York Municipal Fund
<PAGE> 8
"BY CHANGING THE FUND'S AVERAGE DURATION, WE BENEFITED WHEN INTEREST RATES WERE
FALLING AND PROTECTED OURSELVES WHEN RATES WERE RISING."
- --------------------------------------------------------------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGERS
These smaller jurisdictions may be put under pressure as the state and federal
governments shift expenses for mandatory programs to localities, making it more
difficult for smaller municipalities to meet their obligations.
In addition, we have found attractive opportunities outside New York
State. For example, we've invested approximately 15% of the portfolio in Puerto
Rico bonds, which gives the Fund the benefits of broader diversification.
Municipal bonds from U.S. territories such as Puerto Rico are exempt from New
York state and local taxes.
WHAT IS YOUR OUTLOOK FOR THE NEW YORK MUNICIPAL BOND MARKET?
We are cautiously optimistic. Our optimism is rooted in the U.S. economy, which
is in its eighth year of expansion. This economy is unusual because it has been
characterized by moderate growth without an acceleration of inflation. As long
as inflationary pressures remain benign, our outlook for interest rates and the
bond market should be positive. On the other hand, we are tempering our optimism
with caution because no market or economy moves in a straight line. In our view,
the risk for the foreseeable future is that the economy will grow faster than is
currently expected, causing inflation fears to surface among bond investors.
While we do not expect these fears to persist, they may cause volatility over
the short term. Therefore, we intend to remain vigilant when it comes to
protecting our shareholders from the brunt of market declines, while enabling
them to participate in the bulk of the market's gains.
8 Oppenheimer New York Municipal Fund
<PAGE> 9
STATEMENT OF INVESTMENTS September 30, 1997
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
================================================================================================================
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--98.7%
- ----------------------------------------------------------------------------------------------------------------
NEW YORK--84.0%
Battery Park City, NY RB, Series A,
AMBAC Insured, 5.50%, 11/1/16 Aaa/AAA $ 5,000,000 $ 5,078,600
- ----------------------------------------------------------------------------------------------------------------
Buffalo, NY GOB, Series E, AMBAC
Insured, 6.65%, 12/1/13 Aaa/AAA/AAA 500,000 566,215
- ----------------------------------------------------------------------------------------------------------------
Grand Central District Management Assn., Inc.
NY Business District Capital Improvement RRB:
5.125%, 1/1/14 A1/A 1,000,000 973,570
5.25%, 1/1/22 A1/A 2,500,000 2,426,400
- ----------------------------------------------------------------------------------------------------------------
NY MTAU RB, Transportation Facilities Service
Contracts, Series 3, 7.375%, 7/1/08 Baa1/BBB+ 250,000 292,525
- ----------------------------------------------------------------------------------------------------------------
NY MTAU RRB, Commuter Facilities Project,
Series B, MBIA Insured, 6.25%, 7/1/17 Aaa/AAA 350,000 386,102
- ----------------------------------------------------------------------------------------------------------------
NY TBTAU GP RB, Series X, 6%, 1/1/14 Aa /A+ 14,510,000 15,097,800
- ----------------------------------------------------------------------------------------------------------------
NY TBTAU GP RRB:
Series A, 5%, 1/1/12 Aa/A+ 15,755,000 15,532,854
Series A, 5%, 1/1/15 Aa/A+ 7,500,000 7,296,600
Series B, 5%, 1/1/20 Aa/A+ 500,000 486,865
Series Y, 5.50%, 1/1/17 Aa/A+ 15,000,000 15,588,450
- ----------------------------------------------------------------------------------------------------------------
NY TBTAU SPO RRB, Series A,
MBIA Insured, 6.625%, 1/1/17 Aaa/AAA 500,000 542,170
- ----------------------------------------------------------------------------------------------------------------
NY United Nations Development Corp. RRB:
Sr. Lien, Series B, 5.60%, 7/1/26 A2/NR/A 1,500,000 1,493,475
Sub. Lien, Series C, 5.60%, 7/1/26 A3/NR/A- 3,000,000 2,982,720
- ----------------------------------------------------------------------------------------------------------------
NYC GOB:
Inverse Floater, 6.98%, 8/1/08(1) Baa1/BBB+ 8,250,000 8,765,625
Inverse Floater, 8.11%, 8/1/13(1) Baa1/BBB+ 5,000,000 5,418,750
Inverse Floater, 8.11%, 8/1/14(1) Baa1/BBB+ 8,150,000 8,832,562
Prerefunded, Series D, 8%, 8/1/03 Aaa/BBB+/A- 545,000 625,954
Prerefunded, Series F, 8.25%, 11/15/17 Aaa/BBB+ 7,820,000 9,125,158
Series B, 8.25%, 6/1/07 Baa1/BBB+ 1,750,000 2,177,122
Series B, FSA Insured, Inverse Floater,
6.97%, 10/1/07(1) Aaa/AAA 7,500,000 7,935,150
Series H, 6.125%, 8/1/25 Baa1/BBB+/A- 6,000,000 6,258,840
Series M, AMBAC Insured, 7.50%, 6/1/07 Aaa/AAA 7,680,000 9,308,237
Unrefunded Balance, Series A, 7.75%, 3/15/03 Baa1/BBB+/A- 150,000 162,963
Unrefunded Balance, Series A, 7.75%, 8/15/16 Baa1/BBB+ 157,500 176,537
Unrefunded Balance, Series F, 8.25%, 11/15/17 Baa1/BBB+ 680,000 779,035
Unrefunded Balance, Subseries C-1, 7.50%, 8/1/20 Baa1/BBB+/A- 125,000 141,354
- ----------------------------------------------------------------------------------------------------------------
NYC GORB:
Series B, MBIA Insured, 6.20%, 8/15/06 Aaa/AAA 3,500,000 3,880,905
Series D, MBIA Insured, 5.75%, 8/1/05 Aaa/AAA 450,000 481,608
Unrefunded Balance, Series F, 7.625%, 2/1/14 Baa1/BBB+/A- 25,000 27,913
- ----------------------------------------------------------------------------------------------------------------
NYC HDC MH RB:
Glenn Gardens Project, 6.50%, 1/15/18 NR/NR 2,896,196 2,981,837
</TABLE>
9 Oppenheimer New York Municipal Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED)
NYC HDC MH RB:(continued)
Keith Plaza Project, 6.50%, 2/15/18 NR/NR $ 1,913,624 $ 1,970,383
Series A, 5.625%, 5/1/12 Aa2/AA 4,500,000 4,609,755
- -------------------------------------------------------------------------------------------------------------------
NYC Health & Hospital Corp. RRB,
AMBAC Insured, Inverse Floater,
7.24%, 2/15/23(1) Aaa/AAA/AAA 8,300,000 8,351,875
- -------------------------------------------------------------------------------------------------------------------
NYC IDA SPF RB:
Northwest Airlines, Inc., 6%, 6/1/27 Ba2/BB 6,700,000 6,860,398
United Air Lines, Inc. Project, 5.65%, 10/1/32 Baa3/BB+ 5,585,000 5,580,755
- -------------------------------------------------------------------------------------------------------------------
NYC IDAU Civil Facility RB:
Community Resources Development,
7.50%, 8/1/26 NR/NR 3,500,000 3,660,125
USTA National Tennis Center Project,
FSA Insured, 6.375%, 11/15/14 Aaa/AAA 1,500,000 1,649,055
YMCA Greater NY Project, 5.80%, 8/1/16 Baa3/NR/BBB 2,470,000 2,514,089
YMCA Greater NY Project,
Prerefunded, 8%, 8/1/16 Aaa/NR/BBB 3,950,000 4,550,558
- -------------------------------------------------------------------------------------------------------------------
NYC IDAU RB, VISY Paper, Inc. Project:
7.80%, 1/1/16 NR/NR 6,800,000 7,660,608
7.95%, 1/1/28 NR/NR 6,250,000 7,079,375
- -------------------------------------------------------------------------------------------------------------------
NYC IDAU SPF RB, Terminal One
Group Assn. Project:
6%, 1/1/15 A/A/A- 6,000,000 6,248,760
6.125%, 1/1/24 A/A/A- 3,000,000 3,132,840
- -------------------------------------------------------------------------------------------------------------------
NYC MWFAU WSS RB:
Prerefunded, Series C, 7.75%, 6/15/20 Aaa/A- 17,250,000 19,594,275
Unrefunded Balance, Series B, 6.375%, 6/15/22 A2/A-/A 6,625,000 7,284,254
- -------------------------------------------------------------------------------------------------------------------
NYC MWFAU WSS RRB:
Series A-1994, 7.10%, 6/15/12 A2/A- 275,000 303,460
Unrefunded Balance, 6.75%, 6/15/17 A2/A- 2,480,000 2,671,828
- -------------------------------------------------------------------------------------------------------------------
NYS DA RB:
City University-Third General Resolution,
Series 2, MBIA Insured, 6.875%, 7/1/14 Aaa/AAA/A- 500,000 569,875
Prerefunded, Series A, 7.625%, 7/1/20 Aaa/BBB 12,000,000 13,322,400
CUS, Prerefunded, Series F, 7.875%, 7/1/07 Aaa/BBB+ 7,000,000 7,816,550
Ithaca College, AMBAC Insured, 5.25%, 7/1/26 Aaa/AAA 5,750,000 5,632,527
Judicial Facilities Lease, Escrowed to Maturity,
MBIA Insured, 7.375%, 7/1/16 Aaa/AAA 2,300,000 2,849,033
Mental Health Facilities Project, AMBAC
Insured, 5.25%, 2/15/18 Aaa/AAA/AAA 9,400,000 9,237,850
Pooled Capital Program, Partially Prerefunded,
FGIC Insured, 7.80%, 12/1/05 Aaa/AAA/AAA 6,105,000 6,489,371
Rockefeller University, MBIA Insured,
7.375%, 7/1/14 Aaa/AAA 4,000,000 4,186,880
Rosalind & Joseph Nursing Home,
AMBAC Insured, 5.70%, 2/1/37 Aaa/AAA 2,000,000 2,023,140
</TABLE>
10 Oppenheimer New York Municipal Fund
<PAGE> 11
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED)
NYS DA RRB:
CUS, Second Series A, 5.75%, 7/1/18 Baa1/BBB+ $ 6,750,000 $ 7,067,993
CUS, Series B, 6%, 7/1/14 Baa1/BBB+ 10,875,000 11,724,881
CUS, Series B, FGIC Insured, 9%, 7/1/00 Aaa/AAA/AAA 2,100,000 2,364,474
Episcopal Health Services, Inc., 5.85%, 8/1/13 NR/AAA 500,000 526,905
Fordham University, FGIC Insured, 5.75%, 7/1/15 Aaa/AAA/AAA 9,100,000 9,473,464
St. Joseph's Hospital Health Center,
MBIA Insured, 5.25%, 7/1/18 Aaa/AAA 5,035,000 4,947,139
St. Vincent's Hospital, 7.375%, 8/1/11 Aa2/AAA 150,000 167,951
SUEFS, Prerefunded, Series A, 7.70%, 5/15/12 Aaa/BBB+/A 9,000,000 9,972,900
SUEFS, Series A, 5.25%, 5/15/15 Baa1/BBB+ 23,090,000 22,827,005
SUEFS, Series A, 5.25%, 5/15/21 Baa1/BBB+ 5,010,000 4,896,974
SUEFS, Series B, 7%, 5/15/16 Baa1/BBB+ 9,020,000 9,729,964
- ---------------------------------------------------------------------------------------------------------------
NYS DA SPO Bonds, CUS, Series E,
FSA Insured, 5.75%, 7/1/11 Aaa/AAA 5,955,000 6,481,601
- ---------------------------------------------------------------------------------------------------------------
NYS EFCPC RB, State Water Revolving Fund:
Series A, 6.60%, 9/15/12 Aaa/AAA/AAA 250,000 277,575
Series C, 7.20%, 3/15/11 Aa2/A+/AA 350,000 378,795
Series E, 6.50%, 6/15/14 Aa2/A/AA 500,000 547,460
- ---------------------------------------------------------------------------------------------------------------
NYS ERDAUEF RB:
Consolidated Edison Co., Series A, 7.50%, 1/1/26 Aa3/A+ 280,000 299,334
Consolidated Edison Co., Series A, 7.75%, 1/1/24 A1/A+ 620,000 638,817
Consolidated Edison Co., Series B, 7.375%, 7/1/24 Aa3/A+ 200,000 206,038
L.I. Lighting Co., Series A, 7.15%, 12/1/20 Ba3/BB+ 7,500,000 8,124,150
L.I. Lighting Co., Series C, 6.90%, 8/1/22 Ba3/BB+ 9,200,000 9,925,144
- ---------------------------------------------------------------------------------------------------------------
NYS ERDAUGF RB, Brooklyn Union Gas Co.:
Series B, Inverse Floater, 9.68%, 7/1/26(1) A1/A 6,000,000 7,627,500
Series D, MBIA Insured, Inverse Floater,
7.24%, 7/8/26(1) Aaa/AAA 3,000,000 3,048,750
- ---------------------------------------------------------------------------------------------------------------
NYS ERDAUPC RB, NYS Electric & Gas Project,
Series A, MBIA Insured, 6.15%, 7/1/26 Aaa/AAA 4,000,000 4,212,360
- ---------------------------------------------------------------------------------------------------------------
NYS GOB:
6.875%, 3/1/12 A2/A 500,000 551,485
7%, 2/1/09 A2/A 300,000 331,413
- ---------------------------------------------------------------------------------------------------------------
NYS GORB, 7.50%, 11/15/00 A2/A 500,000 548,815
- ---------------------------------------------------------------------------------------------------------------
NYS HFA MH RB:
Secured Mtg. Program-A, 7.05%, 8/15/24 Aa2/NR 350,000 374,539
Secured Mtg. Program-C, 6.95%, 8/15/24 Aa2/NR 230,000 242,935
- ---------------------------------------------------------------------------------------------------------------
NYS HFA RB:
Prerefunded, 8%, 11/1/08 Aaa/BBB+ 2,690,000 3,041,475
Unrefunded Balance, 8%, 11/1/08 Baa/BBB+ 550,000 613,602
- ---------------------------------------------------------------------------------------------------------------
NYS HFA RRB:
Housing Mtg., Series A, 6.10%, 11/1/15 Aaa/AAA 12,375,000 13,035,206
State University Construction, Escrowed to
Maturity, Series A, 7.90%, 11/1/06 Aaa/AAA 1,750,000 2,098,985
Unrefunded Balance, 7.90%, 11/1/99 Baa2/BBB+ 2,310,000 2,426,563
</TABLE>
11 Oppenheimer New York Municipal Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED)
NYS HFASC Obligation RB, Series A, 6%, 3/15/26 Baa1/BBB+ $10,000,000 $10,432,200
- ---------------------------------------------------------------------------------------------------------------
NYS HFASC RB:
Prerefunded, Series A, 7.375%, 9/15/21 Aaa/AAA 9,050,000 10,331,480
Series D, 5.375%, 3/15/23 Baa1/BBB 9,000,000 8,691,300
- ---------------------------------------------------------------------------------------------------------------
NYS LGAC RB, Prerefunded:
Series B, 7.50%, 4/1/20 Aaa/AAA/AAA 2,310,000 2,601,499
Series C, 7%, 4/1/21 Aaa/AAA/AAA 9,455,000 10,495,428
- ---------------------------------------------------------------------------------------------------------------
NYS LGAC RRB:
Series B, 5.50%, 4/1/21 A3/A+/A+ 8,000,000 7,958,240
Series C, 5%, 4/1/21 A3/A+/A+ 15,000,000 14,073,750
Series E, 5%, 4/1/21 A3/A+/A+ 500,000 475,465
- ---------------------------------------------------------------------------------------------------------------
NYS MAG RB:
Homeowner Mtg., Series 1, 7.95%, 10/1/21 Aaa/NR 2,270,000 2,420,092
Homeowner Mtg., Series UU, 7.75%, 10/1/23 Aa2/NR 1,990,000 2,113,400
Homeowner Mtg., Series VV, 7.375%, 10/1/11 Aa2/NR 345,000 368,757
Inverse Floater, 6.26%, 10/1/24(1) MIG1/NR 9,000,000 8,415,000
Ninth Series B, 8.30%, 10/1/17 Aaa/NR 1,720,000 1,756,326
Series 40-B, 6.40%, 10/1/12 Aaa/NR 500,000 532,195
Series C, 8.40%, 10/1/17 Aaa/NR 1,700,000 1,731,994
- ---------------------------------------------------------------------------------------------------------------
NYS MCFFA RB:
Hospital & Nursing Home Project,
Series D, 6.45%, 2/15/09 Aa2/AAA 345,000 378,389
Long-Term Health Care, Series C,
FSA Insured, 6.40%, 11/1/14 Aaa/AAA 2,800,000 3,039,456
MHESF, Prerefunded, Series B, 7.875%, 8/15/20 Aaa/AAA 5,095,000 5,707,113
MHESF, Series A, FGIC Insured, 6.375%, 8/15/17 Aaa/AAA/AAA 5,000,000 5,409,000
MHESF, Unrefunded Balance, Series B,
7.875%, 8/15/20 Baa1/BBB+ 8,085,000 8,989,712
NY Hospital, Series A, AMBAC Insured,
6.75%, 8/15/14 Aaa/AAA/AAA 500,000 562,310
Prerefunded, 7.70%, 2/15/18 Aaa/AAA 355,000 367,283
St. Francis Hospital, Series 1998A,
FGIC Insured, 7.625%, 11/1/21 Aaa/AAA/AAA 2,690,000 2,843,438
St. Luke's Hospital Center Mtg., Prerefunded,
Series B, 7.45%, 2/15/29 Aaa/AAA 7,500,000 8,212,275
- ---------------------------------------------------------------------------------------------------------------
NYS MCFFA RRB:
MHESF, Unrefunded Balance,
Series A, 8.875%, 8/15/07 Baa1/BBB+ 2,785,000 2,852,536
North Shore University Hospital,
MBIA Insured, 7.20%, 11/1/20 Aaa/AAA 250,000 274,680
- ---------------------------------------------------------------------------------------------------------------
NYS PAU GP RB, Series B, 6.625%, 1/1/12 Aa2/AA- 315,000 344,037
- ---------------------------------------------------------------------------------------------------------------
NYS PAU GP RRB, Series Y, 6.75%, 1/1/18 Aa2/AA- 2,000,000 2,173,640
- ---------------------------------------------------------------------------------------------------------------
NYS Thruway Authority General RB,
Series A, 5.75%, 1/1/19 Aa3/AA- 10,000,000 10,177,400
</TABLE>
12 Oppenheimer New York Municipal Fund
<PAGE> 13
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK (CONTINUED)
NYS UDC RB:
Correctional Capital Facilities, Series 4,
5.375%, 1/1/23 Baa1/BBB+/A $ 8,750,000 $ 8,450,400
Series A, MBIA Insured, 5.50%, 4/1/16 Aaa/AAA/AAA 7,500,000 7,619,625
- ---------------------------------------------------------------------------------------------------------------
Onondaga Cnty., NY RR Agency RB,
RR Facilities Project, 7%, 5/1/15 Baa/NR/A- 15,600,000 16,758,456
- ---------------------------------------------------------------------------------------------------------------
PAUNYNJ Consolidated RB, 69th Series,
7.125%, 6/1/25 A1/AA-/AA- 4,155,000 4,489,187
- ---------------------------------------------------------------------------------------------------------------
PAUNYNJ Consolidated RRB, 78th Series,
6.50%, 4/15/11 A1/AA-/AA- 250,000 271,403
- ---------------------------------------------------------------------------------------------------------------
PAUNYNJ SPO RB, JFK International Air
Terminal Project, Series 6, 5.75%, 12/1/22 Aaa/AAA 11,150,000 11,463,761
- ---------------------------------------------------------------------------------------------------------------
PAUNYNJ SPO RRB, KIAC-4 Project,
5th Installment, 6.75%, 10/1/19 NR/NR 12,600,000 13,675,788
------------
626,863,122
- ---------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--14.7%
PR CMWLTH Aqueduct & Sewer Authority RB,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA 500,000 696,930
- ---------------------------------------------------------------------------------------------------------------
PR CMWLTH GOB, 5.375%, 7/1/25 Baa1/A 7,000,000 6,924,680
- ---------------------------------------------------------------------------------------------------------------
PR CMWLTH GORB:
FSA Insured, Inverse Floater, 7.69%, 7/1/20(1) Aaa/AAA 11,500,000 12,333,750
MBIA Insured, 5.25%, 7/1/18 Aaa/AAA 8,950,000 8,826,848
Prerefunded, 7.70%, 7/1/20 NR/AAA 4,000,000 4,458,560
- ---------------------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB:
Prerefunded, Series S, 6.50%, 7/1/22 NR/AAA 10,000,000 11,138,300
Prerefunded, Series T, 6.625%, 7/1/18 Aaa/AAA 1,000,000 1,119,170
Series W, Inverse Floater, 6.80%, 7/1/10(1) Baa1/A 9,000,000 9,461,250
- ---------------------------------------------------------------------------------------------------------------
PR CMWLTH Infrastructure FAU SPTX RB,
Series A, 7.75%, 7/1/08 Baa1/BBB+ 6,000,000 6,295,440
- ---------------------------------------------------------------------------------------------------------------
PR Electric PAU RB:
Series AA, MBIA Insured, 5.25%, 7/1/16 Aaa/AAA 5,000,000 5,008,250
Series AA, MBIA Insured, 5.25%, 7/1/17 Aaa/AAA 5,000,000 4,999,550
- ---------------------------------------------------------------------------------------------------------------
PR EPAU CAP RRB, Series N, MBIA Insured,
Zero Coupon, 5.69%, 7/1/17(2) Aaa/AAA 24,000,000 8,824,320
- ---------------------------------------------------------------------------------------------------------------
PR Housing Bank & Finance Agency SFM RB,
Homeownership-Fourth Portfolio, Escrowed
to Maturity, 8.50%, 12/1/18 Aaa/NR 1,580,000 1,853,261
- ---------------------------------------------------------------------------------------------------------------
PR Industrial, Medical & Environmental
PC Facilities FAU RB:
American Airlines, Inc. Project,
Series A, 6.45%, 12/1/25 Baa1/BBB- 850,000 931,694
Warner Lambert Co. Project, 7.60%, 5/1/14 A1/NR 3,000,000 3,234,570
- ---------------------------------------------------------------------------------------------------------------
PR POAU RB, American Airlines Special
Facilities Project, Series A, 6.25%, 6/1/26 Baa3/BBB+ 8,000,000 8,562,080
</TABLE>
13 Oppenheimer New York Municipal Fund
<PAGE> 14
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. POSSESSIONS (CONTINUED)
PR Public Buildings Authority Guaranteed
Public Education & HF RB, Prerefunded,
Series L, 6.875%, 7/1/21 Aaa/AAA $ 4,000,000 $ 4,519,440
- --------------------------------------------------------------------------------------------------------------
PR Telephone Authority RB, MBIA Insured,
Inverse Floater, 6.92%, 1/16/15(1) Aaa/AAA 10,000,000 10,187,500
-------------
109,375,593
- --------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $698,803,390) 98.7% 736,238,715
- --------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.3 9,758,265
----------- -------------
NET ASSETS 100.0% $ 745,996,980
=========== =============
</TABLE>
To simplify the listing of securities, abbreviations are used per the table
below:
<TABLE>
<S> <C>
CAP -- Capital Appreciation L.I. -- Long Island
CMWLTH -- Commonwealth MAG -- Mtg. Agency
CUS -- City University System MCFFA -- Medical Care Facilities
DA -- Dormitory Authority Finance Agency
EFCPC -- Environmental Facilities Corp. Pollution Control MH -- Multifamily Housing
EPAU -- Electric Power Authority MHESF -- Mental Health Services
ERDAUEF -- Energy Research & Development Authority Electric Facilities Facilities
ERDAUGF -- Energy Research & Development Authority Gas Facilities MTAU -- Metropolitan Transportation
ERDAUPC -- Energy Research & Development Authority Pollution Control Authority
FAU -- Finance Authority MWFAU -- Municipal Water Finance
GP -- General Purpose Authority
GOB -- General Obligation Bonds NYC -- New York City
GORB -- General Obligation Refunding Bonds NYS -- New York State
HDC -- Housing Development Corp. PAUNYNJ -- Port Authority of New York
HF -- Health Facilities & New Jersey
HFA -- Housing Finance Agency PAU -- Power Authority
HFASC -- Housing Finance Agency Service Contract PC -- Pollution Control
HTAU -- Highway & Transportation Authority POAU -- Port Authority
IDA -- Industrial Development Agency RB -- Revenue Bonds
IDAU -- Industrial Development Authority RR -- Resource Recovery
LGAC -- Local Government Assistance Corp. RRB -- Revenue Refunding Bonds
SFM -- Single Family Mortgage
SPF -- Special Facilities
SPO -- Special Obligations
SPTX -- Special Tax
SUEFS -- State University Educational
Facilities System
TBTAU -- Triborough Bridge & Tunnel
Authority
UDC -- Urban Development Corp.
WSS -- Water & Sewer System
</TABLE>
1. Represents the current interest rate for a variable rate bond known as an
"inverse floater" which pays 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 $90,377,712 or 12.12% of the
Fund's net assets at September 30, 1997.
2. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
14 Oppenheimer New York Municipal Fund
<PAGE> 15
- --------------------------------------------------------------------------------
As of September 30, 1997, securities subject to the alternative minimum tax
amounted to $122,052,761 or 16.36% 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 $124,655,844 16.8%
General Obligation 98,639,480 13.4
Highways 86,440,860 11.7
Hospital/Healthcare 63,186,511 8.6
Sales Tax 35,604,382 4.8
Multi-Family Housing 33,646,855 4.6
Corporate Backed 31,316,527 4.3
Water Utilities 30,550,747 4.1
Marine/Aviation Facilities 29,900,138 4.1
Pollution Control 29,869,733 4.1
Lease Rental 27,336,945 3.7
Electric Utilities 25,562,157 3.5
Adult Living Facilities 22,589,141 3.1
Single Family Housing 19,191,025 2.6
Resource Recovery 16,758,456 2.3
Special Assessment 14,774,010 2.0
Manufacturing, Durable Goods 14,739,983 2.0
Non Profit Organization 12,373,828 1.7
Telephone Utilities 10,187,500 1.4
Manufacturing, Non-Durable Goods 7,710,765 1.0
Sewer Utilities 1,203,830 0.2
------------ -----
$736,238,717 100.0%
============ =====
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer New York Municipal Fund
<PAGE> 16
STATEMENT OF ASSETS AND LIABILITIES September 30, 1997
<TABLE>
<CAPTION>
===============================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $698,803,390)--see accompanying statement $736,238,715
- ---------------------------------------------------------------------------------------------------------------
Cash 495,755
- ---------------------------------------------------------------------------------------------------------------
Receivables:
Interest 12,291,735
Shares of beneficial interest sold 393,580
- ---------------------------------------------------------------------------------------------------------------
Other 11,534
------------
Total assets 749,431,319
===============================================================================================================
LIABILITIES
Payables and other liabilities:
Dividends 2,001,304
Shares of beneficial interest redeemed 498,760
Distribution and service plan fees 452,203
Trustees' fees--Note 1 213,997
Shareholder reports 130,266
Transfer and shareholder servicing agent fees 67,646
Other 70,163
------------
Total liabilities 3,434,339
===============================================================================================================
NET ASSETS $745,996,980
============
===============================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $715,174,579
- ---------------------------------------------------------------------------------------------------------------
Undistributed net investment income 1,395,429
- ---------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (8,008,353)
- ---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 37,435,325
------------
Net assets $745,996,980
============
</TABLE>
16 Oppenheimer New York Municipal Fund
<PAGE> 17
<TABLE>
<S> <C>
===============================================================================================================
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$634,789,044 and 49,620,601 shares of beneficial interest outstanding) $12.79
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $13.43
- ---------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $106,458,543
and 8,320,680 shares of beneficial interest outstanding) $12.79
- ---------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $4,749,393
and 371,247 shares of beneficial interest outstanding) $12.79
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer New York Municipal Fund
<PAGE> 18
STATEMENT OF OPERATIONS For the Year Ended September 30, 1997
<TABLE>
<CAPTION>
===============================================================================================================
<S> <C>
INVESTMENT INCOME
Interest $48,247,943
===============================================================================================================
EXPENSES
Management fees--Note 4 3,912,050
- ---------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,528,712
Class B 1,040,975
Class C 37,884
- ---------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 475,969
- ---------------------------------------------------------------------------------------------------------------
Shareholder reports 223,113
- ---------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 66,227
- ---------------------------------------------------------------------------------------------------------------
Legal and auditing fees 58,537
- ---------------------------------------------------------------------------------------------------------------
Insurance expenses 18,351
- ---------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 564
Class C 660
- ---------------------------------------------------------------------------------------------------------------
Other 14,143
-----------
Total expenses 7,377,185
===============================================================================================================
NET INVESTMENT INCOME 40,870,758
===============================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 5,082,437
Closing of futures contracts (8,192,625)
-----------
Net realized loss (3,110,188)
- ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 25,374,028
-----------
Net realized and unrealized gain 22,263,840
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $63,134,598
===========
</TABLE>
See accompanying Notes to Financial Statements.
18 Oppenheimer New York Municipal Fund
<PAGE> 19
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1997 1996
===============================================================================================================
OPERATIONS
<S> <C> <C>
Net investment income $ 40,870,758 $ 42,380,515
- ---------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (3,110,188) 5,945,810
- ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 25,374,028 425,530
------------ ------------
Net increase in net assets resulting
from operations 63,134,598 48,751,855
===============================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (35,297,579) (37,568,731)
Class B (4,855,021) (4,655,633)
Class C (175,214) (34,664)
===============================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting
from beneficial interest transactions--Note 2:
Class A (52,009,162) (11,537,144)
Class B 2,021,008 9,460,309
Class C 2,612,419 1,966,687
===============================================================================================================
NET ASSETS
Total increase (decrease) (24,568,951) 6,382,679
- ---------------------------------------------------------------------------------------------------------------
Beginning of period 770,565,931 764,183,252
------------ ------------
End of period (including undistributed net investment
income of $1,395,429 and $620,943, respectively) $745,996,980 $770,565,931
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer New York Municipal Fund
<PAGE> 20
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
---------------------------------
YEAR ENDED SEPTEMBER 30,
1997 1996 1995 1994 1993
================================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $12.41 $12.29 $11.92 $13.50 $12.59
- ----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .69 .68 .69 .74 .73
Net realized and unrealized gain (loss) .37 .12 .41 (1.46) 1.01
------ ------ ------ ------ ------
Total income (loss) from investment
operations 1.06 .80 1.10 (.72) 1.74
- ----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.68) (.68) (.70) (.72) (.75)
Distributions from net realized gain -- -- (.03) (.03) (.08)
Distributions in excess of net realized gain -- -- -- (.11) --
------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.68) (.68) (.73) (.86) (.83)
- ----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.79 $12.41 $12.29 $11.92 $13.50
====== ====== ====== ====== ======
================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 8.78% 6.65% 9.58% (5.55)% 14.33%
================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $634,789 $667,258 $673,050 $687,233 $756,934
- ----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $652,048 $684,981 $659,465 $738,747 $652,327
- ----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.49% 5.50% 5.76% 5.68% 5.66%
Expenses 0.86% 0.91% 0.90% 0.86% 0.91%
- ----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 20.5% 21.2% 15.2% 9.4% 39.1%
</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.
20 Oppenheimer New York Municipal Fund
<PAGE> 21
<TABLE>
<CAPTION>
CLASS B CLASS C
- ------------------------------------------------------------------- ------------------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
1997 1996 1995 1994 1993(2) 1997 1996 1995(1)
===============================================================================================================
<C> <C> <C> <C> <C> <C> <C> <C>
$12.41 $12.30 $11.93 $13.50 $13.07 $12.41 $12.30 $12.22
- -------------------------------------------------------------------------------------------------------------
.59 .60 .60 .64 .36 .57 .60 .05
.38 .10 .42 (1.45) .44 .39 .09 .08
------ ------ ------ ------ ------ ------ ------ ------
.97 .70 1.02 (.81) .80 .96 .69 .13
- -------------------------------------------------------------------------------------------------------------
(.59) (.59) (.62) (.62) (.37) (.58) (.58) (.05)
-- -- (.03) (.03) -- -- -- --
-- -- -- (.11) -- -- -- --
------ ------ ------ ------ ------ ------ ------ ------
(.59) (.59) (.65) (.76) (.37) (.58) (.58) (.05)
- -------------------------------------------------------------------------------------------------------------
$12.79 $12.41 $12.30 $11.93 $13.50 $12.79 $12.41 $12.30
====== ====== ====== ====== ====== ====== ====== ======
=============================================================================================================
7.97% 5.77% 8.75% (6.22)% 6.56% 7.95% 5.64% 1.10%
=============================================================================================================
$106,459 $101,302 $91,108 $73,943 $40,958 $4,749 $2,007 $25
- -------------------------------------------------------------------------------------------------------------
$104,183 $ 98,488 $81,743 $61,008 $20,454 $3,798 $ 752 $18
- -------------------------------------------------------------------------------------------------------------
4.72% 4.73% 4.95% 4.88% 4.45%(4) 4.67% 4.60% 3.67%(4)
1.63% 1.68% 1.67% 1.65% 1.73%(4) 1.63% 1.77% 1.37%(4)
- -------------------------------------------------------------------------------------------------------------
20.5% 21.2% 15.2% 9.4% 39.1% 20.5% 21.2% 15.2%
</TABLE>
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, 1997 were $154,409,995 and $214,081,363, respectively.
See accompanying Notes to Financial Statements.
21 Oppenheimer New York Municipal Fund
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS
===============================================================================
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 and 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 advisor
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 that class and exclusive voting rights with
respect to matters affecting that 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 an
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, 1997, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $7,657,000, expiring in 2003 and 2004.
22 Oppenheimer New York Municipal Fund
<PAGE> 23
================================================================================
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, 1997, a credit of $60,913 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 $212,626 at September 30, 1997. The
aforementioned credit is a component of total trustees' fees which amount to
$(280) for the year ended September 30, 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 on long-term bonds for tax purposes.
The character of the distributions made during the year from net investment
income or net realized gains may differ from its 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 fiscal year in
which the income or realized gain was recorded by the Fund.
The Fund adjusts 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, 1997, amounts have been reclassified to reflect an
increase in undistributed net investment income of $231,542, a decrease in
accumulated net realized loss on investments of $456,846, and a decrease in
paid-in capital of $688,388.
- --------------------------------------------------------------------------------
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 using the effective
yield method, 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.
23 Oppenheimer New York Municipal Fund
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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, 1997 YEAR ENDED SEPTEMBER 30, 1996
-------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 4,470,995 $ 56,051,835 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 1,936,390 24,294,359 2,105,244 26,158,018
Redeemed (10,554,692) (132,355,356) (9,480,179) (117,783,020)
----------- ------------- ---------- -------------
Net decrease (4,147,307) $ (52,009,162) (980,779) $ (11,537,144)
=========== ============= ========== =============
- ---------------------------------------------------------------------------------------------------------------
Class B:
Sold 1,229,476 $ 15,435,863 1,631,788 $ 20,375,193
Dividends and distributions
reinvested 251,124 3,151,927 244,423 3,035,829
Redeemed (1,320,301) (16,566,782) (1,123,717) (13,950,713)
----------- ------------- ---------- -------------
Net increase 160,299 $ 2,021,008 752,494 $ 9,460,309
=========== ============= ========== =============
- ----------------------------------------------------------------------------------------------------------------
Class C:
Sold 296,169 $ 3,700,982 170,206 $ 2,101,116
Dividends and distributions
reinvested 11,358 142,713 2,083 25,651
Redeemed (97,937) (1,231,276) (12,664) (160,080)
----------- ------------- ---------- -------------
Net increase 209,590 $ 2,612,419 159,625 $ 1,966,687
=========== ============= ========== =============
</TABLE>
24 Oppenheimer New York Municipal Fund
<PAGE> 25
================================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At September 30, 1997, net unrealized appreciation on investments of $37,435,325
was composed of gross appreciation of $40,284,088, and gross depreciation of
$2,848,763.
================================================================================
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 year ended September 30, 1997, commissions (sales charges
paid by investors) on sales of Class A shares totaled $835,127, of which
$161,226 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 $558,605 and $35,328, respectively, of which $9,424
was paid to an affiliated broker/ dealer for Class B. During the year ended
September 30, 1997, OFDI received contingent deferred sales charges of $260,864
and $5,113, 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 shareholder 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 maintaining accounts of their customers that hold
Class A shares. During the year ended September 30, 1997, OFDI paid $30,130 to
an affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
25 Oppenheimer New York Municipal Fund
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
The Fund has adopted 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 year ended September 30, 1997, OFDI paid $6,709 to an affiliated
broker/dealer as compensation for Class B personal service and maintenance
expenses and retained $819,839 and $31,279, respectively, as compensation for
Class B and Class C sales commissions and service fee advances, as well as
financing costs. If either Plan is terminated by the Fund, the Board of Trustees
may allow the Fund to continue payments of the asset-based sales charge to OFDI
for distributing shares before the Plan was terminated. At September 30, 1997,
OFDI had incurred unreimbursed expenses of $2,901,792 for Class B and $49,218
for Class C.
================================================================================
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 (initial margin) in an amount 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.
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.
26 Oppenheimer New York Municipal Fund
<PAGE> 27
================================================================================
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 qualified as a tax-free reorganization for federal income tax purposes.
================================================================================
7. BANK BORROWINGS
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other OppenheimerFunds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the year ended
September 30, 1997.
27 Oppenheimer New York Municipal Fund
<PAGE> 28
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 as of September 30, 1997, 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, 1997, 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, 1997, 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, 1997
28 Oppenheimer New York Municipal Fund
<PAGE> 29
FEDERAL INCOME TAX INFORMATION (Unaudited)
================================================================================
In early 1998, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1997. 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, 1997 are eligible for the corporate dividend-received deduction.
The dividends were derived from interest on municipal bonds and are not subject
to federal income tax. To the extent a shareholder is subject to any state or
local tax laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
29 Oppenheimer New York Municipal Fund
<PAGE> 30
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 ADVISOR OppenheimerFunds, Inc.
==============================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
==============================================================================
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
==============================================================================
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
==============================================================================
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
==============================================================================
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of
Oppenheimer New York 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.
30 Oppenheimer New York Municipal Fund
<PAGE> 31
OPPENHEIMERFUNDS FAMILY
<TABLE>
<CAPTION>
<S> <C> <C>
===========================================================================================================
REAL ASSET FUNDS
- -----------------------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
===========================================================================================================
STOCK FUNDS
- -----------------------------------------------------------------------------------------------------------
Developing Markets Fund Quest Small Cap Value Fund Global Fund
Enterprise Fund Capital Appreciation Fund(1) Quest Global Value Fund
International Growth Fund Quest Capital Value Fund Disciplined Value Fund
Discovery Fund Growth Fund Quest Value Fund
===========================================================================================================
STOCK & BOND FUNDS
- -----------------------------------------------------------------------------------------------------------
Main Street Income & Quest Growth &Income Disciplined Allocation Fund
Growth Fund Value Fund Multiple Strategies Fund(2)
Quest Opportunity Value Fund Global Growth &Income Fund Bond Fund for Growth
Total Return Fund Equity Income Fund
===========================================================================================================
BOND FUNDS
- -----------------------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
High Yield Fund Strategic Income Fund Limited-Term Government Fund
Bond Fund
===========================================================================================================
MUNICIPAL FUNDS
- -----------------------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
===========================================================================================================
MONEY MARKET FUNDS(4)
- -----------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
===========================================================================================================
LIFESPAN
- -----------------------------------------------------------------------------------------------------------
Growth Fund Balanced Fund Income Fund
</TABLE>
1. On 12/18/96, the Fund's name was changed from "Target Fund."
2. On 3/16/97, the Fund's name was changed from "Asset Allocation Fund."
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 1997 OppenheimerFunds, Inc. All rights reserved.
31 Oppenheimer New York Municipal Fund
<PAGE> 32
INTERNET
24-hr access to account
information
WWW.OPPENHEIMERFUNDS.COM
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET
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PHONELINK
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1-800-835-3104
INFORMATION AND SERVICES
- --------------------------------------------------------------------------------
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, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
[OPPENHEIMERFUNDS LOGO]
RA0360.001.0997 November 28, 1997
