<PAGE> 1
OPPENHEIMER INTERMEDIATE TAX-EXEMPT BOND FUND
ANNUAL REPORT SEPTEMBER 30, 1994
(OPPENHEIMERFUNDS(R) LOGO)
<PAGE> 2
FUND FACTS
IN THIS REPORT:
ANSWERS TO TIMELY
QUESTIONS YOU SHOULD
ASK YOUR FUND'S
MANAGERS.
* HOW DID THE FEDERAL RESERVE'S MOVES TO RAISE INTEREST RATES AFFECT THE FUND'S
INVESTMENT STRATEGY AND RETURNS FOR THE PAST YEAR?
* WHAT'S THE OUTLOOK FOR THE MUNICIPAL MARKET OVERALL AND THE INTERMEDIATE
SECTOR IN PARTICULAR?
* WHAT KINDS OF BONDS OFFER THE BEST BUYING OPPORTUNITIES TODAY?
FACTS EVERY SHAREHOLDER SHOULD KNOW ABOUT
OPPENHEIMER INTERMEDIATE TAX-EXEMPT BOND FUND
- -------------------------------------------------------------------------------
1 The Fund seeks current income exempt from federal income
taxes.
- -------------------------------------------------------------------------------
2 Standardized yields for Class A and Class C shares for
the 30 days ended September 30, 1994 were 4.58% and
3.68%, respectively.(1)
- -------------------------------------------------------------------------------
3 Total return at net asset value for the 12 months ended
September 30, 1994 for Class A shares was -1.92%. Total
return at net asset value for Class C shares since
inception on December 1, 1993 was -2.54%.(2)
- -------------------------------------------------------------------------------
4 For many investors, earning tax-free income is important
under current federal tax rates. The table below shows
the taxable equivalent yield needed to match the Fund's
standardized yield for the top tax brackets.*
<TABLE>
<CAPTION>
HERE IS THE TAXABLE EQUIVALENT OF THE
FUND'S YIELDS FOR AN INVESTOR IN THE:
------------------------------------------------
FUND YIELD 31% FEDERAL 36% FEDERAL 39.6% FEDERAL
ON 9/30/94 TAX BRACKET TAX BRACKET TAX BRACKET
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A 4.58%(1) 6.64% 7.16% 7.58%
CLASS C 3.68%(1) 5.33% 5.75% 6.09%
</TABLE>
*This table assumes that an investor's highest tax
bracket applies to the change in taxable income
resulting from a switch between taxable and non-taxable
investments. A portion of the Fund's distributions may
be subject to federal and/or state income taxes. For
investors subject to alternative minimum tax, a portion
of the Fund's distributions may increase that tax.
- -------------------------------------------------------------------------------
5 Average annual total returns for Class A shares for the
1- and 5-year periods ended September 30, 1994 and since
inception of the Fund on November 11, 1986 were -5.35%,
6.86% and 6.82%, respectively. Total return for Class C
shares since inception of the Class on December 1, 1993
was -3.52%.(3)
- -------------------------------------------------------------------------------
6 "The combination of attractive, tax-free income and the
relatively lower share price volatility
intermediate-term bonds provide compared to long-term
issues should continue to make the Fund attractive to
conservative, tax-conscious investors."
Portfolio Managers Bob Patterson and
Caryn Halbrecht, September 30, 1994
(1) Standardized yield is net investment income calculated on a
yield-to-maturity basis for the 30-day period ended 9/30/94, divided by the
maximum offering price at the end of the period, compounded semiannually and
then annualized. Falling net asset values will tend to artificially raise
yields.
(2) Based on the change in net asset value per share for the periods shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
(3) Average annual total returns are based on a hypothetical investment held
until 9/30/94, after deducting the current maximum initial sales charge of
3.50% for Class A shares on 9/30/93, 9/30/89, and 11/11/86, respectively. The
Fund's maximum sales charge rate for Class A shares was lower during a portion
of some of the periods shown, and actual investment results will be different
as a result of the change. Total return for Class C shares was based on a
hypothetical investment held for that period, after deducting the 1% contingent
deferred sales charge.
The Fund's portfolio is subject to change.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on an investment in the Fund will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than the original cost.
2 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 3
REPORT TO SHAREHOLDERS
Oppenheimer Intermediate Tax-Exempt Bond Fund met its
objectives for the year ended September 30, 1994, providing a level of tax-free
income that would be difficult to match on taxable investments of comparable
quality and maturity.
The Fund's standardized yields for Class A and Class C
shares were 4.58% and 3.68%, respectively, for the 30 days ended September 30,
1994.(4)
The Fund was, of course, affected by aggressive increases
in short-term interest rates by the Federal Reserve Board, which caused the
prices of all bonds to decline. The shorter maturity of the bonds in the Fund's
portfolio helped moderate price declines.
At this writing, the market's fundamentals are strong and
getting stronger. The Fed's actions have helped keep possible inflation in
check, while the market's supply and demand characteristics are positive. The
supply of municipal bonds is running more than 40% below last year's pace,
while demand for tax-free securities is rising. This combination of low
inflation, shrinking bond supply, and mounting demand should provide support
for bond prices.
Just as important, the finances of issuing states continue
to improve, along with the general economy.
Throughout the year, your managers maintained their focus
on high-quality, essential service issues, diversified by market sector and by
state, and backed by stable, predictable revenue streams, as well as on bonds
offering significant call protection.
Looking ahead, your managers believe that the intermediate
municipal bond market offers substantial value to investors. The fundamentals
for long-term performance are in place, and your managers will look for
opportunities to buy value at attractive prices--the best way to produce
long-term investment gains.
We appreciate your confidence in Oppenheimer Intermediate
Tax-Exempt Bond Fund, and we look forward to continuing to help you meet your
investment goals in the future.
/s/ JAMES C. SWAIN /s/ JON S. FOSSEL
- ----------------- -----------------
James C. Swain Jon S. Fossel
Chairman President
Oppenheimer Tax-Exempt Bond Fund for Oppenheimer Tax-Exempt Bond
Oppenheimer Intermediate Tax-Exempt Bond Fund Fund for
Oppenheimer Intermediate
Tax-Exempt Bond Fund
October 21, 1994
(4) See footnote 1, page 2.
3 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 4
STATEMENT OF INVESTMENTS September 30, 1994
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
================================================================================================================================
MUNICIPAL BONDS AND NOTES--97.2%
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA--3.1% Corona, California Certificates of Participation,
Prerefunded, Series B, 10%, 11/1/20 Aaa/AAA $1,000,000 $1,313,422
-------------------------------------------------------------------------------------------------------
Palomar Pomerado, California Health System
Revenue Bonds, Capital Appreciation Project,
MBIA Insured, 0%, 11/1/04 Aaa/AAA 1,000,000 556,742
-------------------------------------------------------------------------------------------------------
San Bernardino County, California Certificates of
Participation, Medical Center Financing Project,
6%, 8/1/09 Baa1/A- 1,000,000 941,874
----------
2,812,038
- --------------------------------------------------------------------------------------------------------------------------------
COLORADO--0.6% Meridian Metropolitan District, Colorado General
Obligation Refunding Bonds, 7.50%, 12/1/11 A3/NR 500,000 545,381
- --------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT--2.4% Connecticut State Special Tax Revenue Bonds,
Transportation Infrastructure Project,
Prerefunded, Series A, 7.125%, 6/1/07 NR/AAA 2,000,000 2,209,062
- --------------------------------------------------------------------------------------------------------------------------------
FLORIDA--1.8% Florida State Board of Education General
Obligation Bonds, Public Education Capital
Outlay, Prerefunded, Series B, 7.625%, 6/1/09 Aaa/AAA 1,500,000 1,628,721
- --------------------------------------------------------------------------------------------------------------------------------
GEORGIA--0.3% Georgia State Residential Finance Authority
Home Ownership Mtg. Revenue Bonds,
Series A-1, FHA Insured, 7.50%, 6/1/17 Aa/AA+ 245,000 253,152
- --------------------------------------------------------------------------------------------------------------------------------
HAWAII--1.1% Hawaii State General Obligation Bonds,
Series BT, 6%, 2/1/02 Aa/AA 1,000,000 1,040,158
- --------------------------------------------------------------------------------------------------------------------------------
ILLINOIS--7.7% Chicago, Illinois General Obligation Refunding
Bonds, Prerefunded, Series B, 9.25%, 1/1/13 A/A- 500,000 564,616
-------------------------------------------------------------------------------------------------------
Du Page County, Illinois First Preservation
District General Obligation Bonds, Prerefunded,
7.70%, 11/1/00 NR/AAA 1,000,000 1,097,666
-------------------------------------------------------------------------------------------------------
Du Page, Illinois Water Commission Revenue
Bonds, Prerefunded, 6.875%, 5/1/14 NR/AAA 1,000,000 1,065,904
-------------------------------------------------------------------------------------------------------
Illinois Development Finance Authority Pollution
Control Revenue Refunding Bonds, Central Illinois
Public Service Co., Series A, 7.60%, 3/1/14 Aa2/AA 250,000 271,886
-------------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority Revenue
Refunding Bonds, Lutheran Health Systems,
Prerefunded, Series C, MBIA Insured, 7.50%, 4/1/18 A/A+ 400,000 443,883
-------------------------------------------------------------------------------------------------------
Southwestern Illinois Development Authority
Hospital Revenue Bonds, Saint Elizabeth
Medical Center, 8%, 6/1/10 NR/A- 500,000 548,976
-------------------------------------------------------------------------------------------------------
Waukegan, Illinois General Obligation Bonds,
MBIA Insured, 7.50%, 12/30/03 Aaa/AAA 1,000,000 1,119,830
-------------------------------------------------------------------------------------------------------
Wheeling, Illinois Multi-Family Housing
Revenue Bonds, Arlington Club Project,
Series A, FHA Insured, 6.20%, 2/1/14 NR/AAA 2,000,000 1,927,886
------------
7,040,647
</TABLE>
4 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 5
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDIANA--0.2% Indiana University Revenue Bonds, Hospital
Facilities Project, 7%, 1/1/09 A1/A+ $ 215,000 $ 221,199
- --------------------------------------------------------------------------------------------------------------------------------
IOWA--0.2% Des Moines, Iowa Hospital Revenue Bonds,
Iowa Methodist Medical Center, 7.875%, 8/15/15 A1/A+ 150,000 164,231
- --------------------------------------------------------------------------------------------------------------------------------
LOUISIANA--1.2% Louisiana State Revenue Bonds, Series A,
AMBAC Insured, 8%, 5/1/99 Aaa/AAA/AAA 1,000,000 1,120,228
- --------------------------------------------------------------------------------------------------------------------------------
MAINE--1.4% Maine Educational Loan Marketing Corp.
Student Loan Revenue Refunding Bonds,
Series A, 6.05%, 11/1/04 Aaa/NR 750,000 744,931
-------------------------------------------------------------------------------------------------------
Maine State Housing Authority Revenue Bonds,
Mtg. Purchase Project, Series A, 7.50%, 11/15/22 A1/AA 500,000 522,168
1,267,099
----------
- --------------------------------------------------------------------------------------------------------------------------------
MARYLAND--4.7% Howard County, Maryland Certificates of
Participation, Series A, 8.05%, 2/15/21 NR/AA+ 350,000 414,967
-------------------------------------------------------------------------------------------------------
Maryland Water Quality Financing Administration
Revenue Bonds, Revolving Loan Fund, Series A:
0%, 9/1/04 Aa/AA/AA- 900,000 520,872
0%, 9/1/05 Aa/AA/AA- 1,575,000 853,519
0%, 9/1/06 Aa2/AA/AA- 1,575,000 797,654
0%, 9/1/07 Aa/AA/AA- 1,575,000 744,003
-------------------------------------------------------------------------------------------------------
Washington Suburban Sanitation District,
Maryland Revenue Bonds, Sewage Disposal
Project, 5.60%, 6/1/01 Aa1/AA 1,000,000 1,019,964
----------
4,350,979
- --------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS--8.5% Massachusetts Bay Transportation Authority
Revenue Bonds, General Transportation Systems
Project, Series A, 6.25%, 3/1/12 A+/A/A+ 2,000,000 1,993,570
-------------------------------------------------------------------------------------------------------
Massachusetts Municipal Wholesale Electric Co.
Revenue Bonds, Power Supply Systems, Series E,
5.70%, 7/1/01 A/BBB+/A- 1,000,000 1,012,183
-------------------------------------------------------------------------------------------------------
Massachusetts State Dedicated Income Tax Bonds,
Series A, 7.875%, 6/1/97 A/A+/A+ 665,000 714,997
-------------------------------------------------------------------------------------------------------
Massachusetts State General Obligation Bonds,
FGIC Insured, 7.875%, 6/1/97 Aaa/AAA/AAA 500,000 538,630
-------------------------------------------------------------------------------------------------------
Massachusetts State Housing Finance Revenue
Bonds, Series A, AMBAC Insured, 6.35%, 1/1/08 Aaa/AAA/AAA 2,000,000 1,990,906
-------------------------------------------------------------------------------------------------------
Massachusetts State Special Obligation Revenue
Bonds, Series A, AMBAC Insured, 6.25%, 6/1/05 Aa/AA/A+ 1,500,000 1,562,179
----------
7,812,465
- --------------------------------------------------------------------------------------------------------------------------------
MICHIGAN--0.5% Michigan State Hospital Finance Authority
Revenue Bonds, McLaren Obligated Group,
Prerefunded, Series A, 7.50%, 9/15/21 Aaa/NR 435,000 495,028
-------------------------------------------------------------------------------------------------------
NEVADA--2.4% Clark County, Nevada School District General
Obligation Bonds, Series A, MBIA Insured,
9.75%, 6/1/01 Aaa/AAA 1,800,000 2,224,316
</TABLE>
5 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 6
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW JERSEY--7.1% New Jersey State General Obligation Bonds,
5.80%, 8/1/01 Aa1/AA+/AA+ $2,000,000 $ 2,068,138
-------------------------------------------------------------------------------------------------------
New Jersey State Housing and Mtg. Finance
Agency Revenue Bonds, Series A, 6.50%, 11/1/03 NR/A+ 1,860,000 1,917,732
-------------------------------------------------------------------------------------------------------
New Jersey State Turnpike Authority Revenue
Bonds, Series A, 5.80%, 1/1/02 A/A/A 1,000,000 1,023,045
-------------------------------------------------------------------------------------------------------
Ocean County, New Jersey General Obligation
Bonds, 7.40%, 10/15/00 Aa/AA-/AA 1,400,000 1,557,896
-----------
6,566,811
- --------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO--0.6% New Mexico State Hospital Equipment Loan
Council Revenue Bonds, San Juan Regional
Medical Center, Inc. Project, 7.90%, 6/1/11 A/NR 500,000 546,701
- --------------------------------------------------------------------------------------------------------------------------------
NEW YORK--13.3% City of New York General Obligation Bonds,
Series B, 6.75%, 10/1/06 Baa1/A-/NA 5,000,000 5,142,685
-------------------------------------------------------------------------------------------------------
City of New York Industrial Development Agency
Revenue Bonds, Terminal One Group Assn.
Project, 6%, 1/1/08 A/A/A- 2,000,000 1,974,630
-------------------------------------------------------------------------------------------------------
New York State General Obligation Refunding
Bonds, 7.80%, 11/15/99 A/A- 1,000,000 1,122,252
-------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance
Agency:
Revenue Bonds, Mental Health Services Facilities,
Series B, AMBAC Insured, 5.85%, 2/15/02 Aaa/AAA/AAA 955,000 974,971
Revenue Refunding Bonds, Mental Health
Services Facilities, Series F, 6%, 2/15/03 Baa1/BBB+ 1,000,000 1,027,047
-------------------------------------------------------------------------------------------------------
New York State Urban Development Corp.
Revenue Refunding Bonds, Correctional
Facilities Project 5.25%, 1/1/02 Baa1/BBB/A 2,035,000 1,969,304
-----------
12,210,889
- --------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA--0.1% Oklahoma County, Oklahoma Home Finance
Authority Revenue Bonds, GNMA Collateral Mtg.
Program, 7.65%, 1/1/23 NR/AA+ 125,000 131,818
- --------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--10.0% Pennsylvania Intergovernmental Cooperative
Authority Special Tax Revenue Bonds, City of
Philadelphia Funding Program, FGIC Insured,
5.25%, 6/15/06 Aaa/AAA/AAA 3,020,000 2,850,554
-------------------------------------------------------------------------------------------------------
Pennsylvania State Industrial Development
Authority Revenue Bonds, Economic
Development Project:
AMBAC Insured, 6%, 1/1/99 Aaa/AAA/AAA 2,000,000 2,068,626
Series A, 6.80%, 7/1/01 A/A-/AAA 3,000,000 3,250,569
-------------------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania School District
Revenue Bonds, Series A, MBIA Insured,
5.45%, 7/1/04 Aaa/AAA 1,000,000 979,934
----------
9,149,683
</TABLE>
6 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 7
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SOUTH CAROLINA--4.2% Richland County, South Carolina Hospital
Facilities Revenue Bonds, Community Provider
Pooled Loan Program, CGIC Insured, Series A,
7.125%, 7/1/17 Aaa/AAA $ 250,000 $ ,267,589
-------------------------------------------------------------------------------------------------------
South Carolina State Education Assistance
Authority Revenue Bonds, Insured Student Loan,
6.30%, 9/1/01 NR/AA 1,400,000 1,434,545
-------------------------------------------------------------------------------------------------------
South Carolina State Public Service Authority
Revenue Refunding Bonds, Prerefunded,
8%, 7/1/04 Aaa/AA-/A+ 2,000,000 2,169,862
----------
3,871,996
- --------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA--1.6% South Dakota Student Loan Finance Revenue
Bonds, Series A, 5.95%, 8/1/01 NR/A+ 1,500,000 1,489,077
- --------------------------------------------------------------------------------------------------------------------------------
TEXAS--4.5% Harris County, Texas Flood Control Bonds,
Series A, 7.125%, 10/1/98 Aa/AA+ 1,315,000 1,408,612
-------------------------------------------------------------------------------------------------------
Harris County, Texas Revenue Bonds, Toll Road
Project, Prerefunded, 10.375%, 8/1/14 Aaa/NR 1,500,000 1,743,996
-------------------------------------------------------------------------------------------------------
Texas National Research Laboratory Commission
Financing Corp. Lease Revenue Bonds,
Superconducting Super Collider, 6.25%, 12/1/00 NR/A-/A 1,000,000 1,007,514
----------
4,160,122
- --------------------------------------------------------------------------------------------------------------------------------
VERMONT--1.0% Vermont State Student Assistance Corp.
Educational Loan Revenue Bonds, Finance
Program, Series A-3, FSA Insured, 6.25%, 6/15/03 Aaa/AAA 900,000 933,514
- --------------------------------------------------------------------------------------------------------------------------------
VIRGINIA--4.7% Chesapeake, Virginia Public Improvement
General Obligation Bonds, 7%, 5/1/99 Aa/AA 2,155,000 2,336,908
-------------------------------------------------------------------------------------------------------
Virginia State Housing and Development
Commonwealth Authority Revenue Bonds,
Series G, 5.95%, 1/1/03 Aa/AA+ 2,000,000 1,992,062
----------
4,328,970
- --------------------------------------------------------------------------------------------------------------------------------
WASHINGTON--2.3% Port of Seattle, Washington Revenue Bonds,
Series B, 6.30%, 11/1/02 A1/AA-/AA- 1,000,000 1,034,455
-------------------------------------------------------------------------------------------------------
Washington State Public Power Supply System
Revenue Refunding Bonds, Nuclear Project No. 2,
Series B, 7%, 7/1/12 Aa/AA/AA 1,000,000 1,039,799
----------
2,074,254
- --------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA--0.9% West Virginia School Building Authority Revenue
Bonds, Prerefunded, MBIA Insured, 7.25%, 7/1/15 Aaa/AAA 750,000 834,304
- --------------------------------------------------------------------------------------------------------------------------------
WASHINGTON D.C.--1.5% District of Columbia General Obligation Bonds,
MBIA Insured, Series A-1, 4.85%, 6/1/04 AAA/Aaa/A- 1,500,000 1,347,166
</TABLE>
7 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. POSSESSIONS--9.3% Puerto Rico Commonwealth General Obligation
Revenue Refunding Bonds, 6.60%, 7/1/97 Baa1/A $3,000,000 $ 3,133,482
-------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority Revenue Bonds,
Series X, 6.51%, 7/1/04(1) Baa1/A 1,500,000 1,316,931
-------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority Revenue
Bonds, Series P, 6.75%, 7/1/03 Baa1/A- 2,000,000 2,134,396
-------------------------------------------------------------------------------------------------------
Puerto Rico Telephone Authority Revenue Bonds,
AMBAC Insured, 4.77%, 1/1/03(1) AAA/AAA/AAA 2,350,000 1,974,258
-----------
8,559,067
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $91,219,540) 97.2% 89,389,076
- --------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.8 2,577,706
------ -----------
NET ASSETS 100.0% $91,966,782
====== ===========
</TABLE>
(1) Represents the current interest rate for a
variable rate bond. Variable rate bonds known as
"inverse floaters" pay interest at a rate that varies
inversely with short term interest rates. As interest
rates rise, inverse floaters produce less current
income. Their price may be more volatile than
the price of a comparable fixed-rate security.
See accompanying Notes to Financial Statements.
8 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES September 30, 1994
<TABLE>
<S> <C> <C>
======================================================================================================================
ASSETS Investments, at value (cost $91,219,540)--see accompanying statement $89,389,076
-----------------------------------------------------------------------------------
Receivables:
Interest 1,662,897
Investments sold 958,588
Shares of beneficial interest sold 623,163
-----------------------------------------------------------------------------------
Other 1,651
-----------
Total assets 92,635,375
======================================================================================================================
LIABILITIES Bank overdraft 6,997
-----------------------------------------------------------------------------------
Payables and other liabilities:
Dividends 269,869
Distribution and service plan fees--Note 4 56,559
Shares of beneficial interest redeemed 295,757
Other 39,411
-----------
Total liabilities 668,593
======================================================================================================================
NET ASSETS $91,966,782
-----------
======================================================================================================================
COMPOSITION OF Paid-in capital $94,769,631
-----------------------------------------------------------------------------------
NET ASSETS Overdistributed net investment income (142,634)
-----------------------------------------------------------------------------------
Accumulated net realized loss from investment transactions (829,751)
-----------------------------------------------------------------------------------
Net unrealized depreciation on investments--Note 3 (1,830,464)
-----------
Net assets $91,966,782
-----------
======================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $83,456,110 and 5,865,458 shares of beneficial interest outstanding) $14.23
Maximum offering price per share (net asset value plus sales charge
of 3.50% of offering price) $14.75
-----------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $8,510,672 and 600,180 shares of beneficial interest
outstanding) $14.18
See accompanying Notes to Financial Statements.
</TABLE>
9 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 10
STATEMENT OF OPERATIONS For the Year Ended September 30, 1994
<TABLE>
<S> <C>
===============================================================================================================================
INVESTMENT INCOME INTEREST $ 5,014,430
===============================================================================================================================
EXPENSES Management fees--Note 4 413,576
-------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 4 188,179
Class C--Note 4 39,120
-------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 72,812
-------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 36,173
Class C 23,389
Shareholder reports 47,583
-------------------------------------------------------------------------------------------------
Custodian fees and expenses 17,334
-------------------------------------------------------------------------------------------------
Legal and auditing fees 12,303
-------------------------------------------------------------------------------------------------
Trustees' fees and expenses 2,294
-------------------------------------------------------------------------------------------------
Other 22,418
------------
Total expenses 875,181
===============================================================================================================================
NET INVESTMENT INCOME 4,139,249
===============================================================================================================================
REALIZED AND UNREALIZED Net realized loss on investments (1,005,299)
LOSS ON INVESTMENTS
-------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (4,866,867)
------------
Net realized and unrealized loss on investments (5,872,166)
===============================================================================================================================
NET DECREASE IN NET
ASSETS RESULTING FROM OPERATIONS $(1,732,917)
============
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 11
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1994 1993
==================================================================================================================================
<S> <C> <C> <C>
OPERATIONS Net investment income $ 4,139,249 $ 2,482,836
----------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (1,005,299) 295,937
----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (4,866,867) 2,171,010
----------- -----------
Net increase (decrease) in net assets resulting from operations (1,732,917) 4,949,783
==================================================================================================================================
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A ($.6658 and $.75 per share, respectively) (3,542,656) (2,380,648)
SHAREHOLDERS Class C ($.4535 per share) (144,854) --
----------------------------------------------------------------------------------------------------
Dividends in excess of net investment income:
Class A ($.0914 per share) (486,109) --
Class C ($.0622 per share) (19,877) --
----------------------------------------------------------------------------------------------------
Distributions from net realized gain on investments:
Class A ($.47 per share) -- (1,090,058)
----------------------------------------------------------------------------------------------------
Distributions in excess of net realized gain on investments:
Class A ($.0698 per share) (340,993) --
Class C ($.0698 per share) (271) --
==================================================================================================================================
BENEFICIAL INTEREST Net increase in net assets resulting from Class A
TRANSACTIONS beneficial interest transactions--Note 2 19,304,315 38,932,453
----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Class C
beneficial interest transactions--Note 2 8,794,633 --
==================================================================================================================================
NET ASSETS Total increase 21,831,271 40,411,530
----------------------------------------------------------------------------------------------------
Beginning of year 70,135,511 29,723,981
----------- -----------
End of year [including undistributed (overdistributed)
net investment income of ($142,634) and $102,188, respectively] $91,966,782 $70,135,511
=========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 12
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
1994 1993 1992 1991 1990(3)
===========================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $15.34 $15.09 $14.40 $13.51 $13.57
- -----------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .72 .77 .86 .83 .90
Net realized and unrealized
gain (loss) on investments (1.00) .70 .69 .91 (.08)
-------- -------- -------- -------- --------
Total income (loss) from
investment operations (.28) 1.47 1.55 1.74 .82
- -----------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net
investment income (.67) (.75) (.86) (.85) (.88)
Dividends in excess of net
investment income (.09) -- -- -- --
Distributions from net realized
gain on investments -- (.47) -- -- --
Distributions in excess of net
realized gain on investments (.07) -- -- -- --
-------- -------- -------- -------- --------
Total dividends and
distributions to shareholders (.83) (1.22) (.86) (.85) (.88)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.23 $15.34 $15.09 $14.40 $13.51
======== ======== ======== ======== ========
===========================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) (1.92)% 10.31% 11.10% 13.20% 6.14%
===========================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $83,456 $70,136 $29,724 $23,675 $20,287
- -----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $79,076 $48,915 $25,153 $22,071 $20,576
- -----------------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of period (in thousands) 5,865 4,571 1,970 1,644 1,502
- -----------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.05% 5.08% 5.87% 5.93% 6.56%
Expenses, before voluntary
assumption by the Manager 1.00% 1.07% 1.25% 1.35% 1.41%
Expenses, net of voluntary
assumption by the Manager N/A 1.05% 1.16% 1.16% .66%
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 51% 21% 93% 75% 102%
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS C
---------------------------------- -------------
YEAR ENDED PERIOD ENDED
SEPTEMBER 30, SEPTEMBER 30,
1989 1988 1987(2) 1994(1)
==================================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $13.33 $12.56 $14.00 $15.14
- --------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .98 1.05 .90 .46
Net realized and unrealized
gain (loss) on investments .24 .77 (1.44) (.83)
-------- -------- -------- --------
Total income (loss) from
investment operations 1.22 1.82 (.54) (.37)
- --------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net
investment income (.98) (1.05) (.90) (.46)
Dividends in excess of net
investment income -- -- -- (.06)
Distributions from net realized
gain on investments -- -- -- --
Distributions in excess of net
realized gain on investments -- -- -- (.07)
-------- -------- -------- --------
Total dividends and
distributions to shareholders (.98) (1.05) (.90) (.59)
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $13.57 $13.33 $12.56 $14.18
======== ======== ======== ========
==================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 9.54% 14.96% (4.11)% (2.54)%
==================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $19,350 $13,480 $10,228 $8,511
- --------------------------------------------------------------------------------------------------
Average net assets (in thousands) $17,188 $12,220 $11,152 $4,686
- --------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of period (in thousands) 1,426 1,011 814 600
- --------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 7.09% 8.01% 7.39%(5) 3.77%(5)
Expenses, before voluntary
assumption by the Manager 1.56% 1.75% 1.95%(5) 2.24%(5)
Expenses, net of voluntary
assumption by the Manager .23% N/A .40%(5) N/A
- --------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 180% 148% 98% 51%
</TABLE>
(1) For the period from December 1, 1993 (inception of offering) to September
30, 1994.
(2) For the period from November 11, 1986 (commencement of operations) to
September 30, 1987.
(3) On April 7, 1990, Oppenheimer Management Corporation became the investment
advisor to the Fund.
(4) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions reinvested
in additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Sales charges
are not reflected in the total returns.
(5) Annualized.
(6) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the year ended September 30, 1994 were $68,359,263 and $41,537,773,
respectively.
See accompanying Notes to Financial Statements.
12 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<S> <C>
===================================================================================================================================
1. SIGNIFICANT Oppenheimer Intermediate Tax-Exempt Bond Fund (the Fund) is a separate series of Oppenheimer
ACCOUNTING POLICIES Tax-Exempt Bond Fund, a diversified, open-end management investment company registered under the
Investment Company Act of 1940, as amended. The Fund's investment advisor is Oppenheimer Management
Corporation (the Manager). The Fund offers both Class A and Class C shares. Class A shares are sold
with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge.
Both classes of shares have identical rights to earnings, assets and voting privileges, except that
each class has its own distribution and/or service plan, expenses directly attributable to a
particular class and exclusive voting rights with respect to matters affecting a single class. The
following is a summary of significant accounting policies consistently followed by the Fund.
-----------------------------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at 4:00 p.m. (New York time) on each trading
day. Long-term debt securities are valued by a portfolio pricing service approved by the Board of
Trustees. Long-term debt securities which cannot be valued by the approved portfolio pricing service
are valued by averaging the mean between the bid and asked prices obtained from two active market
makers in such securities. Short-term 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. Securities for which market quotes are not readily available are valued under
procedures established by the Board of Trustees to determine fair value in good faith.
-----------------------------------------------------------------------------------------------------
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 INCOME 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 tax provision is required.
-----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends separately for Class A and Class
C 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.
-----------------------------------------------------------------------------------------------------
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective October 1, 1993, the Fund adopted
Statement of Position 93-2: Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies. As a result, the Fund
changed the classification of distributions to shareholders to better disclose the differences between
financial statement amounts and distributions determined in accordance with income tax regulations.
Accordingly, subsequent to September 30, 1993, amounts have been reclassified to reflect a decrease in
paid-in capital of $33, a decrease in undistributed net investment income of $7,341, and a decrease in
undistributed capital loss on investments of $7,374. During the year ended September 30, 1994, in
accordance with Statement of Position 93-2, undistributed net investment income was decreased by
$183,234 and undistributed capital loss was decreased by $183,234.
-----------------------------------------------------------------------------------------------------
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. 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. For bonds acquired after April
30, 1993, accrued market discount is recognized at maturity or disposition as taxable ordinary income.
Taxable ordinary income is realized to the extent of the lesser of gain or accrued market discount.
</TABLE>
13 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (Continued)
<TABLE>
<S> <C>
========================================================================================================================
2. SHARES OF The Fund has authorized an unlimited number of no par value shares of beneficial interest
BENEFICIAL INTEREST of each class. Transactions in shares of beneficial interest were as follows:
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1994(1) YEAR ENDED SEPTEMBER 30, 1993
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Class A:
Sold 2,161,013 $32,133,399 3,115,937 $46,722,666
Dividends and
distributions
reinvested 201,137 2,968,987 160,105 2,381,702
Redeemed (1,067,987) (15,798,071) (674,670) (10,171,915)
---------- ----------- --------- -----------
Net increase 1,294,163 $19,304,315 2,601,372 $38,932,453
========== =========== ========= ===========
-------------------------------------------------------------------------------------------
Class C:
Sold 664,985 $ 9,719,514 -- $ --
Dividends and
distributions
reinvested 8,536 122,637 -- --
Redeemed (73,341) (1,047,518) -- --
---------- ----------- -------- -----------
Net increase 600,180 $ 8,794,633 -- $ --
========== =========== ========= ===========
</TABLE>
(1) For the year ended September 30, 1994 for
Class A shares and for the period from December
1, 1993 (inception of offering) to September 30,
1994 for Class C shares.
<TABLE>
<S> <C>
=========================================================================================================================
3. UNREALIZED GAINS AND At September 30, 1994, net unrealized depreciation on investments of $1,830,464 was
LOSSES ON INVESTMENTS composed of gross appreciation of $497,536, and gross depreciation of $2,328,000.
=========================================================================================================================
4. MANAGEMENT FEES Management fees paid to the Manager were in accordance with the investment advisory
AND OTHER TRANSACTIONS agreement with the Fund which provides for an annual fee of .50% on the first $100 million
WITH AFFILIATES of net assets, .45% on the next $150 million, .425% on the next $250 million and .40% on
net assets in excess of $500 million.
The Manager has agreed to assume Fund expenses (with specified exceptions) in
excess of the most stringent applicable regulatory limit on Fund expenses.
The Manager acts as the accounting agent for the Fund at an annual fee of $12,000,
plus out-of-pocket costs and expenses reasonably incurred.
For the year ended September 30, 1994, commissions (sales charges paid by
investors) on sales of Class A shares totaled $369,458, of which $140,136 was retained by
Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the Manager, as general
distributor, and by an affiliated broker/dealer. During the year ended September 30, 1994,
OFDI received contingent deferred sales charges of $4,641 upon redemption of Class C shares,
as reimbursement for sales commissions advanced by OFDI at the time of sale of such shares.
Oppenheimer Shareholder Service (OSS), a division of the Manager, is the transfer
and shareholder servicing agent for the Fund, and for other registered investment companies.
OSS's total costs of providing such services are allocated ratably to these companies.
Under separate approved plans, each class may expend up to .25% of its net assets
annually to reimburse OFDI for costs incurred in connection with the personal service and
maintenance of accounts that hold shares of the Fund, including amounts paid to brokers,
dealers, banks and other financial institutions. In addition, Class C shares are subject
to an asset-based sales charge of .75% of net assets annually, to reimburse OFDI for sales
commissions paid from its own resources at the time of sale and associated financing costs.
In the event of termination or discontinuance of the Class C plan, the Board of Trustees
may allow the Fund to continue payment of the asset-based sales charge to OFDI for
distribution expenses incurred on Class C shares sold prior to termination or discontinuance
of the plan. During the year ended September 30, 1994, OFDI paid $16,797 to an affiliated
broker/dealer as reimbursement for Class A personal service and maintenance expenses and
retained $39,120 as reimbursement for Class C sales commissions and service fee advances,
as well as financing costs.
</TABLE>
14 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 15
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of Oppenheimer Intermediate Tax-Exempt
Bond Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Intermediate Tax-Exempt Bond Fund
as of September 30, 1994, the related statement of operations for the year then
ended, the statements of changes in net assets for the years ended September
30, 1994 and 1993, and the financial highlights for the period October 1, 1989
to September 30, 1994. 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. The financial highlights (except for total return) for the period
November 11, 1986 (commencement of operations) to September 30, 1989 were
audited by other auditors whose report dated November 2, 1989, expressed an
unqualified opinion on those financial highlights.
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 also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned at September 30, 1994 by correspondence with the custodian and brokers;
and where confirmations were not received from brokers, we performed other
auditing procedures. 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, such financial statements and financial highlights
present fairly, in all material respects, the financial position of Oppenheimer
Intermediate Tax-Exempt Bond Fund at September 30, 1994, the results of its
operations, the changes in its net assets, and the financial highlights for the
respective stated periods, in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
October 21, 1994
15 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 16
FEDERAL INCOME TAX INFORMATION (Unaudited)
In early 1995, shareholders will receive information regarding all dividends
and distributions paid to them by the Fund during calendar year 1994.
Regulations of the U.S. Treasury Department require the Fund to report this
information to the Internal Revenue Service.
A distribution of $.0698 per Class A share was paid on December 10,
1993, of which $.0527 was designated as a "capital gain distribution" for
federal income tax purposes. Whether received in stock or cash, the capital
gain distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains). Both
short-term and long-term capital gain distributions are subject to federal,
state and local taxes.
None of the dividends paid by the Fund during the fiscal year ended
September 30, 1994 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.
16 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 17
OPPENHEIMER INTERMEDIATE TAX-EXEMPT BOND FUND
A Series of Oppenheimer Tax-Exempt Bond Fund
<TABLE>
<S> <C>
=========================================================================================================================
OFFICERS AND TRUSTEES James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee and President
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Andrew J. Donohue, Vice President
Caryn R. Halbrecht, Vice President
Robert E. Patterson, Vice President
George C. Bowen, Vice President, Secretary and Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
=========================================================================================================================
INVESTMENT ADVISOR Oppenheimer Management Corporation
=========================================================================================================================
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
=========================================================================================================================
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
=========================================================================================================================
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
=========================================================================================================================
INDEPENDENT AUDITORS Deloitte & Touche LLP
=========================================================================================================================
LEGAL COUNSEL Myer, Swanson & Adams, P.C.
This is a copy of a report to shareholders of
Oppenheimer Intermediate Tax-Exempt Bond Fund.
This report must be preceded or accompanied by a
Prospectus of Oppenheimer Intermediate Tax-Exempt
Bond Fund. For material information concerning
the Fund, see the Prospectus.
</TABLE>
17 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 18
OPPENHEIMERFUNDS FAMILY
<TABLE>
<S> <C>
==================================================================================================================================
OppenheimerFunds offers over 35 funds designed to fit virtually every investment goal. Whether
you're investing for retirement, your children's education or tax-free income, we have the funds
to help you seek your objective.
When you invest with OppenheimerFunds, you can feel comfortable knowing that you are
investing with a respected financial institution with over 30 years of experience in helping people
just like you reach their financial goals. And you're investing with a leader in global, growth stock
and flexible fixed income investments--with over 1.8 million shareholder accounts and more than $26
billion under Oppenheimer's management and that of our affiliates.
As an OppenheimerFunds shareholder, you can easily exchange shares of eligible funds of
the same class by mail or by telephone for a small administrative fee.1 For more information on
OppenheimerFunds, please contact your financial advisor or call us at 1-800-525-7048 for a prospectus.
You may also write us at the address shown on the back cover. As always, please read the prospectus
carefully before you invest.
==================================================================================================================================
STOCK FUNDS Discovery Fund Global Fund
Global Emerging Growth Fund(2) Oppenheimer Fund
Time Fund Value Stock Fund
Target Fund Gold & Special Minerals Fund
Growth Fund(3)
==================================================================================================================================
STOCK & BOND FUNDS Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth &Income Fund
==================================================================================================================================
BOND FUNDS High Yield Fund Strategic Short-Term Income Fund
ChampionHigh Yield Fund Investment Grade Bond Fund
Strategic Income & Growth Fund Mortgage Income Fund
Strategic Income Fund U.S. Government Trust
Strategic Diversified Income Fund Limited-Term Government Fund
Strategic Investment Grade Bond Fund
==================================================================================================================================
TAX-EXEMPT FUNDS New York Tax-Exempt Fund(4) New Jersey Tax-Exempt Fund(4)
California Tax-Exempt Fund(4) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(4) Insured Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(4) Intermediate Tax-Exempt Bond Fund
==================================================================================================================================
MONEY MARKET FUNDS Money Market Fund Cash Reserves
</TABLE>
(1) The fee is waived for PhoneLink exchanges
between existing accounts. Exchange privileges are
subject to change or termination.
(2) Formerly Oppenheimer Global Bio-Tech Fund and
Oppenheimer Global Environment Fund.
(3) Formerly Special Fund.
(4) Available only to residents of those states.
OppenheimerFunds are distributed by Oppenheimer
Funds Distributor, Inc., Two World Trade Center,
New York, NY 10048-0203. (C) Copyright 1994
Oppenheimer Management Corporation. All rights
reserved.
18 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE> 19
'Talk to a Customer Service
Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m., and
Saturday from 10:00 a.m.
to 2:00 p.m. ET.
Make account transactions with a
Customer Service Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
Get automated information or
make automated transcactions.
24 hours a day, 7 days a week.
Service for the hearing impaired.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
Hear timely and insightful
messages on the economy and
issues that affect your finances.
24 hours a day, 7 days a week.
"Just as OppenheimerFunds offers over 35 different mutual funds designed to
help meet virtually every investment need, Oppenheimer Shareholder Services
offers a variety of services to satisfy your individual needs. Whenever you
require help, we're only a toll-free phone call away.
"For personalized assistance
and account information, call our General
Information number to speak with our
knowledgeable Customer Service
Representatives and get the help you need. [Photograph of
"When you want to make account Barbara Hennigar
transactions, it's easy for you to redeem Chief Executive Officer
shares, exchange shares, or conduct Oppenheimer Shareholder
AccountLink transactions, simply by calling Services.]
our Telephone Transactions number.
"And for added convenience,
OppenheimerFunds' Phone Link, an automated
voice response system is available 24 hours
a day, 7 days a week. PhoneLink gives you access to a variety of fund,
account, and market information. You can even make purchases,
- ------------ exchanges and redemptions using your touch-tone phone. Of
1 9 9 3 course, PhoneLink will always give you the option to
AWARD of speak with a Customer Service Representative during the hours
EXCELLENCE shown to the left.
[LOGO] icsa "When you invest in OppenheimerFunds, you know
- ------------ you'll receive a high level of customer service. The
International International Customer Service Association knows it, too, as
Customer it awarded Oppenheimer Shareholder Services a 1993 Award of
Service Excellence for consistenly demonstrating superior customer
Association service.
"Whatever your needs, we're ready to assist you."
[Logo] OppenheimerFunds(R) -------------------
Oppenheimer Funds Distributor, Inc. Bulk Rate
P.O. Box 5270 U.S. Postage
Denver, CO 80217-5270 PAID
Permit No. 377
Hackensack, NJ
--------------------
