Oppenheimer Intermediate Tax-Exempt Bond Fund
Semiannual Report March 31, 1995
"We want an
investment
that won't
add to our
taxes ... and
we need to feel
comfortable."
[LOGO] Oppenheimer Funds(R)
<PAGE>
Yield
- ---------------------------------
Standardized Yield
- ---------------------------------
For the 30 Days Ended 3/31/95:(1)
- ---------------------------------
Class A
- ---------------------------------
4.53%
- ---------------------------------
Class C
- ---------------------------------
3.81%
- ---------------------------------
This Fund is for people who want an investment that's exempt from taxes and who
feel secure investing in a Fund that seeks to limit interest rate risk.
- --------------------------------------------------------------------------------
How Your Fund Is Managed
- --------------------------------------------------------------------------------
Oppenheimer Intermediate Tax-Exempt Bond Fund invests primarily in a diversified
portfolio of tax-exempt bonds with intermediate term maturities. The Fund's
investment strategy is to seek a high tax-free yield with less of the price
volatility typical of longer-term maturity funds.
- --------------------------------------------------------------------------------
Performance
- --------------------------------------------------------------------------------
Total returns at net asset value for the 6 months ended 3/31/95 for Class A and
C shares were 3.50% and 3.32%, respectively.(2)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1- and 5-year periods ended 3/31/95 and since inception
of the Class on 11/11/86 were 1.50%, 6.80% and 6.84%, respectively. For Class C
shares, average annual total returns for the 1-year period ended 3/31/95 and
since inception of the Class on 12/1/93 were 3.36% and 0.54%, respectively.(3)
- --------------------------------------------------------------------------------
Outlook
- --------------------------------------------------------------------------------
"The intermediate sector of the municipal market continues to offer substantial
value to investors. Intermediate-maturity bonds historically have been less
volatile than longer-maturity bonds. And we believe that today the fundamentals
for long-term performance--positive supply and demand characteristics, improving
state economies, and a generally positive interest-rate outlook--are in place."
Robert Patterson and Caryn Halbrecht
Portfolio Managers
March 31, 1995
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on an investment in the Fund will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than the original cost.
1. Standardized yield is net investment income calculated on a yield-to-maturity
basis for the 30-day period ended 3/31/95, divided by the maximum offering price
at the end of the period, compounded semiannually and then annualized. Falling
net asset values will tend to artificially raise yields.
2. Based on the change in net asset value per share from 9/30/94 to 3/31/95,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
3. Class A returns show results of hypothetical investments on 4/1/94, 4/1/90
and 11/11/86 (inception of class), after deducting the current maximum initial
sales charge of 3.50%. Class C returns show results of hypothetical investments
on 4/1/94 and 12/1/93 (inception of class) with the 1% contingent deferred sales
charge deducted for the 1-year result. An explanation of the different total
returns is in the Fund's prospectus. Prior to 4/7/90, the Fund had a different
advisor.
2 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE>
[PHOTOGRAPH]
James C. Swain
Chairman
Oppenheimer
Intermediate
Tax-Exempt Fund
[PHOTOGRAPH]
Jon S. Fossel
President
Oppenheimer
Intermediate
Tax-Exempt Fund
Dear OppenheimerFunds Shareholder,
To see how greatly the municipal market has improved since our last
report--issued in one of the worst years for bonds on record--we need look no
further than the market's reaction to the Federal Reserve's most recent
short-term rate increase in February. While the markets had already anticipated
this move, unlike previous rate increases, long-term interest rates continued to
decline and bonds rallied further. While the Fed could possibly raise rates
again, we believe that this positive environment will likely last throughout
1995--an outlook supported by a number of considerations.
Most important, concerns about the impact of inflation on bond prices are
fading fast. The Fed's actions to fend off inflation seem to have had the
desired effect. By most indicators--commodity prices, consumer spending,
housing starts, and many others--economic growth is slowing to a pace that can
be sustained without reigniting inflation or causing a recession.
That's good news for municipal bondholders, and it gets even better. At
current prices, intermediate and long-term municipal bonds are producing some of
the best real, inflation-adjusted returns in years. With the actual inflation
rate running at about 3 percent today, many tax-free investors are clearly being
rewarded.
These positives are enhanced by another development: a marked shift in the
municipal bond market's supply and demand dynamics. While demand for tax-free
securities appears to be returning to its long-term upward trend, municipal bond
supplies are being constrained. Not only have higher interest rates caused the
volume of new tax-free issues to fall from 1994 levels, the high volume of bond
calls, in which issuers redeem bonds before their scheduled maturities, is
producing municipal bond shortages nationwide. This combination of growing
demand and shrinking supply is providing strong support to municipal bond
prices.
As the Fed concludes its tightening efforts--and recent events suggest that
point is near-- long-term interest rates will likely stay within their current
range, and could possibly decline further as the economy slows. Of course, there
is a possibility of rising rates later this year if future economic reports
indicate that the economy isn't slowing as quickly as it seems to be today;
however, we believe that over the longer term, the downward trend of rates will
continue.
Of course, no one can predict the future with perfect clarity, especially
when looking ahead involves forecasting interest rates. The bond markets are
always subject to fluctuations and, as we saw in 1994, the shifts sometimes can
be sharp. Overall, however, we believe the outlook for the bond markets today
appears positive.
On the following pages, your portfolio manager discusses the trends in
place today and the outlook for your Fund in more detail. We appreciate your
confidence in OppenheimerFunds, and will continue to do our best to help you
meet your long-term investment objectives.
/s/ James C. Swain /s/ Jon S. Fossel
James C. Swain Jon S. Fossel
April 24, 1995
3 Oppenheimer Intermediate Tax-Exempt Fund
<PAGE>
Robert Patterson and
Caryn Halbrecht
Portfolio Managers
Q + A
An interview with your Fund's managers.
A lot happened in the municipal market over the past year. What were the most
important factors affecting the Fund's performance?
Many factors combined to make the past year one of the most challenging that
tax-free investors have seen in decades, but one factor stands out: the Federal
Reserve's efforts to fend off inflation, which drove interest rates up and bond
prices down. The Fed's actions affected all municipal bonds and bond funds, and
this Fund was no exception.
Since November of 1994, the bond market has staged a strong rally, as it
became clear that the Fed's actions were working. With inflation fears largely
out of the way, the general tone of the municipal market is becoming more
positive every day, and recent Fund performance reflects it.
Did those developments cause you to change your investment strategy?
In some ways. For example, we took a barbell approach to portfolio construction.
While the Fund's average maturity currently is about nine years, that doesn't
mean we're just focusing on bonds maturing in the nine to ten-year range.
Instead, we're concentrating on bonds maturing in two to three years and those
maturing in about 15 years. The longer-maturity bonds provide a higher level of
income than could be obtained on intermediate issues, while the shorter-maturity
bonds provide price stability.(1)
What other kinds of bonds are you focusing on today?
We're continuing to find good values in bonds issued by states such as Oklahoma,
Georgia, and Kentucky, in sectors including housing, transportation, and
healthcare. Some time ago, in fact, we identified a number of hospital bonds we
considered to be undervalued, and those issues helped the Fund's performance
considerably over the last few months.
What's your outlook for the intermediate bond market going forward?
This sector should continue to perform well as individuals and insurance
companies concentrate their municipal bond investments primarily in the 1 to
15-year maturity range.
Our barbell approach to portfolio management should also allow us to
capitalize on opportunities outside the intermediate sector while maintaining a
conservative risk profile. |_|
1. The Fund's portfolio is subject to change.
4 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
Statement of Investments March 31, 1995 (Unaudited)
-----------------------------------------------------------------------------------------------------------
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Municipal Bonds and Notes--96.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Alaska--1.3% North Slope Boro, Alaska General Obligation Bonds,
Series B, CGIC Insured, 7.50%, 6/30/01 Aaa/AAA $1,000,000 $ 1,115,029
- ------------------------------------------------------------------------------------------------------------------------------------
California--4.4% California Statewide Communities Development Authority
Hospital Revenue Certificates of Participation, Cedars-Sinai
Medical Center, MBIA-IBC Insured, 6.50%, 8/1/12 Aaa/AAA 1,000,000 1,058,875
-----------------------------------------------------------------------------------------------------------
Corona, California Certificates of Participation,
Prerefunded, Series B, 10%, 11/1/20 Aaa/AAA 1,000,000 1,310,381
-----------------------------------------------------------------------------------------------------------
Palomar Pomerado, California Health System
Revenue Bonds, MBIA Insured, Zero Coupon, 11/1/04 Aaa/AAA 1,000,000 579,134
-----------------------------------------------------------------------------------------------------------
San Bernardino County, California Certificates of
Participation, Medical Center Financing Project, 6%, 8/1/09 Baa1/A-- 1,000,000 961,825
-----------
3,910,215
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado--1.7% Denver, Colorado City & County Airport Revenue
Bonds, Series A, 7%, 11/15/99 Baa/BB/BBB-- 1,000,000 1,005,357
-----------------------------------------------------------------------------------------------------------
Meridian Metropolitan District, Colorado General
Obligation Refunding Bonds, 7.50%, 12/1/11 A3/NR 500,000 549,426
-----------
1,554,783
- ------------------------------------------------------------------------------------------------------------------------------------
Connecticut--2.5% Connecticut State Special Tax Revenue Bonds,
Transportation Infrastructure Project, Prerefunded,
Series A, 7.125%, 6/1/07 NR/AAA 2,000,000 2,224,816
- ------------------------------------------------------------------------------------------------------------------------------------
District of
Columbia--1.5% District of Columbia General Obligation Refunding
Bonds, Series A-1, MBIA Insured, 4.85%, 6/1/04 Aaa/AAA/BB 1,500,000 1,376,620
- ------------------------------------------------------------------------------------------------------------------------------------
Florida--3.1% 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 1,614,277
-----------------------------------------------------------------------------------------------------------
Polk County, Florida Industrial Development Authority
Revenue Bonds, Purex Corp. Project, 6.75%, 6/1/03 NR/NR 1,115,000 1,115,153
-----------
2,729,430
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia--2.5% Georgia State Residential Finance Authority Home
Ownership Mtg. Revenue Bonds, Series A-1,
FHA Insured, 7.50%, 6/1/17 Aa/AA+ 245,000 259,179
-----------------------------------------------------------------------------------------------------------
Savannah, Georgia Hospital Authority Revenue Bonds,
Refunding & Improvement--Chandler Hospital, 7%, 1/1/11 Baa/BBB+ 2,000,000 2,005,382
-----------
2,264,561
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois--5.7% Chicago, Illinois General Obligation Refunding Bonds,
Prerefunded, Series B, 9.25%, 1/1/13 A/A 500,000 556,297
-----------------------------------------------------------------------------------------------------------
Du Page County, Illinois First Preservation District
General Obligation Bonds, Prerefunded, 7.70%, 11/1/00 NR/AAA 1,000,000 1,088,327
-----------------------------------------------------------------------------------------------------------
Du Page Water Commission Illinois Water Revenue
Bonds, Prerefunded, 6.875%, 5/1/14 NR/AAA 1,000,000 1,059,459
-----------------------------------------------------------------------------------------------------------
Illinois Development Finance Authority Pollution
Control Revenue Refunding Bonds, Central Illinois
Public Service Co., Series A, 7.60%, 3/1/14 Aa2/AA 250,000 269,426
-----------------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority Revenue
Refunding Bonds, Lutheran Health Systems,
Prerefunded, Series C, MBIA Insured, 7.50%, 4/1/18 A/A+ 400,000 443,648
</TABLE>
5 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
Statement of Investments March 31, 1995 (Unaudited)(Continued)
-----------------------------------------------------------------------------------------------------------
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois Southwestern Illinois Development Authority Hospital
(continued) Revenue Bonds, Saint Elizabeth Medical Center, 8%, 6/1/10 NR/A-- $ 500,000 $ 535,490
-----------------------------------------------------------------------------------------------------------
Waukegan, Illinois General Obligation Bonds,
MBIA Insured, 7.50%, 12/30/03 Aaa/AAA 1,000,000 1,130,724
-----------
5,083,371
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana--1.6% Indiana Bond Bank Revenue Guarantee Bonds, State
Revolving Fund Program, Series A, 6.875%, 2/1/12 NR/A 1,135,000 1,175,803
-----------------------------------------------------------------------------------------------------------
Indiana University Revenue Bonds, Hospital
Facilities Project, 7%, 1/1/09 A1/A+ 215,000 221,824
-----------
1,397,627
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa--0.2% Des Moines, Iowa Hospital Revenue Bonds, Iowa
Methodist Medical Center, 7.875%, 8/15/15 A1/A+ 150,000 163,873
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky--1.2% Kentucky State Turnpike Authority Economic
Development Road Revenue Bonds, Revitalization
Projects, Prerefunded, 7.375%, 5/15/07 Aaa/AAA/A+ 1,000,000 1,114,622
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana--1.2% Louisiana State General Obligation Bonds,
Series A, AMBAC Insured, 8%, 5/1/99 Aaa/AAA/AAA 1,000,000 1,112,624
- ------------------------------------------------------------------------------------------------------------------------------------
Maine--1.4% Maine Educational Loan Marketing Corp. Student
Loan Revenue Refunding Bonds, Series A, 6.05%, 11/1/04 Aaa/NR 750,000 760,840
-----------------------------------------------------------------------------------------------------------
Maine State Housing Authority Revenue Bonds,
Mtg. Purchase Project, Series A, 7.50%, 11/15/22 A1/AA 500,000 524,051
-----------
1,284,891
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland--3.9% Howard County, Maryland Certificates of
Participation, Series A, 8.05%, 2/15/21 NR/AA+ 350,000 433,935
-----------------------------------------------------------------------------------------------------------
Maryland Water Quality Financing Administration
Revenue Bonds, Revolving Loan Fund, Series A:
Zero Coupon, 9/1/04 Aa/AA/AA- 900,000 545,920
Zero Coupon, 9/1/05 Aa/AA/AA- 1,575,000 896,822
Zero Coupon, 9/1/06 Aa/AA/AA- 1,575,000 840,239
Zero Coupon, 9/1/07 Aa/AA/AA- 1,575,000 789,502
-----------
3,506,418
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts--3.7% Massachusetts Bay Transportation Authority Revenue
Bonds, General Transportation Systems Project,
Series A, 6.25%, 3/1/12 A1/A+/A+ 2,000,000 2,049,158
-----------------------------------------------------------------------------------------------------------
Massachusetts State Dedicated Income Tax Bonds,
Series A, 7.875%, 6/1/97 A1/A+/A+ 665,000 708,163
-----------------------------------------------------------------------------------------------------------
Massachusetts State General Obligation Bonds,
FGIC Insured, 7.875%, 6/1/97 Aaa/AAA/AAA 500,000 530,652
-----------
3,287,973
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan--0.6% Michigan State Hospital Finance Authority Revenue
Bonds, McLaren Obligated Group, Prerefunded,
Series A, 7.50%, 9/15/21 Aaa/NR 435,000 497,826
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada--2.5% Clark County, Nevada School District General
Obligation Bonds, Series A, MBIA Insured, 9.75%, 6/1/01 Aaa/AAA 1,800,000 2,223,922
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey--1.8% Ocean County, New Jersey General Obligation
Bonds, 7.40%, 10/15/00 Aa/AA-/AA 1,400,000 1,560,774
</TABLE>
6 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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 $ 546,846
- ------------------------------------------------------------------------------------------------------------------------------------
New York--14.9% City of New York General Obligation Bonds, Series F,
8.40%, 11/15/07 Baa1/A- 4,500,000 5,091,304
-----------------------------------------------------------------------------------------------------------
City of New York Industrial Development Agency Revenue
Bonds, Terminal One Group Assn. Project, 6%, 1/1/08 A/A/A- 2,000,000 2,003,311
-----------------------------------------------------------------------------------------------------------
City of New York Industrial Development Agency
Special Facility Revenue Bonds, Terminal One
Group Assn. Project, 6.10%, 1/1/09 A/A/A- 2,000,000 2,010,732
-----------------------------------------------------------------------------------------------------------
New York State General Obligation Refunding Bonds,
7.80%, 11/15/99 A/A- 1,000,000 1,118,571
-----------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance
Agency Revenue Refunding Bonds, Mental Health
Services Facilities, Series F, 6%, 2/15/03 Baa1/BBB+ 1,000,000 1,023,191
-----------------------------------------------------------------------------------------------------------
New York State Urban Development Corp. Revenue
Refunding Bonds, Correctional Facilities Project,
5.25%, 1/1/02 Baa1/BBB/A 2,035,000 1,994,117
-----------
13,241,226
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma--1.3% Oklahoma County, Oklahoma Home Finance
Authority Revenue Bonds, GNMA Collateral Mtg
Program, 7.65%, 1/1/23 NR/AA- 125,000 131,928
-----------------------------------------------------------------------------------------------------------
Oklahoma State Industrial Authority Revenue Bonds,
Health Systems--Baptist Center, Series C, AMBAC
Insured, 7%, 8/15/05 Aaa/AAA/AAA 955,000 1,059,029
-----------
1,190,957
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania--8.6% Pennsylvania State Industrial Development Authority
Revenue Bonds, Economic Development Project,
AMBAC Insured, 6%, 1/1/99 Aaa/AAA/AAA 2,000,000 2,068,128
-----------------------------------------------------------------------------------------------------------
Pennsylvania State Industrial Development Authority
Revenue Bonds, Economic Development Project,
Series A, 6.80%, 7/1/01 NR/A-/AAA 3,000,000 3,239,751
-----------------------------------------------------------------------------------------------------------
Schuylkill County, Pennsylvania Industrial
Development Authority Resource Recovery Revenue
Refunding Bonds, Schuylkill Energy Resources, Inc.,
6.50%, 1/1/10 NR/NR/BBB- 2,500,000 2,337,907
-----------
7,645,786
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina--4.3% Richland County, South Carolina Hospital Facilities
Revenue Bonds, Community Provider Pooled Loan
Program, CGIC Insured, Series A, 7.125%, 7/1/17 Aaa/AAA 250,000 267,141
-----------------------------------------------------------------------------------------------------------
South Carolina State Education Assistance Authority
Revenue Bonds, Insured Student Loan, 6.30%, 9/1/01 NR/AA 1,400,000 1,447,568
-----------------------------------------------------------------------------------------------------------
South Carolina State Public Service Authority Revenue
Refunding Bonds, Prerefunded, 8%, 7/1/04 Aaa/AA-/A+ 2,000,000 2,139,168
-----------
3,853,877
- ------------------------------------------------------------------------------------------------------------------------------------
South Dakota--1.7% South Dakota Student Loan Finance Revenue
Bonds, Series A, 5.95%, 8/1/01 NR/A+ 1,500,000 1,505,343
</TABLE>
7 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
Statement of Investments March 31, 1995 (Unaudited)
-----------------------------------------------------------------------------------------------------------
Ratings: Moody's/ Face Market Value
S&P's/Fitch's Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Texas--7.8% Harris County, Texas Flood Control Bonds, Series A,
7.125%, 10/1/98 Aa/AA+ $1,315,000 $ 1,410,474
-----------------------------------------------------------------------------------------------------------
Harris County, Texas Health Facilities Development
Corp. Hospital Revenue Bonds, Hermann Trust,
Prerefunded, 9%, 10/1/17 Aaa/AAA 2,500,000 2,791,535
-----------------------------------------------------------------------------------------------------------
Harris County, Texas Revenue Bonds, Toll Road
Project, Prerefunded, 10.375%, 8/1/14 Aaa/NR 1,500,000 1,716,118
-----------------------------------------------------------------------------------------------------------
Texas National Research Laboratory Commission
Financing Corp. Lease Revenue Bonds,
Superconducting Super Collider, 6.25%, 12/1/00 NR/A-/A 1,000,000 1,005,567
-----------
6,923,694
- ------------------------------------------------------------------------------------------------------------------------------------
Vermont--1.1% Vermont State Student Assistance Corp. Educational
Loan Revenue Bonds, Finance Program, Series A-3,
FSA Insured, 6.25%, 6/15/03 Aaa/AAA 900,000 947,038
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia--2.6% Chesapeake, Virginia Public Improvement General
Obligation Bonds, 7%, 5/1/99 Aa/AA 2,155,000 2,327,965
- ------------------------------------------------------------------------------------------------------------------------------------
Washington--1.2% Port of Seattle, Washington Revenue Bonds,
Series B, 6.30%, 11/1/02 A1/AA-/AA- 1,000,000 1,050,901
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia--0.9% West Virginia School Building Authority Revenue
Bonds, Prerefunded, MBIA Insured, 7.25%, 7/1/15 Aaa/AAA 750,000 836,358
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Possessions--10.5% Puerto Rico Commonwealth Highway & Transportation
Authority Revenue Bonds, Series X, 5.30%, 7/1/04 Baa1/A 3,000,000 2,933,319
-----------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority Revenue
Bonds, Series P, 6.75%, 7/1/03 Baa1/A- 2,000,000 2,146,886
-----------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority Revenue
Refunding Bonds, Series S, 7%, 7/1/07 Baa1/A- 2,000,000 2,209,992
-----------------------------------------------------------------------------------------------------------
Puerto Rico Telephone Authority Revenue
Bonds, AMBAC Insured, Inverse Floater, 3.91%, 1/1/03(1) Aaa/AAA/AAA 2,400,000 2,041,125
-----------
9,331,322
-----------
Total Municipal Bonds and Notes (Cost $85,473,531) 85,810,688
====================================================================================================================================
Short-Term Tax-Exempt Obligations--1.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Apache County, Arizona Industrial Development
Authority Pollution Control Revenue Bonds, Tucson
Electric Power Co. Project, Series A, 4.25%
(Cost $1,600,000)(2) 1,600,000 1,600,000
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $87,073,531) 98.1% 87,410,688
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.9 1,717,723
---------- -----------
Net Assets 100.0% $89,128,411
========== ===========
1. Represents the current interest rate for a variable rate bond. Variable rate bonds known as "inverse
floaters" pay interest at a rate that varies inversely with short-term interest rates. As interest rates
rise, inverse floaters produce less current income. Their price may be more volatile than the price of a
comparable fixed-rate security. The multiplier for this inverse floater is 2. Inverse floaters amount to
$2,041,125 or 2.3% of the Fund's net assets, at March 31, 1995.
2. Floating or variable rate obligation maturing in more than one year. The interest rate, which is based
on specific, or an index of, current market interest rates, is subject to change periodically and is the
effective rate on March 31, 1995. This instrument may also have a demand feature which allows the recovery
of principal at any time, or at specified intervals not exceeding one year, on up to 30 days' notice.
See accompanying Notes to Financial Statements.
</TABLE>
8 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE>
<TABLE>
-----------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 1995 (Unaudited)
-----------------------------------------------------------------------------------------------------------
====================================================================================================================================
<S> <C> <C>
Assets Investments, at value (cost $87,073,531)--see accompanying statement $ 87,410,688
-----------------------------------------------------------------------------------------------------------
Cash 167,445
-----------------------------------------------------------------------------------------------------------
Receivables:
Interest 1,641,255
Shares of beneficial interest sold 345,888
-----------------------------------------------------------------------------------------------------------
Other 5,038
------------
Total assets 89,570,314
====================================================================================================================================
Liabilities Payables and other liabilities:
Dividends 258,069
Shares of beneficial interest redeemed 117,920
Distribution and service plan fees--Note 4 53,339
Transfer and shareholder servicing agent fees--Note 4 5,642
Trustees' fees 3,400
Other 3,533
------------
Total liabilities 441,903
====================================================================================================================================
Net Assets $ 89,128,411
============
====================================================================================================================================
Composition of Paid-in capital $ 91,315,141
Net Assets -----------------------------------------------------------------------------------------------------------
Overdistributed net investment income (28,834)
-----------------------------------------------------------------------------------------------------------
Accumulated net realized loss from investment transactions (2,495,053)
-----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 337,157
------------
Net assets $ 89,128,411
============
====================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net assets of
$81,512,367 and 5,685,007 shares of beneficial interest outstanding) $14.34
Maximum offering price per share (net asset value plus sales charge of 3.50% of
offering price) $14.86
- ------------------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $7,616,044 and 531,902 shares of beneficial interest outstanding) $14.32
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE>
<TABLE>
-----------------------------------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended March 31, 1995 (Unaudited)
-----------------------------------------------------------------------------------------------------------
====================================================================================================================================
<S> <C> <C>
Investment Income Interest $ 2,848,182
====================================================================================================================================
Expenses Management fees--Note 4 215,993
-----------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A--Note 4 92,338
Class C--Note 4 39,343
-----------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 33,825
-----------------------------------------------------------------------------------------------------------
Shareholder reports 19,167
-----------------------------------------------------------------------------------------------------------
Legal and auditing fees 5,048
-----------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 1,181
-----------------------------------------------------------------------------------------------------------
Custodian fees and expenses 391
-----------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 14,926
Class C 7,301
-----------------------------------------------------------------------------------------------------------
Other 14,214
------------
Total expenses 443,727
====================================================================================================================================
Net Investment Income 2,404,455
====================================================================================================================================
Realized and Unrealized Net realized loss on investments (1,665,302)
Gain (Loss) on -----------------------------------------------------------------------------------------------------------
Investments Net change in unrealized appreciation or depreciation on investments 2,167,621
------------
Net realized and unrealized gain on investments 502,319
====================================================================================================================================
Net Increase in Net Assets Resulting From Operations $ 2,906,774
===========
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------------------------
Six Months Ended
March 31, 1995 Year Ended
(Unaudited) Sept. 30, 1994
====================================================================================================================================
<S> <C> <C> <C>
Operations Net investment income $ 2,404,455 $ 4,139,249
-----------------------------------------------------------------------------------------------------------
Net realized loss on investments (1,665,302) (1,005,299)
-----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 2,167,621 (4,866,867)
------------ ------------
Net increase (decrease) in net assets resulting from operations 2,906,774 (1,732,917)
====================================================================================================================================
Dividends and Dividends from net investment income:
Distributions to Class A ($.375 and $.6658 per share, respectively) (2,131,166) (3,542,656)
Shareholders Class C ($.3193 and $.4535 per share, respectively) (159,489) (144,854)
-----------------------------------------------------------------------------------------------------------
Dividends in excess of net investment income:
Class A ($.0914 per share) -- (486,109)
Class C ($.0622 per share) -- (19,877)
-----------------------------------------------------------------------------------------------------------
Distributions in excess of net realized gain on investments:
Class A ($.0698 per share) -- (340,993)
Class C ($.0698 per share) -- (271)
====================================================================================================================================
Beneficial Interest Net increase (decrease) in net assets resulting from Class A
Transactions beneficial interest transactions--Note 2 (2,497,828) 19,304,315
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Class C
beneficial interest transactions--Note 2 (956,662) 8,794,633
====================================================================================================================================
Net Assets Total increase (decrease) (2,838,371) 21,831,271
-----------------------------------------------------------------------------------------------------------
Beginning of period 91,966,782 70,135,511
------------ ------------
End of period (including overdistributed net investment income
of $28,834 and $142,634, respectively) $ 89,128,411 $ 91,966,782
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
Financial Highlights
-----------------------------------------------------------------------------------------------------------
Class A Class C
------------------------------------------------------------------ ----------------------------
Six Months Period
Six Months Ended Ended Ended
March 31, 1995 Year Ended September 30, Mar. 31, 1995 Sept. 30,
(Unaudited) 1994 1993 1992 1991 1990(2) (Unaudited) 1994(1)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value,
beginning of period $ 14.23 $15.34 $15.09 $14.40 $13.51 $13.57 $ 14.18 $15.14
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income .39 .72 .77 .86 .83 .90 .36 .46
Net realized and unrealized
gain (loss) on investments .10 (1.00) .70 .69 .91 (.08) .10 (.83)
-------- ------- ------- ------- ------- ------- -------- ------
Total income (loss) from
investment operations .49 (.28) 1.47 1.55 1.74 .82 .46 (.37)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net
investment income (.38) (.67) (.75) (.86) (.85) (.88) (.32) (.46)
Dividends in excess of net
investment income -- (.09) -- -- -- -- -- (.06)
Distributions from
net realized
gain on investments -- -- (.47) -- -- -- -- --
Distributions in
excess of net
realized gain on
investments -- (.07) -- -- -- -- -- (.07)
-------- ------- ------- ------- ------- ------- -------- ------
Total dividends and
distributions to
shareholders (.38) (.83) (1.22) (.86) (.85) (.88) (.32) (.59)
====================================================================================================================================
Net asset value,
end of period $ 14.34 $14.23 $15.34 $15.09 $14.40 $13.51 $ 14.32 $14.18
======== ======= ======= ======= ======= ======= ======== ======
====================================================================================================================================
Total Return, at
Net Asset Value(3) 3.50% (1.92)% 10.31% 11.10% 13.20% 6.14% 3.32% (2.54)%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental
Data:
Net assets,
end of period
(in thousands) $ 81,512 $83,456 $70,136 $29,724 $23,675 $20,287 $ 7,616 $8,511
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $ 78,758 $79,076 $48,915 $25,153 $22,071 $20,576 $ 7,858 $4,686
- ------------------------------------------------------------------------------------------------------------------------------------
Number of shares
outstanding
at end of period
(in thousands) 5,685 5,865 4,571 1,970 1,644 1,502 532 600
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average
net assets:
Net investment income 5.65%(4) 5.05% 5.08% 5.87% 5.93% 6.56% 4.73%(4) 3.77%(4)
Expenses, before
voluntary assumption
by the Manager .94%(4) 1.00% 1.07% 1.25% 1.35% 1.41% 1.86%(4) 2.24%(4)
Expenses, net of
voluntary assumption
by the Manager N/A N/A 1.05% 1.16% 1.16% .66% N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover
rate(5) 32% 51% 21% 93% 75% 102% 32% 51%
1. For the period from December 1, 1993 (inception of offering) to September 30, 1994.
2. On April 7, 1990, Oppenheimer Management Corporation became the investment advisor to the Fund.
3. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and
distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last
business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for
periods of less than one full year.
4. Annualized.
5. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of
portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year
or less are excluded from the calculation. Purchases and sales of investment securities (excluding short-term securities) for the
six months ended March 31, 1995 were $27,328,472 and $31,507,699, respectively.
See accompanying Notes to Financial Statements.
</TABLE>
12 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE>
<TABLE>
-----------------------------------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
-----------------------------------------------------------------------------------------------------------
====================================================================================================================================
<S> <C>
1. Significant Oppenheimer Intermediate Tax-Exempt Bond Fund (the Fund) is a separate series of Oppenheimer Tax-Exempt
Accounting Policies 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 the close of the New York Stock Exchange on each
trading day. Listed and unlisted securities for which such information is regularly reported are valued at
the last sale price of the day or, in the absence of sales, at values based on the closing bid or asked
price or the last sale price on the prior trading day. Long-term and short-term "non-money market" debt
securities are valued by a portfolio pricing service approved by the Board of Trustees. Such securities
which cannot be valued by the approved portfolio pricing service are valued using dealer-supplied
valuations provided the Manager is satisfied that the firm rendering the quotes is reliable and that the
quotes reflect current market value, or 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. Forward contracts are valued based on the closing
prices of the forward currency contract rates in the London foreign exchange markets on a daily basis as
provided by a reliable bank or dealer. Options are valued based upon the last sale price on the principal
exchange on which the option is traded or, in the absence of any transactions that day, the value is based
upon the last sale price on the prior trading date if it is within the spread between the closing bid and
asked prices. If the last sale price is outside the spread, the closing bid or asked price closest to the
last reported sale price is used.
-----------------------------------------------------------------------------------------------------------
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.
-----------------------------------------------------------------------------------------------------------
Distributions to Shareholders. The Fund intends to declare dividends separately for Class A 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. The
character of the distributions made during the year from net investment income or net realized gains may
differ from their ultimate characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the
income or realized gain (loss) was recorded by the Fund. 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.
-----------------------------------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the investments are purchased or sold (trade
date). 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. Original issue
discount on securities purchased is amortized over the life of the respective securities, in accordance
with federal income tax requirements. For bonds acquired after April 30, 1993, accrued market discount is
recognized at maturity or disposition as taxable ordinary income. 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>
<TABLE>
-----------------------------------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
-----------------------------------------------------------------------------------------------------------
====================================================================================================================================
<S> <C>
2. Shares of The Fund has authorized an unlimited number of no par value shares of beneficial interest of each class.
Beneficial Interest Transactions in shares of beneficial interest were as follows:
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended March 31, 1995 Year Ended September 30, 1994(1)
------------------------------- --------------------------------
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 589,734 $ 8,273,344 2,161,013 $ 32,133,399
Dividends and distributions reinvested 99,225 1,386,590 201,137 2,968,987
Redeemed (869,410) (12,157,762) (1,067,987) (15,798,071)
------------ ------------ ------------ ------------
Net increase (decrease) (180,451) $ (2,497,828 1,294,163 $ 19,304,315
============ ============ ============ ============
-----------------------------------------------------------------------------------------------------------
Class C:
Sold 85,165 $ 1,190,840 664,985 $ 9,719,514
Dividends and distributions reinvested 10,379 144,564 8,536 122,637
Redeemed (163,822) (2,292,066) (73,341) (1,047,518)
------------ ------------ ------------ ------------
Net increase (decrease) (68,278) $ (956,662) 600,180 $ 8,794,633
============ ============ ============ ============
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>
<TABLE>
====================================================================================================================================
<S> <C>
3. Unrealized Gains and At March 31, 1995, net unrealized appreciation on investments of $337,157 was composed of gross
Losses on appreciation of $1,716,244, and gross depreciation of $1,379,087.
Investments
====================================================================================================================================
4. Management Fees and Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund
Other Transactions which provides for an annual fee of .50% on the first $100 million of net assets, .45% on the next $150
With Affiliates 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 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 six months ended March 31, 1995, commissions (sales charges paid by investors)
on sales of Class A shares totaled $86,377, of which $37,374 was retained by Oppenheimer Funds Distributor,
Inc., (OFDI), a subsidiary of the Manager, as general distributor, and by an affiliated broker/dealer.
Sales charges advanced to broker/dealers by OFDI on sales of the Fund's Class C shares totaled $11,276, of
which $5,126 was paid to an affiliated broker/dealer. During the six months ended March 31, 1995, OFDI
received contingent deferred sales charges of $8,149 upon redemption of Class C shares, as reimbursement
for sales commissions advanced by OFDI at the time of sale of such shares.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and for other registered investment companies. OSS's total costs
of providing such services are allocated ratably to these companies.
Under separate approved plans, each class may expend up to .25% of its net assets
annually to 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
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 six
months ended March 31, 1995, OFDI paid $8,990 and $372, respectively, to an affiliated broker/dealer as
reimbursement for Class A and Class C personal service and maintenance expenses and retained $38,327 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>
<TABLE>
-----------------------------------------------------------------------------------------------------------
Oppenheimer Intermediate Tax-Exempt Bond Fund
-----------------------------------------------------------------------------------------------------------
A Series of Oppenheimer Tax-Exempt Bond Fund
====================================================================================================================================
<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 Oppenheimer Shareholder Services
Shareholder
Servicing Agent
====================================================================================================================================
Custodian of Citibank, N.A.
Portfolio Securities
====================================================================================================================================
Independent Auditors Deloitte & Touche LLP
====================================================================================================================================
Legal Counsel Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been taken from the records of the Fund without examination
by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer 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>
15 Oppenheimer Intermediate Tax-Exempt Bond Fund
<PAGE>
Information
General Information
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
- -------------------------------------
1-800-525-7048
- -------------------------------------
Telephone Transactions
Monday-Friday 8:30 a.m.-8 p.m. ET
- -------------------------------------
1-800-852-8457
- -------------------------------------
PhoneLink
24 hours a day, automated
information and transactions
- -------------------------------------
1-800-533-3310
- -------------------------------------
Telecommunications Device
for the Deaf (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
- -------------------------------------
1-800-843-4461
- -------------------------------------
OppenheimerFunds
Information Hotline
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
- -------------------------------------
RS0860.001.0595 May 31, 1995
[PHOTOGRAPH]
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
"How may I help you?"
As an OppenheimerFunds 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 OppenheimerFunds 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 OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- --------------------------------------------------------------------------------
[LOGO] Oppenheimer Funds(R) ---------------
Oppenheimer Funds Distributor, Inc. Bulk Rate
P.O. Box 5270 U.S. Postage
Denver, CO 80217-5270 PAID
Permit No. 469
Denver,CO
---------------