OPPENHEIMER INSURED MUNICIPAL FUND
Supplement dated November 10, 1997 to the
Prospectus dated February 1, 1997
The Prospectus is changed as follows:
1. This supplement replaces the Fund's prospectus supplement dated May 1, 1997.
2. The first footnote under the "Shareholder Transaction Expenses" table on page
3 is replaced with the following:
(1) If you invest $1 million or more in Class A shares, you may have to pay
a sales charge of up to 1% if you sell your shares within 12 calendar
months (18 months for shares purchased prior to May 1, 1997) from the end
of the calendar month during which you purchased those shares. See "How to
Buy Shares Buying Class A Shares", below.
3. The subparagraph captioned "Hedging - Put and Call Options" on page 19 is
deleted and replaced with the following:
The Fund may buy and sell exchange-traded and over-the-counter put and
call options, including index options, securities options, and options on
the other types of futures described in "Futures," above. A call or put may
be purchased only if, after the purchase, the value of all call and put
options held by the Fund will not exceed 5% of the Fund's total assets.
If the Fund sells (that is, writes) a call option, it must be "covered."
That means the Fund must own the security subject to the call while the
call is outstanding, or, for other types of written calls, the Fund must
segregate liquid assets to enable it to satisfy its obligations if the call
is exercised. When the Fund writes a call, it receives cash (called a
premium). The call gives the buyer the ability to buy the investment on
which the call was written from the Fund at the call price during the
period in which the call may be exercised. If the value of the investment
does not rise above the call price, it is likely that the call will lapse
without being exercised, while the Fund keeps the cash premium (and the
-1- (continued)
<PAGE>
investment). Up to 20% of the Fund's total assets may be subject
to calls.
The Fund may buy puts whether or not it holds the underlying
investment in the portfolio. Buying a put on an investment gives the Fund
the right to sell the investment at a set price to a seller of a put on
that investment. If the Fund writes a put, the put must be covered by
segregated liquid assets. The Fund will not write puts if more than 20% of
the Fund's total assets would have to be segregated to cover put options.
4. The second sentence in "Class A Shares" under "Classes of Shares" on page 27
is replaced by the following:
If you purchase Class A shares as part of an investment of at least $1
million in shares of one or more Oppenheimer funds, you will not pay an
initial sales charge, but if you sell any of those shares within 12 months
of buying them (18 months if the shares were purchased prior to May 1,
1997), you may pay a contingent deferred sales charge.
5. The following sentence is added to the end of "Which Class of Shares Should
You Choose? - How Does It Affect Payments To My Broker?" on page 29:
The Distributor may pay additional periodic compensation from its own
resources to securities dealers or financial institutions based upon the
value of shares of the Fund owned by the dealer or financial institution
for its own account or for its customers.
6. In the second paragraph of "Buying Class A Shares - Class A Contingent
Deferred Sales Charge" on page 31, the first sentence is replaced by the
following:
If you redeem any of those shares purchased prior to May 1, 1997, within 18
months of the end of the calendar month of their purchase, a contingent
deferred sales charge (called the "Class A contingent deferred sales
charge") may be deducted from the redemption proceeds. A Class A contingent
deferred sales charge may be deducted from the redemption proceeds of any
of those shares purchased on or after May 1, 1997 that are redeemed within
12 months of the
-2- (continued)
<PAGE>
end of the calendar month of their purchase.
7. The third sentence of the second paragraph of "Reduced Sales Charges for
Class A Share Purchases - Right of Accumulation" on page 32 is replaced by the
following:
The Distributor will add the value, at current offering price, of the
shares you previously purchased and currently own to the value of current
purchases to determine the sales charge rate that applies.
8. The third sub-paragraph in "Waivers of the Class A Contingent Deferred Sales
Charge for Certain Redemptions" on page 34 is replaced by the following:
o if, at the time of purchase of shares (prior to May 1, 1997) the
dealer agreed in writing to accept the dealer's portion of the sales
commission in installments of 1/18th of the commission per month (and no
further commission will be payable if the shares are redeemed within 18
months of purchase);
o if, at the time of purchase of shares (on or after May 1, 1997) the
dealer agrees in writing to accept the dealer's portion of the sales
commission in installments of 1/12th of the commission per month (and no
further commission will be payable if the shares are redeemed within 12
months of purchase);
9. The following sentence is added to the end of the fifth paragraph in
"Distribution and Service Plans for Class B and Class C Shares" on page 37:
If a dealer has a special agreement with the Distributor, the Distributor
will pay the Class B service fee and the asset-based sales charge to the
dealer quarterly in lieu of paying the sales commission and service fee
advance at the time of purchase.
10. The following is added as a new penultimate sentence to the sixth paragraph
of "Distribution and Service Plans for Class B and Class C shares" on page 37:
If a dealer has a special agreement with the Distributor, the Distributor
shall pay the Class C service fee and asset-based sales charge to the
dealer quarterly in lieu
-3- (continued)
<PAGE>
of paying the sales commission and service fee advance at the
time of purchase.
11. The section captioned "Special Investor Services" is revised by adding the
following after the sub-section captioned "PhoneLink" on page 38:
Shareholder Transactions by Fax. Beginning May 30, 1997, requests for
certain account transactions may be sent to the Transfer Agent by fax
(telecopier). Please call 1-800-525-7048 for information about which
transactions are included. Transaction requests submitted by fax are
subject to the same rules and restrictions as written and telephone
requests described in this Prospectus.
November 10, 1997 PS0865.007
-4-
<PAGE>
OPPENHEIMER INSURED MUNICIPAL FUND
Supplement dated November 10, 1997 to the
Statement of Additional Information dated February 1, 1997
The Statement of Additional Information is amended as follows:
The paragraph captioned "When-Issued and Delayed Delivery Transactions" on page
11 is deleted and replaced with the following:
o When-Issued and Delayed Delivery Transactions. As stated in the
Prospectus, the Fund may invest in Municipal Securities on a "when-issued"
or "delayed delivery" basis. Payment for and delivery of the securities
normally occurs within six months of the purchase of municipal bonds and
notes. However, the Fund may, from time to time, purchase municipal
securities whose settlement extends beyond six months and possibly as long
as two years or more beyond trade date. The purchase price and yield are
fixed at the time the buyer enters into the commitment. During the period
between purchase and settlement, no payment is made by the Fund to the
issuer and no interest accrues to the Fund from this investment. However,
the Fund intends to be as fully invested as possible and will not invest in
when-issued securities if its income or net asset value will be materially
adversely affected. At the time the Fund makes the commitment to purchase a
Municipal Security on a when- issued basis, it will record the transaction
on its books and reflect the value of the security in determining its net
asset value. It will also segregate cash or other liquid Municipal
Securities equal in value to the commitment for the when-issued securities.
While when-issued securities may be sold prior to settlement date, the Fund
intends to acquire the securities upon settlement unless a prior sale
appears desirable for investment reasons. There is a risk that the yield
available in the market when delivery occurs may be higher than the yield
on the security acquired.
November 10, 1997 PX0865.004
<PAGE>
OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
Supplement dated November 10, 1997 to the
Prospectus dated February 1, 1997
The Prospectus is changed as follows:
1. This supplement replaces the Fund's prospectus supplement dated May 1, 1997.
2. The first footnote under the "Shareholder Transaction Expenses" table on page
3 is replaced with the following:
(1) If you invest $1 million or more in Class A shares, you may have to pay
a sales charge of up to 1% if you sell your shares within 12 calendar
months (18 months for shares purchased prior to May 1, 1997) from the end
of the calendar month during which you purchased those shares. See "How to
Buy Shares Buying Class A Shares", below.
3. The subparagraph captioned "Hedging - Put and Call Options" on page 17 is
deleted and replaced with the following:
The Fund may buy and sell exchange-traded and over-the-counter put and
call options, including index options, securities options, and options on
the other types of futures described in "Futures," above. A call or put may
be purchased only if, after the purchase, the value of all call and put
options held by the Fund will not exceed 5% of the Fund's total assets.
If the Fund sells (that is, writes) a call option, it must be "covered."
That means the Fund must own the security subject to the call while the
call is outstanding, or, for other types of written calls, the Fund must
segregate liquid assets to enable it to satisfy its obligations if the call
is exercised. When the Fund writes a call, it receives cash (called a
premium). The call gives the buyer the ability to buy the investment on
which the call was written from the Fund at the call price during the
period in which the call may be exercised. If the value of the investment
does not rise above the call price, it is likely that the call will lapse
without being exercised, while the Fund keeps the cash premium (and the
-1- (continued)
<PAGE>
investment). Up to 20% of the Fund's total assets may be subject
to calls.
The Fund may buy puts whether or not it holds the underlying
investment in the portfolio. Buying a put on an investment gives the Fund
the right to sell the investment at a set price to a seller of a put on
that investment. If the Fund writes a put, the put must be covered by
segregated liquid assets. The Fund will not write puts if more than 20% of
the Fund's total assets would have to be segregated to cover put options.
4. The second sentence in "Class A Shares" under "Classes of Shares" on page 25
is replaced by the following:
If you purchase Class A shares as part of an investment of at least $1
million in shares of one or more Oppenheimer funds, you will not pay an
initial sales charge, but if you sell any of those shares within 12 months
of buying them (18 months if the shares were purchased prior to May 1,
1997), you may pay a contingent deferred sales charge.
5. The following sentence is added to the end of "Which Class of Shares Should
You Choose? - How Does It Affect Payments To My Broker?" on page 27:
The Distributor may pay additional periodic compensation from its own
resources to securities dealers or financial institutions based upon the
value of shares of the Fund owned by the dealer or financial institution
for its own account or for its customers.
6. In the second paragraph of "Buying Class A Shares - Class A Contingent
Deferred Sales Charge" on page 29, the first sentence is replaced by the
following:
If you redeem any of those shares purchased prior to May 1, 1997, within 18
months of the end of the calendar month of their purchase, a contingent
deferred sales charge (called the "Class A contingent deferred sales
charge") may be deducted from the redemption proceeds. A Class A contingent
deferred sales charge may be deducted from the redemption proceeds of any
of those shares purchased on or after May 1, 1997 that are redeemed within
12 months of the
-2- (continued)
<PAGE>
end of the calendar month of their purchase.
7. The third sentence of the second paragraph of "Reduced Sales Charges for
Class A Share Purchases - Right of Accumulation" on page 20 is replaced by the
following:
The Distributor will add the value, at current offering price, of the
shares you previously purchased and currently own to the value of current
purchases to determine the sales charge rate that applies.
8. The third sub-paragraph in "Waivers of the Class A Contingent Deferred Sales
Charge for Certain Redemptions" on page 32 is replaced by the following:
o if, at the time of purchase of shares (prior to May 1, 1997) the
dealer agreed in writing to accept the dealer's portion of the sales
commission in installments of 1/18th of the commission per month (and no
further commission will be payable if the shares are redeemed within 18
months of purchase);
o if, at the time of purchase of shares (on or after May 1, 1997) the
dealer agrees in writing to accept the dealer's portion of the sales
commission in installments of 1/12th of the commission per month (and no
further commission will be payable if the shares are redeemed within 12
months of purchase);
9. The following sentence is added to the end of the fifth paragraph in
"Distribution and Service Plans for Class B and Class C Shares" on page 34:
If a dealer has a special agreement with the Distributor, the Distributor
will pay the Class B service fee and the asset-based sales charge to the
dealer quarterly in lieu of paying the sales commission and service fee
advance at the time of purchase.
10. The following is added as a new penultimate sentence to the sixth paragraph
of "Distribution and Service Plans for Class B and Class C shares" on page 34:
If a dealer has a special agreement with the Distributor, the Distributor
shall pay the Class C service fee and asset-based sales charge to the
dealer quarterly in lieu
-3- (continued)
<PAGE>
of paying the sales commission and service fee advance at the
time of purchase.
11. The section captioned "Special Investor Services" is revised by adding the
following after the sub-section captioned "PhoneLink" on page 37:
Shareholder Transactions by Fax. Beginning May 30, 1997, requests for
certain account transactions may be sent to the Transfer Agent by fax
(telecopier). Please call 1-800-525-7048 for information about which
transactions are included. Transaction requests submitted by fax are
subject to the same rules and restrictions as written and telephone
requests described in this Prospectus.
November 10, 1997 PS0860.007
-4-
<PAGE>
OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
Supplement dated November 10, 1997 to the
Statement of Additional Information dated February 1, 1997
The Statement of Additional Information is amended as follows:
The paragraph captioned "When-Issued and Delayed Delivery Transactions" on page
11 is deleted and replaced with the following:
o When-Issued and Delayed Delivery Transactions. As stated in the
Prospectus, the Fund may invest in Municipal Securities on a "when-issued"
or "delayed delivery" basis. Payment for and delivery of the securities
normally occurs within six months of the purchase of municipal bonds and
notes. However, the Fund may, from time to time, purchase municipal
securities whose settlement extends beyond six months and possibly as long
as two years or more beyond trade date. The purchase price and yield are
fixed at the time the buyer enters into the commitment. During the period
between purchase and settlement, no payment is made by the Fund to the
issuer and no interest accrues to the Fund from this investment. However,
the Fund intends to be as fully invested as possible and will not invest in
when-issued securities if its income or net asset value will be materially
adversely affected. At the time the Fund makes the commitment to purchase a
Municipal Security on a when- issued basis, it will record the transaction
on its books and reflect the value of the security in determining its net
asset value. It will also segregate cash or other liquid Municipal
Securities equal in value to the commitment for the when-issued securities.
While when-issued securities may be sold prior to settlement date, the Fund
intends to acquire the securities upon settlement unless a prior sale
appears desirable for investment reasons. There is a risk that the yield
available in the market when delivery occurs may be higher than the yield
on the security acquired.
November 10, 1997 PX0860.004
<PAGE>
