OPPENHEIMER INSURED MUNICIPAL FUND
Supplement dated May 20, 1998 to the
Prospectus dated January 26, 1998
The Prospectus is changed as follows effective June 1, 1998:
1. Footnote number 1 under the table entitled "Shareholder Transaction Expenses"
on page 3 is modified to read as follows:
(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 18 calendar
months from the end of the calendar month during which you purchased those
shares. See "How to Buy Shares -- Buying Class A Shares," below.
2. The second sentence of the paragraph entitled "Class A Shares" in the section
entitled "How to Buy Shares-Classes of Shares" on page 28 is modified to read as
follows:
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 18 months
of buying them, you may pay a contingent deferred sales charge, described
below.
3. The first and second sentences of the second paragraph of the section
entitled "Buying Class A Shares-Class A Contingent Deferred Sales Charge" on
page 33 are modified to read as follows:
If you redeem any Class A shares subject to the contingent deferred sales
charge described above 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 different holding period may apply to shares purchased prior
to June 1, 1998).
4. The second sentence of the third paragraph of the section entitled "Buying
Class A Shares-Class A Contingent Deferred Sales Charge" on page 33 is modified
to read as follows:
(continued)
<PAGE>
However, if the shares acquired by exchange are redeemed within 18 months
of the end of the calendar month of the purchase of the exchanged shares,
the contingent deferred sales charge will apply. (A different holding
period may apply to shares purchased prior to June 1, 1998).
5. The paragraph entitled "Special Arrangements With Dealers" on page 33 is
hereby deleted.
6. The following sub-paragraphs of the section entitled " Waivers of Class A
Sales Charge- Waivers of the Class A Contingent Deferred Sales Charge Sales for
Certain Redemptions"on page 36 are deleted:
o if, at the time of purchase of shares (prior to May 1, 1997) the
dealer agrees 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 (if purchased during the period
May 1, 1997 through December 31, 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)
7. The paragraph entitled "OppenheimerFunds Internet Web Site" in the section
entitled "Special Investor Services" on page 41 is revised as follows:
OppenheimerFunds Internet Web Site. Information about the Fund, including
your account balance, daily share prices, market and Fund portfolio
information, may be obtained by visiting the OppenheimerFunds Internet Web
Site, at the following Internet address:
(continued)
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<PAGE>
http://www.oppenheimerfunds.com. Additionally, certain account
transactions may be requested by any shareholder listed in the
registration on an account as well as by the dealer representative of
record, through a special section of that Web Site. To access that section
of the Web Site, you must first obtain a personal identification number
("PIN") by calling OppenheimerFunds PhoneLink at 1-800-533-3310. If you do
not wish to have Internet account transactions capability for your
account, please call our customer service representatives at
1-800-525-7048. To find out more information about Internet transactions
and procedures, please visit the Web Site.
May 20, 1998 PS0865.008
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<PAGE>
OPPENHEIMER INSURED MUNICIPAL FUND
Supplement dated May 20, 1998 to the
Statement of Additional Information dated January 26, 1998
The Statement of Additional Information is changed as follows effective June 1,
1998:
1. The third sentence of the third paragraph in the section entitled "How To
Exchange Shares" on page 40 is revised as follows:
However, shares of Oppenheimer Money Market Fund, Inc. purchased with the
redemption proceeds of shares of other mutual funds (Other than funds
managed by the Manager or its subsidiaries) redeemed within 30 days prior
to that purchase may subsequently be exchanged for shares of other
Oppenheimer funds without being subject to an initial or contingent
deferred sales charge, whichever is applicable.
2. The third sentence of the fourth paragraph in the section entitled "How To
Exchange Shares" on page 40 is revised to read as follows:
However, if you redeem Class A shares of the Fund that were acquired by
exchange of Class A shares of other Oppenheimer funds purchased subject to
a Class A contingent deferred sales charge within 18 months of the end of
the calendar month of the purchase of the exchanged Class A shares, the
Class A contingent deferred sales charge is imposed on the redeemed shares
(see "Class A Contingent Deferred Sales Charge" in the Prospectus). (A
different holding period may apply to shares purchased prior to June 1,
1998).
May 20, 1998 PX0865.005
<PAGE>
OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
Supplement dated May 20, 1998 to the
Prospectus dated January 26, 1998
This Supplement to the Prospectus replaces the supplement dated April 29, 1998
and changes the prospectus as follows:
1. Effective June 1, 1998, footnote number 1 under the table entitled
"Shareholder Transaction Expenses" on page 3 is modified to read as follows:
(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 18 calendar
months from the end of the calendar month during which you purchased those
shares. See "How to Buy Shares -- Buying Class A Shares," below.
2. The following sentences are added at the end of the paragraph entitled "A
Brief Overview of the Fund - What Does the Fund Invest In?" on page 5:
As a matter of non-fundamental policy, the Fund anticipates that under
normal market circumstances (when the financial markets are not in an
unstable or volatile period), it will maintain a portfolio duration of more
than 4.5 but no more than 8.0. Duration is a volatility measure that
differs from maturity. Portfolio duration is explained in "Investment
Policies and Strategies - What Does the Duration of the Fund's Portfolio
Mean?".
3. The paragraph entitled "A Brief Overview of the Fund - How Risky is the
Fund?" on page 6 is deleted and replaced with the following:
o How Risky is the Fund? All investments carry risks to some degree. The
Fund's investments in Municipal Securities are subject to changes in their
value from a number of factors such as changes in general bond market
movements, the change in value of particular securities because of an event
affecting the issuer, or changes in interest rates. The magnitude of these
fluctuations will often be greater for longer-duration debt securities. See
"Investment Policies and Strategies - What Does the Duration of the Fund's
(continued)
<PAGE>
Portfolio Mean?" These changes affect the value of the Fund's investments
and its price per share. In the OppenheimerFunds spectrum, the Fund is
generally more conservative than high yield bond funds, but more risky than
money market funds. While the Manager tries to reduce risks by seeking to
limit the Fund's duration, by diversifying investments, by carefully
researching securities before they are purchased for the portfolio, and in
some cases by using hedging techniques, there is no guarantee of success in
achieving the Fund's objectives and your shares may be worth more or less
than their original cost when you redeem them. Please refer to "Investment
Risks" starting on page 12 for a more complete discussion.
4. The second paragraph in the section entitled "Investment Objectives and
Policies Investment Policies and Strategies" on page 11 is deleted and replaced
with the following:
Under normal market conditions, at least 80% of the Fund's total assets
will be invested in investment-grade Municipal Securities, with no more
than 20% of the Fund's total assets invested in taxable investments.
However, for temporary defensive purposes, the Fund may invest up to 100%
of its total assets in taxable certificates of deposit and commercial paper
and taxable or tax-exempt money market instruments. The Fund may purchase
Municipal Securities on a "when-issued" basis and may purchase or sell
Municipal Securities on a "delayed delivery" basis.
5. The following paragraphs are inserted immediately preceding the paragraph
entitled "Investment Objectives and Policies - Can the Fund's Investment
Objective and Policies Change?" on page 11:
o What Does the "Duration" of the Fund's Portfolio Mean? The Fund
anticipates that under normal market conditions, it will maintain a
duration of more than 4.5 but not more than 8.0. The Fund measures its
portfolio duration on a "dollar-weighted" basis. Duration refers to the
expected percentage change in the value of a bond resulting from a change
in general interest rates (measured by each 1% change in the rates on U.S.
Treasury securities). For
(continued)
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<PAGE>
example, if a bond has a duration of 3, a 1% increase in general interest
rates would be expected to cause the bond to decline in value by about 3%.
Duration is a measure of portfolio volatility, and is one of the basic
tools used by the Manager in selecting securities for the Fund's portfolio.
The Fund may invest in individual debt securities of any duration.
However, the calculation of a bond's duration (or the duration of the
entire portfolio of bonds, in the case of the Fund) cannot be relied on as
an exact prediction of future volatility. Duration is calculated by using a
number of variables, including a bond's coupon interest payments, final
maturity and call features and assumptions based on the historical call
activity of similar bonds. All other factors being equal, the lower the
stated or coupon rate of interest of a debt security, the longer the
duration of the security; conversely, the higher the stated or coupon rate
of interest of a debt security, the shorter the duration of the security.
In addition, generally securities of longer duration are subject to greater
price fluctuations due to changes in interest rates.
6. The second paragraph in the section entitled "Investment Risks - Interest
Rate Risk" on page 13 is deleted and replaces with the following:
Generally, securities of longer duration are subject to greater price
fluctuations due to changes in interest rates. There are no restrictions
on the duration of individual debt securities in which the Fund may
invest. The Fund will seek to invest in Municipal Securities that, in
the judgment of the Manager, will provide a high level of current income
consistent with the Fund's liquidity requirements and conditions
affecting the Municipal Securities market.
7. Effective June 1, 1998, the second sentence of the paragraph entitled "Class
A Shares" in the section entitled "How to Buy Shares-Classes of Shares" on page
26 is modified to read as follows:
(continued)
-3-
<PAGE>
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 18
months of buying them, you may pay a contingent deferred sales charge,
described below.
8. Effective June 1, 1998, the first and second sentences of the second
paragraph of the section entitled "Buying Class A Shares-Class A Contingent
Deferred Sales Charge on page 31 are modified to read as follows:
If you redeem any Class A shares subject to the contingent deferred
sales charge described above 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 different holding period may apply to shares
purchased prior to June 1, 1998).
9. Effective June 1, 1998, the second sentence of the third paragraph of the
section entitled "Buying Class A Shares-Class A Contingent Deferred Sales
Charge" on page 31 is modified to read as follows:
However, if the shares acquired by exchange are redeemed within 18
months of the end of the calendar month of the purchase of the exchanged
shares, the contingent deferred sales charge will apply. (A different
holding period may apply to shares purchased prior to June 1, 1998).
10. Effective June 1, 1998, the paragraph entitled "Special Arrangements With
Dealers" on page 31 is hereby deleted.
11. Effective June 1, 1998, the following sub-paragraphs of the section entitled
"Waivers of Class A Sales Charge - Waivers of the Class A Contingent Deferred
Sales Charge Sales for Certain Redemptions" on page 34 are deleted:
(continued)
-4-
<PAGE>
o if, at the time of purchase of shares (prior to May 1, 1997) the
dealer agrees 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 (if purchased during the
period May 1, 1997 through December 31, 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)
12. The paragraph entitled "OppenheimerFunds Internet Web Site" in the section
entitled "Special Investor Services" on page 39 is modified as follows:
OppenheimerFunds Internet Web Site. Information about the Fund,
including your account balance, daily share prices, market and Fund
portfolio information, may be obtained by visiting the OppenheimerFunds
Internet Web Site, at the following Internet address:
http://www.oppenheimerfunds.com. Additionally, certain account
transactions may be requested by any shareholder listed in the
registration on an account as well as by the dealer representative of
record, through a special section of that Web Site. To access that
section of the Web Site, you must first obtain a personal identification
number ("PIN") by calling OppenheimerFunds PhoneLink at 1-800-533-3310.
If you do not wish to have Internet account transactions capability for
your account, please call our customer service representatives at
1-800-525-7048. To find out more information about Internet transactions
and procedures, please visit the Web Site.
May 20, 1998 PS0860.009
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<PAGE>
OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
Supplement dated May 20, 1998 to the
Statement of Additional Information dated January 26, 1998
The Statement of Additional Information is changed as follows effective June 1,
1998:
1. The third sentence of the third paragraph in the section entitled "How To
Exchange Shares" on page 39 is revised as follows:
However, shares of Oppenheimer Money Market Fund, Inc. purchased with the
redemption proceeds of shares of other mutual funds (Other than funds
managed by the Manager or its subsidiaries) redeemed within 30 days prior
to that purchase may subsequently be exchanged for shares of other
Oppenheimer funds without being subject to an initial or contingent
deferred sales charge, whichever is applicable.
2. The third sentence of the fourth paragraph in the section entitled "How To
Exchange Shares" on page 39 is revised as follows:
However, if you redeem Class A shares of the Fund that were acquired by
exchange of Class A shares of other Oppenheimer funds purchased subject to
a Class A contingent deferred sales charge within 18 months of the end of
the calendar month of the purchase of the exchanged Class A shares, the
Class A contingent deferred sales charge is imposed on the redeemed shares
(see "Class A Contingent Deferred Sales Charge" in the Prospectus). (A
different holding period may apply to shares purchased prior to June 1,
1998).
May 19, 1998 PX0860.005
