Annual Report September 30, 1999
Oppenheimer
INSURED MUNICIPAL FUND
Oppenheimer Logo
OppenheimerFunds(r)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
ALTHOUGH TOTAL RETURN WAS NEGATIVE, Oppenheimer Insured Municipal Fund continued
to offer positive tax-free yields.
MUNICIPAL BONDS WERE LESS VOLATILE than other
types of fixed income securities such as U.S. Treasury bonds.
The Fund sold 30-year bonds, purchasing 20-year securities without giving up
much yield. In doing so,
THE PORTFOLIO REDUCED ITS VULNERABILITY TO RISING INTEREST RATES.
Contents
1 President's Letter
3 An Interview with your Fund's Manager
7 Fund Performance
12 FINANCIAL STATEMENTS
31 INDEPENDENT AUDITORS' REPORT
32 Federal Income Tax Information
33 Officers and Trustees
AVERAGE ANNUAL TOTAL RETURNS
For the 1-Year Period Ended 9/30/99*
Class A
Without With
Sales Chg. Sales Chg.
- --------------------------------------
-4.76% -9.28%
Class B
Without With
Sales Chg. Sales Chg.
- --------------------------------------
-5.47% -9.98%
Class C
Without With
Sales Chg. Sales Chg.
- --------------------------------------
-5.48% -6.38%
NOT FDIC INSURED
NO BANK GUARANTEE
MAY LOSE VALUE
* See page 10 for further details.
<PAGE>
PRESIDENT'S LETTER
JAMES C. SWAIN
Chairman
Oppenheimer
Insured Municipal Fund
BRIDGET A. MACASKILL
President
Oppenheimer
Insured Municipal Fund
DEAR SHAREHOLDER,
In many ways, the 1999 investment environment has, so far, unfolded as many
expected it would, producing both attractive opportunities and formidable
challenges for investors.
On the economic front, early worries about the effects of global weakness
in the wake of last year's credit and currency crises have abated. Instead, as
many economies around the world begin to strengthen, concerns now center around
whether the U.S. economy may be growing too quickly. Throughout the year,
consumers in the United States have continued to spend and borrow heavily, more
than offsetting any temporary slowdown in the industrial and export sectors.
The economy's strength has not gone unnoticed by the nation's monetary
policymakers. In an effort to ward off emerging inflationary pressures, the
Federal Reserve Board increased short-term interest rates this past summer.
Market reaction to robust economic growth has been mixed. The U.S. bond
market has generally declined, as fixed income investors became increasingly
concerned about the effects of rising interest rates.
In the stock market, the performance of large" capitalization growth
stocks, which has driven the market's advance over the past few years, has begun
to moderate, and many previously out-of-favor value-oriented, mid-cap and
small-cap stocks have rallied. At the same time, a healthy percentage of
actively managed, diversified portfolios have once again begun to outperform
unmanaged stock indices such as Standard & Poor's 500.
1 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
PRESIDENT'S LETTER
At OppenheimerFunds, we applaud the Fed's pre-emptive strike against inflation.
In our view, history has repeatedly demonstrated that most financial assets do
best in a low-inflation environment. What's more, we believe that the move to
higher interest rates should be temporary.
One recent development IS quite troublesome to us however: the increasing
popularity of "day trading" among individuals seeking to make fast money in a
volatile stock market. In our opinion, day trading is not investing, it is
gambling. Experience proves that without extensive research and analysis,
attempting to time short-term price swings is a fool's errand. Instead, we
continue to encourage investors to maintain a long-term perspective that is
measured in years, not days.
Finally, while we remain alert to the potential impact of the Y2K issue, we
are encouraged by the progress made in addressing the matter. At
OppenheimerFunds, our shareholder accounting systems are already Y2K compliant,
and we have successfully participated in all required industrywide tests. We
intend to continue retesting our systems in order to help further protect
against any potential problems. After all, whether in our computer accounting
systems or the financial markets, managing risk is an important part of what
makes OppenheimerFunds THE RIGHT WAY TO INVEST.
Sincerely,
/s/James C. Swain /s/Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
October 21, 1999
2 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER1
Q
HOW DID OPPENHEIMER INSURED MUNICIPAL FUND PERFORM DURING THE ONE-YEAR PERIOD
THAT ENDED SEPTEMBER 30, 1999?
A. The rising interest-rate environment caused bond prices to fall during much
of the one-year period. As a result, the total return for most fixed income
securities was low or even negative during the period. Oppenheimer Insured
Municipal Fund's total return was negative.
On a tax-free yield basis, the Fund's tax-free yield, at 4.88%, was quite
attractive in relation to comparable U.S. Treasury securities. Indeed, for
investors in the top federal tax bracket, that works out to a taxable equivalent
yield of 8.08%. That type of taxable return would be very difficult to achieve
without taking substantial credit risk. Yet, during the period, the municipal
bonds held in Oppenheimer Insured Municipal Fund's portfolio had an average
credit quality of AAA.
HOW DID MUNICIPAL BONDS PERFORM COMPARED TO U.S. TREASURY BONDS DURING THE
PERIOD?
In stark contrast to the volatile prices of U.S. Treasury securities,
municipal bonds were remarkably stable throughout the one-year reporting period.
Last fall, global economic uncertainty triggered a "flight to quality" by U.S.
and foreign investors. This created unprecedented demand for U.S. Treasury
securities, driving their prices up and their yields down. However, because
municipal bonds do not provide tax advantages to foreign investors, munis did
not benefit to the same extent.
1. Effective November 1, 1999, Christian Smith became the Portfolio Manager
of the Fund.
3 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER1
"MUNICIPAL BONDS ARE EXTREMELY ATTRACTIVE IN RELATION TO U.S. TREASURY BONDS,
YIELDING AS MUCH AS 95% OF A TAXABLE SECURITY."
In 1999, the situation completely reversed. As the global economy rebounded,
investors regained their confidence and sold their Treasury bonds in order to
return to financial assets such as stocks. Meanwhile, the municipal market
maintained its value.
Unlike U.S. Treasury bonds, the most liquid market in the world, municipal bond
prices are strongly influenced by supply factors. During the fiscal year,
municipalities reduced their issuance of new bonds due to strong local economies
that generated enough tax revenues to fund projects. This reduced supply was a
positive factor for the municipal bond market.
WHAT OTHER FACTORS AFFECTED THE FUND'S PERFORMANCE?
By late summer, municipal bond prices had appreciated handsomely in relation to
U.S. Treasury bonds. Simultaneously, corporate bond prices fell sharply as the
Federal Reserve Board raised short-term interest rates, suggesting that the
economy would slow and diminish corporate credit quality. This caused many
insurance companies, which typically hold large quantities of municipals, to
sell their positions in favor of the unusual opportunity in the corporate
market. This had a negative impact on the Fund.
WHERE DID YOU FIND VALUE IN THE MARKET?
The "yield curve," the relationship between a bond's yield and maturity, offers
pockets of opportunity for investors who have the ability and resources to study
it. During the past fiscal year, we found that 30-year bonds did not pay much
additional yield compared to 20-year bonds. As a result, we sold 30-year
securities and reinvested in 20-year bonds without giving up much income. The
advantage is that the 20-year bond is less sensitive to changes in interest
rates, which is particularly important in a rising interest-rate environment.
4 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
Still, a number of bonds that we purchased when interest rates were lower
declined in value during the year. We took the opportunity to aggressively
generate losses on those bonds in order to protect the portfolio from being
taxed on any capital gains.
WHAT OTHER MANAGEMENT STRATEGIES HAVE YOU UTILIZED?
We have avoided discounted bonds that pay low coupons. These bonds tend to
perform poorly in a rising interest-rate environment. In addition, we have been
selling high quality California bonds to brokerage firms at higher-than-average
prices because of strong demand from retail customers. We invested the proceeds
into other positions offering very attractive tax-exempt yields.
WHAT IS YOUR OUTLOOK FOR THE FUND OVER THE COMING MONTHS?
Municipal bonds continue to be extremely attractive in relation to U.S. Treasury
bonds. In fact, municipal bonds are yielding as much as 95% of a taxable
security. As we have seen during the past year, municipal bonds also tend to be
less volatile than other types of fixed income investments.
AVERAGE ANNUAL TOTAL RETURNS
For the Periods Ended 9/30/99(2)
Class A
1-year 5-year 10-year
- -------------------------
- -9.28% 4.92% 6.15%
Class B Since
1-year 5-year Inception
- -------------------------
- -9.98% 4.81% 3.96%
Class C Since
1-year 5-year Inception
- -------------------------
- -6.38% N/A 4.32%
5 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
Furthermore, the national economy remains very strong, which should help reduce
the risk of potential credit downgrades in the sector. Whatever the coming
months may hold for the economy and the municipal bond market, we will continue
to conduct thorough analysis in choosing positions for the portfolio, making
Oppenheimer Insured Municipal Fund an important part of THE RIGHT WAY TO INVEST.
TOP 10 POSITIONS BY STATE(5)
- ----------------------------------------------------------
Texas 19.3%
- ----------------------------------------------------------
Illinois 13.3
- ----------------------------------------------------------
Pennsylvania 10.1
- ----------------------------------------------------------
New York 8.1
- ----------------------------------------------------------
Washington 4.4
- ----------------------------------------------------------
District of Columbia 4.3
- ----------------------------------------------------------
Indiana 4.3
- ----------------------------------------------------------
Ohio 4.1
- ----------------------------------------------------------
Colorado 4.0
- ----------------------------------------------------------
California 3.9
- ----------------------------------------------------------
CREDIT ALLOCATION(3)
[PIE CHART]
o -AAA 81.6%
o -AA 16.5
o -A 1.9
- --------------------
STANDARDIZED YIELDS(4)
For the 30 Days Ended 9/30/99
- --------------------
Class A 4.88%
- --------------------
Class B 4.35%
- --------------------
Class C 4.35%
3. Portfolio data is subject to change. Percentages are as of September 30,
1999, and are dollar-weighted based on invested assets. Securities rated by any
rating organization are included in the equivalent Standard & Poor's rating
category. Average credit quality and allocation include rated securities and
those not rated by a national rating organization (currently 4.80% of total
investments) but which the ratings given above have been assigned by the Manager
for internal purposes as being comparable, in the Manager's judgment, to
securities rated by a rating agency in the same category.
4. Standardized yield is based on net investment income for the 30-day period
ended September 30, 1999. Falling share prices will tend to artificially raise
yields.
5. Portfolio data is subject to change. Percentages are as of September 30,
1999, and are based on total market value of investments.
6 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
FUND PERFORMANCE
HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION, BY THE MANAGER, OF THE FUND'S
PERFORMANCE DURING ITS FISCAL YEAR ENDED SEPTEMBER 30, 1999, FOLLOWED BY A
GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF PERFORMANCE. For the Fund's fiscal year
that ended September 30, 1999, Oppenheimer Insured Municipal Fund produced a
negative total return. However, the Fund's tax-free yield was positive. During
the period, we avoided discounted bonds that pay low coupons. We also sold
30-year securities and reinvested in 20-year bonds without giving up much
income. The advantage is that 20-year bonds are less sensitive to changes in
interest rates, which is particularly important in a rising interest-rate
environment. The Fund's portfolio holdings, allocations and strategies are
subject to change.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until September 30, 1999. In the case of Class A shares, performance
is measured over a 10-year period. In the case of Class B shares, performance is
measured from inception of the class on May 3, 1993. In the case of Class C
shares, performance is measured from inception of the class on August 29, 1995.
The Fund's performance reflects the deduction of the maximum initial sales
charge on Class A shares, the applicable contingent deferred sales charge on
Class B and Class C shares, and reinvestments of all dividends and capital gains
distributions.
The Fund's performance is compared to the performance of that of the
Lehman Brothers Municipal Bond Index, an unmanaged index of a broad range of
investment grade municipal bonds that is widely regarded as a measure of the
performance of the general municipal bond market. Index performance reflects the
reinvestment of dividends but does not consider the effect of capital gains or
transaction costs, and none of the data in the graphs that follow shows the
effect of taxes. The Fund's performance reflects the effects of Fund business
and operating expenses. While index comparisons may be useful to provide a
benchmark for the Fund's performance, it must be noted that the Fund's
investments are not limited to the securities in the index.
7 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
FUND PERFORMANCE
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Insured Municipal Fund (Class A),
and Lehman Brothers Municipal Bond Index
Oppenheimer Lehman
---------- ------
9.30.89 9525 10000
9.30.90 10078 10680
9.30.91 11396 12088
9.30.92 12620 13351
9.30.93 14389 15053
9.30.94 13608 14685
9.30.95 15009 16328
9.30.96 16009 17314
9.30.97 17491 18875
9.30.98 19066 20520
9.30.99 18160 20377
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 9/30/99(1)
1-YEAR -9.28% 5-YEAR 4.92% 10-YEAR 6.15%
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Insured Municipal Fund (Class B),
and Lehman Brothers Municipal Bond Index
Oppenheimer Lehman
---------- ------
5.3.93 10000 10000
9.30.93 10604 10570
9.30.94 9949 10312
9.30.95 10892 11465
9.30.96 11531 12157
9.30.97 12502 13254
9.30.98 13524 14409
9.30.99 12785 14308
AVERAGE ANNUAL TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 9/30/99(1)
1-YEAR -9.98% 5-YEAR 4.81% LIFE 3.96%
8 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Insured Municipal Fund (Class C),
and Lehman Brothers Municipal Bond Index
Oppenheimer Lehman
---------- ------
8.29.95 10000 10000
9.30.95 10130 10063
9.30.96 10714 10671
9.30.97 11622 11633
9.30.98 12573 12647
9.30.99 11884 12559
AVERAGE ANNUAL TOTAL RETURN OF CLASS C SHARES OF THE FUND AT 9/30/99(1)
1-YEAR -6.38% LIFE 4.32%
The performance information for the Lehman Brothers Municipal Bond Index in
the graphs begins on 9/30/89 for Class A, 4/30/93 for Class B and 8/31/95 for
Class C.
1. See page 10 for further details.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
9 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
NOTES
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. THE FUND'S
PERFORMANCE MAY FROM TIME TO TIME BE SUBJECT TO SUBSTANTIAL SHORT-TERM CHANGES,
PARTICULARLY DURING PERIODS OF MARKET OR INTEREST RATE VOLATILITY. FOR UPDATES
ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR, CALL US AT
1.800.525.7048 OR VISIT OUR WEBSITE, WWW.OPPENHEIMERFUNDS.COM.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown.
CLASS A shares were first publicly offered on 11/11/86. The average annual total
returns are shown net of the applicable 4.75% maximum initial sales charge. The
Fund's maximum sales charge for Class A shares was lower prior to 2/1/93, so
actual performance may have been higher.
CLASS B shares of the Fund were first publicly offered on 5/3/93. The average
annual total returns are shown net of the applicable 5% and 2% contingent
deferred sales charges, respectively, for the one- and five-year periods.
Because Class B shares convert to Class A shares 72 months after purchase, the
"life-of-class" return for Class B uses Class A performance for the period after
conversion. Class B shares are subject to an annual 0.75% asset-based sales
charge.
CLASS C shares of the Fund were first publicly offered on 8/29/95. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
An explanation of the different performance calculations is in the Fund's
prospectus.
10 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
FINANCIALS
11 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS September 30, 1999
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--99.3%
- -----------------------------------------------------------------------------------------------------------------
ALABAMA--1.8%
Lauderdale Cnty. & Florence AL Health Care
Authority RB, Coffee Health Group, Series A,
5.25%, 7/1/19 NR/AAA/AAA $2,500,000 $2,315,800
- -----------------------------------------------------------------------------------------------------------------
ALASKA--3.3%
AK Export & IDAU RB, Snettisham Hydroelectric
Power, First Series, AMBAC Insured, 5.50%, 1/1/16 NR/AAA/AAA 1,145,000 1,098,009
- -----------------------------------------------------------------------------------------------------------------
AK Export & IDAU RB, Snettisham Hydroelectric
Power, First Series, AMBAC Insured, 5.50%, 1/1/17 NR/AAA/AAA 1,265,000 1,203,331
- -----------------------------------------------------------------------------------------------------------------
AK Student Loan Corp. RRB, Series A, AMBAC
Insured, 5.30%, 7/1/15 Aaa/AAA/AAA 2,165,000 2,044,388
-----------
4,345,728
- -----------------------------------------------------------------------------------------------------------------
ARIZONA--0.9%
AZ Educational LMC RRB, Series B, 7%, 3/1/05 Aa2/NR 1,090,000 1,141,099
- -----------------------------------------------------------------------------------------------------------------
CALIFORNIA--3.9%
CA SCDAU Revenue Refunding COP, Cedars-Sinai
Medical Center, MBIA Insured, 6.50%, 8/1/12 Aaa/AAA 1,000,000 1,103,060
- -----------------------------------------------------------------------------------------------------------------
Pomona, CA USD GORB, Series A, MBIA Insured,
6.15%, 8/1/15 Aaa/AAA 1,000,000 1,073,150
- -----------------------------------------------------------------------------------------------------------------
Redding, CA Electric System Revenue COP,
MBIA Insured, Inverse Floater, 9.004%, 7/8/22(1) Aaa/AAA 1,500,000 1,725,000
- -----------------------------------------------------------------------------------------------------------------
Sacramento, CA MUD Electric RRB, Series G, MBIA
Insured, 6.50%, 9/1/13 Aaa/AAA/A 1,000,000 1,130,250
-----------
5,031,460
- -----------------------------------------------------------------------------------------------------------------
COLORADO--4.0%
CO Housing FAU MH RB, Series B-2, 5.90%, 10/1/38 Aa2/AA+ 1,000,000 989,450
- -----------------------------------------------------------------------------------------------------------------
CO Housing FAU SFM CAP RB, Series C-1, Zero Coupon,
5.63%, 11/1/29(2) Aa2/NR 5,000,000 834,550
- -----------------------------------------------------------------------------------------------------------------
CO Housing FAU SFM RB, Sr. Lien, Series C-2, 6.875%,
11/1/28 Aa2/NR 2,000,000 2,144,180
- -----------------------------------------------------------------------------------------------------------------
Douglas & Elbert Cntys., CO SDI No. RE-1,
Improvement GOB, Series A, MBIA Insured,
8%, 12/15/09 Aaa/AAA 1,000,000 1,237,010
-----------
5,205,190
- -----------------------------------------------------------------------------------------------------------------
CONNECTICUT--3.0%
CT Housing FAU RB, Series A, Subseries A-2, 6.20%,
11/15/22 Aa2/AA 855,000 872,656
- -----------------------------------------------------------------------------------------------------------------
CT Housing FAU RRB, Series A, Subseries D-2, 6.20%,
11/15/27 Aa2/AA 995,000 1,012,850
</TABLE>
12 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONNECTICUT Continued
CT Housing FAU RRB, Subseries C-2, 5.85%,
11/15/28 Aa2/AA $1,980,000 $ 1,955,290
-----------
3,840,796
- -----------------------------------------------------------------------------------------------------------------
FLORIDA--3.3%
FL HFA MH RRB, Series C, 6%, 8/1/11 NR/AAA 1,000,000 1,042,350
- -----------------------------------------------------------------------------------------------------------------
Lee Cnty., FL Hospital Board of Directors RRB,
MBIA Insured, Inverse Floater, 8.887%, 3/26/20(1) Aaa/AAA 1,000,000 1,102,500
- -----------------------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL Aviation RB, Series C,
MBIA Insured, 5.25%, 10/1/18 NR/AAA/AAA 1,000,000 924,710
- -----------------------------------------------------------------------------------------------------------------
Miami-Dade Cnty., FL SPO RRB, Sub. Lien, Series A,
MBIA Insured, Zero Coupon, 5.45%, 10/1/15(2) Aaa/AAA/AAA 3,000,000 1,194,150
-----------
4,263,710
GEORGIA--2.5%
Dalton, GA DAU RB, MBIA Insured, 5.50%, 8/15/26 Aaa/AAA/AAA 1,000,000 966,590
- -----------------------------------------------------------------------------------------------------------------
GA MEAU RRB, Project One, Sub. Lien, Series A,
AMBAC Insured, 5.375%, 1/1/13 Aaa/AAA/AAA 2,285,000 2,259,225
----------
3,225,815
- -----------------------------------------------------------------------------------------------------------------
ILLINOIS--13.2%
Chicago, IL BOE GOB, Chicago School Reform
Project, Series A, AMBAC Insured, 5.25%, 12/1/22 Aaa/AAA/AAA 2,000,000 1,833,240
- -----------------------------------------------------------------------------------------------------------------
Chicago, IL GOB, Inverse Floater, 7.255%, 1/1/28(1,3) NR/AAA 5,000,000 4,040,800
- -----------------------------------------------------------------------------------------------------------------
Chicago, IL O'Hare International Airport RRB,
General Airport, Second Lien, Series A,
AMBAC Insured, 5.50%, 1/1/16 Aaa/AAA/AAA 2,500,000 2,417,675
- -----------------------------------------------------------------------------------------------------------------
Chicago, IL SFM RB, Series B, 6.95%, 9/1/28 Aaa/NR 1,890,000 2,005,970
- -----------------------------------------------------------------------------------------------------------------
Cook Cnty., IL Community College District No. 508
Chicago COP, FGIC Insured, 8.75%, 1/1/05 Aaa/AAA/AAA 500,000 590,935
- -----------------------------------------------------------------------------------------------------------------
Cook Cnty., IL Community College District No. 508
Lease COP, Series C, MBIA Insured, 7.70%, 12/1/07 Aaa/AAA 1,500,000 1,776,165
- -----------------------------------------------------------------------------------------------------------------
Cook Cnty., IL SDI No. 99 Cicero GOB, FGIC Insured,
8.50%, 12/1/05 Aaa/NR 1,170,000 1,399,718
- -----------------------------------------------------------------------------------------------------------------
IL Development FAU Retirement Housing RB,
Regency Park, Escrowed to Maturity, Series A,
Zero Coupon, 5.85%, 7/15/23(2) NR/AAA 8,750,000 1,817,900
- -----------------------------------------------------------------------------------------------------------------
IL HFAU RRB, Methodist Medical Center,
MBIA Insured, 5.125%, 11/15/18 Aaa/AAA/AAA 1,500,000 1,354,125
-----------
17,236,528
</TABLE>
13 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INDIANA--4.2%
Hamilton Southeastern, IN Consolidated School
Building Corp. RRB, First Mtg., AMBAC Insured,
7%, 7/1/11 Aaa/AAA/AAA $ 500,000 $ 524,975
- -----------------------------------------------------------------------------------------------------------------
IN HFFAU Hospital RB, Clarian Health Partners, Inc.,
Series A, 6%, 2/15/21 Aa3/AA/AA 2,000,000 1,993,860
- -----------------------------------------------------------------------------------------------------------------
IN Office Building Commission Capital Complex RB,
Series B, MBIA Insured, 7.40%, 7/1/15 Aaa/AAA 2,500,000 2,993,275
-----------
5,512,110
- -----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS--3.7%
MA Health & Educational FA RB, Mt. Auburn
Hospital Issue, Series B-1, MBIA Insured, 6.25%, 8/15/14 Aaa/AAA 1,000,000 1,060,860
- -----------------------------------------------------------------------------------------------------------------
MA HFA RB, Series A, AMBAC Insured, 6.60%, 7/1/14 Aaa/AAA/AAA 1,905,000 1,998,688
- -----------------------------------------------------------------------------------------------------------------
MA POAU RB, Series E, FGIC-TCRS Insured, 5%, 7/1/28 Aaa/AAA 2,000,000 1,718,880
-----------
4,778,428
- -----------------------------------------------------------------------------------------------------------------
NEVADA--1.6%
Clark Cnty., NV Passenger Facility Charge RB,
Las Vegas McCarran International Airport Project,
Series B, MBIA Insured, 6.50%, 7/1/12 Aaa/AAA 2,000,000 2,119,760
- -----------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE--0.4%
NH Turnpike System RRB, Series A, FGIC Insured,
6.75%, 11/1/11 Aaa/AAA/AAA 500,000 552,840
- -----------------------------------------------------------------------------------------------------------------
NEW YORK--8.1%
L.I., NY PAU Electric System RRB,
Series A, 5%, 12/1/18 Aaa/AAA/AAA 4,000,000 3,621,600
- -----------------------------------------------------------------------------------------------------------------
NYC MWFAU WSS RRB, Series D, FGIC Insured,
4.75%, 6/15/25 Aaa/AAA/AAA 2,000,000 1,689,280
- -----------------------------------------------------------------------------------------------------------------
NYC RB, Series J, MBIA-IBC Insured, 5%, 5/15/17 Aaa/AAA/AAA 3,000,000 2,723,190
- -----------------------------------------------------------------------------------------------------------------
NYS United Nations Development Corp. RRB,
Sr. Lien, Series B, 5.60%, 7/1/26 A2/NR/A 2,590,000 2,487,514
-----------
10,521,584
- -----------------------------------------------------------------------------------------------------------------
OHIO--4.1%
Cleveland, OH PPS RRB, First Mtg., Subseries 1,
MBIA Insured, 5.125%, 11/15/18 Aaa/AAA 3,000,000 2,795,850
- -----------------------------------------------------------------------------------------------------------------
OH HFA Mtg. RB, 6.10%, 9/1/28 NR/AAA 1,990,000 1,989,881
- -----------------------------------------------------------------------------------------------------------------
Streetsboro, OH SDI GOB, AMBAC Insured,
7.125%, 12/1/10 Aaa/AAA/AAA 500,000 572,670
-----------
5,358,401
</TABLE>
14 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OKLAHOMA--1.7%
OK Industrial Authority Health Systems RB,
Baptist Medical Center, Series C, AMBAC Insured,
7%, 8/15/05 Aaa/AAA/AAA $2,000,000 $ 2,219,020
- -----------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--10.0%
Berks Cnty., PA GOB, Prerefunded, FGIC Insured,
Inverse Floater, 8.63%, 11/10/20(1) Aaa/AAA/AAA 1,000,000 1,147,500
- -----------------------------------------------------------------------------------------------------------------
Chester Cnty., PA Education & HFAU RRB,
Series B, 5.375%, 5/15/27 A1/AA-/AA- 3,575,000 3,210,922
- -----------------------------------------------------------------------------------------------------------------
Delaware Valley, PA Regional FAU Local
Government RB, Series B, AMBAC Insured,
5.70%, 7/1/27 Aaa/AAA 2,000,000 1,998,420
- -----------------------------------------------------------------------------------------------------------------
PA HEAA Student Loan RB, Series B,
AMBAC Insured, Inverse Floater, 8.209%, 3/1/22(1) Aaa/AAA/AAA 1,250,000 1,328,125
- -----------------------------------------------------------------------------------------------------------------
PA HEFAU RRB, Thomas Jefferson University,
AMBAC Insured, 5%, 7/1/19 Aaa/AAA 2,000,000 1,807,680
- -----------------------------------------------------------------------------------------------------------------
Philadelphia, PA Airport RB, Series 387A,
Inverse Floater, 8.303%, 6/15/12(1) NR/NR 1,565,000 1,519,458
- -----------------------------------------------------------------------------------------------------------------
Philadelphia, PA Regional POAU Lease RB,
MBIA Insured, Inverse Floater, 8.50%, 9/1/20(1) Aaa/AAA 1,900,000 1,985,500
-----------
12,997,605
- -----------------------------------------------------------------------------------------------------------------
TEXAS--19.2%
Cedar Hill, TX ISD CAP RRB, Zero Coupon,
6.10%, 8/15/11(2) Aaa/NR/AAA 1,585,000 836,991
- -----------------------------------------------------------------------------------------------------------------
Fort Worth, TX Higher Education Finance Corp. RB,
AMBAC-TCRS Insured, 5%, 3/15/27 Aaa/AAA 3,000,000 2,614,860
- -----------------------------------------------------------------------------------------------------------------
Grand Prairie, TX HFDC RRB, Dallas/Ft. Worth Medical
Center Project, AMBAC Insured, 6.875%, 11/1/10 Aaa/AAA/AAA 1,800,000 1,984,662
- -----------------------------------------------------------------------------------------------------------------
Harris Cnty., TX Hospital District RRB, AMBAC
Insured, 7.40%, 2/15/10 Aaa/AAA/AAA 2,000,000 2,296,880
- -----------------------------------------------------------------------------------------------------------------
Harris Cnty., TX Houston Sports Authority Special
CAP RB, Jr. Lien, Series B, MBIA Insured,
Zero Coupon, 5.33%, 11/15/13(2) Aaa/AAA/AAA 4,360,000 1,946,914
- -----------------------------------------------------------------------------------------------------------------
Houston, TX Airport System RRB, Sub. Lien,
Series B, FGIC Insured, 5%, 7/1/17 Aaa/AAA/AAA 2,750,000 2,458,802
- -----------------------------------------------------------------------------------------------------------------
Lower Neches Valley, TX IDAU Corp. RRB,
Mobil Oil Refining Corp., 5.55%, 3/1/33 Aa2/AA 3,000,000 2,812,170
- -----------------------------------------------------------------------------------------------------------------
Lower Neches Valley, TX IDAU Corp. Sewer Facilities
RB, Mobil Oil Refining Corp. Project, 6.40%, 3/1/30 Aa2/AA 1,000,000 1,031,150
- -----------------------------------------------------------------------------------------------------------------
Rio Grande Valley, TX HFDC Retirement Facilities RB,
Golden Palms, Series B, MBIA Insured, 6.40%, 8/1/12 Aaa/AAA 2,000,000 2,120,800
- -----------------------------------------------------------------------------------------------------------------
Tarrant Cnty., TX HFDC RB, Texas Health Resources
System, Series A, MBIA Insured, 5.75%, 2/15/11 Aaa/AAA/AAA 2,130,000 2,189,321
</TABLE>
15 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
RATINGS:
MOODY'S/
S&P/FITCH FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TEXAS Continued
TX A&M RB, Series 556, Inverse Floater,
7.252%, 5/15/20(1) NR/NR $5,000,000 $ 4,682,000
-----------
24,974,550
- -----------------------------------------------------------------------------------------------------------------
WASHINGTON--4.3%
Chelan Cnty., WA Public Utilities District No. 1 RB,
Chelan Hydroelectric Conservation System-Division III,
Series A, 5.60%, 7/1/32 Aa3/AA/AA- 2,000,000 1,927,360
- -----------------------------------------------------------------------------------------------------------------
Tacoma, WA Electric Systems RB, Prerefunded,
AMBAC Insured, Inverse Floater, 9.043%, 1/2/15(1) Aaa/AAA/AAA 1,000,000 1,088,750
- -----------------------------------------------------------------------------------------------------------------
WA PP Supply System RRB, Nuclear Project No. 1,
Series A, 5%, 7/1/13 Aa1/AA-/AA- 1,500,000 1,404,090
- -----------------------------------------------------------------------------------------------------------------
WA PP Supply System RRB, Nuclear Project No. 2,
Series A, FGIC Insured, Zero Coupon, 5.50%, 7/1/09(2) Aaa/AAA/AAA 2,000,000 1,203,080
-----------
5,623,280
- -----------------------------------------------------------------------------------------------------------------
WEST VIRGINIA--0.7%
WV GOB, Capital Appreciation-Infracture, Series A,
FGIC Insured, Zero Coupon, 5.20%, 11/1/14(2) Aa3/AAA/AAA 2,100,000 912,765
- -----------------------------------------------------------------------------------------------------------------
WISCONSIN--1.1%
WI Health & Educational FA RB, Aurora Medical
Group, Inc. Project, FSA Insured, 6%, 11/15/11 Aaa/AAA/AAA 1,370,000 1,470,764
- -----------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA--4.3%
DC Convention Center Authority Dedicated Tax RB,
Sr. Lien, AMBAC Insured, 4.75%, 10/1/28 Aaa/AAA/AAA 3,000,000 2,464,530
- -----------------------------------------------------------------------------------------------------------------
DC Hospital RRB, Medlantic Healthcare Group,
Series A, MBIA Insured, 5.25%, 8/15/12 Aaa/AAA/AAA 1,000,000 993,360
- -----------------------------------------------------------------------------------------------------------------
DC RRB, Prerefunded, Series A-1, MBIA Insured,
6%, 6/1/11 Aaa/AAA/AAA 100,000 107,242
- -----------------------------------------------------------------------------------------------------------------
DC RRB, Unrefunded Balance, Series A-1,
MBIA Insured, 6%, 6/1/11 Aaa/AAA/AAA 1,900,000 2,008,547
-----------
5,573,679
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $131,990,570) 99.3% 129,220,912
- -----------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.7 888,825
-----------------------------
NET ASSETS 100.0% $130,109,737
-----------------------------
</TABLE>
16 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
FOOTNOTES to statement of investments
To simplify the listings of securities, abbreviations are used per the table
below:
BOE Board of Education
CAP Capital Appreciation
COP Certificates of Participation
DAU Development Authority
FA Facilities Authority
FAU Finance Authority
GOB General Obligation Bonds
GORB General Obligation Refunding Bonds
HEAA Higher Education Assistance Agency
HEFAU Higher Educational Facilities Authority
HFA Housing Finance Agency
HFAU Health Facilities Authority
HFDC Health Facilities Development Corp.
HFFAU Health Facilities Finance Authority
IDAU Industrial Development Authority
ISD Independent School District L.I. Long Island
LMC Loan Marketing Corp.
MEAU Municipal Electric Authority
MH Multifamily Housing
MUD Municipal Utility District
MWFAU Municipal Water Finance Authority
NYC New York City NYS New York State
PAU Power Authority
POAU Port Authority
PP Public Power
PPS Public Power System
RB Revenue Bonds
RRB Revenue Refunding Bonds
SCDAU Statewide Communities Development Authority
SDI School District
SFM Single Family Mtg.
SPO Special Obligations
USD Unified School District
WSS Water & Sewer System
1. Represents the current interest rate for a variable rate bond known as an
"inverse floater" which pays interest at a rate that varies inversely with
short-term interest rates. As interest rates rise, inverse floaters produce less
current income. Their price may be more volatile than the price of a comparable
fixed-rate security. Inverse floaters amount to $18,619,633 or 14.31% of the
Fund's net assets as of September 30, 1999.
2. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
3. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $4,040,800 or 3.11% of the Fund's net
assets as of September 30, 1999.
AS OF SEPTEMBER 30, 1999, SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX
AMOUNT TO $37,548,433 OR 28.86% OF THE FUND'S NET ASSETS.
See accompanying Notes to Financial Statements.
17 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES September 30, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at value (cost $131,990,570)--see accompanying statement $ 129,220,912
- -----------------------------------------------------------------------------------------------------------------
Cash 117,917
- -----------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 1,784,284
Shares of beneficial interest sold 370,513
Other 26,083
------------
Total assets 131,519,709
- -----------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Notes payable to bank (interest rate at 5.975% at September 30, 1999)--Note 6 800,000
Dividends 333,586
Shares of beneficial interest redeemed 124,294
Distribution and service plan fees 80,096
Shareholder reports 43,764
Transfer and shareholder servicing agent fees 12,350
Trustees' compensation 200
Other 15,682
Total liabilities 1,409,972
------------
NET ASSETS $130,109,737
============
- -----------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $ 133,588,693
- -----------------------------------------------------------------------------------------------------------------
Overdistributed net investment income (82,803)
- -----------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (626,495)
- -----------------------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments--Note 3 (2,769,658)
------------
Net assets $130,109,737
============
</TABLE>
18 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$98,030,062 and 5,948,043 shares of beneficial interest outstanding) $16.48
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $17.30
- -----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $26,468,484
and 1,605,517 shares of beneficial interest outstanding) $16.49
- -----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $5,611,191
and 340,547 shares of beneficial interest outstanding) $16.48
</TABLE>
See accompanying Notes to Financial Statements.
19 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS For the Year Ended September 30, 1999
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest $ 7,778,347
- -----------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees--Note 4 601,513
- -----------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 245,096
Class B 285,641
Class C 57,731
- -----------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 118,665
- -----------------------------------------------------------------------------------------------------------------
Shareholder reports 74,074
- -----------------------------------------------------------------------------------------------------------------
Registration and filing fees 39,275
- -----------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 22,200
- -----------------------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 12,876
- -----------------------------------------------------------------------------------------------------------------
Accounting service fees--Note 4 12,000
- -----------------------------------------------------------------------------------------------------------------
Trustees' compensation 3,984
- -----------------------------------------------------------------------------------------------------------------
Other 14,801
------------
Total expenses 1,487,856
Less expenses paid indirectly--Note 1 (15,619)
------------
Net expenses 1,472,237
- -----------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 6,306,110
- -----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments (1,138,896)
Closing of futures contracts 786,788
------------
Net realized loss (352,108)
- -----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (12,885,535)
Net realized and unrealized loss (13,237,643)
- -----------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (6,931,533)
============
</TABLE>
See accompanying Notes to Financial Statements.
20 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED SEPTEMBER 30, 1999 1998
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 6,306,110 $ 5,368,369
- -----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (352,108) 1,181,782
- -----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (12,885,535) 3,993,214
--------------------------------
Net increase (decrease) in net assets resulting from operations (6,931,533) 10,543,365
- -----------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment
income:
Class A (4,716,753) (4,498,622)
Class B (1,078,468) (921,805)
Class C (218,878) (140,882)
- -----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (1,141,094) (646,115)
Class B (310,557) (149,337)
Class C (60,365) (19,416)
- -----------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 6,192,573 8,417,042
Class B 2,067,306 6,601,026
Class C 1,305,323 2,237,718
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) (4,892,446) 21,422,974
- -----------------------------------------------------------------------------------------------------------------
Beginning of period 135,002,183 113,579,209
--------------------------------
End of period (including overdistributed net investment
income of $82,803 and $297,350, respectively) $130,109,737 $135,002,183
================================
</TABLE>
See accompanying Notes to Financial Statements.
21 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
CLASS A YEAR ENDED SEPTEMBER 30, 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $18.31 $17.72 $17.07 $16.86 $16.14
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .84 .80 .91 .90 .90
Net realized and unrealized gain (loss) (1.67) .75 .63 .20 .71
------------------------------------------------------------
Total income (loss) from
investment operations (.83) 1.55 1.54 1.10 1.61
- -----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.80) (.84) (.89) (.89) (.89)
Distributions from net realized gain (.20) (.12) -- -- --
------------------------------------------------------------
Total dividends and distributions
to shareholders (1.00) (.96) (.89) (.89) (.89)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.48 $18.31 $17.72 $17.07 $16.86
============================================================
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1) (4.76)% 9.01% 9.25% 6.67% 10.29%
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 98,030 $102,687 $91,051 $83,516 $76,691
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $103,527 $ 96,458 $86,511 $81,233 $70,650
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 4.77% 4.49% 5.25% 5.27% 5.52%
Expenses 0.89% 0.89%(3) 0.95%(3) 1.02%(3) 0.95%(3)
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 108% 73% 77% 93% 58%
</TABLE>
1. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
2. Annualized for periods of less than one full year.
3. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended September 30, 1999 were $153,837,549 and $147,711,836, respectively.
See accompanying Notes to Financial Statements.
22 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
CLASS B YEAR ENDED SEPTEMBER 30, 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $18.32 $17.73 $17.08 $16.87 $16.15
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .71 .67 .76 .77 .78
Net realized and unrealized gain (loss) (1.67) .74 .65 .20 .71
------------------------------------------------------------
Total income (loss) from
investment operations (.96) 1.41 1.41 .97 1.49
- -----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.67) (.70) (.76) (.76) (.77)
Distributions from net realized gain (.20) (.12) -- -- --
------------------------------------------------------------
Total dividends and distributions
to shareholders (.87) (.82) (.76) (.76) (.77)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.49 $18.32 $17.73 $17.08 $16.87
============================================================
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1) (5.47)% 8.18% 8.43% 5.87% 9.47%
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $26,468 $27,392 $19,974 $15,983 $13,341
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $28,562 $23,817 $17,309 $14,822 $11,987
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 4.00% 3.76% 4.48% 4.50% 4.75%
Expenses 1.65% 1.64%(3) 1.71%(3) 1.77%(3) 1.71%(3)
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 108% 73% 77% 93% 58%
</TABLE>
1. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
2. Annualized for periods of less than one full year.
3. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended September 30, 1999, were $153,837,549 and $147,711,836, respectively.
See accompanying Notes to Financial Statements.
23 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
CLASS C YEAR ENDED SEPTEMBER 30, 1999 1998 1997(5) 1996 1995(6)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $18.31 $17.72 $17.06 $16.86 $16.72
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .71 .70 .76 .75 .08
Net realized and unrealized gain (loss) (1.67) .71 .65 .21 .14
------------------------------------------------------------
Total income (loss) from
investment operations (.96) 1.41 1.41 .96 .22
- -----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.67) (.70) (.75) (.76) (.08)
Distributions from net realized gain (.20) (.12) -- -- --
------------------------------------------------------------
Total dividends and distributions
to shareholders (.87) (.82) (.75) (.76) (.08)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.48 $18.31 $17.72 $17.06 $16.86
============================================================
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1) (5.48)% 8.18% 8.48% 5.77% 1.30%
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $5,611 $4,923 $2,554 $924 $211
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $5,775 $3,661 $1,720 $618 $ 1
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 4.01% 3.82% 4.45% 4.38% 4.89%
Expenses 1.65% 1.64%(3) 1.72%(3) 1.81%(3) 1.07%(3)
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 108% 73% 77% 93% 58%
</TABLE>
1. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
2. Annualized for periods of less than one full year.
3. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended September 30, 1999, were $153,837,549 and $147,711,836, respectively.
5. Per share amounts calculated based on the average shares outstanding during
the period.
6. For the period from August 29, 1995 (inception of offering) to September 30,
1995.
See accompanying Notes to Financial Statements.
24 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Insured Municipal Fund (the Fund) is a separate series of
Oppenheimer Municipal Fund, a diversified, open-end management investment
company registered under the Investment Company Act of 1940, as amended. The
Fund's investment objective is to provide a high level of current income exempt
from Federal income tax. The Fund's investment advisor is OppenheimerFunds, Inc.
(the Manager). The Fund offers Class A, Class B and Class C shares. Class A
shares are sold with a front-end sales charge on investments up to $1 million.
Class B and Class C shares may be subject to a contingent deferred sales charge
(CDSC). All classes of shares have identical rights to earnings, assets and
voting privileges, except that each class has its own expenses directly
attributable to that class and exclusive voting rights with respect to matters
affecting that class. Classes A, B and C have separate distribution and/or
service plans. Class B shares will automatically convert to Class A shares six
years after the date of purchase. The following is a summary of significant
accounting policies consistently followed by the Fund.
- -------------------------------------------------------------------------------
SECURITIES VALUATION. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
the last sale price on the prior trading day. Long-term and short-term
"non-money market" debt securities are valued by a portfolio pricing service
approved by the Board of Trustees. Such securities which cannot be valued by an
approved portfolio pricing service are valued using dealer-supplied valuations
provided the Manager is satisfied that the firm rendering the quotes is reliable
and that the quotes reflect current market value, or are valued under
consistently applied procedures established by the Board of Trustees to
determine fair value in good faith. Short-term "money market type" debt
securities having a remaining maturity of 60 days or less are valued at cost (or
last determined market value) adjusted for amortization to maturity of any
premium or discount. 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 is used.
- -------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), 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.
25 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 to shareholders. Therefore, no federal
income or excise tax provision is required.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain was recorded by
the Fund. The Fund adjusts the classification of distributions to shareholders
to reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended September 30, 1999, amounts have been reclassified to reflect a
decrease in paid-in capital of $28,550, an increase in overdistributed net
investment income of $77,464, and a decrease in accumulated net realized loss on
investments of $106,014.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of trade date. Original
issue discount is accreted and premium is amortized in accordance with federal
income tax requirements. For municipal bonds acquired after April 30, 1993, on
disposition or maturity, taxable ordinary income is recognized to the extent of
the lesser of gain or market discount that would have accrued over the holding
period. Realized gains and losses on investments and unrealized appreciation and
depreciation are determined on an identified cost basis, which is the same basis
used for federal income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
26 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1999 YEAR ENDED SEPTEMBER 30, 1998
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
CLASS A
Sold 1,139,629 $20,168,330 955,728 $17,118,675
Dividends and/or distributions reinvested 246,492 4,359,639 212,388 3,794,412
Redeemed (1,046,047) (18,335,396) (698,348) (12,496,045)
----------------------------------------------------------------------
Net increase 340,074 $6,192,573 469,768 $8,417,042
======================================================================
- -----------------------------------------------------------------------------------------------------------------
CLASS B
Sold 483,752 $8,559,831 543,004 $9,724,208
Dividends and/or distributions reinvested 50,736 898,692 39,547 706,671
Redeemed (424,380) (7,391,217) (213,910) (3,829,853)
----------------------------------------------------------------------
Net increase 110,108 $2,067,306 368,641 $6,601,026
======================================================================
- -----------------------------------------------------------------------------------------------------------------
CLASS C
Sold 140,475 $2,501,020 156,606 $2,808,699
Dividends and/or distributions reinvested 11,966 211,869 7,178 128,230
Redeemed (80,811) (1,407,566) (39,038) (699,211)
----------------------------------------------------------------------
Net increase 71,630 $1,305,323 124,746 $2,237,718
======================================================================
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of September 30, 1999, net unrealized depreciation on securities of
$2,769,658 was composed of gross appreciation of $2,457,956, and gross
depreciation of $5,227,614.
27 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
- --------------------------------------------------------------------------------
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES.
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.45% of the first
$100 million of average annual net assets, 0.40% of the next $150 million,
0.375% of the next $250 million and 0.35% of average annual net assets in excess
of $500 million. The Fund's management fee for year ended September 30, 1999 was
0.44% of average annual net assets for each class of shares.
- --------------------------------------------------------------------------------
ACCOUNTING FEES. 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.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
AGGREGATE CLASS A COMMISSIONS COMMISSIONS COMMISSIONS
FRONT-END FRONT-END ON CLASS A ON CLASS B ON CLASS C
SALES CHARGES SALES CHARGES SHARES SHARES SHARES
ON CLASS A RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
YEAR ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
September 30, 1999 $214,856 $36,028 $13,460 $274,507 $21,836
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES
YEAR ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
September 30, 1999 $-- $96,005 $4,312
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
28 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
- --------------------------------------------------------------------------------
CLASS A SERVICE PLAN FEES. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of Class A
shares. The Distributor makes payments to plan recipients quarterly at an annual
rate not to exceed 0.25% of the average annual net assets consisting of Class A
shares of the Fund. For the fiscal year ended September 30, 1999, payments under
the Class A Plan totaled $245,096, all of which was paid by the Distributor to
recipients. That included $12,398 paid to an affiliate of the Distributor's
parent company. Any unreimbursed expenses the Distributor incurs with respect to
Class A shares in any fiscal year cannot be recovered in subsequent years.
- --------------------------------------------------------------------------------
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and from the Fund under the plans. If either the
Class B or the Class C plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended September 30,
1999, were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S DISTRIBUTOR'S
AGGREGATE UNREIMBURSED
UNREIMBURSED EXPENSES AS %
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES OF NET ASSETS
UNDER PLAN BY DISTRIBUTOR UNDER PLAN OF CLASS
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $285,641 $233,634 $938,638 3.55%
Class C Plan 57,731 33,511 78,916 1.41
</TABLE>
29 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
- --------------------------------------------------------------------------------
5. FUTURES CONTRACTS
The Fund may buy and sell futures contracts in order to gain exposure to or to
seek to protect against changes in interest rates. The Fund may also buy or
write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund may recognize a realized gain or loss when the contract is
closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
- --------------------------------------------------------------------------------
6. BANK BORROWINGS
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had borrowings outstanding of $800,000 at September 30, 1999.
30 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER INSURED MUNICIPAL FUND:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Insured Municipal Fund as of
September 30, 1999, the related statement of operations for the year then ended,
the statements of changes in net assets for the years ended September 30, 1999
and 1998, and the financial highlights for the period October 1, 1994 to
September 30, 1999. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirma-tion of securities owned as of
September 30, 1999, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Oppenheimer Insured
Municipal Fund as of September 30, 1999, the results of its operations, the
changes in its net assets, and the financial highlights for the respective
stated periods, in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Denver, Colorado
October 21, 1999
31 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
FEDERAL INCOME TAX INFORMATION UNAUDITED
- -------------------------------------------------------------------------------
In early 2000, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $0.2635, $0.2521 and $0.2521 per share were paid to Class
A, Class B and Class C shareholders, respectively, on December 10, 1998, of
which $0.1289 was designated as a "capital gain distribution" for federal income
tax purposes. Whether received in stock or in cash, the capital gain
distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
None of the dividends paid by the Fund during the fiscal year ended
September 30, 1999 are eligible for the corporate dividend-received deduction.
The dividends were derived from interest on municipal bonds and are not subject
to federal income tax. To the extent a shareholder is subject to any state or
local tax laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local regulations, we recommend that
you consult your tax advisor for specific guidance.
32 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
OPPENHEIMER INSURED MUNICIPAL FUND
A SERIES OF OPPENHEIMER MUNICIPAL FUND
- --------------------------------------
OFFICERS AND TRUSTEES
James C. Swain, Trustee and Chairman of the Board
Bridget A. Macaskill, Trustee and President
Robert G. Avis, Trustee
William H. Armstrong, Trustee
William A. Baker, Trustee
George C. Bowen, Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Caryn R. Halbrecht, Vice President
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR OppenheimerFunds, Inc.
- --------------------------------------------------------------------------------
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
- --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
- --------------------------------------------------------------------------------
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS Deloitte & Touche LLP
- --------------------------------------------------------------------------------
LEGAL COUNSEL Myer, Swanson, Adams & Wolf, P.C.
- --------------------------------------------------------------------------------
This is a copy of a report to shareholders of Oppenheimer Insured Municipal
Fund. This report must be preceded or accompanied by a Prospectus of Oppenheimer
Insured Municipal Fund. For material information concerning the Fund, see the
Prospectus.
SHARES OF OPPENHEIMER FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF ANY BANK, ARE
NOT GUARANTEED BY ANY BANK, ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY, AND
INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF THE PRINCIPAL AMOUNT
INVESTED.
33 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
INFORMATION and services
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
INTERNET
24-hr access to account information and transactions
WWW.OPPENHEIMERFUNDS.COM
- -------------------------------------------------------------------------------
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
- -------------------------------------------------------------------------------
TELEPHONE TRANSACTIONS
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
- -------------------------------------------------------------------------------
PHONELINK
24-hr automated information and automated transactions
1.800.533.3310
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
- -------------------------------------------------------------------------------
OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
- -------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
- -------------------------------------------------------------------------------
RA0865.001.0999 November 29, 1999
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OppenheimerFunds(r)
Distributor, Inc.
