<PAGE>
[GRAPHIC]
Annual Report September 30, 2000
Oppenheimer
Insured Municipal Fund
[LOGO OF OPPENHEIMER FUNDS]
<PAGE>
REPORT HIGHLIGHTS
CONTENTS
1 President's Letter
3 An Interview with Your Fund's Managers
7 Fund Performance
12 Financial Statements
30 Independent Auditors' Report
31 Federal Income Tax Information
32 Officers and Trustees
Fears of higher inflation and rising yields early in the period gave way to a
more positive outlook and a bond market rally by the end of the reporting
period. The Treasury and municipal markets, which generally move in the same
direction, decoupled during the second half of the year. We look for the economy
to decelerate gradually to a more manageable level of growth, which should ease
investors' concerns about inflation.
Average Annual
Total Returns*
For the 1-Year Period
Ended 9/30/00
Class A
Without With
Sales Chg. Sales Chg.
---------------------------
4.14% -0.81%
Class B
Without With
Sales Chg. Sales Chg.
---------------------------
3.35% -1.60%
Class C
Without With
Sales Chg. Sales Chg.
---------------------------
3.35% 2.36%
*See Notes on page 10 for further details.
<PAGE>
PRESIDENT'S LETTER
Dear Shareholder,
[PHOTO]
James C. Swain
Chairman Oppenheimer
Insured Municipal Fund
[PHOTO]
Bridget A. Macaskill
President Oppenheimer
Insured Municipal Fund
Over the past several decades, our investment teams have learned the importance
of avoiding complacency when it comes to navigating the financial
markets--especially when times are good. Right now, times appear particularly
good. The U.S. economy is in its tenth year of expansion. In the bond market,
U.S. Treasury issues have been performing favorably over the past year. In
addition, despite volatility in the second quarter, the stock market has been
providing attractive returns from a wide spectrum of industry sectors,
capitalization ranges and investment styles.
We have arrived at this juncture after months of monitoring the rapid pace
of global economic growth and its implications for inflation, as well as the
Federal Reserve Board's evolving monetary policy. At this point, economic
indicators suggest a dampening of short-term inflationary pressures. While
recent increases in oil prices are certainly taking their toll, we don't believe
this signals a return to 1970's-style inflation. Accordingly, if the Fed
continues in its diligence, the economy could maintain its healthy rate of
growth.
In the bond market, the achievement of a federal budget surplus has
prompted the Treasury to buy back many of its long-term securities. The
resulting supply shortage boosted these securities' returns, causing an
inversion of the yield curve--an unusual situation in which shorter term
Treasuries yield more than their longer term counterparts. Other bond sectors
are offering many opportunities in the form of attractive valuations.
Perhaps most important is that we have begun to see encouraging signs in
the stock market. Formerly high-flying Internet stocks have generally come down
to earth, and investors have
1 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
PRESIDENT'S LETTER
begun to refocus on companies with strong business fundamentals and justifiable
valuations. Investors have also returned to long-neglected, value-oriented
companies.
What else do these various trends tell us? They tell us that the ability to
discriminate between long-term potential and short-lived fads has become more
critical than ever. Trying to generate good long-term performance requires
tracking the best companies through intensive research, combined with
hard-earned experience.
At OppenheimerFunds, our seasoned portfolio management teams fight
complacency by remaining constantly aware of the risks that face the economy and
financial markets. Virtually anything could affect the overall markets--a surge
in inflation, a decline in productivity, deteriorating corporate earnings, or
even the new Administration's proposals regarding tax reform, health-care and
Social Security. However, by remaining vigilant in our quest for fundamentally
sound businesses, we believe we can find good investments that can weather
market volatility.
In this environment, we encourage you to consult your financial advisor and
to stay on track with your long-term financial plan. For our part, we will
continue to monitor the opportunities and risks ever present in the financial
markets. Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest.
Sincerely,
/s/ James C. Swain /s/ Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
October 20, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of any particular fund. Specific
discussion, as it applies to your Fund, is contained in the pages that follow.
Stocks and bonds have different types of investment risks; stocks are subject to
market volatility and bonds are subject to credit and interest rate risks.
2 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Portfolio Management
Team/1/
Jerry Webman
Merrell Hora
How would you characterize the Fund's performance for the fiscal year that ended
September 30, 2000?
The past fiscal year was a challenging period for municipal markets and
Oppenheimer Insured Municipal Fund. Following nearly three calendar quarters of
general weakness, the municipal market rallied after May 2000. The Fund,
however, was positioned defensively and as a result did not participate in most
of the market's rally. At the same time, Class A shares of the Fund provided a
tax-free yield at net asset value, of 4.80%--which, for investors in the top
federal tax bracket, works out to a taxable equivalent yield of 7.95%2. A
comparable taxable return would be difficult to achieve without taking
substantial credit risk. Yet, during the reporting period, the municipal bonds
held in Oppenheimer Insured Municipal Fund's portfolio had an average credit
quality of AAA.
Why was the period "challenging" at the onset? Why did it change later on?
Initially, heated economic growth gave rise to concerns that the rate of
inflation might accelerate. Responding to the prospect of higher inflation,
investors demanded higher yields from all fixed income securities. Since bond
yields and prices move in opposite directions, the value of most bonds fell.
Bonds with longer maturities suffered the largest price declines.
To preempt the possibility of faster inflation, the Federal Reserve Board (the
Fed) boosted key short-term interest rates by 0.25% in November 1999 as well as
February and March 2000. By April, early signs of a slowdown in the U.S. economy
had taken some of the pressure off bond yields. Finally, in May 2000, the Fed
raised short-term rates by an additional 0.50%, the strongest such action since
1994.
1. Effective August 28, 2000, Jerry Webman and Merrell Hora are managing the
Fund.
2. Dividend yields are calculated based on net asset value (NAV), are annualized
and divided by the offering price as of the Fund's distribution date on xx.
Dividend yields at NAV do not include sales charge. Falling share prices will
tend to artificially raise yields.
3 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
"We believe the Fund should continue to provide attractive rates of tax-exempt
current income with less volatility than other bond funds offering similar
yields."
Investors were reassured by this event, as well as by two other factors.
First, some believed that, in order to deal with higher prices for gasoline and
heating fuel, consumers would be forced to reduce their discretionary spending,
which would further cool the economy. Second, economic expansion in other
nations slowed after the first of the year, prompting foreign investors to look
to the strongest investment markets--those in the United States--as an
alternative. By June 2000, the market rallied as investor demand pushed
municipal prices up and yields down to levels not seen since 1998. The effect
was most pronounced for issues with longer maturities (e.g., 20 to 30 years).
However, the Fund was affected somewhat, as there were only limited
opportunities available for increasing the Fund's yield.
What other factors played a significant role?
Beginning in February, the U.S. Treasury used surplus funds in the federal
government's budget to buy back long-term government bonds. As the supply of
these relatively safe investments dwindled, their prices rose. Normally, prices
and yields on municipal bonds follow the direction of Treasuries, but that was
not the case between February and April 2000; Treasury prices rose sharply while
prices for municipal securities remained level or declined.
This decoupling of the municipal and Treasury markets was important to the
Fund's results because, for some time now, we have pursued a strategy of hedging
the portfolio with Treasury futures. We have invested in municipal bonds with
longer maturities for the relatively higher yields they provided, which is one
reason the Fund consistently provided a relatively high rate of current income
to investors over the past several years. To offset the greater interest rate
risk associated with these securities, we have utilized Treasury-related issues
(futures) that had the potential to appreciate if prices of Treasury securities
fell. As long as interest rates continued to rise and bond prices to decline
(the general pattern from mid-1998 through early 2000), this strategy worked
well.
4 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
-------------------------------------
Average Annual
Total Returns
For the Periods Ended 9/30/00/3/
Class A
1-Year 5-Year 10-Year
-------------------------------------
-0.81% 3.72% 5.98%
Class B Since
1-Year 5-Year Inception
-------------------------------------
-1.60% 3.61% 3.98%
Class C Since
1-Year 5-Year Inception
-------------------------------------
2.36% 3.93% 4.13%
-------------------------------------
Standardized Yields/4/
For the 30 Days Ended 9/30/00
-------------------------------------
Class A 4.54%
-------------------------------------
Class B 4.00
-------------------------------------
Class C 3.99
-------------------------------------
Unfortunately, when Treasury prices rose and yields sank as a result of the
buyback program, the Fund's Treasury futures hampered performance. Also, as
municipals lagged behind Treasuries, our emphasis on longer maturities hurt
performance.
How did you respond to this?
We limited our use of Treasury futures and shifted our emphasis to municipal
securities with shorter maturities. The latter performed well in the municipal
market rally that occurred after May, though not as well as longer term issues.
What do you anticipate for the economy, municipal markets and the Fund in the
coming months?
We look for the economy to decelerate gradually to a more manageable level of
growth, which should ease investors' concerns about inflation and give the Fed
little reason to increase short-term interest rates any time soon. If we are
correct, then municipal bond yields may fall slightly. This will not, in our
view, be a large-scale change. As for the Fund, it is now more conservatively
positioned than in the recent past. Thus, it should continue to provide
attractive rates of tax-exempt current income but with less volatility than many
other types of bonds offering similar yields. That is what makes Oppenheimer
Insured Municipal Fund part of The Right Way to Invest.
3. See notes on page 10 for further details.
4. Standardized yield is based on net investment income for the 30-day period
ended September 30, 2000. Falling share prices will tend to artificially raise
yields.
5 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Credit Allocation/5/
[GRAPH]
AAA 91.9%
AA 7.2
A 0.9
Top Ten Positions By State/6/
Texas 14.1%
Illinois 10.1
New York 9.7
Michigan 8.9
Colorado 7.7
Pennsylvania 6.3
Nevada 4.7
Hawaii 4.4
California 3.6
Alaska 3.3
5. Portfolio data is subject to change. Percentages are as of September 30,
2000, and are dollar-weighted based on total market value of investments.
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 6.52% 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.
6. Portfolio data is subject to change. Percentages are as of September 30,
2000, and are based on net assets.
6 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
FUND PERFORMANCE
How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc. of
the Fund's performance during its fiscal year ended September 30, 2000, followed
by a graphical comparison of the Fund's performance to an appropriate
broad-based market index.
Management's discussion of performance. During the fiscal year that ended
September 30, 2000, Oppenheimer Insured Municipal Fund underperformed the
municipal market and its peer group. A weak bond market throughout much of the
period can be attributed to signs of strong economic growth that prompted
concerns that inflation might accelerate. Following a series of interest rate
hikes by the Federal Reserve, signals of a less robust economy and thus, less
inflationary pressure, a bond market rally ensued. Adding to the strength of the
rally was an increase in demand from foreign investors seeking the relative
safety of U.S. securities as economic expansion overseas decelerated. The Fund's
underperformance can be attributed to a relatively long average maturity in its
portfolio when interest rates and yields were rising (and prices falling) late
in 1999 and early in 2000, and to the use of a Treasury-related hedging strategy
that proved less profitable during the past year than in prior periods. In the
final fiscal quarter, the Fund was positioned more conservatively (i.e., shorter
average maturity and less hedging) and so did not participate as fully as it
might have in the municipal market rally that occurred in May.
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, 2000. 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 4.75% maximum initial sales
charge on Class A shares, and the applicable contingent deferred sales charge
for Class B and Class C shares. The graphs assume that all dividends and capital
gains distributions were reinvested in additional shares.
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:
[GRAPH]
Oppenheimer Insured Lehman Brothers
Municipal Fund Municipal Bond
(Class A) Index
9/30/90 9,525 10,000
12/31/90 9,974 10,431
3/31/91 10,160 10,667
6/30/91 10,362 10,895
9/30/91 10,770 11,319
12/31/91 11,111 11,698
3/31/92 11,095 11,733
6/30/92 11,553 12,177
9/30/92 11,927 12,502
12/31/92 12,170 12,729
3/31/93 12,654 13,202
6/30/93 13,057 13,634
9/30/93 13,599 14,095
12/31/93 13,751 14,293
3/31/94 12,840 13,508
6/30/94 12,828 13,657
9/30/94 12,860 13,751
12/31/94 12,638 13,554
3/31/95 13,544 14,512
6/30/95 13,849 14,862
9/30/95 14,184 15,289
12/31/95 14,801 15,920
3/31/96 14,624 15,728
6/30/96 14,750 15,849
9/30/96 15,130 16,212
12/31/96 15,557 16,625
3/31/97 15,481 16,585
6/30/97 15,994 17,157
9/30/97 16,530 17,674
12/31/97 17,077 18,153
3/31/98 17,226 18,362
6/30/98 17,388 18,642
9/30/98 18,018 19,214
12/31/98 18,055 19,329
3/31/99 18,171 19,501
6/30/99 17,591 19,156
9/30/99 17,162 19,080
12/31/99 16,854 18,932
3/31/2000 17,226 19,485
6/30/2000 17,474 19,780
9/30/2000 17,873 20,258
Average Annual Total Return of Class A Shares of the Fund at 9/30/00(1)
1 - Year 5 - Year 10 - Year
-0.81% 3.72% 5.98%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[GRAPH]
Oppenheimer Insured Lehman Brothers
Municipal Fund Municipal Bond
(Class B) Index
5/3/93 10,000 10,000
6/30/93 10,220 10,224
9/30/93 10,604 10,570
12/31/93 10,700 10,718
3/31/94 9,977 10,130
6/30/94 9,944 10,241
9/30/94 9,949 10,312
12/31/94 9,759 10,164
3/31/95 10,439 10,883
6/30/95 10,654 11,145
9/30/95 10,891 11,465
12/31/95 11,344 11,938
3/31/96 11,186 11,795
6/30/96 11,261 11,885
9/30/96 11,530 12,157
12/31/96 11,833 12,467
3/31/97 11,753 12,437
6/30/97 12,113 12,866
9/30/97 12,502 13,254
12/31/97 12,892 13,613
3/31/98 12,980 13,770
6/30/98 13,070 13,980
9/30/98 13,525 14,409
12/31/98 13,526 14,495
3/31/99 13,587 14,624
6/30/99 13,137 14,366
9/30/99 12,817 14,308
12/31/99 12,587 14,197
3/31/2000 12,865 14,612
6/30/2000 13,050 14,833
9/30/2000 13,348 15,192
Average Annual Total Return of Class B Shares of the Fund at 9/30/00(1)
1 - Year 5 - Year Life
-1.60% 3.61% 3.98%
1. See page 10 for further details.
8 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[GRAPH]
Oppenheimer Insured Lehman Brothers
Municipal Fund Municipal Bond
(Class C) Index
8/29/95 10,000 10,000
9/30/95 10,130 10,063
12/31/95 10,551 10,479
3/31/96 10,397 10,353
6/30/96 10,464 10,432
9/30/96 10,714 10,671
12/31/96 10,995 10,943
3/31/97 10,919 10,917
6/30/97 11,261 11,293
9/30/97 11,622 11,633
12/31/97 11,985 11,949
3/31/98 12,066 12,086
6/30/98 12,157 12,270
9/30/98 12,573 12,647
12/31/98 12,575 12,723
3/31/99 12,632 12,836
6/30/99 12,205 12,609
9/30/99 11,885 12,559
12/31/99 11,642 12,461
3/31/2000 11,884 12,825
6/30/2000 12,033 13,019
9/30/2000 12,284 13,334
Average Annual Total Return of Class C Shares of the Fund at 9/30/00(1)
1 - Year 5 - Year Life
2.36% 3.93% 4.13%
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 9/30/90 for Class A, 4/30/93 for Class B and begins on 8/31/95
for Class C.
Past performance is not predictive of future performance. Graphs are not drawn
to 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. Because of ongoing
market volatility, the Fund's returns may flucuate and current returns may be
less than the results shown as of 9/30/00. For quarterly 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. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
The Fund's Board has approved a proposal to reorganize the Fund into Oppenheimer
Municipal Bond Fund and shareholders are expected to vote on the proposal on or
about November 2, 2000.
Class A shares were first publicly offered on 11/11/86. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 4.75%. 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. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (5-year). 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. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
Financials
11 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS September 30, 2000
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
================================================================================
Municipal Bonds and Notes--98.2%
--------------------------------------------------------------------------------
Alaska--3.3%
AK IDV & Export Authority Power RB,
Snettisham Power, Prerefunded, Series 1,
AMBAC Insured, 5.50%, 1/1/16 NR/AAA/AAA $ 80,000 $ 83,074
--------------------------------------------------------------------------------
AK IDV & Export Authority Power RB,
Snettisham Power, Prerefunded, Series 1,
AMBAC Insured, 5.50%, 1/1/17 NR/AAA/AAA 90,000 93,459
--------------------------------------------------------------------------------
Anchorage, AK Water RRB, AMBAC Insured,
5.625%, 9/1/13 Aaa/AAA/AAA 1,000,000 1,027,500
--------------------------------------------------------------------------------
Anchorage, AK Water RRB, AMBAC Insured,
6%, 9/1/19 Aaa/AAA/AAA 1,000,000 1,038,180
--------------------------------------------------------------------------------
Anchorage, AK Water RRB, AMBAC Insured,
6%, 9/1/24 Aaa/AAA/AAA 1,500,000 1,550,310
-----------
3,792,523
--------------------------------------------------------------------------------
Arizona--1.9%
AZ Educational LMC RRB, Series B,
7%, 3/1/05 Aa2/NR 1,090,000 1,131,115
--------------------------------------------------------------------------------
University of AZ COP, University
Parking & Student Housing, AMBAC
Insured, 5.75%, 6/1/19 Aaa/AAA 1,000,000 1,020,080
-----------
2,151,195
--------------------------------------------------------------------------------
California--3.6%
CA SCDAU Revenue Refunding COP,
Cedars-Sinai Medical Center, MBIA Insured,
6.50%, 8/1/12/1/ Aaa/AAA 1,000,000 1,131,860
--------------------------------------------------------------------------------
Redding, CA Electric System Revenue COP,
MBIA Insured, Inverse Floater,
8.548%, 7/8/22/2/ Aaa/AAA 1,500,000 1,751,250
--------------------------------------------------------------------------------
Sacramento, CA MUD Electric RRB, Series
G, MBIA Insured, 6.50%, 9/1/13 Aaa/AAA/A 1,000,000 1,168,040
-----------
4,051,150
--------------------------------------------------------------------------------
Colorado--7.7%
CO HFA RRB, Single Family Program,
Series B-2, 7.10%, 4/1/17 Aa2/AA 1,520,000 1,709,985
--------------------------------------------------------------------------------
CO Housing FAU SFM RB, Sr. Lien,
Series C-2, 6.875%, 11/1/28 Aa2/NR 2,000,000 2,113,180
--------------------------------------------------------------------------------
CO Resource & Power DA Small Water
Resource RB, Series A, FGIC Insured,
5.80%, 11/1/20 Aaa/AAA/AAA 1,000,000 1,020,220
--------------------------------------------------------------------------------
Denver, CO City & Cnty. Airport RB,
6.197%, 11/15/16/3,4/ NR/NR 1,500,000 1,609,170
--------------------------------------------------------------------------------
Denver, CO City & Cnty. Airport RB,
6.197%, 11/15/18/3,4/ A2/NR 1,000,000 1,054,050
--------------------------------------------------------------------------------
Douglas & Elbert Cntys., CO SDI No.
RE-1, Improvement GOB, Series A,
MBIA Insured, 8%, 12/15/09 Aaa/AAA 1,000,000 1,227,900
-----------
8,734,505
12 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
--------------------------------------------------------------------------------
Florida--1.8%
FL HFA MH RRB, Series C, 6%, 8/1/11 NR/AAA $1,000,000 $1,027,560
--------------------------------------------------------------------------------
Lee Cnty., FL Hospital Board of Directors
RRB, MBIA Insured, Inverse Floater, 6.35%,
3/26/20/2/ Aaa/AAA 1,000,000 1,072,500
----------
2,100,060
--------------------------------------------------------------------------------
Hawaii--4.4%
HI Airport System RB, 6.197%, 7/1/20/3,4/ NR/NR 2,300,000 2,388,987
--------------------------------------------------------------------------------
HI Airport System RRB, Series B, 6.625%,
7/1/18 Aaa/AAA/AAA 1,500,000 1,624,065
--------------------------------------------------------------------------------
HI Budget & Finance Department Special
Purpose RRB, Hawaiian Electric Co., Inc.,
Series D, AMBAC Insured, 6.15%, 1/1/20 Aaa/AAA 1,000,000 1,031,840
-----------
5,044,892
--------------------------------------------------------------------------------
Illinois--10.1%
Chicago, IL GOUN, Series A, FGIC Insured,
6.75%, 1/1/35 Aaa/AAA/AAA 2,000,000 2,222,720
--------------------------------------------------------------------------------
Cook Cnty., IL Community College
District No. 508 Chicago COP, FGIC Insured,
8.75%, 1/1/05 Aaa/AAA/AAA 500,000 576,555
--------------------------------------------------------------------------------
Cook Cnty., IL RB, FGIC Insured,
5.50%, 11/15/22 Aaa/AAA/AAA 4,000,000 3,858,440
--------------------------------------------------------------------------------
Cook Cnty., IL SDI No. 99 Cicero GOB,
FGIC Insured, 8.50%, 12/1/05 Aaa/NR 1,170,000 1,369,696
--------------------------------------------------------------------------------
Metropolitan Pier & Exposition Authority RB,
IL Hospitality Facilities, McCormick Plaza
Convention
Center, Escrowed to Maturity, 7%, 7/1/26 A/AAA/AAA 3,000,000 3,515,250
------------
11,542,661
--------------------------------------------------------------------------------
Indiana--0.5%
Hamilton Southeastern, IN Consolidated
School Building Corp. RRB, First Mtg.,
AMBAC Insured, 7%, 7/1/11 Aaa/AAA/AAA 500,000 513,125
--------------------------------------------------------------------------------
Massachusetts--2.5%
MA Health & Educational FA RB,
Mt. Auburn Hospital Issue, Series B-1,
MBIA Insured, 6.25%, 8/15/14 Aaa/AAA 1,000,000 1,062,380
--------------------------------------------------------------------------------
MA HFA RB, Series A, AMBAC Insured,
6.60%, 7/1/14 Aaa/AAA/AAA 1,750,000 1,820,945
------------
2,883,325
--------------------------------------------------------------------------------
Michigan--8.9%
Central Montcalm, MI Public Schools RB,
MBIA Insured, 5.75%, 5/1/24 Aaa/AAA 750,000 754,747
--------------------------------------------------------------------------------
Detroit, MI GOB, Series B, MBIA Insured,
6%, 4/1/17 Aaa/AAA 3,035,000 3,176,917
13 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
--------------------------------------------------------------------------------
Michigan Continued
Howell, MI Public Schools RB,
MBIA Insured,
5.875%, 5/1/19 Aaa/AAA $1,850,000 $ 1,893,697
--------------------------------------------------------------------------------
MI Building Authority RRB, Series I,
MBIA-IBC Insured, 6.25%, 10/1/20 Aaa/AAA/AA 2,815,000 2,877,831
--------------------------------------------------------------------------------
Romulus, MI Community Schools RB, Aaa/AAA 1,400,000 1,406,972
5.75%, 5/1/25 --------------
10,110,164
--------------------------------------------------------------------------------
Missouri--2.7%
MO Development Finance Board
Infrastructure
Facilities RRB, Midtown Redevelopment
Project,
Series A, 5.75%, MBIA, Insured,
4/1/22 Aaa/AAA 3,000,000 3,033,900
--------------------------------------------------------------------------------
Nevada--4.7%
Clark Cnty., NV Passenger Facility
Charge RB,
Las Vegas McCarran International
Airport Project,
Series B, MBIA Insured, 7/1/12 Aaa/AAA 2,000,000 2,087,340
--------------------------------------------------------------------------------
Washoe Cnty., NV SDI RB, FSA Insured,
5.875%, 6/1/20 Aaa/AAA/AAA 3,175,000 3,233,261
--------------
5,320,601
--------------------------------------------------------------------------------
New Hampshire--0.5%
NH Turnpike System RRB, Series A, FGIC
Insured,
6.75%, 11/1/11 Aaa/AAA/AAA 500,000 552,680
--------------------------------------------------------------------------------
New Jersey--3.2%
NJ Transportation COP, Series 15,
AMBAC Insured, 6.67%, 9/15/15/4/ NR/AAA 3,250,000 3,690,570
--------------------------------------------------------------------------------
New York--9.7%
NYS DA RB, SUEFS, FGIC Insured,
5.25%, 5/15/18 Aaa/AAA/AAA 1,000,000 968,110
--------------------------------------------------------------------------------
NYS MTAU Dedicated Tax Fund RB, Series
A,
FGIC Insured, 6.125%, 4/1/17 Aaa/AAA/AAA 1,000,000 1,059,450
--------------------------------------------------------------------------------
NYS Tollway Authority Highway &
Bridge Trust Fund RB,
Series A,
FSA Insured, 6%, 4/1/16 Aaa/AAA/AAA 1,000,000 1,058,980
--------------------------------------------------------------------------------
NYS UDC RB, Series C, 5.875%, 1/1/19 Aaa/AAA/AAA 5,000,000 5,139,550
--------------------------------------------------------------------------------
TSASC, Inc., NY RB, 6.25%, 7/15/27 Aa1/A/A+ 2,750,000 2,770,707
--------------
10,996,797
--------------------------------------------------------------------------------
Ohio--3.0%
Mahoning Valley, OH Sanitary Distilled
Water RRB,
FSA Insured, 5.75%, 11/15/16 Aaa/AAA/AAA 1,450,000 1,488,874
--------------------------------------------------------------------------------
Streetsboro, OH SDI GOB, AMBAC Insured,
7.125%, 12/1/10 Aaa/AAA/AAA 500,000 567,200
--------------------------------------------------------------------------------
Summit Cnty., OH RB, FGIC Insured,
6.25%, 12/1/21 Aaa/AAA/AAA 1,270,000 1,359,014
--------------
3,415,088
14 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
--------------------------------------------------------------------------------
Oklahoma--1.9%
OK Industrial Authority Health Systems
RB,
Baptist Medical Center, Series C,
AMBAC Insured, 7%, 8/15/05 Aaa/AAA/AAA $2,000,000 $2,205,160
--------------------------------------------------------------------------------
Pennsylvania--6.3%
Berks Cnty., PA GOB, Prerefunded,
FGIC Insured, Inverse Floater, 8.033%, Aaa/AAA/AAA 1,000,000 1,105,000
11/10/20/2/
--------------------------------------------------------------------------------
PA Convention Center RRB, Series A,
MBIA-IBC Insured, 6.75%, 9/1/19 Aaa/AAA 1,150,000 1,238,699
--------------------------------------------------------------------------------
PA HEAA Student Loan RB, Series B,
AMBAC Insured, Inverse Floater, 7.601%, Aaa/AAA/AAA 1,250,000 1,285,938
3/1/22/2/
--------------------------------------------------------------------------------
Philadelphia, PA Airport RB, Inverse
Floater,
4.957%, 6/15/122 NR/NR 1,565,000 1,578,835
--------------------------------------------------------------------------------
Philadelphia, PA Regional POAU Lease RB,
MBIA Insured, Inverse Floater, 7.732%, Aaa/AAA 1,900,000 1,995,000
9/1/20/2/ --------------
7,203,472
--------------------------------------------------------------------------------
Texas--13.8%
Cedar Hill, TX ISD CAP RRB, Zero Coupon,
6.10%, 8/15/11/5/ Aaa/NR/AAA 1,585,000 885,904
--------------------------------------------------------------------------------
Grand Prairie, TX HFDC RRB, Dallas/Ft.
Worth
Medical Center Project, AMBAC Insured,
6.875%, 11/1/10 Aaa/AAA/AAA 1,800,000 1,955,520
--------------------------------------------------------------------------------
Harris Cnty., TX Hospital District RRB,
AMBAC Insured, 7.40%, 2/15/10 Aaa/AAA/AAA 2,000,000 2,263,120
--------------------------------------------------------------------------------
Harris Cnty., TX Houston Sports Authority
Special CAP RB, Jr. Lien, Series B, MBIA
Insured,
Zero Coupon, 5.33%, 11/15/13/5/ Aaa/AAA/AAA 4,360,000 2,090,097
--------------------------------------------------------------------------------
Houston, TX WSS RRB, Jr. Lien, Series B,
FGIC Insured, 5.25%, 12/1/23 Aaa/AAA/AAA 4,000,000 3,767,280
--------------------------------------------------------------------------------
Lower Colorado River Authority, TX RRB,
Series A, 5.875%, 5/15/17 Aaa/AAA/AAA 1,625,000 1,671,800
--------------------------------------------------------------------------------
Lower Neches Valley, TX IDAU Corp.
Sewer Facilities RB, Mobil Oil Refining
Corp.
Project, 6.40%, 3/1/30 Aaa/AAA 1,000,000 1,029,950
--------------------------------------------------------------------------------
Rio Grande Valley TX HFDC Retirement
Facilities RB, Golden Palms, Series B,
MBIA Insured, 6.40%, 8/1/12 Aaa/AAA 2,000,000 2,089,500
--------------
15,753,171
--------------------------------------------------------------------------------
Washington--2.1%
Tacoma, WA Electric Systems RB,
Prerefunded, AMBAC Insured, Inverse
Floater, 8.394%, 1/2/15/2/ Aaa/AAA/AAA 1,000,000 1,048,750
--------------------------------------------------------------------------------
WA PP Supply System RRB, Nuclear
Project No. 2, Series A, FGIC Insured,
Zero Coupon, 6.85%, 7/1/09/5/ Aaa/AAA/AAA 2,000,000 1,284,680
--------------
2,333,430
15 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
--------------------------------------------------------------------------------
Wisconsin--1.3%
WI Health & Educational FA RB,
Aurora Medical Group, Inc. Project,
FSA Insured, 6%, 11/15/11 Aaa/AAA/AAA $1,370,000 $1,474,230
--------------------------------------------------------------------------------
District of Columbia--2.8%
DC Hospital RRB, Medlantic Healthcare
Group,
Series A, MBIA Insured, 5.25%, 8/15/12 Aaa/AAA/AAA 1,000,000 1,004,740
--------------------------------------------------------------------------------
DC RRB, Prerefunded, Series A-1,
MBIA Insured, 6%, 6/1/11 Aaa/AAA/AAA 100,000 108,400
--------------------------------------------------------------------------------
DC RRB, Unrefunded Balance, Series A-1,
MBIA Insured, 6%, 6/1/11 Aaa/AAA/AAA 1,900,000 2,035,204
--------------
3,148,344
--------------------------------------------------------------------------------
U.S. Possessions--1.5%
PR Municipal FAU GOB, 6.779%, 8/1/15/3,4/ NR/NR 1,500,000 1,731,375
--------------
Total Municipal Bonds and Notes (Cost 111,782,418
$107,777,745)
--------------------------------------------------------------------------------
Short-Term Tax-Exempt Obligations--0.3%
Harris Cnty., TX HFDC Hospital RRB,
Methodist Hospital Project, 5.60%,
10/1/00/4/ (Cost $300,000) 300,000 300,000
--------------------------------------------------------------------------------
Total Investments, at Value (Cost $108,077,745) 98.5% 112,082,418
--------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.5 1,716,679
-------------------------
Net Assets 100.0% $113,799,097
=========================
16 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
Footnotes to Statement of Investments
<TABLE>
<CAPTION>
To simplify the listings of securities, abbreviations are used per the table
below:
<S> <C> <C> <C>
CAP Capital Appreciation MH Multifamily Housing
COP Certificates of Participation MTAU Metropolitan Transportation Authority
DA Dormitory Authority MUD Municipal Utility District
FA Facilities Authority NR Not Rated
FAU Finance Authority NYS New York State
GOB General Obligation Bonds POAU Port Authority
GOUN General Obligation Unlimited Notes PP Public Power
HEAA Higher Education Assistance Agency RB Revenue Bonds
HFA Housing Finance Agency RRB Revenue Refunding Bonds
HFDC Health Facilities Development Corp. SCDAU Statewide Communities Development Authority
IDV Industrial Development SDI School District
IDAU Industrial Development Authority SFM Single Family Mortgage
ISD Independent School District SUEFS State University Educational Facilities System
LMC Loan Marketing Corp. UDC Urban Development Corp.
WSS Water & Sewer System
</TABLE>
1. Securities with an aggregate market value of $1,131,860 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
2. 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 $9,837,273 or 8.64% of the
Fund's net assets as of September 30, 2000.
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 $6,783,582 or 5.96% of the Fund's net
assets as of September 30, 2000.
4. Represents the current interest rate for a variable or increasing rate
security.
5. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
As of September 30, 2000, securities subject to the alternative minimum tax
amount to $15,589,725 or 13.70% 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, 2000
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
<S> <C>
Assets
Investments, at value (cost $108,077,745)--see accompanying statement $112,082,418
------------------------------------------------------------------------------------------
Cash 603,718
------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 1,728,863
Shares of beneficial interest sold 85,217
Other 15,578
-------------
Total assets 114,515,794
------------------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Dividends 309,829
Shares of beneficial interest redeemed 233,780
Distribution and service plan fees 70,387
Shareholder reports 65,256
Transfer and shareholder servicing agent fees 23,236
Daily variation on futures contract 4,219
Trustees' compensation 2,581
Other 7,409
-------------
Total liabilities 716,697
------------------------------------------------------------------------------------------
Net Assets $113,799,097
=============
------------------------------------------------------------------------------------------
Composition of Net Assets
Paid-in capital $118,786,491
------------------------------------------------------------------------------------------
Overdistributed net investment income (81,764)
------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (8,917,334)
------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 4,011,704
-------------
Net Assets $113,799,097
=============
------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redempton price per share (based on net assets
of $90,223,381 and 5,528,490 shares of beneficial interest outstanding) $16.32
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $17.13
------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $19,848,389
and 1,215,556 shares of beneficial interest outstanding) $16.33
------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $3,727,327
and 228,441 shares of beneficial interest outstanding) $16.32
</TABLE>
See accompanying Notes to Financial Statements.
18 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
STATEMENT OF OPERATIONS For the Year Ended September 30, 2000
--------------------------------------------------------------------------------
Investment Income
Interest $ 7,098,200
--------------------------------------------------------------------------------
Expenses
Management fees 527,184
--------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 223,324
Class B 221,679
Class C 42,969
--------------------------------------------------------------------------------
Shareholder reports 89,969
--------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 88,297
--------------------------------------------------------------------------------
Custodian fees and expenses 31,318
--------------------------------------------------------------------------------
Legal, auditing and other professional fees 14,407
--------------------------------------------------------------------------------
Accounting service fees 12,000
--------------------------------------------------------------------------------
Trustees' compensation 4,676
--------------------------------------------------------------------------------
Other 46,349
-----------
Total expenses 1,302,172
Less expenses paid indirectly (12,150)
-----------
Net expenses 1,290,022
--------------------------------------------------------------------------------
Net Investment Income 5,808,178
--------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized loss on:
Investments (7,808,933)
Closing of futures contracts (481,906)
-----------
Net realized loss (8,290,839)
--------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 6,781,362
-----------
Net realized and unrealized loss (1,509,477)
--------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $4,298,701
===========
See accompanying Notes to Financial Statements.
19 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended September 30, 2000 1999
-------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income $ 5,808,178 $ 6,306,110
-------------------------------------------------------------------------------------------
Net realized loss (8,290,839) (352,108)
-------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 6,781,362 (12,885,535)
------------------------------
Net increase (decrease) in net assets resulting from
operations 4,298,701 (6,931,533)
-------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (4,685,771) (4,716,753)
Class B (939,894) (1,078,468)
Class C (181,996) (218,878)
-------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (1,141,094)
Class B -- (310,557)
Class C -- (60,365)
-------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting
from beneficial interest transactions:
Class A (6,757,675) 6,192,573
Class B (6,244,031) 2,067,306
Class C (1,799,974) 1,305,323
-------------------------------------------------------------------------------------------
Net Assets
Total decrease (16,310,640) (4,892,446)
-------------------------------------------------------------------------------------------
Beginning of period 130,109,737 135,002,183
------------------------------
End of period (including overdistributed net investment
income of $81,764 and $82,803, respectively) $113,799,097 $130,109,737
==============================
</TABLE>
See accompanying Notes to Financial Statements.
20 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Class A Year Ended September 30, 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of
period $ 16.48 $ 18.31 $ 17.72 $ 17.07 $ 16.86
-------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .81 .84 .80 .91 .90
Net realized and unrealized gain
(loss) (.16) (1.67) .75 .63 .20
-----------------------------------------------------
Total income (loss) from investment
operations .65 (.83) 1.55 1.54 1.10
-------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment
income (.81) (.80) (.84) (.89) (.89)
Distributions from net realized
gain -- (.20) (.12) -- --
-----------------------------------------------------
Total dividends and/or
distributions
to shareholders (.81) (1.00) (.96) (.89) (.89)
-------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.32 $ 16.48 $ 18.31 $ 17.72 $ 17.07
=====================================================
-------------------------------------------------------------------------------------------
Total Return, at Net Asset Value/1/ 4.14% (4.76)% 9.01% 9.25% 6.67%
-------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in
thousands) $90,223 $ 98,030 $102,687 $91,051 $83,516
-------------------------------------------------------------------------------------------
Average net assets (in thousands) $92,736 $103,527 $ 96,458 $86,511 $81,233
-------------------------------------------------------------------------------------------
Ratios to average net assets:/2/
Net investment income 5.04% 4.77% 4.49% 5.25% 5.27%
Expenses 0.92% 0.89% 0.89%/3/ 0.95%/3/ 1.02%/3/
-------------------------------------------------------------------------------------------
Portfolio turnover rate 96% 108% 73% 77% 93%
</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 has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
21 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Class B Year Ended September 30, 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of
period $ 16.49 $ 18.32 $ 17.73 $ 17.08 $ 16.87
-------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .68 .71 .67 .76 .77
Net realized and unrealized gain
(loss) (.15) (1.67) .74 .65 .20
------------------------------------------------------
Total income (loss) from investment
operations .53 (.96) 1.41 1.41 .97
-------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment
income (.69) (.67) (.70) (.76) (.76)
Distributions from net realized
gain -- (.20) (.12) -- --
------------------------------------------------------
Total dividends and/or
distributions
to shareholders (.69) (.87) (.82) (.76) (.76)
-------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.33 $ 16.49 $ 18.32 $ 17.73 $ 17.08
======================================================
-------------------------------------------------------------------------------------------
Total Return, at Net Asset Value/1/ 3.35% (5.47)% 8.18% 8.43% 5.87%
-------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in
thousands) $19,848 $26,468 $27,392 $19,974 $15,983
-------------------------------------------------------------------------------------------
Average net assets (in thousands) $22,132 $28,562 $23,817 $17,309 $14,822
-------------------------------------------------------------------------------------------
Ratios to average net assets:/2/
Net investment income 4.28% 4.00% 3.76% 4.48% 4.50%
Expenses 1.69% 1.65% 1.64%/3/ 1.71%/3/ 1.77%/3/
-------------------------------------------------------------------------------------------
Portfolio turnover rate 96% 108% 73% 77% 93%
</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 has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
22 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
Class C Year Ended September 30, 2000 1999 1998 1997/1/ 1996
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.48 $18.31 $17.72 $17.06 $16.86
-------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .68 .71 .70 .76 .75
Net realized and unrealized gain (loss) (.15) (1.67) .71 .65 .21
--------------------------------------------------
Total income (loss) from investment
operations .53 (.96) 1.41 1.41 .96
-------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.69) (.67) (.70) (.75) (.76)
Distributions from net realized gain -- (.20) (.12) -- --
--------------------------------------------------
Total dividends and/or distributions
to shareholders (.69) (.87) (.82) (.75) (.76)
-------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.32 $ 16.48 $ 18.31 $ 17.72 $ 17.06
==================================================
-------------------------------------------------------------------------------------------
Total Return, at Net Asset Value/2/ 3.35% (5.48)% 8.18% 8.48% 5.77%
-------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in
thousands) $3,727 $5,611 $4,923 $2,554 $924
-------------------------------------------------------------------------------------------
Average net assets (in thousands) $4,288 $5,775 $3,661 $1,720 $618
-------------------------------------------------------------------------------------------
Ratios to average net assets:/3/
Net investment income 4.29% 4.01% 3.82% 4.45% 4.38%
Expenses 1.69% 1.65% 1.64%/4/ 1.72%/4/ 1.81%/4/
-------------------------------------------------------------------------------------------
Portfolio turnover rate 96% 108% 73% 77% 93%
</TABLE>
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. 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.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
23 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, an open-end management investment company registered
under the Investment Company Act of 1940, as amended. The Fund's investment
objective is to seek 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 at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but 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. Securities listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
As of September 30, 2000, the Fund had available for federal tax purposes an
unused capital loss carryover as follows:
Expiring
--------
2008 $3,000,399
24 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
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 Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of dividends and distributions made during the
fiscal 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 dividends and 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, 2000, amounts have been reclassified to reflect a decrease in
paid-in capital of $522. Overdistributed net investment income was decreased by
the same amount. Net assets of the Fund were unaffected by the
reclassifications.
--------------------------------------------------------------------------------
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.
25 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
NOTE S TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
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, 2000 Year Ended September 30, 1999
Shares Amount Shares Amount
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 801,040 $ 12,892,892 1,139,629 $ 20,168,330
Dividends and/or distributions
reinvested 205,958 3,319,889 246,492 4,359,639
Redeemed (1,426,551) (22,970,456) (1,046,047) (18,335,396)
--------- ---------- --------- ----------
Net increase (decrease) (419,553) $ (6,757,675) 340,074 $ 6,192,573
========= ========== ========= ==========
--------------------------------------------------------------------------------------------
Class B
Sold 175,115 $ 2,823,724 483,752 $ 8,559,831
Dividends and/or distributions
reinvested 33,819 545,313 50,736 898,692
Redeemed (598,895) (9,613,068) (424,380) (7,391,217)
------- --------- ------- ---------
Net increase (decrease) (389,961) $ (6,244,031) 110,108 $ 2,067,306
======= ========= ======= =========
---------------------------------------------------------------------------------------------
Class C
Sold 53,262 $ 860,154 140,475 $ 2,501,020
Dividends and/or distributions
reinvested 7,048 113,617 11,966 211,869
Redeemed (172,416) (2,773,745) (80,811) (1,407,566)
------- --------- ------ ---------
Net increase (decrease) (112,106) $ (1,799,974) 71,630 $ 1,305,323
======= ========= ====== =========
</TABLE>
3. Purchases and Sales of Securities
--------------------------------------------------------------------------------
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended September 30, 2000, were
$111,246,789 and $127,718,465, respectively.
As of September 30, 2000, unrealized appreciation (depreciation) based on cost
of securities for federal income tax purposes of $108,077,745 was:
Gross unrealized appreciation $ 4,299,192
Gross unrealized depreciation (294,519)
------------
Net unrealized appreciation $4,004,673
============
--------------------------------------------------------------------------------
4. 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, 2000, was an annualized rate of 0.44%, before any waiver by the Manager if
applicable.
26 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
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,
acts as the transfer and shareholder servicing agent for the Fund on an
"at-cost" basis. OFS also acts as the transfer and shareholder servicing agent
for the other Oppenheimer 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, 2000 $103,762 $19,508 $3,009 $79,536 $6,773
</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
-----------------------------------------------------------------------------------------------
September 30, 2000 <S> <C> <C>
$ -- $ 83,459 $ 2,118
</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.
--------------------------------------------------------------------------------
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 purchased. 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 year ended September 30, 2000, payments
under the Class A plan totaled $223,324 prior to Manager waiver if applicable,
all of which were paid by the Distributor to recipients, and included $9,893
paid to an affiliate of the Manager. Any unreimbursed expenses the Distributor
incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years.
27 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
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 asset-based sales charges from the Fund under
the plans. If any 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 carryforward 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, 2000,
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 $ 221,679 $ 180,148 $ 814,883 4.11%
Class C Plan 42,969 10,391 86,983 2.33
</TABLE>
--------------------------------------------------------------------------------
5. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a particular price on a stipulated future
date at a negotiated price. Futures contracts are traded on a commodity
exchange. The Fund may buy and sell futures contracts that relate to
broadly-based securities indices "financial futures" or debt securities
"interest rate futures" in order to gain exposure to or to seek to protect
against changes in market value of stock and bonds or 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 decreases in market value of 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.
28 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
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 recognizes 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.
As of September 30, 2000, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
Expiration Number of Valuation as of Unrealized
Contract Description Date Contracts September 30, 2000 Appreciation
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Sell
Municipal Bonds 12/19/00 45 $ 4,404,375 $ 7,031
</TABLE>
--------------------------------------------------------------------------------
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 0.45%. 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 0.08%
per annum.
The Fund had no borrowings outstanding during the year ended September 30, 2000.
--------------------------------------------------------------------------------
7. Other Matters
On February 29, 2000, the Board of Trustees approved the reorganization of
Oppenheimer Insured Municipal Fund with and into Oppenheimer Municipal Bond
Fund. Shareholders of the Oppenheimer Insured Municipal Fund will be asked to
approve a reorganization whereby shareholders would receive shares of
Oppenheimer Municipal Bond Fund. If shareholder approval is received, it is
expected that the reorganization will occur during the fourth quarter of
calendar 2000.
29 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
The Board of Trustees and Shareholders of
Oppenheimer Insured Municipal Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Insured Municipal Fund, including the statement of investments, as
of September 30, 2000, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. 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 auditing standards generally
accepted in the United States of America. 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 confirmation of
securities owned as of September 30, 2000, by correspondence with the custodian
and brokers. 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, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Insured Municipal Fund as of September 30, 2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche LLP
Denver, Colorado
October 20, 2000
30 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
FEDERAL INCOME TAX INFORMATION Unaudited
--------------------------------------------------------------------------------
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the year ended September 30,
2000, are eligible for the corporate dividend-received deduction. The dividends
were derived from interest on municipal bonds and are not subject to federal
income tax. To the extent a shareholder is subject to any state or local tax
laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
31 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
William L. Armstrong, Trustee
Robert G. Avis, Trustee
George C. Bowen, Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Merrell Hora, Vice President
Jerry Webman, Vice President
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
--------------------------------------------------------------------------------
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.
For more complete information about Oppenheimer
Insured Municipal Fund, please refer to the
Prospectus. To obtain a copy, call your financial
advisor, or call OppenheimerFunds Distributor,
Inc. at 1.800.525.7048, or visit the
OppenheimerFunds Internet website, at
www.oppenheimerfunds.com.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including
the possible loss of the principal amount
invested.
Oppenheimer funds are distributed by
OppenheimerFunds Distributor, Inc., Two World
Trade Center, New York, NY 10048-0203.
(C)Copyright 2000 OppenheimerFunds, Inc. All rights reserved.
32 OPPENHEIMER INSURED MUNICIPAL FUND
<PAGE>
OPPENHEIMERFUNDS FAMILY
--------------------------------------------------------------------------------
Global Equity
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
--------------------------------------------------------------------------------
Equity
Stock Stock & Bond
Emerging Technologies Fund Main Street(R) Growth & Income
Fund
Enterprise Fund Quest Opportunity Value Fund
Discovery Fund Total Return Fund
Main Street(R) Small Cap Fund Quest Balanced Value Fund
Quest Small Cap Fund/1/ Capital Income Fund
MidCap Fund Multiple Strategies Fund
Main Street(R) Opportunity Fund Disciplined Allocation Fund
Growth Fund Convertible Securities Fund
Capital Appreciation Fund
Large Cap Growth Fund Specialty
Disciplined Value Fund Real Asset Fund(R)
Quest Capital Value Fund Gold & Special Minerals Fund
Quest Value Fund
Trinity Growth Fund
Trinity Core Fund
Trinity Value Fund
--------------------------------------------------------------------------------
Fixed Income
Taxable Municipal
International Bond Fund California Municipal Fund/3/
World Bond Fund/2/ Main Street(R) California
Municipal Fund/2,3/
High Yield Fund Florida Municipal Fund/3/
Champion Income Fund New Jersey Municipal Fund/3/
Strategic Income Fund New York Municipal Fund/3/
Bond Fund Pennsylvania Municipal Fund/3/
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund/2/
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York
Municipal Fund
--------------------------------------------------------------------------------
Money Market/4/
Money Market Fund Cash Reserves
1. The Fund's name changed from "Oppenheimer Quest Small Cap Value Fund" on
5/19/00.
2. The Fund's Board has proposed to reorganize the Fund into another
Oppenheimer fund subject to shareholder approval.
3. Available to investors only in certain states.
4. An investment in money market funds is neither insured nor guaranteed
by the Federal Deposit Insurance Corporation or any other government
agency. Although these funds may seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing
in these funds.
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/1/
www.oppenheimerfunds.com
General Information
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
Telephone Transactions
Mon-Fri 8am-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 9am-6:30pm ET
1.800.843.4461
OppenheimerFunds Market 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
Ticker Symbols Class A: OPISX Class B: OISBX Class C: OISCX
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
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RA0865.001.0900 November 29, 2000
