OPPENHEIMER CALIFORNIA TAX-EXEMPT FUND
Supplement dated July 14, 1995 to the
Prospectus dated April 25, 1995
The following changes are made to the Prospectus:
1. The supplement dated April 25, 1995 to the Prospectus is replaced by
this supplement.
2. The first three paragraphs on the cover page of the Prospectus are
replaced with the following:
Oppenheimer California Tax-Exempt Fund is a mutual fund that
seeks as high a level of current interest income exempt from
Federal and California income taxes for individual investors as
is consistent with preservation of capital. Under normal market
conditions, the Fund invests at least 80% of its assets in
Municipal Securities and at least 65% of its total assets in
California Municipal Securities. However, in times of unstable
economic or market conditions, the Fund's investment manager may
deem it advisable to temporarily invest an unlimited amount of
the Fund's total assets in certain taxable instruments. The
Fund also uses "hedging" instruments, to seek to reduce the
risks of market fluctuations that affect the value of the
securities the Fund holds. You should carefully review the
risks associated with an investment in the Fund. Please refer
to "Investment Policies and Strategies" for more information
about the types of securities the Fund invests in and the risks
of investing in the Fund.
This Prospectus explains concisely what you should know before
investing in the Fund. Please read this Prospectus carefully and
keep it for future reference. You can find more detailed
information about the Fund in the April 25, 1995 Statement of
Additional Information. For a free copy, call Oppenheimer
Shareholder Services, the Fund's Transfer Agent, at
1-800-525-7048, or write to the Transfer Agent at the address
on the back cover. The Statement of Additional Information has
been filed with the Securities and Exchange Commission and is
incorporated into this Prospectus by reference (which means that
it is legally part of this Prospectus).
3. In "How to Buy Shares," the section entitled "Which Class of Shares
Should You Choose?" on page 22 is changed revising the final sentence of
the last paragraph of that section to read as follows:
The discussion below of the factors to consider in purchasing
a particular class of shares assumes that you will purchase only
one class of shares and not a combination of shares of different
classes.
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4. In "Reduced Sales Charges for Class A Share Purchases" on page 27,
the first sentence of the section "Right of Accumulation" is changed to
read as follows:
To qualify for the lower sales charge rates that apply to larger
purchases of Class A shares, you and your spouse can add
together Class A and Class B shares you purchase for your
individual accounts, or jointly, or for trust or custodial
accounts on behalf of your children who are minors.
The first two sentences of the second paragraph of that section are
revised to read as follows:
Additionally, you can add together current purchases of
Class A and Class B shares of the Fund and other
OppenheimerFunds to reduce the sales charge rate that applies
to current purchases of Class A shares. You can also count Class
A and Class B shares of OppenheimerFunds you previously
purchased subject to an initial or contingent deferred sales
charge to reduce the sales charge rate for current purchases of
Class A shares, provided that you still hold that investment in
one of the OppenheimerFunds.
5. The first sentence of the section entitled "Letter of Intent" on page
27 is revised to read as follows:
Under a Letter of Intent, if you purchase Class A shares or
Class A shares and Class B shares of the Fund and other
OppenheimerFunds during a 13-month period, you can reduce the
sales charge rate that applies to your purchases of Class A
shares. The total amount of your intended purchases of both
Class A and Class B shares will determine the reduced sales
charge rate for the Class A shares purchased during that period.
6. In the section entitled "Waivers of Class A Sales Charges" on page
28, the following changes are made:
The first sentence of the first paragraph is replaced by a new
introductory paragraph set forth below and the list of circumstances
describing the sales charge waivers follows a new initial sentence:
- Waivers of Class A Sales Charges. The Class A sales charges
are not imposed in the circumstances described below. There is
an explanation of this policy in "Reduced Sales Charges" in the
Statement of Additional Information.
Waivers of Initial and Contingent Deferred Sales Charges
for Certain Purchasers. Class A shares purchased by the
following investors are not subject to any Class A sales
charges:
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The introductory phrase preceding the list of sales charge waivers in the
second paragraph and subsection (c) of that paragraph are replaced by the
following:
Waivers of Initial and Contingent Deferred Sales Charges
in Certain Transactions. Class A shares issued or purchased in
the following transactions are not subject to Class A sales
charges:
. . . .
(c) shares purchased and paid for with the proceeds of shares
redeemed in the prior 12 months from a mutual fund (other than
a fund managed by the Manager or any of its subsidiaries) on
which an initial sales charge or contingent deferred sales
charge was paid (this waiver also applies to shares purchased
by exchange of shares of Oppenheimer Money Market Fund, Inc.
that were purchased and paid for in this manner); this waiver
must be requested when the purchase order is placed for your
shares of the Fund, and the Distributor may require evidence of
your qualification for this waiver.
The third paragraph of that section is revised to read as follows:
Waivers of the Class A Contingent Deferred Sales Charge.
The Class A contingent deferred sales charge does not apply to
purchases of Class A shares at net asset value without sales
charge as described in the two sections above. It is also waived
if shares that would otherwise be subject to the contingent
deferred sales charge are redeemed in the following cases:
- to make Automatic Withdrawal Plan payments that are
limited annually to no more than 12% of the original account
value; or
- involuntary redemptions of shares by operation of law or
involuntary redemptions of small accounts (see "Shareholder
Account Rules and Policies," below); or
- if, at the time a purchase order is placed for Class A
shares that would otherwise be subject to the Class A contingent
deferred sales charge, the dealer agrees to accept the dealer's
portion of the commission payable on the sale in installments
of 1/18th of the commission per month (and no further commission
will be payable if the shares are redeemed within 18 months of
purchase).
7. The first paragraph of the section entitled "Waivers of Class B Sales
Charge" on page 30 is amended by replacing the introductory phrase of
that paragraph with the sentences below and adding a new section at the
end of that paragraph as follows:
- Waivers of Class B Sales Charge. The Class B contingent
deferred sales charge will not be applied to shares purchased
in certain types of transactions nor will it apply to Class B
shares redeemed in certain circumstances as described below. The
reasons for this policy are in "Reduced Sales Charges" in the
Statement of Additional Information.
Waivers for Redemptions of Shares in Certain Cases. The
Class B contingent deferred sales charge will be waived for
redemptions of shares in the following cases:
8. A new final paragraph is added to the section captioned "Distribution
and Service Plan for Class B Shares" on page 30 as follows:
The Fund's Board of Trustees has determined that it is in the
best interest of the Fund's shareholders to adopt a new
Distribution and Service Plan for Class B shares to compensate
the Distributor for its services and costs in distributing Class
B shares and servicing accounts. Under the new plan, the
Distributor would be compensated with a fixed fee (1.00% per
annum of average annual net assets, which is the maximum rate
under the current Plan). Details about the proposed plan will
be contained in a proxy statement to be sent to the Fund's Class
B shareholders of record as of July 14, 1995, the record date
for the Class B shareholder meeting to vote on the proposed
plan.
9. In the section entitled "Reinvestment Privilege" on page 33, the
first three sentences are revised to read as follows:
If you redeem some or all of your Class A or B shares of the
Fund, you have up to 6 months to reinvest all or part of the
redemption proceeds in Class A shares of the Fund or other
OppenheimerFunds without paying a sales charge. This privilege
applies to Class A shares that your purchased subject to an
initial sales charge and to Class A or B shares on which you
paid a contingent deferred sales charge when you redeemed them.
July 14, 1995 PS0790.002
