<PAGE> 1
OPPENHEIMER FLORIDA TAX-EXEMPT FUND
SEMI-ANNUAL REPORT JUNE 30, 1994
(OPPENHEIMERFUNDS(R) LOGO)
<PAGE> 2
FUND FACTS
IN THIS REPORT:
ANSWERS TO THREE TIMELY QUESTIONS YOU SHOULD ASK YOUR FUND'S MANAGERS.
* DID THE FEDERAL RESERVE'S MOVES TO RAISE INTEREST RATES OVER THE PAST
SIX MONTHS AFFECT THE FUND'S INVESTMENT STRATEGY OR RETURNS?
* HOW IS FLORIDA'S ECONOMY AND BUDGET SHAPING UP, AND WHAT'S THE
OUTLOOK FOR THE STATE'S BONDS?
* WHAT'S THE LONGER- TERM OUTLOOK FOR THE FLORIDA MUNICIPAL MARKET?
FACTS EVERY SHAREHOLDER SHOULD KNOW ABOUT
OPPENHEIMER FLORIDA TAX-EXEMPT FUND
- -------------------------------------------------------------------------------
1 The Fund's objective is to seek high current income exempt
from federal income taxes and offer shares exempt from Florida
intangible personal property taxes by investing primarily in
investment grade Florida municipal securities.
- -------------------------------------------------------------------------------
2 Standardized yield for the 30 days ended June 30, 1994 was
5.03% for Class A shares and 4.52% for Class B shares.(1)
- -------------------------------------------------------------------------------
3 Under the new, higher federal tax rates, the value of tax-free
income has increased. The table shows the taxable equivalent
yield required to match the Fund's current yield for the new
top tax brackets.
<TABLE>
<CAPTION>
HERE IS THE TAXABLE EQUIVALENT OF THE FUND'S YIELD FOR A FLORIDA
RESIDENT FILING A JOINT RETURN WITH TAXABLE INCOME OF:
----------------------------------------------------------------
FUND YIELD
ON 6/30/94 $92,000 $150,000 $260,000
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A(1) 5.03% 7.29% 7.86% 8.33%
CLASS B(1) 4.52% 6.55% 7.06% 7.48%
</TABLE>
This table assumes that an investor's highest effective tax
bracket applies to the change in taxable income resulting from
a switch between taxable and non-taxable investments. A
portion of the Fund's distributions may be subject to income
taxes. For investors subject to alternative minimum tax, a
portion of the Fund's distributions may increase that tax.
- -------------------------------------------------------------------------------
4 Total return at maximum offering price for Class A shares for
the past six months ended June 30, 1994 and since inception on
October 7, 1993, were -11.29% and -7.39%, respectively. For
Class B shares, total return at maximum offering price for the
same periods were -11.84% and -8.01%, respectively.2
- -------------------------------------------------------------------------------
5 "As interest rates rose from early February to mid-May, we
took steps to protect the portfolio's net asset value and to
position the Fund for what we feel will be a strong municipal
market in the months ahead, concentrating on quality, call
protection and diversification."
Portfolio Manager Bob Patterson, June 30, 1994
(1) Standardized yield is net investment income calculated on a
yield-to-maturity basis for the 30-day period ended 6/30/94, divided by the
maximum offering price at the end of the period, compounded semi-annually and
then annualized. Falling net asset values will tend to artificially raise
yields.
(2) Total returns at the maximum offering price are based on a hypothetical
investment held until 6/30/94, after deducting the maximum initial sales charge
of 4.75% for Class A shares and the contingent deferred sales charge of 5% for
Class B shares.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. The principal value and
return of an investment in the Fund will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
2 Oppenheimer Florida Tax-Exempt Fund
<PAGE> 3
REPORT TO SHAREHOLDERS
All things considered--and there has been a lot to consider over the past
several months--Oppenheimer Florida Tax-Exempt Fund met its objective of
providing income exempt from taxes for the six months ended June 30, 1994.
The Fund's total return over the last six months was, of course,
affected by the broad declines in bond prices that followed four increases in
short-term interest rates by the Federal Reserve Board from early February
through mid-May. Throughout the period, however, the Fund's management team
held to a steady course. Rather than trying to track temporary turns in the
market, your managers continued to focus on bond quality, call protection and
diversification--all factors that help moderate price fluctuations and have
contributed to the Fund's performance.
As a result, the Fund today is well positioned to take advantage of
what your managers expect to be a strong Florida market in the months ahead, a
belief supported by three factors.
First, inflation--the factor that has the greatest effect on
interest-rate levels and long-term bond values--remains well under control.
Barring a sudden shift in the economy, interest rates are likely to hold
relatively steady, making tax-free bonds more attractive to investors.
Second, the municipal market's supply and demand characteristics are
positive. The supply of municipal bonds is running well below last year's pace,
while demand for tax-free securities is rising. This combination of shrinking
supply and mounting demand should provide support for Florida bond prices.
Third, Florida's finances are in good shape overall. The state
reported operating surpluses for 1993 and 1994, as the economy continued to
move away from its traditional dependence on tourism and agriculture. In fact,
the state's service base--above all, banking, finance, and international
trade--is booming.
To take advantage of these developments, your managers continue to
focus on essential-service issues which are bonds backed by strong, predictable
revenue streams such as toll roads. We also continue to invest in
transportation, housing, and education bonds--the market sectors likely to turn
in the best performance over time.
Looking ahead, your managers believe that, at current price and yield
levels, the Florida market offers real value to investors. While day-to-day
market fluctuations may be greater than has been the case in the past, the
fundamentals for long-term performance are in place, and your managers will
look for opportunities to buy value at attractive prices--the best way to
produce long-term investment gains.
We appreciate your trust in Oppenheimer Florida Tax-Exempt Fund, and
we look forward to helping you meet your investment goals in the future.
/s/ DONALD W. SPIRO
- -------------------
Donald W. Spiro
President
Oppenheimer Florida Tax-Exempt Fund
July 22, 1994
3 Oppenheimer Florida Tax-Exempt Fund
<PAGE> 4
STATEMENT OF INVESTMENTS June 30, 1994 (Unaudited)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Municipal Bonds and Notes - 99.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Florida -- 82.0% Broward County, Florida Resource Recovery Revenue Bonds,
Broward Waste Energy--LP North Project, 7.95%, 12/1/08 A/A $ 215,000 $ 236,398
-----------------------------------------------------------------------------------------------------------------
Broward County, Florida School District General Obligation
Bonds, Prerefunded, 7.125%, 2/15/08 Aaa/AAA/AAA 500,000 547,994
-----------------------------------------------------------------------------------------------------------------
Dade County, Florida Aviation Revenue Refunding Bonds,
Series Y, 5.50%, 10/1/11 Aa/A 600,000 555,221
-----------------------------------------------------------------------------------------------------------------
Dade County, Florida General Obligation Refunding Bonds,
FGIC Insured, 12%, 10/1/04 Aaa/AAA 100,000 149,392
-----------------------------------------------------------------------------------------------------------------
Florida State Board of Education Capital Outlay Public
Education General Obligation:
Bonds, Series A, 6.75%, 6/1/21 Aa/AA 300,000 312,657
Refunding Bonds:
Prerefunded, Series A, 7.25%, 6/1/23 Aaa/AAA 350,000 391,336
Series D, 5.125%, 6/1/22 Aa/AA/AA 700,000 593,669
-----------------------------------------------------------------------------------------------------------------
Florida State Division of Finance Department
Revenue Bonds:
Department of Natural Resource Preservation,
Series 2000--A, FSA Insured, 5.80%, 7/1/13 Aaa/AAA/A 750,000 712,766
Sunshine Skyway Project, Prerefunded, 10.25%, 6/1/08 Aaa/AAA 1,000,000 1,164,261
-----------------------------------------------------------------------------------------------------------------
Florida State Municipal Power Agency:
Revenue Bonds, Stanton II Project, Prerefunded,
AMBAC Insured, 6%, 10/1/27 Aaa/AAA 450,000 473,588
Revenue Refunding Bonds, St. Lucie Project,
FGIC Insured, 5.25%, 10/1/21 Aaa/AAA/AAA 300,000 259,191
-----------------------------------------------------------------------------------------------------------------
Florida State Turnpike Authority Revenue Bonds,
Prerefunded, Series A, FGIC Insured, 6.35%, 7/1/22 Aaa/AAA/AAA 600,000 640,620
-----------------------------------------------------------------------------------------------------------------
Gainesville, Florida Utilities System Revenue Bonds, Series B:
5.50%, 10/1/13 Aa/AA 350,000 320,440
6%, 10/1/17 Aa/AA 550,000 529,288
-----------------------------------------------------------------------------------------------------------------
Greater Orlando Aviation Authority Revenue Refunding
Bonds, Orlando, Florida Airport Facilities, Series A,
AMBAC Insured, 5.50%, 10/1/18 Aaa/AAA/AAA 280,000 248,511
-----------------------------------------------------------------------------------------------------------------
Hillsborough County, Florida Aviation Authority
Revenue Refunding Bonds, Tampa International
Airport, Series B, FGIC Insured, 5.50%, 10/1/13 Aaa/AAA/AAA 900,000 820,240
-----------------------------------------------------------------------------------------------------------------
Hillsborough County, Florida Utility Revenue
Refunding Bonds, MBIA Insured, 5.50%, 8/1/16 Aaa/AAA 200,000 181,045
-----------------------------------------------------------------------------------------------------------------
Hollywood, Florida Water and Sewer Revenue
Refunding Bonds, FGIC Insured, 5.60%, 10/1/23 Aaa/AAA/AAA 335,000 303,806
-----------------------------------------------------------------------------------------------------------------
Jacksonville, Florida Electric Authority Revenue Bonds,
Electric Systems Project, Series Three--B, 5.25%, 10/1/19 Aa1/AA/AA+ 650,000 561,289
-----------------------------------------------------------------------------------------------------------------
Kissimmee, Florida Utility Authority Electric System
Improvement Revenue Refunding Bonds, FGIC Insured,
5.50%, 10/1/15 Aaa/AAA/AAA 200,000 181,813
-----------------------------------------------------------------------------------------------------------------
Lake County, Florida Resource Recovery Industrial
Development Revenue Bonds, Series A, 5.95%, 10/1/13 Baa/BBB+ 100,000 88,208
-----------------------------------------------------------------------------------------------------------------
Orange County, Florida Sales Tax Revenue Bonds, Series B:
FGIC Insured, 5.375%, 1/1/24 Aaa/AAA/AAA 350,000 306,621
5.375%, 1/1/24 A1/A+ 350,000 303,693
-----------------------------------------------------------------------------------------------------------------
Orlando and Orange County, Florida Expressway Authority
Revenue Refunding Bonds, Sr. Lien:
AMBAC Insured, 5.25%, 7/1/14 Aaa/AAA/AAA 100,000 88,153
FGIC Insured, 5.50%, 7/1/18 Aaa/AAA/AAA 720,000 649,199
-----------------------------------------------------------------------------------------------------------------
Orlando, Florida Utilities Commission Water and Electric
Sub. Revenue Bonds, Series B, 5.25%, 10/1/23 Aa/AA-/AA 305,000 258,490
-----------------------------------------------------------------------------------------------------------------
Palm Beach County, Florida Health Facilities Authority
Hospital Revenue Bonds, Good Samaritan Health System,
6.20%, 10/1/11 NR/A- 500,000 479,022
-----------------------------------------------------------------------------------------------------------------
Palm Beach County, Florida Revenue Refunding Bonds,
Criminal Justice Facilities, FGIC Insured, 5.375%, 6/1/11 Aaa/AAA/AAA 250,000 228,430
</TABLE>
4 Oppenheimer Florida Tax-Exempt Fund
<PAGE> 5
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
FLORIDA
(CONTINUED) Pinellas County, Florida Health Facilities Authority Hospital
Revenue Bonds, Bayfront Obligation Group, Series A,
MBIA Insured, 5.60%, 7/1/23 Aaa/AAA 500,000 445,156
-----------------------------------------------------------------------------------------------------------------
St. Petersburg, Florida Public Improvement Revenue
Refunding Bonds, MBIA Insured, 6.375%, 2/1/12 Aaa/AAA 750,000 760,681
-----------------------------------------------------------------------------------------------------------------
St. Petersburg, Florida Public Utility Revenue
Bonds, 5.60%, 10/1/18 Aa/AA- 200,000 182,001
-----------------------------------------------------------------------------------------------------------------
South Florida Water Management District Revenue Refunding
Bonds, Special Obligation Land Acquisition, AMBAC Insured,
5.25%, 10/1/15 Aaa/AAA 720,000 635,874
-----------------------------------------------------------------------------------------------------------------
Vero Beach, Florida Electric Revenue Refunding Bonds,
Series A, MBIA Insured, 5.375%, 12/1/21 Aaa/AAA 500,000 439,636
-----------------------------------------------------------------------------------------------------------------
West Palm Beach, Florida Utility System Revenue Bonds,
Series B, FGIC Insured, 5.40%, 10/1/23 Aaa/AAA/AAA 600,000 523,163
-----------------------------------------------------------------------------------------------------------------
-------------
14,571,852
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Puerto Rico Commonwealth Aqueduct and Sewer Authority
POSSESSIONS--17.6% Revenue Bonds, Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA 200,000 273,317
-----------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and Transportation
Authority:
Revenue Bonds, Prerefunded:
Series Q, 7.75%, 7/1/10 NR/AAA 575,000 663,118
Series T, 6.50%, 7/1/22 NR/AAA 275,000 299,979
Revenue Refunding Bonds, Series X, 5.25%, 7/1/21 Baa1/A 700,000 597,964
-----------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority Revenue Refunding
Bonds, Series U, 6%, 7/1/14 Baa1/A- 500,000 480,878
-----------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority Guaranteed:
Revenue Refunding Bonds, Education and Health
Series M, 5.50%, 7/1/21 Baa1/A 300,000 262,393
Revenue Bonds, Prerefunded, Series K, 6.875%, 7/1/21 Baa1/AAA 500,000 557,380
-----------------------------------------------------------------------------------------------------------------
3,135,029
-------------
Total Municipal Bonds and Notes (Cost $18,909,357) 17,706,881
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT--TERM TAX--EXEMPT OBLIGATIONS -- 1.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Lee County, Florida Housing Finance Authority Multifamily
Housing Revenue Refunding Bonds, Forestwood Apts.
Project, 2.55% (1) (Cost $200,000) 200,000 200,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $19,109,357) 100.7% 17,906,881
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.7) (129,105)
------------ --------------
NET ASSETS 100.0% $17,777,776
============ ==============
</TABLE>
1. Floating or variable rate obligation maturing in more than one year. The
interest rate, which is based on specific, or an index of, market interest
rates, is subject to change periodically and is the effective rate on
June 30, 1994. A demand feature allows the recovery of principal at any
time, or at specified intervals not exceeding one year, on up to 30
days' notice.
See accompanying Notes to Financial Statements.
5 Oppenheimer Florida Tax-Exempt Fund
<PAGE> 6
STATEMENT OF ASSETS AND LIABILITIES June 30, 1994 (Unaudited)
<TABLE>
<S> <C> <C>
ASSETS Investments, at value (cost $19,109,357) - see accompanying statement $17,906,881
Cash 564,017
Receivables:
Interest 334,290
Shares of beneficial interest sold 15,210
Deferred organization costs 6,164
Other 5,647
-----------
Total assets 18,832,209
LIABILITIES Payables and other liabilities:
Investments purchased 980,311
Dividends 52,267
Distribution and service plan fees - Note 4 5,991
Other 15,864
-----------
Total liabilities 1,054,433
NET ASSETS $17,777,776
===========
COMPOSITION OF Paid-in capital $19,097,951
NET ASSETS Accumulated net realized loss from investment transactions (117,699)
Net unrealized depreciation on investments - Note 3 (1,202,476)
-----------
Net assets $17,777,776
===========
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net
assets of $10,313,815 and 966,671 shares of beneficial
interest outstanding) $10.67
Maximum offering price per share (net asset value plus sales
charge of 4.75% of offering price) $11.20
Class B Shares:
Net asset value, redemption price and offering price per
share (based on net assets of $7,463,961 and 698,481 shares
of beneficial interest outstanding) $10.69
</TABLE>
See accompanying Notes to Financial Statements.
6 Oppenheimer Florida Tax-Exempt Fund
<PAGE> 7
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1994 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME Interest $ 432,570
EXPENSES Management fees - Note 4 43,833
Distribution and service plan fees:
Class A - Note 4 6,407
Class B - Note 4 27,412
Legal and auditing fees 8,037
Transfer and shareholder servicing agent fees - Note 4 3,231
Shareholder reports 2,971
Registration and filing fees
Class A 2,122
Class B 1,287
Custodian fees and expenses 710
Trustees' fees and expenses 18
Other 5,682
-----------
Total expenses 101,710
Less assumption of expenses by Oppenheimer Management
Corporation - Note 4 (61,950)
-----------
Net expenses 39,760
NET INVESTMENT INCOME 392,810
REALIZED AND Net realized loss on investments (117,699)
UNREALIZED LOSS Net change in unrealized appreciation or depreciation
ON INVESTMENTS on investments (1,332,575)
-----------
Net realized and unrealized loss of investments (1,450,274)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(1,057,464)
===========
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Florida Tax-Exempt Fund
<PAGE> 8
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1994 DECEMBER 31,
(UNAUDITED) 1993(1)
---------------- -------------
<S> <C> <C> <C>
OPERATIONS Net investment income $ 392,810 $ 51,670
Net realized loss on investments (117,699) --
Net change in unrealized appreciation or
depreciation on investments (1,332,575) 130,099
----------- -----------
Net increase (decrease) in net assets resulting
from operations (1,057,464) 181,769
DIVIDENDS TO Dividends from net investment income:
SHAREHOLDERS Class A ($.318 and $.141 per share, respectively) (242,998) (28,959)
Class B ($.276 and $.115 per share, respectively) (149,812) (22,711)
BENEFICIAL INTEREST Net increase in net assets resulting from Class A
TRANSACTIONS beneficial interest transactions - Note 2 4,114,414 6,995,516
Net increase in net assets resulting from Class B
beneficial interest transactions - Note 2 3,177,391 4,810,630
NET ASSETS Total increase 5,841,531 11,936,245
Beginning of period 11,936,245 --
----------- -----------
End of period $17,777,776 $11,936,245
=========== ===========
</TABLE>
(1) For the period from October 7, 1993 (commencement
of operations) to December 31, 1993.
See accompanying Notes to Financial Statements.
8 Oppenheimer Florida Tax-Exempt Fund
<PAGE> 9
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------------ --------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1994 DECEMBER 31, JUNE 30, 1994 DECEMBER 31,
(UNAUDITED) 1993(1) (UNAUDITED) 1993(1)
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 11.79 $11.43 $ 11.81 $11.43
Income (loss) from investment operations:
Net investment income .32 .14 .28 .12
Net realized and unrealized gain (loss)
on investments (1.12) .36 (1.12) .38
------- ------ ------- ------
Total income (loss) from investment operations (.80) .50 (.84) .50
Dividends to shareholders from net
investment income (.32) (.14) (.28) (.12)
Net asset value, end of period $ 10.67 $11.79 $ 10.69 $11.81
======= ====== ======= ======
TOTAL RETURN, AT NET ASSET VALUE(2) (6.87)% 4.39% (7.20)% 4.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $10,314 $7,062 $7,464 $4,874
Average net assets (in thousands) $ 8,610 $2,471 $6,156 $2,304
Number of shares outstanding at end of period
(in thousands) 967 599 698 413
Ratios to average net assets:
Net investment income(3) 5.68% 5.08% 4.92% 4.29%
Expenses, before voluntary assumption by the
Manager(3) 1.08% 1.50% 1.82% 2.10%
Expenses, net of voluntary assumption by the
Manager(3) .23% (.29)% .98% .38%
Portfolio turnover rate(4) 6.7% -- % 6.7% --%
</TABLE>
(1) For the period from October 7, 1993 (commencement of operations) to
December 31, 1993.
(2) Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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.
(3) Annualized.
(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 six months ended June 30, 1994 were
$9,255,001 and $958,478, respectively.
See accompanying Notes to Financial Statements.
9 Oppenheimer Florida Tax-Exempt Fund
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT Oppenheimer Florida Tax-Exempt Fund (the Fund) is a
ACCOUNTING POLICIES separate series of Oppenheimer Multi-State
Tax-Exempt Trust, a non-diversified, open-end
management investment company registered under the
Investment Company Act of 1940, as amended. The
Fund's investment advisor is Oppenheimer Management
Corporation (the Manager). The Fund offers both Class
A and Class B shares. Class A shares are sold with a
front-end sales charge. Class B shares may be subject
to a contingent deferred sales charge. Both classes
of shares have identical rights to earnings, assets
and voting privileges, except that each class has its
own distribution and/or service plan, expenses
directly attributable to a particular class and
exclusive voting rights with respect to matters
affecting a single class. 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.
INVESTMENT VALUATION. Portfolio securities are
valued at 4:00 p.m. (New York time) on each trading
day. Long-term debt securities are valued by a
portfolio pricing service approved by the Board of
Trustees. Long-term debt securities which cannot be
valued by the approved portfolio pricing service are
valued by averaging the mean between the bid and
asked prices obtained from two active market makers
in such securities. Short-term 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. Securities for which market quotes are
not readily available are valued under procedures
established by the Board of Trustees to determine
fair value in good faith.
ALLOCATION OF INCOME, EXPENSES AND GAINS AND LOSSES.
Income, expenses (other than those attributable to a
specific class) and 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 INCOME 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 tax provision is required.
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a
nonfunded retirement plan for the Fund's independent
trustees. Benefits are based on years of service and
fees paid to each trustee during the years of
service. No payments have been made under the plan.
ORGANIZATION COSTS. The Manager advanced $7,500 for
organization and start-up costs of the Fund. Such
expenses are being amortized over a five-year period
from the date operations commenced. In the event
that all or part of the Manager's initial investment
in shares of the Fund is withdrawn during the
amortization period, the redemption proceeds will be
reduced to reimburse the Fund for any unamortized
expenses, in the same ratio as the number of shares
redeemed bears to the number of initial shares
outstanding at the time of such redemption.
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to
declare dividends separately for Class A and Class B
shares from net investment income each day the New
York Exchange is open for business and pay such
dividends monthly. Distributions from net realized
gains on investments, if any, will be declared at
least once each year.
10 Oppenheimer Florida Tax-Exempt Fund
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
OTHER. Investment transactions are accounted for on
the date the investments are purchased or sold (trade
date). Original issue discount on securities
purchased is amortized over the life of the
respective securities, in accordance with federal
income tax requirements. 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. For bonds acquired after April
30, 1993, accrued market discount is recognized at
maturity or disposition as taxable ordinary income.
Taxable ordinary income is realized to the extent of
the lesser of gain or accrued market discount.
2. SHARES OF The Fund has authorized an unlimited number of no par
BENEFICIAL INTEREST value shares of beneficial interest of each
class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1994 PERIOD ENDED DECEMBER 31, 1993(1)
------------------------------ ---------------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Class A:
Sold 526,033 $ 5,926,074 661,945 $7,730,754
Dividends reinvested 9,890 109,944 456 5,352
Redeemed (168,258) (1,921,604) (63,395) (740,590)
-------- ----------- -------- ----------
Net increase 367,665 $ 4,114,414 599,006 $6,995,516
======== =========== ======== ==========
Class B:
Sold 305,487 $ 3,394,320 420,202 $4,895,857
Dividends reinvested 4,295 47,765 376 4,414
Redeemed (24,102) (264,694) (7,777) (89,641)
-------- ----------- -------- ----------
Net increase 285,680 $ 3,177,391 412,801 $4,810,630
======== =========== ======== ==========
</TABLE>
(1) For the period from October 7, 1993 (commencement
of operations) to December 31, 1993.
3. UNREALIZED GAINS At June 30, 1994, net unrealized depreciation on
AND LOSSES ON investments of $1,202,476 was composed of gross
INVESTMENTS appreciation of $4,154, and gross depreciation of
$1,206,630.
4. MANAGEMENT FEES Management fees paid to the Manager were in
AND OTHER accordance with the investment advisory agreement
TRANSACTIONS WITH with the Fund which provides for an annual fee of
AFFILIATES .60% on the first $200 million of net assets, .55%
on the next $100 million, .50% on the next $200
million, .45% on the next $250 million, .40% on the
next $250 million and .35% on net assets in excess of
$1 billion. The Manager has agreed to assume
Fund expenses (with specified exceptions) in excess of
the most stringent applicable regulatory limit on Fund
expenses. In addition, the Manager has voluntarily
undertaken to assume Fund expenses to the level needed
to maintain a stable dividend.
For the six months ended June 30, 1994, commissions
(sales charges paid by investors) on sales of Class A
shares totaled $104,698, of which $16,335 was
retained by Oppenheimer Funds Distributor, Inc.
(OFDI), a subsidiary of the Manager, as general
distributor, and by an affiliated broker/dealer.
During the six months ended June 30, 1994, OFDI
received contingent deferred sales charges of $3,538
upon redemption of Class B shares, as reimbursement
for sales commissions advanced by OFDI at the time of
sale of such shares.
Oppenheimer Shareholder Services (OSS), a division of
the Manager, is the transfer and shareholder
servicing agent for the Fund, and for other
registered investment companies. OSS's total costs
of providing such services are allocated ratably to
these companies.
11 Oppenheimer Florida Tax-Exempt Fund
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Under separate approved plans, each class may expend
up to .25% (voluntarily reduced to .15% by the Fund's
Board) of its net assets annually to reimburse OFDI
for costs incurred in connection with the personal
service and maintenance of accounts that hold shares
of the Fund, including amounts paid to brokers,
dealers, banks and other institutions. In addition,
Class B shares are subject to an asset-based sales
charge of .75% of net assets annually, to reimburse
OFDI for sales commissions paid from its own
resources at the time of sale and associated
financing costs. In the event of termination or
discontinuance of the Class B plan, the Board of
Trustees may allow the Fund to continue payment of
the asset-backed charge to OFDI for distribution
expenses incurred on Class B shares sold prior to
termination or discontinuance of the plan. During
the six months ended June 30, 1994, OFDI paid $50 to
an affiliated broker/dealer as reimbursement for
Class A personal service and maintenance expenses and
retained $27,412 as reimbursement for Class B sales
commissions and service fee advances, as well as
financing costs.
12 Oppenheimer Florida Tax-Exempt Fund
<PAGE> 13
OPPENHEIMER FLORIDA TAX-EXEMPT FUND
A SERIES OF OPPENHEIMER MULTI-STATE TAX-EXEMPT TRUST
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Edmund T. Delaney, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert E. Patterson, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
INVESTMENT ADVISOR Oppenheimer Management Corporation
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
TRANSFER AND Oppenheimer Shareholder Services
SHAREHOLDER SERVICING
AGENT
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
INDEPENDENT AUDITORS KPMG Peat Marwick
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the records of
the Fund without examination by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer Florida Tax-Exempt
Fund. This report must be preceded or accompanied by a Prospectus of
Oppenheimer Florida Tax-Exempt Fund. For material information concerning the
Fund, see the Prospectus.
13 Oppenheimer Florida Tax-Exempt Fund
