<PAGE> 1
OPPENHEIMER NEW JERSEY 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 NEW JERSEY'S ECONOMY AND BUDGET SHAPING UP, AND WHAT'S THE OUTLOOK FOR
THE STATE'S BONDS?
* WHAT'S THE LONGER-TERM OUTLOOK FOR THE NEW JERSEY MARKET?
FACTS EVERY SHAREHOLDER SHOULD KNOW ABOUT
OPPENHEIMER NEW JERSEY TAX-EXEMPT FUND
- -------------------------------------------------------------------------------
1 The Fund's objective is to seek high current income exempt
from federal and New Jersey income taxes by investing
primarily in investment grade municipal securities.
- -------------------------------------------------------------------------------
2 Standardized yield for the 30 days ended June 30, 1994 was
4.97% for Class A shares and 4.47% 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 NEW
JERSEY RESIDENT FILING A JOINT RETURN WITH TAXABLE INCOME OF:
-------------------------------------------------------------
FUND YIELD
ON 6/30/94 $92,000 $160,000 $260,000
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A(1) 4.97% 7.68% 8.32% 8.82%
CLASS B(1) 4.47% 6.90% 7.48% 7.93%
</TABLE>
This table assumes that an investor's highest effective tax
bracket (combined federal and state) 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 from inception on March 1, 1994 to June 30,
1994 was 8.62% for Class A shares and 9.24% for Class B
shares.(2)
- -------------------------------------------------------------------------------
5 "New Jersey has significant strengths, notably a diverse
economy, a skilled and educated workforce, an excellent
transportation system, and its proximity to major economical
population centers. These strengths are contributing to the
state's economic recovery. With the Fund's focus on quality,
call protection and diversification, the portfolio is well
positioned for what we expect to be a strong New Jersey
market in the months ahead."
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 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 New Jersey Tax-Exempt Fund
<PAGE> 3
REPORT TO SHAREHOLDERS
We are pleased to provide you with the first shareholder report for Oppenheimer
New Jersey Tax-Exempt Fund. All things considered--and there has been a lot to
consider over the last several months--Oppenheimer New Jersey Tax-Exempt Fund
met its objective of providing income exempt from taxes since the Fund's
inception on March 1, 1994.
The Fund's total return over the last six months was, of
course, affected by the broad decline 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, your 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 New
Jersey 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 or currency markets, interest rates are
likely to hold relatively steady, making tax-free bonds more attractive to
investors.
At the same time, 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 is rising. This combination of shrinking
supply and mounting demand should provide support for New Jersey bond prices.
Third, the state's finances are in good shape. The economic
recovery has reached New Jersey, which provides a solid foundation as the state
reforms its education finance program and restructures its revenue base. The
state ended fiscal 1993 with a budget surplus, and the 1994 budget was adopted
by the legislature in a cooperative spirit. Last November, New Jersey voters
also elected a new governor to lead the state. Together, these events suggest
that the state's political outlook is brightening.
To take advantage of these developments, your managers continue
to focus on essential service issues which are bonds backed by stable,
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 New Jersey market offers real value to investors. 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 New Jersey 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 New Jersey Tax-Exempt Fund
July 22, 1994
3 Oppenheimer New Jersey 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-96.6%
- ----------------------------------------------------------------------------------------------------------------------------------
New Jersey-81.0% Bayonne, New Jersey General Obligation Bonds,
FGIC Insured, 6%, 5/1/13 Aaa/AAA/AAA $ 100,000 $ 97,785
----------------------------------------------------------------------------------------------------------
Camden County, New Jersey Municipal Authority
Sewer Revenue Bonds, Series A, FGIC Insured, 0%,
9/1/15 Aaa/AAA/AAA 250,000 67,108
----------------------------------------------------------------------------------------------------------
Cape May County, New Jersey Municipal Utility
Authority Revenue Refunding Bonds:
Prerefunded, MBIA Insured, 6.80%, 8/1/09 Aaa/AAA 200,000 216,434
Series A, MBIA Insured, 5.75%, 1/1/16 Aaa/AAA 250,000 235,043
----------------------------------------------------------------------------------------------------------
Edgewater, New Jersey Board of Education General
Obligation Bonds, 5.40%, 3/1/08 NR/AA 70,000 65,309
----------------------------------------------------------------------------------------------------------
Essex County, New Jersey Improvement Authority
Revenue Bonds, Prerefunded, AMBAC Insured, 7%,
12/1/20 Aaa/AAA/AAA 150,000 166,741
----------------------------------------------------------------------------------------------------------
Essex County, New Jersey Improvement General
Obligation Bonds, Irvington Township School
District, Prerefunded, FSA Insured, 6.55%, 10/1/09 Aaa/AAA 60,000 65,319
----------------------------------------------------------------------------------------------------------
Hoboken, Union City and Weehawken, New Jersey Sewer
Authority Revenue Refunding Bonds, MBIA Insured,
6.20%, 8/1/19 Aaa/AAA 85,000 83,824
----------------------------------------------------------------------------------------------------------
Hudson County, New Jersey Utility Authority
System Revenue Bonds, Prerefunded, 11.875%,
7/1/94 Aaa/AAA 115,000 156,439
----------------------------------------------------------------------------------------------------------
Monmouth County, New Jersey Improvement Authority
Revenue Bonds, Millston Township Board Education
Project, 5.55%, 2/15/18 NR/AA 85,000 77,697
----------------------------------------------------------------------------------------------------------
New Brunswick, New Jersey Parking Authority
Revenue Refunding Bonds, Series A,
FGIC Insured, 6.50%, 9/1/19 Aaa/AAA 150,000 151,762
----------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Public Service Electric and Gas Co.
Project, MBIA Insured, 6.40%, 5/1/32 Aaa/AAA 300,000 286,457
----------------------------------------------------------------------------------------------------------
New Jersey Health Care Facilities Finance Authority:
Revenue Bonds:
Centrastate Medical Center,
Series A, AMBAC Insured, 6%, 7/1/21 Aaa/AAA/AAA 100,000 95,383
Riverview Medical Center, AMBAC Insured, 5.50%, 7/1/13 Aaa/AAA 130,000 118,437
Revenue Refunding Bonds, Wayne General
Hospital, Series B, FHA Insured, 5.75% 8/1/11 NR/AAA 70,000 65,724
----------------------------------------------------------------------------------------------------------
New Jersey Sports and Exposition Authority
Revenue Bonds, Convention Center Luxury Tax,
Series A, MBIA Insured, 6.25%, 7/1/20 Aaa/AAA 80,000 77,897
----------------------------------------------------------------------------------------------------------
New Jersey State Highway Authority Revenue Bonds,
Garden Parkway, 5.90%, 1/1/04 A1/AA- 50,000 50,726
----------------------------------------------------------------------------------------------------------
New Jersey State Housing and Mtg. Finance Agency:
Revenue Bonds, Home Buyer, Series J, MBIA Insured,
6.20%, 10/1/25 Aaa/AAA 200,000 194,073
Revenue Refunding Bonds, Series 1, 6.70%, 11/1/28 NR/A+ 150,000 151,990
----------------------------------------------------------------------------------------------------------
New Jersey State Turnpike Authority Revenue Bonds,
Series C, 6.50%, 1/1/16 A/A/A 220,000 225,405
----------------------------------------------------------------------------------------------------------
Ocean County, New Jersey Utilities Authority
Wastewater Revenue Refunding Bonds, Series A,
5.75%, 1/1/18 Aa/AA- 65,000 60,646
----------------------------------------------------------------------------------------------------------
Passaic County, New Jersey General Obligation
Bonds, FGIC Insured, 5.70%, 3/1/15 Aaa/AAA/AAA 100,000 93,327
----------------------------------------------------------------------------------------------------------
Passaic Valley, New Jersey Community Water Supply
Revenue Bonds, Prerefunded, FGIC Insured, 6.40%,
12/15/22 Aaa/AAA/AAA 200,000 216,000
----------------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey
Consolidated Revenue Bonds, Ninety-Fourth Series,
6%, 12/1/14 A1/AA-/AA- 200,000 194,939
----------------------------------------------------------------------------------------------------------
Rutgers State University of New Jersey Revenue
Refunding Bonds, Series R, 6.20%, 5/1/04 A1/AA 50,000 51,744
----------------------------------------------------------------------------------------------------------
Sussex County, New Jersey General Obligation
Bonds, General Improvement, AMBAC Insured, 6%,
4/1/07 Aaa/AAA/AAA 135,000 136,474
----------------------------------------------------------------------------------------------------------
University of New Jersey Medicine and Dentistry
Revenue Bonds, Series E, 5.75%, 12/1/21 A/AA 50,000 45,285
----------------------------------------------------------------------------------------------------------
Woodbridge Township, New Jersey Revenue Refunding
Bonds, Sewer Utilities, Series B, 5%, 9/15/09 A1/NR 95,000 85,077
----------------------------------------------------------------------------------------------------------
--------------
3,533,045
</TABLE>
4 Oppenheimer New Jersey 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)
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Possessions-15.6% Puerto Rico Commonwealth Highway and
Transportation Authority:
Revenue Bonds, Prerefunded, Series T, 6.50%,
7/1/22 NR/AAA 200,000 218,167
Revenue Refunding Bonds, Series W, 5.25%, 7/1/20 Baa1/A 50,000 42,762
----------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Revenue Refunding
Bonds, 5.50%, 7/1/13 Baa1/A 100,000 90,490
----------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority Guaranteed
Public Education and Health Facilities:
Revenue Bonds, Prerefunded, Series L, 6.875%, 7/1/21 Aaa/A 250,000 278,690
Revenue Refunding Bonds, Series M, 5.75%, 7/1/15 Baa1/A 50,000 46,876
----------------------------------------------------------------------------------------------------------
676,985
-------------
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $4,319,370) 96.6% 4,210,030
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 3.4 149,553
-------- -------------
Net Assets 100.0% $ 4,359,583
======== =============
</TABLE>
See accompanying Notes to Financial Statements.
5 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE> 6
STATEMENT OF ASSETS AND LIABILITIES June 30, 1994 (Unaudited)
<TABLE>
<S> <C> <C>
ASSETS Investments, at value (cost $4,319,370) - see accompanying statement $4,210,030
Receivables:
Shares of beneficial interest sold 110,301
Interest 89,003
Deferred organization costs 8,500
Other 2,598
------------
Total assets 4,420,432
LIABILITIES Bank overdraft 34,366
Payables and other liabilities:
Dividends 11,528
Payable to Manager 8,500
Distribution and service plan fees - Note 4 1,249
Shares of beneficial interest redeemed 600
Other 4,606
------------
Total liabilities 60,849
NET ASSETS $4,359,583
============
COMPOSITION OF Paid-in capital $4,468,923
NET ASSETS Net unrealized depreciation on investments - Note 3 (109,340)
Net assets $4,359,583
============
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net
assets of $2,766,242 and 256,590 shares of beneficial
interest outstanding) $10.78
Maximum offering price per share (net asset value plus sales
charge of 4.75% of offering price) $11.32
Class B Shares:
Net asset value, redemption price and offering price per
share (based on net assets of $1,593,341 and 147,903 shares
of beneficial interest outstanding) $10.77
</TABLE>
See accompanying Notes to Financial Statements.
6 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE> 7
STATEMENT OF OPERATIONS For the Period from March 1, 1994 (commencement of
operations) to June 30, 1994 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME Interest $47,535
EXPENSES Management fees - Note 4 5,367
Distribution and service plan fees:
Class A - Note 4 874
Class B - Note 4 2,833
Shareholder reports 1,813
Legal and auditing fees 1,225
Registration and filing fees:
Class A 959
Class B 565
Custodian fees and expenses 245
Transfer and shareholder servicing agent fees - Note 4 245
Trustee's fees and expenses 98
Other 294
--------
Total expenses 14,518
Less assumption of expenses by Oppenheimer Management
Corporation - Note 4 (10,791)
--------
Net expenses 3,727
NET INVESTMENT INCOME 43,808
UNREALIZED LOSS Net change in unrealized depreciation on investments (109,340)
ON INVESTMENTS
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(65,532)
=========
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE> 8
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PERIOD ENDED
JUNE 30, 1994
(UNAUDITED)(1)
-----------
<S> <C> <C>
OPERATIONS Net investment income $ 43,808
Net change in unrealized appreciation or
depreciation on investments (109,340)
-----------
Net decrease in net assets resulting from operations (65,532)
DIVIDENDS TO Dividends from net investment income:
SHAREHOLDERS Class A ($.186 per share) (29,988)
Class B ($.151 per share) (13,820)
BENEFICIAL INTEREST Net increase in net assets resulting from Class A
TRANSACTIONS beneficial interest transactions - Note 2 2,841,984
Net increase in net assets resulting from Class B
beneficial interest transactions - Note 2 1,626,939
-----------
NET ASSETS Total increase 4,359,583
Beginning of period --
-----------
End of period $4,359,583
===========
</TABLE>
(1) For the period from March 1, 1994 (commencement
of operations) to June 30, 1994.
See accompanying Notes to Financial Statements.
8 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE> 9
FINANCIAL HIGHLIGHTS (Unaudited)
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------ -------------------
PERIOD ENDED PERIOD ENDED
JUNE 30, JUNE 30,
1994(1) 1994(1)
----------- --------------------
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $11.43 $11.43
Income from investment operations:
Net investment income .19 .15
Net realized and unrealized loss on
investments (.65) (.66)
-------- --------
Total loss from investment operations (.46) (.51)
Dividends and distributions to shareholders:
Dividends from net investment income (.19) (.15)
Net asset value, end of period $10.78 $10.77
======== ========
TOTAL RETURN, AT NET ASSET VALUE(2) (4.07)% (4.46)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $2,766 $1,593
Average net assets (in thousands) $1,763 $ 955
Number of shares outstanding at end of period
(in thousands) 257 148
Ratios to average net assets:
Net investment income 5.10%(3) 4.31%(3)
Expenses, before voluntary assumption by the
Manager 1.33%(3) 2.10%(3)
Expenses, net of voluntary assumption by the
Manager .15%(3) .90%(3)
Portfolio turnover rate(4) --% --%
</TABLE>
(1) For the period from March 1, 1994 (commencement of operations) to June 30,
1994.
(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 of investment securities (excluding short-term securities) for the
period ended June 30, 1994 were $4,318,001.
See accompanying Notes to Financial Statements.
9 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT Oppenheimer New Jersey Tax-Exempt Fund (the Fund)
ACCOUNTING POLICIES is a 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 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 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 $8,500 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 Stock 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 New Jersey 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
BENEFICIAL INTEREST par value shares of beneficial interest of each
class. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
PERIOD ENDED JUNE 30, 1994(1)
SHARES AMOUNT
<S> <C> <C>
Class A:
Sold 255,622 $2,831,392
Dividends reinvested 1,133 12,397
Redeemed (165) (1,805)
--------- -----------
Net increase 256,590 $2,841,984
========= ===========
Class B:
Sold 147,221 $1,619,472
Dividends reinvested 682 7,467
Redeemed -- --
--------- -----------
Net increase 147,903 $1,626,939
========= ===========
</TABLE>
(1) For the period from March 1, 1994 (commencement
of operations) to June 30, 1994 for both Class A and
Class B Shares.
3. UNREALIZED GAINS At June 30, 1994, net unrealized depreciation on
AND LOSSES ON investments of $109,340 was composed of gross
INVESTMENTS appreciation of $4,178, and gross depreciation of
$113,518.
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 period ended June 30, 1994 commissions (sales
charges paid by investors) on sales of Class A shares
totaled $61,610, of which $9,992 was retained by
Oppenheimer Funds Distributor, Inc. (OFDI), a
subsidiary of the Manager, as general distributor.
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 New Jersey 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-based sales charge to OFDI for distribution
expenses incurred on Class B shares sold prior to
termination or discontinuance of the plan. During
the period ended June 30, 1994, OFDI retained $2,833
as reimbursement for Class B sales commissions and
service fee advances, as well as financing costs.
12 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE> 13
OPPENHEIMER NEW JERSEY 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 New Jersey Tax-Exempt
Fund. This report must be preceded or accompanied by a Prospectus of
Oppenheimer New Jersey Tax-Exempt Fund. For material information concerning
the Fund, see the Prospectus.
13 Oppenheimer New Jersey Tax-Exempt Fund
