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OPPENHEIMER NEW JERSEY TAX-EXEMPT FUND
Semiannual Report June 30, 1995
[OPPENHEIMERFUNDS LOGO]
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This Fund is for people who need INCOME that's EXEMPT from taxes.
YIELD
STANDARDIZED YIELD
For the 30 Days Ended 6/30/95:(4)
Class A
4.81%
Class B
4.20%
BEAT THE AVERAGE
Total Return for the 1-Year
Period Ended 6/30/95:
Oppenheimer New Jersey
Tax-Exempt Fund
(at net asset value)(2)
8.34%
Lipper New Jersey Municipal
Debt Fund Average (5)
7.80%
HOW YOUR FUND IS MANAGED
Oppenheimer New Jersey Tax-Exempt Fund invests in a diversified
portfolio of New Jersey municipal bonds. As a Fund shareholder,
you receive income that is free from federal and New Jersey income
taxes.(1) Your dividends don't increase your taxable income the
way taxable investments do, so you can keep more of what you earn.
New Jersey Tax-Exempt Fund is managed by an experienced team of
municipal bond specialists who research investments thoroughly
before they are included in the Fund's portfolio.
PERFORMANCE
Total return at net asset value for the 6 months ended 6/30/95 was
8.98% for Class A shares and 8.69% for Class B shares.(2)
Your Fund's average annual total returns at maximum offering price
for Class A shares for the 1-year period ended 6/30/95 and since
inception of the Class on 3/1/94 were 3.19% and -0.75%,
respectively. For Class B shares, average annual total returns for
the 1-year period ended 6/30/95 and since inception of the Class on
3/1/94 were 2.63% and -0.78%, respectively.(3)
OUTLOOK
"We believe the current market is fairly valued. There are still
plenty of positives, along with a good supply and demand
relationship. As far as the Fund is concerned, in the first half
of the year, we realized significant appreciation. For the
remainder of the year, we expect a stable market. Relative to
other fixed income securities and against a low inflation backdrop,
the outlook for muni bonds is very good."
Robert Patterson, Portfolio Manager
June 30, 1995
All figures assume reinvestment of dividends and capital gains
distributions. Past performance is not indicative of future
results. Investment and principal value on 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.
1. A portion of the distributions paid by the Fund may be subject
to federal and state income taxes. For investors subject to
federal and/or state alternative minimum tax (AMT), the Fund's
distributions may increase this tax. Capital gains distributions,
if any, are taxed as capital gains.
2. Based on the change in net asset value per share for the period
shown, without deducting any sales charges. Such performance would
have been lower if sales charges were taken into account.
3. Class A returns show results of hypothetical investments on
6/30/94 and 3/1/94 (inception of class), after deducting the
current maximum initial sales charge of 4.75%. Class B returns
show results of hypothetical investments on 6/30/94 and 3/1/94
(inception of class), and the deduction of the applicable
contingent deferred sales charge of 5% (1-year) and 4% (since
inception). An explanation of the different performance
calculations is in the Fund's prospectus.
4. Standardized yield is net investment income calculated on a
yield-to-maturity basis for the 30-day period ended 6/30/95,
divided by the maximum offering price at the end of the period,
compounded semiannually and then annualized. Falling net asst
values will tend to artificially raise yields.
5. Source: Lipper Analytical Services. The Lipper total return
average for the 1-year period was for 39 New Jersey municipal debt
funds. The average is shown for comparative purposes only.
Oppenheimer New Jersey Tax-Exempt Fund is characterized by Lipper
as a New Jersey municipal debt fund. Lipper performance does not
take sales charges into consideration.
2 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
DEAR OPPENHEIMERFUNDS SHAREHOLDER,
DONALD W. SPIRO
President
Oppenheimer
New Jersey
Tax-Exempt Fund
JON S. FOSSEL
Chairman and CEO
Oppenheimer
Management
Corporation
In contrast to last year, the first half of 1995 has been
exceptionally good for the bond market. Almost all types of bonds
have participated in the upswing and, in many cases, have more than
made up for last year's declines in the first half alone --
rewarding investors who were patient through the market's short-
term difficulties. The strength of the current market adds to
evidence showing, once again, that profitable investing calls for
a long-term perspective.
The single most important factor behind the rally was a change in
the Federal Reserve's monetary policy. From February 1994 to
February 1995, the Fed raised rates aggressively to preempt
possible inflation by slowing the economy to a more moderate growth
rate, thus prolonging the current cycle of economic growth. As
evidence began to mount that indicated the economy was indeed
slowing, the Fed stopped raising rates.
Like most bonds, municipal bonds benefitted from the Fed's moves,
but they also gained for a number of other reasons. First, the
income municipal or tax-free bonds pay is currently very attractive
compared to the after-tax income from other fixed income
investments. This has made them appealing to investors whose
primary goal is income. In addition, relatively short supply and
increased demand for municipal bonds -- particularly in regions
with high tax rates -- have supported higher prices.
We believe the municipal bond market is strong today; however, the
ongoing congressional budget talks may have an effect as the year
continues. State governments are under financial pressure as the
Federal government moves to reduce the deficit. Thus, states and
municipalities may find that although they will be in a position of
having greater say over how money is spent locally, they will have
less money overall -- lowering the ratings of some bonds, thus
decreasing the number of quality issues available. Careful credit
analysis will play an even more important role in selecting
investments. The good news is that your managers have always
believed in careful analysis and will continue to steer the Fund
toward promising investment opportunities.
Going forward, your Fund's management team is optimistic, but
somewhat more conservative. Municipal bonds have experienced
tremendous capital appreciation during the first half of this year,
and your managers want to avoid giving back gains the Fund has
made. Our goal remains to combine the income needs to our
shareholders with a desire to limit risk. Your managers believe
the Fund will be in a strong position to do both for the remainder
of the year and in the future.
Your portfolio manager discusses the outlook for your Fund on the
following pages. Thank you for your confidence in
OppenheimerFunds, and we look forward to helping you continue to
reach your investment goals in the future.
/s/ Donald W. Spiro
Donald W. Spiro
/s/ Jon S. Fossel
Jon S. Fossel
July 24, 1995
3 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
ROBERT PATTERSON
Portfolio Manager
Q + A
AN INTERVIEW WITH YOUR FUND'S MANAGER.
THE FUND HAS PERFORMED VERY WILL OVER THE LAST 12 MONTHS, AS IT
BEAT THE LIPPER NEW JERSEY MUNICIPAL DEBT FUND AVERAGE FOR THE 1-
YEAR PERIOD ENDED JUNE 30, 1995. WHAT FACTORS AFFECTED THE
MUNICIPAL BOND MARKET SINCE THE LAST REPORT?
Municipal bonds had a strong run since Thanksgiving of last year
and particularly in the first quarter of this year. Toward the end
of last year, interest rates began to decline and the fixed income
markets started to rally, and most bonds participated in the rally.
This, in turn, increased demand for municipal bonds and put
pressure on the already short supply. As a result, the increased
demand and short supply pushed prices higher. Thus, municipal
bonds experienced significant capital appreciation over the past
six months. Because we anticipated the rally, the Fund was well
positioned, and we were able to take advantage of the positive
market environment.
WHAT CHANGES HAVE YOU MADE AS A RESULT OF THE BOND RALLY?
Most of the changes we made occurred last November when we began to
anticipate a turnaround. We've increased our holdings of
prerefunded and insured bonds in the portfolio -- these issues were
hit the hardest in 1994's tough market, so they've provided the
greatest appreciation since the turnaround.
We've also been selling positions in par bonds, which we bought at
a discount and which have now reached par value. Our thinking here
is that having reached par, they may underperform in the future.
WITH A RECORD NUMBER OF BOND CALLS EXPECTED THIS SUMMER, HOW ARE
YOU POSITIONING THE PORTFOLIO TO PROTECT INCOME?
The calls -- or built-in opportunities for issuers to buy back bond
prior to maturity -- we expect to see will continue to bolster the
favorable supply/demand characteristics in the muni bond market.
Other than that, we don't feel much effect form the number of bond
calls. We primarily invest in bonds with "call protection," a
feature that allows us to be the ones who decide how long we'll own
a bond. We've always considered call protection an important
feature, so the Fund is fairly well insulated against call risk.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL BOND MARKET IN GENERAL AND
FOR THE FUND IN PARTICULAR?
We believe the current market is fairly valued. There are still
plenty of positives, along with a good supply and demand
relationship.
As far as the Fund is concerned, in the first half of the year, we
realized significant appreciation. For the remainder of the year,
we expect a stable market.
Relative to other fixed income securities and against a low
inflation backdrop, the outlook for the Fund is very good.
Investors were well compensated for waiting out last year's market,
and we believe the current strength should persist through 1995 and
into next year.
1. The Fund's portfolio is subject to change.
3 Oppenheimer New Jersey Tax-Exempt Fund
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=========================================================================
STATEMENT OF INVESTMENTS June 30, 1995(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 - 96.9%
- -------------------------------------------------------------------------------------------------
NEW JERSEY - 75.8%
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Bayonne, New Jersey General Obligation
Bonds, FGIC Insured, 6%, 5/1/13 Aaa /AAA /AAA $100,000 $ 102,453
-----------------------------------------------------------------------------------------
Bergen County, New Jersey Utilities
Authority Water Pollution Control
Revenue Bonds, Series A, FGIC Insured,
6.50%, 12/15/12 Aaa /AAA /AAA 400,000 422,194
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Camden County, New Jersey Municipal
Authority Sewer Revenue Bonds, Series
A, FGIC Insured, Zero Coupon, 9/1/15 Aaa /AAA /AAA 250,000 77,376
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Camden County, New Jersey Municipal
Utilities Authority Sewer Revenue
Refunding Bonds, FGIC Insured,
8.125%, 12/1/07 Aaa /AAA /AAA 750,000 825,190
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Cape May County, New Jersey Municipal
Utility Authority Revenue Refunding
Bonds, Prerefunded, MBIA Insured,
6.80%, 8/1/09 Aaa /AAA 200,000 217,259
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Cape May County, New Jersey Municipal
Utility Authority Revenue Refunding
Bonds, Series A, MBIA Insured,
5.75%, 1/1/16 Aaa /AAA 250,000 248,512
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Delaware River Joint Toll Bridge
Commission Revenue Bonds, Interstate
78, Prerefunded, FGIC Insured,
7.80%, 7/1/18 Aaa /AAA /AAA 175,000 194,690
-----------------------------------------------------------------------------------------
Essex County, New Jersey Improvement
Authority Revenue Bonds, Irvington
Township School District, Prerefunded,
FSA Insured, 6.55%, 10/1/09 Aaa /AAA 60,000 67,252
-----------------------------------------------------------------------------------------
Essex County, New Jersey Improvement
Authority Revenue Bonds, Prerefunded,
AMBAC Insured, 7%, 12/1/20 Aaa /AAA /AAA 150,000 169,124
-----------------------------------------------------------------------------------------
Hoboken Union City & Weehawken, New
Jersey Sewer Authority Revenue Refund-
ing Bonds, MBIA Insured, 6.20%, 8/1/19 Aaa /AAA 85,000 87,129
-----------------------------------------------------------------------------------------
Hudson County, New Jersey Utility
Authority System Revenue Bonds,
Prerefunded, 11.875%, 7/1/06 Aaa /AAA 520,000 691,097
-----------------------------------------------------------------------------------------
Mercer County, New Jersey Improvement
Authority Revenue Bonds, Custodial
Receipts-Justice Complex, 6.05%,
1/1/11 Aa /AA- 250,000 250,378
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Monmouth County, New Jersey Improve-
ment Authority Revenue Bonds, Millston
Township Board of Education Project,
5.55%, 2/15/18 NR /AA 85,000 81,100
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New Brunswick, New Jersey Parking
Authority Revenue Refunding Bonds,
Series A, FGIC Insured, 6.50%, 9/1/19 Aaa /AAA 150,000 157,371
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New Jersey Economic Development
Authority Pollution Control Revenue
Bonds, Public Service Electric & Gas
Co. Project, Series A, MBIA Insured,
6.40%, 5/1/32 Aaa /AAA 500,000 505,394
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New Jersey Health Care Facilities
Financing Authority Revenue Bonds,
Centrastate Medical Center, Series A,
AMBAC Insured, 6%, 7/1/21 Aaa /AAA /AAA 100,000 100,757
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New Jersey Health Care Facilities
Financing Authority Revenue Bonds,
Prerefunded, Series C, 8.60%, 7/1/17 Aaa /AAA 620,000 683,415
-----------------------------------------------------------------------------------------
New Jersey Sports & Exposition
Authority Revenue Bonds, Convention
Center Luxury Tax, Series A, MBIA
Insured, 6.25%, 7/1/20 Aaa /AAA 80,000 82,497
-----------------------------------------------------------------------------------------
New Jersey State Housing & Mtg.
Finance Agency Revenue Bonds, Home
Buyer, Series J, MBIA Insured,
6.20%, 10/1/25 Aaa /AAA 200,000 196,756
</TABLE>
5 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
STATEMENT OF INVESTMENTS (UNAUDITED)(CONTINUED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
RATINGS: MOODY'S/ FACE MARKET VALUE
MUNICIPAL BONDS AND NOTES (CONTINUED) S&P'S/FITCH'S AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
- -------------------------------------------------------------------------------------------------
New Jersey State Housing & Mtg.
Finance Agency Revenue Refunding
Bonds, Series 1, 6.70%, 11/1/28 NR /A+ 150,000 151,744
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New Jersey State Turnpike Authority
Revenue Bonds, Series C, 6.50%, 1/1/16 A /A /A 600,000 643,982
-----------------------------------------------------------------------------------------
Ocean County, New Jersey Utilities
Authority Wastewater Revenue Refunding
Bonds, Series A, 5.75%, 1/1/18 Aa /AA- 390,000 378,513
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Passaic Valley, New Jersey General
Obligation Bonds, FGIC Insured, 5.70%,
3/1/15 Aaa /AAA /AAA 100,000 96,778
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Passaic Valley, New Jersey Community
Water Supply Revenue Bonds, Prere-
funded, FGIC Insured, 6.40%, 12/15/22 Aaa /AAA /AAA 200,000 222,800
-----------------------------------------------------------------------------------------
Pennsauken Township, New Jersey Board
of Education Certificates of Partici-
pation, BIG Insured, 7.70%, 7/15/09 Aaa /AAA 500,000 560,152
-----------------------------------------------------------------------------------------
Port Authority of New York & New
Jersey Consolidated Revenue Bonds,
Ninety-Fourth Series, 6%, 12/1/14 A1 /AA- /AA- 200,000 203,462
-----------------------------------------------------------------------------------------
Sussex County, New Jersey General
Obligation Bonds, General Improvement,
AMBAC Insured, 6%, 4/1/07 Aaa /AAA /AAA 135,000 140,865
-----------------------------------------------------------------------------------------
University of New Jersey Medicine &
Dentistry Revenue Bonds, Series C,
7.20%, 12/1/19 A /AA 500,000 548,013
-----------------------------------------------------------------------------------------
University of New Jersey Medicine &
Dentistry Revenue Bonds, Series E,
5.75%, 12/1/21 A /AA 50,000 49,065
-----------------------------------------------------------------------------------------
Woodbridge Township, New Jersey
Revenue Refunding Bonds, Sewer
Utility, Series B, 5%, 9/15/09 A1 /NR 95,000 88,051
------------
8,243,369
- -----------------------------------------------------------------------------------------------
U.S. POSSESSIONS - 21.1%
-----------------------------------------------------------------------------------------
Guam Power Authority Revenue Bonds,
Series A, 6.30%, 10/1/22 NR /BBB 185,000 177,774
-----------------------------------------------------------------------------------------
Puerto Rico Commonwealth General
Obligation Refunding Bonds, 5.50%,
7/1/13 Baa1/A 100,000 94,752
-----------------------------------------------------------------------------------------
Puerto Rico Commonwealth General
Obligation Refunding Bonds, Series A,
6%, 7/1/14 Baa1/A 100,000 100,000
-----------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway &
Transportation Authority Highway
Revenue Refunding Bonds, Series V,
6.625%, 7/1/12 Baa1/A 300,000 313,854
-----------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway &
Transportation Authority Highway
Revenue Refunding Bonds, Series W,
5.25%, 7/1/20 Baa1/A 50,000 44,292
-----------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority
Revenue Bonds, Unrefunded Balance,
Series O, 7.125%, 7/1/14 Baa1/A- 540,000 573,767
-----------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority
Revenue Refunding Bonds, Series U,
6%, 7/1/14 Baa1/A- 200,000 199,103
-----------------------------------------------------------------------------------------
Puerto Rico Housing Bank & Finance
Agency Single Family Mtg. Revenue
Bonds, Affordable Housing Mtg. -
Portfolio I, 6.25%, 4/1/29 Aaa /AAA 400,000 398,278
-----------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority
Guaranteed Public Education & Health
Facilities Revenue Refunding Bonds,
Series M, 5.75%, 7/1/15 Baa1/A 50,000 48,217
-----------------------------------------------------------------------------------------
Virgin Islands Housing Finance
Authority Single Family Revenue
Refunding Bonds, GNMA Mtg.-Backed
Securities, Series A, 6.50%, 3/1/25 NR /AAA 350,000 352,234
-----------
2,302,271
</TABLE>
6 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
STATEMENT OF INVESTMENTS (UNAUDITED)(CONTINUED)
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS, AT VALUE (Cost $10,410,548) 96.9% $10,545,640
OTHER ASSETS NET OF LIABILITIES 3.1 333,102
------ -----------
NET ASSETS 100.0% $10,878,742
====== ===========
</TABLE>
Distribution of investments by industry, as a percentage of
total investments at value, is as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
Industry Market Value Percent
-------- ------------ --------
Utilities $ 4,120,714 39.1%
Education 1,433,021 13.6
Transportation 1,362,961 12.9
Housing 1,099,013 10.4
General Obligation Bonds 907,490 8.6
Hospitals 784,172 7.4
Pollution Control 505,394 4.8
Lease/Rental 250,378 2.4
Special Tax Bonds 82,497 0.8
----------- ------
$10,545,640 100.0%
=========== ======
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments, at value (cost $10,410,548)
- see accompanying statement $10,545,640
Cash 29,519
Receivables:
Interest 235,385
Shares of beneficial interest sold 123,897
Other 5,545
-----------
Total assets 10,939,986
-----------
LIABILITIES
Payables and other liabilities:
Dividends 30,406
Shares of beneficial interest redeemed 23,892
Distribution and
service plan fees - Note 4 3,403
Trustees' fees 1,670
Other 1,873
-----------
Total liabilities 61,244
-----------
NET ASSETS $10,878,742
===========
COMPOSITION OF
NET ASSETS
Paid-in capital $10,739,402
Accumulated net realized gain
from investment transactions 4,248
Net unrealized appreciation
on investments - Note 3 135,092
-----------
Net assets $10,878,742
===========
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share
(based on net assets of $6,739,748 and 611,065
shares of beneficial interest outstanding) $11.03
Maximum offering price per share (net asset
value plus sales charge of 4.75% of
offering price) $11.58
Class B Shares:
Net asset value, redemption price and
offering price per share (based on net
assets of $4,138,994 and 375,406 shares
of beneficial interest outstanding) $11.03
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT
INCOME
Interest $266,601
---------
EXPENSES
Management fees - Note 4 25,570
Distribution and service plan fees:
Class A - Note 4 3,812
Class B - Note 4 15,276
Legal and auditing fees 7,320
Shareholder reports 7,055
Trustees' fees and expenses 4,791
Transfer and shareholder
servicing agent fees - Note 4 4,678
Insurance expenses 2,633
Registration and filing fees:
Class A 918
Class B 314
Custodian fees and expenses 312
Other 1,492
---------
Total expenses 74,171
Less assumption of expenses
by Oppenheimer Management
Corporation - Note 4 (34,019)
---------
Net expenses 40,152
---------
NET INVESTMENT INCOME 226,449
---------
REALIZED AND
UNREALIZED GAIN
ON INVESTMENTS
Net realized gain on investments 9,827
Net change in unrealized appreciation
or depreciation on investments 427,583
---------
Net realized and unrealized gain on investments 437,410
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $663,859
=========
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994(1)
<S> <C> <C>
OPERATIONS Net investment income $ 226,449 $ 190,459
Net realized gain (loss)
on investments 9,827 (5,176)
Net change in unrealized
appreciation or
depreciation on investments 427,583 (292,491)
----------- -----------
Net increase (decrease)
in net assets resulting
from operations 663,859 (107,208)
----------- -----------
DIVIDENDS TO Dividends from net investment income:
SHAREHOLDERS Class A ($.3054 and $.493 per share,
respectively) (143,997) (116,609)
Class B ($.2657 and $.416 per share,
respectively) (82,855) (73,850)
BENEFICIAL Net increase in net assets resulting
INTETEST from Class A beneficial interest
TRANSACTIONS transactions - Note 2 2,606,872 4,048,476
Net increase in net assets resulting
from Class B beneficial interest
transactions - Note 2 972,286 3,111,768
----------- -----------
NET ASSETS Total increase 4,016,165 6,862,577
Beginning of period 6,862,577 --
----------- -----------
End of period (including
undistributed net investment
income of $403 for 1994) $10,878,742 $6,862,577
=========== ===========
</TABLE>
1. For the period from March 1, 1994 (commencement of operations) to
December 31, 1994.
See accompanying Notes to Financial Statements.
10 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B
SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED ENDED PERIOD ENDED
JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994(1) (UNAUDITED) 1994(1)
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value,
beginning of period $ 10.41 $11.43 $ 10.40 $11.43
Income (loss) from
investment operations:
Net investment income .31 .49 .27 .41
Net realized and unrealized
gain (loss) on investments .62 (1.02) .63 (1.02)
-------- ------- -------- -------
Total income (loss) from
investment operations .93 (.53) .90 (.61)
-------- ------- -------- -------
Dividends to shareholders:
Dividends from net
investment income (.31) (.49) (.27) (.42)
-------- ------- -------- -------
Net asset value,
end of period $ 11.03 $10.41 $ 11.03 $10.40
======== ======= ======== =======
TOTAL RETURN, AT NET ASSET
VALUE(2) 8.98% (4.63)% 8.69% (5.39)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $6,740 $3,877 $4,139 $2,986
Average net assets
(in thousands) $5,186 $2,506 $3,428 $1,841
Number of shares
outstanding at end
of period (in thousands) 611 373 375 287
Ratios to average net assets:
Net investment income 5.58%(3) 5.57%(3) 4.89%(3) 4.76%(3)
Expenses, before voluntary
assumption by the Manager
or Distributor 1.44%(3) 1.46%(3) 2.28%(3) 2.29%(3)
Expenses, net of voluntary
assumption by the
Manager or Distributor .65%(3) .31%(3) 1.38%(3) 1.14%(3)
Portfolio turnover rate(4) 6.8% 17.3% 6.8% 17.3%
</TABLE>
1. For the period from March 1, 1994 (commencement of operations) to
December 31, 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
year. Sales charges are not reflected in the total returns. Total returns
are not annualized for periods of less than one full year.
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 period ended June 30, 1995 were $3,884,222
and $560,719, respectively.
See accompanying Notes to Financial Statements.
11 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer New Jersey Tax-Exempt Fund (the Fund) 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 the close of the
New York Stock Exchange on each trading day. Listed and unlisted securities
for which such information is regularly reported are valued at the last sale
price of the day or, in the absence of sales, at values based on the closing
bid or asked price or the last sale price on the prior trading day. Long-
term and short-term "non-money market" debt securities are valued by a
portfolio pricing service approved by the Board of Trustees. Such securities
which cannot be valued by the approved portfolio pricing service are valued
using dealer-supplied valuations provided the Manager is satisfied that the
firm rendering the quotes is reliable and that the quotes reflect current
market value, or under consistently applied procedures established by the
Board of Trustees to determine fair value in good faith. Short-term "money
market type" debt securities having a remaining maturity of 60 days or less
are valued at cost (or last determined market value) adjusted for
amortization to maturity of any premium or discount.
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 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.
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. A payment
of $422 was made to a retired trustee during the six months ended June 30,
1995.
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.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income
(loss) and net realized gain (loss) may differ for financial statement and
tax purposes primarily because of premium amortization. The character of the
distributions made during the year from net investment income or net realized
gains may differ from their ultimate characterization for federal income tax
purposes. Also, due to timing of dividend distributions, the fiscal year in
which amounts are distributed may differ from the year that the income or
realized gain (loss) was recorded by the Fund.
12 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
OTHER. Investment transactions are accounted for on the date the investments
are purchased or sold (trade date). 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.
Original issue discount on securities purchased is amortized over the life of
the respective securities, in accordance with federal income tax
requirements. 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 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>
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1995 DECEMBER 31,1994(1)
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Class A:
Sold 268,396 $2,934,215 447,660 $4,853,160
Dividends
reinvested 8,524 93,085 6,784 72,067
Redeemed (38,465) (420,428) (81,834) (876,751)
-------- ----------- -------- -----------
Net increase 238,455 $2,606,872 372,610 $4,048,476
======== =========== ======== ===========
Class B:
Sold 137,413 $1,507,853 294,677 $3,191,135
Dividends
reinvested 4,894 53,335 4,335 45,898
Redeemed (54,080) (588,902) (11,833) (125,265)
-------- ----------- -------- -----------
Net increase 88,227 $ 972,286 287,179 $3,111,768
======== =========== ======== ===========
</TABLE>
1. For the period from March 1, 1994 (commencement of operations) to
December 31, 1994 for both Class A and Class B Shares.
3. UNREALIZED GAINS
AND LOSSES ON INVESTMENTS
At June 30, 1995, net unrealized appreciation on investments of $135,092 was
composed of gross appreciation of $167,921, and gross depreciation of
$32,829.
4. MANAGEMENT FEES AND OTHER
TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of .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.
13 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
4. MANAGEMENT FEES AND OTHER
TRANSACTIONS WITH AFFILIATES (CONTINUED)
For the six months ended June 30, 1995, commissions (sales charges paid by
investors) on sales of Class A shares totaled $78,684, of which $17,144 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B
shares totaled $48,732, of which $2,024 was paid to an affiliated
broker/dealer.
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.
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 six months ended June
30, 1995, OFDI retained $14,773 as reimbursement for Class B sales
commissions and service fee advances, as well as financing costs.
14 Oppenheimer New Jersey Tax-Exempt Fund
<PAGE>
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
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 LLP
LEGEL 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.
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 possible loss of the
principal amount invested.
15 Oppenheimer New Jersey Tax-Exempt Fund
