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OPPENHEIMER FLORIDA 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
5.04%
Class B
4.53%
BEAT THE AVERAGE
Total Return for the 1-Year
Period Ended 6/30/95:
Oppenheimer Florida
Tax-Exempt Fund
(at net asset value)(2)
9.08%
Lipper Florida Municipal
Debt Fund Average(5)
8.27%
HOW YOUR FUND IS MANAGED
Oppenheimer Florida Tax-Exempt Fund invests in a diversified
portfolio of Florida municipal bonds. As a Fund shareholder, you
receive income that is free from federal taxes and also receive
the benefit of owning an investment whose shares are exempt from
Florida intangible personal property taxes.(1) Your dividends
don't increase your taxable income the way taxable investments
do, so you can keep more of what you earn.
Florida Tax-Exempt Fund is managed by an experienced team of
municipal bond specialists who research nvestments 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 10.01% for Class A shares and 9.58% 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 10/1/93 were 3.89% and 0.58%,
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 10/1/93 were 3.14% and 0.50%, respectively.(3)
OUTLOOK
"We belive 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 yer, 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 10/1/93 (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 10/1/93
(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 63 Florida municipal debt
funds. The average is shown for comparative purposes only.
Oppenheimer Florida Tax-Exempt Fund is characterized by Lipper as
a Florida municipal debt fund. Lipper performance does not take
sales charges into consideration.
2 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
DEAR OPPENHEIMERFUNDS SHAREHOLDER,
DONALD W. SPIRO
President
Oppenheimer
Florida 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 benefited 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 of 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 Florida Tax-Exempt Fund
<PAGE>
ROBERT PATTERSON
Portfolio Manager
Q + A
AN INTERVIEW WITH YOUR FUND'S MANAGER.
THE FUND HAS PERFORMED VERY WELL OVER THE LAST 12 MONTHS, AS IT
BEAT THE LIPPER FLORIDA 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. 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.
4 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
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 - 98.1%
---------------------------------------------------------------------------------------------------
FLORIDA - 83.7%
----------------------------------------------------------------------------------------------
Alachua County, Florida Health
Facilities Authority Health Facilities
Revenue Refunding Bonds, Santa Fe
Healthcare Facilities Project, 6%,
11/15/09 Baa1/BBB+ $1,000,000 $ 955,453
--------------------------------------------------------------------------------------------
Brevard County, Florida Housing
Finance Authority Single Family Mtg.
Revenue Bonds, 6.70%, 9/1/27 Aaa /NR 1,000,000 1,017,178
--------------------------------------------------------------------------------------------
Broward County, Florida Resource
Recovery Revenue Bonds, Broward Waste
Energy-LP North Project, 7.95%,
12/1/08 A /A- 760,000 836,476
--------------------------------------------------------------------------------------------
Broward County, Florida School
District General Obligation Bonds,
Prerefunded, 7.125%, 2/15/08 Aaa /AAA 500,000 551,134
--------------------------------------------------------------------------------------------
Clay County, Florida Housing Finance
Authority Revenue Bonds, Single
Family Mtg., 6.55%, 3/1/28 Aaa /NR /NR 1,100,000 1,122,360
--------------------------------------------------------------------------------------------
Collier County, Florida Health
Facilities Authority Health Facility
Revenue Refunding Bonds, The Moorings,
Inc. Project, 7%, 12/1/19 NR /BBB+/A- 1,000,000 997,598
--------------------------------------------------------------------------------------------
Dade County, Florida Aviation Revenue
Refunding Bonds, Series Y, 5.50%,
10/1/11 Aa /A 600,000 581,774
--------------------------------------------------------------------------------------------
Dade County, Florida General
Obligation Refunding Bonds, FGIC
Insured, 12%, 10/1/04 Aaa /AAA /AAA 100,000 149,900
--------------------------------------------------------------------------------------------
Dade County, Florida Industrial
Development Authority Revenue Bonds,
Miami Cerebral Palsy Services Project,
8%, 6/1/22 NR /NR 1,000,000 990,084
--------------------------------------------------------------------------------------------
Florida Housing Finance Agency Revenue
Bonds, Maitland Club Apts. Project,
Series B-1, AMBAC Insured, 6.75%,
8/1/14 Aaa /AAA /AAA 1,000,000 1,028,254
--------------------------------------------------------------------------------------------
Florida State Board of Education
Capital Outlay Public Education
General Obligation Bonds, Prerefunded,
Series A, 7.25%, 6/1/23 Aaa /AAA 1,210,000 1,366,734
--------------------------------------------------------------------------------------------
Florida State Board of Education
Capital Outlay Public Education General
Obligation Bonds, Series A, 6.75%,
6/1/21 Aa /AA 300,000 319,325
--------------------------------------------------------------------------------------------
Florida State Board of Education
Capital Outlay Public Education
General Obligation Refunding Bonds,
Series D, 5.125%, 6/1/22 Aa /AA /AA 700,000 619,903
--------------------------------------------------------------------------------------------
Florida State Division Bond Finance
Department General Services Revenue
Bonds, Consolidated & Recreation Lands-
Department of Natural Resources,
Prerefunded, Series A, MBIA Insured,
7.25%, 7/1/06 Aaa /AAA 1,000,000 1,097,198
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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 750,000 745,858
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Florida State Division of Finance
Department Revenue Bonds, Sunshine
Skyway Project, Prerefunded, 10.25%,
6/1/08 Aaa /AAA 1,000,000 1,129,053
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Greater Orlando Aviation Authority
Revenue Refunding Bonds, Orlando,
Florida Airport Facilities, Series A,
AMBAC Insured, 5.50%, 10/1/18 Aaa /AAA /AAA 280,000 258,914
--------------------------------------------------------------------------------------------
Hillsborough County, Florida Aviation
Authority Revenue Refunding Bonds,
Tampa International Airport, Series B,
FGIC Insured, 5.50%, 10/1/13 Aaa /AAA /AAA 900,000 855,185
</TABLE>
5 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
STATEMENT OF INVESTMENTS (UNAUDITED)(CONTINUED)
<TABLE>
<CAPTION>
<S> <C> <C>
RATINGS: MOODY'S/ FACE MARKET VALUE
MUNICIPAL BONDS AND NOTES (CONTINUED) S&P'S/FITCH'S AMOUNT SEE NOTE
---------------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
---------------------------------------------------------------------------------------------
Hillsborough County, Florida Industrial
Development Authority Pollution
Control Revenue Refunding Bonds, Tampa
Electric Project, 8%, 5/1/22 Aa3 /AA $1,000,000 $ 1,184,849
---------------------------------------------------------------------------------------------
Jacksonville, Florida Electric
Authority Revenue Bonds, Electric
Systems Project, Series Three-B,
5.25%, 10/1/19 Aa1 /AA /AA+ 650,000 591,140
--------------------------------------------------------------------------------------------
Orange County, Florida Housing Finance
Authority Single Family Mtg. Revenue
Bonds, GNMA & FNMA Mtg.-Backed
Securities Program, 6.85%, 10/1/27 Aaa /AAA 1,000,000 1,029,103
--------------------------------------------------------------------------------------------
Orlando & Orange County, Florida
Expressway Authority Revenue Refunding
Bonds, Sr. Lien, AMBAC Insured, 5.25%,
7/1/14 Aaa /AAA /AAA 100,000 92,632
--------------------------------------------------------------------------------------------
Orlando & Orange County, Florida
Expressway Authority Revenue Refunding
Bonds, Sr. Lien, FGIC Insured, 5.50%,
7/1/18 Aaa /AAA /AAA 720,000 677,963
--------------------------------------------------------------------------------------------
Pinellas County, Florida Health
Facilities Authority Hospital Revenue
Bonds, Bayfront Obligation Group,
Series A, MBIA Insured, 5.60%, 7/1/23 Aaa /AAA 500,000 469,177
--------------------------------------------------------------------------------------------
South Florida Water Management
District Revenue Refunding Bonds,
Special Obligation Land Acquisition,
AMBAC Insured, 5.25%, 10/1/15 Aaa /AAA 720,000 668,250
--------------------------------------------------------------------------------------------
St. Petersburg, Florida Public
Improvement Revenue Refunding Bonds,
MBIA Insured, 6.375%, 2/1/12 Aaa /AAA 750,000 780,086
--------------------------------------------------------------------------------------------
Vero Beach, Florida Electric Revenue
Refunding Bonds, Series A, MBIA
Insured, 5.375%, 12/1/21 Aaa /AAA 500,000 459,103
--------------------------------------------------------------------------------------------
West Palm Beach, Florida Utility
System Revenue Bonds, Series B, FGIC
Insured, 5.40%, 10/1/23 Aaa /AAA /AAA 850,000 781,992
-----------
21,356,676
--------------------------------------------------------------------------------------------------
U.S. POSSESSIONS - 14.4%
--------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Aqueduct &
Sewer Authority Revenue Bonds,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa /AAA 200,000 273,022
-------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway &
Transportation Authority Revenue
Bonds, Prerefunded, Series T, 6.625%,
7/1/18 NR /AAA 500,000 564,056
-------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway &
Transportation Authority Revenue
Refunding Bonds, Series X, 5.25%,
7/1/21 Baa1/A 700,000 619,588
-------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority
Revenue Refunding Bonds, Series U, 6%,
7/1/14 Baa1/A- 700,000 696,858
--------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority
Guaranteed Public Education & Health
Facilities Revenue Bonds, Prerefunded,
Series L, 6.875%, 7/1/21 Aaa /AAA 600,000 685,749
--------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority
Guaranteed Public Education & Health
Facilities Revenue Refunding Bonds,
Series M, 5.50%, 7/1/21 Baa1/A 300,000 275,218
--------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority
Revenue Guaranteed Bonds, Prerefunded,
Series K, 6.875%, 7/1/21 Aaa /AAA 500,000 571,457
-----------
3,685,948
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TOTAL INVESTMENTS, AT VALUE (COST $25,239,524) 98.1% 25,042,624
--------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.9 492,115
------ -----------
NET ASSETS 100.0% $25,534,739
====== ===========
</TABLE>
6 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
STATEMENT OF INVESTMENTS (UNAUDITED)(CONTINUED)
Distribution of investments by industry, as a percentage of
total investments at value, is as follows:
<TABLE>
<CAPTION>
Industry Market Value Percent
-------- ------------ -------
<S> <C> <C>
Transportation $ 5,559,251 22.2%
Utilities 5,491,691 21.9
General Obligation Bonds 4,539,420 18.1
Housing 4,196,894 16.8
Hospitals 3,412,312 13.6
Special Tax Bonds 1,843,056 7.4
----------- -----
$25,042,624 100.0%
=========== =====
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS Investments, at value (cost $25,239,524)
- see accompanying statement $25,042,624
Cash 48,755
Receivables:
Interest 445,358
Shares of beneficial interest sold 170,554
Deferred organization costs 2,435
Other 3,105
-----------
Total assets 25,712,831
-----------
LIABILITIES Payables and other liabilities:
Dividends 81,894
Shares of beneficial interest redeemed 50,753
Trustees' fees 23,898
Distribution and service plan fees - Note 4 8,993
Shareholder communications 1,781
Transfer and shareholder servicing agent fees 389
Other 10,384
-----------
Total liabilities 178,092
-----------
NET ASSETS $25,534,739
===========
COMPOSITION OF Paid-in capital $26,275,908
NET ASSETS Accumulated net realized loss
from investment transactions (544,269)
Net unrealized depreciation on
investments - Note 3 (196,900)
-----------
Net assets $25,534,739
===========
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share
(based on net assets of $14,497,573 and 1,323,097
shares of beneficial interest outstanding) $10.96
Maximum offering price per share (net asset value
plus sales charge of 4.75% of offering price) $11.51
Class B Shares:
Net asset value, redemption price and
offering price per share (based on net assets
of $11,037,166 and 1,005,884 shares of
beneficial interest outstanding) $10.97
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
STATEMENT OF OPERATIONS For the Six Months Ended
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME Interest $ 703,512
----------
EXPENSES Management fees - Note 4 67,819
Distribution and service plan fees:
Class A - Note 4 9,700
Class B - Note 4 43,083
Trustees' fees and expenses 29,547
Legal and auditing fees 11,899
Transfer and shareholder
servicing agent fees - Note 4 11,639
Shareholder reports 5,961
Custodian fees and expenses 455
Registration and filing fees:
Class A 959
Class B 909
Other 4,075
----------
Total expenses 186,046
Less assumption of expenses by
Oppenheimer Management Corporation - Note 4 (115,418)
----------
Net expenses 70,628
----------
NET INVESTMENT INCOME 632,884
----------
REALIZED AND Net realized loss on investments (93,968)
UNREALIZED GAIN (LOSS) Net change in unrealized appreciation
ON INVESTMENTS or depreciation on investments 1,468,682
----------
Net realized and unrealized gain on investments 1,374,714
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,007,598
==========
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994
------------- ------------
<S> <C> <C> <C>
OPERATIONS Net investment income $ 632,884 $ 932,745
Net realized loss on investments (93,968) (455,786)
Net change in unrealized
appreciation or depreciation on
investments 1,468,682 (1,795,681)
---------- ----------
Net increase (decrease) in net
assets resulting from
operations 2,007,598 (1,318,722)
DIVIDENDS TO Dividends from net
SHARESHOLDERS investment income:
Class A ($.317 and $.637 per share,
respectively) (383,946) (574,828)
Class B ($.276 and $.556 per share,
respectively) (243,453) (357,917)
BENEFICIAL INTEREST Net increase in net assets resulting
TRANSACTIONS from Class A beneficial interest
transactions - Note 2 1,694,224 6,272,842
Net increase in net assets resulting
from Class B beneficial interest
transactions - Note 2 2,476,119 4,026,577
----------- -----------
NET ASSETS Total increase 5,550,542 8,047,952
Beginning of period 19,984,197 11,936,245
----------- -----------
End of period (including
overdistributed net investment
income of $5,485 for 1994) $25,534,739 $19,984,197
=========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B
-------------------------------------- -------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31, JUNE 30, 1995 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1994 1993(1) (UNAUDITED) 1994 1993(1)
----------- ---- ------- ----------- ---- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 10.26 $ 11.79 $ 11.43 $ 10.27 $ 11.81 $ 11.43
Income (loss) from investment operations:
Net investment income .32 .64 .14 .28 .56 .12
Net realized and unrealized gain (loss)
on investments .70 (1.53) .36 .70 (1.54) .38
-------- -------- -------- -------- -------- -------
Total income (loss) from investment
operations 1.02 (.89) .50 .98 (.98) .50
-------- -------- -------- -------- -------- -------
Dividends to shareholders from net
investment income (.32) (.64) (.14) (.28) (.56) (.12)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 10.96 $ 10.26 $ 11.79 $ 10.97 $ 10.27 $ 11.81
======== ======== ======== ======== ======== ========
TOTAL RETURN, AT NET ASSET VALUE(2) 10.01% (7.66)% 4.39% 9.58% (8.42)% 4.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $14,498 $11,992 $7,062 $11,037 $7,992 $4,874
Average net assets (in thousands) $13,160 $9,741 $2,471 $9,664 $6,987 $2,304
Number of shares outstanding at end of
period (in thousands) 1,323 1,169 599 1,006 778 413
Ratios to average net assets:
Net investment income 5.94%(3) 5.90% 5.08%(3) 5.11%(3) 5.13% 4.29%(3)
Expenses, before voluntary assumption by
the Manager or Distributor 1.33%(3) 1.25% 1.89%(3) 2.18%(3) 1.99% 2.20%(3)
Expenses, net of voluntary assumption by
the Manager or Distributor .29%(3) .29% --(3) 1.08%(3) 1.03% .38%(3)
Portfolio turnover rate(4) 16.0% 30.4% -- 16.0% 30.4% --
</TABLE>
1. For the period from October 1, 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. 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 $8,021,495 and $3,538,555,
respectively.
See accompanying Notes to Financial Statements.
11 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1.SIGNIFICANT ACCOUNTING
POLICIES
Oppenheimer Florida 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 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 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. During the six months ended June 30, 1995, a provision of
$23,111 was made for the Fund's projected benefit obligations, and a
payment of $422 was made to a retired trustee, resulting in an
accumulated liability of $22,689 at June 30, 1995.
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 effective 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.
12 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
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 thedistributions made during the year from net investment
income or net realized gains may differ from their ultimate characteri-
zation 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.
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.
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.
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.
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 YEARENDED
JUNE 30, 1995 DECEMBER 31, 1994
--------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Class A:
Sold 349,713 $ 3,778,520 1,094,994 $11,835,206
Dividends
reinvested 14,077 152,587 23,730 253,862
Redeemed (209,952) (2,236,883) (548,471) (5,816,226)
--------- ------------ ---------- ------------
Net increase 153,838 $ 1,694,224 570,253 $ 6,272,842
========= ============ ========== ============
Class B:
Sold 265,960 $ 2,895,569 481,494 $ 5,234,804
Dividends
reinvested 6,999 75,953 10,745 114,966
Redeemed (45,148) (495,403) (126,967) (1,323,193)
-------- ------------ ---------- ------------
Net increase 227,811 $ 2,476,119 365,272 $ 4,026,577
======== ============ ========== ============
</TABLE>
3.UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At June 30, 1995, net unrealized depreciation on investments of $196,900
was composed of gross appreciation of $267,056, and gross depreciation
of $463,956.
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
a fee of .60% on the first $200 million of average annual 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 Florida 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 $58,801,
of which $10,156 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 $109,258, of
which $304 was paid to an affiliated broker/dealer. During the six
months ended June 30, 1995, OFDI received contingent deferred sales
charges of $20,871 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.
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 totermination or discontinuance of the plan. During the six
months ended June 30, 1995, OFDI retained $38,789 as reimbursement
for Class B sales commissions and service fee advances, as well
as financing costs.
14 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
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
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 SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
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.
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 Florida Tax-Exempt Fund
