[cover page]
OPPENHEIMER NEW JERSEY MUNICIPAL FUND
Semiannual Report January 31, 1997
OPPERNHEIMERFUNDS SM[LOGO]
THE RIGHT WAY TO INVEST
<PAGE>
This Fund is for NEW JERSEY residents who need a source of income that's EXEMPT
from current TAXES.
HOW YOUR FUND IS MANAGED
Oppenheimer New Jersey Municipal 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.
PERFORMANCE
Cumulative total returns for the six months ended 1/31/97 were 3.64% for Class A
shares, 3.24% for Class B shares and 3.30% for Class C shares, without deducting
sales charges.(2)
Your Fund's average annual total returns for Class A shares for the 1-year
period ended 12/31/96 and since inception on 3/1/94 were 0.43% and 3.29%,
respectively. For Class B shares, average annual total returns for the
1-year period ended 12/31/96 and since inception on 3/1/94 were (0.34)%
and 3.26%, respectively. For Class C shares, average annual total returns for
the 1-year period ended 12/31/96 and since inception on 8/29/95 were 3.57% and
6.51%, respectively.(3)
YIELD
STANDARDIZED YIELDS
For the 30 Days Ended 1/31/97: (4)
Class A 4.18%
Class B 3.63%
Class C 3.61%
BEAT THE AVERAGE
Total Return for the 1-Year Period
Ended 12/31/96:
Oppenheimer New Jersey
Municipal Fund Class A shares
(at net asset value)(2) 5.44%
Lipper New Jersey Municipal Debt
Fund Average for 53 New Jersey
Municipal Debt Funds as of 12/31/96 (5) 3.25%
OUTLOOK
"Because of the generally conservative design of the Fund, we expect to
continue to manage a relatively high yield, low volatility investment vehicle
for New Jersey investors to earn double tax-exempt income."
Caryn Halbrecht, Portfolio Manager
January 31, 1997
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF 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. For more complete
information, please review the prospectus carefully before you invest. As of
October 10, 1996, the Fund's name was changed from "Oppenheimer New Jersey
Tax-Exempt Fund."
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. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
3. Class A returns include the current maximum initial sales charge of 4.75%.
Class B returns include the applicable contingent deferred sales charge of 5%
(1-year) and 3% (since inception). Class C returns include the 1% contingent
deferred sales charge for the 1-year result. An explanation of the different
performance calculations is in the Fund's prospectus. Class B and Class C shares
are subject to an annual 0.75% asset-based sales charge.
4. Standardized yield is based on net investment income for the 30-day period
ended 1/31/97. Falling net asset values will tend to artificially raise yields.
5. Source: Lipper Analytical Services, 12/31/96. The Lipper average is shown
for comparative purposes only. Oppenheimer New Jersey Municipal Fund is
characterized by Lipper as a New Jersey municipal debt fund. Lipper performance
is based on total return and does not take sales charges into account.
2 Oppenheimer New Jersey Municipal Fund
<PAGE>
BRIDGET A. MACASKILL
President
Oppenheimer New Jersey
Municipal Fund
Dear Shareholder,
It's true that the stock market of 1996 received virtually all the
recognition this past year. While excitement during the second half of the year
revolved around equities, the bond market was experiencing a quiet, yet solid,
rebound.
Some analysts anticipated that moderated economic growth and low
inflation would help stabilize interest rates, and even lower them--all factors
that would be beneficial for the bond market. During the second half of 1996,
that's exactly how events unfolded. In October, when the economy was
characterized by a firm dollar, low inflation and slow growth, the Federal
Reserve responded by maintaining its hands-off approach to interest rates. It
appeared that earlier concerns about rapid inflationary growth had been
overblown, and interest rates declined soon afterward. With continued,
sustainable, non-inflationary growth of around 2% to 2.5%, and no interest rate
raises expected from the Federal Reserve, the economy seemed to have settled
into a comfortable pattern of neither too little nor too much growth.
Moving ahead to 1997, President Clinton has pledged to focus on
balancing the federal budget during his second term. In fact, politicians from
every camp are discussing their intent to reduce the budget, perhaps through a
balanced budget amendment. Such a move should prove beneficial for the municipal
bond market. The other good news for municipal bond investors is that President
Clinton has no plans of initiating a flat tax, a proposal that would have
eliminated the tax advantages of municipal bonds.
On the other hand, investors may have experienced some volatility in
the income stream from municipal bond funds. This is primarily because the
availability of quality bonds paying high dividends has decreased over the past
few years, making it more difficult to find value bonds. We believe that
over the long term and on a tax-adjusted basis, our funds will continue to
offer value with the potential for higher total return.
When you consider the combination of these developments last year--a
sustained economic growth pattern, the assurance of a balanced federal budget
and the dissipated threat of a flat tax--the tax advantages of municipal bond
investing become much more attractive.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/S/ BRIDGET A. MACASKILL
Bridget A. Macaskill
February 24, 1997
3 Oppenheimer New Jersey Municipal Fund
<PAGE>
CARYN HALBRECHT
Portfolio Manager
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
Q + A
HOW HAS THE FUND PERFORMED?
Our performance has been relatively strong. We attribute the Fund's success to
our strategy of holding municipal bonds that offer potentially high after-tax
income. As a result of this strategic positioning, Oppenheimer New Jersey
Municipal Fund finished 1st out of 53 New Jersey municipal debt funds ranked by
Lipper Analytical Services for the 1-year period ended 12/31/96.(1)
WHAT INVESTMENT STRATEGIES MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
A major factor in the Fund's performance was our ability to respond to fluctu-
ating interest rates by adjusting the portfolio's average maturity. In the
early part of the period, we maintained a relatively short average duration,
which is a measure of the portfolio's price sensitivity to changes in interest
rates. This move was particularly helpful as interest rates were rising.
However, during the second half of the period when interest rates began to
decline, we responded by extending the portfolio's duration, a strategy which
served to benefit the Fund as the bond market rallied.
During the period, the Fund has been concentrated in cushion bonds. These are
bonds that have relatively high coupons, high current yield and low price
volatility. Because higher-yielding bonds often have a lower rating, they
require careful analysis of the risk of default.
In addition, we prefer revenue bonds--such as water and sewer, toll roads and
transportation bonds--to general obligation bonds. Revenue bonds maintain user
fees that generate a revenue stream. These bonds are more in step with today's
economic climate, where the policies we see coming out of Washington place more
pressure on states and localities to produce their own revenues and services.
With revenue bonds, the primary purpose is to finance an essential service such
as water and sewer, and to that extent, they encounter less political pressure
and have the capacity to charge the fees that are necessary to maintain the
services.(2)
WHAT AREAS ARE YOU CURRENTLY TARGETING?
We are adding to the housing sector, where yields are attractive. In addition,
the healthcare industry has shown tremendous growth throughout New Jersey and
we've been able to benefit by investing in hospital bonds. Lastly, for diver-
sification, we've added some Puerto Rico highway bonds.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We continue to maintain a positive outlook and believe municipal bonds
offer good value. Currently, long-term interest rates are low, there
doesn't appear to be any real inflation on the horizon, and we've seen steady,
moderate economic growth in the United States for some time. Even if interest
rates were to fall over the near term, bonds would appreciate in value. Because
of the generally conservative design of the Fund, we expect to continue to
manage a relatively high yield, low volatility investment vehicle for New Jersey
investors to earn double tax-exempt income.//
1. Source: Lipper Analytical Services, 12/31/96. The Lipper average is
shown for comparative purposes only. Oppenheimer New Jersey Municipal Fund is
characterized by Lipper as a New Jersey municipal debt fund. Lipper performance
is based on total return and does not take sales charges into account.
2. The Fund's portfolio is subject to change.
4 Oppenheimer New Jersey Municipal Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------
STATEMENT OF INVESTMENTS January 31, 1997 (Unaudited)
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - 99.5%
- ---------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 86.5%
--------------------------------------------------------------------------------------------------------------------
Bayonne, NJ GOB, FGIC Insured, 6%, 5/1/13 Aaa /AAA /AAA $ 100,000 $ 103,841
--------------------------------------------------------------------------------------------------------------------
Bergen Cnty., NJ MUAU Water PC RB, Series A,
FGIC Insured, 6.50%, 12/15/12 Aaa /AAA /AAA 400,000 434,564
--------------------------------------------------------------------------------------------------------------------
Camden Cnty., NJ MUAU Sewer RB:
Prerefunded, FGIC Insured, 8.125%, 12/1/07 Aaa /AAA 505,000 533,482
Unrefunded Balance, FGIC Insured, 8.125%, 12/1/07 Aaa /AAA 245,000 258,539
--------------------------------------------------------------------------------------------------------------------
Delaware River Joint Toll Bridge Commission RB, Interstate
78, Prerefunded, FGIC Insured, 7.80%, 7/1/18 Aaa /AAA /AAA 175,000 187,806
--------------------------------------------------------------------------------------------------------------------
Delaware River Port Authority, Delaware River Bridges
RRB, AMBAC Insured, 7.375%, 1/1/07 Aaa /AAA /AAA 750,000 801,255
--------------------------------------------------------------------------------------------------------------------
East Orange, NJ GOB, FSA Insured, 8.40%, 8/1/06 Aaa /AAA 1,000,000 1,260,790
--------------------------------------------------------------------------------------------------------------------
Essex Cnty., NJ Improvement Authority Lease RB,
Prerefunded, AMBAC Insured, 7%, 12/1/20 Aaa /AAA /AAA 150,000 166,344
--------------------------------------------------------------------------------------------------------------------
Hoboken, Union City & Weehawken, NJ Sewer Authority
RRB, MBIA Insured, 6.20%, 8/1/19 Aaa /AAA 85,000 88,962
--------------------------------------------------------------------------------------------------------------------
Hudson Cnty., NJ COP, Correctional Facility Improvements,
Prerefunded, BIG Insured, 7.60%, 12/1/21 Aaa /AAA 900,000 974,916
--------------------------------------------------------------------------------------------------------------------
Hudson Cnty., NJ MUAU System RB, Prerefunded,
11.875%, 7/1/06 Aaa /AAA 520,000 669,448
--------------------------------------------------------------------------------------------------------------------
Lacey, NJ MUAU Water RB, Prerefunded,
BIG Insured, 7%, 12/1/16 Aaa /AAA 500,000 546,515
--------------------------------------------------------------------------------------------------------------------
Mercer Cnty., NJ Improvement Authority RB,
Justice Complex Project, 6.05%, 1/1/11 Aa /A- 250,000 249,997
--------------------------------------------------------------------------------------------------------------------
New Brunswick, NJ Parking Authority RRB,
Series A, FGIC Insured, 6.50%, 9/1/19 Aaa /AAA 150,000 163,305
--------------------------------------------------------------------------------------------------------------------
NJ EDAU PC RB, Public Service Electric & Gas Co. Project,
Series A, MBIA Insured, 6.40%, 5/1/32 Aaa /AAA 500,000 527,965
--------------------------------------------------------------------------------------------------------------------
NJ EDAU Water Facilities RB, American Water Co., Inc.
Project, Series A, FGIC Insured, 6.875%, 11/1/34 Aaa /AAA /AAA 500,000 549,585
--------------------------------------------------------------------------------------------------------------------
NJ GOB, Series D, 8%, 2/15/07 Aa1 /AA+ /AA+ 400,000 494,696
--------------------------------------------------------------------------------------------------------------------
NJ HCF FAU RB:
Centrastate Medical Center, Series A,
AMBAC Insured, 6%, 7/1/21 Aaa /AAA /AAA 100,000 101,132
Columbus Hospital, Series A, 7.50%, 7/1/21 Baa3/BB- 1,000,000 1,053,100
Southern Ocean Cnty. Hospital, Series A, 6.25%, 7/1/23 Baa2/NR /BBB 1,000,000 1,006,300
St. Elizabeth Hospital Obligation Group, 6%, 7/1/27 Baa2/BBB 500,000 495,345
St. Josephs Hospital & Medical Center, Series A, 6%, 7/1/26 NR /AAA /A- 750,000 760,162
--------------------------------------------------------------------------------------------------------------------
NJ HFAU RRB, Dover General Hospital & Medical Center,
MBIA Insured, 7%, 7/1/03 Aaa /AAA 1,000,000 1,126,380
--------------------------------------------------------------------------------------------------------------------
NJ Mtg. & HFA MH RB, Series A, AMBAC Insured,
6.25%, 5/1/28 Aaa /AAA 1,000,000 1,019,300
--------------------------------------------------------------------------------------------------------------------
NJ Mtg. & HFA RB:
Home Buyer, Series J, MBIA Insured, 6.20%, 10/1/25 Aaa /AAA 200,000 201,508
Series S, MBIA Insured, 6.05%, 10/1/28 Aaa /AAA 1,000,000 1,000,750
--------------------------------------------------------------------------------------------------------------------
NJ Mtg. & HFA RRB, Series 1, 6.70%, 11/1/28 NR /A+ 150,000 155,756
--------------------------------------------------------------------------------------------------------------------
NJ Sports & Exposition Authority RRB, Convention Center
Luxury Tax, Series A, MBIA Insured, 6.25%, 7/1/20 Aaa /AAA 80,000 84,131
</TABLE>
5 Oppenheimer New Jersey Municipal Fund
<PAGE>
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STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
RATINGS: MOODY'S/ FACE MARKET VALUE
S&P'S/FITCH'S AMOUNT SEE NOTE 1
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (Continued)
--------------------------------------------------------------------------------------------------------------------
NJ Transportation Trust Fund, Transportation System RB,
Series B, 5%, 6/15/17 Aa /AA+ /AA $ 1,000,000 $ 928,140
--------------------------------------------------------------------------------------------------------------------
NJ Turnpike Authority RRB, Series C, 6.50%, 1/1/16 Baa1/BBB+/A- 950,000 1,035,491
--------------------------------------------------------------------------------------------------------------------
NJ Wastewater Treatment Trust RRB, Series A,
MBIA Insured, 7%, 9/1/07 Aaa /AAA /AAA 810,000 943,650
--------------------------------------------------------------------------------------------------------------------
North Brunswick Township, NJ GOB, 6.40%, 5/15/08 A1 /A+ 500,000 538,020
--------------------------------------------------------------------------------------------------------------------
Ocean Cnty., NJ GOB:
7.40%, 10/15/00 Aa /AA- /AA 1,000,000 1,107,330
7.50%, 10/15/01 Aa /AA- /AA 500,000 565,415
--------------------------------------------------------------------------------------------------------------------
PAUNYNJ Consolidated RB:
69th Series, 7.125%, 6/1/25 A1 /AA- /AA- 600,000 649,590
94th Series, 6%, 12/1/14 A1 /AA- /AA- 200,000 208,298
--------------------------------------------------------------------------------------------------------------------
PAUNYNJ Special Obligation RRB, KIAC-4 Project, 5th
Installment, 6.75%, 10/1/19 NR /NR 900,000 920,313
--------------------------------------------------------------------------------------------------------------------
Pennsauken Township, NJ BOE COP,
BIG Insured, 7.70%, 7/15/09 Aaa /AAA 500,000 550,000
--------------------------------------------------------------------------------------------------------------------
Sussex Cnty., NJ GOB, General Improvement, AMBAC
Insured, 6%, 4/1/07 Aaa /AAA /AAA 135,000 143,575
---------------
22,605,696
- ---------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS - 13.0%
--------------------------------------------------------------------------------------------------------------------
Guam PAU RB, Series A, 6.30%, 10/1/22 NR /BBB 185,000 187,559
--------------------------------------------------------------------------------------------------------------------
PR Commonwealth Aqueduct & Sewer Authority RB,
Escrowed to Maturity, 10.25%, 7/1/09 Aaa /AAA 460,000 637,845
--------------------------------------------------------------------------------------------------------------------
PR Commonwealth HTAU RB, Series Y, 5%, 7/1/36 Baa1/A 1,000,000 881,380
--------------------------------------------------------------------------------------------------------------------
PR Commonwealth HTAU RRB, Series V, 6.625%, 7/1/12 Baa1/A 300,000 322,245
--------------------------------------------------------------------------------------------------------------------
PR EPAU RB, Unrefunded Balance, Series O, 7.125%,
7/1/14 Baa1/BBB+ 540,000 579,814
--------------------------------------------------------------------------------------------------------------------
PR Industrial Tourist Educational Medical & Environmental
Control Facilities RB, Polytechnic University Project,
Series A, 6.50%, 8/1/24 NR /BBB- 415,000 433,372
--------------------------------------------------------------------------------------------------------------------
Virgin Islands Housing FAU Single Family
RRB, Series A, 6.50%, 3/1/25 NR /AAA 350,000 355,404
---------------
3,397,619
--------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (Cost $25,629,083) 99.5% 26,003,315
--------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.5 129,984
------------ -------------
NET ASSETS 100.0% $ 26,133,299
============ ===============
</TABLE>
6 Oppenheimer New Jersey Municipal Fund
<PAGE>
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STATEMENT OF INVESTMENTS (Continued)
As of January 31, 1997, securities subject to the alternative minimum tax
amounted to $4,574,825 or 17.51% of the Fund's net assets.
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>
Hospital/Healthcare $ 4,542,419 17.5%
Highways 4,319,622 16.6
General Obligation 4,213,667 16.2
Sewer Utilities 2,259,197 8.7
Lease Rental 1,941,257 7.5
Water Utilities 1,853,808 7.1
Electric Utilities 1,687,686 6.5
Single Family Housing 1,557,662 6.0
Multi-Family Housing 1,175,056 4.5
Marine/Aviation Facilities 857,888 3.3
Corporate Backed 549,585 2.1
Pollution Control 527,965 2.0
Higher Education 433,372 1.7
Sales Tax 84,131 0.3
============== ==============
$ 26,003,315 100.0%
============== ==============
</TABLE>
To simplify the listings of the Oppenheimer New Jersey Municipal Fund
holdings in the Statement of Investments, we have abbreviated the descriptions
of many of the securities per the table below:
<TABLE>
<S> <C>
BOE - Board of Education HTAU - Highway & Transportation Authority
COP - Certificates of Participation MH - Multifamily Housing
EDAU - Economic Development Authority MUAU - Municipal Utilities Authority
EPAU - Electric Power Authority PAUNYNJ - Port Authority of New York & New Jersey
FAU - Finance Authority PAU - Power Authority
GOB - General Obligation Bonds PC - Pollution Control
HCF - Health Care Facilities RB - Revenue Bonds
HFA - Housing Finance Agency RRB - Revenue Refunding Bonds
HFAU - Health Facilities Authority
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer New Jersery Municipal Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES January 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS Investments, at value (cost $25,629,083) - see accompanying statement $26,003,315
----------------------------------------------------------------------------------------------------
Cash 405,459
----------------------------------------------------------------------------------------------------
Receivables:
Interest 344,716
Shares of beneficial interest sold 65,916
----------------------------------------------------------------------------------------------------
Other 4,416
------------------
Total assets 26,823,822
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Investments purchased 489,833
Dividends 75,015
Shares of beneficial interest redeemed 51,768
Trustees' fees 39,342
Distribution and service plan fees 3,363
Transfer and shareholder servicing agent fees 1,479
Other 29,723
------------------
Total liabilities 690,523
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $26,133,299
------------------
------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $25,786,945
NET ASSETS ----------------------------------------------------------------------------------------------------
Overdistributed net investment income (17,852)
----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (10,026)
----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments - Note 3 374,232
------------------
Net assets $26,133,299
------------------
------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $12,691,062 and 1,135,968 shares of beneficial interest outstanding) $11.17
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $11.73
----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $12,997,685 and 1,164,196 shares of beneficial interest outstanding) $11.16
----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $444,552 and 39,809 shares of beneficial interest outstanding) $11.17
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer New Jersey Municipal Fund
<PAGE>
-------------------------------------------
STATEMENT OF OPERATIONS For the Six Months Ended January 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Interest $775,409
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES Distribution and service plan fees - Note 4:
Class A 15,514
Class B 57,619
Class C 1,548
----------------------------------------------------------------------------------------------------
Management fees - Note 4 72,493
----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 4 13,396
----------------------------------------------------------------------------------------------------
Shareholder reports 12,929
----------------------------------------------------------------------------------------------------
Legal and auditing fees 6,918
----------------------------------------------------------------------------------------------------
Trustees' fees and expenses - Note 1 6,774
----------------------------------------------------------------------------------------------------
Custodian fees and expenses 2,948
----------------------------------------------------------------------------------------------------
Insurance expenses 1,904
----------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 403
Class B 1,041
Class C 82
----------------------------------------------------------------------------------------------------
Other 1,824
------------------
Total expenses 195,393
Less expenses paid indirectly - Note 4 (3,038)
Less reimbursement and assumption of expenses by
OppenheimerFunds, Inc. - Note 4 (28,885)
------------------
Net expenses 163,470
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 611,939
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND Net realized gain (loss) on:
UNREALIZED GAIN (LOSS) Investments (33,876)
Closing of futures contracts 75,975
------------------
Net realized gain 42,099
----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 152,913
------------------
Net realized and unrealized gain 195,012
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $806,951
------------------
------------------
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer New Jersey Municipal Fund
<PAGE>
------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JANUARY 31, 1997 PERIOD ENDED YEAR ENDED
(UNAUDITED) JULY 31, 1996(1) DECEMBER 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS Net investment income $611,939 $535,517 $553,912
----------------------------------------------------------------------------------------------------
Net realized gain (loss) 42,099 (22,035) 14,709
----------------------------------------------------
Net change in unrealized appreciation
or depreciation 152,913 (185,048) 698,858
----------------------------------------------------
Net increase in net assets
resulting from operations 806,951 328,434 1,267,479
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income:
TO SHAREHOLDERS Class A (336,724) (320,924) (359,044)
Class B (268,182) (212,582) (195,257)
Class C (7,033) (2,007) (18)
----------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (22,656) -- (7,650)
Class B (21,623) -- (4,513)
Class C (684) -- (1)
- ------------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase in net assets resulting
TRANSACTIONS from beneficial interest transactions - Note 2:
Class A 1,256,876 2,672,488 4,506,035
Class B 3,188,972 4,601,865 1,958,383
Class C 311,046 81,113 49,978
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase 4,906,943 7,148,387 7,215,392
----------------------------------------------------------------------------------------------------
Beginning of period 21,226,356 14,077,969 6,862,577
----------------------------------------------------
End of period (including
overdistributed net investment
income of $17,852, $17,852 and
$4, respectively) $26,133,299 $21,226,356 $14,077,969
----------------------------------------------------
----------------------------------------------------
</TABLE>
1. The Fund changed its fiscal year end from December 31 to July 31.
See accompanying Notes to Financial Statements.
10 Oppenheimer New Jersey Municipal Fund
<PAGE>
------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------------------------------------- ---------------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
JANUARY 31, JULY 31, YEAR ENDED DECEMBER 31, JANUARY 31, JULY 31,
1997 (UNAUDITED) 1996(2) 1995 1994(3) 1997 (UNAUDITED) 1996(2)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value,
beginning of period $11.10 $11.26 $10.41 $11.43 $11.09 $11.25
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .31 .36 .61 .49 .27 .31
Net realized and unrealized gain (loss) .09 (.16) .86 (1.02) .09 (.16)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss)
from investment
operations .40 .20 1.47 (.53) .36 .15
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net investment income (.31) (.36) (.61) (.49) (.27) (.31)
Distributions from net realized gain (.02) -- (.01) -- (.02) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.33) (.36) (.62) (.49) (.29) (.31)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.17 $11.10 $11.26 $10.41 $11.16 $11.09
=============================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 3.64% 1.80% 14.42% (4.63)% 3.24% 1.34%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets,
end of period (in thousands) $12,691 $11,354 $8,806 $3,877 $12,998 $9,740
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $12,310 $10,036 $6,504 $2,506 $11,430 $7,774
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.43%(6) 5.49%(6) 5.51% 5.57%(6) 4.65%(6) 4.70%(6)
Expenses, before reimbursement
and voluntary assumption by the
Manager or Distributor(7) 1.24%(6) 1.64%(6) 1.75% 1.46%(6) 2.00%(6) 2.40%(6)
Expenses, net of reimbursement
and voluntary assumption by the
Manager or Distributor 0.98%(6) 0.97%(6) 0.80% 0.31%(6) 1.74%(6) 1.74%(6)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 9.7% 33.1% 7.4% 17.3% 9.7% 33.1%
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to
December 31, 1995.
2. The Fund changed its fiscal year end from December 31 to July 31.
3. For the period from March 1, 1994 (commencement of operations) to
December 31, 1994.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), 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.
5. Ratios during this period would not be indicative of future results.
6. Annualized.
7. Beginning in fiscal 1995, the expense ratio reflects the effect of expenses
paid indirectly by the Fund. Prior year expense ratios have not been adjusted.
8. 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 January 31, 1997 were $7,299,239 and
$2,284,693, respectively.
See accompanying Notes to Financial Statements.
11 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
Class B (Continued) Class C
----------------------------- ---------------------------------------------------
SIX MONTHS PERIOD
ENDED ENDED PERIOD ENDED
YEAR ENDED DECEMBER 31, JANUARY 31, JULY 31, DECEMBER 31,
1995 1994(3) 1997 (UNAUDITED) 1996(2) 1995(1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA:
Net asset value, beginning of period $10.40 $11.43 $11.09 $11.25 $11.01
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .53 .41 .27 .30 .19
Net realized and unrealized gain (loss) .86 (1.02) .09 (.16) .25
- --------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 1.39 (.61) .36 .14 .44
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.53) (.42) (.26) (.30) (.19)
Distributions from net realized gain (.01) -- (.02) -- (.01)
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.54) (.42) (.28) (.30) (.20)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.25 $10.40 $11.17 $11.09 $11.25
==================================================================================
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 13.59% (5.39)% 3.30% 1.29% 4.07%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $5,222 $2,986 $445 $132 $50
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $4,080 $1,841 $307 $74 $3
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.79% 4.76%(6) 4.54%(6) 4.66%(6) --(5)
Expenses, before reimbursement and voluntary
assumption by the Manager or Distributor(7) 2.49% 2.29%(6) 1.98%(6) 2.48%(6) --(5)
Expenses, net of reimbursement and voluntary
assumption by the Manager or Distributor 1.53% 1.14%(6) 1.77%(6) 1.81%(6) --(5)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 7.4% 17.3% 9.7% 33.1% 7.4%
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to
December 31, 1995.
2. The Fund changed its fiscal year end from December 31 to July 31.
3. For the period from March 1, 1994 (commencement of operations) to
December 31, 1994.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), 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.
5. Ratios during this period would not be indicative of future results.
6. Annualized.
7. Beginning in fiscal 1995, the expense ratio reflects the effect of expenses
paid indirectly by the Fund. Prior year expense ratios have not been adjusted.
8. 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 January 31, 1997 were $7,299,239 and $2,284,693,
respectively.
See accompanying Notes to Financial Statements.
12 Oppenheimer New Jersey Municipal Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer New Jersey Municipal Fund (the Fund), formerly named Oppenheimer
New Jersey Tax-Exempt Fund, is a separate series of Oppenheimer Multi-State
Municipal Trust, a non-diversified, open-end management investment company
registered under the Investment Company Act of 1940, as amended. The Fund's
investment objective is to seek as high a level of current income exempt from
federal and New Jersey income taxes for individual investors as is available
from municipal securities that is consistent with preservation of capital. The
Fund's investment adviser is OppenheimerFunds, Inc. (the Manager). The Fund
offers Class A, Class B and Class C shares. Class A shares are sold with a
front-end sales charge. Class B and Class C shares may be subject to a
contingent deferred sales charge. All 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
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 are valued
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 invest-
ments 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 January 31, 1997, a reduction of $510 was made for the Fund's projected
benefit obligations, and payments of $1,509 were made to retired trustees,
resulting in an accumulated liability of $36,816 at January 31, 1997.
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends separately
for Class A, Class B and Class C 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 for tax purposes. 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.
13 Oppenheimer New Jersey Municipal Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (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. For bonds acquired after
April 30, 1993, on disposition or maturity, taxable ordinary income is
recognized to the extent of the lesser of gain or market discount that would
have accrued over the holding period. 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. The
Fund concentrates its investments in New Jersey and, therefore, may have more
credit risks related to the economic conditions of New Jersey than a portfolio
with a broader geographical diversification.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
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 January 31, Period Ended July 31, Year Ended December 31,
1997 1996(2) 1995(1)
Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C>
Class A:
Sold 234,028 $2,611,579 325,900 $3,619,573 491,477 $ 5,411,078
Dividends reinvested 22,082 246,635 19,711 217,924 21,117 233,177
Redeemed (143,353) (1,601,338) (104,674) (1,165,009) (102,930) (1,138,220)
--------- ----------- --------- ----------- --------- ------------
Net increase 112,757 $1,256,876 240,937 $2,672,488 409,664 $ 4,506,035
========= =========== ========= =========== ========= ===========
Class B:
Sold 306,608 $3,417,754 458,042 $5,089,081 257,922 $ 2,845,886
Dividends reinvested 16,836 187,950 12,354 136,326 11,729 129,351
Redeemed (37,440) (416,732) (56,298) (623,542) (92,736) (1,016,854)
--------- ----------- --------- ----------- --------- ------------
Net increase 286,004 $3,188,972 414,098 $4,601,865 176,915 $ 1,958,383
========= =========== ========= =========== ========= ===========
Class C:
Sold 32,460 $ 361,407 11,763 $ 130,464 4,551 $ 51,000
Dividends reinvested 464 5,180 144 1,592 -- --
Redeemed (4,981) (55,541) (4,501) (50,943) (91) (1,022)
--------- ----------- --------- ----------- --------- ------------
Net increase 27,943 $ 311,046 7,406 $ 81,113 4,460 $ 49,978
========= =========== ========= =========== ========= ===========
</TABLE>
1. For the year ended December 31, 1995 for Class A and Class B shares, and
for the period from August 29, 1995 (inception of offering), to December 31,
1995, for Class C shares.
2. The Fund changed its fiscal year end from December 31 to July 31.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At January 31, 1997, net unrealized appreciation on investments of $374,232 was
composed of gross appreciation of $523,163, and gross depreciation of $148,931.
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 0.60%
on the first $200 million of net assets, 0.55% on the next $100 million,
0.50% on the next $200 million, 0.45% on the next $250 million, 0.40% on the
next $250 million and 0.35% 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.
14 Oppenheimer New Jersey Municipal Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
For the six months ended January 31, 1997, commissions (sales charges paid by
investors) on sales of Class A shares totaled $77,778, of which $15,970 was
retained by OppenheimerFunds 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 and
Class C shares totaled $132,514 and $3,230, of which $1,339 was paid to an
affiliated broker/dealer for Class B shares. During the six months ended
January 31, 1997, OFDI received contingent deferred sales charges of $8,718
upon redemption of Class B shares as reimbursement for sales commissions
advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and for other registered investment
companies. OFS's total costs of providing such services are allocated ratably
to these companies.
Expenses paid indirectly represent a reduction of custodian fees for earnings
on cash balances maintained by the Fund.
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI for
a portion of its costs incurred in connection with the personal service and
maintenance of accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate that may not exceed 0.25% (voluntarily reduced to
0.15% by the Fund's Board) of the average annual net assets of Class A shares
of the Fund. OFDI uses the service fee to reimburse brokers, dealers, banks and
other financial institutions quarterly for providing personal service and
maintenance of accounts of their customers that hold Class A shares.
The Fund has adopted a reimbursement type Distribution and Service Plan for
Class B shares to reimburse OFDI for its services and costs in distributing
Class B shares and servicing accounts. Under the Plan, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year on Class B shares. OFDI also
receives a service fee of 0.25% (voluntarily reduced to 0.15% by the Fund's
Board) per year to reimburse dealers for providing personal services for
accounts that hold Class B shares. Both fees are computed on the average annual
net assets of Class B shares, determined as of the close of each regular
business day. If the Plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to OFDI for
certain expenses it incurred before the Plan was terminated. During the six
months ended January 31, 1997, OFDI retained $48,275 as reimbursement for
Class B sales commissions and service fee advances, as well as financing costs.
As of January 31, 1997, OFDI had incurred unreimbursed expenses of $479,007 for
Class B.
The Fund has adopted a compensation type Distribution and Service Plan for
Class C shares to compensate OFDI for its services and costs in distributing
Class C shares and servicing accounts. Under the Plan, the Fund pays OFDI an
annual asset-based sales charge of 0.75% per year on Class C shares. OFDI also
receives a service fee of 0.25% (voluntarily reduced to 0.15% by the Fund's
Board) per year to compensate dealers for providing personal services for
accounts that hold Class C shares. Both fees are computed on the average
annual net assets of Class C shares, determined as of the close of each regular
business day. During the six months ended Janaury 31, 1997, OFDI retained
$35,539 as reimbursement for Class C sales commissions and service fee
advances, as well as financial costs. If the Plan is terminated by the Fund,
the Board of Trustees may allow the Fund to continue payments of the
asset-based sales charge to OFDI for certain expenses it incurred before the
Plan was terminated. As of January 31, 1997, OFDI had incurred unreimbursed
expenses of $4,983 for Class C.
5. FUTURES CONTRACTS
The Fund may buy and sell interest rate futures contracts in order to gain
exposure to or protect against changes in interest rates or for purposes of
duration management. The Fund may also buy or write put or call options on
these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
15 Oppenheimer New Jersey Municipal Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
5. FUTURES CONTRACTS (continued)
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
Risk of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
16 Oppenheimer New Jersey Municipal Fund
<PAGE>
OPPENHEIMER NEW JERSEY MUNICIPAL FUND
A Series of Oppenheimer Multi-State Municipal Trust
OFFICERS AND TRUSTEES
Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Caryn R. Halbrecht, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
INVESTMENT ADVISER OppenheimerFunds, Inc.
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
TRANSFER AND OppenheimerFunds Services
SHAREHOLDER
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 New Jersey
Municipal Fund. This report must be preceded or accompanied by a Prospectus
of Oppenheimer New Jersey Municipal 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.
17 Oppenheimer New Jersey Municipal Fund
