<PAGE>
- -------------------------------
Annual Report July 31, 1998
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O P P E N H E I M E R
New Jersey
Municipal Fund
[GRAPHIC]
[LOGO]
OppenheimerFunds/(R)/
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview
with Your Fund's
Manager
8 Fund Performance
- ----------------------
13 Financial
Statements
32 Independent
Auditors' Report
- ----------------------
33 Federal
Income Tax
Information
34 Officers and
Trustees
36 Information and
Services
Report highlights
- --------------------------------------------------------------------------------
. The Fund's Class A shares have an overall 4-star ranking (****) from
Morningstar for the 3-year period ended June 30, 1998, among 1,549 municipal
funds./1/
. Nationally, there has been a tremendous increase in the supply of municipal
bonds. However, due to state laws that require voter approval to issue new
bonds in New Jersey, the supply of New Jersey municipal bonds is below last
year's issuance thus far in 1998.
- -------------------------------
Avg Annual Total Returns
- -------------------------------
For the 1-Year Period
Ended 7/31/98
Class A
Without With
Sales Chg./2/ Sales Chg./3/
- -------------------------------
5.96% 0.93%
- -------------------------------
Class B
Without With
Sales Chg./2/ Sales Chg./3/
- -------------------------------
5.25% 0.25%
- -------------------------------
Class C
Without With
Sales Chg./2/ Sales Chg./3/
- -------------------------------
5.24% 4.24%
- -------------------------------
Total returns include changes 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. Total returns as of 7/31/98 do not reflect substantial
changes that occurred as a result of market volatility in August and
September 1998.
1. Source: Morningstar, Inc. 6/30/98. Morningstar ranks mutual funds in
broad investment classes, based on risk-adjusted returns after considering
sales charges and expenses. Return and risk are measured as performance
above and below 90-day U.S. Treasury bill returns, respectively.
Overall star ranking is subject to change monthly. Top 10% are ranked
5 stars, next 22.5% are 4 stars, middle 35% are 3 stars, next 22.5% are
2 stars and bottom 10% are 1 star. Past performance does not guarantee
future results.
2. Includes changes in net asset value per share without deducting any
sales charges. Such performance would have been lower if sales charges
were taken into account.
3. Class A return includes the current maximum initial sales charge of
4.75%. Class B return includes the applicable contingent deferred sales
charge of 5% (1-year) and 2% (since inception on 3/1/94). Class C return
includes the contingent deferred sales charge of 1%. An explanation of the
different performance calculations is in the Fund's prospectus. Class B and
C shares are subject to an annual 0.75% asset-based sales charge.
2 Oppenheimer New Jersey Municipal Fund
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
New Jersey
Municipal Fund
Dear shareholder,
- --------------------------------------------------------------------------------
The performance of the financial markets over the past several months could be
viewed as "A Tale of Two Markets." Until mid-July, the excitement surrounding
the stock market's continued ascent to new record highs overshadowed the
favorable economic environment that existed for bonds: low inflation and
declining interest rates. However, since that time, stocks have declined sharply
amid heightened volatility. Yet, the bond market remains poised to benefit from
the same positive economic conditions that existed earlier in the year.
Why have stocks faltered lately? The financial crises in Asia and Russia have
negatively affected the earnings of some large U.S. corporations and have
contributed to a slow-down in U.S. economic growth. Although slower economic
growth has been negative for stocks, it should not adversely impact bonds.
That's because slower economic growth generally means fewer inflationary
pressures and less likelihood that interest rates will rise.
What should you do during this period of relative uncertainty? If you have
well-defined long-term financial goals and an investment strategy designed to
achieve them, we encourage you to stay the course. However, if you feel your
financial plan is out-of-date or incomplete, now is the time to make
improvements. The best way to cope with short-term volatility is to adhere to a
long-term plan that contains proven strategies, such as diversification among
various financial markets, geographic regions, investment styles and individual
securities. A long-term plan will give you the focus and perspective you need to
put short-term volatility in its proper context.
As longstanding advocates of financial planning, we have been encouraged by
our shareholders' rational responses to the latest market events. Many of you
tell us that you have a long-term strategy in place, which includes diversifying
your investment portfolio among a number of different asset classes in
accordance with your tolerance for risk. At OppenheimerFunds, our portfolio
management teams include seasoned professionals who have encountered extreme
market volatility in the past, giving them the perspective required to address
risks and take advantage of opportunities in turbulent markets. In our view,
having a well-defined set of financial goals, a disciplined long-term strategy
and the help of experienced investment professionals are all fundamental parts
of The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
August 21,1998
3 Oppenheimer New Jersey Municipal Fund
<PAGE>
"A resilient
domestic
economy and
low inflation
have been good
for U.S. bonds..."
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How has Oppenheimer New Jersey Municipal Fund
performed over the past 12 months?
The Fund's Class A shares provided an average annual total return, without
deducting sales charges, of 5.96% for the one-year period that ended July 31,
1998./1/ These results reflect both income payments and capital appreciation
of the tax-exempt fixed income securities in which the Fund invests.
How have positive U.S. economic conditions over the past year affected New
Jersey's municipal bonds?
A resilient U.S.economy and low inflation have been good for domestic bonds of
all kinds, including those from New Jersey issuers. The state and national
economies have continued to expand, despite concerns that the Asian financial
crisis might cause growth to slow. So far, consumers appear to have picked up
any slack created by weak demand from Asia, spending freely for major purchases
such as cars, boats and second homes. Yet, inflation has remained at
historically low levels. Even record-high employment has failed to rekindle
inflationary pressures. These economic influences, which have prevailed in New
Jersey as well as the rest of the country, have allowed longer-term interest
rates to move lower relative to short-term interest rates.
How have municipal bonds performed relative to taxable bonds?
Over the past six months, most states and municipalities have rushed to take
advantage of lower borrowing costs by financing new projects and refinancing
existing debt at lower rates. As a result, the supply of municipal bonds
nationally during the first half of 1998 was 60% higher
4 Oppenheimer New Jersey Municipal Fund
<PAGE>
[PHOTO]
Portfolio Management
Team (l to r)
Bob Patterson
Caryn Halbrecht
(Portfolio Manager)
Jerry Webman
than it was in the first half of 1997. This increase in supply has put pressure
on the municipal market, causing it to underperform Treasuries. General market
municipal yields are now at their highest ratios to Treasuries since the threat
of tax reform in 1995.
In 1998, issuance in New Jersey tax-exempt bonds dropped 40%. That's
because voter approval is required before most New Jersey bonds can be issued.
In New York, for example, where voter approval is not required for most
issuance, more than $20 billion of bonds were issued thus far in 1998. By
contrast, just $3 billion of bonds were issued in New Jersey during the same
period because the limited supply of New Jersey bonds has kept these bonds
expensive relative to other municipals.
Where did you find attractive investment opportunities
under these market conditions?
We've invested in bonds that support a wide variety of purposes, such as
transportation agencies. Over the past year, however, we have found particularly
attractive values in certain industries. For example, the growing need for
senior citizen housing has spurred development of adult living facilities. The
aging of America indicates that demand for senior housing should remain high,
enhancing these projects' ability to meet their debt obligations. We've found
similar opportunities in the healthcare industry, where consolidation and
heightened competition has benefited many hospitals. We have invested in
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
5 Oppenheimer New Jersey Municipal Fund
<PAGE>
- -------------------------------------
Standardized Yields/2/
- -------------------------------------
For the 30 Days Ended 7/31/98
Class A
- -------------------------------------
3.94%
- -------------------------------------
Class B
- -------------------------------------
3.37%
- -------------------------------------
Class C
- -------------------------------------
3.37%
- -------------------------------------
An interview with your Fund's manager
- --------------------------------------------------------------------------------
bonds issued by hospitals that, in our view, will successfully meet the
challenges of the managed care marketplace.
We also have found attractive opportunities for income and diversification
from bonds issued within U.S. territories such as Puerto Rico, Guam and the
Virgin Islands. Under federal law, income from these bonds is exempt from
personal income taxes for residents of all states.
What is your outlook for New Jersey's municipal bond market?
We are optimistic on several counts. First, on a national level, tax-exempt
bonds are inexpensive relative to comparable taxable securities because of high
supply. On average, municipal bonds have historically provided about 85% of the
pre-tax yield of U.S. Treasury securities. As of July 31, municipal bonds
provided almost 95% of taxable bonds' yield. We expect municipal bond prices to
rise as yields fall when the relationship between taxable and tax-exempt bonds
returns to more normal levels. Second, we expect demand for municipal bonds to
increase when common stocks lose their luster. Many individuals have happily
remained invested in equities because stocks have generated stellar returns over
the past three years.If the stock market corrects, we think many of these
investors will turn to the relative safety and stability of tax-exempt bonds.
In addition, we expect the slowdown in Asia to constrain U.S.economic
growth, preventing the Federal Reserve from raising short-term interest rates in
an effort to forestall an acceleration of inflation. If short-term interest
rates remain steady and inflation remains low, longer-term interest rates may
decline modestly, benefiting bond prices.
6 Oppenheimer New Jersey Municipal Fund
<PAGE>
Credit Allocation/3/
[PIE CHART]
. AAA 47.6%
. AA 11.7
. A 16.8
. BBB 13.1
. BB 10.8
No matter what the future brings, however, we intend to continue to search for
New Jersey municipal bonds that provide high levels of income exempt from
federal and New Jersey state personal income taxes, while attempting to preserve
capital.
Top Five Industries
Percentage of invested assets/4/
- ---------------------------------------------
Lease Rental 19.5%
- ---------------------------------------------
Hospital/Healthcare 12.8
- ---------------------------------------------
Marine/Aviation Facilities 9.3
- ---------------------------------------------
Highways 8.7
- ---------------------------------------------
Single Family Housing 7.7
- ---------------------------------------------
2. Standardized yield is based on net investment income for the 30-day period
ended 7/31/98. Falling share prices will tend to artificially raise yields.
3. Portfolio data is as of July 31, 1998, is dollar-weighted based on invested
assets and subject to change. The Fund may invest up to 25% of its assets in
below-investment-grade securities which carry greater risk that an issuer may
default on repayment of principal or interest. Securities rated by any rating
organization are included in the equivalent Standard & Poor's rating category.
Average credit quality and allocation include rated securities and those not
rated by a national rating organization (currently 10.8% of total investments)
but to which the Manager in its judgment has assigned ratings as securities
comparable to those rated by a rating agency in the same category.
4. Industry weightings are as of July 31, 1998, and are subject to change.
7 Oppenheimer New Jersey Municipal Fund
<PAGE>
Fund performance
- --------------------------------------------------------------------------------
How Has the Fund Performed? Below is a discussion by the Manager of the Fund's
performance during its fiscal year ended July 31, 1998, followed by a graphical
comparison of the Fund's performance to an appropriate broad-based market
index.
. Management's Discussion of Performance
During the Fund's fiscal year that ended July 31, 1998, Oppenheimer New Jersey
Municipal Fund performed relatively well. The primary drivers of the Fund's
performance were the effects of positive domestic economic conditions and low
inflation in a declining interest-rate environment.
These economic influences have allowed longer-term interest rates to move
lower relative to short-term interest rates. Because bond prices rise when
interest rates decline, most sectors of the U.S. bond market provided
above-average total returns over the past year. However, this has also caused
yields on most fixed-income securities, including many of the Fund's
investments,to decline during the period. As a result, the Fund reduced its
dividend in December of 1997. The Manager's investments in bonds supporting
senior citizen housing and hospitals, and its investments in Puerto Rico, Guam
and the Virgin Islands were contributing factors to the Fund's performance. The
Fund's portfolio holdings, allocations and strategies are subject to change.
During the Fund's fiscal year ended July 31, 1998, the Fund maintained the
practice, to the extent consistent with the amount of the Fund's net investment
income and other distributable income, of attempting to pay dividends on Class A
shares at a constant level. This practice required the Manager, consistent with
the Fund's investment objectives and investment restrictions, to monitor the
Fund's portfolio and select higher yielding securities when deemed appropriate
to maintain necessary net investment income levels.
8 Oppenheimer New Jersey Municipal Fund
<PAGE>
. Comparing the Fund's Performance to the Market
The graphs that follow show the performance of a hypothetical $10,000 investment
in each Class of shares of the Fund held from the inception of the Class until
July 31, 1998.In the case of Class A and Class B shares, performance is measured
from the Fund's inception on March 1, 1994, and in the case of Class C shares,
from the inception of the Class on August 29, 1995.
The Fund's performance is compared to that of the Lehman Brothers Municipal
Bond Index, an unmanaged index of a broad range of investment grade municipal
bonds that is widely regarded as a measure of the performance of the general
municipal bond market. Index performance reflects the reinvestment of income but
does not consider the effect of capital gains or transaction costs, and none of
the data below shows the effect of taxes. Also, the Fund's performance data
reflects the effect of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments are not limited to the Lehman Brothers
Municipal Bond Index. Moreover, the index performance data does not reflect an
assessment of the risk of the investments included in the index.
9 Oppenheimer New Jersey Municipal Fund
<PAGE>
Fund performance
- --------------------------------------------------------------------------------
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer New Jersey Municipal Fund (Class A) and Lehman Brothers Municipal
Bond Index
[LINE GRAPH]
- --------------------------------------------------------------------------------
Class A Value of Investment In Fund Lehman Brothers Municipal Bond Index
- --------------------------------------------------------------------------------
3/1/94 9,525 10,000
12/31/94 9,084 9,625
12/31/95 10,394 11,307
7/31/96 10,581 11,358
7/31/97 11,638 12,524
7/31/98 12,332 13,273
Average Annual Total Return of Class A Shares of the Fund at 7/31/98/1/
1 Year 0.93% Life 4.86%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer New Jersey Municipal Fund (Class B) and Lehman Brothers Municipal
Bond Index
[LINE GRAPH]
- --------------------------------------------------------------------------------
Class B Value of Investment In Fund Lehman Brothers Municipal Bond Index
- --------------------------------------------------------------------------------
3/1/94 10,000 10,000
12/31/94 9,461 9,625
12/31/95 10,746 11,307
7/31/96 10,890 11,358
7/31/97 11,889 12,524
7/31/98 12,313 13,273
Average Annual Total Return of Class B Shares of the Fund at 7/31/98/2/
1 Year 0.25% Life 4.83%
10 Oppenheimer New Jersey Municipal Fund
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer New Jersey Municipal Fund (Class C) and Lehman Brothers Municipal
Bond Index
[LINE GRAPH]
- --------------------------------------------------------------------------------
Class C Value of Investment In Fund Lehman Brothers Municipal Bond Index
- --------------------------------------------------------------------------------
8/29/95 10,000 10,000
12/31/95 10,406 10,478
7/31/96 10,541 10,525
7/31/97 11,501 11,606
7/31/98 12,105 12,299
Average Annual Total Return of Class C Shares of the Fund at 7/31/98/3/
1 Year 4.24% Life 6.75%
Total returns and the ending account values in the graphs show a change in share
value and include reinvestment of all dividends and capital gains distributions.
1. The inception of the Fund (Class A and B shares) was 3/1/94. Class A returns
are shown net of the current applicable 4.75% maximum initial sales charge.
2. The Class B average annual total returns reflect reinvestment of all
dividends and capital gains distributions and are shown net of the applicable 5%
and 2% contingent deferred sales charges respectively for the 1-year period and
the life-of-class. The ending account value in the graph is net of the
applicable 2% contingent deferred sales charge.
3. Class C shares of the Fund were first publicly offered on 8/29/95. The 1-year
period is shown net of the applicable 1% contingent deferred sales charge.
Past performance is not predictive of future performance.
Graphs are not drawn to same scale.
11 Oppenheimer New Jersey Municipal Fund
<PAGE>
Financials
--------------------------------
12 Oppenheimer New Jersey Municipal Fund
<PAGE>
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Statement of Investments July 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/
S&P/Fitch Face Market Value
(Unaudited) Amount See Note 1
======================================================================================
<S> <C> <C> <C>
Municipal Bonds and Notes--99.1%
- --------------------------------------------------------------------------------------
New Jersey--73.0%
East Orange, NJ BOE COP, FSA Insured,
5%, 2/1/13 Aaa/AAA $2,000,000 $1,984,740
- --------------------------------------------------------------------------------------
East Orange, NJ BOE COP, FSA Insured,
5.50%, 8/1/12 Aaa/AAA 1,250,000 1,333,187
- --------------------------------------------------------------------------------------
East Orange, NJ GOB, FSA Insured,
8.40%, 8/1/06 Aaa/AAA 1,000,000 1,261,520
- --------------------------------------------------------------------------------------
Essex Cnty., NJ Improvement Authority RB,
Utility System-Orange Franchise, Series A,
MBIA Insured, 5.75%, 7/1/27 Aaa/AAA 1,000,000 1,060,040
- --------------------------------------------------------------------------------------
Hudson Cnty., NJ MUAU System RB,
Prerefunded, 11.875%, 7/1/06 Aaa/AAA 520,000 642,013
- --------------------------------------------------------------------------------------
Mercer Cnty., NJ Improvement Authority RB,
Justice Complex Project, 6.05%, 1/1/11(1) Aa/AA - 250,000 250,360
- --------------------------------------------------------------------------------------
Middlesex Cnty., NJ Utilities Authority
Sewer RRB, Series A, FGIC Insured,
5.25%, 12/1/09 Aaa/AAA/AAA 1,025,000 1,084,532
- --------------------------------------------------------------------------------------
Newark, NJ GOB, Additional State School
Building Aid, 10%, 6/1/03 Aa3/AA 720,000 895,457
- --------------------------------------------------------------------------------------
Newark, NJ GOB, School Qualified Bond
Act, MBIA Insured, 5.30%, 9/1/08 Aaa/AAA 1,000,000 1,056,400
- --------------------------------------------------------------------------------------
NJ Building Authority RRB, 5%, 6/15/10 Aa2/AA-/AA 4,000,000 4,089,040
- --------------------------------------------------------------------------------------
NJ Casino Reinvestment DAU Parking
Fee RB, Series A, FSA Insured, 5.20%, 10/1/08 Aaa/AAA 1,000,000 1,049,360
- --------------------------------------------------------------------------------------
NJ Casino Reinvestment DAU Parking
Fee RB, fg Series A, FSA Insured, 5.25%,
10/1/13 Aaa/AAA 1,000,000 1,021,450
- --------------------------------------------------------------------------------------
NJ COP, Series A, AMBAC Insured, 5%, 6/15/12 Aa3/AAA/AAA 1,000,000 1,001,720
- --------------------------------------------------------------------------------------
NJ EDAU PC RB, Public Service Electric &
Gas Co. Project, Series A, MBIA Insured,
6.40%, 5/1/32 Aaa/AAA 500,000 543,265
- --------------------------------------------------------------------------------------
NJ EDAU RRB, First Mortgage-Franciscan
Oaks Project, 5.70%, 10/1/17 NR/NR 2,235,000 2,259,496
- --------------------------------------------------------------------------------------
NJ EDAU RRB, First Mortgage-Keswick
Pines, 5.60%, 1/1/12 NR/NR 600,000 600,402
</TABLE>
13 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/
S&P/Fitch Face Market Value
(Unaudited) Amount See Note 1
======================================================================================
<S> <C> <C> <C>
New Jersey (continued)
NJ EDAU RRB, First Mortgage-Keswick
Pines, 5.70%, 1/1/18 NR/NR $2,350,000 $2,360,833
- --------------------------------------------------------------------------------------
NJ EDAU Water Facilities RB, American
Water Co., Inc. Project, Series A, FGIC
Insured, 6.875%, 11/1/34 Aaa/AAA/AAA 500,000 562,835
- --------------------------------------------------------------------------------------
NJ EDAU Water Facilities RB, American
Water Co., Inc. Project, Series B,
FGIC Insured, 5.375%, 5/1/32 Aaa/AAA 2,000,000 2,028,380
- --------------------------------------------------------------------------------------
NJ Educational FA RRB, Institute of
Advanced Study, Series F, 5%, 7/1/11 Aaa/AA+ 1,130,000 1,154,329
- --------------------------------------------------------------------------------------
NJ Educational FA RRB, Monmouth
University, Series C, 5.80%, 7/1/22 Baa3/BBB 1,000,000 1,036,370
- --------------------------------------------------------------------------------------
NJ HCF FAU RB, Centrastate Medical Center,
Series A, AMBAC Insured, 6%, 7/1/21 Aaa/AAA/AAA 100,000 104,358
- --------------------------------------------------------------------------------------
NJ HCF FAU RB, Columbus Hospital,
Series A, 7.50%, 7/1/21 Baa3/BBB- 2,000,000 2,088,840
- --------------------------------------------------------------------------------------
NJ HCF FAU RB, Southern Ocean Cnty.
Hospital, Series A, 6.25%, 7/1/23 Baa1/NR/BBB+ 1,000,000 1,060,290
- --------------------------------------------------------------------------------------
NJ HCF FAU RB, St. Elizabeth Hospital
Obligation Group, 6%, 7/1/20 Baa2/BBB 1,000,000 1,045,590
- --------------------------------------------------------------------------------------
NJ HCF FAU RB, St. Joseph's Hospital &
Medical Center, Series A, 6%, 7/1/26 NR/AAA 750,000 811,980
- --------------------------------------------------------------------------------------
NJ HCF FAU RRB, Capital Health System
Obligation Group, 5.125%, 7/1/12 Baa1/A- 3,000,000 2,967,540
- --------------------------------------------------------------------------------------
NJ HCF FAU RRB, Dover General Hospital &
Medical Center, MBIA Insured, 7%, 7/1/03 Aaa/AAA 1,000,000 1,122,460
- --------------------------------------------------------------------------------------
NJ Mtg. & HFA MH RB, Series A, AMBAC
Insured, 6.25%, 5/1/28 Aaa/AAA 1,000,000 1,070,720
- --------------------------------------------------------------------------------------
NJ Mtg. & HFA RB, Home Buyer, Series J,
MBIA Insured, 6.20%, 10/1/25 Aaa/AAA 200,000 211,202
- --------------------------------------------------------------------------------------
NJ Mtg. & HFA RB, Home Buyer, Series S,
MBIA Insured, 6.05%, 10/1/28 Aaa/AAA 1,000,000 1,060,430
- --------------------------------------------------------------------------------------
NJ Mtg. & HFA RB, Home Buyer, Series X,
MBIA Insured, 5.35%, 4/1/29 Aaa/AAA 2,000,000 2,005,160
- --------------------------------------------------------------------------------------
NJ Mtg. & HFA RRB, Series 1, 6.70%, 11/1/28 NR/A+ 85,000 91,434
</TABLE>
14 Oppenheimer New Jersey Municipal Fund
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
Ratings:
Moody's/
S&P/Fitch Face Market Value
(Unaudited) Amount See Note 1
======================================================================================
<S> <C> <C> <C>
New Jersey (continued)
NJ Sports & Exposition Authority RB,
Convention Center Luxury Tax, Series A,
MBIA Insured, 6.25%, 7/1/20 Aaa/AAA $ 80,000 $ 86,768
- --------------------------------------------------------------------------------------
NJ Transportation Trust Fund Authority RB,
Transportation System, Series B, 5%, 6/15/17 Aa3/A+/AA 1,000,000 987,320
- --------------------------------------------------------------------------------------
NJ TUAU RRB, Series C, 6.50%, 1/1/16 Baa1/BBB+/A- 950,000 1,101,648
- --------------------------------------------------------------------------------------
NJ TUAU RRB, Series C, MBIA Insured,
6.50%, 1/1/09 Aaa/AAA 1,000,000 1,157,150
- --------------------------------------------------------------------------------------
North Jersey District Water Supply RRB,
Wanaque North Project, Series A,
MBIA Insured, 5.125%, 11/15/21 Aaa/AAA 1,000,000 991,860
- --------------------------------------------------------------------------------------
PAUNYNJ Consolidated RB, 112th Series,
5%, 12/1/16 A1/AA-/AA- 2,000,000 1,975,040
- --------------------------------------------------------------------------------------
PAUNYNJ Consolidated RB, 94th Series,
6%, 12/1/14 A1/AA-/AA- 200,000 216,776
- --------------------------------------------------------------------------------------
PAUNYNJ SPO RB, JFK International Air
Terminal Project, Series 6, MBIA Insured,
5.75%, 12/1/25 Aaa/AAA/AAA 2,000,000 2,094,680
- --------------------------------------------------------------------------------------
PAUNYNJ SPO RB, JFK International Air
Terminal Project, Series 6, MBIA Insured,
7%, 12/1/12 Aaa/AAA/AAA 2,000,000 2,438,000
- --------------------------------------------------------------------------------------
PAUNYNJ SPO RRB, KIAC-4 Project,
Fifth Installment, 6.75%, 10/1/19 NR/NR 900,000 991,260
------------
52,956,235
- --------------------------------------------------------------------------------------
U.S. Possessions--26.1%
Guam Housing Corp. SFM RB, Series A,
5.75%, 9/1/31 NR/AAA 2,000,000 2,126,600
- --------------------------------------------------------------------------------------
Guam PAU RB, Series A, 6.30%, 10/1/22 NR/BBB 185,000 196,474
- --------------------------------------------------------------------------------------
PR CMWLTH GOB, 5.375%, 7/1/25 Baa1/A 1,500,000 1,521,135
- --------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series Y, 5%, 7/1/36 Baa1/A 1,000,000 985,730
- --------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series Y,
5.50%, 7/1/26 Baa1/A 2,000,000 2,057,640
- --------------------------------------------------------------------------------------
PR CMWLTH Infrastructure FAU Special RB,
Series A, AMBAC Insured, 5%, 7/1/11 Aaa/AAA 1,000,000 1,023,120
- --------------------------------------------------------------------------------------
PR EPAU RRB, Series Z, 5.50%, 7/1/16 Baa1/BBB+ 2,000,000 2,054,480
</TABLE>
15 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/
S&P/Fitch Face Market Value
(Unaudited) Amount See Note 1
======================================================================================
<S> <C> <C> <C>
U.S. Possessions (continued)
PR Industrial Tourist Educational Medical &
Environmental Control Facilities RB,
Polytechnic University Project, Series A,
6.50%, 8/1/24 NR/BBB- $ 410,000 $ 445,744
- --------------------------------------------------------------------------------------
PR Public Buildings Authority RB,
Government Facilities, Series B, AMBAC
Insured, 5%, 7/1/27 Aaa/AAA 2,000,000 1,959,460
- --------------------------------------------------------------------------------------
PR Public Buildings Authority RB,
Series B, 5.25%, 7/1/21 Baa1/A 3,390,000 3,387,593
- --------------------------------------------------------------------------------------
Virgin Islands Housing FAU Single
Family RRB, Series A, 6.50%, 3/1/25 NR/AAA 150,000 159,406
- --------------------------------------------------------------------------------------
Virgin Islands PFAU RB, Sub.Lien,
Fund Loan Nts., Series E, 6%, 10/1/22 NR/NR 1,500,000 1,540,950
- --------------------------------------------------------------------------------------
Virgin Islands Water & Electric
Systems RRB, 5.375%, 7/1/10 NR/NR/BBB 1,470,000 1,526,066
------------
18,984,398
- --------------------------------------------------------------------------------------
Total Investments, at Value (Cost $69,682,738) 99.1% 71,940,633
- --------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.9 645,204
------------ ------------
Net Assets 100.0% $72,585,837
============ ============
</TABLE>
To simplify the listings of securities, abbreviations are used per the table
below:
<TABLE>
<S> <C>
BOE --Board of Education MH --Multifamily Housing
CMWLTH--Commonwealth MUAU --Municipal Utilities Authority
COP --Certificates of Participation PAUNYNJ--Port Authority of New York & New Jersey
DAU --Development Authority PAU --Power Authority
EDAU --Economic Development Authority PC --Pollution Control
EPAU --Electric Power Authority PFAU --Public Finance Authority
FA --Facilities Authorit RB --Revenue Bonds
FAU --Finance Authority RRB --Revenue Refunding Bonds
GOB --General Obligation Bonds SFM --Single Family Mortgage
HCF --Health Care Facilities SPO --Special Obligations
HFA --Housing Finance Agency TUAU --Turnpike Authority
HTAU --Highway & Transportation Authority
</TABLE>
1. Securities with an aggregate market value of $250,360 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
16 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
As of July 31, 1998,securities subject to the alternative minimum tax amount to
$17,266,979 or 23.8% of the Fund's net assets.
Distribution of investments by industry, as a percentage of total investments at
value, is as follows:
Industry Market Value Percent
- -----------------------------------------------------------------
Lease Rental $14,006,100 19.5%
- -----------------------------------------------------------------
Hospital/Healthcare 9,201,058 12.8
- -----------------------------------------------------------------
Marine/Aviation Facilities 6,724,496 9.3
- -----------------------------------------------------------------
Highways 6,289,488 8.7
- -----------------------------------------------------------------
Single Family Housing 5,562,798 7.7
- -----------------------------------------------------------------
Adult Living Facilities 5,220,731 7.3
- -----------------------------------------------------------------
General Obligation 4,734,512 6.6
- -----------------------------------------------------------------
Water Utilities 4,219,979 5.9
- -----------------------------------------------------------------
Electric Utilities 3,242,214 4.5
- -----------------------------------------------------------------
Sales Tax 2,650,838 3.7
- -----------------------------------------------------------------
Higher Education 2,636,443 3.7
- -----------------------------------------------------------------
Corporate Backed 2,591,215 3.6
- -----------------------------------------------------------------
Parking Fee Revenue 2,070,810 2.9
- -----------------------------------------------------------------
Multi-Family Housing 1,162,154 1.6
- -----------------------------------------------------------------
Sewer Utilities 1,084,532 1.5
- -----------------------------------------------------------------
Pollution Control 543,265 0.7
----------- -----
$71,940,633 100.0%
=========== =====
See accompanying Notes to Financial Statements.
17 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities July 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
=========================================================================================
<S> <C>
ASSETS
Investments, at value (cost $69,682,738)--see accompanying statement $71,940,633
- -----------------------------------------------------------------------------------------
Cash 89,245
- -----------------------------------------------------------------------------------------
Receivables:
Interest 688,772
Shares of beneficial interest sold 165,970
- -----------------------------------------------------------------------------------------
Other 4,021
-----------
Total assets 72,888,641
=========================================================================================
LIABILITIES
Payables and other liabilities:
Dividends 176,355
Trustees' fees--Note 1 56,800
Shareholder reports 25,079
Shares of beneficial interest redeemed 11,200
Registration and filing fees 9,504
Distribution and service plan fees 7,880
Transfer and shareholder servicing agent fees 6,648
Daily variation on futures contracts--Note 5 2,700
Other 6,638
-----------
Total liabilities 302,804
=========================================================================================
NET ASSETS $72,585,837
===========
=========================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $70,484,052
- -----------------------------------------------------------------------------------------
Overdistributed net investment income (86,224)
- -----------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (59,730)
- -----------------------------------------------------------------------------------------
Net unrealized appreciation on investments --Notes 3 and 5 2,247,739
-----------
Net assets $72,585,837
===========
</TABLE>
18 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $33,060,279 and 2,854,648 shares of beneficial interest outstanding) $11.58
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $12.16
- -----------------------------------------------------------------------------------------
Class B Shares:
Net asset value,redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $33,062,494 and 2,856,331 shares of beneficial interest outstanding) $11.58
- -----------------------------------------------------------------------------------------
Class C Shares:
Net asset value,redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $6,463,064 and 558,248 shares of beneficial interest outstanding) $11.58
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Year Ended Year Ended July 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
=========================================================================================
INVESTMENT INCOME
Interest $2,876,807
=========================================================================================
Expenses
Distribution and service plan fees--Note 4:
Class A 60,187
Class B 255,164
Class C 36,189
- -----------------------------------------------------------------------------------------
Management fees--Note 4 324,038
- -----------------------------------------------------------------------------------------
Trustees'fees and expenses--Note 1 49,168
- -----------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 38,079
- -----------------------------------------------------------------------------------------
Shareholder reports 30,001
- -----------------------------------------------------------------------------------------
Custodian fees and expenses 16,335
- -----------------------------------------------------------------------------------------
Legal,auditing and other professional fees 13,217
- -----------------------------------------------------------------------------------------
Registration and filing fees 9,676
- -----------------------------------------------------------------------------------------
Other 5,744
----------
Total expenses 837,798
Less reimbursement of expenses by OppenheimerFunds,Inc.--Note 4 (394,415)
Less expenses paid indirectly--Note 4 (16,044)
----------
Net expenses 427,339
=========================================================================================
NET INVESTMENT INCOME 2,449,468
=========================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 179,850
Closing of futures contracts--Note 5 (326,733)
Closing of options written--Note 6 9,135
Net realized loss (137,748)
- -----------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 622,195
Net realized and unrealized gain 484,447
=========================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,933,915
==========
</TABLE>
See accompanying Notes to Financial Statements.
20 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended July 31,
1998 1997
<S> <C> <C>
=========================================================================================
OPERATIONS
Net investment income $2,449,468 $1,425,703
- -----------------------------------------------------------------------------------------
Net realized gain (loss) (137,748) 150,628
- -----------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 622,195 1,262,319
---------- ----------
Net increase in net assets resulting from operations 2,933,915 2,838,650
=========================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (1,254,458) (767,546)
Class B (1,090,385) (624,119)
Class C (152,621) (34,038)
- -----------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (80,412) (22,656)
Class B (80,657) (21,623)
Class C (9,067) (684)
=========================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 13,845,886 7,082,671
Class B 14,274,224 8,269,186
Class C 4,363,695 1,889,520
=========================================================================================
NET ASSETS
Total increase 32,750,120 18,609,361
- -----------------------------------------------------------------------------------------
Beginning of period 39,835,717 21,226,356
----------- -----------
End of period (including overdistributed net investment
income of $86,224 and $33,116,respectively) $72,585,837 $39,835,717
=========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
21 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------
Year Ended
Year Ended July 31, December 31,
1998 1997 1996/(2)/ 1995 1994/(3)/
=============================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value,beginning of period $11.54 $11.10 $11.26 $10.41 $11.43
- -------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .58 .62 .36 .61 .49
Net realized and unrealized gain (loss) .09 .45 (.16) .86 (1.02)
------ ------ ------ ------ ------
Total income (loss) from
investment operations .67 1.07 .20 1.47 (.53)
- -------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.59) (.61) (.36) (.61) (.49)
Distributions from net realized gain (.04) (.02) -- (.01) --
------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.63) (.63) (.36) (.62) (.49)
- -------------------------------------------------------------------------------------------------------------
Net asset value,end of period $11.58 $11.54 $11.10 $11.26 $10.41
====== ====== ====== ====== ======
=============================================================================================================
TOTAL RETURN, AT NET ASSET VALUE/(4)/ 5.96% 9.99% 1.80% 14.42% (4.63)%
=============================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets,end of period
(in thousands) $33,060 $19,109 $11,354 $8,806 $3,877
- -------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $24,909 $14,072 $10,036 $6,504 $2,506
- -------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.94% 5.45% 5.49%/(6)/ 5.51% 5.57%/(6)/
Expenses,before reimbursement
and voluntary assumption
by the Manager or Distributor/(7)/ 1.14% 1.08% 1.64%/(6)/ 1.75% 1.46%/(6)/
Expenses,net of reimbursement
and voluntary assumption
by the Manager or Distributor 0.38% 0.88% 0.97%/(6)/ 0.80% 0.31%/(6)/
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate/(8)/ 45.9% 11.9% 33.1% 7.4% 17.3%
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to December 31,
1995.
2. For the seven months ended July 31, 1996. 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.
22 Oppenheimer New Jersey Municipal Fund
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
----------------------------------------------------------
Year Ended
Year Ended July 31, December 31,
1998 1997 1996/(2)/ 1995 1994/(3)/
==========================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value,beginning of period $11.53 $11.09 $11.25 $10.40 $11.43
- ----------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .50 .53 .31 .53 .41
Net realized and unrealized gain (loss) .09 .46 (.16) .86 (1.02)
------ ------ ------ ------ ------
Total income (loss) from
investment operations .59 .99 .15 1.39 (.61)
- ----------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.50) (.53) (.31) (.53) (.42)
Distributions from net realized gain (.04) (.02) -- (.01) --
------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.54) (.55) (.31) (.54) (.42)
- ----------------------------------------------------------------------------------------------------------
Net asset value,end of period $11.58 $11.53 $11.09 $11.25 $10.40
====== ====== ====== ====== ======
==========================================================================================================
TOTAL RETURN, AT NET ASSET VALUE/(4)/ 5.25% 9.18% 1.34% 13.59% (5.39)%
==========================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets,end of period
(in thousands) $33,062 $18,647 $9,740 $5,222 $2,986
- ----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $25,556 $13,278 $7,774 $4,080 $1,841
- ----------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.17% 4.70% 4.70% 4.79% 4.76%/(6)/
Expenses,before reimbursement
and voluntary assumption
by the Manager or Distributor/(7)/ 1.89% 1.83% 2.40% 2.49% 2.29%/(6)/
Expenses,net of reimbursement
and voluntary assumption
by the Manager or Distributor 1.14% 1.62% 1.74% 1.53% 1.14%/(6)/
- ----------------------------------------------------------------------------------------------------------
Portfolio turnover rate/(8)/ 45.9% 11.9% 33.1% 7.4% 17.3%
<CAPTION>
Class C
----------------------------------------------
Period
Ended
Year Ended July 31, Dec. 31,
1998 1997 1996/(2)/ 1995/(1)/
==============================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value,beginning of period $11.53 $11.09 $11.25 $11.01
- ----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .50 .53 .30 .19
Net realized and unrealized gain (loss) .09 .45 (.16) .25
----- ----- ------ -----
Total income (loss) from
investment operations .59 .98 .14 .44
- ----------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.50) (.52) (.30) (.19)
Distributions from net realized gain (.04) (.02) -- (.01)
----- ----- ----- -----
Total dividends and distributions
to shareholders (.54) (.54) (.30) (.20)
- ----------------------------------------------------------------------------------------------
Net asset value,end of period $11.58 $11.53 $11.09 $11.25
==============================================================================================
TOTAL RETURN, AT NET ASSET VALUE/(4)/ 5.24% 9.11% 1.29% 4.07%
==============================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets,end of period
(in thousands) $6,463 $2,080 $132 $50
- ----------------------------------------------------------------------------------------------
Average net assets (in thousands) $3,631 $ 747 $74 $3
- ----------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.20% 4.56% 4.66% --/(5)/
Expenses,before reimbursement
and voluntary assumption
by the Manager or Distributor/(7)/ 1.92% 1.79% 2.48% --/(5)/
Expenses,net of reimbursement
and voluntary assumption
by the Manager or Distributor 1.12% 1.60% 1.81% --/(5)/
- ----------------------------------------------------------------------------------------------
Portfolio turnover rate/(8)/ 45.9% 11.9% 33.1% 7.4%
</TABLE>
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 July 31, 1998 were $56,334,902 and $24,642,180, respectively.
See accompanying Notes to Financial Statements.
23 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer New Jersey Municipal Fund (the 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 consistent with preservation of capital. The Fund's investment advisor 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 that class and exclusive voting rights with
respect to matters affecting that 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 an 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, Gains and Losses. Income, expenses (other than
those attributable to a specific class), 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.
24 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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. At July 31, 1998, the Fund
had available for federal income tax purposes an unused capital loss carryover
of approximately $54,000 which expires in 2006.
- --------------------------------------------------------------------------------
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 year ended
July 31, 1998, a provision of $30,874 was made for the Fund's projected benefit
obligations, and payments of $267 were made to retired trustees, resulting in an
accumulated liability of $56,289 at July 31, 1998.
The Board of Trustees had adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all or a
portion of annual fees they are entitled to receive from the Fund. Under the
plan, the compensation deferred is periodically adjusted as though an equivalent
amount had been invested for the Trustee in shares of one or more Oppenheimer
funds selected by the Trustee. The amount paid to the Trustee under the plan
will be determined based upon the performance of the selected funds. Deferral of
Trustees' fees under the plan will not affect the net assets of the Fund, and
will not materially affect the Fund's assets, liabilities or net income per
share.
- --------------------------------------------------------------------------------
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. The character of the distributions made during the year from net
investment income or net realized gains may differ from its 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 fiscal year in which the income or realized gain was recorded
by the Fund.
25 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies (continued)
The Fund adjusts the classification of distributions to shareholders to reflect
the differences between financial statement amounts and distributions determined
in accordance with income tax regulations. Accordingly, during the year ended
July 31, 1998, amounts have been reclassified to reflect an increase in
overdistributed net investment income of $5,112, accumulated net realized loss
on investments was decreased by $134,387 and paid-in capital was decreased by
$129,275.
- --------------------------------------------------------------------------------
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. As of November 4, 1997, in order to conform
book and tax bases, the Fund began amortization of premiums on securities for
book purposes. Such cumulative change was limited to a reclassification
adjustment and had no impact on net assets or total increase (decrease) in net
assets. Accordingly, during the year ended July 31, 1998, amounts have been
reclassified to reflect an increase in net unrealized appreciation of
investments of $141,906. Paid-in capital was decreased for the same amount. 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.
26 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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>
Year Ended July 31, 1998 Year Ended July 31, 1997
-------------------------- ---------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 1,479,153 $17,088,412 837,412 $9,364,872
Dividends and distributions
reinvested 73,193 843,838 46,887 524,696
Redeemed (354,111) (4,086,364) (251,097) (2,806,897)
--------- ----------- -------- ----------
Net increase 1,198,235 $13,845,886 633,202 $7,082,671
========= =========== ======== ==========
- ----------------------------------------------------------------------------------------------
Class B:
Sold 1,418,500 $16,352,105 837,497 $9,367,955
Dividends and distributions
reinvested 63,541 732,272 36,119 404,040
Redeemed (243,070) (2,810,153) (134,448) (1,502,809)
--------- ----------- -------- ----------
Net increase 1,238,971 $14,274,224 739,168 $8,269,186
========= =========== ======== ==========
- ----------------------------------------------------------------------------------------------
Class C:
Sold 406,603 $4,695,990 185,940 $2,083,594
Dividends and distributions
reinvested 11,359 131,054 2,216 24,849
Redeemed (40,110) (463,349) (19,626) (218,923)
--------- ----------- -------- ----------
Net increase 377,852 $4,363,695 168,530 $1,889,520
========= =========== ======== ==========
- ----------------------------------------------------------------------------------------------
</TABLE>
3. Unrealized Gains and Losses on Investments
At July 31, 1998, net unrealized appreciation on investments of $2,257,895 was
composed of gross appreciation of $2,280,813, and gross depreciation of $22,918.
27 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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% of
the first $200 million of average annual net assets, 0.55% of the next $100
million, 0.50% of the next $200 million, 0.45% of the next $250 million, 0.40%
of the next $250 million and 0.35% of average annual net assets in excess of $1
billion. The Manager has voluntarily undertaken to assume Fund expenses to the
level needed to maintain a stable dividend.
For the year ended July 31, 1998, commissions (sales charges paid by
investors) on sales of Class A shares totaled $243,921, of which $40,569 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 $628,171 and $41,491, respectively, of which $11,069 was
paid to an affiliated broker/dealer for Class B. During the year ended July
31, 1998, OFDI received contingent deferred sales charges of $62,778 and $1,716,
respectively, upon redemption of Class B and Class C 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 shareholder 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
maintaining accounts of their customers that hold Class A shares. During the
year ended July 31, 1998, OFDI paid $1,272 to an affiliated broker/dealer as
reimbursement for Class A personal service and maintenance expenses.
28 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted a Distribution and Service Plan for Class B shares to
reimburse OFDI for its 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 for its services rendered in distributing 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. Each fee is computed on the average annual
net assets of Class B shares, determined as of the close of each regular
business day. During the year ended July 31, 1998, OFDI retained $210,296 as
reimbursement for Class B sales commissions and service fee advances, as well as
financing 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 distributing shares before the Plan was terminated. As of July 31, 1998,
OFDI had incurred excess distribution and servicing costs of $1,204,660 for
Class B.
The Fund has adopted a compensation type Distribution and Service Plan
for Class C shares to compensate OFDI for its 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. Each fee is computed on the average annual net assets of
Class C shares, determined as of the close of each regular business day. During
the year ended July 31, 1998, OFDI retained $28,835 as compensation for Class C
sales commissions and service fee advances, as well as financing 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 distributing
shares before the Plan was terminated. As of July 31, 1998, OFDI had incurred
excess distribution and servicing costs of $76,968 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. 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 than actually
buying fixed income securities.
29 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. Futures Contracts (continued)
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities (initial margin) in an amount 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.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable or
payable for the daily mark to market for variation margin.
Risk of entering into futures contracts (and related options) includes 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.
At July 31, 1998, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
Unrealized
Expiration Number of Valuation as of Appreciation
Date Contracts July 31, 1998 (Depreciation)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Purchase
- ---------------------
Municipal Bond Future 9/98 20 $2,480,000 $(11,406)
--------
Contracts to Sell
- -----------------
U.S. Treasury Bonds, 20 yr. 9/98 40 4,903,750 1,250
--------
$(10,156)
========
</TABLE>
- --------------------------------------------------------------------------------
6. Option Activity
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
30 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Options written are reported as a
liability in the Statement of Assets and Liabilities. Gains and losses are
reported in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the opportunity
for profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Fund may incur a loss if
the market price of the security decreases and the option is exercised. The risk
in buying an option is that the Fund pays a premium whether or not the option is
exercised. The Fund also has the additional risk of not being able to enter into
a closing transaction if a liquid secondary market does not exist.
Written option activity for the year ended July 31, 1998 was as follows:
Call Options
-------------------------
Number of Amount of
Options Premiums
- --------------------------------------------------------------------
Options outstanding at July 31, 1997 -- $ --
Options written 20 19,255
Options closed or expired (20) (19,255)
--- ---------
Options outstanding at July 31, 1998 -- $ --
=== =========
- --------------------------------------------------------------------
7. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the year ended July 31, 1998.
31 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Independent Auditors' Report
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of
Oppenheimer New Jersey Municipal Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer New Jersey Municipal Fund (a series of Oppenheimer
Multi-State Municipal Trust) as of July 31, 1998, the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period then ended, and the financial
highlights for each of the years in the two-year period then ended, the seven-
month period ended July 31, 1996, the year ended December 31, 1995 and the
period from March 1, 1994 (commencement of operations) to December 31, 1994.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of July
31, 1998, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Oppenheimer New Jersey Municipal Fund as of July 31, 1998, the
results of its operations for the year then ended, the changes in its net assets
for each of the years in the two-year period then ended, and the financial
highlights for each of the years in the two-year period then ended, the seven-
month period ended July 31, 1996, the year ended December 31, 1995 and the
period from March 1, 1994 (commencement of operations) to December 31, 1994, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Denver, Colorado
August 21, 1998
32 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Federal Income Tax Information (Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 1999, shareholders will receive information regarding all divdends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $0.0911, $0.0839, and $0.0839 per share were paid to
Class A, Class B and Class C shareholders, respectively, on December 10, 1997,
of which, for each class of shares, $0.0013 was designated as a capital gain
distribution in the "28% Rate Group" and $0.0189 was designated as a capital
gain distribution in the "20% Rate Group" for federal income tax purposes.
Whether received in stock or cash,the capital gain distribution should be
treated by shareholders as a gain from the sale of capital assets.
None of the dividends paid by the Fund during the fiscal year ended July
31,1998 are eligible for the corporate dividend-received deduction. The
dividends were derived from interest on municipal bonds and are not subject to
federal income tax. To the extent a shareholder is subject to any state or local
tax laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
33 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 Advisor OppenheimerFunds, Inc.
- --------------------------------------------------------------------------------
Distributor OppenheimerFunds Distributor, Inc.
- --------------------------------------------------------------------------------
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
- --------------------------------------------------------------------------------
Custodian of Citibank,N.A.
Portfolio Securities
- --------------------------------------------------------------------------------
Independent Auditors KPMG Peat Marwick LLP
- --------------------------------------------------------------------------------
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
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.
34 Oppenheimer New Jersey Municipal Fund
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
OppenheimerFunds Family
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
- -------------------------------------------------------------------------------------------------
Real Asset Funds
- -------------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
- -------------------------------------------------------------------------------------------------
Global Stock Funds
- -------------------------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Quest Global Value Fund
International Small Global Fund Global Growth & Income Fund
Company Fund
- -------------------------------------------------------------------------------------------------
Stock Funds
- -------------------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Disciplined Value Fund
Quest Small Cap Value Fund Quest Capital Value Fund Quest Value Fund
- -------------------------------------------------------------------------------------------------
Stock & Bond Funds
- -------------------------------------------------------------------------------------------------
Main Street Income & Total Return Fund Disciplined Allocation Fund
Growth Fund Quest Balanced Multiple Strategies Fund
Quest Opportunity Value Fund/1/ Convertible Securities Fund/2/
Value Fund Equity Income Fund
- -------------------------------------------------------------------------------------------------
Taxable Bond Funds
- -------------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government Fund
High Yield Fund Bond Fund
- -------------------------------------------------------------------------------------------------
Municipal Bond Funds
- -------------------------------------------------------------------------------------------------
California Municipal Fund/3/ Pennsylvania Municipal Fund/3/ Rochester Division:
Florida Municipal Fund/3/ Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund/3/ Insured Municipal Fund Limited Term New York
New York Municipal Fund/3/ Intermediate Municipal Fund Municipal Fund
- -------------------------------------------------------------------------------------------------
Money Market Funds/4/
- -------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. On 5/18/98, the Fund's name was changed from "Quest Growth & Income
Value Fund."
2. On 4/28/98, the Fund's name was changed from "Bond Fund for Growth."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
(C) Copyright 1998 OppenheimerFunds, Inc. All rights reserved.
35 Oppenheimer New Jersey Municipal Fund
<PAGE>
Internet
24-hr access to account
information. Online
transactions now available
www.oppenheimerfunds.com
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-525-7048
Account Transactions
Mon-Fri 8:30am-8pm ET
1-800-852-8457
PhoneLink
24-hr automated information
and automated transactions
1-800-533-3310
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-2pm ET
1-800-843-4461
OppenheimerFunds
Information Hotline
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
1-800-835-3104
Information and services
- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number or by visiting our website. And, by
enrolling in AccountLink, a convenient service that "links" your Oppenheimer
funds accounts and your bank checking or savings account, you can use the
Telephone Transactions number or website to make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market infor-
mation. Of course, you can always speak to a Customer Service Representative
during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at www.oppenheimerfunds.com --
we're here to help.
[LOGO] OppenheimerFunds/(R)/
Distributor, Inc.
RA0395.001.0798 September 29, 1998
