<PAGE>
Semiannual Report January 31, 1998
OPPENHEIMER
New Jersey
Municipal Fund
[GRAPHIC OMITTED]
[LOGO]
OppenheimerFunds (SM)
THE RIGHT WAY TO INVEST
<PAGE>
Report highlights
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Contents
3 President's Letter
4 Fund Performance
6 An Interview
with the Fund's Manager
10 Statement of Investments
14 Statement of
Assets and
Liabilities
16 Statement of Operations
17 Statements of Changes in
Net Assets
18 Financial Highlights
21 Notes to Financial Statements
29 Officers and
Trustees
32 Information and Services
- ----------------------------------------------------
o Strong Returns: The Fund's Class A shares were ranked 4th of 56, and 9th of 42
New Jersey Municipal Funds for the 1- and 3-year periods, respectively, ending
December 31, 1997, by Lipper.(1)
o What We Think Is Ahead: An environment of slower global economic growth, lower
inflation, and lower interest rates could lead to an even more positive scenario
for municipal bonds.
- -----------------------------------
Cumulative Total Returns
- -----------------------------------
For the 6-Month Period
Ended 1/31/98
Class A
Without With
Sales Chg.(2) Sales Chg.(3)
- -----------------------------------
4.29% (0.67%)
- -----------------------------------
Class B
Without With
Sales Chg.(2) Sales Chg.(3)
- -----------------------------------
3.98% (1.02)%
- -----------------------------------
Class C
Without With
Sales Chg.(2) Sales Chg.(3)
- -----------------------------------
3.98% 2.98%
- -----------------------------------
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.
1. Source: Lipper Analytical Services, Inc., 12/31/97. Based on the comparisons
between changes in net asset value without considering sales charges, with
dividends and capital gains distributions of the Fund's Class A shares
reinvested. Past performance cannot guarantee future results. During the periods
covered by the rankings, the Fund's investment advisor voluntarily assumed
certain expenses, which increased the Fund's performance and relative rankings.
That voluntary expense assumption undertaking may be withdrawn at any time by
the advisor.
2. Includes changes 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%.
Class C returns include 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>
Dear shareholder,
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[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
New Jersey
Municipal Fund
These have been very positive times for many American investors. The U.S.
economy has continued to grow at a moderate pace, unemployment has fallen to its
lowest level in 30 years and inflation has also fallen to a record low. In fact,
long-term interest rates have fallen to their lowest level since
the government began issuing 30-year Treasury bonds in 1977.
What benefits does this provide to the average American? First, when
unemployment levels are low, many individuals tend to feel a greater sense of
job security and can command higher wages because there are fewer unemployed
workers vying for their jobs. Second, many homeowners are opting to refinance
their existing home mortgage loans and take advantage of lower financing rates.
And third, because wages are increasing faster than the rate of inflation, a
paycheck may stretch further and investors, as consumers, are able to enjoy a
higher level of disposable income. This extra income can be put to use in many
ways, including allocating more money to investment opportunities.
Some industry analysts have tempered such positive news by suggesting that
if the rate of inflation falls any lower, it might actually trigger a period of
deflation, where we see the prices of American goods and services decline. While
lower prices may sound like positive news, in reality it isn't: When prices fall
too low, it erodes the value of those goods to the producer. That is, when
economic conditions force a decrease in the price of goods, companies have to
sell more of those items in order to make the same amount of profit, which
translates into greater difficulties for corporations to improve their bottom
lines.
At OppenheimerFunds, we do not believe we will see a period of deflation
in the United States. The fundamental factors that have driven the U.S. market
still appear to be in place: an economy that's in its eighth year of expansion
with moderate growth, low unemployment, virtually no inflation and low interest
rates. However, because of economic uncertainties in other parts of the world,
particularly Asia, we expect to see slower growth for stocks in 1998 and a year
in which double-digit returns from the equity markets are unlikely. It's also
possible that we may see investors favor the fixed, more secure interest
payments offered from the bond markets.
In closing, we'd like to reassure you that as professional money managers,
we continue to keep a watchful eye on these situations and are closely
monitoring your fund's investments. In times like these, your financial advisor
can be of invaluable assistance to you in helping review your financial plan and
guide your investments accordingly.
Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest. We look forward to helping you reach your investment goals in the
future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
February 23, 1998
3 Oppenheimer New Jersey Municipal Fund
<PAGE>
Performance update
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- ------------------------------------
Avg Annual Total Returns(1)
- ------------------------------------
For the Periods Ended 12/31/97
Class A
Since
1 year Inception
- ------------------------------------
4.31% 4.88%
- ------------------------------------
Class B
Since
1 year Inception
- ------------------------------------
3.70% 4.70%
- ------------------------------------
Class C
Since
1 year Inception
- ------------------------------------
7.75% 7.47%
- ------------------------------------
- ------------------------------------
Standardized Yields
- ------------------------------------
For the 30 Days Ended 1/31/98(2)
Class A
- ------------------------------------
4.39%
- ------------------------------------
Class B
- ------------------------------------
3.85%
- ------------------------------------
Class C
- ------------------------------------
3.84%
- ------------------------------------
Once again, Oppenheimer New Jersey Municipal Fund's strong performance has
placed the Fund near the top of its peer group, the universe of New Jersey
municipal bond funds. For the six-month period ended January 31, 1998, the
Fund's Class A shares posted a cumulative total return, without sales charges,
of 4.29%, and the Fund ranked in the top Lipper quartile among New Jersey
Municipal Funds for both the 1- and 3-year periods ending December 31, 1997.(3)
In addition, Oppenheimer New Jersey Municipal Fund's Class A shares were given a
four-star overall ranking by Morningstar Mutual Funds among 1,494 municipal bond
funds for the 3-year period ended December 31, 1997.(4)
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Top 10 Industries
(Percentage of invested assets)(5)
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Hospital/Health Care 13.5% Adult Living Facilities 7.4%
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Highways 12.4 Electric Utilities 6.1
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General Obligation 11.4 Higher Education 4.9
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Marine/Aviation Facilities 9.0 Corporate Backed 4.8
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Lease Rental 8.1 Parking Fee Revenue 4.2
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1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
4.75%. Class A and B shares were first publicly offered on 3/1/94. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 3% (since inception). Class C returns include the contingent deferred sales
charge of 1% for the 1-year result. Class C shares were first offered on
8/29/95. 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. Standardized yield is based on net investment income for the 30-day period
ended 1/31/98. Falling share prices will tend to artificially raise yields.
3. Source: Lipper Analytical Services, Inc., 12/31/97. Based on the comparisons
between changes in net asset value without considering sales charges, with
dividends and capital gains distributions of the Fund's Class A shares
reinvested.
4 Oppenheimer New Jersey Municipal Fund
<PAGE>
Portfolio review
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Oppenheimer New Jersey Municipal Fund is for investors looking for income that's
exempt from federal and New Jersey income taxes.
Credit Allocation(6)
[Pie Chart Omitted]
o AAA 48.6%
o AA 9.2
o A 20.0
o BBB 12.9
o BB 9.3
What We Look For
o Securities that provide high current income.
o Sectors and regions that offer relative value.
o Municipal projects or regions with improving credit quality.
o Investment opportunities from a wide range of securities statewide.
State/U.S. Territory Breakdown
(Percentage of invested assets)(5)
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New Jersey 68.6%
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Puerto Rico 19.5
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Multistate Authority 10.8
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Virgin Islands 0.7
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Guam 0.4
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4. Source: Morningstar, Inc. 12/31/97. 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.
5. Portfolio weightings are as of 1/31/98, and are subject to change.
6. Portfolio data is as of January 31, 1998 and 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 9.3% 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.
5 Oppenheimer New Jersey Municipal Fund
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How has the Fund performed?
The Fund performed very well during the period. For the six-month period ended
January 31, 1998, Oppenheimer New Jersey Municipal Fund's Class A shares posted
a cumulative total return of 4.29%.(1 In addition, the Fund's Class A shares
were given a four-star overall ranking by Morningstar Mutual Funds.
- -------------------------------------------------------------------------------
"Our goal is to buy bonds with longer call protection--preferably ten years."
- --------------------------------------------------------------------------------
What factors contributed to the Fund's success?
Often, the successful investor is a contrarian investor. For a long time, we
believed that interest rates were truly headed downward, while many of our
competitors were expecting a return of inflation. As a result, we continued to
extend the portfolio's maturity while some of our competitors did the opposite.
Bonds with longer maturities rise in price more than bonds with shorter
maturities when interest rates fall. The reason: investors are willing to pay
more for bonds that lock in high yields for a longer period of time.
The second factor that contributed to our strong performance was our
decision to boost our Commonwealth of Puerto Rico holdings to 25% of the
portfolio. As a New Jersey municipal bond fund, our choice of investments is
limited to New Jersey state and municipal bonds and bonds issued by U.S.
territories, possessions and commonwealths, such as Puerto Rico. At the time we
made our decision, New Jersey bonds were expensive and in short supply. However,
there was an oversupply of Puerto Rico securities, allowing us to buy these
bonds at a discount. Once the excess supply was absorbed, the Puerto Rico bonds
rose in price versus the broad market.
1. Includes changes 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.
6 Oppenheimer New Jersey Municipal Fund
<PAGE>
[PHOTO]
Portfolio Management
Team (l to r)
Bob Patterson
Caryn Halbrecht
(Portfolio Manager)
Jerry Webman
What types of bonds are you buying now?
When interest rates are falling, it is vitally important to invest in bonds with
the right structure. Unlike U.S. Treasury bonds, many municipal bonds can be
"called" by the issuer when interest rates fall. That is, the issuer can decide
to pay off the bond and refinance at lower interest rates. Bonds with no "call
protection" can be called right away, while bonds with good call protection
can't be called for several years. In a falling interest rate environment, bonds
that can be called soonest perform poorly relative to bonds with call
protection. Therefore, our goal has been to buy bonds with longer call
protection--preferably ten years or more. And we've been successful. A year
ago, only 7% of our bonds had at least ten years of call protection--as of
January 31st, 46% did.
We're also buying bonds with slightly lower credit ratings so that we can
earn extra yield. As interest rates fall, investors clamor for additional
income, making bonds with slightly lower credit ratings more attractive. By
doing our research, we believe we can add value through a portfolio that
includes lower-rated investment-grade bonds that may eventually be upgraded by
the national credit rating agencies.
For example, we own bonds issued by Monmouth University in New Jersey that
appear to us to be underrated by Moody's Investors Service and Standard & Poor's
Corporation. We think the bond ratings may reflect conditions that existed a few
years ago because the school is in an increasingly strong economic area in New
Jersey. It has a growing enrollment and an excellent academic reputation.
7 Oppenheimer New Jersey Municipal Fund
<PAGE>
An interview with your Fund's manager
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- --------------------------------------------------------------------------------
"Cities and counties across the U.S. are enjoying strong fiscal health."
- --------------------------------------------------------------------------------
What is your outlook?
Cities and counties across the U.S. are enjoying strong fiscal health. Like the
federal government, which now has a budget that is finally in balance for the
first time in 30 years, municipalities are benefiting from an increase in tax
revenues due to our healthy economy. The improved financial condition of our
cities and counties is permitting them to undertake infrastructure projects that
they have postponed for several years due to budget shortfalls. These new
projects will result in an increase in the supply of bonds this year, and may
keep pressure on municipal bond prices as a result.
On a broader scale, the recent financial crisis in the Asian region may
mean good news for U.S. bond investors. Weak demand for U.S. goods combined with
a rise in exports to our country are likely to keep inflation low, in spite of
our strong economy.
With that said, we are proceeding cautiously. We think today's consensus
among bond buyers is that interest rates are headed lower. Therefore, the risk
to bond portfolios has increased as more and more buyers have come to believe in
the low inflation scenario. As always, our goal is to anticipate possible
changes before they become obvious to the market.
8 Oppenheimer New Jersey Municipal Fund
<PAGE>
Financials
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9 Oppenheimer New Jersey Municipal Fund
<PAGE>
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Statement of Investments January 31, 1998 (Unaudited)
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<TABLE>
<CAPTION>
Ratings:
Moody's/ Face Market Value
S&P/Fitch Amount See Note 1
========================================================================================
<S> <C> <C> <C>
Municipal Bonds and Notes--101.8%
- ----------------------------------------------------------------------------------------
New Jersey--80.9%
Bayonne, NJ GOB, FGIC Insured, 6%, 5/1/13 Aaa/AAA/AAA $ 100,000 $ 109,212
- ----------------------------------------------------------------------------------------
Bergen Cnty., NJ MUAU Water PC RB, Prerefunded,
Series A, FGIC Insured, 6.50%, 12/15/12 Aaa/AAA/AAA 400,000 446,220
- ----------------------------------------------------------------------------------------
East Orange, NJ GOB, FSA Insured,
8.40%, 8/1/06 Aaa/AAA 1,000,000 1,284,640
- ----------------------------------------------------------------------------------------
Essex Cnty., NJ Improvement Authority RB,
Utility System-Orange Franchise, Series A,
MBIA Insured, 5.75%, 7/1/27 Aaa/AAA 1,000,000 1,066,150
- ----------------------------------------------------------------------------------------
Hoboken, Union City & Weehawken,
NJ Sewer Authority RRB, MBIA Insured,
6.20%, 8/1/19 Aaa/AAA 85,000 93,245
- ----------------------------------------------------------------------------------------
Hudson Cnty., NJ MUAU System RB,
Prerefunded, 11.875%, 7/1/06 Aaa/AAA 520,000 653,188
- ----------------------------------------------------------------------------------------
Mercer Cnty., NJ Improvement Authority RB,
Justice Complex Project, 6.05%, 1/1/11 Aa/AA- 250,000 250,370
- ----------------------------------------------------------------------------------------
Middlesex Cnty., NJ Utilities Authority Sewer
RRB, Series A, FGIC Insured, 5.25%, 12/1/09 Aaa/AAA 1,025,000 1,096,330
- ----------------------------------------------------------------------------------------
New Brunswick, NJ Parking Authority RRB,
Series A, FGIC Insured, 6.50%, 9/1/19 Aaa/AAA 150,000 166,263
- ----------------------------------------------------------------------------------------
Newark, NJ GOB, Additional State School
Building Aid, 10%, 6/1/03 Aa3/AA 720,000 915,329
- ----------------------------------------------------------------------------------------
Newark, NJ School Qualified Bond Act GOB,
MBIA Insured, 5.30%, 9/1/08 Aaa/AAA 1,000,000 1,064,900
- ----------------------------------------------------------------------------------------
NJ Building Authority RRB, 5%, 6/15/10 Aa2/AA- 2,000,000 2,077,320
- ----------------------------------------------------------------------------------------
NJ Casino Reinvestment DAU Parking Fee RB,
Series A, FSA Insured, 5.20%, 10/1/08 Aaa/AAA/AAA 1,000,000 1,056,740
- ----------------------------------------------------------------------------------------
NJ Casino Reinvestment DAU Parking Fee RB,
Series A, FSA Insured, 5.25%, 10/1/13 Aaa/AAA 1,000,000 1,033,640
- ----------------------------------------------------------------------------------------
NJ EDAU PC RB, Public Service Electric & Gas Co.
Project, Series A, MBIA Insured, 6.40%, 5/1/32 Aaa/AAA 500,000 550,445
- ----------------------------------------------------------------------------------------
NJ EDAU RRB, First Mortgage-Franciscan Oaks
Project, 5.70%, 10/1/17 NR/NR 2,235,000 2,257,484
- ----------------------------------------------------------------------------------------
NJ EDAU RRB, First Mortgage-Keswick Pines,
5.60%, 1/1/12 NR/NR 600,000 597,096
- ----------------------------------------------------------------------------------------
NJ EDAU RRB, First Mortgage-Keswick Pines,
5.70%, 1/1/18(1) NR/NR 1,150,000 1,138,500
- ----------------------------------------------------------------------------------------
NJ EDAU Water Facilities RB, American
Water Co., Inc. Project, Series A, FGIC Insured,
6.875%, 11/1/34 Aaa/AAA/AAA 500,000 570,500
</TABLE>
10 Oppenheimer New Jersey Municipal Fund
<PAGE>
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<TABLE>
<CAPTION>
Ratings:
Moody's/ Face Market Value
S&P/Fitch Amount See Note 1
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
New Jersey (continued)
NJ EDAU Water Facilities RB,
American Water Co., Inc. Project,
Series B, FGIC Insured, 5.375%, 5/1/32 Aaa/AAA $2,000,000 $2,029,080
- -----------------------------------------------------------------------------------------
NJ Educational FA RRB, Institute of
Advanced Study, Series F, 5%, 7/1/11 Aaa/AA+ 1,130,000 1,166,092
- -----------------------------------------------------------------------------------------
NJ Educational FA RRB, Monmouth University,
Series C, 5.80%, 7/1/22 Baa2/BBB 1,000,000 1,038,030
- -----------------------------------------------------------------------------------------
NJ GOB, Series D, 8%, 2/15/07 Aa1/AA+/AA+ 400,000 509,548
- -----------------------------------------------------------------------------------------
NJ HCF FAU RB, Centrastate Medical Center,
Series A, AMBAC Insured, 6%, 7/1/21 Aaa/AAA/AAA 100,000 105,121
- -----------------------------------------------------------------------------------------
NJ HCF FAU RB, Columbus Hospital,
Series A, 7.50%, 7/1/21 Baa3/BBB- 1,000,000 1,079,590
- -----------------------------------------------------------------------------------------
NJ HCF FAU RB, Southern Ocean Cnty. Hospital,
Series A, 6.25%, 7/1/23 Baa1/NR/BBB 1,000,000 1,066,580
- -----------------------------------------------------------------------------------------
NJ HCF FAU RB, St. Elizabeth Hospital
Obligation Group, 6%, 7/1/20 Baa3/BBB 1,000,000 1,057,150
- -----------------------------------------------------------------------------------------
NJ HCF FAU RB, St. Joseph's Hospital &
Medical Center, Series A, 6%, 7/1/26 NR/AAA/A- 750,000 812,197
- -----------------------------------------------------------------------------------------
NJ HCF FAU RBB, Capital Health System
Obligation Group, 5.125%, 7/1/12 Baa1/A- 2,000,000 1,991,840
- -----------------------------------------------------------------------------------------
NJ HFAU RRB, Dover General Hospital &
Medical Center, MBIA Insured, 7%, 7/1/03 Aaa/AAA 1,000,000 1,138,560
- -----------------------------------------------------------------------------------------
NJ Mtg. & HFA MH RB, Series A,
AMBAC Insured, 6.25%, 5/1/28 Aaa/AAA 1,000,000 1,068,590
- -----------------------------------------------------------------------------------------
NJ Mtg. & HFA RB, Home Buyer, Series J,
MBIA Insured, 6.20%, 10/1/25 Aaa/AAA 200,000 209,900
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NJ Mtg. & HFA RB, Home Buyer, Series S,
MBIA Insured, 6.05%, 10/1/28 Aaa/AAA 1,000,000 1,050,470
- -----------------------------------------------------------------------------------------
NJ Mtg. & HFA RRB, Series 1, 6.70%, 11/1/28 NR/A+ 150,000 161,242
- -----------------------------------------------------------------------------------------
NJ Sports & Exposition Authority RB,
Convention Center Luxury Tax, Series A,
MBIA Insured, 6.25%, 7/1/20 Aaa/AAA 80,000 87,813
- -----------------------------------------------------------------------------------------
NJ Transportation Trust Fund Authority RB,
Transportation System, Series B, 5%, 6/15/17 Aa3/A+/AA 1,000,000 997,480
- -----------------------------------------------------------------------------------------
NJ TUAU RRB, Series C, 6.50%, 1/1/16 Baa1/BBB+/A- 950,000 1,119,813
- -----------------------------------------------------------------------------------------
NJ TUAU RRB, Series C, MBIA Insured,
6.50%, 1/1/09 Aaa/AAA 1,000,000 1,180,970
- -----------------------------------------------------------------------------------------
NJ Wastewater Treatment Trust RRB, Series A,
MBIA Insured, 7%, 9/1/07(2) Aaa/AAA/AAA 810,000 984,207
- -----------------------------------------------------------------------------------------
North Brunswick Township, NJ GOB,
6.40%, 5/15/08 A1/A+ 500,000 553,510
</TABLE>
11 Oppenheimer New Jersey Municipal Fund
<PAGE>
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Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings:
Moody's/ Face Market Value
S&P/Fitch Amount See Note 1
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New Jersey (continued)
North Jersey District Water Supply RRB,
Wanaque North Project, Series A,
MBIA Insured, 5.125%, 11/15/21 Aaa/AAA $ 1,000,000 $ 999,240
- -------------------------------------------------------------------------------------------
PAUNYNJ Consolidated RB, 94th Series,
6%, 12/1/14 A1/AA-/AA- 200,000 217,102
- -------------------------------------------------------------------------------------------
PAUNYNJ SPO RB, JFK International Air
Terminal Project, Series 6, MBIA Insured,
5.75%, 12/1/25 Aaa/AAA/AAA 2,000,000 2,115,280
- -------------------------------------------------------------------------------------------
PAUNYNJ SPO RB, JFK International Air
Terminal Project, Series 6, MBIA Insured,
7%, 12/1/12 Aaa/AAA 2,000,000 2,492,160
- -------------------------------------------------------------------------------------------
PAUNYNJ SPO RRB, KIAC-4 Project,
5th Installment, 6.75%, 10/1/19 NR/NR 900,000 1,005,399
- -------------------------------------------------------------------------------------------
Sussex Cnty., NJ General Improvement GOB,
AMBAC Insured, 6%, 4/1/07 Aaa/AAA/AAA 135,000 146,792
----------
42,811,328
- -------------------------------------------------------------------------------------------
U.S. Possessions--20.9%
Guam PAU RB, Series A, 6.30%, 10/1/22 NR/BBB 185,000 197,428
- -------------------------------------------------------------------------------------------
PR CMWLTH GOB, 5.375%, 7/1/25 Baa1/A 1,500,000 1,533,855
- -------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series Y, 5%, 7/1/36 Baa1/A 1,000,000 996,570
- -------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series Y, 5.50%, 7/1/26 Baa1/A 2,000,000 2,073,780
- -------------------------------------------------------------------------------------------
PR CMWLTH HTAU RRB, Series V, 6.625%, 7/1/12 Baa1/A 300,000 331,263
- -------------------------------------------------------------------------------------------
PR CMWLTH Infrastructure FAU Special RB,
Series A, AMBAC Insured, 5%, 7/1/11 Aaa/AAA 1,000,000 1,038,210
- -------------------------------------------------------------------------------------------
PR EPAU RRB, Series Z, 5.50%, 7/1/16 Baa1/BBB+ 2,000,000 2,069,740
- -------------------------------------------------------------------------------------------
PR Industrial Tourist Educational Medical &
Environmental Control Facilities RB,
Polytechnic University Project, Series A,
6.50%, 8/1/24 NR/BBB- 410,000 447,101
- -------------------------------------------------------------------------------------------
PR Public Buildings Authority RB, Series B,
5.25%, 7/1/21 Baa1/A 2,000,000 2,013,580
- -------------------------------------------------------------------------------------------
Virgin Islands Housing FAU Single Family RRB,
Series A, 6.50%, 3/1/25 NR/AAA 350,000 372,428
----------
11,073,955
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Total Investments, at Value (Cost $51,070,617) 101.8% 53,885,283
- -------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (1.8) (947,786)
--------- ----------
Net Assets 100.0% $ 52,937,497
========= ==========
</TABLE>
12 Oppenheimer New Jersey Municipal Fund
<PAGE>
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<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
To simplify the listing of securities, abbreviations are used per the table below:
<S> <C> <C> <C>
CMWLTH -Commonwealth HTAU -Highway & Transportation Authority
DAU -Development Authority MH -Multifamily Housing
EDAU -Economic Development Authority MUAU -Municipal Utilities Authority
EPAU -Electric Power Authority PAUNYNJ -Port Authority of New York & New Jersey
FA -Facilities Authority PAU -Power Authority
FAU -Finance Authority PC -Pollution Control
GOB -General Obligation Bonds RB -Revenue Bonds
HCF -Health Care Facilities RRB -Revenue Refunding Bonds
HFA -Housing Finance Agency SPO -Special Obligations
HFAU -Health Facilities Authority TUAU -Turnpike Authority
</TABLE>
1. When-issued security to be delivered and settled after January 31, 1998.
2. Securities with an aggregate market value of $243,014 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
As of January 31, 1998, securities subject to the alternative minimum tax amount
to $11,464,252 or 21.66% 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
- --------------------------------------------------------------------------------
Hospital/Healthcare $ 7,251,039 13.5%
- --------------------------------------------------------------------------------
Highways 6,699,876 12.4
- --------------------------------------------------------------------------------
General Obligation 6,117,786 11.4
- --------------------------------------------------------------------------------
Marine/Aviation Facilities 4,824,542 9.0
- --------------------------------------------------------------------------------
Lease Rental 4,341,270 8.0
- --------------------------------------------------------------------------------
Adult Living Facilities 3,993,080 7.4
- --------------------------------------------------------------------------------
Electric Utilities 3,272,567 6.1
- --------------------------------------------------------------------------------
Higher Education 2,651,223 4.9
- --------------------------------------------------------------------------------
Corporate Backed 2,599,580 4.8
- --------------------------------------------------------------------------------
Parking Fee Revenue 2,256,643 4.2
- --------------------------------------------------------------------------------
Sewer Utilities 2,173,781 4.0
- --------------------------------------------------------------------------------
Water Utilities 2,165,557 4.0
- --------------------------------------------------------------------------------
Single Family Housing 1,632,798 3.0
- --------------------------------------------------------------------------------
Multi-Family Housing 1,229,833 2.3
- --------------------------------------------------------------------------------
Sales Tax 1,126,023 2.1
- --------------------------------------------------------------------------------
Telephone Utilities 999,240 1.9
- --------------------------------------------------------------------------------
Pollution Control 550,445 1.0
---------- -----
$53,885,283 100.0%
=========== =====
See accompanying Notes to Financial Statements.
13 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
Assets
Investments, at value (cost $51,070,617)--see
accompanying statement $ 53,885,283
- -------------------------------------------------------------------------------
Cash 128,604
- -------------------------------------------------------------------------------
Receivables:
Interest 541,105
Shares of beneficial interest sold 343,545
Daily variation on futures contracts--Note 5 2,443
- -------------------------------------------------------------------------------
Other 2,305
------------
Total assets 54,903,285
===============================================================================
Liabilities
Payables and other liabilities:
Investments purchased 1,738,626
Dividends 128,182
Trustees' fees--Note 1 45,233
Distribution and service plan fees 13,134
Shares of beneficial interest redeemed 8,889
Transfer and shareholder servicing agent fees 4,794
Other 26,930
------------
Total liabilities 1,965,788
===============================================================================
Net Assets $ 52,937,497
============
===============================================================================
Composition of Net Assets
Paid-in capital $ 50,393,445
- -------------------------------------------------------------------------------
Undistributed net investment income 16,021
- -------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (259,604)
- -------------------------------------------------------------------------------
Net unrealized appreciation on investments--Notes 3 and 5 2,787,635
------------
Net assets $ 52,937,497
============
14 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
============================================================================================
<S> <C>
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$24,469,220 and 2,094,173 shares of beneficial interest outstanding) $11.68
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $12.26
- --------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $25,224,210 and
2,159,999 shares of beneficial interest outstanding) $11.68
- --------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $3,244,067 and
277,751 shares of beneficial interest outstanding) $11.68
See accompanying Notes to Financial Statements
</TABLE>
15 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
===============================================================================
Investment Income
Interest $ 1,309,402
===============================================================================
Expenses
Management fees--Note 4 139,228
- -------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 26,482
Class B 109,853
Class C 12,763
- -------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 25,311
- -------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 18,738
- -------------------------------------------------------------------------------
Legal and auditing fees 6,267
- -------------------------------------------------------------------------------
Shareholder reports 5,891
- -------------------------------------------------------------------------------
Custodian fees and expenses 5,080
- -------------------------------------------------------------------------------
Registration and filing fees 3,726
- -------------------------------------------------------------------------------
Insurance expenses 2,096
- -------------------------------------------------------------------------------
Other 727
---------
Total expenses 356,162
Less assumption of expenses by OppenheimerFunds, Inc.--Note 4 (157,377)
Less expenses paid indirectly--Note 4 (4,933)
---------
Net expenses 193,852
===============================================================================
Net Investment Income 1,115,550
===============================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 152
Closing of futures contracts (212,192)
Closing of options written 8,805
---------
Net realized loss (203,235)
- -------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on
investments 1,115,173
---------
Net realized and unrealized gain 911,938
===============================================================================
Net Increase in Net Assets Resulting from Operations $ 2,027,488
==========
See accompanying Notes to Financial Statements
16 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
January 31, 1998 Year Ended
(Unaudited) July 31, 1997
==========================================================================================
<S> <C> <C>
Operations
Net investment income $ 1,115,550 $ 1,425,703
- ------------------------------------------------------------------------------------------
Net realized gain (loss) (203,235) 150,628
- ------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 1,115,173 1,262,319
---------- ----------
Net increase in net assets resulting from operations 2,027,488 2,838,650
==========================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (570,392) (767,546)
Class B (489,600) (624,119)
Class C (56,624) (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 5,019,370 7,082,671
Class B 6,218,807 8,269,186
Class C 1,122,867 1,889,520
==========================================================================================
Net Assets
Total increase 13,101,780 18,609,361
- ------------------------------------------------------------------------------------------
Beginning of period 39,835,717 21,226,356
---------- ----------
End of period [including (undistributed) net investment
income of $16,021 and $(33,116), respectively] $ 52,937,497 $ 39,835,717
========== ==========
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
---------------------------------------
Six Months
Ended
January 31,
1998 Year Ended July 31,
(Unaudited) 1997 1996(2)
===========================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 11.54 $ 11.10 $ 11.26
- -------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .32 .62 .36
Net realized and unrealized gain (loss) .16 .45 (.16)
------ ------ ------
Total income (loss) from investment operations .48 1.07 .20
- -------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.30) (.61) (.36)
Distributions from net realized gain (.04) (.02) --
------ ------ ------
Total dividends and distributions to shareholders (.34) (.63) (.36)
- -------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.68 $ 11.54 $ 11.10
======= ======= =======
===========================================================================================
Total Return, at Net Asset Value(4) 4.29% 9.99% 1.80%
===========================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $24,469 $19,109 $11,354
- -------------------------------------------------------------------------------------------
Average net assets (in thousands) $21,737 $14,072 $10,036
- -------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.22%(6) 5.45% 5.49%(6)
Expenses, before reimbursement and voluntary
assumption by the Manager or Distributor(7) 1.13%(6) 1.08% 1.64%(6)
Expenses, net of reimbursement and voluntary
assumption by the Manager or Distributor 0.44%(6) 0.88% 0.97%(6)
- -------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 38.0% 11.9% 33.1%
</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.
18 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
- --------------------------- ---------------------------------------------------------------
Six Months
Ended
January 31,
Year Ended December 31, 1998 Year Ended July 31, Year Ended December 31,
1995 1994(3) (Unaudited) 1997 1996(2) 1995 1994(3)
===================================================================================================
<S> <C> <C> <C> <C> <C> <C>
$ 10.41 $ 11.43 $ 11.53 $ 11.09 $ 11.25 $ 10.40 $ 11.43
- ---------------------------------------------------------------------------------------------------
.61 .49 .27 .53 .31 .53 .41
.86 (1.02) .18 .46 (.16) .86 (1.02)
------ ------ ------ ------ ------ ------ ------
1.47 (.53) .45 .99 .15 1.39 (.61)
- ---------------------------------------------------------------------------------------------------
(.61) (.49) (.26) (.53) (.31) (.53) (.42)
(.01) -- (.04) (.02) -- (.01) --
------ ------ ------ ------ ------ ------ ------
(.62) (.49) (.30) (.55) (.31) (.54) (.42)
- ----------------------------------------------------------------------------------------------------
$ 11.26 $ 10.41 $ 11.68 $ 11.53 $ 11.09 $ 11.25 $ 10.40
======= ======= ======= ======= ======= ======= =======
====================================================================================================
14.42% (4.63)% 3.98% 9.18% 1.34% 13.59% (5.39)%
====================================================================================================
$ 8,806 $ 3,877 $25,224 $18,647 $ 9,740 $ 5,222 $ 2,986
- ----------------------------------------------------------------------------------------------------
$ 6,504 $ 2,506 $21,827 $13,278 $ 7,774 $ 4,080 $ 1,841
- ----------------------------------------------------------------------------------------------------
5.51% 5.57%(6) 4.43%(6) 4.70% 4.70%(6) 4.79% 4.76%(6)
1.75% 1.46%(6) 1.89%(6) 1.83% 2.40%(6) 2.49% 2.29%(6)
0.80% 0.31%(6) 1.19%(6) 1.62% 1.74%(6) 1.53% 1.14%(6)
- ----------------------------------------------------------------------------------------------------
7.4% 17.3% 38.0% 11.9% 33.1% 7.4% 17.3%
</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 January 31, 1998 were $30,817,623 and $17,606,574, respectively.
19 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
-------------------------------------------
Six Months
Ended Period
January 31, Ended
1998 Year Ended July 31, December 31,
(Unaudited) 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 .27 .53 .30 .19
Net realized and unrealized gain (loss) .18 .45 (.16) .25
------ ------ ------ ------
Total income (loss) from investment operations .45 .98 .14 .44
- ---------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.26) (.52) (.30) (.19)
Distributions from net realized gain (.04) (.02) -- (.01)
------ ------ ------ ------
Total dividends and distributions to shareholders (.30) (.54) (.30) (.20)
- ---------------------------------------------------------------------------------------------
Net asset value, end of period $11.68 $11.53 $11.09 $11.25
====== ====== ====== ======
=============================================================================================
Total Return, at Net Asset Value(4) 3.98% 9.11% 1.29% 4.07%
=============================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $3,244 $2,080 $ 132 $ 50
- ---------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,538 $ 747 $ 74 $ 3
- ---------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.45%(6) 4.56% 4.66%(6) --(5)
Expenses, before reimbursement and voluntary
assumption by the Manager or Distributor(7) 1.89%(6) 1.79% 2.48%(6) --(5)
Expenses, net of reimbursement and voluntary
assumption by the Manager or Distributor 1.18%(6) 1.60% 1.81%(6) --(5)
- ---------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 38.0% 11.9% 33.1% 7.4%
</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.
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, 1998 were $30,817,623 and $17,606,574, respectively.
See accompanying Notes to Financial Statements.
20 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
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 available from municipal securities and that 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. Options are valued based upon the last sale price on the
principal exchange on which the option is traded or, in the absence of any
transactions that day, the value is based upon the last sale price on the prior
trading date if it is within the spread between the closing bid and asked
prices. If the last sale price is outside the spread, the closing bid is used.
- --------------------------------------------------------------------------------
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.
21 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies (continued)
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
- --------------------------------------------------------------------------------
Trustees' Fees and Expenses. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the six months
ended January 31, 1998, a provision of $19,551 was made for the Fund's projected
benefit obligations resulting in an accumulated liability of $45,233 at January
31, 1998.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date). Original issue discount or premiums on
securities purchased are 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. Accordingly, during the six months ended January
31, 1998, amounts have been reclassified to reflect an increase in undistributed
net investment income of $239,027. Paid-in capital was decreased by 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.
22 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, 1998 Year Ended July 31, 1997
----------------------------- -----------------------
Shares Amount Shares Amount
===========================================================================================
<S> <C> <C> <C> <C>
Class A:
Sold 547,570 $ 6,281,231 837,412 $ 9,364,872
Dividends and distributions
reinvested 37,006 424,473 46,887 524,696
Redeemed (146,816) (1,686,334) (251,097) (2,806,897)
------- ---------- ------- ----------
Net increase 437,760 $ 5,019,370 633,202 $ 7,082,671
======= =========== ======= ===========
- -------------------------------------------------------------------------------------------
Class B:
Sold 582,098 $ 6,677,020 837,497 $ 9,367,955
Dividends and distributions
reinvested 31,415 360,229 36,119 404,040
Redeemed (70,874) (818,442) (134,448) (1,502,809)
------- ---------- ------- ----------
Net increase 542,639 $ 6,218,807 739,168 $ 8,269,186
======= =========== ======= ===========
- -------------------------------------------------------------------------------------------
Class C:
Sold 109,993 $ 1,268,042 185,940 $ 2,083,594
Dividends and distributions
reinvested 4,810 55,180 2,216 24,849
Redeemed (17,448) (200,355) (19,626) (218,923)
------- ---------- ------- ----------
Net increase 97,355 $ 1,122,867 168,530 $ 1,889,520
======= =========== ======= ===========
</TABLE>
- --------------------------------------------------------------------------------
3. Unrealized Gains and Losses on Investments
At January 31, 1998, net unrealized appreciation on investments of $2,814,666
was composed of gross appreciation of $2,814,666.
23 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (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% on
the first $200 million of average annual 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 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 six months ended January 31, 1998, commissions (sales charges paid
by investors) on sales of Class A shares totaled $126,105, of which $20,233 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 $250,730 and $11,817, respectively, of which $9,273 was
paid to an affiliated broker/dealer for Class B shares. During the six months
ended January 31, 1998, OFDI received contingent deferred sales charges of
$21,691 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 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.
24 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted a 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 that may not exceed 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. During
the six months ended January 31, 1998, OFDI retained $90,131 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 salescharge to OFDI for
distributing shares before the Plan was terminated. As of January 31, 1998, OFDI
had incurred unreimbursed expenses of $879,497 for Class B.
The Fund has adopted a 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 that may not exceed 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 January 31, 1998, OFDI retained $10,742 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 January 31, 1998, OFDI had incurred
unreimbursed expenses of $33,543 for Class C.
25 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
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 tochanges in interest rates as it may be more efficient or cost
effective than buying fixed income securities.
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) 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.
At January 31, 1998, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
Expiration Number of Valuation as of Unrealized
Date Contracts January 31, 1998 Depreciation
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Municipal Bonds 3/98 20 $2,486,250 $16,875
U.S. Treasury Bonds, 30 yr. 3/98 25 3,057,081 10,156
------
$27,031
=======
</TABLE>
26 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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 or the cost of the security for
a purchased put option is adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a
footnote to the Statement of Investments. 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 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 six months ended January 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 exercised -- --
------ --------
Options outstanding at January 31, 1998 -- $ --
====== ========
27 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
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 six months ended January
31, 1998.
28 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
The financial statements included herein have been
taken from the records of the Fund without examination
of 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.
29 Oppenheimer New Jersey Municipal Fund
<PAGE>
- --------------------------------------------------------------------------------
OppenheimerFunds Family
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
====================================================================================
<S> <C> <C>
Real Asset Funds
- ------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
====================================================================================
Stock Funds
- ------------------------------------------------------------------------------------
Developing Markets Fund Discovery Fund Growth Fund
International Small Quest Small Cap Value Fund Global Fund
Company Fund MidCap Fund Quest Global Value Fund
Enterprise Fund Capital Appreciation Fund Disciplined Value Fund
International Growth Fund Quest Capital Value Fund Quest Value Fund
====================================================================================
Stock & Bond Funds
- ------------------------------------------------------------------------------------
Main Street Income & Quest Growth & Income Disciplined Allocation Fund
Growth Fund Value Fund Multiple Strategies Fund
Quest Opportunity Value Global Growth & Income Fund Bond Fund for Growth
Fund Equity Income Fund
Total Return Fund
====================================================================================
Bond Funds
- ------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
High Yield Fund Strategic Income Fund Limited-Term Government Fund
Bond Fund
====================================================================================
Municipal Funds
- ------------------------------------------------------------------------------------
California Municipal Fund(1) Pennsylvania Municipal Fund(1) Rochester Division:
Florida Municipal Fund(1) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(1) Insured Municipal Fund Limited Term New York
New York Municipal Fund(1) Intermediate Municipal Fund Municipal Fund
====================================================================================
Money Market Funds(2)
- ------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
====================================================================================
LifeSpan
- ------------------------------------------------------------------------------------
Growth Fund Balanced Fund Income Fund
</TABLE>
1. Available only to investors in certain states.
2. An investment in money market funds is neither insured nor guaranteed by the
U.S. government and there can be no assurance that a money market fund will be
able to maintain a stable net asset value of $1.00 per share.
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.
30 Oppenheimer New Jersey Municipal Fund
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
Information and services
- --------------------------------------------------------------------------------
Internet
24-hr access to account information
- -------------------------------------------
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
- -------------------------------------------
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. 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 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
information. Of course, you can always speak with 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 (SM)
Distributor, Inc.
RS0395.001.0198 April 1, 1998
