<PAGE>
[PHOTO]
Semiannual Report January 31, 2000
Oppenheimer
NEW JERSEY
MUNICIPAL FUND
[LOGO]OPPENHEIMERFUNDS-Registered Trademark-
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
CONTENTS
<TABLE>
<S> <C>
1 President's Letter
3 An Interview with Your Fund's Manager
9 Financial Statements
25 Officers and Trustees
</TABLE>
RISING INTEREST RATES HURT THE PERFORMANCE OF MUNICIPAL BONDS throughout the
reporting period.
AS OF JANUARY 31, 2000, LONG-TERM NEW JERSEY MUNICIPAL BONDS PROVIDED OVER 90%
OF THE YIELD AVAILABLE FROM COMPARABLE U.S. TREASURIES--making them attractive
values on an after-tax basis.
- ----------------------------
CUMULATIVE
TOTAL RETURNS
For the 6-Month Period
Ended 1/31/00*
<TABLE>
<CAPTION>
Class A
Without With
Sales Chg. Sales Chg.
- -----------------------
<S> <C>
- -7.53% -11.92%
Class B
Without With
Sales Chg. Sales Chg.
- -----------------------
- -7.88% -12.38%
Class C
Without With
Sales Chg. Sales Chg.
- -----------------------
- -7.88% -8.78%
- ----------------------------
</TABLE>
- ------------------
NOT FDIC INSURED.
NO BANK GUARANTEE.
MAY LOSE VALUE.
- ------------------
*See page 7 for further details.
<PAGE>
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
New Jersey
Municipal Fund
DEAR SHAREHOLDER,
Whenever a new year begins--let alone a new decade or century--it makes sense to
pause a moment to assess where we've been and where we're going.
In retrospect, U.S. stocks and bonds in 1999 were subject to sudden and
substantial swings in investor sentiment because of economic uncertainty. When
the year began, investors were concerned that growth in the United States might
slow in response to economic weakness overseas. At mid-year, investors were
concerned that the economy was too strong, potentially rekindling inflationary
pressures. Yet, by year end, it became clearer that while the U.S. economy grew
robustly in 1999, inflation remained at low levels. Indeed, investors appeared
more comfortable with the economy after the Federal Reserve Board demonstrated
its inflation-fighting resolve by raising interest rates three times between
June and November.
As is normal in a rising-interest-rate environment, bond prices generally
declined in 1999, led lower by U.S. Treasury bonds. In the stock market, while
most major indices advanced, strong performance was mostly limited to a handful
of large-capitalization growth companies, principally in the technology arena.
Smaller and value-oriented stocks provided particularly lackluster returns and,
overall, foreign stocks outperformed U.S. stocks in 1999.
Looking forward, we expect the U.S. economy to remain on a moderate-growth,
low-inflation course. As recent revisions of 1999's economic statistics
demonstrated, the economy has defied many analysts' forecasts by growing at a
strong rate, which should be positive for the bond market. Similarly, positive
economic forces could help the stock market's performance broaden to include
value-oriented and smaller stocks.
We see particularly compelling opportunities outside of the U.S. market.
Many foreign stocks also ended 1999 more attractively valued than large-cap U.S.
stocks, and economic trends in overseas markets could lead to higher stock
prices. In Europe, corporate restructuring has just begun, giving
1 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
companies there the same potential for cost-cutting and productivity
improvements that U.S. companies enjoyed 10 years ago. In Japan and Asia,
economic recovery is expected to gain strength, which could allow stocks to
rally from relatively low levels.
Another 1999 trend that should remain in force in 2000 is the growth of
businesses related to the Internet. The rise of e-commerce has been good for
consumers and the economy because of greater price competition, which has helped
keep inflation under control. The Internet has also been good for investors, as
even companies with no earnings have seen their stock prices soar. Clearly,
while the Internet is here to stay, not all "dot-com" companies will survive,
and many of these high-flying Internet stocks will eventually--and perhaps very
suddenly--return to more reasonable levels. The long-term winners are most
likely to be companies that support the Internet's growth with content or
infrastructure.
What else is in store for investors in 2000? While we do not have an
infallible crystal ball, we believe that in almost any investment environment,
consistent success stems from an unwavering focus on fundamental investment
principles such as maintaining a long-term perspective, using diversification to
manage risks, and availing oneself of the services of a knowledgeable financial
advisor. Indeed, these principles serve as the foundation for every investment
we offer, helping to make OppenheimerFunds THE RIGHT WAY TO INVEST in 2000 and
beyond.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
February 22, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and
are not intended to predict or depict performance of any particular fund.
Specific discussion, as it applies to your Fund, is contained in the pages that
follow.
2 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
[PHOTO]
Portfolio Management Team (l to r)
Christian Smith
(Portfolio Manager)
Robert Patterson
HOW DID THE FUND PERFORM DURING THE SIX-MONTH PERIOD THAT ENDED JANUARY 31,
2000?
A. It has been a difficult period for the municipal securities market, including
Oppenheimer New Jersey Municipal Fund. The rising interest rate environment, a
sharp decline in the demand for municipal bonds and a lack of supply of new
issues were some of the challenges the Fund encountered.
WHAT STEPS ARE YOU TAKING TO HELP IMPROVE THE FUND'S PERFORMANCE?
In November 1999, we began to restructure the Fund under the guidance of
Christian Smith, a money management professional with over 10 years' experience
in the municipal market. This change will help us gain a fresh perspective on
the New Jersey municipal market, and proactively access the opportunities
available for the Fund.
HOW DID THE ROBUST U.S. ECONOMY AFFECT THE OVERALL MUNICIPAL MARKET?
Ongoing economic strength led to higher interest rates, which, in turn, led to
lower bond prices. With bonds becoming less attractive to investors, many turned
to the stock market for better returns.
3 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
The lengthy economic expansion has also resulted in a decrease in supply of
municipal bonds. First, government surpluses on the federal and state level
resulted in less need to issue debt to finance new projects. Second, the rise in
interest rates caused a natural decline in the refinancing of existing debt.
When interest rates are on the upswing, there is little reason for an
organization to retire existing, lower yielding debt, and introduce new
securities with higher yields. Oftentimes in the financial markets, a decrease
in supply of a particular security leads to higher prices. However, the decline
in the demand for municipals, more than offset the falling supply.
HOW WAS THE FUND MANAGED GIVEN THIS DIFFICULT ENVIRONMENT?
Our focus has been to lower the portfolio's sensitivity to interest rates. For
example, we have been working to reduce the Fund's duration versus its benchmark
by focusing on shorter-term securities. When it appears that interest rates have
peaked, we may look to extend the Fund's duration to take advantage of rising
bond prices.
WHAT OTHER FACTORS INFLUENCED THE FUND'S PERFORMANCE?
In our view, we had identified several well-run healthcare and adult living
centers that would enhance performance. However, we were disappointed with the
results we achieved with these holdings. Lower reimbursement rates provided to
healthcare providers by government agencies, such as Medicare, hindered the
profitability of these facilities. This decline in revenue, coupled with an
oversupply of healthcare service providers, caused the prices of our healthcare
issues to decline. We are currently seeking opportunities to reduce the Fund's
exposure to this sector.
[SIDENOTE:]
"OUR FOCUS HAS BEEN TO LOWER THE PORTFOLIO'S SENSITIVITY TO CHANGES IN INTEREST
RATES."
[/SIDENOTE:]
4 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
HOW DID NEW JERSEY MUNICIPAL BONDS PERFORM COMPARED TO U.S. TREASURIES?
As interest rates rose, both types of securities performed poorly. However, in
recent months municipals outperformed U.S. Treasuries with comparable
maturities, due to municipals' attractive after-tax values. As of January 31,
2000, yields available from New Jersey municipal bonds were over 90% of the
yields available from comparable taxable government bonds. When considering the
tax-advantaged yields provided by New Jersey municipals, these securities
present very compelling values compared to Treasuries.
WHAT IS YOUR OUTLOOK FOR THE FORESEEABLE FUTURE?
As we see it, the Federal Reserve will remain diligent in its attempt to slow
the pace of economic growth to help ward off an increase in inflation. As such,
we expect interest rates to continue rising into the summer. However, as the
year progresses, we anticipate seeing growth rates fall, as rising interest
rates should lead to a decline in consumer spending, and less dramatic stock
market gains. Ideally, this would result in interest rates moving downward.
[SIDENOTE:]
- -----------------------------------
AVG ANNUAL TOTAL RETURNS(1)
For the Periods Ended 12/31/99
<TABLE>
<CAPTION>
CLASS A Since
1-year 5-year Inception
<S> <C> <C>
- -----------------------------
- -12.38% 4.26% 2.80%
CLASS B Since
1-year 5-year Inception
- -----------------------------
- -12.91% 4.19% 2.75%
CLASS C Since
1-year 5-year Inception
- -----------------------------
- -9.41% N/A 3.10%
- -----------------------------
<CAPTION>
STANDARDIZED YIELD(2)
For the 30-days Ended 1/31/00
- -----------------------------
<S> <C>
CLASS A 5.45%
- -----------------------------
CLASS B 4.96
- -----------------------------
CLASS C 4.95
- -----------------------------
</TABLE>
[/SIDENOTE:]
(1) See page 7 for further details.
(2) Standardized yield is based on net investment income for the 30-day period
ended January 31, 2000. Falling share prices will tend to artificially raise
yields.
5 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
In the meantime, we will continue to actively monitor the markets--making
careful adjustments to the Fund's portfolio as is necessary. Diligently working
to enhance returns while being mindful of risk--just two reasons why Oppenheimer
New Jersey Municipal Fund is an important part of THE RIGHT WAY TO INVEST.
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(4)
Percentage of invested assets
- ----------------------------------------
<S> <C>
General Obligation 15.3%
- ----------------------------------------
Adult Living Facilities 12.8
- ----------------------------------------
Municipal Leases 12.4
- ----------------------------------------
Highways 11.2
- ----------------------------------------
Hospital/Healthcare 10.2
- ----------------------------------------
</TABLE>
[SIDENOTE:]
- -----------------------
CREDIT ALLOCATION(3)
[GRAPH]
<TABLE>
<S> <C>
- - AAA 59.2%
- - AA 0.3
- - A 4.5
- - BBB 15.9
- - BB 17.8
- - B 2.3
</TABLE>
- -----------------------
[/SIDENOTE:]
(3) Portfolio data are as of January 31, 2000, are dollar-weighted based on
total market value of investments and are subject to change. The Fund may
invest up to 25% of its assets in below-investment-grade securities which
carry greater risk of default. Average credit quality and ratings allocations
include securities rated by national rating organizations as well as unrated
securities (currently 11.8% of total investments) which have rating assigned
by the Manager in categories equivalent to those of rating organizations.
(4) Industry weightings are as of January 31, 2000, and are subject to change.
6 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
NOTES
- --------------------------------------------------------------------------------
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. THE FUND'S
PERFORMANCE MAY FROM TIME TO TIME BE SUBJECT TO SUBSTANTIAL SHORT-TERM CHANGES,
PARTICULARLY DURING PERIODS OF MARKET OR INTEREST RATE VOLATILITY. FOR UPDATES
ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR, CALL US AT
1.800.525.7048 OR VISIT OUR WEBSITE, www.oppenheimerfunds.com.
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized.
CLASS A shares were first publicly offered on 3/1/94. Class A returns include
the current maximum initial sales charge of 4.75%.
CLASS B shares of the Fund were first publicly offered on 3/1/94. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 1% (since inception). Class B shares are subject to an annual 0.75%
asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 8/29/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
An explanation of the different performance calculations is in the Fund's
prospectus.
7 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
- --------------------------------------------------------------------------------
FINANCIALS
- --------------------------------------------------------------------------------
8 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS January 31, 2000 / Unaudited
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS: MARKET
MOODY'S/ FACE VALUE
S&P/FITCH AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--98.9%
- -----------------------------------------------------------------------------------------------------------------
NEW JERSEY--81.2%
Delaware River, NJ & PA POAU RB, FSA Insured,
6%, 1/1/18 Aaa/AAA $3,500,000 $3,537,555
- -----------------------------------------------------------------------------------------------------------------
Essex Cnty., NJ Utilities Authority RRB, Series A,
FSA Insured, 5%, 4/1/22 Aaa/NR 2,000,000 1,930,420
- -----------------------------------------------------------------------------------------------------------------
Hudson Cnty., NJ MUAU System RB, Prerefunded,
11.875%, 7/1/06 Aaa/AAA 520,000 589,124
- -----------------------------------------------------------------------------------------------------------------
Hudson Cnty., NJ Solid Waste System Improvement
Authority RRB, Series 1, 6%, 1/1/29 NR/BBB-/BBB- 1,000,000 912,060
- -----------------------------------------------------------------------------------------------------------------
Middlesex, NJ Improvement Authority Utilities Systems
CAP RB, Series B, Zero Coupon, 5.63%, 9/1/21(1) Aaa/AAA/AAA 6,000,000 1,568,100
- -----------------------------------------------------------------------------------------------------------------
Newark, NJ GOB, School Qualified Bond Act, MBIA
Insured, 5.30%, 9/1/08 Aaa/AAA 1,000,000 1,005,220
- -----------------------------------------------------------------------------------------------------------------
NJ Casino Reinvestment DAU Parking Fee RB,
Series A, FSA Insured, 5.20%, 10/1/08 Aaa/AAA/AAA 1,000,000 999,170
- -----------------------------------------------------------------------------------------------------------------
NJ Casino Reinvestment DAU Parking Fee RB,
Series A, FSA Insured, 5.25%, 10/1/13 Aaa/AAA/AAA 1,000,000 958,970
- -----------------------------------------------------------------------------------------------------------------
NJ EDAU ED RB, United Methodist Homes,
5.75%, 7/1/29 NR/BBB- 2,000,000 1,569,200
- -----------------------------------------------------------------------------------------------------------------
NJ EDAU PC RB, Public Service Electric & Gas Co.
Project, Series A, MBIA Insured, 6.40%, 5/1/32 Aaa/AAA 500,000 506,395
- -----------------------------------------------------------------------------------------------------------------
NJ EDAU RRB, First Mtg. Franciscan Oaks Project,
5.70%, 10/1/17 NR/NR 2,235,000 1,831,203
- -----------------------------------------------------------------------------------------------------------------
NJ EDAU RRB, First Mtg. Keswick Pines, 5.60%, 1/1/12 NR/NR 600,000 537,108
- -----------------------------------------------------------------------------------------------------------------
NJ EDAU RRB, First Mtg. Keswick Pines, 5.70%, 1/1/18 NR/NR 2,350,000 1,928,621
- -----------------------------------------------------------------------------------------------------------------
NJ EDAU RRB, Sr. Mtg., Arbor Glen, Series A, 5.875%,
5/15/16 NR/NR 3,000,000 2,528,130
- -----------------------------------------------------------------------------------------------------------------
NJ EDAU RRB, United Methodist Homes, 5.125%, 7/1/25 NR/BBB- 1,900,000 1,372,389
- -----------------------------------------------------------------------------------------------------------------
NJ EDAU SPF RB, Continental Airlines, Inc. Project,
6.25%, 9/15/19 Ba2/BB 5,000,000 4,558,050
- -----------------------------------------------------------------------------------------------------------------
NJ EDAU Water Facilities RB, American Water Co., Inc.
Project, Series A, FGIC Insured, 6.875%, 11/1/34 Aaa/AAA/AAA 500,000 524,350
- -----------------------------------------------------------------------------------------------------------------
NJ Educational FA RRB, Monmouth University,
Series C, 5.80%, 7/1/22 Baa2/BBB 1,000,000 918,470
- -----------------------------------------------------------------------------------------------------------------
NJ HCF FAU RB, Centrastate Medical Center, Series A,
AMBAC Insured, 6%, 7/1/21(2) Aaa/AAA/AAA 100,000 102,122
- -----------------------------------------------------------------------------------------------------------------
NJ HCF FAU RB, Columbus Hospital, Series A,
7.50%, 7/1/21 B2/B 2,000,000 1,763,200
- -----------------------------------------------------------------------------------------------------------------
NJ HCF FAU RB, Southern Ocean Cnty. Hospital, Series A,
6.25%, 7/1/23 Baa1/NR/BBB+ 1,000,000 866,910
- -----------------------------------------------------------------------------------------------------------------
9 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS: MARKET
MOODY'S/ FACE VALUE
S&P/FITCH AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW JERSEY Continued
NJ HCF FAU RB, St. Elizabeth Hospital Obligation Group,
6%, 7/1/20 Baa2/BBB $1,000,000 $ 816,660
- -----------------------------------------------------------------------------------------------------------------
NJ HCF FAU RB, St. Joseph's Hospital & Medical Center,
Series A, 6%, 7/1/26 NR/AAA 750,000 749,460
- -----------------------------------------------------------------------------------------------------------------
NJ HCF FAU RRB, Capital Health System Obligation Group,
5.125%, 7/1/12 Baa2/BBB- 3,000,000 2,472,930
- -----------------------------------------------------------------------------------------------------------------
NJ HCF FAU RRB, Dover General Hospital & Medical
Center, MBIA Insured, 7%, 7/1/03 Aaa/AAA 1,000,000 1,066,410
- -----------------------------------------------------------------------------------------------------------------
NJ Mtg. & HFA MH RB, Series A, AMBAC Insured, 6.25%,
5/1/28 Aaa/AAA 1,000,000 982,960
- -----------------------------------------------------------------------------------------------------------------
NJ Mtg. & HFA RB, Home Buyer, Series J, MBIA Insured,
6.20%, 10/1/25 Aaa/AAA 200,000 198,708
- -----------------------------------------------------------------------------------------------------------------
NJ Mtg. & HFA RB, Home Buyer, Series S, MBIA Insured,
6.05%, 10/1/28 Aaa/AAA 1,000,000 986,500
- -----------------------------------------------------------------------------------------------------------------
NJ Mtg. & HFA RRB, Series 1, 6.70%, 11/1/28 NR/A+ 85,000 88,663
- -----------------------------------------------------------------------------------------------------------------
NJ Mtg. HAU RB, Series U, 5.75%, 4/1/18 Aaa/AAA 2,500,000 2,404,475
- -----------------------------------------------------------------------------------------------------------------
NJ Sports & Exposition Authority Convention Center
Luxury Tax RB, Series A, MBIA Insured, 6.25%, 7/1/20 Aaa/AAA 80,000 84,275
- -----------------------------------------------------------------------------------------------------------------
NJ Transit Corp. Certificates, Federal Transit
Administration Grants, Series A, AMBAC Insured,
6.125%, 9/15/14 Aaa/AAA/AAA 5,000,000 5,157,200
- -----------------------------------------------------------------------------------------------------------------
NJ TUAU RRB, Series C, 6.50%, 1/1/16 Baa1/BBB+/A- 950,000 996,312
- -----------------------------------------------------------------------------------------------------------------
NJ TUAU RRB, Series C, MBIA Insured, 6.50%,
1/1/09 Aaa/AAA/AAA 1,000,000 1,084,710
- -----------------------------------------------------------------------------------------------------------------
Passaic Valley, NJ Sewer System Commissioners
GOUN, Series E, AMBAC Insured, 5.625%, 12/1/17 Aaa/NR 3,095,000 3,013,261
- -----------------------------------------------------------------------------------------------------------------
Paterson, NJ Public SDI COP, 5.75%, 11/1/19 Aaa/NR 2,000,000 1,948,020
- -----------------------------------------------------------------------------------------------------------------
PAUNYNJ Consolidated RB, 94th Series, 6%, 12/1/14 A1/AA-/AA- 200,000 202,830
- -----------------------------------------------------------------------------------------------------------------
PAUNYNJ SPO RB, JFK International Air Terminal
Project, Series 6, MBIA Insured, 7%, 12/1/12 Aaa/AAA/AAA 2,000,000 2,248,780
- -----------------------------------------------------------------------------------------------------------------
PAUNYNJ SPO RRB, KIAC-4 Project, Fifth Installment,
6.75%, 10/1/19 NR/NR 900,000 901,053
- -----------------------------------------------------------------------------------------------------------------
South Brunswick, NJ GOB, FGIC Insured, 5.675%, 12/1/19 Aaa/AAA 2,330,000 2,246,237
- -----------------------------------------------------------------------------------------------------------------
South Brunswick, NJ GOB, FGIC Insured, 5.675%, 12/1/20 Aaa/AAA 2,385,000 2,277,866
- -----------------------------------------------------------------------------------------------------------------
West Orange, NJ BOE COP, MBIA Insured, 5.675%, 10/1/19 Aaa/NR 2,500,000 2,410,525
--------------
62,844,602
- -----------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--17.7%
Guam PAU RB, Prerefunded, Series A, 6.30%, 10/1/22 NR/AAA 185,000 196,359
- -----------------------------------------------------------------------------------------------------------------
PR CMWLTH HTAU RB, Series 88, MBIA Insured,
Inverse Floater, 6.55%, 7/1/28(3) NR/AAA 3,125,000 2,121,063
10 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
<CAPTION>
RATINGS: MARKET
MOODY'S/ FACE VALUE
S&P/FITCH AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. POSSESSIONS Continued
PR CMWLTH HTAU RB, Series Y, 5%, 7/1/36 Baa1/A $1,000,000 $ 800,910
- -----------------------------------------------------------------------------------------------------------------
PR Industrial Tourist Educational Medical & Environmental
Control Facilities RB, Polytechnic University Project, Series A,
6.50%, 8/1/24 NR/BBB- 400,000 403,408
- -----------------------------------------------------------------------------------------------------------------
PR Municipal FAU GOB, Series A, FSA Insured, 5.75%, 8/1/13 Aaa/AAA 2,150,000 2,190,764
- -----------------------------------------------------------------------------------------------------------------
PR Municipal FAU GOB, Series A, FSA Insured, 6%, 8/1/15 Aaa/AAA 2,000,000 2,052,660
- -----------------------------------------------------------------------------------------------------------------
University of Virgin Islands RB, Series A, 5.75%, 12/1/13 NR/A 1,000,000 966,740
- -----------------------------------------------------------------------------------------------------------------
Virgin Islands Housing FAU SFM RRB, Series A, 6.50%, 3/1/25 NR/AAA 135,000 136,131
- -----------------------------------------------------------------------------------------------------------------
Virgin Islands PFAU RB, Series A, 6.375%, 10/1/19 NR/BBB- 1,515,000 1,465,929
- -----------------------------------------------------------------------------------------------------------------
Virgin Islands PFAU RB, Sub. Lien, Series E, 6%, 10/1/22 NR/NR 1,500,000 1,322,115
- -----------------------------------------------------------------------------------------------------------------
Virgin Islands University BOE RB, Series A, 5.75%, 12/1/13 NR/A 620,000 614,990
- -----------------------------------------------------------------------------------------------------------------
Virgin Islands Water & PAU Electric Systems RRB,
5.375%, 7/1/10 NR/NR/BBB 1,470,000 1,397,544
--------------
13,668,613
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $82,008,158) 98.9% 76,513,215
- -----------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.1 868,262
---------------------------------
NET ASSETS 100.0% $77,381,477
---------------------------------
---------------------------------
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
To simplify the listings of securities, abbreviations are used per the table
below:
<TABLE>
<S> <C> <C> <C>
BOE Board of Education MH Multifamily Housing
CAP Capital Appreciation MUAU Municipal Utilities Authority
CMWLTH Commonwealth PAUNYNJ Port Authority of New York & New Jersey
COP Certificates of Participation PAU Power Authority
DAU Development Authority PC Pollution Control
ED Economic Development PFAU Public Finance Authority
EDAU Economic Development Authority POAU Port Authority
FA Facilities Authority RB Revenue Bonds
FAU Finance Authority RRB Revenue Refunding Bonds
GOB General Obligation Bonds SDI School District
GOUN General Obligation Unlimited Notes SFM Single Family Mortgage
HAU Housing Authority SPF Special Facilities
HCF Health Care Facilities SPO Special Obligations
HFA Housing Finance Agency TUAU Turnpike Authority
HTAU Highway & Transportation Authority
</TABLE>
11 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
(1) For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
(2) Securities with an aggregate market value of $102,140 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
(3) Represents the current interest rate for a variable rate bond known as an
"inverse floater" which pays interest at a rate that varies inversely with
short-term interest rates. As interest rates rise, inverse floaters produce less
current income. Their price may be more volatile than the price of a comparable
fixed-rate security. Inverse floaters amount to $2,121, 063 or 2.74% of the
Fund's net assets as of January 31, 2000.
AS OF JANUARY 31, 2000, SECURITIES SUBJECT TO THE ALTERNATIVE MINIMUM TAX AMOUNT
TO $13,447,402 OR 17.38% OF THE FUND'S NET ASSETS.
DISTRIBUTION OF INVESTMENTS BY INDUSTRY, AS A PERCENTAGE OF TOTAL INVESTMENTS AT
VALUE, IS AS FOLLOWS:
<TABLE>
<CAPTION>
INDUSTRY MARKET VALUE PERCENT
- ----------------------------------------------------------------------
<S> <C> <C>
General Obligation $11,703,167 15.3%
Adult Living Facilities 9,766,651 12.8
Municipal Leases 9,515,745 12.4
Highways 8,540,550 11.2
Hospital/Healthcare 7,837,692 10.2
Marine/Aviation Facilities 7,009,660 9.2
Water Utilities 4,079,117 5.3
Single Family Housing 3,725,814 4.9
Sewer Utilities 3,013,261 3.9
Higher Education 2,903,608 3.8
Sales Tax 2,872,319 3.8
Parking Fee Revenue 1,958,140 2.6
Electric Utilities 1,097,412 1.4
Multifamily Housing 1,071,624 1.4
Resource Recovery 912,060 1.2
Pollution Control 506,395 0.6
-------------------------------
Total $76,513,215 100.0%
-------------------------------
-------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
12 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JANUARY 31, 2000
- ------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at value (cost $82,008,158)--see accompanying statement $ 76,513,215
- ------------------------------------------------------------------------------------------
Cash 478,179
- ------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 873,160
Shares of beneficial interest sold 178,113
Daily variation on futures contracts 91,000
Other 3,050
----------------
Total assets 78,136,717
- ------------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Shares of beneficial interest redeemed 393,806
Dividends 219,861
Trustees' compensation 63,010
Shareholder reports 50,308
Distribution and service plan fees 9,944
Transfer and shareholder servicing agent fees 8,801
Other 9,510
----------------
Total liabilities 755,240
- ------------------------------------------------------------------------------------------
NET ASSETS $ 77,381,477
----------------
----------------
- ------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $ 88,079,354
- ------------------------------------------------------------------------------------------
Overdistributed net investment income (140,830)
- ------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (5,232,425)
- ------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (5,324,622)
----------------
Net assets $ 77,381,477
----------------
----------------
- ------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $32,811,346 and 3,253,110 shares of beneficial interest outstanding) $10.09
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $10.59
- ------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $36,511,073
and 3,616,836 shares of beneficial interest outstanding) $10.09
- ------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $8,059,058
and 798,649 shares of beneficial interest outstanding) $10.09
</TABLE>
See accompanying Notes to Financial Statements.
13 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED JANUARY 31, 2000
- ------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest $ 2,670,867
- ------------------------------------------------------------------------------------------
EXPENSES
Management fees 267,168
- ------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 46,749
Class B 206,091
Class C 45,977
- ------------------------------------------------------------------------------------------
Shareholder reports 39,464
- ------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 33,553
- ------------------------------------------------------------------------------------------
Trustees' compensation 6,644
- ------------------------------------------------------------------------------------------
Custodian fees and expenses 4,535
- ------------------------------------------------------------------------------------------
Other 13,522
----------------
Total expenses 663,703
Less reimbursement of expenses (115,167)
Less expenses paid indirectly (4,500)
----------------
Net expenses 544,036
- ------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 2,126,831
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments (5,598,104)
Closing of futures contracts 373,194
----------------
Net realized loss (5,224,910)
- ------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (4,062,953)
----------------
Net realized and unrealized loss (9,287,863)
- ------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(7,161,032)
----------------
----------------
</TABLE>
See accompanying Notes to Financial Statements.
14 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
JAN 31, ENDED
2000 JULY 31,
(UNAUDITED) 1999
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 2,126,831 $ 3,749,997
- ------------------------------------------------------------------------------------------------------
Net realized gain (loss) (5,224,910) 138,741
- ------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (4,062,953) (3,509,408)
-----------------------------------
Net increase (decrease) in net assets resulting from operations (7,161,032) 379,330
- ------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (1,037,545) (1,835,806)
Class B (869,959) (1,578,140)
Class C (200,085) (336,025)
- ------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (38,326) (32,211)
Class B (38,868) (34,382)
Class C (9,332) (7,281)
- ------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial
interest transactions:
Class A (5,372,565) 10,755,309
Class B (3,521,660) 12,814,190
Class C (711,444) 3,631,472
- ------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) (18,960,816) 23,756,456
- ------------------------------------------------------------------------------------------------------
Beginning of period 96,342,293 72,585,837
-----------------------------------
End of period (including overdistributed net investment
income of $140,830 and $160,072, respectively) $ 77,381,477 $96,342,293
-----------------------------------
-----------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
15 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR
ENDED ENDED ENDED
JAN. 31, 2000 JULY 31, DEC. 31,
CLASS A (UNAUDITED) 1999 1998 1997 1996(1) 1995
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $11.21 $11.58 $11.54 $11.10 $11.26 $10.41
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .27 .55 .58 .62 .36 .61
Net realized and unrealized gain (loss) (1.11) (.36) .09 .45 (.16) .86
----------------------------------------------------------------------
Total income (loss) from
investment operations (.84) .19 .67 1.07 .20 1.47
- -----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.27) (.55) (.59) (.61) (.36) (.61)
Distributions from net realized gain (.01) (.01) (.04) (.02) -- (.01)
- -----------------------------------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.28) (.56) (.63) (.63) (.36) (.62)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.09 $11.21 $11.58 $11.54 $11.10 $11.26
----------------------------------------------------------------------
----------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) (7.53)% 1.57% 5.96% 9.99% 1.80% 14.42%
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $32,811 $42,289 $33,060 $19,109 $11,354 $8,806
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $38,291 $38,999 $24,909 $14,072 $10,036 $6,504
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 5.23% 4.71% 4.94% 5.45% 5.49% 5.51%
Expenses 1.07% 1.10% 1.14%(4) 1.08%(4) 1.64%(4) 1.75%(4)
Expenses, net of indirect expenses,
voluntary assumption of expenses
and/or waiver of expenses 0.80% 0.63% 0.38% 0.88% 0.97% 0.80%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 62% 70% 46% 12% 33% 7%
</TABLE>
(1) For the seven months ended July 31, 1996. The Fund changed its fiscal year
end from December 31 to July 31.
(2) Assumes a $1,000 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.
(3) Annualized for periods of less than one full year.
(4) Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
(5) 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, 2000, were $54,594,063 and $66,839,669, respectively.
See accompanying Notes to Financial Statements.
16 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR
ENDED ENDED ENDED
JAN. 31, 2000 JULY 31, DEC. 31,
CLASS B (UNAUDITED) 1999 1998 1997 1996(1) 1995
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $11.21 $11.58 $11.53 $11.09 $11.25 $10.40
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations
Net investment income .23 .47 .50 .53 .31 .53
Net realized and unrealized gain (loss) (1.11) (.37) .09 .46 (.16) .86
----------------------------------------------------------------------
Total income (loss) from
investment operations (.88) .10 .59 .99 .15 1.39
- -----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.23) (.46) (.50) (.53) (.31) (.53)
Distributions from net realized gain (.01) (.01) (.04) (.02) -- (.01)
----------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.24) (.47) (.54) (.55) (.31) (.54)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.09 $11.21 $11.58 $11.53 $11.09 $11.25
----------------------------------------------------------------------
----------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) (7.88)% 0.81% 5.25% 9.18% 1.34% 13.59%
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $36,511 $44,322 $33,062 $18,647 $9,740 $5,222
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $40,857 $39,842 $25,556 $13,278 $7,774 $4,080
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.46% 3.96% 4.17% 4.70% 4.70% 4.79%
Expenses 1.84% 1.85% 1.89%(4) 1.83%(4) 2.40%(4) 2.49%(4)
Expenses, net of indirect expenses,
voluntary assumption of expenses
and/or waiver of expenses 1.57% 1.38% 1.14% 1.62% 1.74% 1.53%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 62% 70% 46% 12% 33% 7%
</TABLE>
(1) For the seven months ended July 31, 1996. The Fund changed its fiscal year
end from December 31 to July 31.
(2) Assumes a $1,000 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.
(3) Annualized for periods of less than one full year.
(4) Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
(5) 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, 2000, were $54,594,063 and $66,839,669, respectively.
See accompanying Notes to Financial Statements.
17 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR
ENDED ENDED ENDED
JAN. 31, 2000 JULY 31, DEC. 31,
CLASS C (UNAUDITED) 1999 1998 1997 1996(1) 1995(6)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $11.21 $11.58 $11.53 $11.09 $11.25 $11.01
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .27 .46 .50 .53 .30 .19
Net realized and unrealized gain (loss) (1.15) (.36) .09 .45 (.16) .25
----------------------------------------------------------------------
Total income (loss) from
investment operations (.88) .10 .59 .98 .14 .44
- -----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.23) (.46) (.50) (.52) (.30) (.19)
Distributions from net realized gain (.01) (.01) (.04) (.02) -- (.01)
----------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.24) (.47) (.54) (.54) (.30) (.20)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.09 $11.21 $11.58 $11.53 $11.09 $11.25
----------------------------------------------------------------------
----------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) (7.88)% 0.81% 5.24% 9.11% 1.29% 4.07%
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $8,059 $9,732 $6,463 $2,080 $132 $50
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $9,115 $8,483 $3,631 $ 747 $ 74 $ 3
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.46% 3.96% 4.20% 4.56% 4.66% --(7)
Expenses 1.83% 1.85% 1.92%(4) 1.79%(4) 2.48%(4) --(7)
Expenses, net of indirect expenses,
voluntary assumption of expenses
and/or waiver of expenses 1.56% 1.38% 1.12% 1.60% 1.81% --(7)
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 62% 70% 46% 12% 33% 7%
</TABLE>
(1) For the seven months ended July 31, 1996. The Fund changed its fiscal year
end from December 31 to July 31.
(2) Assumes a $1,000 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.
(3) Annualized for periods of less than one full year.
(4) Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
(5) 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, 2000, were $54,594,063 and $66,839,669, respectively.
(6) For the period from August 29, 1995 (inception of offering) to
December 31, 1995.
(7) Ratios during this period would not be indicative of future results.
See accompanying Notes to Financial Statements.
18 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 nondiversified, 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
interest 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 at their offering price, which is normally net asset value plus an initial
sales charge. Class B and Class C shares are sold without an initial sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own expenses directly attributable to
that class and exclusive voting rights with respect to matters affecting that
class. Classes A, B and C shares have separate distribution and/or service
plans. 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.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. Securities for which quotations are readily available are
valued at the last sale price, or if in the absence of a sale, at the last sale
price on the prior trading day if it is within the spread of the closing bid and
asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at cost
(or last determined market value) and adjusted for amortization or accretion 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.
19 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' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent Board of 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, 2000, a provision of $1,660 was made for the Fund's projected
benefit obligations, resulting in an accumulated liability of $61,913 as of
January 31, 2000.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of annual compensation 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 Board of Trustees in shares of one
or more Oppenheimer funds selected by the trustee. The amount paid to the Board
of Trustees 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 investment income per share.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
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 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.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
20 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
- --------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of trade date. Original
issue discount is accreted and premium is amortized in accordance with federal
income tax requirements. For municipal 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.
There are certain risks arising from geographic concentration in any state.
Certain revenue or tax related event in a state may impair the ability of
certain issuers of municipal securities to pay principal and interest on their
obligations.
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>
6 MOS. ENDED JANUARY 31, 2000 YEAR ENDED JULY 31, 1999
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Sold 439,602 $ 4,692,061 1,892,611 $22,117,140
Dividends and/or
distributions reinvested 57,433 610,943 101,593 1,183,876
Redeemed (1,014,843) (10,675,569) (1,077,934) (12,545,707)
------------------------------------------------------------------
Net increase (decrease) (517,808) $(5,372,565) 916,270 $10,755,309
------------------------------------------------------------------
------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
CLASS B
Sold 290,864 $ 3,076,917 1,587,888 $18,490,151
Dividends and/or
distributions reinvested 50,203 531,489 84,751 986,603
Redeemed (678,647) (7,130,066) (574,554) (6,662,564)
------------------------------------------------------------------
Net increase (decrease) (337,580) $(3,521,660) 1,098,085 $12,814,190
------------------------------------------------------------------
------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
CLASS C
Sold 167,471 $ 1,779,292 461,996 $ 5,398,001
Dividends and/or
distributions reinvested 14,086 149,461 23,858 277,644
Redeemed (250,986) (2,640,197) (176,024) (2,044,173)
------------------------------------------------------------------
Net increase (decrease) (69,429) $ (711,444) 309,830 $ 3,631,472
------------------------------------------------------------------
------------------------------------------------------------------
</TABLE>
21 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of January 31, 2000, net unrealized depreciation on securities of $5,494,943
was composed of gross appreciation of $134,302, and gross depreciation of
$5,629,245.
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates
MANAGEMENT FEES. 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. The Fund's management fee for
the six months ended January 31, 2000 was 0.60% of the average annual net assets
of each class of shares, annualized for periods of less than one full year.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
AGGREGATE CLASS A COMMISSIONS COMMISSIONS COMMISSIONS
FRONT-END FRONT-END ON CLASS A ON CLASS B ON CLASS C
SALES CHARGES SALES CHARGES SHARES SHARES SHARES
6 MOS. ON CLASS A RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
January 31, 2000 $53,916 $6,431 $4,034 $108,664 $15,378
</TABLE>
(1) The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
6 MOS. SALES CHARGES SALES CHARGES SALES CHARGES
ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
January 31, 2000 $2,871 $135,624 $8,566
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
22 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
- --------------------------------------------------------------------------------
CLASS A SERVICE PLAN FEES. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.15% of average annual net assets of Class A
shares purchased. The Distributor makes payments to plan recipients quarterly at
an annual rate not to exceed 0.15% of the average annual net assets consisting
of Class A shares of the Fund. For the six months ended January 31, 2000,
payments under the Class A Plan totaled $46,749, all of which was paid by the
Distributor to recipients. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
years.
- --------------------------------------------------------------------------------
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and asset-based sales charges from the Fund under
the plans. If any plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the six months ended January 31,
2000, were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S DISTRIBUTOR'S
AGGREGATE UNREIMBURSED
UNREIMBURSED EXPENSES AS %
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES OF NET ASSETS
UNDER PLAN BY DISTRIBUTOR UNDER PLAN OF CLASS
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $206,091 $166,477 $1,552,880 4.25%
Class C Plan 45,977 17,345 109,562 1.36
</TABLE>
23 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
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- --------------------------------------------------------------------------------
5. FUTURES CONTRACTS
The Fund may buy and sell futures contracts in order to gain exposure to or to
seek to 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 or cost
effective than actually 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 may recognize 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
and/or payable for the daily mark to market for variation margin.
Risks 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.
As of January 31, 2000, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION NUMBER OF VALUATION AS OF APPRECIATION
CONTRACT DESCRIPTION DATE CONTRACTS JANUARY 31, 2000 (DEPRECIATION)
- -------------------------------------------------------------------------------------------------------
CONTRACTS TO SELL
<S> <C> <C> <C> <C>
Municipal Bond 3/22/00 123 $11,154,563 $219,227
U.S. Long Bond 3/22/00 25 2,305,469 (48,906)
--------
$170,321
--------
--------
</TABLE>
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6. 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 0.45%. 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 0.08%
per annum.
The Fund had no borrowings outstanding during the six months ended
January 31, 2000.
24 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
A SERIES OF OPPENHEIMER MULTI-STATE MUNICIPAL TRUST
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
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
Phillip A. Griffiths, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Clayton K. Yeutter, Trustee
Christian D. Smith, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
- --------------------------------------------------------------------------------
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 LLP
- --------------------------------------------------------------------------------
LEGAL COUNSEL Mayer, Brown & Platt
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, ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY, AND INVOLVE INVESTMENT RISKS, INCLUDING THE
POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.
</TABLE>
25 OPPENHEIMER NEW JERSEY MUNICIPAL FUND
<PAGE>
INFORMATION AND SERVICES
- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
- --------------------------------------------------------------------------------
INTERNET
24-hr access to account information and transactions
www.oppenheimerfunds.com
- --------------------------------------------------------------------------------
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
- --------------------------------------------------------------------------------
TELEPHONE TRANSACTIONS
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
- --------------------------------------------------------------------------------
PHONELINK
24-hr automated information and automated transactions
1.800.533.3310
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
- --------------------------------------------------------------------------------
OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the economy and issues that
may affect your investments
1.800.835.3104
- --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
- --------------------------------------------------------------------------------
[LOGO]OPPENHEIMERFUNDS-Registered Trademark-
Distributor, Inc.
RS0395.001.0100 March 31, 2000
