UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-5867
OPPENHEIMER NEW JERSEY MUNICIPAL FUND
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: July 31
Date of reporting period: August 1, 2002 - July 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
FUND PERFORMANCE DISCUSSION
How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of
the Fund's performance during its fiscal year ended July 31, 2003, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index.
Management's Discussion of Fund Performance. To boost the Fund's yield, we
increased its investments in smaller, more local issues, seeking out securities
misunderstood or underappreciated by the market in general and, as a result,
offering premium yields substantially exceeding their actual credit risks. We
found such opportunities primarily in the following sectors: tobacco Master
Settlement Agreement (MSA) bonds (20.3% of market value of investment at July
31, 2003), higher-education bonds (19.8%) and airline-related issues (13.9%).
While these investments raised the Fund's level of current income, they also
made for a volatile ride, due largely to events in the tobacco and airline
industries.
MSA bonds are backed by each state's (or U.S. territory's) share of the
national settlement agreement with major tobacco manufacturers. Over the past 12
months, the prices of MSA bonds were exceptionally volatile due to the fear of
oversupply and a $10 billion Illinois state court decision against Phillip
Morris. The unfavorable court decision required Phillip Morris to pay the
judgment levied against them or put up a $12 billion bond to appeal the
decision. The size of bonding requirement necessary to appeal the decision
raised the specter of potential bankruptcy for Phillip Morris and a possible
default on Phillip Morris's share of the tobacco settlement payments. Although
this litigation continues, all MSA payments were made on schedule.
We continue to believe in the outstanding total return potential of MSA
bonds. Despite their recent price volatility, it is our opinion the litigation
risk affecting these bonds is less than many investors fear. While persistent
litigation may continue to influence the tobacco sector, most recent court
decisions have held in favor of the industry. MSA bonds continue to carry
investment-grade ratings by all three of the nationally recognized rating
agencies and offer yields well above comparably rated credits. Also, with future
supply dissipating, we anticipate these bonds will become relatively scarce over
time, adding to their long-term total return potential.
During this reporting period, the airline industry has been negatively
impacted by rising costs and declining air travel. Market prices of
airline-related municipal bonds fluctuated significantly, detracting from the
Fund's overall total return. The Fund's airline holdings provided above-average
levels of tax-free income and most are secured by first liens on extremely
valuable assets--in Continental Airlines' case, by liens on passenger gates at
Newark International Airport, and for bonds backed by Delta Airlines, by liens
on their passenger terminal at LaGuardia International Airport.
5 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
We found unrecognized value in higher-education bonds. Secured by mortgages
on private colleges and universities, we believe higher-education bonds provide
a combination of above-average yield and stable credit quality. Historical data
suggests that the risk of default on these bonds is considerably less than their
middling credit ratings would indicate. To attempt to further mitigate risk, we
do in-depth research on each bond and invest only in those that are issued by
established colleges and universities and usually include first mortgages on the
issuing institution's property. For example, a bond from Farleigh Dickinson
University, which at 13% of net assets is our largest holding in this sector, is
secured by a first mortgage on valuable real estate in northern New Jersey. So
while it has a relatively lower credit rating and commensurately higher yield,
we believe the actual risk is much less than a similarly rated, unsecured bond.
Comparing the Fund's Performance to the Market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until July 31, 2003. In the case of Class A and Class B shares,
performance is measured from inception of those classes on March 1, 1994. In the
case of Class C shares, performance is measured from inception of the Class on
August 29, 1995. The Fund's performance reflects the deduction of the maximum
initial sales charge on Class A shares, the applicable contingent deferred sales
charge on Class B and Class C shares, and reinvestments of all dividends and
capital gains distributions.
The Fund's performance is compared to the performance of the Lehman Brothers
Municipal Bond Index, an unmanaged index of a broad range of investment-grade
municipal bonds that is widely regarded as a measure of the performance of the
general municipal bond market. Index performance reflects the reinvestment of
dividends but does not consider the effect of capital gains or transaction
costs, and none of the data in the graphs that follow shows the effect of taxes.
The Fund's performance reflects the effects of Fund business and operating
expenses. While index comparisons may be useful to provide a benchmark for the
Fund's performance, it must be noted that the Fund's investments are not limited
to the securities in the index.
6 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer New Jersey Municipal Fund (Class A)
Lehman Brothers Municipal Bond Index
[LINE CHART]
Value of
Investment Lehman Brothers
Date In Fund Municipal Bond Index
03/01/1994 $9,525 $10,000
03/31/1994 $9,143 $9,593
06/30/1994 $9,138 $9,698
09/30/1994 $9,202 $9,765
12/31/1994 $9,084 $9,625
03/31/1995 $9,703 $10,305
06/30/1995 $9,900 $10,554
09/30/1995 $10,055 $10,857
12/31/1995 $10,394 $11,305
03/31/1996 $10,397 $11,169
06/30/1996 $10,485 $11,255
07/31/1996 1 $10,581 $11,357
10/31/1996 $10,815 $11,643
01/31/1997 $10,965 $11,828
04/30/1997 $11,053 $11,876
07/31/1997 $11,638 $12,521
10/31/1997 $11,726 $12,632
01/31/1998 $12,137 $13,024
04/30/1998 $12,042 $12,981
07/31/1998 $12,332 $13,271
10/31/1998 $12,659 $13,644
01/31/1999 $12,916 $13,890
04/30/1999 $12,883 $13,883
07/31/1999 $12,525 $13,653
10/31/1999 $11,792 $13,403
01/31/2000 $11,583 $13,386
04/30/2000 $11,866 $13,755
07/31/2000 $12,216 $14,242
10/31/2000 $12,432 $14,543
01/31/2001 $12,947 $15,164
04/30/2001 $12,948 $15,182
07/31/2001 $13,488 $15,677
10/31/2001 $13,689 $16,071
01/31/2002 $13,613 $16,059
04/30/2002 $13,834 $16,245
07/31/2002 $14,270 $16,729
10/31/2002 $14,001 $17,014
01/31/2003 $14,121 $17,257
04/30/2003 $14,203 $17,624
07/31/2003 $14,443 $17,332
Average Annual Total Returns of Class A Shares of the Fund at 7/31/03 2
1-Year -3.60% 5-Year 2.21% Since Inception 3.98%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer New Jersey Municipal Fund (Class B)
Lehman Brothers Municipal Bond Index
[LINE CHART]
Value of
Investment Lehman Brothers
Date In Fund Municipal Bond Index
03/01/1994 $10,000 $10,000
03/31/1994 $9,570 $9,593
06/30/1994 $9,554 $9,698
09/30/1994 $9,601 $9,765
12/31/1994 $9,461 $9,625
03/31/1995 $10,087 $10,305
06/30/1995 $10,282 $10,554
09/30/1995 $10,414 $10,857
12/31/1995 $10,746 $11,305
03/31/1996 $10,728 $11,169
06/30/1996 $10,808 $11,255
07/31/1996 1 $10,890 $11,357
10/31/1996 $11,110 $11,643
01/31/1997 $11,243 $11,828
04/30/1997 $11,313 $11,876
07/31/1997 $11,889 $12,521
10/31/1997 $11,956 $12,632
01/31/1998 $12,363 $13,024
04/30/1998 $12,233 $12,981
07/31/1998 $12,514 $13,271
10/31/1998 $12,822 $13,644
01/31/1999 $13,047 $13,890
04/30/1999 $12,989 $13,883
07/31/1999 $12,615 $13,653
10/31/1999 $11,865 $13,403
01/31/2000 $11,621 $13,386
04/30/2000 $11,910 $13,755
07/31/2000 $12,262 $14,242
10/31/2000 $12,478 $14,543
01/31/2001 $12,995 $15,164
04/30/2001 $12,996 $15,182
07/31/2001 $13,538 $15,677
10/31/2001 $13,740 $16,071
01/31/2002 $13,664 $16,059
04/30/2002 $13,885 $16,245
07/31/2002 $14,322 $16,729
10/31/2002 $14,053 $17,014
01/31/2003 $14,174 $17,257
04/30/2003 $14,256 $17,624
07/31/2003 $14,496 $17,332
Average Annual Total Returns of Class B Shares of the Fund at 7/31/03 2
1-Year -4.33% 5-Year 2.12% Since Inception 4.02%
1. The Fund changed its fiscal year end from December 31 to July 31.
2. See Notes on page 9 for further details.
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 2/28/94 for Class A and Class B shares and 8/31/95 for Class C
shares.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
7 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer New Jersey Municipal Fund (Class C)
Lehman Brothers Municipal Bond Index
[LINE CHART]
Value of
Investment Lehman Brothers
Date In Fund Municipal Bond Index
08/29/1995 $10,000 $10,000
09/30/1995 $10,076 $10,063
12/31/1995 $10,407 $10,479
03/31/1996 $10,396 $10,353
06/30/1996 $10,463 $10,432
07/31/1996 1 $10,541 $10,526
10/31/1996 $10,752 $10,791
01/31/1997 $10,889 $10,963
04/30/1997 $10,944 $11,008
07/31/1997 $11,501 $11,605
10/31/1997 $11,566 $11,708
01/31/1998 $11,959 $12,072
04/30/1998 $11,833 $12,032
07/31/1998 $12,105 $12,301
10/31/1998 $12,402 $12,647
01/31/1999 $12,620 $12,874
04/30/1999 $12,564 $12,868
07/31/1999 $12,202 $12,655
10/31/1999 $11,466 $12,423
01/31/2000 $11,241 $12,407
04/30/2000 $11,495 $12,750
07/31/2000 $11,812 $13,201
10/31/2000 $11,998 $13,480
01/31/2001 $12,471 $14,055
04/30/2001 $12,460 $14,072
07/31/2001 $12,944 $14,531
10/31/2001 $13,112 $14,896
01/31/2002 $13,027 $14,884
04/30/2002 $13,213 $15,057
07/31/2002 $13,591 $15,506
10/31/2002 $13,322 $15,770
01/31/2003 $13,410 $15,995
04/30/2003 $13,451 $16,336
07/31/2003 $13,652 $16,065
Average Annual Total Returns of Class C Shares of the Fund at 7/31/03 2
1-Year -0.51% 5-Year 2.44% Since Inception 4.01%
1. The Fund changed its fiscal year end from December 31 to July 31.
2. See Notes on page 9 for further details.
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 2/28/94 for Class A and Class B shares and 8/31/95 for Class C
shares.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
8 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES
In reviewing performance and rankings, please remember that past performance
cannot 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. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
fluctuations, and current performance may be more or less than the results
shown. For updates on the Fund's performance, visit our website at
www.oppenheimerfunds.com.
Total returns and the ending account values in the graph includes changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. For more complete information
about the Fund, including charges, expenses and risks, please refer to the
prospectus. To obtain a copy, call your financial advisor, call OppenheimerFunds
Distributor, Inc. at 1.800.CALL OPP (1.800.225.5677). Read the prospectus
carefully before you invest or send money.
Class A shares of the Fund were first publicly offered on 3/1/94. The average
annual total returns are shown net of the applicable 4.75% maximum initial sales
charge.
Class B shares of the Fund were first publicly offered on 3/1/94. The average
annual total returns are shown net of the applicable contingent deferred sales
charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A
shares 72 months after purchase, the "since inception" return for Class B uses
Class A performance for the period after conversion. 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. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
9 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS July 31, 2003
Principal Market Value
Amount Coupon Maturity See Note 1
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Municipal Bonds and Notes--105.7%
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New Jersey--90.1%
$ 600,000 Camden County Improvement Authority
(Cooper Health System) 6.000% 02/15/2027 $ 619,770
- ------------------------------------------------------------------------------------------------------------------
45,000 Essex County Improvement Authority 5.500 12/01/2020 46,341
- ------------------------------------------------------------------------------------------------------------------
20,000 Gloucester County Improvement Authority
(Governmental Leasing Program) 5.900 04/01/2007 20,374
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1,000,000 Higher Education Student Assistance Authority
Student Loan 6.000 06/01/2015 1,080,610
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1,000,000 Hudson County Solid Waste Improvement Authority 6.000 01/01/2029 935,090
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10,000 Hudson Improvement Authority 6.625 08/01/2025 10,325
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20,000 Middletown Township Hsg. Authority (Alice V. Tomaso) 6.000 02/01/2016 20,147
- ------------------------------------------------------------------------------------------------------------------
25,000 New Brunswick Parking Authority 5.400 09/01/2015 25,592
- ------------------------------------------------------------------------------------------------------------------
135,000 NJ EDA (American Airlines) 7.100 11/01/2031 71,550
- ------------------------------------------------------------------------------------------------------------------
1,250,000 NJ EDA (Bristol Glen) 5.750 07/01/2029 1,135,350
- ------------------------------------------------------------------------------------------------------------------
100,000 NJ EDA (Cadbury at Cherry Hill) 5.500 07/01/2018 100,881
- ------------------------------------------------------------------------------------------------------------------
5,985,000 NJ EDA (Continental Airlines) 6.250 09/15/2019 5,083,120
- ------------------------------------------------------------------------------------------------------------------
85,000 NJ EDA (Continental Airlines) 6.250 09/15/2029 71,540
- ------------------------------------------------------------------------------------------------------------------
1,230,000 NJ EDA (Continental Airlines) 6.400 09/15/2023 1,060,875
- ------------------------------------------------------------------------------------------------------------------
3,500,000 NJ EDA (Continental Airlines) 9.000 06/01/2033 3,631,180
- ------------------------------------------------------------------------------------------------------------------
100,000 NJ EDA (Courthouse Convalescent Center) 8.700 02/01/2014 100,726
- ------------------------------------------------------------------------------------------------------------------
2,500,000 NJ EDA (Fairleigh Dickinson University), Series D 5.250 07/01/2032 2,432,825
- ------------------------------------------------------------------------------------------------------------------
15,000,000 NJ EDA (Fairleigh Dickinson University), Series D 6.000 07/01/2025 15,099,300
- ------------------------------------------------------------------------------------------------------------------
50,000 NJ EDA (Hackensack Water Company) 5.800 03/01/2024 51,940
- ------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (Hackensack Water Company) 5.900 03/01/2024 25,642
- ------------------------------------------------------------------------------------------------------------------
2,500,000 NJ EDA (Kaplowski Road Landfill) 6.500 04/01/2031 2,706,700
- ------------------------------------------------------------------------------------------------------------------
1,000,000 NJ EDA (Masonic Charity Foundation of NJ) 5.500 06/01/2031 1,019,320
- ------------------------------------------------------------------------------------------------------------------
750,000 NJ EDA (Masonic Charity Foundation of NJ) 6.000 06/01/2025 809,760
- ------------------------------------------------------------------------------------------------------------------
30,000 NJ EDA (NJ American Water Company) 5.350 06/01/2023 30,487
- ------------------------------------------------------------------------------------------------------------------
10,000 NJ EDA (NJ American Water Company) 5.500 06/01/2023 10,097
- ------------------------------------------------------------------------------------------------------------------
15,000 NJ EDA (NJ American Water Company) 6.000 05/01/2036 15,711
- ------------------------------------------------------------------------------------------------------------------
500,000 NJ EDA (NJ American Water Company) 6.875 11/01/2034 539,350
- ------------------------------------------------------------------------------------------------------------------
915,000 NJ EDA (Nui Corp.) 5.250 11/01/2033 867,850
- ------------------------------------------------------------------------------------------------------------------
10,000 NJ EDA (Public Schools Small Project Loan Program) 5.350 08/15/2010 10,232
- ------------------------------------------------------------------------------------------------------------------
585,000 NJ EDA (Public Service Electric & Gas) 6.400 05/01/2032 615,344
- ------------------------------------------------------------------------------------------------------------------
4,335,000 NJ EDA (RWJ Hospital/CCC/
RWJ Health Care Corp. Obligated Group) 6.500 07/01/2024 4,594,276
- ------------------------------------------------------------------------------------------------------------------
205,000 NJ EDA (Seniorcare of Hamilton) 8.350 11/01/2030 206,265
- ------------------------------------------------------------------------------------------------------------------
1,500,000 NJ EDA (St. Francis Life Care Corp.) 5.600 10/01/2012 1,425,780
- ------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EDA (St. Francis Life Care Corp.) 5.750 10/01/2023 1,708,820
- ------------------------------------------------------------------------------------------------------------------
1,000,000 NJ EDA (United Methodist Homes of NJ) 5.125 07/01/2025 832,830
- ------------------------------------------------------------------------------------------------------------------
15,000 NJ EDA Economic Recovery, Series A 6.000 03/15/2021 15,242
- ------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA Economic Recovery, Series A 6.000 03/15/2021 25,404
- ------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EDA Retirement Community (Cedar Crest Village) 7.250 11/15/2021 2,048,500
- ------------------------------------------------------------------------------------------------------------------
2,100,000 NJ EDA Retirement Community (Seabrook Village) 8.000 11/15/2015 2,184,399
- ------------------------------------------------------------------------------------------------------------------
1,460,000 NJ EFA (Bloomfield College) 6.850 07/01/2030 1,523,919
- ------------------------------------------------------------------------------------------------------------------
770,000 NJ EFA (Fairleigh Dickinson University), Series C 6.625 07/01/2023 788,010
10 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
Principal Market Value
Amount Coupon Maturity See Note 1
- ------------------------------------------------------------------------------------------------------------------
New Jersey Continued
$ 1,290,000 NJ EFA (Fairleigh Dickinson University), Series G 5.700% 07/01/2028 $ 1,241,019
- ------------------------------------------------------------------------------------------------------------------
10,000 NJ EFA (Monmouth University) 5.625 07/01/2013 10,170
- ------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EFA (Monmouth University) 5.800 07/01/2022 2,064,360
- ------------------------------------------------------------------------------------------------------------------
5,000 NJ EFA (Richard Stockton State College) 5.350 07/01/2023 5,081
- ------------------------------------------------------------------------------------------------------------------
1,000,000 NJ EFA (Rider University) 5.000 07/01/2017 1,009,630
- ------------------------------------------------------------------------------------------------------------------
100,000 NJ EFA (University of Medicine and Dentistry) 5.250 12/01/2025 100,608
- ------------------------------------------------------------------------------------------------------------------
10,000 NJ Health Care Facilities Financing Authority
(Allegany Health System Obligated Group) 5.200 07/01/2018 10,235
- ------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Health Care Facilities Financing Authority
(Atlantic City Medical Center) 5.750 07/01/2025 1,022,680
- ------------------------------------------------------------------------------------------------------------------
10,000 NJ Health Care Facilities Financing Authority
(Burdette Tomlin Memorial Hospital) 6.500 07/01/2012 10,247
- ------------------------------------------------------------------------------------------------------------------
2,070,000 NJ Health Care Facilities Financing Authority
(Columbus Hospital) 7.500 07/01/2021 1,749,295
- ------------------------------------------------------------------------------------------------------------------
2,000,000 NJ Health Care Facilities Financing Authority
(Englewood Hospital & Medical Center) RITES a 17.236 f 08/01/2025 2,094,400
- ------------------------------------------------------------------------------------------------------------------
5,000 NJ Health Care Facilities Financing Authority
(JFK Medical Center) 5.500 07/01/2023 5,111
- ------------------------------------------------------------------------------------------------------------------
125,000 NJ Health Care Facilities Financing Authority
(JFK Medical Center) 5.500 07/01/2023 127,771
- ------------------------------------------------------------------------------------------------------------------
105,000 NJ Health Care Facilities Financing Authority
(Mercer Medical Center) 6.500 07/01/2021 108,349
- ------------------------------------------------------------------------------------------------------------------
5,000 NJ Health Care Facilities Financing Authority
(Mountainside Hospital) 5.500 07/01/2014 5,113
- ------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Health Care Facilities Financing Authority
(Robert Wood Johnson University Hospital) 5.750 07/01/2025 1,041,870
- ------------------------------------------------------------------------------------------------------------------
750,000 NJ Health Care Facilities Financing Authority
(St. Joseph's Hospital & Medical Center) 6.000 07/01/2026 813,300
- ------------------------------------------------------------------------------------------------------------------
50,000 NJ Health Care Facilities Financing Authority
(Underwood Memorial Hospital) 5.700 07/01/2023 51,127
- ------------------------------------------------------------------------------------------------------------------
20,000 NJ HFA 5.375 11/01/2008 20,025
- ------------------------------------------------------------------------------------------------------------------
10,000 NJ HFA 5.700 11/01/2005 10,004
- ------------------------------------------------------------------------------------------------------------------
20,000 NJ Highway Authority (Garden State Parkway) 5.500 01/01/2016 20,036
- ------------------------------------------------------------------------------------------------------------------
75,000 NJ Hsg. & Mortgage Finance Agency (Presidential Plaza) 6.950 05/01/2013 75,356
- ------------------------------------------------------------------------------------------------------------------
325,000 NJ Hsg. & Mortgage Finance Agency (Presidential Plaza) 7.000 05/01/2030 328,331
- ------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Hsg. & Mortgage Finance Agency, Series A 6.250 05/01/2028 1,035,520
- ------------------------------------------------------------------------------------------------------------------
125,000 NJ Hsg. & Mortgage Finance Agency, Series E1 5.750 05/01/2025 128,954
- ------------------------------------------------------------------------------------------------------------------
5,000 NJ Hsg. & Mortgage Finance Agency, Series J 5.800 11/01/2018 5,000
- ------------------------------------------------------------------------------------------------------------------
305,000 NJ Hsg. & Mortgage Finance Agency, Series J 6.200 10/01/2025 310,911
- ------------------------------------------------------------------------------------------------------------------
5,000 NJ Hsg. & Mortgage Finance Agency, Series M 6.700 04/01/2021 5,037
- ------------------------------------------------------------------------------------------------------------------
1,100,000 NJ Hsg. & Mortgage Finance Agency, Series U 5.750 04/01/2018 1,133,231
- ------------------------------------------------------------------------------------------------------------------
65,000 NJ Sports & Exposition Authority
(Convention Center Luxury Tax), Series A 5.500 07/01/2022 65,809
- ------------------------------------------------------------------------------------------------------------------
45,000 NJ State Turnpike Authority, Series A 6.750 01/01/2008 45,065
- ------------------------------------------------------------------------------------------------------------------
10,275,000 NJ Tobacco Settlement Financing Corp. (TASC) 5.750 06/01/2032 8,820,574
- ------------------------------------------------------------------------------------------------------------------
5,500,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.000 06/01/2037 4,406,600
- ------------------------------------------------------------------------------------------------------------------
6,500,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.125 06/01/2042 5,217,225
- ------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.250 06/01/2043 817,220
11 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount Coupon Maturity See Note 1
- ------------------------------------------------------------------------------------------------------------------
New Jersey Continued
$ 75,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.375% 06/01/2032 $ 65,601
- ------------------------------------------------------------------------------------------------------------------
2,000,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.750 06/01/2039 1,772,700
- ------------------------------------------------------------------------------------------------------------------
10,000,000 NJ Tobacco Settlement Financing Corp. RITES a 10.190 f 06/01/2042 6,053,100
- ------------------------------------------------------------------------------------------------------------------
2,500,000 NJ Transit Corp. ROLs, Series 15 a 11.290 f 09/15/2014 3,326,700
- ------------------------------------------------------------------------------------------------------------------
5,055,000 Port Authority NY/NJ (Delta Air Lines) 6.950 06/01/2008 5,091,244
- ------------------------------------------------------------------------------------------------------------------
2,500,000 Port Authority NY/NJ (KIAC) 6.750 10/01/2011 2,612,400
- ------------------------------------------------------------------------------------------------------------------
955,000 Port Authority NY/NJ (KIAC) 6.750 10/01/2019 976,965
- ------------------------------------------------------------------------------------------------------------------
2,305,000 Port Authority NY/NJ 238th Series ROLs a,w 18.300 f 12/15/2032 2,270,241
- ------------------------------------------------------------------------------------------------------------------
200,000 Port Authority NY/NJ, 94th Series 6.000 12/01/2014 212,346
- ------------------------------------------------------------------------------------------------------------------
20,000 Riverside Township GO 5.450 12/01/2010 20,099
- ------------------------------------------------------------------------------------------------------------------
240,000 Salem County Industrial Pollution Control
Financing Authority (Public Service Electric & Gas) 5.550 11/01/2033 245,906
- ------------------------------------------------------------------------------------------------------------------
185,000 Salem County Industrial Pollution Control
Financing Authority (Public Service Electric & Gas) 5.700 05/01/2028 189,170
- ------------------------------------------------------------------------------------------------------------------
75,000 Salem County Industrial Pollution Control
Financing Authority (Public Service Electric & Gas) 6.250 06/01/2031 79,088
- ------------------------------------------------------------------------------------------------------------------
75,000 Salem County Pollution Control Financing
Authority (E.I. Dupont De Nemours) 6.125 07/15/2022 75,830
- ------------------------------------------------------------------------------------------------------------------
180,000 Salem County Pollution Control Financing
Authority (E.I. Dupont De Nemours) 6.500 11/15/2021 180,929
- ------------------------------------------------------------------------------------------------------------------
1,000,000 Salem County Pollution Control Financing
Authority (Public Service Electric & Gas) 5.750 04/01/2031 968,320
- ------------------------------------------------------------------------------------------------------------------
15,000 Scotch Plains Township Senior Citizens Hsg. Corp. 5.750 09/01/2023 15,132
- ------------------------------------------------------------------------------------------------------------------
1,500,000 South Jersey Port Corp. 5.200 01/01/2023 1,463,940
- ------------------------------------------------------------------------------------------------------------------
750,000 South Jersey Port Corp. 5.250 01/01/2024 736,605
- ------------------------------------------------------------------------------------------------------------------
50,000 South Jersey Transit Authority (The Raytheon Company) 6.150 01/01/2022 49,213
- ------------------------------------------------------------------------------------------------------------------
35,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.350 06/01/2023 34,782
- ------------------------------------------------------------------------------------------------------------------
50,000 Warren County Municipal Utilities Authority 5.300 12/01/2016 51,005
------------
114,008,054
- ------------------------------------------------------------------------------------------------------------------
U.S. Possessions--15.6%
100,000 Guam Airport Authority, Series A 6.500 10/01/2023 102,167
- ------------------------------------------------------------------------------------------------------------------
30,000 Guam Airport Authority, Series B 6.700 10/01/2023 30,710
- ------------------------------------------------------------------------------------------------------------------
1,475,000 Northern Mariana Islands, Series A 6.250 03/15/2028 1,488,821
- ------------------------------------------------------------------------------------------------------------------
100,000 Puerto Rico ITEMECF (Ana G. Mendez University) 5.375 02/01/2019 100,367
- ------------------------------------------------------------------------------------------------------------------
965,000 Puerto Rico ITEMECF (Congeneration Facilities) 6.625 06/01/2026 999,595
- ------------------------------------------------------------------------------------------------------------------
365,000 Puerto Rico ITEMECF
(Polytechnic University of Puerto Rico) 6.500 08/01/2024 392,120
- ------------------------------------------------------------------------------------------------------------------
1,000,000 Puerto Rico Municipal Finance Agency RITES a 10.280 f 08/01/2015 1,276,140
- ------------------------------------------------------------------------------------------------------------------
6,400,000 Puerto Rico Port Authority (American Airlines), Series A 6.250 06/01/2026 3,456,064
- ------------------------------------------------------------------------------------------------------------------
110,000 Puerto Rico Port Authority (American Airlines), Series A 6.300 06/01/2023 59,399
- ------------------------------------------------------------------------------------------------------------------
15,000 Puerto Rico Port Authority, Series D 6.000 07/01/2021 15,362
- ------------------------------------------------------------------------------------------------------------------
620,000 University of V.I. , Series A 5.750 12/01/2013 661,993
- ------------------------------------------------------------------------------------------------------------------
1,000,000 University of V.I. , Series A 6.000 12/01/2024 1,038,050
- ------------------------------------------------------------------------------------------------------------------
105,000 V.I. Hsg. Finance Authority, Series A 6.500 03/01/2025 106,899
- ------------------------------------------------------------------------------------------------------------------
5,000,000 V.I. Public Finance Authority (Hovensa Coker) 6.500 07/01/2021 5,011,850
- ------------------------------------------------------------------------------------------------------------------
40,000 V.I. Public Finance Authority, Series A 6.125 10/01/2029 41,623
12 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
Principal Market Value
Amount Coupon Maturity See Note 1
- ------------------------------------------------------------------------------------------------------------------
U.S. Possessions Continued
$ 1,515,000 V.I. Public Finance Authority, Series A 6.375% 10/01/2019 $ 1,686,937
- ------------------------------------------------------------------------------------------------------------------
300,000 V.I. Public Finance Authority, Series E 5.875 10/01/2018 303,729
- ------------------------------------------------------------------------------------------------------------------
2,500,000 V.I. Public Finance Authority, Series E 6.000 10/01/2022 2,516,375
- ------------------------------------------------------------------------------------------------------------------
290,000 V.I. Water & Power Authority 5.300 07/01/2018 286,952
- ------------------------------------------------------------------------------------------------------------------
175,000 V.I. Water & Power Authority 5.300 07/01/2021 168,852
------------
19,744,005
- ------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $139,097,307)--105.7% 133,752,059
- ------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets--(5.7) (7,231,720)
------------
Net Assets--100.0% $126,520,339
============
Footnotes to Statement of Investments
a. Identifies issues considered to be illiquid. See Note 5 of Notes to Financial
Statements.
f. Represents the current interest rate for a variable rate bond known as an
"inverse floater". See Note 1 of Notes to Financial Statements.
w. When-issued security to be delivered and settled after July 31, 2003. See
Note 1 of Notes to Financial Statements.
To simplify the listings of securities, abbreviations are used per the table
below:
CCC Continuing Care Center JFK John Fitzgerald Kennedy
EDA Economic Development Authority NY/NJ New York/New Jersey
EFA Educational Facilities Authority RITES Residual Interest Tax
GO General Obligation Exempt Security
HFA Housing Finance Agency ROLs Residual Option Longs
ITEMECF Industrial, Tourist, Educational, RWJ Robert Wood Johnson
Medical and Environmental Community TASC Tobacco Settlement
Facilities Asset-Backed Bonds
V.I. United States Virgin Islands
- --------------------------------------------------------------------------------
Industry Concentrations July 31, 2003
Distribution of investments by industry of issue, as a percentage of total
investments at value, is as follows:
Industry Market Value Percent
- -----------------------------------------------------------------------------
Tobacco Settlements $ 27,153,020 20.3%
Higher Education 26,467,452 19.8
Airlines 18,524,972 13.9
Hospital/Health Care 12,354,425 9.2
Adult Living Facilities 11,471,750 8.6
Pollution Control 7,366,437 5.5
Marine/Aviation Facilities 6,369,405 4.8
Electric Utilities 5,079,546 3.8
Sales Tax Revenue 4,548,664 3.4
Municipal Leases 3,387,720 2.5
Special Tax 2,706,700 2.0
Multifamily Housing 1,638,469 1.2
Single Family Housing 1,556,078 1.2
General Obligation 1,352,905 1.0
Student Loans 1,080,610 0.8
Resource Recovery 935,090 0.7
Gas Utilities 867,850 0.7
Water Utilities 673,227 0.5
13 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
Industry Concentrations July 31, 2003 / Continued
Industry Market Value Percent
- -----------------------------------------------------------------------------
Sports Facility Revenue $ 65,809 0.1%
Highways/Railways 65,101 --
Sewer Utilities 51,005 --
Parking Fee Revenue 25,592 --
Education 10,232 --
-------------------------
Total $133,752,059 100.0%
=========================
- --------------------------------------------------------------------------------
Summary of Ratings July 31, 2003 / Unaudited
- --------------------------------------------------------------------------------
Distribution of investments by rating category, as a percentage of total
investments at value, is as follows:
Ratings Percent
- ----------------------------------------------------------------------------
AAA 15.8%
AA 1.2
A 40.5
BBB 19.5
BB 3.8
B 7.4
CCC 4.0
CC 0.0
C 0.0
D 0.0
Not Rated 7.8
------
100.0%
======
Bonds rated by any nationally recognized statistical rating organization are
included in the equivalent Standard & Poor's rating category. As a general
matter, unrated bonds may be backed by mortgage liens or equipment liens on the
underlying property, and also may be guaranteed. Bonds which are backed by a
letter of credit or by other financial institutions or agencies may be assigned
an investment-grade rating by the Manager, which reflects the quality of the
guarantor, institution or agency. Unrated bonds may also be assigned a rating
when the issuer has rated bonds outstanding with comparable credit
characteristics, or when, in the opinion of the Manager, the bond itself
possesses credit characteristics which allow for rating. The unrated bonds in
the portfolio are predominantly smaller issuers which have not applied for a
bond rating. Only those unrated bonds which subsequent to purchase have not been
designated investment grade by the Manager are included in the "Not Rated"
category.
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2003
- ------------------------------------------------------------------------------------------------
Assets
Investments, at value (cost $139,097,307)--see accompanying statement $ 133,752,059
- ------------------------------------------------------------------------------------------------
Cash 74,713
- ------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 9,369,684
Interest 1,958,653
Shares of beneficial interest sold 629,737
Other 1,479
---------------
Total assets 145,786,325
- ------------------------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Investments purchased (including $2,395,800 purchased on a when-issued basis) 11,967,381
Notes payable to bank (interest rate 1.75% at July 31, 2003) 6,000,000
Shares of beneficial interest redeemed 1,047,651
Dividends 151,685
Shareholder reports 44,218
Distribution and service plan fees 16,004
Trustees' compensation 15,564
Transfer and shareholder servicing agent fees 6,979
Other 16,504
---------------
Total liabilities 19,265,986
- ------------------------------------------------------------------------------------------------
Net Assets $ 126,520,339
===============
- ------------------------------------------------------------------------------------------------
Composition of Net Assets
Paid-in capital $ 135,630,907
- ------------------------------------------------------------------------------------------------
Undistributed net investment income 711,260
- ------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (4,476,580)
- ------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (5,345,248)
---------------
Net Assets $ 126,520,339
===============
15 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$61,824,632 and 5,884,588 shares of beneficial interest outstanding) $10.51
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $11.03
- -----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $46,911,928
and 4,460,277 shares of beneficial interest outstanding) $10.52
- -----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $17,783,779
and 1,691,563 shares of beneficial interest outstanding) $10.51
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF OPERATIONS For the Year Ended July 31, 2003
- ----------------------------------------------------------------------------
Investment Income
Interest $ 8,239,455
- ----------------------------------------------------------------------------
Expenses
Management fees 700,465
- ----------------------------------------------------------------------------
Distribution and service plan fees:
Class A 78,410
Class B 406,958
Class C 150,803
- ----------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 35,242
Class B 26,860
Class C 10,180
- ----------------------------------------------------------------------------
Interest expense 119,128
- ----------------------------------------------------------------------------
Shareholder reports 85,761
- ----------------------------------------------------------------------------
Custodian fees and expenses 7,577
- ----------------------------------------------------------------------------
Trustees' compensation 3,235
- ----------------------------------------------------------------------------
Other 37,492
--------------
Total expenses 1,662,111
Less reduction to custodian expenses (1,129)
Less reimbursement of management fees (233,490)
--------------
Net expenses 1,427,492
- ----------------------------------------------------------------------------
Net Investment Income 6,811,963
- ----------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain on investments 5,404,061
- ----------------------------------------------------------------------------
Net change in unrealized depreciation on investments (11,332,800)
- ----------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 883,224
==============
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended July 31, 2003 2002
- -------------------------------------------------------------------------------------
Operations
Net investment income $ 6,811,963 $ 4,204,020
- -------------------------------------------------------------------------------------
Net realized gain (loss) 5,404,061 (824,243)
- -------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (11,332,800) 1,576,648
-----------------------------
Net increase in net assets resulting from operations 883,224 4,956,425
- -------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (3,131,845) (2,023,988)
Class B (2,226,464) (1,645,824)
Class C (828,541) (388,173)
- -------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions:
Class A 17,051,804 7,709,022
Class B 5,059,679 4,357,265
Class C 5,855,389 3,921,841
- -------------------------------------------------------------------------------------
Net Assets
Total increase 22,663,246 16,886,568
- -------------------------------------------------------------------------------------
Beginning of period 103,857,093 86,970,525
-----------------------------
End of period [including undistributed net investment
income of $711,260 and $86,147, respectively] $126,520,339 $103,857,093
=============================
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF CASH FLOWS For the Year Ended July 31, 2003
- --------------------------------------------------------------------------------
Cash Flows from Operating Activities
Net increase in net assets from operations $ 883,224
- --------------------------------------------------------------------------------
Adjustments to reconcile net decrease in net assets from operations
to net cash used in operating activities:
Purchase of investment securities (149,259,807)
Proceeds from disposition of investment securities 112,798,124
Increase in interest receivable (656,040)
Increase in receivable for securities sold (5,283,001)
Increase in other assets (417,566)
Increase in payable for securities purchased 6,075,362
Increase in accrued expenses 893,437
Amortization 118,890
Realized gain on securities (5,404,061)
Unrealized depreciation on securities 11,332,800
---------------
Net cash used in operating activities (28,918,638)
- --------------------------------------------------------------------------------
Cash Flows from Financing Activities
Proceeds from issuance of debt 90,200,000
Payments on outstanding debt (84,200,000)
Proceeds from shares sold 50,904,080
Payment on shares redeemed (26,525,923)
Cash distributions paid (2,598,135)
-------------
Net cash provided by financing activities 27,780,022
- --------------------------------------------------------------------------------
Net decrease in cash (1,138,616)
- --------------------------------------------------------------------------------
Cash, beginning balance 1,213,329
---------------
Cash, ending balance $ 74,713
===============
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
Class A Year Ended July 31, 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $10.99 $10.89 $10.36 $11.21 $11.58
- ----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .67 .53 .55 .53 .55
Net realized and unrealized gain (loss) (.52) .08 .51 (.82) (.36)
----------------------------------------------------------------
Total from investment operations .15 .61 1.06 (.29) .19
- ----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.63) (.51) (.53) (.55) (.55)
Distributions from net realized gain -- -- -- (.01) (.01)
----------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.63) (.51) (.53) (.56) (.56)
- ----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.51 $10.99 $10.89 $10.36 $11.21
================================================================
- ----------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 1.21% 5.79% 10.42% (2.47)% 1.57%
- ----------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $61,825 $47,305 $39,185 $31,937 $42,289
- ----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $54,811 $42,809 $35,710 $35,286 $38,999
- ----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 6.24% 4.88% 5.08% 5.26% 4.71%
Total expenses 1.02% 0.84% 0.87% 1.09% 1.10%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 0.82% 3 0.63% 3 0.67% 3 0.79% 3 0.63% 3
- ----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 93% 26% 27% 101% 70%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Excludes interest expense.
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
Class B Year Ended July 31, 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $11.00 $10.90 $10.37 $11.21 $11.58
- ----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .59 .45 .47 .47 .47
Net realized and unrealized gain (loss) (.53) .08 .51 (.83) (.37)
----------------------------------------------------------------
Total from investment operations .06 .53 .98 (.36) .10
- ----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.54) (.43) (.45) (.47) (.46)
Distributions from net realized gain -- -- -- (.01) (.01)
----------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.54) (.43) (.45) (.48) (.47)
- ----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.52 $11.00 $10.90 $10.37 $11.21
================================================================
- ----------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 0.46% 4.99% 9.58% (3.11)% 0.81%
- ----------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $46,912 $43,888 $39,164 $35,338 $44,322
- ----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $45,226 $41,532 $36,447 $38,064 $39,842
- ----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.46% 4.12% 4.34% 4.50% 3.96%
Total expenses 1.78% 1.60% 1.62% 1.85% 1.85%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 1.58% 3 1.39% 3 1.42% 3 1.55% 3 1.38% 3
- ----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 93% 26% 27% 101% 70%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Excludes interest expense.
See accompanying Notes to Financial Statements.
21 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FINANCIAL HIGHLIGHTS Continued
Class C Year Ended July 31, 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $10.99 $10.89 $10.36 $11.21 $11.58
- ----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .59 .44 .47 .46 .46
Net realized and unrealized gain (loss) (.53) .09 .51 (.83) (.36)
----------------------------------------------------------------
Total from investment operations .06 .53 .98 (.37) .10
- ----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.54) (.43) (.45) (.47) (.46)
Distributions from net realized gain -- -- -- (.01) (.01)
----------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.54) (.43) (.45) (.48) (.47)
- ----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.51 $10.99 $10.89 $10.36 $11.21
================================================================
- ----------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 0.45% 4.99% 9.59% (3.20)% 0.81%
- ----------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $17,784 $12,664 $8,622 $7,142 $9,732
- ----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $16,770 $ 9,831 $7,301 $8,198 $8,483
- ----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.49% 4.10% 4.33% 4.51% 3.96%
Total expenses 1.78% 1.60% 1.62% 1.85% 1.85%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 1.58% 3 1.39% 3 1.42% 3 1.55% 3 1.38% 3
- ----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 93% 26% 27% 101% 70%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Excludes interest expense.
See accompanying Notes to Financial Statements.
22 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer New Jersey Municipal Fund (the Fund) is a separate series of
Oppenheimer Multi-State Municipal Trust, a non-diversified, open-end management
investment company registered under the Investment Company Act of 1940, as
amended. The Fund's investment objective is to seek as high a level of current
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 a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges. Earnings, net
assets and net asset value per share may differ by minor amounts due to each
class having its own expenses directly attributable to that class. Classes A, B
and C 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 listed or traded on National Stock Exchanges
or other domestic or foreign exchanges are valued based on the last sale price
of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ prior to the time when the Fund's assets are valued.
In the absence of a sale, the security is valued 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 using 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 amortized cost (which
approximates market value).
- --------------------------------------------------------------------------------
Securities on a When-Issued or Forward Commitment Basis. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis can
take place a month or more after the trade date. Normally the settlement date
occurs within six months after the trade date; however, the Fund may, from time
to time, purchase securities whose settlement date extends six months or more
beyond trade date. During this period, such securities do not earn interest,
are subject to market fluctuation and may increase or decrease in value prior
to their delivery. The Fund maintains segregated assets with a market value
equal to or greater than the amount of its commitments. These transactions of
securities on a when-issued basis may increase the volatility of the Fund's net
asset value to the extent the Fund executes such transactions while remaining
23 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
substantially fully invested. As of July 31, 2003, the Fund had entered into
when-issued purchase commitments or forward commitments of $2,395,800.
- --------------------------------------------------------------------------------
Inverse Floating Rate Securities. The Fund invests in inverse floating rate
securities that pay interest at a rate that varies inversely with short-term
interest rates. Certain of these securities may be leveraged, whereby the
interest rate varies inversely at a multiple of the change in short-term rates.
As interest rates rise, inverse floaters produce less current income. The price
of such securities is more volatile than comparable fixed rate securities. The
Fund intends to invest no more than 20% of its total assets in inverse
floaters. Inverse floaters amount to $15,020,581 as of July 31, 2003. Including
the effect of leverage, inverse floaters represent 17.16% of the Fund's total
assets as of July 31, 2003.
- --------------------------------------------------------------------------------
Security Credit Risk. There are certain risks arising from geographic
concentration in any State. Certain revenue or tax related events in a state
may impair the ability of certain issuers of municipal securities to pay
principal and interest on their obligations.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years
and unrealized appreciation or depreciation of investment for federal income
tax purposes.
Net Unrealized
Depreciation
Undistributed Undistributed Accumulated Based on Cost of
Net Investment Long-Term Loss Securities for Federal
Income Gain Carryforward 1,2 Income Tax Purposes
----------------------------------------------------------------------
$878,018 $-- $4,476,583 $5,345,248
1. As of July 31, 2003, the Fund had $4,476,583 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of July 31, 2003, details
of the capital loss carryforwards were as follows:
Expiring
----------------------
2009 $2,925,051
2010 1,551,532
----------
Total $4,476,583
==========
2. During the fiscal years ended July 31, 2003 and July 31, 2002, the Fund
utilized $5,100,207 and $--, respectively, of capital loss carryforwards to
offset capital gains realized in the respective fiscal year.
24 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
The tax character of distributions paid during the years ended July 31, 2003
and July 31, 2002 was as follows:
Year Ended Year Ended
July 31, 2003 July 31, 2002
-------------------------------------------------------
Distributions paid from:
Exempt-interest dividends $6,186,850 $4,057,985
The aggregate cost of investments and the composition of unrealized
appreciation and depreciation of investments for federal income tax purposes as
of July 31, 2003 are noted below. The primary difference between book and tax
appreciation or depreciation of investments, if applicable, is attributable to
the tax deferral of losses or tax realization of financial statement unrealized
gain or loss.
Federal Tax Cost $139,097,307
=============
Gross unrealized appreciation $ 3,098,653
Gross unrealized depreciation (8,443,901)
-------------
Net unrealized depreciation $ (5,345,248)
=============
- --------------------------------------------------------------------------------
Trustees' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
July 31, 2003, the Fund's projected benefit obligations were decreased by
$1,208 and payments of $1,658 were made to retired trustees, resulting in an
accumulated liability of $15,079 as of July 31, 2003.
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 the annual compensation they are entitled to receive from the
Fund. Under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or are invested in other
selected Oppenheimer 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. Amounts will be
deferred until distributed in accordance to the Plan.
- --------------------------------------------------------------------------------
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. Income distributions, if any, are
declared daily and paid monthly. Capital gain distributions, if any, are
declared and paid annually.
- --------------------------------------------------------------------------------
Investment Income. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
25 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Security Transactions. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
Other. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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:
Year Ended July 31, 2003 Year Ended July 31, 2002
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
Class A
Sold 2,447,732 $ 26,349,769 1,270,051 $13,768,956
Dividends and/or
distributions reinvested 170,097 1,828,108 95,545 1,033,564
Redeemed (1,039,182) (11,126,073) (658,419) (7,093,498)
-----------------------------------------------------
Net increase 1,578,647 $ 17,051,804 707,177 $ 7,709,022
=====================================================
- --------------------------------------------------------------------------------
Class B
Sold 1,364,294 $ 14,637,609 1,202,397 $13,034,772
Dividends and/or
distributions reinvested 120,251 1,294,316 78,885 854,215
Redeemed (1,014,950) (10,872,246) (883,955) (9,531,722)
-----------------------------------------------------
Net increase 469,595 $ 5,059,679 397,327 $ 4,357,265
=====================================================
- --------------------------------------------------------------------------------
Class C
Sold 918,241 $ 9,916,702 553,069 $ 5,993,189
Dividends and/or
distributions reinvested 43,360 466,291 19,189 207,721
Redeemed (422,140) (4,527,604) (211,598) (2,279,069)
-----------------------------------------------------
Net increase 539,461 $ 5,855,389 360,660 $ 3,921,841
=====================================================
- --------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended July 31, 2003, were
$149,259,807 and $112,798,124, respectively.
26 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
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 a fee at
annual rate 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 certain Fund expenses. The foregoing waiver is voluntary and may be
amended or withdrawn by the Manager at any time.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the year ended July 31, 2003, the Fund
paid $74,816 to OFS for services to the Fund.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees for all classes, up to an annual rate of 0.35% of average net assets per
class. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
Distribution and Service Plan (12b-1) Fees. Under its General Distributor's
Agreement with the Manager, OppenheimerFunds Distributor, Inc. (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.
Aggregate Class A Concessions Concessions Concessions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1
- -------------------------------------------------------------------------------------------
July 31, 2003 $432,635 $62,816 $37,785 $443,729 $76,829
1. The Distributor advances concession 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.
Class A Class B Class C
Contingent Contingent Contingent
Deferred Deferred Deferred
Sales Charges Sales Charges Sales Charges
Retained by Retained by Retained by
Year Ended Distributor Distributor Distributor
- -------------------------------------------------------------------------------
July 31, 2003 $-- $140,792 $6,649
- --------------------------------------------------------------------------------
Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class
A Shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.15% of the average annual net assets of
Class A shares of the Fund. For the year ended July 31, 2003, expense under the
Class A Plan totaled $78,410, all of which were paid by the Distributor to
recipients, which included $2,250 paid to an affiliate of the Manager. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent years.
27 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
Distribution and Service Plans for Class B and Class C Shares. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares. Under
the plans, the Fund pays the Distributor an annual asset-based sales charge of
0.75% per year on Class B shares and on Class C shares. The Distributor also
receives a service fee of 0.15% per year under each plan.
Distribution fees paid to the Distributor for the year ended July 31, 2003,
were as follows:
Distributor's
Distributor's Aggregate
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- --------------------------------------------------------------------------------
Class B Plan $406,958 $352,303 $1,641,403 3.50%
Class C Plan 150,803 71,043 276,569 1.56
- --------------------------------------------------------------------------------
5. Illiquid Securities
As of July 31, 2003, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund intends to invest no more than 15% of its net assets (determined at the
time of purchase and reviewed periodically) in illiquid securities. The
aggregate value of illiquid securities subject to this limitation as of July
31, 2003 was $15,020,581, which represents 11.87% of the Fund's net assets.
- --------------------------------------------------------------------------------
6. Bank Borrowings
The Fund may borrow up to one third of its total assets from a bank to purchase
portfolio securities, or for temporary and emergency purposes. The purchase of
securities with borrowed funds creates leverage in the Fund. The Fund has
entered into an agreement which enables it to participate with certain other
Oppenheimer funds in a committed, unsecured line of credit with a bank, which
permits borrowings up to $350 million, collectively. Interest is charged to
each fund, based on its borrowings, at a rate equal to the Federal Funds Rate
plus 0.625%. 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 0.09% per
annum.
The Fund had borrowings outstanding of $6,000,000 at July 31, 2003 at an
interest rate of 1.75%. For the year ended July 31, 2003, the average monthly
loan balance was $5,991,754 at an average daily interest rate of 1.983%. The
Fund had gross borrowings and gross loan repayments of $90,200,000 and
$84,200,000, respectively, during the year ended July 31, 2003. The maximum
amount of borrowings outstanding at any month-end was $28,500,000. The Fund
paid commitment fees of $322 and interest of $118,521 during the year ended
July 31, 2003.
28 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of
Oppenheimer Multi-State Municipal Trust:
We have audited the accompanying statement of assets and liabilities including
the statement of investments of Oppenheimer New Jersey Municipal Fund, (one of
the portfolios constituting the Oppenheimer Multi-State Municipal Trust) as of
July 31, 2003, and the related statement of operations and cash flows for the
year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of July 31, 2003, by
correspondence with the custodian and brokers or by other appropriate auditing
procedures where replies from brokers were not received. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer New Jersey Municipal Fund as of July 31, 2003, the results of its
operations and its cash flows for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
August 21, 2003
29 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2003. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
None of the dividends paid by the Fund during the year ended July 31, 2003
are eligible for the corporate dividend-received deduction. The dividends were
derived from interest on municipal bonds and are not subject to federal income
taxes. To the extent a shareholder is subject to any state or local tax laws,
some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES Unaudited
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and
Procedures is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, (ii) on the Fund's website at
www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In
addition, the Fund will be required to file new Form N-PX, with its complete
proxy voting record for the 12 months ended June 30th, no later than August
31st of each year. The first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
30 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
SHAREHOLDER MEETING Unaudited
- --------------------------------------------------------------------------------
On August 30, 2002, a special shareholder meeting was held at which all
proposals were approved by shareholders as described in the Fund's proxy
statement for that meeting.
The following is a report of the votes cast:
For Against Abstain Total
- --------------------------------------------------------------------------------
Proposal No. 1(a) through 1(d)
1(a)Amend the Fund's fundamental investment policy prohibiting the Fund from
investing in real estate, to clarify that the Fund may invest in real
estate investment trusts and other issuers that have interests in real
estate:
4,360,451.319 191,048.210 132,553.906 4,684,053.435
1(b)Amend the Fund's fundamental investment policy with respect to industry
concentration:
4,201,376.873 217,335.317 265,341.245 4,684,053.435
1(c)Amend the Fund's fundamental investment policy with respect to borrowing:
3,941,485.454 505,224.170 237,343.811 4,684,053.435
1(d)Amend the Fund's fundamental investment policy with respect to lending:
4,194,885.731 282,199.789 206,967.915 4,684,053.435
- --------------------------------------------------------------------------------
Proposal No. 2
2. Approval of an Amended and Restated Class B 12b-1 Distribution and Service
Plan and Agreement (Class B shareholders only):
1,852,193.907 79,789.565 107,154.607 2,039,138.079
31 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
Principal Occupation(s) During Past 5 Years;
Other Trusteeships/Directorships Held by Trustee;
Name, Position(s) Held with Number of Portfolios in Fund Complex Currently
Fund, Length of Service, Age Overseen by Trustee
INDEPENDENT The address of each Trustee in the chart below is
TRUSTEES 6803 S. Tucson Way, Centennial, CO 80112-3924.
Each Trustee serves for an indefinite term, until
his or her resignation, retirement, death or
removal.
Clayton K. Yeutter, Of Counsel (since 1993), Hogan & Hartson (a law
Chairman of the Board firm). Other directorships: Weyerhaeuser Corp.
of Trustees (since 2003), (since 1999) and Danielson Holding Corp. (since
Trustee (since 1994) 2002); formerly a director of Caterpillar, Inc.
Age: 72 (1993-December 2002). Oversees 29 portfolios in
the OppenheimerFunds complex.
Robert G. Galli, A trustee or director of other Oppenheimer funds.
Trustee (since 1996) Formerly Trustee (May 2000-2002) of Research
Age: 69 Foundation of AIMR (investment research,
non-profit) and Vice Chairman (October
1995-December 1997) of OppenheimerFunds, Inc.
(the Manager). Oversees 39 portfolios in the
OppenheimerFunds complex.
Phillip A. Griffiths, A director (since 1991) of the Institute for
Trustee (since 1999) Advanced Study, Princeton, N.J., a director
Age: 64 (since 2001) of GSI Lumonics, a trustee (since
1983) of Woodward Academy, a Senior Advisor
(since 2001) of The Andrew W. Mellon Foundation.
A member of: the National Academy of Sciences
(since 1979), American Academy of Arts and
Sciences (since 1995), American Philosophical
Society (since 1996) and Council on Foreign
Relations (since 2002). Formerly a director of
Bankers Trust New York Corporation (1994-1999).
Oversees 29 portfolios in the OppenheimerFunds
complex.
Joel W. Motley, Director (since 2002) Columbia Equity Financial
Trustee (since 2002) Corp. (privately-held financial adviser);
Age: 53 Managing Director (since 2002) Carmona Motley,
Inc. (privately-held financial adviser); Formerly
he held the following positions: Managing
Director (January 1998-December 2001), Carmona
Motley Hoffman Inc. (privately-held financial
adviser); Managing Director (January
1992-December 1997), Carmona Motley & Co.
(privately-held financial adviser). Oversees 29
portfolios in the OppenheimerFunds complex.
Kenneth A. Randall, A director of Dominion Resources, Inc. (electric
Trustee (since 1994) utility holding company) and Prime Retail, Inc.
Age: 76 (real estate investment trust); formerly a
director of Dominion Energy, Inc. (electric power
and oil & gas producer), President and Chief
Executive Officer of The Conference Board, Inc.
(international economic and business research)
and a director of Lumbermens Mutual Casualty
Company, American Motorists Insurance Company and
American Manufacturers Mutual Insurance Company.
Oversees 29 portfolios in the OppenheimerFunds
complex.
Edward V. Regan, President, Baruch College, CUNY; a director of
Trustee (since 1994) RBAsset (real estate manager); a director of
Age: 73 OffitBank; formerly Trustee, Financial Accounting
Foundation (FASB and GASB), Senior Fellow of
Jerome Levy Economics Institute, Bard College,
Chairman of Municipal Assistance Corporation for
the City of New York, New York State Comptroller
and Trustee of New York State and Local
Retirement Fund. Oversees 29 investment companies
in the OppenheimerFunds complex.
Russell S. Reynolds, Jr., Chairman (since 1993) of The Directorship Search
Trustee (since 1994) Group, Inc. (corporate governance consulting and
Age: 71 executive recruiting); a life trustee of
International House (non-profit educational
organization), and a trustee (since 1996) of the
Greenwich Historical Society. Oversees 31
portfolios in the OppenheimerFunds complex.
32 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
Donald W. Spiro, Chairman Emeritus (since January 1991) of the
Vice Chairman of the Manager. Formerly a director (January 1969-August
Board of Trustees, 1999) of the Manager. Oversees 29 portfolios in
Trustee (since 1994) the OppenheimerFunds complex.
Age: 77
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is
AND OFFICER 498 Seventh Avenue, New York, NY 10018. Mr.
Murphy serves for an indefinite term, until his
resignation, death or removal.
John V. Murphy, Chairman, Chief Executive Officer and director
President and Trustee, (since June 2001) and President (since September
Trustee (since 2001) 2000) of the Manager; President and a director or
Age: 54 trustee of other Oppenheimer funds; President and
a director (since July 2001) of Oppenheimer
Acquisition Corp. (the Manager's parent holding
company) and of Oppenheimer Partnership Holdings,
Inc. (a holding company subsidiary of the
Manager); a director (since November 2001) of
OppenheimerFunds Distributor, Inc. (a subsidiary
of the Manager); Chairman and a director (since
July 2001) of Shareholder Services, Inc. and of
Shareholder Financial Services, Inc. (transfer
agent subsidiaries of the Manager); President and
a director (since July 2001) of OppenheimerFunds
Legacy Program (a charitable trust program
established by the Manager); a director of the
investment advisory subsidiaries of the Manager:
OFI Institutional Asset Management, Inc. and
Centennial Asset Management Corporation (since
November 2001), HarbourView Asset Management
Corporation and OFI Private Investments, Inc.
(since July 2001); President (since November 1,
2001) and a director (since July 2001) of
Oppenheimer Real Asset Management, Inc.; a
director (since November 2001) of Trinity
Investment Management Corp. and Tremont Advisers,
Inc. (investment advisory affiliates of the
Manager); Executive Vice President (since
February 1997) of Massachusetts Mutual Life
Insurance Company (the Manager's parent company);
a director (since June 1995) of DLB Acquisition
Corporation (a holding company that owns the
shares of David L. Babson & Company, Inc.);
formerly, Chief Operating Officer (September
2000-June 2001) of the Manager; President and
trustee (November 1999-November 2001) of MML
Series Investment Fund and MassMutual
Institutional Funds (open-end investment
companies); a director (September 1999-August
2000) of C.M. Life Insurance Company; President,
Chief Executive Officer and director (September
1999-August 2000) of MML Bay State Life Insurance
Company; a director (June 1989-June 1998) of
Emerald Isle Bancorp and Hibernia Savings Bank (a
wholly-owned subsidiary of Emerald Isle Bancorp).
Oversees 73 portfolios in the OppenheimerFunds
complex.
- --------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart below is
as follows: for Mr. Zack, 498 Seventh Avenue, New
York, NY 10018, for Mr. Wixted, 6803 S. Tucson
Way, Centennial, CO 80112-3924, for Mr. Fielding,
350 Linden Oaks, Rochester, NY 14625. Each
Officer serves for an annual term or until his or
her earlier resignation, death or removal.
Ronald H. Fielding, Senior Vice President (since January 1996) of the
Vice President (since 2002) Manager; Chairman of the Rochester Division of
Age: 54 the Manager (since January 1996); an officer of 9
portfolios in the OppenheimerFunds complex.
Brian W. Wixted, Senior Vice President and Treasurer (since March
Treasurer (since 1999) 1999) of the Manager; Treasurer (since March
Age: 43 1999) of HarbourView Asset Management
Corporation, Shareholder Services, Inc.,
Oppenheimer Real Asset Management Corporation,
33 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited / Continued
Brian W. Wixted, Shareholder Financial Services, Inc., Oppenheimer
Continued Partnership Holdings, Inc., OFI Private
Investments, Inc. (since March 2000),
OppenheimerFunds International Ltd. and
OppenheimerFunds plc (offshore fund management
subsidiary of the Manager) (since May 2000) and
OFI Institutional Asset Management, Inc. (since
November 2000) (offshore fund management
subsidiaries of the Manager); Treasurer and Chief
Financial Officer (since May 2000) of Oppenheimer
Trust Company (a trust company subsidiary of the
Manager); Assistant Treasurer (since March 1999)
of Oppenheimer Acquisition Corp. and
OppenheimerFunds Legacy Program (since April
2000); formerly Principal and Chief Operating
Officer (March 1995-March 1999), Bankers Trust
Company-Mutual Fund Services Division. An officer
of 89 portfolios in the OppenheimerFunds complex.
Robert G. Zack, Senior Vice President (since May 1985) and
Secretary (since 2001) General Counsel (since February 2002) of the
Age: 54 Manager; General Counsel and a director (since
November 2001) of OppenheimerFunds Distributor,
Inc.; Senior Vice President and General Counsel
(since November 2001) of HarbourView Asset
Management Corporation; Vice President and a
director (since November 2000) of Oppenheimer
Partnership Holdings, Inc.; Senior Vice
President, General Counsel and a director (since
November 2001) of Shareholder Services, Inc.,
Shareholder Financial Services, Inc., OFI Private
Investments, Inc., Oppenheimer Trust Company and
OFI Institutional Asset Management, Inc.; General
Counsel (since November 2001) of Centennial Asset
Management Corporation; a director (since
November 2001) of Oppenheimer Real Asset
Management, Inc.; Assistant Secretary and a
director (since November 2001) of
OppenheimerFunds International Ltd.; Vice
President (since November 2001) of
OppenheimerFunds Legacy Program; Secretary (since
November 2001) of Oppenheimer Acquisition Corp.;
formerly Acting General Counsel (November
2001-February 2002) and Associate General Counsel
(May 1981-October 2001) of the Manager; Assistant
Secretary of Shareholder Services, Inc. (May
1985-November 2001), Shareholder Financial
Services, Inc. (November 1989-November 2001);
OppenheimerFunds International Ltd. and
OppenheimerFunds plc (October 1997-November
2001). An officer of 89 portfolios in the
OppenheimerFunds complex.
The Fund's Statement of Additional Information contains additional information
about the Fund's Trustee's and is available without charge upon request.
34 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
ITEM 2. CODE OF ETHICS
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the Fund has determined that Edward V. Regan,
the Chairman of the Board's Audit Committee, possesses the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit
committee financial expert," and has designated Mr. Regan as the Audit
Committee's financial expert. Mr. Regan is an "independent" Trustee pursuant to
paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(c)) as of July 31, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to be appropriately
designed to ensure that information required to be disclosed by
registrant in the reports that it files under the Securities Exchange
Act of 1934 (a) is accumulated and communicated to registrant's
management, including its principal executive officer and principal
financial officer, to allow timely decisions regarding required
disclosure, and (b) is recorded, processed, summarized and reported,
within the time periods specified in the rules and forms adopted by the
U.S. Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect
registrant's internal controls subsequent to the date of the most
recent evaluation as indicated, including no significant deficiencies
or material weaknesses that required corrective action.
ITEM 10. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)