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 811-4054
Oppenheimer AMT-Free New York Municipals
(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
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: September 30
Date of reporting period: October 1, 2002 - September 30, 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 September 30, 2003, followed
by a graphical comparison of the Fund's performance to an appropriate
broad-based market index.
Management's Discussion of Fund Performance. The Fund underwent a significant
change during the period, as we removed all bonds in the portfolio that generate
income subject to the federal alternative minimum tax (AMT), prior to the
beginning of the calendar year. This could have reduced the Fund's yield, since
AMT-free bonds generally carry lower coupons than AMT-generating bonds of
comparable quality and maturity. However, that was not the case. Our research
and credit analysis capabilities allowed us to identify AMT-free bonds with
yields as good as or better than those of AMT-generating securities. Among them
were Master Settlement Agreement (MSA)-backed bonds, which are bonds backed by
each state's (or U.S. territory's) share of the national settlement agreement
with major tobacco manufacturers; inverse floaters; and lesser-known but
higher-yielding bonds tied to higher education, energy and health care
facilities. Significantly, we were able to divest the AMT-generating bonds
without incurring any net realized capital gains or additional ordinary income
for shareholders.
The Fund's 2.07% total return for Class A shares without sales charge, was
less than the 3.89% return of its benchmark, the Lehman Brothers Municipal Bond
Index. This was mainly the result of declining prices for MSA bonds and credit
downgrades for two holdings. All bonds have made scheduled interest and
principal payments.
However, the Fund achieved very attractive yields, due largely to its
substantial allocation to MSA bonds and to the inverse floaters, whose yields
rose as interest rates declined over the 12-month period.
As of September 30, 2003, MSA bonds represented 25.2% of total market value
of investments, and thus impacted the Fund's share price volatility over the
past year. 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 court decision required Phillip Morris to
pay the judgment or put up a $12 billion bond to appeal the decision. The size
of the 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. Ultimately, however, the
bonding requirement was reduced, and although this litigation continues, all MSA
payments have been made on schedule.
We continue to believe in the total return potential of MSA bonds, despite
their recent price volatility. It is our opinion that 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 in fact been 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. Adding to their
appeal is the fact that future issuance is likely to be smaller than past
issuance levels.
5 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND PERFORMANCE DISCUSSION
The amount of MSA-backed bonds New York can issue is finite: approximately $7
billion. Already, roughly $5 billion of this has been issued by the state and
its various localities, leaving just $2 billion to issue in coming years. New
York State and New York City, the two major state entities that can issue the $2
billion, have both indicated that they have no plans to issue any more debt as
"stand alone" MSA bonds, so the current picture is that there will not be any
more significant issuance. As MSA-backed bonds become relatively scarce over
time, continued demand for their very appealing yields could lead to higher
prices and exceptional total returns.
Bonds downgraded during this fiscal year included bonds backed by revenues
from Mt. Sinai Medical Center and a general obligation bond issued by the U.S
Territory of Guam. Mt. Sinai's credit-rating reduction was triggered by
financial performance from higher costs and lower revenues, while Guam's
resulted from declining tourism and the short-term effect of a severe typhoon.
In both cases, principal and interest payments continued on schedule. We've
maintained our positions, believing the bond's long-term prospects favor
recovery.
Finally, the Fund's total return benefited from a pre-refunded general
obligation bond issued by the City of New York. In a pre-refunding, a new bond
is issued and the proceeds are invested in Treasury securities earmarked to
repay principal on the pre-refunded bond. With this added guarantee of principal
repayment, the pre-refunded bond becomes a more secure credit and appreciates
significantly in price. The Fund's holdings, strategy and management are subject
to change.
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 September 30, 2003. In the case of Class A and Class B shares,
performance is measured over a ten-year period. 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, and the applicable contingent deferred sales charge for Class B
and Class C shares. The graphs assume that all dividends and capital gains
distributions were reinvested in additional shares.
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. The Lehman Brothers Index contains bonds subject
to the Federal AMT tax and NY state and NYC taxes. 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 AMT-FREE NEW YORK MUNICIPALS
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer AMT-Free New York Municipals (Class A)
Lehman Brothers Municipal Bond Index
[LINE CHART]
Value of Investment Lehman Brothers
Date In Fund Municipal Bond Index
09/30/1993 $9,525 $10,000
12/31/1993 $9,642 $10,140
03/31/1994 $9,049 $9,584
06/30/1994 $9,042 $9,689
09/30/1994 $8,999 $9,756
12/31/1994 $8,794 $9,616
03/31/1995 $9,489 $10,296
06/30/1995 $9,689 $10,544
09/30/1995 $9,861 $10,847
12/31/1995 $10,343 $11,295
03/31/1996 $10,221 $11,159
06/30/1996 $10,264 $11,244
09/30/1996 $10,517 $11,502
12/31/1996 $10,771 $11,795
03/31/1997 $10,747 $11,767
06/30/1997 $11,150 $12,172
09/30/1997 $11,440 $12,539
12/31/1997 $11,758 $12,879
03/31/1998 $11,889 $13,028
06/30/1998 $12,050 $13,226
09/30/1998 $12,397 $13,632
12/31/1998 $12,443 $13,714
03/31/1999 $12,562 $13,835
06/30/1999 $12,329 $13,591
09/30/1999 $12,104 $13,537
12/31/1999 $11,888 $13,432
03/31/2000 $12,237 $13,824
06/30/2000 $12,342 $14,033
09/30/2000 $12,683 $14,373
12/31/2000 $13,238 $15,001
03/31/2001 $13,547 $15,334
06/30/2001 $13,670 $15,434
09/30/2001 $13,922 $15,867
12/31/2001 $13,827 $15,770
03/31/2002 $13,876 $15,919
06/30/2002 $14,232 $16,501
09/30/2002 $14,772 $17,285
12/31/2002 $14,717 $17,285
03/31/2003 $14,629 $17,492
06/30/2003 $15,025 $17,944
09/30/2003 $15,078 $17,958
Average Annual Total Returns of Class A Shares of the Fund at 9/30/03*
1-Year -2.77% 5-Year 2.98% 10-Year 4.19%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer AMT-Free New York Municipals (Class B)
Lehman Brothers Municipal Bond Index
[LINE CHART]
Value of Investment Lehman Brothers
Date In Fund Municipal Bond Index
09/30/1993 $10,000 $10,000
12/31/1993 $10,110 $10,140
03/31/1994 $9,462 $9,584
06/30/1994 $9,437 $9,689
09/30/1994 $9,381 $9,756
12/31/1994 $9,151 $9,616
03/31/1995 $9,846 $10,296
06/30/1995 $10,044 $10,544
09/30/1995 $10,203 $10,847
12/31/1995 $10,673 $11,295
03/31/1996 $10,527 $11,159
06/30/1996 $10,552 $11,244
09/30/1996 $10,791 $11,502
12/31/1996 $11,031 $11,795
03/31/1997 $10,986 $11,767
06/30/1997 $11,377 $12,172
09/30/1997 $11,651 $12,539
12/31/1997 $11,952 $12,879
03/31/1998 $12,072 $13,028
06/30/1998 $12,212 $13,226
09/30/1998 $12,539 $13,632
12/31/1998 $12,561 $13,714
03/31/1999 $12,648 $13,835
06/30/1999 $12,389 $13,591
09/30/1999 $12,147 $13,537
12/31/1999 $11,930 $13,432
03/31/2000 $12,280 $13,824
06/30/2000 $12,385 $14,033
09/30/2000 $12,728 $14,373
12/31/2000 $13,285 $15,001
03/31/2001 $13,595 $15,334
06/30/2001 $13,718 $15,434
09/30/2001 $13,971 $15,867
12/31/2001 $13,876 $15,770
03/31/2002 $13,925 $15,919
06/30/2002 $14,282 $16,501
09/30/2002 $14,824 $17,285
12/31/2002 $14,770 $17,285
03/31/2003 $14,681 $17,492
06/30/2003 $15,078 $17,944
09/30/2003 $15,132 $17,958
Average Annual Total Returns of Class B Shares of the Fund at 9/30/03*
1-Year -3.47% 5-Year 2.87% 10-Year 4.23%
*See Notes on page 9 for further details.
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 9/30/93 for Class A and Class B and 8/31/95 for Class C.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
7 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND PERFORMANCE DISCUSSION
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer AMT-Free New York Municipals (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 $10,110 $10,063
12/31/1995 $10,576 $10,479
03/31/1996 $10,424 $10,353
06/30/1996 $10,445 $10,432
09/30/1996 $10,680 $10,671
12/31/1996 $10,916 $10,943
03/31/1997 $10,871 $10,917
06/30/1997 $11,257 $11,293
09/30/1997 $11,529 $11,633
12/31/1997 $11,827 $11,949
03/31/1998 $11,936 $12,086
06/30/1998 $12,084 $12,270
09/30/1998 $12,399 $12,647
12/31/1998 $12,420 $12,723
03/31/1999 $12,506 $12,836
06/30/1999 $12,259 $12,609
09/30/1999 $12,013 $12,559
12/31/1999 $11,775 $12,461
03/31/2000 $12,097 $12,825
06/30/2000 $12,178 $13,019
09/30/2000 $12,490 $13,334
12/31/2000 $13,013 $13,917
03/31/2001 $13,291 $14,226
06/30/2001 $13,396 $14,319
09/30/2001 $13,618 $14,721
12/31/2001 $13,488 $14,631
03/31/2002 $13,510 $14,769
06/30/2002 $13,830 $15,309
09/30/2002 $14,328 $16,036
12/31/2002 $14,246 $16,036
03/31/2003 $14,133 $16,229
06/30/2003 $14,498 $16,647
09/30/2003 $14,521 $16,660
Average Annual Total Returns of Class C Shares of the Fund at 9/30/03*
1-Year 0.39% 5-Year 3.21% Since Inception 4.72%
*See Notes on page 9 for further details.
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 9/30/93 for Class A and Class B and 8/31/95 for Class C.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
8 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
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) or visit the
OppenheimerFunds website at www.oppenheimerfunds.com. Read the prospectus
carefully before you invest or send money.
Distribution yield at net asset value is annualized (based on last distribution)
and divided by the net asset value on the Fund's 9/23/03 distribution date.
Standardized yield (based on net investment income for the 30-day period ended
9/30/03) is annualized and divided by the period-end offering price.
Distribution yield at net asset value does not include sales charges, which
would reduce results. For Classes B and C, distribution yield at Maximum
Offering Price does not include contingent deferred sales charges Falling share
prices may artificially increase yields.
Class A shares were first publicly offered on 8/16/84. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 4.75%,
except where noted. The Fund's maximum sales charge for Class A shares was lower
prior to 1/31/86, so an individual's account performance may have been higher
for that period.
Class B shares of the Fund were first publicly offered on 3/1/93. Unless
otherwise noted, Class B returns include 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. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
9 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS September 30, 2003
Principal Market Value
Amount Coupon Maturity See Note 1
- -------------------------------------------------------------------------------------------------------------------------
Municipal Bonds and Notes--102.4%
- -------------------------------------------------------------------------------------------------------------------------
New York--94.9%
$14,500,000 Albany IDA (Charitable Leadership) 5.750% 07/01/2026 $ 14,665,735
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Albany IDA (Charitable Leadership) 6.000 07/01/2019 1,053,850
- -------------------------------------------------------------------------------------------------------------------------
1,140,000 Albany IDA (Sage Colleges) 5.250 04/01/2019 1,154,444
- -------------------------------------------------------------------------------------------------------------------------
500,000 Albany IDA (Sage Colleges) 5.300 04/01/2029 490,610
- -------------------------------------------------------------------------------------------------------------------------
30,000 Albany Parking Authority 5.625 07/15/2025 30,856
- -------------------------------------------------------------------------------------------------------------------------
30,000 Allegany County IDA (Houghton College) 5.250 01/15/2024 30,005
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Amherst IDA (Daemen College) 6.000 10/01/2021 1,035,350
- -------------------------------------------------------------------------------------------------------------------------
170,000 Bayshore HDC 7.500 02/01/2023 176,358
- -------------------------------------------------------------------------------------------------------------------------
5,895,000 Brookhaven IDA (Alternatives for Children) 7.550 02/01/2033 6,018,264
- -------------------------------------------------------------------------------------------------------------------------
9,235,000 Brookhaven IDA (Dowling College) 6.750 11/01/2032 9,170,263
- -------------------------------------------------------------------------------------------------------------------------
750,000 Buffalo Municipal Water Finance Authority, Series B 5.000 07/01/2027 762,442
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Dutchess County IDA (Marist College) 5.000 07/01/2022 1,007,220
- -------------------------------------------------------------------------------------------------------------------------
30,000 East Rochester Hsg. Authority (St. John's Meadows) 5.750 08/01/2037 33,310
- -------------------------------------------------------------------------------------------------------------------------
1,095,000 Erie County IDA (DePaul Properties) 5.750 09/01/2028 870,120
- -------------------------------------------------------------------------------------------------------------------------
200,000 Erie County IDA (DePaul Properties) 6.500 09/01/2018 186,016
- -------------------------------------------------------------------------------------------------------------------------
5,600,000 Erie County IDA (Medaille College) 7.625 04/01/2035 5,616,016
- -------------------------------------------------------------------------------------------------------------------------
9,050,000 Erie County IDA (The Episcopal Church Home) 5.875 02/01/2018 9,226,294
- -------------------------------------------------------------------------------------------------------------------------
9,875,000 Erie County IDA (The Episcopal Church Home) 6.000 02/01/2028 9,980,169
- -------------------------------------------------------------------------------------------------------------------------
100,000 Erie County Tobacco Asset Securitization Corp. 5.750 07/15/2015 97,413
- -------------------------------------------------------------------------------------------------------------------------
125,000 Erie County Tobacco Asset Securitization Corp. 6.125 07/15/2030 118,542
- -------------------------------------------------------------------------------------------------------------------------
4,685,000 Erie County Tobacco Asset Securitization Corp. 6.250 07/15/2040 4,499,287
- -------------------------------------------------------------------------------------------------------------------------
5,500,000 Erie County Tobacco Asset Securitization Corp. 6.500 07/15/2032 5,474,480
- -------------------------------------------------------------------------------------------------------------------------
3,750,000 Geneva IDA (Hobart & William Smith Colleges) 5.375 02/01/2033 3,894,712
- -------------------------------------------------------------------------------------------------------------------------
5,500,000 Hempstead IDA (Working Organization
for Retarded Children) 6.900 08/01/2033 5,468,320
- -------------------------------------------------------------------------------------------------------------------------
1,790,000 Herkimer County IDA (Herkimer County
College Foundation) 6.250 08/01/2034 1,856,767
- -------------------------------------------------------------------------------------------------------------------------
5,750,000 L.I. Power Authority RITES i 15.966 r 09/01/2033 6,081,545
- -------------------------------------------------------------------------------------------------------------------------
4,395,000 L.I. Power Authority, Series A 5.125 09/01/2029 4,423,216
- -------------------------------------------------------------------------------------------------------------------------
10,000 L.I. Power Authority, Series A 5.250 12/01/2026 10,252
- -------------------------------------------------------------------------------------------------------------------------
25,000 L.I. Power Authority, Series A 5.300 12/01/2019 27,508
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Monroe County IDA (Cloverwood Senior Living) 6.875 05/01/2033 983,530
- -------------------------------------------------------------------------------------------------------------------------
525,000 Monroe County IDA (Collegiate Hsg. Foundation--RIT) 5.375 04/01/2029 514,295
- -------------------------------------------------------------------------------------------------------------------------
1,800,000 Monroe County IDA (Depaul Community Facilities) 5.875 02/01/2028 1,585,638
- -------------------------------------------------------------------------------------------------------------------------
40,000 Monroe County IDA (Rochester Institute of Technology) 5.250 04/01/2019 40,061
- -------------------------------------------------------------------------------------------------------------------------
4,000,000 Monroe Newpower Corp. 5.500 01/01/2034 4,061,720
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Monroe Newpower Corp. 5.625 01/01/2026 1,023,360
- -------------------------------------------------------------------------------------------------------------------------
18,000,000 MTA Service Contract, Series A 5.125 01/01/2029 18,303,300
- -------------------------------------------------------------------------------------------------------------------------
665,000 Nassau County IDA (ALIA--ACDS) 6.125 09/01/2018 672,594
- -------------------------------------------------------------------------------------------------------------------------
2,170,000 Nassau County IDA (ALIA--AP) 7.000 09/01/2028 2,184,821
- -------------------------------------------------------------------------------------------------------------------------
935,000 Nassau County IDA (ALIA--CMA) 6.125 09/01/2018 945,678
- -------------------------------------------------------------------------------------------------------------------------
1,035,000 Nassau County IDA (ALIA--CSMR) 6.125 09/01/2018 1,046,820
- -------------------------------------------------------------------------------------------------------------------------
700,000 Nassau County IDA (ALIA--EFLI) 6.125 09/01/2018 707,994
- -------------------------------------------------------------------------------------------------------------------------
530,000 Nassau County IDA (ALIA--HAII) 6.125 09/01/2018 536,053
10 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
Principal Market Value
Amount Coupon Maturity See Note 1
- -------------------------------------------------------------------------------------------------------------------------
New York Continued
$ 620,000 Nassau County IDA (ALIA - NCMRS) 6.125% 09/01/2018 $ 627,080
- -------------------------------------------------------------------------------------------------------------------------
2,775,000 Nassau County IDA (Hispanic Counseling Center) 7.625 06/01/2033 2,766,786
- -------------------------------------------------------------------------------------------------------------------------
7,000,000 Nassau County Tobacco Settlement Corp. 6.500 07/15/2027 7,023,870
- -------------------------------------------------------------------------------------------------------------------------
210,000 New Rochelle Municipal Hsg. Authority, Series A 5.550 12/01/2014 202,419
- -------------------------------------------------------------------------------------------------------------------------
2,250,000 New Rochelle Municipal Hsg. Authority, Series B u 6.500 12/01/2014 2,168,572
- -------------------------------------------------------------------------------------------------------------------------
40,000 Newport Highlands HDC 6.100 08/01/2024 41,283
- -------------------------------------------------------------------------------------------------------------------------
2,500,000 Niagara County IDA (American Ref-Fuel Company) 5.550 11/15/2024 2,623,900
- -------------------------------------------------------------------------------------------------------------------------
100,000 Niagara County Tobacco Asset Securitization Corp. 5.500 05/15/2019 94,677
- -------------------------------------------------------------------------------------------------------------------------
500,000 Niagara County Tobacco Asset Securitization Corp. 6.250 05/15/2034 481,190
- -------------------------------------------------------------------------------------------------------------------------
160,000 Niagara County Tobacco Asset Securitization Corp. 6.250 05/15/2040 153,669
- -------------------------------------------------------------------------------------------------------------------------
7,645,000 Niagara Falls City School District COP 5.375 06/15/2028 7,993,383
- -------------------------------------------------------------------------------------------------------------------------
3,245,000 NY Counties Tobacco Trust I (TASC) 6.500 06/01/2035 3,229,521
- -------------------------------------------------------------------------------------------------------------------------
13,315,000 NY Counties Tobacco Trust II (TASC) 5.625 06/01/2035 11,701,488
- -------------------------------------------------------------------------------------------------------------------------
250,000 NY Counties Tobacco Trust II (TASC) 5.750 06/01/2014 242,520
- -------------------------------------------------------------------------------------------------------------------------
35,000 NYC GO 5.000 08/01/2022 35,386
- -------------------------------------------------------------------------------------------------------------------------
2,305,000 NYC GO 5.250 03/15/2032 2,640,009
- -------------------------------------------------------------------------------------------------------------------------
1,270,000 NYC GO 5.250 03/15/2032 1,284,224
- -------------------------------------------------------------------------------------------------------------------------
2,500,000 NYC GO 5.375 12/01/2026 2,561,225
- -------------------------------------------------------------------------------------------------------------------------
1,300,000 NYC GO 5.500 06/01/2022 1,369,134
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC GO 5.875 08/01/2019 1,091,270
- -------------------------------------------------------------------------------------------------------------------------
5,000 NYC GO 6.000 08/01/2011 5,092
- -------------------------------------------------------------------------------------------------------------------------
7,935,000 NYC GO 6.125 08/01/2025 8,868,235
- -------------------------------------------------------------------------------------------------------------------------
5,000 NYC GO 7.500 02/01/2019 5,061
- -------------------------------------------------------------------------------------------------------------------------
5,000,000 NYC GO RIBS 10.896 r 08/01/2013 5,287,800
- -------------------------------------------------------------------------------------------------------------------------
1,624,356 NYC HDC (Keith Plaza) 6.500 02/15/2018 1,708,384
- -------------------------------------------------------------------------------------------------------------------------
2,467,413 NYC HDC (Seaview Towers) 6.500 01/15/2018 2,595,052
- -------------------------------------------------------------------------------------------------------------------------
100,000 NYC Health & Hospital Corp. 5.375 02/15/2026 102,088
- -------------------------------------------------------------------------------------------------------------------------
1,920,000 NYC Health & Hospital Corp. 5.450 02/15/2026 1,969,824
- -------------------------------------------------------------------------------------------------------------------------
1,475,000 NYC IDA (American Council of Learned Societies) 5.250 07/01/2027 1,506,329
- -------------------------------------------------------------------------------------------------------------------------
6,000,000 NYC IDA (Calhoun School) 6.625 12/01/2034 5,995,320
- -------------------------------------------------------------------------------------------------------------------------
3,965,000 NYC IDA (Community Resource Developmentally Disabled) 7.500 08/01/2026 4,031,295
- -------------------------------------------------------------------------------------------------------------------------
520,000 NYC IDA (Crowne Plaza-LaGuardia) u 6.000 11/01/2028 295,417
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC IDA (Eger Harbor House) 5.875 05/20/2044 1,094,480
- -------------------------------------------------------------------------------------------------------------------------
12,000,000 NYC IDA (Legal Aid Society) 8.600 11/01/2033 12,455,400
- -------------------------------------------------------------------------------------------------------------------------
3,700,000 NYC IDA (Lycee Francais De New York) 5.375 06/01/2023 3,788,467
- -------------------------------------------------------------------------------------------------------------------------
4,000,000 NYC IDA (Lycee Francais De New York) 6.800 06/01/2028 4,063,600
- -------------------------------------------------------------------------------------------------------------------------
2,100,000 NYC IDA (Polytechnic University) 6.000 11/01/2020 1,885,884
- -------------------------------------------------------------------------------------------------------------------------
4,080,000 NYC IDA (Polytechnic University) 6.125 11/01/2030 3,571,102
- -------------------------------------------------------------------------------------------------------------------------
1,380,000 NYC IDA (PSCH) 6.375 07/01/2033 1,424,822
- -------------------------------------------------------------------------------------------------------------------------
1,495,000 NYC IDA (Staten Island University Hospital) 6.450 07/01/2032 1,594,358
- -------------------------------------------------------------------------------------------------------------------------
6,020,000 NYC IDA (The Child School) 7.550 06/01/2033 6,098,802
- -------------------------------------------------------------------------------------------------------------------------
15,785,000 NYC IDA (Touro College) 6.350 06/01/2029 14,013,292
- -------------------------------------------------------------------------------------------------------------------------
5,600,000 NYC IDA (Urban Resource Institute) 7.375 11/01/2033 5,552,624
- -------------------------------------------------------------------------------------------------------------------------
5,600,000 NYC IDA (Vocational Instruction) 7.750 02/01/2033 5,792,192
- -------------------------------------------------------------------------------------------------------------------------
4,245,000 NYC IDA (YMCA of Greater NY) 5.250 08/01/2021 4,347,177
11 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount Coupon Maturity See Note 1
- -------------------------------------------------------------------------------------------------------------------------
New York Continued
$ 3,000,000 NYC Municipal Water Finance Authority 5.000% 06/15/2032 $ 3,027,480
- -------------------------------------------------------------------------------------------------------------------------
75,000 NYC Municipal Water Finance Authority 5.125 06/15/2030 75,964
- -------------------------------------------------------------------------------------------------------------------------
6,000,000 NYC Municipal Water Finance Authority 5.125 06/15/2033 6,117,780
- -------------------------------------------------------------------------------------------------------------------------
15,000 NYC Municipal Water Finance Authority 5.250 06/15/2029 15,347
- -------------------------------------------------------------------------------------------------------------------------
8,000,000 NYC Municipal Water Finance Authority 5.500 06/15/2033 8,546,800
- -------------------------------------------------------------------------------------------------------------------------
50,000 NYS DA (Dept. of Health) 5.500 07/01/2025 53,377
- -------------------------------------------------------------------------------------------------------------------------
5,750,000 NYS DA (Ithaca College) 5.250 07/01/2026 5,923,420
- -------------------------------------------------------------------------------------------------------------------------
230,000 NYS DA (Judicial Facilities Lease) 7.375 07/01/2016 293,560
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 NYS DA (Lenox Hill Hospital Obligated Group) 5.500 07/01/2030 1,531,725
- -------------------------------------------------------------------------------------------------------------------------
25,000 NYS DA (Mental Health) 5.375 02/15/2026 26,192
- -------------------------------------------------------------------------------------------------------------------------
9,750,000 NYS DA (MSH/NYU Hospital Center/HJDOI
Obligated Group) 6.500 07/01/2025 9,896,738
- -------------------------------------------------------------------------------------------------------------------------
10,000,000 NYS DA (Mt. Sinai/NYU Health) 6.000 07/01/2026 10,116,600
- -------------------------------------------------------------------------------------------------------------------------
9,330,000 NYS DA (Mt. Sinai/NYU Health) 6.250 07/01/2022 9,474,522
- -------------------------------------------------------------------------------------------------------------------------
5,000,000 NYS DA (School District Financing) 5.750 10/01/2030 5,520,800
- -------------------------------------------------------------------------------------------------------------------------
4,000,000 NYS DA (SS Joachim & Anne Residence) 5.250 07/01/2027 4,044,440
- -------------------------------------------------------------------------------------------------------------------------
35,000 NYS DA (St. Joseph's Hospital Health Center) 5.250 07/01/2018 36,979
- -------------------------------------------------------------------------------------------------------------------------
80,000 NYS DA (St. Vincent's Hospital & Medical Center) 7.375 08/01/2011 80,394
- -------------------------------------------------------------------------------------------------------------------------
13,090,000 NYS DA (State University Educational Facilities) 5.250 05/15/2015 14,682,922
- -------------------------------------------------------------------------------------------------------------------------
2,510,000 NYS DA (State University Educational Facilities) 5.250 05/15/2021 2,745,287
- -------------------------------------------------------------------------------------------------------------------------
5,000,000 NYS DA (Upstate Community College) 5.000 07/01/2028 5,071,800
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 NYS DA (Winthrop University Hospital) 5.500 07/01/2023 1,035,400
- -------------------------------------------------------------------------------------------------------------------------
85,000 NYS EFC (NYS Water Services) 6.600 09/15/2012 86,220
- -------------------------------------------------------------------------------------------------------------------------
20,000 NYS EFC (NYS Water Services) 7.200 03/15/2011 20,097
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 NYS ERDA (NIMO) 6.625 10/01/2013 1,567,350
- -------------------------------------------------------------------------------------------------------------------------
5,470,000 NYS HFA RITES i 10.898 r 11/01/2015 6,267,635
- -------------------------------------------------------------------------------------------------------------------------
25,000 NYS LGAC, Series C 5.000 04/01/2021 25,664
- -------------------------------------------------------------------------------------------------------------------------
45,000 NYS Medcare (Hospital & Nursing Home) 5.400 08/15/2033 45,488
- -------------------------------------------------------------------------------------------------------------------------
2,800,000 NYS Medcare (Long Term Health Care) 6.400 11/01/2014 2,839,564
- -------------------------------------------------------------------------------------------------------------------------
80,000 NYS Medcare (St. Luke's Hospital) 5.625 08/15/2018 81,858
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 NYS UDC (Correctional Facilities) 5.250 01/01/2021 1,028,910
- -------------------------------------------------------------------------------------------------------------------------
3,000,000 NYS UDC (Personal Income Tax) 5.125 03/15/2027 3,061,830
- -------------------------------------------------------------------------------------------------------------------------
1,750,000 NYS UDC RITES i 16.034 r 03/15/2025 1,863,260
- -------------------------------------------------------------------------------------------------------------------------
100,000 Oneida County IDA (Mohawk Valley
Handicapped Services) 5.300 03/15/2019 103,158
- -------------------------------------------------------------------------------------------------------------------------
55,000 Onondaga County IDA (Salina Free Library) 5.500 12/01/2022 56,545
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Orange County IDA (Glen Arden) 5.625 01/01/2018 882,220
- -------------------------------------------------------------------------------------------------------------------------
275,000 Orange County IDA (Glen Arden) 5.700 01/01/2028 226,086
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 Otsego County IDA (Hartwick College) 5.900 07/01/2022 1,551,615
- -------------------------------------------------------------------------------------------------------------------------
8,880,000 Port Authority NY/NJ (Delta Air Lines) 6.950 06/01/2008 8,929,994
- -------------------------------------------------------------------------------------------------------------------------
2,475,000 Rensselaer County Tobacco Asset Securitization Corp. 5.625 06/01/2035 2,175,080
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Rensselaer County Tobacco Asset Securitization Corp. 5.750 06/01/2043 1,765,600
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Rockland County Tobacco Asset Securitization Corp. 5.625 08/15/2035 878,600
- -------------------------------------------------------------------------------------------------------------------------
3,150,000 Rockland County Tobacco Asset Securitization Corp. 5.750 08/15/2043 2,780,442
- -------------------------------------------------------------------------------------------------------------------------
2,500,000 Saratoga County IDA (Saratoga Hospital) 5.125 12/01/2033 2,537,450
12 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
Principal Market Value
Amount Coupon Maturity See Note 1
- -------------------------------------------------------------------------------------------------------------------------
New York Continued
$10,000,000 SONYMA, Series 29 RITES 9.300% r 10/01/2024 $ 10,163,200
- -------------------------------------------------------------------------------------------------------------------------
250,000 SONYMA, Series 83 5.550 10/01/2027 259,033
- -------------------------------------------------------------------------------------------------------------------------
150,000 Suffolk County IDA (Dowling College) 6.625 06/01/2024 148,155
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 Suffolk County IDA (Jefferson's Ferry) 7.200 11/01/2019 1,571,835
- -------------------------------------------------------------------------------------------------------------------------
100,000 Syracuse IDA (Crouse Irving Companies) 5.250 01/01/2017 102,263
- -------------------------------------------------------------------------------------------------------------------------
25,000 Triborough Bridge & Tunnel Authority 5.000 01/01/2020 26,089
- -------------------------------------------------------------------------------------------------------------------------
15,000 Triborough Bridge & Tunnel Authority 5.250 01/01/2028 16,657
- -------------------------------------------------------------------------------------------------------------------------
3,585,000 Triborough Bridge & Tunnel Authority RITES i 15.931 r 11/15/2032 3,725,532
- -------------------------------------------------------------------------------------------------------------------------
2,560,000 Triborough Bridge & Tunnel Authority RITES i 15.945 r 11/15/2027 2,697,984
- -------------------------------------------------------------------------------------------------------------------------
10,000,000 Triborough Bridge & Tunnel Authority RITES i 15.945 r 11/15/2032 10,392,000
- -------------------------------------------------------------------------------------------------------------------------
4,550,000 Triborough Bridge & Tunnel Authority RITES i 16.431 r 11/15/2029 4,948,216
- -------------------------------------------------------------------------------------------------------------------------
2,500,000 Triborough Bridge & Tunnel Authority RITES i 17.034 r 11/15/2023 3,059,500
- -------------------------------------------------------------------------------------------------------------------------
260,000 TSASC, Inc. (TFABs) 5.500 07/15/2013 247,900
- -------------------------------------------------------------------------------------------------------------------------
2,255,000 TSASC, Inc. (TFABs) 5.500 07/15/2024 2,003,117
- -------------------------------------------------------------------------------------------------------------------------
93,930,000 TSASC, Inc. (TFABs) 5.750 07/15/2032 84,969,078
- -------------------------------------------------------------------------------------------------------------------------
100,000 TSASC, Inc. (TFABs) 6.000 07/15/2018 98,832
- -------------------------------------------------------------------------------------------------------------------------
15,000 TSASC, Inc. (TFABs) 6.000 07/15/2019 14,818
- -------------------------------------------------------------------------------------------------------------------------
100,000 TSASC, Inc. (TFABs) 6.000 07/15/2019 99,134
- -------------------------------------------------------------------------------------------------------------------------
25,000 TSASC, Inc. (TFABs) 6.000 07/15/2020 24,391
- -------------------------------------------------------------------------------------------------------------------------
150,000 TSASC, Inc. (TFABs) 6.000 07/15/2021 144,666
- -------------------------------------------------------------------------------------------------------------------------
1,190,000 TSASC, Inc. (TFABs) 6.250 07/15/2027 1,156,180
- -------------------------------------------------------------------------------------------------------------------------
15,350,000 TSASC, Inc. (TFABs) 6.250 07/15/2034 14,869,852
- -------------------------------------------------------------------------------------------------------------------------
410,000 TSASC, Inc. (TFABs) 6.375 07/15/2039 403,702
- -------------------------------------------------------------------------------------------------------------------------
325,000 Ulster County IDA (Benedictine Hospital) 6.400 06/01/2014 315,042
- -------------------------------------------------------------------------------------------------------------------------
1,950,000 Ulster County IDA (Benedictine Hospital) 6.450 06/01/2024 1,797,627
- -------------------------------------------------------------------------------------------------------------------------
155,000 United Nations Devel. Corp., Series B 5.600 07/01/2026 155,085
- -------------------------------------------------------------------------------------------------------------------------
3,000,000 Utica IDA (Utica College Civic Facility) 5.750 08/01/2028 2,890,410
- -------------------------------------------------------------------------------------------------------------------------
1,250,000 Utica IDA (Utica College Civic Facility) 6.750 12/01/2021 1,262,200
- -------------------------------------------------------------------------------------------------------------------------
175,000 Westchester County Healthcare Corp. 6.000 11/01/2030 185,080
- -------------------------------------------------------------------------------------------------------------------------
500,000 Westchester County IDA (Kendal on Hudson) 6.500 01/01/2034 500,865
- -------------------------------------------------------------------------------------------------------------------------
1,965,000 Westchester County IDA (Rippowam-Cisqua School) 5.750 06/01/2029 2,002,610
- -------------------------------------------------------------------------------------------------------------------------
55,000 Yonkers IDA (Community Devel. Properties) 6.625 02/01/2026 58,264
--------------
549,850,441
- -------------------------------------------------------------------------------------------------------------------------
U.S. Possessions--7.5%
45,000 Guam Airport Authority, Series A 6.500 10/01/2023 45,939
- -------------------------------------------------------------------------------------------------------------------------
8,375,000 Guam GO, Series A 5.400 11/15/2018 7,820,156
- -------------------------------------------------------------------------------------------------------------------------
1,085,000 Guam GO, Series A 6.000 09/01/2006 1,079,933
- -------------------------------------------------------------------------------------------------------------------------
5,250,000 Guam Power Authority, Series A 5.125 10/01/2029 5,400,097
- -------------------------------------------------------------------------------------------------------------------------
10,000,000 Guam Power Authority, Series A 5.250 10/01/2034 10,394,500
- -------------------------------------------------------------------------------------------------------------------------
5,100,000 Puerto Rico Children's Trust Fund (TASC) 5.625 05/15/2043 4,509,777
- -------------------------------------------------------------------------------------------------------------------------
3,720,000 Puerto Rico Highway & Transportation
Authority, Series D 5.250 07/01/2038 3,791,573
- -------------------------------------------------------------------------------------------------------------------------
4,305,000 Puerto Rico ITEMECF
(Polytechnic University of Puerto Rico) 5.000 08/01/2022 4,376,980
- -------------------------------------------------------------------------------------------------------------------------
3,950,000 Puerto Rico Public Finance Corp., Series E 5.500 08/01/2029 4,128,184
13 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount Coupon Maturity See Note 1
- -------------------------------------------------------------------------------------------------------------------------
U.S. Possessions Continued
$ 1,485,000 V.I. Public Finance Authority, Series A 5.500% 10/01/2022 $ 1,500,890
- -------------------------------------------------------------------------------------------------------------------------
250,000 V.I. Water & Power Authority 5.300 07/01/2018 250,498
--------------
43,298,527
- -------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $583,306,864)--102.4% 593,148,968
- -------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets--(2.4) (13,655,899)
----------------------------------------------
Net Assets--100.0% $579,493,069
==============================================
Footnotes to Statement of Investments
i. Identifies issues considered to be illiquid. See Note 5 of Notes to Financial
Statements.
r. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.
u. Issuer is in default. See Note 1 of Notes to Financial Statements.
To simplify the listings of securities, abbreviations are used per the table
below:
ACDS Association for Children with Down Syndrome
ALIA Alliance of Long Island Agencies
AP Advantage Planning, Inc.
CMA Community Mainstreaming Associates, Inc.
COP Certificates of Participation
CSMR Community Services for the Mentally Retarded
DA Dormitory Authority
EFC Environmental Facilities Corp.
EFLI Epilepsy Foundation of L.I., Inc.
ERDA Energy Research and Development Authority
GO General Obligation
HAII Homes Anew II, Inc.
HDC Housing Development Corp.
HFA Housing Finance Agency
HJDOI Hospital for Joint Diseases Orthopaedic Institute
HJDOI Hospital for Joint Diseases Orthopaedic Institute
IDA Industrial Development Agency
ITEMECF Industrial, Tourist, Educational, Medical and Environmental
Community Facilities
LGAC Local Government Assistance Corp.
L.I. Long Island
MSH/NYU Mount Sinai Hospital/New York University
MTA Metropolitan Transportation Authority
NCMRS Nassau Community Mental Retardation Services Co.
NIMO Niagara Mohawk Power Corporation
NY/NJ New York/New Jersey
NYC New York City
NYS New York State
RIBS Residual Interest Bonds
RIT Rochester Institute of Technology
RITES Residual Interest Tax Exempt Security
SONYMA State of New York Mortgage Agency
TASC Tobacco Settlement Asset-Backed Bonds
TFABs Tobacco Flexible Amortization Bonds
UDC Urban Development Corp.
V.I. United States Virgin Islands
YMCA Young Men's Christian Association
14 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
Distribution of investments by industry of issue, as a percentage of total
investments at value, is as follows:
Industry Market Value Percent
- --------------------------------------------------------------------------
Tobacco Settlements $149,257,826 25.2%
Higher Education 86,977,250 14.7
Not-for-Profit Organization 72,859,970 12.3
Highways/Railways 46,960,851 7.9
Hospital/Health Care 43,925,727 7.4
Electric Utilities 33,240,046 5.6
General Obligation 32,104,070 5.4
Education 27,469,599 4.6
Adult Living Facilities 24,956,637 4.2
Water Utilities 18,565,910 3.1
Multifamily Housing 14,287,493 2.4
Sales Tax Revenue 10,579,828 1.8
Single Family Housing 10,422,233 1.8
Municipal Leases 9,374,117 1.6
Airlines 8,929,994 1.5
Resource Recovery 2,623,900 0.4
Hotels, Restaurants & Leisure 295,417 0.1
Special Assessment 155,085 --
Sewer Utilities 86,220 --
Marine/Aviation Facilities 45,939 --
Parking Fee Revenue 30,856 --
------------------------------
Total $593,148,968 100.0%
==============================
- --------------------------------------------------------------------------
Summary of Ratings September 30, 2003 / Unaudited
- --------------------------------------------------------------------------
Distribution of investments by rating category, as a percentage of total
investments at value, is as follows:
Ratings Percent
- --------------------------------------------------------------------------
AAA 12.5%
AA 15.4
A 26.7
BBB 20.6
BB 9.8
B 1.5
CCC 0.0
CC 0.0
C 0.0
D 0.0
Not Rated 13.5
-------
Total 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.
15 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF ASSETS AND LIABILITIES September 30, 2003
- ------------------------------------------------------------------------------------------------------------
Assets
Investments, at value (cost $583,306,864)--see accompanying statement $593,148,968
- ------------------------------------------------------------------------------------------------------------
Cash 546,490
- ------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 10,289,408
Investments sold 1,047,344
Shares of beneficial interest sold 351,628
Other 1,539
--------------
Total assets 605,385,377
- ------------------------------------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Notes payable to bank (interest rate 1.75% at September 30, 2003) 23,800,000
Shares of beneficial interest redeemed 899,586
Dividends 529,572
Distribution and service plan fees 331,032
Trustees' compensation 111,309
Shareholder reports 106,316
Transfer and shareholder servicing agent fees 36,688
Other 77,805
--------------
Total liabilities 25,892,308
- ------------------------------------------------------------------------------------------------------------
Net Assets $579,493,069
==============
- ------------------------------------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of beneficial interest $ 47,061
- ------------------------------------------------------------------------------------------------------------
Additional paid-in capital 574,180,991
- ------------------------------------------------------------------------------------------------------------
Undistributed net investment income 869,948
- ------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (5,447,035)
- ------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 9,842,104
--------------
Net Assets $579,493,069
==============
16 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- --------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$533,563,023 and 43,331,753 shares of beneficial interest outstanding) $12.31
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $12.92
- --------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $32,850,522
and 2,666,976 shares of beneficial interest outstanding) $12.32
- --------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $13,079,524
and 1,062,014 shares of beneficial interest outstanding) $12.32
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF OPERATIONS For the Year Ended September 30, 2003
- --------------------------------------------------------------------------------
Investment Income
Interest $ 37,604,108
- --------------------------------------------------------------------------------
Expenses
Management fees 3,109,306
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,218,583
Class B 360,217
Class C 118,449
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 313,980
Class B 24,193
Class C 9,457
- --------------------------------------------------------------------------------
Interest expense 243,129
- --------------------------------------------------------------------------------
Shareholder reports 188,468
- --------------------------------------------------------------------------------
Custodian fees and expenses 35,152
- --------------------------------------------------------------------------------
Trustees' compensation 21,474
- --------------------------------------------------------------------------------
Other 95,262
--------------
Total expenses 5,737,670
Less reimbursement of management fees (45,159)
Less reduction of custodian expenses (8,579)
--------------
Net expenses 5,683,932
- --------------------------------------------------------------------------------
Net Investment Income 31,920,176
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain on investments 3,976,493
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments (24,736,955)
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 11,159,714
==============
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended September 30, 2003 2002
- -----------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 31,920,176 $ 30,974,320
- -----------------------------------------------------------------------------------------------------------
Net realized gain 3,976,493 4,521,259
- -----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (24,736,955) (1,793,435)
----------------------------------
Net increase in net assets resulting from operations 11,159,714 33,702,144
- -----------------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (29,702,221) (27,928,216)
Class B (1,724,048) (1,907,404)
Class C (566,285) (416,916)
- -----------------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A 16,406,594 2,465,308
Class B (6,602,592) (5,695,177)
Class C 2,897,386 2,266,607
- -----------------------------------------------------------------------------------------------------------
Net Assets
Total increase (decrease) (8,131,452) 2,486,346
- -----------------------------------------------------------------------------------------------------------
Beginning of period 587,624,521 585,138,175
----------------------------------
End of period [including undistributed net investment
income of $869,948 and $942,326, respectively] $579,493,069 $587,624,521
==================================
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FINANCIAL HIGHLIGHTS
Class A Year Ended September 30 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 12.75 $ 12.67 $ 12.15 $ 12.24 $ 13.17
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .71 .68 .67 .64 .64
Net realized and unrealized gain (loss) (.44) .06 .50 (.09) (.94)
-----------------------------------------------------------
Total from investment operations .27 .74 1.17 .55 (.30)
- -----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.71) (.66) (.65) (.64) (.63)
Distributions from net realized gain -- -- -- -- 1 --
-----------------------------------------------------------
Total dividends and/or distributions
to shareholders (.71) (.66) (.65) (.64) (.63)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.31 $12.75 $12.67 $12.15 $12.24
===========================================================
- -----------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 2.07% 6.11% 9.77% 4.78% (2.36)%
- -----------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $533,563 $536,126 $530,464 $509,288 $575,254
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $531,977 $525,519 $526,333 $529,839 $603,604
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.57% 5.44% 5.30% 5.45% 5.04%
Total expenses 0.93% 4,5 0.89% 4 0.84% 4 0.89% 4 0.88% 4
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63% 73% 10% 26% 18%
1. Less than $0.005 per share.
2. 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.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of management fees less than 0.01%.
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
Class B Year Ended September 30 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 12.75 $ 12.68 $ 12.16 $ 12.25 $ 13.18
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .60 .58 .56 .53 .54
Net realized and unrealized gain (loss) (.42) .06 .51 (.07) (.94)
------------------------------------------------------
Total from investment operations .18 .64 1.07 .46 (.40)
- -----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.61) (.57) (.55) (.55) (.53)
Distributions from net realized gain -- -- -- -- 1 --
------------------------------------------------------
Total dividends and/or distributions
to shareholders (.61) (.57) (.55) (.55) (.53)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.32 $12.75 $12.68 $12.16 $12.25
======================================================
- -----------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 1.36% 5.22% 8.94% 3.98% (3.11)%
- -----------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $32,851 $40,896 $46,422 $49,671 $78,526
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $36,000 $42,021 $48,115 $60,299 $98,597
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.77% 4.67% 4.53% 4.68% 4.25%
Total expenses 1.71% 4,5 1.66% 4 1.61% 4 1.67% 4 1.65% 4
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63% 73% 10% 26% 18%
1. Less than $0.005 per share.
2. 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.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of management fees less than 0.01%.
See accompanying Notes to Financial Statements.
21 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FINANCIAL HIGHLIGHTS Continued
Class C Year Ended September 30 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 12.75 $ 12.68 $ 12.15 $ 12.24 $ 13.17
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .60 .57 .56 .56 .56
Net realized and unrealized gain (loss) (.42) .07 .52 (.10) (.96)
---------------------------------------------------------------
Total from investment operations .18 .64 1.08 .46 (.40)
- -------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.61) (.57) (.55) (.55) (.53)
Distributions from net realized gain -- -- -- -- 1 --
---------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.61) (.57) (.55) (.55) (.53)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.32 $12.75 $12.68 $12.15 $12.24
===============================================================
- -------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 1.35% 5.22% 9.03% 3.97% (3.11)%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $13,080 $10,603 $8,251 $5,954 $6,450
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $11,852 $ 9,183 $6,979 $6,121 $6,622
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.78% 4.66% 4.51% 4.68% 4.26%
Total expenses 1.72% 4,5 1.66% 4 1.61% 4 1.66% 4 1.65% 4
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63% 73% 10% 26% 18%
1. Less than $0.005 per share.
2. 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.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of management fees less than 0.01%.
See accompanying Notes to Financial Statements.
22 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer AMT-Free New York Municipals (the Fund), formerly Oppenheimer New
York Municipal Fund, is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. The Funds investment
objective is to seek the maximum current income exempt from federal, New York
State and New York City income taxes for individual investors 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).
- --------------------------------------------------------------------------------
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 $54,486,672 as of September 30, 2003.
Including the effect of leverage, inverse floaters represent 18.95% of the
Fund's total assets as of September 30, 2003.
23 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
Security Credit Risk. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed-income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default. As of September 30, 2003, securities with an
aggregate market value of $2,463,989, representing 0.43% of the Fund's net
assets, were in default.
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 securities and other investments
for federal income tax purposes.
Net Unrealized
Appreciation
Based on Cost of
Securities and
Undistributed Undistributed Accumulated Other Investments
Net Investment Long-Term Loss for Federal Income
Income Gain Carryforward 1,2 Tax Purposes
---------------------------------------------------------------------------
$1,174,885 $-- $1,850,927 $6,245,989
1. As of September 30, 2003, the Fund had $1,850,927 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of September 30, 2003,
details of the capital loss carryforward were as follows:
Expiring
----------------------
2009 $1,850,927
2. During the fiscal years ended September 30, 2003 and September 30, 2002, the
Fund utilized $2,846,086 and $3,377,482, respectively, of capital loss
carryforwards to offset capital gains realized in the respective fiscal years.
24 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
The tax character of distributions paid during the years ended September 30,
2003 and September 30, 2002 was as follows:
Year Ended Year Ended
September 30, 2003 September 30, 2002
------------------------------------------------------------------
Distributions paid from:
Exempt-interest dividends $31,992,554 $30,252,536
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments
for federal income tax purposes as of September 30, 2003 are noted below. The
primary difference between book and tax appreciation or depreciation of
securities and other investments, if applicable, is attributable to the tax
deferral of losses or tax realization of financial statement unrealized gain or
loss.
Federal tax cost of securities
and other investments $586,902,979
============
Gross unrealized appreciation $ 15,486,758
Gross unrealized depreciation (9,240,769)
------------
Net unrealized appreciation $ 6,245,989
============
- --------------------------------------------------------------------------------
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
September 30, 2003, the Fund's projected benefit obligations were increased by
$359 and payments of $11,789 were made to retired trustees, resulting in an
accumulated liability of $105,797 as of September 30, 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.
- --------------------------------------------------------------------------------
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
25 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
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 $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
Year Ended September 30, 2003 Year Ended September 30, 2002
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------
Class A
Sold 5,818,730 $ 71,829,097 3,479,772 $ 43,555,176
Dividends and/or
distributions reinvested 1,668,859 20,587,368 1,461,383 18,313,181
Redeemed (6,201,237) (76,009,871) (4,747,937) (59,403,049)
---------------------------------------------------------------------
Net increase 1,286,352 $ 16,406,594 193,218 $ 2,465,308
=====================================================================
- ----------------------------------------------------------------------------------------------------
Class B
Sold 709,641 $ 8,780,005 730,570 $ 9,150,679
Dividends and/or
distributions reinvested 98,823 1,220,174 99,794 1,251,055
Redeemed (1,347,750) (16,602,771) (1,285,667) (16,096,911)
---------------------------------------------------------------------
Net decrease (539,286) $ (6,602,592) (455,303) $ (5,695,177)
=====================================================================
- ----------------------------------------------------------------------------------------------------
Class C
Sold 453,368 $ 5,622,411 278,896 $ 3,497,987
Dividends and/or
distributions reinvested 31,731 391,119 21,696 271,877
Redeemed (254,461) (3,116,144) (120,092) (1,503,257)
---------------------------------------------------------------------
Net increase 230,638 $ 2,897,386 180,500 $ 2,266,607
=====================================================================
- --------------------------------------------------------------------------------
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 September 30, 2003, were
$376,382,104 and $373,421,223, respectively.
26 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- --------------------------------------------------------------------------------
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 an
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.
Effective September 1, 2003, the Manager voluntarily agreed to waive a
portion of its advisory fee at an annual rate equal to 0.10% of each class's
average daily net assets while the Fund's trailing one-year performance at the
end of the preceding calendar quarter is in the fifth quintile of the Fund's
Lipper peer group. The Manager will voluntarily waive a portion of its advisory
fee at an annual rate equal to 0.05% of each class's average daily net assets
while the Fund's trailing one-year performance at the end of the preceding
calendar quarter is in the fourth quintile of the Fund's Lipper peer group. The
foregoing advisory fee waiver automatically terminates while the Fund's
trailing one-year performance at the end of the preceding calendar quarter is
in the first, second or third quintile of the Fund's Lipper peer group. The
foregoing waiver 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 September 30, 2003, the
Fund paid $369,303 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
- ---------------------------------------------------------------------------------------------------------------------
September 30, 2003 $449,336 $206,771 $573,956 $297,722 $45,734
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.
27 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
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
- --------------------------------------------------------------------------------
September 30, 2003 $11,400 $115,811 $7,800
- --------------------------------------------------------------------------------
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 0.25% of the average annual net assets of
Class A shares of the Fund. For the year ended September 30, 2003, expense
under the Class A Plan totaled $1,218,583, all of which were paid by the
Distributor to recipients, which included $899,488 retained by the Distributor
and $21,109 which was 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.
- --------------------------------------------------------------------------------
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 0.25% per year under each plan.
Distribution fees paid to the Distributor for the year ended September 30,
2003, were as follows:
Distributor's
Distributor's Aggregate
Aggregate Uncompensated
Uncompensated Expenses as %
Total Expenses Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- ---------------------------------------------------------------------------------------------------
Class B Plan $360,217 $350,387 $1,561,276 4.75%
Class C Plan 118,449 30,638 220,009 1.68
- --------------------------------------------------------------------------------
5. Illiquid Securities
As of September 30, 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
September 30, 2003 was $39,035,672, which represents 6.74% of the Fund's net
assets.
28 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- --------------------------------------------------------------------------------
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 $23,800,000 at September 30, 2003 at
an interest rate of 1.75%. For the year ended September 30, 2003, the average
monthly loan balance was $12,945,726 at an average interest rate of 1.863%. The
Fund had gross borrowings and gross loan repayments of $288,200,000 and
$264,400,000, respectively, during the year ended September 30, 2003. The
maximum amount of borrowings outstanding at any month-end was $31,000,000. The
Fund paid commitment fees of $1,572 and interest of $240,400, during the year
ended September 30, 2003.
29 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of
Oppenheimer AMT-Free New York Municipals:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer AMT-Free New York Municipals, formerly Oppenheimer New York
Municipal Fund, including the statement of investments, as of September 30,
2003, and the related statement of operations 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 September 30, 2003, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer AMT-Free New York Municipals as of September 30, 2003, the results
of its operations 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
October 21, 2003
30 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding any taxable 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 September 30,
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.
31 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
Name, Position(s) Held Principal Occupation(s) During Past 5 Years;
with Fund, Length of Other Trusteeships/Directorships Held by
Service, Age Trustee; Number of Portfolios in Fund Complex
Currently Overseen by Trustee
INDEPENDENT TRUSTEES The address of each Trustee in the chart below
is 6803 S. Tucson Way, Centennial, CO
80112-3924. Each Trustee oversees 25 portfolios
in the OppenheimerFunds complex except for Mr.
Galli who also serves as trustee of 10 other
Oppenheimer funds that are not Board I funds.
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 1991) 2002); formerly a director of Caterpillar, Inc.
Age: 72 (1993-December 2002).
Robert G. Galli, A trustee or director of other Oppenheimer
Trustee (since 1996) funds. Formerly Trustee (May 2000-2002) of
Age: 70 Research Foundation of AIMR (investment
research, non-profit) and Vice Chairman (October
1995-December 1997) of OppenheimerFunds, Inc.
(the Manager).
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).
Joel W. Motley, Director (since 2002) Columbia Equity Financial
Trustee (since 2002) Corp. (privately-held financial adviser);
Age: 51 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).
Kenneth A. Randall, A director of Dominion Resources, Inc. (electric
Trustee (since 1984) 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.
Edward V. Regan, President, Baruch College, CUNY; a director of
Trustee (since 1993) 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.
Russell S. Reynolds, Jr., Chairman (since 1993) of The Directorship Search
Trustee (since 1989) 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.
32 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
Donald W. Spiro, Chairman Emeritus (since January 1991) of the
Vice Chairman of the Manager. Formerly a director (January
Board of Trustees, 1969-August 1999) of the Manager.
Trustee (since 1985)
Age: 77
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE AND OFFICER The address of Mr. Murphy in the chart below is
Two World Financial Center, New York, NY 10080.
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
Age: 54 or 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 83 portfolios in the
OppenheimerFunds complex.
- --------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart below
is as follows: for Mr. Zack, Two World Financial
Center, New York, NY 10080, for Mr. Wixted, 6803
S. Tucson Way, Centennial, CO 80112-3924, for
Mr. Fielding, 350 Linden Oaks, Rochester, NY
14625. Each Officer, except Fielding, oversees
83 portfolios in the OppenheimerFunds complex.
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
Vice President (since 2002) the Manager; Chairman of the Rochester Division
Age: 54 of the Manager (since January 1996); an officer
of 9 portfolios in the OppenheimerFunds complex.
33 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
TRUSTEES AND OFFICERS Unaudited / Continued
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,
Shareholder Financial Services, Inc.,
Oppenheimer Partnership Holdings, Inc., OFI
Private Investments, Inc. (since March 2000),
OppenheimerFunds International Ltd. and
OppenheimerFunds plc (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.
Robert G. Zack, Senior Vice President (since May 1985) and
Secretary (since 2001) General Counsel (since February 2002) of the
Age: 55 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).
The Fund's Statement of Additional Information contains additional information
about the Fund's Trustees and is available without charge upon request.
34 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
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 September 30, 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)