UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-5867
Oppenheimer Rochester National 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.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: July 31
Date of reporting period: August 1, 2003 - January 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS January 31, 2004 / Unaudited
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PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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MUNICIPAL BONDS AND NOTES--104.0%
- ------------------------------------------------------------------------------------------------------------------------------
ALABAMA--1.2%
$ 180,000 AL IDA Solid Waste Disposal (Pine City Fiber Company) 6.450% 12/01/2023 $ 178,906
- ------------------------------------------------------------------------------------------------------------------------------
7,750,000 Butler, AL IDB (James River Corp. of VA) 8.000 09/01/2028 7,968,008
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2,350,000 Huntsville, AL Special Care Facilities Financing Authority
(Carlton Cove) 8.125 11/15/2031 1,296,918
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2,250,000 Rainbow City, AL Special Health Care Facilities
Financing Authority (Regency Pointe) 8.250 01/01/2031 2,197,575
-------------
11,641,407
- ------------------------------------------------------------------------------------------------------------------------------
ALASKA--0.0%
155,000 AK Northern Tobacco Securitization Corp. (TASC) 5.500 06/01/2029 136,290
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ARIZONA--1.0%
7,000,000 AZ Health Facilities Authority (American Baptist Estates) 7.750 11/15/2033 7,033,110
- ------------------------------------------------------------------------------------------------------------------------------
1,355,000 Gila County, AZ IDA (Asarco, Inc.) 5.550 01/01/2027 883,040
- ------------------------------------------------------------------------------------------------------------------------------
55,000 Maricopa County, AZ IDA (Sun King Apartments) 6.750 11/01/2018 47,479
- ------------------------------------------------------------------------------------------------------------------------------
440,000 Maricopa County, AZ IDA (Sun King Apartments) 6.750 05/01/2031 353,654
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2,000,000 Phoenix, AZ IDA (America West Airlines) 6.250 06/01/2019 1,639,440
-------------
9,956,723
- ------------------------------------------------------------------------------------------------------------------------------
ARKANSAS--0.0%
20,000 Little River County, AR (Georgia-Pacific Corp.) 5.600 10/01/2026 18,208
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5,000 Pope County, AR Pollution Control
(Arkansas Power & Light Company) 6.300 11/01/2020 5,004
-------------
23,212
- ------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--9.6%
5,000,000 CA CDA (East Valley Tourist) 9.250 10/01/2020 5,111,900
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19,000,000 CA CDA (East Valley Tourist) 11.000 10/01/2020 19,109,250
- ------------------------------------------------------------------------------------------------------------------------------
3,000,000 CA CDA (Elder Care Alliance) 8.250 11/15/2032 2,973,330
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680,000 CA County Tobacco Securitization Agency (TASC) 5.750 06/01/2029 634,120
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595,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2035 524,998
- ------------------------------------------------------------------------------------------------------------------------------
1,425,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2038 1,276,316
- ------------------------------------------------------------------------------------------------------------------------------
15,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2042 13,394
- ------------------------------------------------------------------------------------------------------------------------------
5,000 CA EFA (Loyola University) 6.000 10/01/2014 5,017
- ------------------------------------------------------------------------------------------------------------------------------
3,625,000 CA Golden State Tobacco Securitization Corp. 6.250 06/01/2033 3,536,659
- ------------------------------------------------------------------------------------------------------------------------------
3,500,000 CA Golden State Tobacco Securitization Corp. 6.625 06/01/2040 3,401,405
- ------------------------------------------------------------------------------------------------------------------------------
7,085,000 CA Golden State Tobacco Securitization Corp. 6.750 06/01/2039 6,957,895
- ------------------------------------------------------------------------------------------------------------------------------
6,800,000 CA Golden State Tobacco Securitization Corp. RITES i 17.798 r 06/01/2043 7,957,360
- ------------------------------------------------------------------------------------------------------------------------------
20,000 CA Health Facilities Financing Authority
(Small Facilities Loan), Series A 6.700 03/01/2011 20,048
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5,000,000 CA Valley Health System COP 6.875 05/15/2023 3,997,300
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1,535,000 Lathrop, CA Special Tax Community Facilities
District No. 03-2 7.000 09/01/2033 1,551,240
</Table>
9 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 19,000,000 Los Angeles, CA Regional Airports Improvement Corp.
(American Airlines) 7.500% 12/01/2024 $ 18,951,550
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7,025,000 Los Angeles, CA Regional Airports Improvement Corp.
(Delta-Continental Airlines) 9.250 08/01/2024 7,228,514
- ------------------------------------------------------------------------------------------------------------------------------
2,330,000 Northern CA Tobacco Securitization Authority (TASC) 5.375 06/01/2041 1,895,735
- ------------------------------------------------------------------------------------------------------------------------------
120,000 Northern CA Tobacco Securitization Authority (TASC),
Series B 5.000 06/01/2028 107,628
- ------------------------------------------------------------------------------------------------------------------------------
5,000,000 Southern CA Tobacco Securitization Authority (TASC) 5.500 06/01/2036 4,459,450
- ------------------------------------------------------------------------------------------------------------------------------
5,050,000 Southern CA Tobacco Securitization Authority (TASC) 5.625 06/01/2043 4,271,442
- ------------------------------------------------------------------------------------------------------------------------------
1,255,000 Southern CA Tobacco Securitization Authority (TASC) 6.000 06/01/2043 1,112,445
-------------
95,096,996
- ------------------------------------------------------------------------------------------------------------------------------
COLORADO--0.7%
7,000,000 Lincoln Park, CO Metropolitan District 7.750 12/01/2026 7,390,670
- ------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA--1.5%
10,165,000 District of Columbia Tobacco Settlement Financing Corp. 6.750 05/15/2040 9,981,318
- ------------------------------------------------------------------------------------------------------------------------------
4,575,000 Metropolitan Washington, D.C. Airport Authority ROLs i 17.460 r 10/01/2032 5,149,529
-------------
15,130,847
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FLORIDA--9.0%
7,625,000 Bonnet Creek, FL Resort Community Devel.
District Special Assessment 7.500 05/01/2034 8,106,976
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 Dade County, FL IDA (Miami Cerebral Palsy Residence) 8.000 06/01/2022 2,046,520
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Fishhawk, FL Community Devel. District Special Assessment 7.625 05/01/2018 1,066,530
- ------------------------------------------------------------------------------------------------------------------------------
8,410,000 FL Capital Projects Finance Authority CCRC
(Glenridge on Palmer Ranch) 8.000 06/01/2032 8,633,790
- ------------------------------------------------------------------------------------------------------------------------------
720,000 FL Capital Trust Agency (American Opportunity) 8.250 12/01/2038 694,483
- ------------------------------------------------------------------------------------------------------------------------------
9,000,000 FL Capital Trust Agency (Seminole Tribe Convention) 8.950 10/01/2033 10,592,010
- ------------------------------------------------------------------------------------------------------------------------------
3,800,000 FL Capital Trust Agency (Seminole Tribe Convention) 10.000 10/01/2033 4,728,378
- ------------------------------------------------------------------------------------------------------------------------------
5,000,000 FL Capital Trust Agency, FL Multifamily Affordable Hsg.,
Series C 8.125 10/01/2038 4,927,900
- ------------------------------------------------------------------------------------------------------------------------------
260,000 FL HFA (Multifamily Hsg.), Series I 6.625 07/01/2028 227,620
- ------------------------------------------------------------------------------------------------------------------------------
690,000 FL HFA (Multifamily Hsg.), Series I-1 6.100 01/01/2009 679,650
- ------------------------------------------------------------------------------------------------------------------------------
1,680,000 FL HFC (Tallahassee Augustine Club Apartments) 8.250 10/01/2030 1,635,631
- ------------------------------------------------------------------------------------------------------------------------------
665,000 Grand Haven, FL Community Devel. District
Special Assessment, Series B 6.900 05/01/2019 677,702
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 Hillsborough County, FL IDA (National Gypsum Company) 7.125 04/01/2030 2,159,880
- ------------------------------------------------------------------------------------------------------------------------------
4,500,000 Jacksonville, FL Health Facilities Authority ROLs i 17.610 r 11/15/2032 5,006,610
- ------------------------------------------------------------------------------------------------------------------------------
12,810,000 Martin County, FL IDA (Indiantown Cogeneration) 7.875 12/15/2025 13,286,532
- ------------------------------------------------------------------------------------------------------------------------------
625,000 Martin County, FL IDA (Indiantown Cogeneration) 8.050 12/15/2025 648,625
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Miami Beach, FL Health Facilities Authority
(Mt. Sinai Medical Center) 6.700 11/15/2019 1,023,990
10 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
FLORIDA Continued
$ 500,000 Miami Beach, FL Health Facilities Authority
(Mt. Sinai Medical Center) 6.800% 11/15/2031 $ 509,460
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2,000,000 Miami, FL Health Facilities Authority (Mercy Hospital) IRS 9.290 r 08/15/2015 2,143,720
- ------------------------------------------------------------------------------------------------------------------------------
10,000,000 Reunion East, FL Community Devel. District, Series A 7.375 05/01/2033 10,603,400
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250,000 Sanford, FL Airport Facilities Authority
(Central Florida Terminals) 7.300 05/01/2004 245,995
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2,000,000 Sanford, FL Airport Facilities Authority
(Central Florida Terminals) 7.500 05/01/2010 1,581,080
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2,880,000 Sanford, FL Airport Facilities Authority
(Central Florida Terminals) 7.500 05/01/2015 2,171,174
- ------------------------------------------------------------------------------------------------------------------------------
500,000 Sanford, FL Airport Facilities Authority
(Central Florida Terminals) 7.500 05/01/2021 364,055
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6,625,000 Sanford, FL Airport Facilities Authority
(Central Florida Terminals) 7.750 05/01/2021 4,866,129
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980,000 Tampa Palms, FL Open Space & Transportation CDD 7.500 05/01/2018 1,021,062
--------------
89,648,902
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GEORGIA--2.3%
3,605,000 Augusta, GA Hsg. Rehabilitation Agency (Bon Air) 7.500 03/01/2014 3,648,116
- ------------------------------------------------------------------------------------------------------------------------------
370,000 Columbus, GA Hsg. Authority
(Columbus Gardens Elderly Hsg.) 8.250 01/01/2024 370,725
- ------------------------------------------------------------------------------------------------------------------------------
285,000 Fulton County, GA Devel. Authority (Delta Airlines) 5.450 05/01/2023 189,668
- ------------------------------------------------------------------------------------------------------------------------------
3,785,000 Rockdale County, GA Devel. Authority (Visy Paper) 7.400 01/01/2016 3,801,843
- ------------------------------------------------------------------------------------------------------------------------------
13,100,000 Rockdale County, GA Devel. Authority (Visy Paper) 7.500 01/01/2026 13,144,933
- ------------------------------------------------------------------------------------------------------------------------------
425,000 Savannah, GA EDA (Skidway Health & Living Services) 7.400 01/01/2024 429,892
- ------------------------------------------------------------------------------------------------------------------------------
1,700,000 Savannah, GA EDA (Skidway Health & Living Services) 7.400 01/01/2034 1,719,567
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35,000 Savannah, GA EDA (Stone Container Corp. Project) 7.400 04/01/2026 35,804
--------------
23,340,548
- ------------------------------------------------------------------------------------------------------------------------------
HAWAII--1.4%
2,125,000 HI Department of Budget & Finance RITES i 15.923 r 09/01/2032 2,278,978
- ------------------------------------------------------------------------------------------------------------------------------
8,000,000 HI Department of Budget & Finance Special Purpose
(Kahala Nui) 8.000 11/15/2033 8,010,560
- ------------------------------------------------------------------------------------------------------------------------------
3,285,000 HI Department of Transportation (Continental Airlines) 7.000 06/01/2020 3,159,644
--------------
13,449,182
- ------------------------------------------------------------------------------------------------------------------------------
ILLINOIS--5.8%
8,000,000 Centerpoint, IL Intermodal Center Program 8.000 06/15/2023 7,991,040
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750,000 Chicago, IL O'Hare International Airport
(American Airlines) 8.200 12/01/2024 622,500
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8,050,000 Chicago, IL O'Hare International Airport RITES i 19.478 r 01/01/2029 11,593,288
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 Chicago, IL O'Hare International Airport ROLs i 16.450 r 01/01/2034 2,021,400
- ------------------------------------------------------------------------------------------------------------------------------
23,500,000 IL DFA (Citgo Petroleum Corp.) 8.000 06/01/2032 25,099,175
- ------------------------------------------------------------------------------------------------------------------------------
1,500,000 IL Health Facilities Authority 6.900 11/15/2033 1,499,790
11 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
ILLINOIS Continued
$ 2,125,000 IL Health Facilities Authority RITES i 16.219% r 02/15/2025 $ 2,396,023
- ------------------------------------------------------------------------------------------------------------------------------
10,000 IL Hsg. Devel. Authority (Multifamily Hsg.), Series A 7.100 07/01/2026 10,070
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500,000 Peoria, IL Hsg. (Peoria Oak Woods Apartments) 7.750 10/15/2033 499,910
- ------------------------------------------------------------------------------------------------------------------------------
5,918,972 Robbins, IL Res Rec (Robbins Res Rec Partners) 7.250 10/15/2009 4,202,472
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 Robbins, IL Res Rec (Robbins Res Rec Partners) 7.250 10/15/2024 1,350,000
--------------
57,285,668
- ------------------------------------------------------------------------------------------------------------------------------
INDIANA--2.7%
1,690,000 IN Health Facilities Financing Authority RITES i 17.671 r 11/01/2031 1,861,636
- ------------------------------------------------------------------------------------------------------------------------------
2,500,000 IN Health Facilities Financing Authority RITES i 17.695 r 11/01/2031 2,753,900
- ------------------------------------------------------------------------------------------------------------------------------
4,800,000 Indianapolis, IN Airport (Federal Express Corp.) 7.100 01/15/2017 5,011,008
- ------------------------------------------------------------------------------------------------------------------------------
17,500,000 North Manchester, IN (Estelle Peabody Memorial Home) 7.250 07/01/2033 17,665,900
--------------
27,292,444
- ------------------------------------------------------------------------------------------------------------------------------
IOWA--2.0%
15,500,000 IA Tobacco Settlement Authority (TASC) 5.300 06/01/2025 13,392,000
- ------------------------------------------------------------------------------------------------------------------------------
6,955,000 IA Tobacco Settlement Authority (TASC), Series B 5.600 06/01/2035 6,009,676
--------------
19,401,676
- ------------------------------------------------------------------------------------------------------------------------------
KANSAS--0.1%
10,000 Burlington, KS Pollution Control
(Kansas Gas & Electric Company) 7.000 06/01/2031 10,388
- ------------------------------------------------------------------------------------------------------------------------------
1,300,000 Lenaxa, KS Multifamily Hsg. (Meadows Apartments) 7.950 10/15/2035 1,267,500
--------------
1,277,888
- ------------------------------------------------------------------------------------------------------------------------------
KENTUCKY--4.9%
5,955,000 Kenton County, KY Airport Special Facilities
(Delta Airlines) 6.125 02/01/2022 5,238,494
- ------------------------------------------------------------------------------------------------------------------------------
18,045,000 Kenton County, KY Airport Special Facilities
(Delta Airlines) 7.125 02/01/2021 17,630,506
- ------------------------------------------------------------------------------------------------------------------------------
100,000 Kenton County, KY Airport Special Facilities
(Delta Airlines) 7.250 02/01/2022 99,108
- ------------------------------------------------------------------------------------------------------------------------------
3,950,000 Kenton County, KY Airport Special Facilities
(Delta Airlines) 7.500 02/01/2012 3,949,329
- ------------------------------------------------------------------------------------------------------------------------------
12,810,000 Kenton County, KY Airport Special Facilities
(Delta Airlines) 7.500 02/01/2020 12,645,904
- ------------------------------------------------------------------------------------------------------------------------------
2,900,000 Morgantown, KY Solid Waste Disposal (Imco Recycling) 6.000 05/01/2023 2,322,668
- ------------------------------------------------------------------------------------------------------------------------------
1,200,000 Morgantown, KY Solid Waste Disposal (Imco Recycling) 7.450 05/01/2022 1,154,988
- ------------------------------------------------------------------------------------------------------------------------------
5,740,000 Morgantown, KY Solid Waste Disposal (Imco Recycling) 7.650 05/01/2016 5,625,372
--------------
48,666,369
- ------------------------------------------------------------------------------------------------------------------------------
LOUISIANA--10.6%
1,350,000 Epps, LA COP i 8.000 06/01/2018 1,346,126
- ------------------------------------------------------------------------------------------------------------------------------
3,800,000 LA CDA (Eunice Student Hsg. Foundation) 7.375 09/01/2033 3,662,782
12 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
LOUISIANA Continued
$ 920,000 LA Local Government Environmental Facilities &
Community Devel. Authority 8.500% 06/01/2038 $ 896,871
- ------------------------------------------------------------------------------------------------------------------------------
545,000 LA Local Government Environmental Facilities &
Community Devel. Authority (Sharlo Apartments) 8.000 06/20/2028 532,945
- ------------------------------------------------------------------------------------------------------------------------------
5,350,000 LA Public Facilities Authority (Progressive Healthcare) 6.375 10/01/2028 4,187,820
- ------------------------------------------------------------------------------------------------------------------------------
1,875,000 LA Public Facilities Authority ROLs i 16.600 r 05/15/2022 2,159,588
- ------------------------------------------------------------------------------------------------------------------------------
57,345,000 LA Tobacco Settlement Financing Corp. (TASC) 5.875 05/15/2039 51,783,682
- ------------------------------------------------------------------------------------------------------------------------------
8,070,000 LA Tobacco Settlement Financing Corp. (TASC), Series B 5.500 05/15/2030 7,268,810
- ------------------------------------------------------------------------------------------------------------------------------
50,000 Lake Charles, LA Non-Profit HDC Section 8 (Chateau) 7.875 02/15/2025 51,808
- ------------------------------------------------------------------------------------------------------------------------------
19,650,000 St. Charles Parish, LA (Louisiana Power & Light Company) 7.500 06/01/2021 19,976,190
- ------------------------------------------------------------------------------------------------------------------------------
7,020,000 St. Charles Parish, LA Pollution Control (Union Carbide) 7.350 11/01/2022 6,635,164
- ------------------------------------------------------------------------------------------------------------------------------
6,000,000 West Feliciana Parish, LA Pollution Control
(Gulf States Utilities Company) 9.000 05/01/2015 6,090,960
--------------
104,592,746
- ------------------------------------------------------------------------------------------------------------------------------
MAINE--0.9%
7,395,000 ME Finance Authority Solid Waste Recycling Facilities
(Great Northern Paper) 7.750 10/01/2022 7,453,125
- ------------------------------------------------------------------------------------------------------------------------------
1,675,000 ME Hsg. Authority Mtg. ROLs i 17.060 r 11/15/2022 1,859,652
--------------
9,312,777
- ------------------------------------------------------------------------------------------------------------------------------
MARYLAND--0.0%
15,000 Montgomery County, MD HOC (Multifamily Mtg.),
Series C 7.150 07/01/2023 15,095
- ------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS--0.3%
1,000,000 MA DFA (Eastern Nazarene College) 5.625 04/01/2029 755,930
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 MA GO ROLs i 16.810 r 08/01/2027 2,254,920
--------------
3,010,850
- ------------------------------------------------------------------------------------------------------------------------------
MICHIGAN--1.4%
405,000 Detroit, MI HFC (Across The Park Section 8 Elderly Hsg.) 7.875 06/01/2010 410,468
- ------------------------------------------------------------------------------------------------------------------------------
2,475,000 MI Higher Education Student Loan Authority RITES i 17.323 r 09/01/2026 2,803,383
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 MI Strategic Fund Limited Obligation
(Detroit Edison) ROLS i 18.480 r 06/01/2030 2,469,840
- ------------------------------------------------------------------------------------------------------------------------------
600,000 Wayne Charter County, MI Airport Facilities
(Northwest Airlines) 6.000 12/01/2029 501,630
- ------------------------------------------------------------------------------------------------------------------------------
5,175,000 Wayne Charter County, MI Airport Facilities
(Northwest Airlines) 6.750 12/01/2015 4,665,056
- ------------------------------------------------------------------------------------------------------------------------------
2,900,000 Wenonah Park Properties, MI (Bay City Hotel) 7.500 04/01/2033 2,785,508
--------------
13,635,885
- ------------------------------------------------------------------------------------------------------------------------------
MINNESOTA--3.0%
3,330,000 Hubbard County, MN Solid Waste (Potlatch Corp.) 7.375 08/01/2013 3,346,717
- ------------------------------------------------------------------------------------------------------------------------------
3,815,000 International Falls, MN Environmental Facilities
(Boise Cascade Corp.) 7.200 10/01/2024 3,923,575
13 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
MINNESOTA Continued
$ 1,130,000 Mahtomedi, MN Multifamily (Briarcliff) 7.350% 06/01/2036 $ 1,159,527
- ------------------------------------------------------------------------------------------------------------------------------
2,250,000 Minneapolis & St. Paul, MN Metropolitan Airports
Commission (Northwest Airlines) 6.500 04/01/2025 2,153,183
- ------------------------------------------------------------------------------------------------------------------------------
14,100,000 Minneapolis & St. Paul, MN Metropolitan Airports
Commission (Northwest Airlines) 7.000 04/01/2025 13,950,963
- ------------------------------------------------------------------------------------------------------------------------------
690,000 Rochester, MN Multifamily Hsg. (Eastridge Estates) 7.750 12/15/2034 689,903
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 St. Paul, MN Hsg. & Redevel. Authority
(Community of Peace Building Company) 7.875 12/01/2030 2,203,880
- ------------------------------------------------------------------------------------------------------------------------------
2,130,000 St. Paul, MN Hsg. & Redevel. Authority (Upper Landing) 7.000 03/01/2029 2,123,567
--------------
29,551,315
- ------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI--0.0%
320,000 Hinds County, MS Urban Renewal
(The Lodge Associates, Ltd.) 8.000 10/15/2022 191,754
- ------------------------------------------------------------------------------------------------------------------------------
MISSOURI--1.3%
2,500,000 St. Joseph, MO IDA (Living Community of St. Joseph) 7.000 08/15/2032 2,500,800
- ------------------------------------------------------------------------------------------------------------------------------
10,000,000 St. Louis, MO IDA (Kiel Center Multipurpose Arena) 7.875 12/01/2024 10,375,000
--------------
12,875,800
- ------------------------------------------------------------------------------------------------------------------------------
MONTANA--0.7%
6,800,000 MT Board of Investment Exempt Facilities
(Stillwater Mining Company) 8.000 07/01/2020 6,704,800
- ------------------------------------------------------------------------------------------------------------------------------
NEVADA--0.3%
2,065,000 Clark County, NV Industrial Development RITES i 17.723 r 12/01/2038 2,481,965
- ------------------------------------------------------------------------------------------------------------------------------
215,000 NV Hsg. Division (Single Family Mtg.), Series B 7.850 10/01/2010 216,236
--------------
2,698,201
- ------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE--0.1%
1,000,000 NH HE&H Facilities Authority (New England College) 5.750 03/01/2009 929,230
- ------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY--6.8%
2,000,000 Middlesex County, NJ Pollution Control Authority
(Amerada Hess Corp.) 7.875 06/01/2022 2,076,240
- ------------------------------------------------------------------------------------------------------------------------------
900,000 NJ EDA (Continental Airlines) 5.500 04/01/2028 627,840
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 NJ EDA (Continental Airlines) 6.400 09/15/2023 906,310
- ------------------------------------------------------------------------------------------------------------------------------
2,375,000 NJ EDA (Continental Airlines) 7.000 11/15/2030 2,276,556
- ------------------------------------------------------------------------------------------------------------------------------
3,250,000 NJ EDA Retirement Community (Cedar Crest Village) 7.250 11/15/2031 3,317,145
- ------------------------------------------------------------------------------------------------------------------------------
890,000 NJ Tobacco Settlement Financing Corp. (TASC) 5.750 06/01/2032 842,999
- ------------------------------------------------------------------------------------------------------------------------------
13,045,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.000 06/01/2037 11,697,452
- ------------------------------------------------------------------------------------------------------------------------------
25,520,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.125 06/01/2042 23,067,783
- ------------------------------------------------------------------------------------------------------------------------------
24,495,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.250 06/01/2043 22,544,708
--------------
67,357,033
14 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
NEW YORK--1.5%
$ 500,000 NYC IDA (British Airways) 5.250% 12/01/2032 $ 380,195
- ------------------------------------------------------------------------------------------------------------------------------
200,000 NYC IDA (Northwest Airlines) 6.000 06/01/2027 157,552
- ------------------------------------------------------------------------------------------------------------------------------
5,045,000 NYC IDA (Polytechnic University) 6.000 11/01/2020 4,144,013
- ------------------------------------------------------------------------------------------------------------------------------
6,500,000 NYC IDA (Polytechnic University) 6.125 11/01/2030 5,135,780
- ------------------------------------------------------------------------------------------------------------------------------
5,000,000 NYS DA (MSH/NYU Hospital Center/
HJDOI Obligated Group) 6.625 07/01/2019 5,118,550
--------------
14,936,090
- ------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA--0.1%
600,000 Charlotte, NC Douglas International Airport Special
Facilities (US Airways) i 7.750 02/01/2028 466,500
- ------------------------------------------------------------------------------------------------------------------------------
420,000 Charlotte, NC Special Facilities
(Charlotte/Douglas International Airport) 5.600 07/01/2027 264,600
--------------
731,100
- ------------------------------------------------------------------------------------------------------------------------------
OHIO--0.9%
2,880,000 Cleveland, OH Airport (Continental Airlines) 5.375 09/15/2027 2,218,752
- ------------------------------------------------------------------------------------------------------------------------------
220,000 Cleveland, OH Airport (Continental Airlines) 5.700 12/01/2019 182,915
- ------------------------------------------------------------------------------------------------------------------------------
6,020,000 Coshocton County, OH Solid Waste Disposal
(Stone Container Corp.) 7.875 08/01/2013 6,147,744
--------------
8,549,411
- ------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA--4.0%
4,500,000 OK Devel. Finance Authority (Doane Products Company) 6.250 07/15/2023 3,448,395
- ------------------------------------------------------------------------------------------------------------------------------
2,500,000 OK Devel. Finance Authority (Inverness Village) 8.000 02/01/2032 2,477,925
- ------------------------------------------------------------------------------------------------------------------------------
1,500,000 Oklahoma City, OK Industrial & Cultural Facilities
(Aero Obligated Group) 6.750 01/01/2023 1,469,490
- ------------------------------------------------------------------------------------------------------------------------------
3,000,000 Ottawa, OK Finance Authority
(Doane Products Company) 7.250 06/01/2017 2,435,010
- ------------------------------------------------------------------------------------------------------------------------------
11,000,000 Tulsa, OK Municipal Airport Trust (American Airlines) 5.375 12/01/2035 10,176,980
- ------------------------------------------------------------------------------------------------------------------------------
15,750,000 Tulsa, OK Municipal Airport Trust (American Airlines) 5.800 06/01/2035 15,515,955
- ------------------------------------------------------------------------------------------------------------------------------
4,485,000 Tulsa, OK Municipal Airport Trust (American Airlines) 6.250 06/01/2020 3,924,420
--------------
39,448,175
- ------------------------------------------------------------------------------------------------------------------------------
OREGON--0.3%
10,000 Josephine County, OR School District 6.500 08/01/2009 10,276
- ------------------------------------------------------------------------------------------------------------------------------
3,000,000 Port of Portland, OR Special Obligation (Delta Air Lines) 6.200 09/01/2022 2,548,380
--------------
2,558,656
- ------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--5.6%
4,360,000 Allegheny County, PA HDA
(West Penn Allegheny Health System) 9.250 11/15/2015 4,724,540
- ------------------------------------------------------------------------------------------------------------------------------
6,000,000 Allegheny County, PA HDA
(West Penn Allegheny Health System) 9.250 11/15/2022 6,501,660
15 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Continued
$ 31,010,000 Allegheny County, PA HDA
(West Penn Allegheny Health System) 9.250% 11/15/2030 $ 33,602,746
- ------------------------------------------------------------------------------------------------------------------------------
3,000,000 Beaver County, PA IDA
(Cleveland Electric Illuminating Company) 7.750 07/15/2025 3,254,490
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Chester County, PA H&EFA (Jenners Pond) 7.750 07/01/2034 1,004,040
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Lawrence County, PA IDA (Shenango Presbyterian Center) 7.500 11/15/2031 953,990
- ------------------------------------------------------------------------------------------------------------------------------
5,000,000 PA EDFA (National Gypsum Company) 6.250 11/01/2027 5,128,500
--------------
55,169,966
- ------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND--5.6%
2,000,000 RI Hsg. & Mtg. Finance Corp. RITES i 16.192 r 10/01/2022 2,185,560
- ------------------------------------------------------------------------------------------------------------------------------
32,555,000 RI Tobacco Settlement Financing Corp. (TASC) 6.250 06/01/2042 29,772,850
- ------------------------------------------------------------------------------------------------------------------------------
7,580,000 RI Tobacco Settlement Financing Corp. (TASC), Series A 6.000 06/01/2023 7,265,809
- ------------------------------------------------------------------------------------------------------------------------------
16,995,000 RI Tobacco Settlement Financing Corp. (TASC), Series A 6.125 06/01/2032 16,015,918
--------------
55,240,137
- ------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA--0.6%
2,250,000 Florence County, SC IDR (Stone Container Corp.) 7.375 02/01/2007 2,282,985
- ------------------------------------------------------------------------------------------------------------------------------
1,965,000 SC Hsg. Finance & Devel. Authority RITES i 14.940 r 01/01/2023 2,066,826
- ------------------------------------------------------------------------------------------------------------------------------
5,000 SC Resource Authority Local Government Program 7.250 06/01/2020 5,048
- ------------------------------------------------------------------------------------------------------------------------------
1,615,000 SC Tobacco Settlement Management Authority, Series B 6.375 05/15/2028 1,536,495
--------------
5,891,354
- ------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA--0.3%
3,585,000 SD Educational Enhancement Funding Corp.
Tobacco Settlement 6.500 06/01/2032 3,435,039
- ------------------------------------------------------------------------------------------------------------------------------
TENNESSEE--0.8%
100,000 Hamilton County, TN IDB (Park at 58) 6.700 03/01/2021 87,324
- ------------------------------------------------------------------------------------------------------------------------------
4,335,000 McMinn County, TN IDB Pollution Control
(Calhoun Newsprint) 7.625 03/01/2016 4,338,035
- ------------------------------------------------------------------------------------------------------------------------------
150,000 McMinn County, TN IDB Solid Waste
(Calhoun Newsprint) 7.400 12/01/2022 151,050
- ------------------------------------------------------------------------------------------------------------------------------
3,000,000 Metropolitan Knoxville, TN Airport Authority
(Northwest Airlines) 8.000 04/01/2032 3,013,950
--------------
7,590,359
- ------------------------------------------------------------------------------------------------------------------------------
TEXAS--9.1%
590,000 Bexar County, TX HFC (American Opportunity Hsg.) 7.500 01/01/2013 591,841
- ------------------------------------------------------------------------------------------------------------------------------
1,195,000 Bexar County, TX HFC (American Opportunity Hsg.) 8.250 12/01/2037 1,137,664
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Bexar County, TX HFC (American Opportunity Hsg.) 9.250 12/01/2037 942,120
- ------------------------------------------------------------------------------------------------------------------------------
230,000 Bexar County, TX HFC (Honey Creek LLC) 8.000 04/01/2030 229,358
- ------------------------------------------------------------------------------------------------------------------------------
4,400,000 Brazos River Authority, TX (TXU Energy Company) 6.750 10/01/2038 4,795,780
- ------------------------------------------------------------------------------------------------------------------------------
8,000,000 Brazos River Authority, TX (TXU Energy Company) 7.700 04/01/2033 9,106,480
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Dallas, TX Hsg. Corp. (Section 8) 7.850 08/01/2013 1,021,000
16 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
TEXAS Continued
$ 235,000 Dallas-Fort Worth, TX International Airport
(Delta Air Lines) 7.625% 11/01/2021 $ 211,615
- ------------------------------------------------------------------------------------------------------------------------------
6,000,000 Dallas-Fort Worth, TX International Airport RITES i 15.616 r 11/01/2027 6,185,520
- ------------------------------------------------------------------------------------------------------------------------------
5,240,000 El Paso, TX Health Facilities Devel. Corp.
(Bienvivir Senior Health Services) 7.750 08/15/2031 5,163,548
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Grapevine, TX IDC (Air Cargo) 6.500 01/01/2024 1,032,830
- ------------------------------------------------------------------------------------------------------------------------------
4,660,000 Gulf Coast, TX IDA (Citgo Petroleum Corp.) 7.500 05/01/2025 4,864,155
- ------------------------------------------------------------------------------------------------------------------------------
4,000,000 Houston, TX Airport Special Facilities
(Continental Airlines) 5.700 07/15/2029 3,129,200
- ------------------------------------------------------------------------------------------------------------------------------
7,285,000 Houston, TX Airport Special Facilities
(Continental Airlines) 6.125 07/15/2017 6,414,071
- ------------------------------------------------------------------------------------------------------------------------------
190,000 Houston, TX Airport Special Facilities
(Continental Airlines) 6.125 07/15/2027 158,536
- ------------------------------------------------------------------------------------------------------------------------------
2,325,000 Houston, TX Airport Special Facilities
(Continental Airlines) 6.125 07/15/2027 1,939,980
- ------------------------------------------------------------------------------------------------------------------------------
15,750,000 Houston, TX Airport Special Facilities
(Continental Airlines) 6.750 07/01/2021 14,531,580
- ------------------------------------------------------------------------------------------------------------------------------
14,395,000 Houston, TX Airport Special Facilities
(Continental Airlines) 6.750 07/01/2029 13,018,118
- ------------------------------------------------------------------------------------------------------------------------------
900,000 Houston, TX Airport Special Facilities
(Continental Airlines) 7.375 07/01/2022 883,944
- ------------------------------------------------------------------------------------------------------------------------------
115,000 Matagorda County, TX Navigation District
(Reliant Energy) 5.950 05/01/2030 115,222
- ------------------------------------------------------------------------------------------------------------------------------
1,350,000 Newton County, TX Public Facility Corp. i 8.000 03/01/2019 1,389,528
- ------------------------------------------------------------------------------------------------------------------------------
2,500,000 TX GO RITES i 20.123 r 12/01/2028 3,076,050
- ------------------------------------------------------------------------------------------------------------------------------
3,000,000 TX Research Division RITES i 18.523 r 06/01/2029 3,550,740
- ------------------------------------------------------------------------------------------------------------------------------
2,405,000 TX State Affordable Hsg. Corp.
(American Hsg. Foundation) 8.000 03/01/2032 2,359,954
- ------------------------------------------------------------------------------------------------------------------------------
4,000,000 TX Turnpike Authority ROLs i 13.690 r 08/15/2042 4,360,160
--------------
90,208,994
- ------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--1.0%
260,000 Guam EDA (Royal Socio Apartments) 9.500 11/01/2018 236,137
- ------------------------------------------------------------------------------------------------------------------------------
9,000,000 Northern Mariana Islands, Series A 6.750 10/01/2033 9,225,450
- ------------------------------------------------------------------------------------------------------------------------------
75,000 Puerto Rico ITEMECF (Mennonite General Hospital) 6.500 07/01/2012 71,540
--------------
9,533,127
- ------------------------------------------------------------------------------------------------------------------------------
UTAH--0.1%
635,000 Carbon, UT Solid Waste Disposal (Allied Waste Industries) 7.500 02/01/2010 655,542
- ------------------------------------------------------------------------------------------------------------------------------
VERMONT--0.3%
2,905,000 VT HFA, Series B 7.600 12/01/2024 2,909,706
- ------------------------------------------------------------------------------------------------------------------------------
VIRGINIA--1.4%
2,250,000 Bedford County, VA IDA (Georgia-Pacific Corp.) 6.550 12/01/2025 2,270,295
- ------------------------------------------------------------------------------------------------------------------------------
25,000 Giles County, VA IDA (Hoechst Celanese Corp.) 6.625 12/01/2022 25,096
17 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
VIRGINIA Continued
$ 1,750,000 Halifax County, VA IDA RITES i 18.023% r 06/01/2028 $ 2,340,135
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 Hopewell, VA IDA (Stone Container Corp.) 8.250 05/01/2010 2,044,440
- ------------------------------------------------------------------------------------------------------------------------------
205,000 Hopewell, VA IDA (Stone Container Corp.) 8.250 06/01/2016 209,578
- ------------------------------------------------------------------------------------------------------------------------------
200,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 z 08/15/2012 108,764
- ------------------------------------------------------------------------------------------------------------------------------
3,500,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.000 08/15/2010 3,207,995
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.000 08/15/2011 895,670
- ------------------------------------------------------------------------------------------------------------------------------
3,000,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.250 08/15/2008 2,883,990
- ------------------------------------------------------------------------------------------------------------------------------
200,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.500 08/15/2028 164,210
--------------
14,150,173
- ------------------------------------------------------------------------------------------------------------------------------
WASHINGTON--3.0%
3,000,000 Chelan County, WA Public Utility District RITES i 17.926 r 01/01/2036 3,729,600
- ------------------------------------------------------------------------------------------------------------------------------
3,500,000 Grant County, WA Public Utility District RITES i 15.730 r 01/01/2022 3,875,130
- ------------------------------------------------------------------------------------------------------------------------------
340,000 Pilchuck, WA Devel. Public Corp. (B.F. Goodrich Company) 6.000 08/01/2023 341,037
- ------------------------------------------------------------------------------------------------------------------------------
100,000 Port Camas, WA Public Industrial Corp.
(James River Corp. of VA) 6.700 04/01/2023 100,377
- ------------------------------------------------------------------------------------------------------------------------------
4,025,000 Port Longview, WA IDC (Weyerhauser Company) 7.450 02/01/2013 4,113,953
- ------------------------------------------------------------------------------------------------------------------------------
1,000,000 Port Seattle, WA Special Facility (Northwest Airlines) 7.125 04/01/2020 997,870
- ------------------------------------------------------------------------------------------------------------------------------
10,450,000 Port Seattle, WA Special Facility (Northwest Airlines) 7.250 04/01/2030 10,454,807
- ------------------------------------------------------------------------------------------------------------------------------
6,160,000 WA Tobacco Settlement Authority (TASC) 6.500 06/01/2026 6,091,378
--------------
29,704,152
- ------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA--0.1%
1,000,000 Kanawha County, WV Industrial Devel.
(Union Carbide Chemical & Plastics Company) 8.000 08/01/2020 990,080
- ------------------------------------------------------------------------------------------------------------------------------
WISCONSIN--1.7%
11,965,000 Badger, WI Tobacco Asset Securitization Corp. 6.125 06/01/2027 11,745,323
- ------------------------------------------------------------------------------------------------------------------------------
1,670,000 Badger, WI Tobacco Asset Securitization Corp. 6.375 06/01/2032 1,574,142
- ------------------------------------------------------------------------------------------------------------------------------
1,455,000 Milwaukee, WI (Air Cargo) 7.500 01/01/2025 1,465,185
- ------------------------------------------------------------------------------------------------------------------------------
2,000,000 WI H&EFA RITES i 16.695 r 02/15/2032 2,329,280
- ------------------------------------------------------------------------------------------------------------------------------
250,000 WI Lac Courte Oreilles Band of Lake Superior
Chippewa Indians 8.000 12/01/2018 251,495
--------------
17,365,425
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $962,887,838)--104.0% 1,029,681,794
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(4.0) (39,958,064)
--------------
NET ASSETS--100.0% $ 989,723,730
==============
18 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
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.
z. Represents a zero coupon bond.
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
CCRC Continuing Care Retirement Community
CDA Communities Development Authority
CDD Community Development District
COP Certificates of Participation
DA Dormitory Authority
DFA Development Finance Authority
EDA Economic Development Authority
EDFA Economic Development Finance Authority
EFA Educational Facilities Authority
GO General Obligation
H&EFA Health and Educational Facilities Authority
HDA Hospital Development Authority
HDC Housing Development Corp.
HE&H Higher Educational and Health
HFA Housing Finance Agency
HFC Housing Finance Corp.
HJDOI Hospital for Joint Diseases Orthopedic
Institute
HOC Housing Opportunities Commission
IDA Industrial Development Agency
IDB Industrial Development Board
IDC Industrial Development Corporation
IDR Industrial Development Revenue
IRS Inverse Rate Security
ITEMECF Industrial, Tourist, Educational, Medical
and Environmental Community Facilities
MSH/NYU Mount Sinai Hospital/New York University
NYC New York City
NYS New York State
RITES Residual Interest Tax Exempt Security
Res Rec Resource Recovery Facility
ROLs Residual Option Longs
TASC Tobacco Settlement Asset-Backed Bonds
- --------------------------------------------------------------------------------
INDUSTRY CONCENTRATIONS JANUARY 31, 2004
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY MARKET VALUE PERCENT
- ---------------------------------------------------------------------------
Tobacco Settlements $ 252,353,159 24.5%
Airlines 187,026,115 18.2
Hospital/Health Care 82,912,161 8.1
Electric Utilities 71,983,354 7.0
Paper, Containers & Packaging 68,603,246 6.7
Adult Living Facilities 60,585,267 5.9
Marine/Aviation Facilities 41,687,193 3.9
Hotels, Restaurants & Leisure 37,466,641 3.6
Gas Utilities 34,521,535 3.4
Special Assessment 31,556,597 3.1
Multifamily Housing 26,405,434 2.6
General Obligation 26,152,804 2.5
Resource Recovery 22,194,748 2.2
Higher Education 17,436,135 1.7
Single Family Housing 14,005,118 1.4
Manufacturing, Non-Durable Goods 13,569,549 1.3
Highways/Railways 11,620,789 1.1
Sports Facility Revenue 10,375,000 1.0
Special Tax 9,542,280 0.9
Municipal Leases 2,735,654 0.3
Education 2,203,880 0.2
Not-for-Profit Organization 2,046,520 0.2
Sales Tax Revenue 1,474,538 0.1
Pollution Control 883,040 0.1
Manufacturing, Durable Goods 341,037 --
--------------------------------
Total $1,029,681,794 100.0%
================================
19 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SUMMARY OF RATINGS January 31, 2004 / Unaudited
DISTRIBUTION OF INVESTMENTS BY RATING CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
RATING PERCENT
- ---------------------------------------------------------------------------
AAA 6.6%
AA 2.5
A 0.0
BBB 36.7
BB 8.3
B 19.4
CCC 0.4
CC 0.0
C 0.0
D 0.0
Not Rated 26.1
------
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.
20 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
JANUARY 31, 2004
- --------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $962,887,838)--see accompanying statement $1,029,681,794
- --------------------------------------------------------------------------------------------------
Cash 611,848
- --------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 18,926,290
Shares of beneficial interest sold 14,664,894
Other 12,964
-------------
Total assets 1,063,897,790
- --------------------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Notes payable to bank (interest rate 1.8125% at January 31, 2004) 39,800,000
Investments purchased 31,960,720
Shares of beneficial interest redeemed 1,355,288
Dividends 802,681
Distribution and service plan fees 118,579
Shareholder communications 39,249
Transfer and shareholder servicing agent fees 35,267
Trustees' compensation 26,906
Other 35,370
-------------
Total liabilities 74,174,060
- --------------------------------------------------------------------------------------------------
NET ASSETS $989,723,730
=============
- --------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $942,476,812
- --------------------------------------------------------------------------------------------------
Accumulated net investment income 1,674,924
- --------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (21,221,962)
- --------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 66,793,956
-------------
NET ASSETS $989,723,730
=============
21 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$517,393,761 and 44,146,443 shares of beneficial interest outstanding) $11.72
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $12.30
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $267,841,521 and 22,806,255 shares of beneficial
interest outstanding) $11.74
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $204,488,448 and 17,471,696 shares of beneficial interest
outstanding) $11.70
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JANUARY 31, 2004
- ----------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 31,716,405
- ----------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,944,528
- ----------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 287,695
Class B 1,003,465
Class C 665,358
- ----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 96,352
Class B 71,767
Class C 46,946
- ----------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 14,418
Class B 8,505
Class C 5,462
- ----------------------------------------------------------------------------------------------------
Interest expense 258,743
- ----------------------------------------------------------------------------------------------------
Custodian fees and expenses 19,291
- ----------------------------------------------------------------------------------------------------
Trustees' compensation 16,806
- ----------------------------------------------------------------------------------------------------
Other 54,573
------------
Total expenses 4,493,909
Less reduction to custodian expenses (1,353)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (280)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (120)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (24)
------------
Net expenses 4,492,132
- ----------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 27,224,273
- ----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
Net realized gain on investments 7,066,719
- ----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 63,530,757
- ----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $97,821,749
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
(UNAUDITED) 2003
- ---------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 27,224,273 $ 38,761,209
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 7,066,719 (26,526,188)
- ---------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 63,530,757 838,016
-------------------------------
Net increase in net assets resulting from operations 97,821,749 13,073,037
- ---------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (14,425,689) (20,618,983)
Class B (7,449,956) (10,471,076)
Class C (4,935,514) (6,339,849)
- ---------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial interest transactions:
Class A 174,381,014 126,779,250
Class B 58,123,786 104,651,625
Class C 78,995,411 66,891,717
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase 382,510,801 273,965,721
- ---------------------------------------------------------------------------------------------------------------------
Beginning of period 607,212,929 333,247,208
-------------------------------
End of period (including accumulated net investment income
of $1,674,924 and $1,261,810, respectively) $989,723,730 $607,212,929
===============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS A (UNAUDITED) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $10.64 $11.28 $11.25 $10.76 $11.24 $11.62
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .43 .92 .71 .58 .58 .56
Net realized and unrealized gain (loss) 1.08 (.67) .03 .48 (.45) (.39)
----------------------------------------------------------------------
Total from investment operations 1.51 .25 .74 1.06 .13 .17
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.43) (.89) (.71) (.57) (.57) (.55)
Distributions from net realized gain -- -- -- -- (.04) --
----------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.43) (.89) (.71) (.57) (.61) (.55)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.72 $10.64 $11.28 $11.25 $10.76 $11.24
======================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 14.37% 2.36% 6.89% 10.03% 1.28% 1.36%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $517,394 $306,857 $193,452 $38,827 $34,050 $35,924
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $385,433 $252,496 $ 73,877 $36,900 $34,296 $36,532
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 7.52% 8.44% 6.61% 5.21% 5.41% 4.78%
Total expenses 0.81% 1.04% 1.06% 0.87% 1.13% 1.13%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses N/A 3,4 N/A 3 0.89% 5 0.78% 5 0.96% 5 0.95% 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 29% 57% 127% 37% 12% 55%
<FN>
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distribution or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
5. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS B (UNAUDITED) 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $10.66 $11.30 $11.27 $10.78 $11.26 $11.64
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .39 .83 .63 .49 .50 .47
Net realized and unrealized gain (loss) 1.08 (.66) .02 .48 (.45) (.39)
-------------------------------------------------------------------
Total from investment operations 1.47 .17 .65 .97 .05 .08
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.39) (.81) (.62) (.48) (.49) (.46)
Distributions from net realized gain -- -- -- -- (.04) --
-------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.39) (.81) (.62) (.48) (.53) (.46)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.74 $10.66 $11.30 $11.27 $10.78 $11.26
===================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 13.91% 1.57% 6.07% 9.19% 0.51% 0.60%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $267,842 $188,645 $90,547 $20,279 $17,866 $21,524
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $221,717 $141,819 $36,100 $18,445 $19,249 $21,648
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 6.80% 7.67% 5.85% 4.45% 4.64% 4.02%
Total expenses 1.57% 1.81% 1.80% 1.62% 1.89% 1.88%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses N/A 3,4 N/A 3 1.63% 5 1.53% 5 1.72% 5 1.70% 5
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 29% 57% 127% 37% 12% 55%
<FN>
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distribution or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
5. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS C (UNAUDITED) 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $10.63 $11.27 $11.24 $10.75 $11.23 $11.61
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .38 .83 .61 .50 .50 .47
Net realized and unrealized gain (loss) 1.08 (.66) .04 .48 (.45) (.39)
---------------------------------------------------------------------
Total from investment operations 1.46 .17 .65 .98 .05 .08
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.39) (.81) (.62) (.49) (.49) (.46)
Distributions from net realized gain -- -- -- -- (.04) --
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.39) (.81) (.62) (.49) (.53) (.46)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.70 $10.63 $11.27 $11.24 $10.75 $11.23
=====================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 13.85% 1.59% 6.09% 9.22% 0.51% 0.60%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $204,488 $111,710 $49,248 $3,410 $2,442 $3,504
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $147,237 $ 85,483 $13,453 $2,552 $2,790 $3,260
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 6.74% 7.68% 5.88% 4.45% 4.65% 4.02%
Total expenses 1.57% 1.80% 1.80% 1.62% 1.89% 1.88%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses N/A 3,4 N/A 3 1.63% 5 1.53% 5 1.72% 5 1.70% 5
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 29% 57% 127% 37% 12% 55%
<FN>
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distribution or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
5. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Rochester National Municipals (the Fund) is a separate series of
Oppenheimer Multi-State Municipal Trust, an open-end management investment
company registered under the Investment Company Act of 1940, as amended. The
Fund's investment objective is to seek a high level of current income exempt
from federal income taxes for individual investors by investing in a
diversified portfolio of high-yield municipal securities. 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 with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. 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 may be valued
primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities (including restricted
securities) for which market quotations are not readily available are valued at
their fair value. Securities whose values have been materially affected by what
the Manager identifies as a significant event occurring before the Fund's
assets are valued but after the close of their respective foreign exchanges
will be fair valued. 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 35% of its total assets in
28 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
inverse floaters. Inverse floaters amount to $90,890,793 as of January 31,
2004. Including the effect of leverage, inverse floaters represent 22.70% of
the Fund's total assets as of January 31, 2004.
- --------------------------------------------------------------------------------
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.
As of January 31, 2004, the Fund had available for federal income tax
purposes an estimated unused capital loss carryforward of $21,077,504 expiring
by 2011. This estimated capital loss carryforward represents carryforward as of
the end of the last fiscal year, increased for losses deferred under tax
accounting rules to the current fiscal year and is increased or decreased by
capital losses or gains realized in the first six months of the current fiscal
year. During the six months ended January 31, 2004 and the year ended July 31,
2003, the Fund used $7,066,719 and $0, respectively, of carryforward to offset
capital gains realized.
As of July 31, 2003, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
EXPIRING
--------------------------
2009 $1,051,023
2010 711,471
2011 21,126
----------
Total $1,783,620
===========
- --------------------------------------------------------------------------------
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 six months
ended January 31, 2004, the Fund's projected benefit obligations were increased
by $6,390 and payments of $2,780 were made to retired trustees, resulting in an
accumulated liability of $18,465 as of January 31, 2004.
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
Oppenheimer funds selected by the Trustee. Deferral of trustees' fees under the
plan will not affect the net assets of the Fund, and will not
29 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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, if applicable,
represents earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
SIX MONTHS ENDED JANUARY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------
CLASS A
Sold 17,849,279 $202,598,715 18,625,393 $199,835,999
Dividends and/or
distributions reinvested 589,945 6,665,032 894,340 9,452,007
Redeemed (3,124,901) (34,882,733) (7,839,075) (82,508,756)
-----------------------------------------------------------------------
Net increase 15,314,323 $174,381,014 11,680,658 $126,779,250
=======================================================================
- -------------------------------------------------------------------------------------------------------
CLASS B
Sold 6,099,520 $ 69,032,251 12,221,314 $131,305,363
Dividends and/or
distributions reinvested 276,275 3,119,629 428,130 4,524,872
Redeemed (1,259,967) (14,028,094) (2,972,503) (31,178,610)
-----------------------------------------------------------------------
Net increase 5,115,828 $ 58,123,786 9,676,941 $104,651,625
=======================================================================
30 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
SIX MONTHS ENDED JANUARY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------
CLASS C
Sold 8,203,244 $ 92,737,432 8,862,569 $ 95,133,016
Dividends and/or
distributions reinvested 221,001 2,494,832 324,517 3,420,609
Redeemed (1,462,459) (16,236,853) (3,048,602) (31,661,908)
-----------------------------------------------------------------------
Net increase 6,961,786 $ 78,995,411 6,138,484 $ 66,891,717
=======================================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended January 31, 2004, were
$477,008,205 and $192,577,794, respectively.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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 six months ended January 31, 2004, the
Fund paid $209,549 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 Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class
A shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.15% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses the fees it receives
from the Fund to pay brokers, dealers and other financial institutions for
personal services and account maintenance services they provide for their
customers who hold Class A shares. Any unreimbursed expenses the Distributor
incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years. Fees incurred by the Fund under the plan are detailed in the
Statement of Operations.
31 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of these shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% per year on Class B
shares and on Class C shares. The Distributor also receives a service fee of
0.15% per year under each plan. If either the Class B or Class C plan is
terminated by the Fund or by the shareholders of a class, the Board of Trustees
and its independent trustees must determine whether the Distributor shall be
entitled to payment from the Fund of all or a portion of the service fee and/or
the asset-based sales charge in respect to shares sold prior to the effective
date of such termination. The Distributor's aggregate uncompensated expenses
under the plan at January 31, 2004 for Class B and Class C shares was
$9,728,387 and $2,451,048, respectively. Fees incurred by the Fund under the
plans are detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption
proceeds prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -------------------------------------------------------------------------------
January 31, 2004 $616,191 $7,584 $247,620 $21,796
- --------------------------------------------------------------------------------
5. ILLIQUID SECURITIES
As of January 31, 2004, 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 January
31, 2004 was $91,949,227, which represents 9.29% of the Fund's net assets.
- --------------------------------------------------------------------------------
6. BANK BORROWINGS
The Fund may borrow up to 33 1/3% 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 $540 million, collectively. Interest is charged to
each fund, based on its borrowings, at a rate equal to the
32 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
Federal Funds Rate plus 0.75%. The rate of the Federal Funds Rate plus 0.625%
was effective from August 1, 2003 to November 8, 2003; thereafter, the rate is
0.75%. 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 $39,800,000 at January 31, 2004 at an
interest rate of 1.8125%. For the six months ended January 31, 2004, the
average monthly loan balance was $28,658,047 at an average daily interest rate
of 1.721%. The Fund had gross borrowings and gross loan repayments of
$266,900,000 and $266,300,000, respectively, during the six months ended
January 31, 2004. The maximum amount of borrowings outstanding at any month-end
was $57,200,000. The Fund paid commitment fees of $3,330 and interest of
$253,310 during the six months ended January 31, 2004.
- --------------------------------------------------------------------------------
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.
33 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
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 applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At a meeting of the Board of Trustees of the registrant held on
February 18, 2004, the Board adopted (1) a policy that, should the Board
determine that a vacancy exists or is likely to exist on the Board, the
Governance Committee of the Board, which is comprised entirely of independent
trustees, shall consider any candidates for Board membership recommended by the
registrant's security holders and (2) a policy that security holders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., Two World Financial Center, 225
Liberty Street - 11th Floor, New York, NY 10281-1008, to the attention of the
Chair of the Governance Committee. Prior to February 18, 2004, the Board did not
have a formalized policy with respect to consideration of security holder
nominees or a procedure by which security holders may make their submissions. In
addition to security holder nominees, the Governance Committee may also consider
nominees recommended by independent Board members or recommended by any other
Board members and is authorized under its Charter, upon Board approval, to
retain an executive search firm to assist in screening potential candidates.
Upon Board approval, the Governance Committee may also obtain legal, financial,
or other external counsel that may be necessary or desirable in the screening
process.
ITEM 10. 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 January 31, 2004,
registrant's principal executive officer and principal financial
officer found registrant's disclosure controls and procedures to
provide reasonable assurances 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 over financial reporting that occurred during the
registrant's last fiscal half-year that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)