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 811-2668
Oppenheimer AMT-Free 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--101.4%
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ALABAMA--0.2%
$ 15,000 AL HFA (Pelican) 6.550% 03/20/2030 $ 15,671
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15,000 Birmingham, AL Special Care Facilities Financing
Authority (Children's Hospital of Alabama) 5.500 06/01/2022 15,977
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1,000,000 Camden, AL IDB (Weyerhaeuser Company), Series A 6.125 12/01/2024 1,076,020
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25,000 Hoover, AL Mtg. (Royal Oaks) 6.750 10/20/2029 25,512
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15,000 Montgomery, AL Medical Clinic Board Health Care 7.000 03/01/2015 15,031
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50,000 Oxford, AL Public Park & Recreation Board 6.000 12/01/2021 53,801
------------
1,202,012
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ALASKA--1.2%
2,500,000 AK HFC RITES a 16.695 f 06/01/2032 2,737,100
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2,000,000 AK HFC ROLs a 16.600 f 12/01/2033 2,131,720
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30,000 AK HFC, Series A 5.400 12/01/2023 30,464
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75,000 AK Northern Tobacco Securitization Corp. (TASC) 5.500 06/01/2029 65,947
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1,000,000 Anchorage, AK Water 6.000 09/01/2019 1,167,800
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1,500,000 Anchorage, AK Water 6.000 09/01/2024 1,713,960
------------
7,846,991
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ARIZONA--3.1%
750,000 AZ West Campus Hsg. (Arizona State University) 6.375 07/01/2022 835,470
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1,008,950 Central AZ Irrigation & Drain District, Series A 6.000 06/01/2013 984,604
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125,000 Glendale, AZ IDA (American Graduate School) 6.000 07/01/2017 126,606
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1,000,000 Maricopa County, AZ IDA
(Horizon Community Learning Center) 6.375 06/01/2030 1,059,120
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1,500,000 Maricopa County, AZ IDA (Sun King Apartments) 6.750 11/01/2018 1,294,890
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1,210,000 Maricopa County, AZ IDA (Sun King Apartments) 6.750 05/01/2031 972,550
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1,275,000 Maricopa County, AZ IDA (Villas at Augusta) 6.400 10/20/2020 1,378,211
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275,000 Maricopa County, AZ IDA Health Facilities
(Catholic Healthcare West) 5.625 07/01/2023 281,188
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70,000 Navajo County, AZ Pollution Control
(Arizona Public Service Company) 5.500 08/15/2028 71,572
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3,000,000 Peoria, AZ IDA (Sierra Winds) 6.375 08/15/2029 2,853,300
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1,000,000 Phoenix, AZ IDA (Summit Apartments) 6.550 07/20/2037 1,068,750
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20,000 Phoenix, AZ IDA (Woodstone & Silver Springs) 6.250 04/01/2023 20,243
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1,290,000 Pima County, AZ IDA (Arizona Charter School) 6.750 07/01/2031 1,289,097
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2,845,000 Pima County, AZ IDA
(Phoenix Advantage Charter School) 5.600 07/01/2023 2,975,529
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5,000,000 Verrado, AZ Community Facilities District 6.500 07/15/2027 5,079,150
------------
20,290,280
9 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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ARKANSAS--0.0%
$ 195,000 Pine Bluff, AR IDA (Colt Industries) 6.500% 02/15/2009 $ 194,770
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115,000 Pope County, AR Pollution Control
(Arkansas Power & Light Company) 6.300 11/01/2020 115,087
------------
309,857
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CALIFORNIA--8.7%
2,220,000 Beaumont, CA Financing Authority, Series B 5.875 09/01/2023 2,199,487
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2,000,000 CA CDA (East Valley Tourist) 11.000 10/01/2020 2,011,500
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4,700,000 CA GO RITES a 16.020 f 02/01/2025 4,945,622
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1,000,000 CA Golden State Tobacco Securitization Corp. 6.625 06/01/2040 971,830
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19,000,000 CA Golden State Tobacco Securitization Corp. (TASC) 5.500 06/01/2043 18,832,040
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1,200,000 CA Special Fixed Receipts 5.250 02/01/2025 1,215,672
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9,500,000 CA Statewide CDA (East Campus Apartments) 5.625 08/01/2034 9,846,560
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1,500,000 CA Statewide CDA COP
(Cedars-Sinai Medical Center) INFLOS a 9.400 f 11/01/2015 1,562,595
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4,000,000 Los Angeles, CA Regional Airports Improvement Corp.
(Delta Airlines) 6.350 11/01/2025 3,473,280
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1,400,000 Novato, CA Special Tax Community Facilities District No. 1 7.250 08/01/2021 1,457,736
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3,000,000 Redding, CA Electric System COP Linked SAVRS & RIBS 6.368 v 07/01/2022 3,644,280
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150,000 San Francisco, CA City & County Redevel. Agency
(George R. Moscone Convention Center) 6.750 07/01/2024 156,224
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7,000,000 Santa Rosa, CA Rancheria Tachi Yokut Tribe Enterprise 6.625 03/01/2018 7,051,660
------------
57,368,486
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COLORADO--1.4%
4,860,000 Broomfield, CO Village Metropolitan District No. 2 6.250 12/01/2032 4,843,379
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65,000 CO ECFA (TCA Building Corp.) 7.250 12/01/2030 83,026
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30,000 CO Health Facilities Authority
(North Colorado Medical Center) 6.000 05/15/2020 30,695
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170,000 CO Health Facilities Authority (Vail Valley Medical Center) 6.600 01/15/2020 175,285
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2,270,000 CO Health Facilities Authority RITES a 17.695 f 03/01/2022 2,731,763
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1,000,000 Douglas County, CO School District
(Douglas & Elbert Counties) 8.000 12/15/2009 1,283,600
------------
9,147,748
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CONNECTICUT--1.7%
15,000 CT H&EFA (New Britain General Hospital), Series B 6.000 07/01/2024 15,546
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1,000,000 CT H&EFA (St. Raphael Hospital) 6.550 07/01/2005 1,025,600
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20,000 CT H&EFA (Yale-New Haven Hospital) 5.700 07/01/2025 21,781
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20,000 CT HFA, Series B-1 5.600 05/15/2019 21,232
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20,000 CT HFA, Series C-1 5.700 11/15/2028 21,012
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9,900,000 Mashantucket, CT Western Pequot Tribe, Series B 5.750 09/01/2027 10,172,646
------------
11,277,817
10 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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DISTRICT OF COLUMBIA--0.4%
$ 2,000,000 District of Columbia Friendship Public Charter School 5.250% 06/01/2033 $ 2,018,120
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500,000 District of Columbia Tobacco Settlement Financing Corp. 6.750 05/15/2040 490,965
------------
2,509,085
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FLORIDA--7.7%
2,500,000 Capital Trust Agency, FL (American Opportunity) 5.875 06/01/2038 2,361,175
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1,280,000 Capital Trust Agency, FL (River Bend Apartments) 7.000 10/01/2034 1,233,050
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1,495,000 Citrus County, FL Hospital Board (Citrus Memorial Hospital) 6.250 08/15/2023 1,542,063
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2,335,000 Dade County, FL IDA (Miami Cerebral Palsy Residence) 8.000 06/01/2022 2,389,312
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85,000 Dade County, FL Public Facilities
(Jackson Memorial Hospital) 5.250 06/01/2023 86,879
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2,000,000 Double Branch, FL Special Assessment
Community Devel. District 6.700 05/01/2034 2,122,340
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250,000 FL Gateway Services Community Devel. District
(Sun City Center) 6.500 05/01/2033 256,648
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1,000,000 FL HFA (Multifamily Hsg.), Series C 6.000 08/01/2011 1,125,370
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750,000 FL State Board of Education GO 8.400 06/01/2007 861,495
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50,000 FL State Board of Education GO, Series C 5.500 06/01/2021 52,542
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60,000 FL State University 6.000 05/01/2023 61,216
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1,000,000 Heritage Harbour South, FL Community Devel. District 6.500 05/01/2034 1,049,870
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50,000 Hillsborough County, FL IDA (Tampa Electric Company) 6.250 12/01/2034 52,902
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1,600,000 Islands at Doral, FL Southwest Community Devel. District 6.375 05/01/2035 1,658,288
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125,000 Jacksonville, FL Electric Authority (St. Johns River) 5.250 10/01/2021 125,279
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1,875,000 Jacksonville, FL Electric Authority RITES a 14.161 f 10/01/2022 1,818,975
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4,500,000 Lee County, FL IDA (Cypress Cove Healthpark) 6.750 10/01/2032 4,542,345
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8,125,000 Oakland, FL Charter School 6.950 12/01/2032 8,219,494
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30,000 Orange County, FL Health Facilities Authority
(Orlando Regional Healthcare System) 6.000 11/01/2024 30,391
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85,000 Palm Beach County, FL Multifamily (Boynton Apartments) 8.000 01/01/2014 78,549
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75,000 Pinellas County, FL Health Facilities Authority
(Bayfront Obligated Group) 5.600 07/01/2023 76,686
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6,000,000 Reunion East, FL Community Devel. District, Series A 7.375 05/01/2033 6,362,040
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265,000 Santa Rosa Bay, FL Bridge Authority 6.250 07/01/2028 275,107
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3,000,000 St. John's Forest, FL CDD, Series A 6.125 05/01/2034 3,029,220
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2,000,000 Sumter Landing, FL Community Devel. District 6.875 05/01/2023 2,078,740
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2,000,000 Sumter Landing, FL Community Devel. District 6.950 05/01/2033 2,074,660
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10,000 University of FL (University Hsg.) 5.500 07/01/2023 10,125
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1,000,000 Village Community, FL Devel. District No. 5, Series A 6.100 05/01/2034 1,023,220
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1,000,000 Village Community, FL Devel. District No. 5, Series A 6.500 05/01/2033 1,048,300
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5,100,000 Volusia County, FL EFA
(Emery-Riddle Aeronautical University) 6.125 10/15/2026 5,164,821
------------
50,811,102
11 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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GEORGIA--2.4%
$ 3,000,000 Cobb County, GA Devel. Authority (Boise Cascade Corp.) 7.000% 09/01/2014 $ 3,074,550
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2,815,000 GA Municipal Electric Authority RITES a 21.685 f 01/01/2017 5,399,395
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500,000 GA Municipal Electric Authority, Series X 6.500 01/01/2012 594,800
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30,000 GA Private Colleges & Universities Authority
(Agnes Scott College) 5.625 06/01/2023 30,678
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5,880,000 Savannah, GA EDA (Savannah College of Art and Design) 6.900 10/01/2029 6,369,686
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30,000 Savannah, GA EDA (University Financing Foundation) 6.750 11/15/2020 33,649
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60,000 Savannah, GA EDA (University Financing Foundation) 6.750 11/15/2031 66,744
------------
15,569,502
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HAWAII--1.5%
5,000,000 HI Airport System RITES a 10.519 f 07/01/2020 6,291,150
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3,700,000 HI Department of Budget & Finance Special Purpose
(Kahala Nui) 8.000 11/15/2033 3,704,884
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90,000 HI Hsg. Finance & Devel. Corp. (Single Family Mtg.),
Series B 5.900 07/01/2027 93,389
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25,000 HI Hsg. Finance & Devel. Corp. (Single Family Mtg.),
Series B 5.850 07/01/2017 25,937
------------
10,115,360
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IDAHO--2.4%
10,000 ID Hsg. Agency (Multifamily Hsg.) 6.700 07/01/2024 10,319
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16,720,000 Nez Perce County, ID Pollution Control (Potlatch Corp.) 6.000 10/01/2024 16,072,100
------------
16,082,419
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ILLINOIS--5.7%
9,000,000 Chicago, IL O'Hare International Airport
(American Airlines) 8.200 12/01/2024 7,470,000
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125,000 IL DFA Pollution Control
(Central Illinois Public Service Company) 6.375 01/01/2028 125,104
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1,625,000 IL EFA (Augustana College) 5.625 10/01/2022 1,673,718
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3,000,000 IL EFA (Augustana College) 5.700 10/01/2032 3,045,420
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5,000,000 IL Health Facilities Authority
(Covenant Retirement Communities) 5.625 12/01/2032 5,307,200
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4,000,000 IL Health Facilities Authority (Lake Forest Hospital) 6.000 07/01/2033 4,280,320
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615,000 IL Health Facilities Authority
(Rush-Presbyterian-St. Luke's Medical Center) 5.500 11/15/2025 628,801
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40,000 IL Hsg. Devel. Authority (Multifamily Hsg.) 7.000 07/01/2017 40,302
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45,000 IL Hsg. Devel. Authority (Multifamily Hsg.), Series 1991-A 8.250 07/01/2016 47,205
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70,000 IL Hsg. Devel. Authority (Multifamily Hsg.), Series A 6.125 07/01/2025 71,154
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2,500,000 IL Metropolitan Pier & Exposition Authority RITES a 15.685 f 12/15/2028 2,798,250
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2,000,000 Lake County, IL HFC, Series A 6.700 11/01/2014 2,003,020
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7,500,000 Regional Transportation Authority, IL, Series A 7.200 11/01/2020 9,990,300
------------
37,480,794
12 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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INDIANA--3.2%
$ 5,000,000 Fort Wayne, IN Pollution Control (General Motors Corp.) 6.200% 10/15/2025 $ 5,284,100
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30,000 IN DFA (USX Corp.) 6.150 07/15/2022 31,164
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3,250,000 Indianapolis, IN Local Public Improvement
Bond Bank RITES a 16.695 f 07/01/2033 3,884,790
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4,750,000 North Manchester, IN (Estelle Peabody Memorial Home) 7.125 07/01/2022 4,778,690
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185,000 Petersburg, IN Pollution Control
(Indianapolis Power & Light Company) 6.100 01/01/2016 185,923
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6,625,000 Petersburg, IN Pollution Control
(Indianapolis Power & Light Company) 6.100 01/01/2016 6,709,601
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125,000 Petersburg, IN Pollution Control
(Indianapolis Power & Light Company) 6.625 12/01/2024 128,854
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15,000 Sullivan, IN Pollution Control (Hoosier Energy Corp.) 7.100 04/01/2019 15,214
------------
21,018,336
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IOWA--0.0%
30,000 IA Finance Authority (Single Family Mtg.) 6.450 01/01/2024 30,971
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KANSAS--0.0%
45,000 Wamego, KS Pollution Control (Western Resources) 6.000 02/01/2033 45,149
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KENTUCKY--1.0%
4,000,000 Ashland, KY Pollution Control (Ashland Oil) 6.650 08/01/2009 4,096,000
- -------------------------------------------------------------------------------------------------------------------------
2,190,000 Boone County, KY Pollution Control
(Dayton Power & Light Company) 6.500 11/15/2022 2,236,538
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150,000 Jefferson County, KY Pollution Control
(B.F. Goodrich Company) 6.200 02/01/2008 153,825
------------
6,486,363
- -------------------------------------------------------------------------------------------------------------------------
LOUISIANA--6.1%
5,010,000 Calcasieu Parish, LA IDB (Olin Corp.) 6.625 02/01/2016 5,357,744
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5,000,000 DeSoto Parish, LA Pollution Control
(Southwestern Electric Power Company) 7.600 01/01/2019 5,151,500
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 LA Local Government EF&CD (Bellemont Apartments) 6.000 09/01/2027 972,910
- -------------------------------------------------------------------------------------------------------------------------
3,500,000 LA Local Government EF&CD (Bellemont Apartments) 6.000 09/01/2035 3,370,500
- -------------------------------------------------------------------------------------------------------------------------
980,000 LA Local Government EF&CD (Bellemont Apartments) 7.500 09/01/2016 968,152
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 LA Local Government EF&CD
(Oakleigh Apartments), Series A 6.375 06/01/2038 1,953,520
- -------------------------------------------------------------------------------------------------------------------------
1,260,000 LA Local Government EF&CD
(Oakleigh Apartments), Series A 7.500 06/01/2038 1,233,981
- -------------------------------------------------------------------------------------------------------------------------
2,100,000 LA Tobacco Settlement Financing Corp. Fixed Receipts 5.875 05/15/2039 1,896,363
- -------------------------------------------------------------------------------------------------------------------------
10,695,000 LA Tobacco Settlement Financing Corp. RITES a 9.581 f 05/15/2039 8,620,705
- -------------------------------------------------------------------------------------------------------------------------
6,000,000 South LA Port Commission (Kinder Morgan Energy Partners) 7.000 03/01/2023 6,195,600
- -------------------------------------------------------------------------------------------------------------------------
4,250,000 West Feliciana Parish, LA Pollution Control
(Gulf States Utilities Company) 9.000 05/01/2015 4,314,430
------------
40,035,405
13 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------
MAINE--0.0%
$ 25,000 ME H&HEFA (University of New England) 5.750% 07/01/2023 $ 25,567
- -------------------------------------------------------------------------------------------------------------------------
MARYLAND--1.6%
15,000 Anne Arundel County, MD Mtg. (Regency Club II) 5.750 01/15/2021 15,311
- -------------------------------------------------------------------------------------------------------------------------
55,000 Baltimore County, MD (Kingswood Common IV) 5.750 09/01/2020 55,959
- -------------------------------------------------------------------------------------------------------------------------
15,000 Baltimore, MD City Hsg. Corp. 7.750 10/01/2009 15,039
- -------------------------------------------------------------------------------------------------------------------------
45,000 Baltimore, MD City Hsg. Corp., Series A 7.250 07/01/2023 46,305
- -------------------------------------------------------------------------------------------------------------------------
5,000,000 MD EDC Student Hsg. (Bowie State University) 5.375 06/01/2033 4,870,750
- -------------------------------------------------------------------------------------------------------------------------
1,535,000 MD EDC Student Hsg. (Morgan State University) 6.000 07/01/2022 1,600,744
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 MD EDC Student Hsg. (University of Maryland) 5.625 10/01/2023 2,031,880
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 MD EDC Student Hsg. (University of Maryland) 5.750 10/01/2033 2,024,960
- -------------------------------------------------------------------------------------------------------------------------
45,000 MD H&HEFA (James L. Kernan Hospital) 6.100 07/01/2024 46,853
- -------------------------------------------------------------------------------------------------------------------------
10,000 Prince Georges County, MD Pollution Control
(Potomac Electric Power Company) 6.000 09/01/2022 10,071
------------
10,717,872
- -------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS--1.2%
800,000 MA DFA (Eastern Nazarene College) 5.625 04/01/2019 651,920
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 MA DFA (Eastern Nazarene College) 5.625 04/01/2029 1,511,860
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 MA DFA (Pharmacy & Allied Health Sciences) 5.750 07/01/2033 1,003,290
- -------------------------------------------------------------------------------------------------------------------------
500,000 MA DFA (Western New England College) 5.875 12/01/2022 507,790
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 MA DFA (Western New England College) 6.125 12/01/2032 1,027,020
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 MA H&EFA (Mt. Auburn Hospital) 6.250 08/15/2014 1,045,120
- -------------------------------------------------------------------------------------------------------------------------
1,892,563 MA IFA (Bradford College) 5.250 11/01/2018 1,710,403
- -------------------------------------------------------------------------------------------------------------------------
50,000 MA IFA (General Motors Corp.) 5.550 04/01/2009 50,076
- -------------------------------------------------------------------------------------------------------------------------
120,000 St. Alfios, MA Hsg. Corp. (Section 8) 8.200 02/01/2024 124,205
------------
7,631,684
- -------------------------------------------------------------------------------------------------------------------------
MICHIGAN--0.6%
3,035,000 Detroit, MI GO 6.000 04/01/2017 3,539,933
- -------------------------------------------------------------------------------------------------------------------------
70,000 Dickinson County, MI EDC (Champion International Corp.) 5.850 10/01/2018 71,527
- -------------------------------------------------------------------------------------------------------------------------
50,000 MI Hsg. Devel. Authority (Charter Square) 5.500 01/15/2021 50,935
- -------------------------------------------------------------------------------------------------------------------------
10,000 Mount Clemens, MI Hsg. Corp. (FHA Section 8), Series A 6.600 06/01/2022 10,156
------------
3,672,551
- -------------------------------------------------------------------------------------------------------------------------
MINNESOTA--2.8%
3,000,000 International Falls, MN Environmental Facilities
(Boise Cascade Corp.) 7.200 10/01/2024 3,085,380
- -------------------------------------------------------------------------------------------------------------------------
5,000 MN HFA (Single Family Mtg.), Series F 6.300 07/01/2025 5,105
- -------------------------------------------------------------------------------------------------------------------------
40,000 MN HFA (Single Family Mtg.), Series I 6.250 01/01/2015 40,454
- -------------------------------------------------------------------------------------------------------------------------
7,000,000 St. Paul, MN Hsg. & Redevel. Authority (Upper Landing) 7.000 03/01/2029 6,978,860
- -------------------------------------------------------------------------------------------------------------------------
8,420,000 Washington County, MN Hsg. & Redevel. Authority
(Seasons Villas) 6.950 12/01/2023 8,591,515
------------
18,701,314
14 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI--0.0%
$ 55,000 MS BFC (System Energy Resources) 5.875% 04/01/2022 $ 55,202
- -------------------------------------------------------------------------------------------------------------------------
MISSOURI--4.0%
10,280,678 Hanley/Eager Rd., MO Transportation Devel.
District, Series A 0.000 z 12/01/2033 2,278,198
- -------------------------------------------------------------------------------------------------------------------------
13,500,000 Hazelwood, MO Transportation Devel. District
(370/Missouri Bottom Road/Tausig Road) 7.200 05/01/2033 13,981,410
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 MO DFB Infrastructure Facilities (Midtown Redevel.) 5.750 04/01/2022 1,120,580
- -------------------------------------------------------------------------------------------------------------------------
9,000,000 St. Joseph, MO IDA (Living Community of St. Joseph) 7.000 08/15/2032 9,002,880
------------
26,383,068
- -------------------------------------------------------------------------------------------------------------------------
NEVADA--2.0%
6,720,000 Clark County, NV Economic Devel.
(Alexander Dawson School at Rainbow Mountain) 5.375 05/15/2033 6,751,114
- -------------------------------------------------------------------------------------------------------------------------
6,000,000 Las Vegas, NV Paiute Tribe, Series A 6.625 11/01/2017 6,471,540
------------
13,222,654
- -------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE--1.7%
1,000,000 NH H&EFA (Catholic Medical Center) 6.125 07/01/2032 1,023,910
- -------------------------------------------------------------------------------------------------------------------------
1,980,000 NH H&EFA (Portsmouth Christian Academy) 5.750 07/01/2023 2,072,961
- -------------------------------------------------------------------------------------------------------------------------
6,115,000 NH H&EFA (Portsmouth Christian Academy) 5.850 07/01/2033 6,388,769
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 NH H&EFA (Southern New Hampshire University) 5.200 01/01/2024 1,004,810
- -------------------------------------------------------------------------------------------------------------------------
40,000 NH HE&HFA (New Hampshire College) 6.375 01/01/2027 40,654
- -------------------------------------------------------------------------------------------------------------------------
500,000 NH Turnpike System, Series A 6.750 11/01/2011 573,815
------------
11,104,919
- -------------------------------------------------------------------------------------------------------------------------
NEW JERSEY--3.9%
35,000 NJ EFA (Fairleigh Dickinson University), Series C 6.625 07/01/2023 35,890
- -------------------------------------------------------------------------------------------------------------------------
6,770,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.000 06/01/2037 6,070,659
- -------------------------------------------------------------------------------------------------------------------------
9,800,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.125 06/01/2042 8,858,318
- -------------------------------------------------------------------------------------------------------------------------
7,000,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.250 06/01/2043 6,442,660
- -------------------------------------------------------------------------------------------------------------------------
3,250,000 NJ Transit Corp. ROLs, Series 15 a 11.200 f 09/15/2015 4,465,533
------------
25,873,060
- -------------------------------------------------------------------------------------------------------------------------
NEW MEXICO--2.8%
7,895,000 Eldorado, NM Area Water & Sanitation District 6.000 02/01/2023 7,828,761
- -------------------------------------------------------------------------------------------------------------------------
25,000 Farmington, NM Pollution Control
(Public Service Company of New Mexico) 6.300 12/01/2016 26,384
- -------------------------------------------------------------------------------------------------------------------------
280,000 Farmington, NM Pollution Control
(Southern California Edison Company) 5.875 06/01/2023 286,373
- -------------------------------------------------------------------------------------------------------------------------
6,000,000 Lordburg, NM Pollution Control (Phelps Dodge Corp.) 6.500 04/01/2013 6,105,600
- -------------------------------------------------------------------------------------------------------------------------
160,000 NM Hospital Equipment Loan Council
(Memorial Medical Center) 5.500 06/01/2028 163,546
- -------------------------------------------------------------------------------------------------------------------------
3,000,000 NM Hsg. Authority (Villa Del Oso Apartments) 6.250 01/01/2031 2,988,180
15 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------
NEW MEXICO Continued
$ 1,290,000 NM Hsg. Authority (Villa Del Oso Apartments) 7.500% 01/01/2038 $ 1,269,631
------------
18,668,475
- -------------------------------------------------------------------------------------------------------------------------
NEW YORK--0.0%
50,000 NYC GO RIBS 10.371 f 08/27/2015 51,750
- -------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA--0.1%
95,000 Charlotte, NC Mtg. (Tryon Hills Associate) 5.875 01/01/2025 98,468
- -------------------------------------------------------------------------------------------------------------------------
140,000 NC Eastern Municipal Power Agency, Series B 5.500 01/01/2017 140,416
- -------------------------------------------------------------------------------------------------------------------------
85,000 NC Eastern Municipal Power Agency, Series B 5.500 01/01/2021 85,030
- -------------------------------------------------------------------------------------------------------------------------
455,000 NC Eastern Municipal Power Agency, Series B 5.500 01/01/2021 456,138
- -------------------------------------------------------------------------------------------------------------------------
20,000 NC Eastern Municipal Power Agency, Series B 6.250 01/01/2023 20,272
- -------------------------------------------------------------------------------------------------------------------------
30,000 NC HFA (Multifamily Hsg.) 5.450 09/01/2024 30,398
------------
830,722
- -------------------------------------------------------------------------------------------------------------------------
OHIO--3.0%
440,000 Cleveland, OH Rock Glen Hsg. Assistance Corp.
(Ambleside Apartments) 7.000 06/01/2018 470,554
- -------------------------------------------------------------------------------------------------------------------------
12,000,000 Coshocton County, OH Solid Waste Disposal
(Stone Container Corp.) 7.875 08/01/2013 12,254,640
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 Greene County, OH University Hsg.
(Central State University) 5.625 09/01/2032 1,549,290
- -------------------------------------------------------------------------------------------------------------------------
2,500,000 Montgomery County, OH Health Care Facilities
(Evangelical Retirement Villages) 6.250 02/01/2022 1,380,475
- -------------------------------------------------------------------------------------------------------------------------
80,000 OH Air Quality Devel. Authority
(Dayton Power & Light Company) 6.400 08/15/2027 81,648
- -------------------------------------------------------------------------------------------------------------------------
25,000 OH Municipal Electric Generation Agency 5.375 02/15/2024 25,302
- -------------------------------------------------------------------------------------------------------------------------
3,000,000 OH Water Devel. Authority
(Cleveland Electric Illuminating Company) 7.700 08/01/2025 3,262,830
- -------------------------------------------------------------------------------------------------------------------------
10,000 OH Water Devel. Authority
(Dayton Power & Light Company) 6.400 08/15/2027 10,230
- -------------------------------------------------------------------------------------------------------------------------
450,000 Streetsboro, OH City School District GO 7.125 12/01/2010 532,643
------------
19,567,612
- -------------------------------------------------------------------------------------------------------------------------
OKLAHOMA--0.9%
6,960,000 Tulsa, OK Municipal Airport Trust (American Airlines) 6.250 06/01/2020 6,090,070
- -------------------------------------------------------------------------------------------------------------------------
OREGON--0.0%
65,000 OR Hsg. & Community Services (Single Family Mtg.) 6.400 07/01/2018 66,682
- -------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--4.8%
8,200,000 Allegheny County, PA HDA
(West Penn Allegheny Health System) 9.250 11/15/2030 8,885,602
- -------------------------------------------------------------------------------------------------------------------------
5,000,000 Beaver County, PA IDA
(Cleveland Electric Illuminating Company) 7.750 07/15/2025 5,424,150
- -------------------------------------------------------------------------------------------------------------------------
25,000 Beaver County, PA IDA (Toledo Edison Company) 7.750 05/01/2020 27,303
16 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Continued
$ 1,500,000 Chester County, PA H&EFA (Jenners Pond) 7.750% 07/01/2034 $ 1,506,060
- -------------------------------------------------------------------------------------------------------------------------
6,000,000 Cumberland County, PA Municipal Authority
(Wesley Affiliated Services) 7.250 01/01/2035 5,984,760
- -------------------------------------------------------------------------------------------------------------------------
4,000,000 Northumberland County, PA IDA (NHS Youth Services) 7.750 02/15/2029 3,921,480
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Philadelphia, PA H&HEFA
(Centralized Comprehensive Human Services) 7.250 01/01/2021 1,014,820
- -------------------------------------------------------------------------------------------------------------------------
1,200,000 Philadelphia, PA H&HEFA
(Temple University Children's Medical Center) 5.625 06/15/2019 1,166,376
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Philadelphia, PA IDA (Baptist Home of Philadelphia) 5.500 11/15/2018 942,540
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Philadelphia, PA Redevel. Authority
(Beech Student Hsg. Complex), Series A 5.625 07/01/2023 1,050,650
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 Philadelphia, PA Redevel. Authority
(Beech Student Hsg. Complex), Series A 5.625 07/01/2028 1,552,545
------------
31,476,286
- -------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND--0.4%
1,000,000 RI H&EBC (Roger Williams University) 5.500 11/15/2030 1,046,440
- -------------------------------------------------------------------------------------------------------------------------
40,000 RI Hsg. & Mtg. Finance Corp.
(Homeownership Opportunity) 6.500 04/01/2027 40,660
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 Tiverton, RI Special Obligation Tax
(Mount Hope Bay Village) 6.875 05/01/2022 1,514,055
------------
2,601,155
- -------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA--1.1%
4,000,000 Greenville County, SC School District
(Building Equity Sooner Tomorrow) 5.875 12/01/2019 4,469,080
- -------------------------------------------------------------------------------------------------------------------------
180,000 Piedmont, SC Municipal Power Agency 5.750 01/01/2024 180,032
- -------------------------------------------------------------------------------------------------------------------------
35,000 Piedmont, SC Municipal Power Agency 6.600 01/01/2021 35,319
- -------------------------------------------------------------------------------------------------------------------------
9,000,000 SC Connector 2000 Assoc. Toll Road, Series B 0.000 z 01/01/2026 2,340,450
------------
7,024,881
- -------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA--2.0%
6,000,000 SD Educational Enhancement Funding Corp.
Tobacco Settlement 6.500 06/01/2032 5,749,020
- -------------------------------------------------------------------------------------------------------------------------
7,500,000 Sioux Falls, SD Health Facilities (Rummel Memorial Home) 6.750 11/15/2033 7,500,000
------------
13,249,020
- -------------------------------------------------------------------------------------------------------------------------
TENNESSEE--0.9%
3,500,000 Bradley County, TN IDB (Olin Corp.) 6.625 11/01/2017 3,769,115
- -------------------------------------------------------------------------------------------------------------------------
100,000 Hamilton County, TN IDB (Park at 58) 6.700 03/01/2021 87,324
- -------------------------------------------------------------------------------------------------------------------------
40,000 Memphis, TN HE&HF (Multifamily) 6.450 04/01/2026 40,611
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 Shelby County, TN HE&HF
(Cornerstone-Cameron & Stonegate) 6.000 07/01/2028 1,296,480
- -------------------------------------------------------------------------------------------------------------------------
15,000 Shelby County, TN HE&HF (Harbour Apartments), Series A 6.000 04/15/2018 14,718
17 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------
TENNESSEE Continued
$ 225,000 Shelby County, TN HE&HF (Harbour Apartments),
Series A 6.000% 04/15/2024 $ 225,335
- -------------------------------------------------------------------------------------------------------------------------
495,000 Shelby County, TN HE&HF
(Tennessee Affordable Hsg. Foundation) 7.750 03/20/2027 524,121
- -------------------------------------------------------------------------------------------------------------------------
35,000 Shelby County, TN HE&HF (Windsor Apartments),
Series A 6.750 10/01/2017 35,400
- -------------------------------------------------------------------------------------------------------------------------
195,000 Springfield, TN HDC (Multifamily Hsg.) 6.100 07/15/2022 196,363
------------
6,189,467
- -------------------------------------------------------------------------------------------------------------------------
TEXAS--14.6%
8,250,000 Austin, TX Convention Enterprises (Convention Center) 5.750 01/01/2032 8,723,880
- -------------------------------------------------------------------------------------------------------------------------
10,765,000 Bexar County, TX HFC (American Opportunity Hsg.) 6.750 12/01/2037 10,389,732
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Bexar County, TX HFC
(The Army Retirement Residence Foundation) 6.300 07/01/2032 1,049,080
- -------------------------------------------------------------------------------------------------------------------------
75,000 Dallas, TX Hsg. (Cedar Glen Apartments) 7.750 12/01/2009 75,587
- -------------------------------------------------------------------------------------------------------------------------
500,000 Dallas, TX Hsg. Corp. (Section 8) 7.850 08/01/2013 510,500
- -------------------------------------------------------------------------------------------------------------------------
115,000 El Paso County, TX HFC
(American Village Communities), Series A 6.250 12/01/2020 114,515
- -------------------------------------------------------------------------------------------------------------------------
240,000 El Paso County, TX HFC
(El Paso American Hsg. Foundation), Series A 6.375 12/01/2032 237,941
- -------------------------------------------------------------------------------------------------------------------------
570,000 Garza County, TX Public Facility Corp. 7.500 10/01/2019 602,285
- -------------------------------------------------------------------------------------------------------------------------
95,000 Harris County, TX IDC (GATX Terminals Corp.) 6.625 02/01/2024 97,369
- -------------------------------------------------------------------------------------------------------------------------
12,000,000 Harris County, TX IDC (Kinder Morgan Energy Partners) 6.950 02/01/2022 12,331,200
- -------------------------------------------------------------------------------------------------------------------------
3,730,000 Harris County, TX Toll Road RITES a 17.195 f 08/15/2024 4,827,590
- -------------------------------------------------------------------------------------------------------------------------
165,000 Keller, TX Independent School District GO 5.400 08/15/2023 175,987
- -------------------------------------------------------------------------------------------------------------------------
20,350,000 Matagorda County, TX Navigation District
(Centerpoint Energy) 8.000 05/01/2029 22,341,248
- -------------------------------------------------------------------------------------------------------------------------
250,000 Matagorda County, TX Navigation District
(Central Power & Light Company) 6.000 07/01/2028 253,635
- -------------------------------------------------------------------------------------------------------------------------
1,100,000 North Central, TX HFDC (Northwest Senior Hsg. Corp.) 7.000 11/15/2010 1,129,667
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 North Central, TX HFDC (Northwest Senior Hsg. Corp.) 7.250 11/15/2019 2,047,400
- -------------------------------------------------------------------------------------------------------------------------
3,000,000 North Central, TX HFDC (Northwest Senior Hsg. Corp.) 7.500 11/15/2029 3,079,410
- -------------------------------------------------------------------------------------------------------------------------
1,330,000 Panhandle, TX HFA (Amarillo Affordable Hsg.) 6.750 03/01/2031 1,368,224
- -------------------------------------------------------------------------------------------------------------------------
1,680,000 Retama, TX Devel. Corp. (Retama Racetrack) 10.000 12/15/2019 2,737,241
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Rio Grande Valley, TX HFDC
(Golden Palms Rehabilitation Health) 6.400 08/01/2012 2,027,460
- -------------------------------------------------------------------------------------------------------------------------
45,000 Rio Grande Valley, TX HFDC
(Valley Baptist Medical Center) 6.375 08/01/2022 45,615
- -------------------------------------------------------------------------------------------------------------------------
10,650,000 Sabine River Authority, TX Pollution Control
(TXU Energy Company) 5.500 05/01/2022 11,473,352
- -------------------------------------------------------------------------------------------------------------------------
4,000,000 Sabine River Authority, TX Pollution Control
(TXU Energy Company) 6.150 08/01/2022 4,216,760
18 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------
TEXAS Continued
$ 750,000 Titis County, TX Fresh Water Supply District
(American Electric Power Company) 8.200% 08/01/2011 $ 781,800
- -------------------------------------------------------------------------------------------------------------------------
445,000 TX Affordable Hsg. Corp.
(Ashton Place & Woodstock Apartments) 6.300 08/01/2033 419,515
- -------------------------------------------------------------------------------------------------------------------------
455,000 TX Panhandle HFA (Amarillo Affordable Hsg.) 6.625 03/01/2020 470,329
- -------------------------------------------------------------------------------------------------------------------------
25,000 Westador, TX Municipal Utility District GO 6.875 03/01/2009 25,421
- -------------------------------------------------------------------------------------------------------------------------
4,840,000 Wichita County, TX HFDC
(Wichita Falls Retirement Foundation) 6.250 01/01/2028 4,673,940
- -------------------------------------------------------------------------------------------------------------------------
10,000 Wood Glen, TX HFC (Copperwood II), Series C 7.650 07/01/2023 10,330
------------
96,237,013
- -------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--0.3%
1,500,000 Puerto Rico Municipal Finance Agency RITES a 10.157 f 08/01/2015 2,020,050
- -------------------------------------------------------------------------------------------------------------------------
UTAH--0.3%
70,000 Emery County, UT Pollution Control (Pacificorp) 5.650 11/01/2023 71,585
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Murray City, UT Hospital RITES a 15.695 f 05/15/2022 2,107,160
------------
2,178,745
- -------------------------------------------------------------------------------------------------------------------------
VERMONT--0.0%
175,000 VT EDA (Wake Robin Corp.) 6.000 03/01/2022 186,260
- -------------------------------------------------------------------------------------------------------------------------
100,000 VT EDA (Wake Robin Corp.) 6.300 03/01/2033 106,920
------------
293,180
- -------------------------------------------------------------------------------------------------------------------------
VIRGINIA--3.4%
1,170,000 Hopewell, VA IDA (Stone Container Corp.) 8.250 05/01/2010 1,195,997
- -------------------------------------------------------------------------------------------------------------------------
8,610,000 Hopewell, VA IDA (Stone Container Corp.) 8.250 06/01/2016 8,802,245
- -------------------------------------------------------------------------------------------------------------------------
3,000,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 z 08/15/2008 1,761,810
- -------------------------------------------------------------------------------------------------------------------------
3,100,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 z 08/15/2009 1,619,192
- -------------------------------------------------------------------------------------------------------------------------
35,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 z 08/15/2015 17,784
- -------------------------------------------------------------------------------------------------------------------------
2,715,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 z 08/15/2017 1,208,094
- -------------------------------------------------------------------------------------------------------------------------
1,755,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 z 08/15/2018 733,520
- -------------------------------------------------------------------------------------------------------------------------
740,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 z 08/15/2020 276,531
- -------------------------------------------------------------------------------------------------------------------------
8,920,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 z 08/15/2021 3,140,732
- -------------------------------------------------------------------------------------------------------------------------
8,365,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 z 08/15/2022 2,773,165
- -------------------------------------------------------------------------------------------------------------------------
1,100,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.250 08/15/2008 1,057,463
19 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------
VIRGINIA Continued
$ 25,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.500% 08/15/2028 $ 24,800
------------
22,611,333
- -------------------------------------------------------------------------------------------------------------------------
WASHINGTON--1.2%
2,500,000 King County, WA Sewer RITES a 16.195 f 01/01/2024 2,924,350
- -------------------------------------------------------------------------------------------------------------------------
3,250,000 Vancouver, WA Downtown Redevel. Authority
(Conference Center) 6.000 01/01/2034 3,458,423
- -------------------------------------------------------------------------------------------------------------------------
1,350,000 WA Hsg. Finance Commission (Nickerson Area Properties) 5.300 01/01/2028 1,374,489
------------
7,757,262
- -------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA--0.5%
350,000 Kanawha County, WV Commercial Devel.
(Kroger Company) 8.000 10/01/2011 362,775
- -------------------------------------------------------------------------------------------------------------------------
1,540,000 West Liberty State College, WV, Series A 6.000 06/01/2023 1,559,050
- -------------------------------------------------------------------------------------------------------------------------
1,695,000 West Liberty State College, WV, Series A 6.125 06/01/2028 1,718,883
------------
3,640,708
- -------------------------------------------------------------------------------------------------------------------------
WISCONSIN--0.6%
130,000 WI H&EDA, Series A 6.850 11/01/2012 130,224
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 WI H&EFA (Hess Memorial Hospital Association) 7.875 11/01/2022 1,607,640
- -------------------------------------------------------------------------------------------------------------------------
1,075,000 WI H&EFA (WMA, MHCC, MVS Obligated Group) 5.600 08/15/2023 1,077,720
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 WI H&EFA (WMA, MHCC, MVS Obligated Group) 5.750 08/15/2026 1,001,790
------------
3,817,374
- -------------------------------------------------------------------------------------------------------------------------
WYOMING--0.0%
10,000 Weston County, WY Pollution Control (Black Hills Corp.) 6.700 06/01/2010 10,087
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $642,797,602)--101.4% 669,397,440
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(1.4) (9,282,327)
------------
NET ASSETS--100.0% $660,115,113
============
FOOTNOTES TO STATEMENT OF INVESTMENTS
a. Identifies issues considered to be illiquid. See Note 5 of Notes to Financial
Statements.
f. Represents the current interest rate for a variable rate bond known as an
"inverse floater". See Note 1 of Notes to Financial Statements.
v. Represents the current interest rate for a variable or increasing rate
security.
z. Represents a zero coupon bond.
20 | OPPENHEIMER AMT-FREE MUNICIPALS
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
BFC Business Finance Corp.
CDA Communities Development Authority
CDD Community Development District
COP Certificates of Participation
DFA Development Finance Authority
DFB Development Finance Board
ECFA Educational and Cultural Facilities Authority
EDA Economic Development Authority
EDC Economic Development Corporation
EF&CD Environmental Facilities & Community Development
EFA Educational Facilities Authority
GO General Obligation
H&EBC Health & Educational Building Corporation
H&EDA Housing and Economic Development Authority
H&EFA Health and Educational Facilities Authority
H&HEFA Hospitals and Higher Education Facilities Authority
HDA Hospital Development Authority
HDC Housing Development Corp.
HE&HF Higher Educational and Housing Facilities
HE&HFA Higher Education and Health Facilities Authority
HFA Housing Finance Agency
HFC Housing Finance Corp.
HFDC Health Facilities Development Corp.
IDA Industrial Development Agency
IDB Industrial Development Board
IDC Industrial Development Corporation
IFA Interim Finance Authority
INFLOS Inverse Floating Rate Securities
MHCC Masonic Health Care Center
MVS Masonic Village on the Square
NYC New York City
RIBS Residual Interest Bonds
RITES Residual Interest Tax Exempt Security
ROLs Residual Option Longs
SAVRS Select Auction Rate Variable Securities
TASC Tobacco Settlement Asset-Backed Bonds
WMA Wisconsin Masonic Home
- --------------------------------------------------------------------------------
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 12.1%
AA 3.9
A 15.8
BBB 43.1
BB 2.1
B 2.8
CCC 1.1
CC 0.0
C 0.0
D 0.0
Not Rated 19.1
------
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.
21 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
JANUARY 31, 2004
- --------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $642,797,602)--
see accompanying statement $669,397,440
- -----------------------------------------------------------------------------------
Cash 1,008,889
- -----------------------------------------------------------------------------------
Receivables and other assets:
Interest 11,898,413
Investments sold 4,356,640
Shares of beneficial interest sold 1,242,052
Other 19,452
-------------
Total assets 687,922,886
- -----------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Notes payable to bank (interest rate 1.8125%
at January 31, 2004) 21,700,000
Investments purchased 4,303,598
Shares of beneficial interest redeemed 1,004,159
Dividends 419,190
Distribution and service plan fees 130,511
Trustees' compensation 129,697
Shareholder communications 84,018
Transfer and shareholder servicing agent fees 35,704
Other 896
-------------
Total liabilities 27,807,773
- -----------------------------------------------------------------------------------
NET ASSETS $660,115,113
=============
- -----------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Par value of shares of beneficial interest $ 67,962
- -----------------------------------------------------------------------------------
Additional paid-in capital 649,031,041
- -----------------------------------------------------------------------------------
Accumulated net investment income 3,469,934
- -----------------------------------------------------------------------------------
Accumulated net realized loss on investments (19,053,662)
- -----------------------------------------------------------------------------------
Net unrealized appreciation on investments 26,599,838
-------------
NET ASSETS $660,115,113
=============
22 | OPPENHEIMER AMT-FREE MUNICIPALS
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net
assets of $576,334,135 and 59,312,117 shares of beneficial interest
outstanding) $ 9.72
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $10.20
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $57,668,855 and 5,953,774 shares of beneficial interest
outstanding) $ 9.69
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $26,112,123 and 2,696,090 shares of beneficial interest
outstanding) $ 9.69
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JANUARY 31, 2004
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $23,179,888
- --------------------------------------------------------------------------------
EXPENSES
Management fees 1,715,890
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 651,259
Class B 300,567
Class C 123,980
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 199,795
Class B 21,344
Class C 10,452
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 5,188
Class B 554
Class C 214
- --------------------------------------------------------------------------------
Interest expense 164,801
- --------------------------------------------------------------------------------
Custodian fees and expenses 22,647
- --------------------------------------------------------------------------------
Trustees' compensation 17,097
- --------------------------------------------------------------------------------
Other 33,816
--------------
Total expenses 3,267,604
Less reduction to custodian expenses (2,261)
Less waiver of management fees (53,402)
Less voluntary waiver of transfer and
shareholder servicing agent fees--Class A (7,185)
Less voluntary waiver of transfer and
shareholder servicing agent fees--Class B (205)
Less voluntary waiver of transfer and
shareholder servicing agent fees--Class C (134)
--------------
Net expenses 3,204,417
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 19,975,471
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
Net realized gain on investments 5,212,237
- --------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on investments 27,771,119
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $52,958,827
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
(UNAUDITED) 2003
- ----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 19,975,471 $ 37,698,893
- ----------------------------------------------------------------------------------------------------------
Net realized gain 5,212,237 12,591,647
- ----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 27,771,119 (34,457,664)
-------------------------------
Net increase in net assets resulting from operations 52,958,827 15,832,876
- ----------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (15,373,235) (31,620,780)
Class B (1,405,230) (3,245,063)
Class C (578,716) (1,069,217)
- ----------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (7,975,647) 1,779,720
Class B (8,718,640) (7,142,459)
Class C 1,248,120 3,757,431
- ----------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) 20,155,479 (21,707,492)
- ----------------------------------------------------------------------------------------------------------
Beginning of period 639,959,634 661,667,126
-------------------------------
End of period (including accumulated net investment
income of $3,469,934 and $851,644, respectively) $660,115,113 $639,959,634
===============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER AMT-FREE 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 $9.19 $9.48 $9.57 $9.35 $10.02 $10.27
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .30 .57 .50 .52 .52 .52
Net realized and unrealized gain (loss) .49 (.32) (.10) .22 (.61) (.25)
------------------------------------------------------------------------
Total from investment operations .79 .25 .40 .74 (.09) .27
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.26) (.54) (.49) (.52) (.52) (.52)
Distributions from net realized gain -- -- -- -- (.06) --
------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.26) (.54) (.49) (.52) (.58) (.52)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.72 $9.19 $9.48 $9.57 $ 9.35 $10.02
========================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 8.70% 2.46% 4.39% 8.03% (0.85)% 2.57%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $576,334 $553,344 $568,935 $584,325 $482,152 $568,673
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $561,512 $569,881 $568,951 $531,286 $515,007 $587,197
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 6.24% 5.82% 5.35% 5.38% 5.54% 5.00%
Total expenses 0.90% 0.93% 0.88% 0.85% 3 0.90% 3 0.87% 3
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 0.88% 0.88% 3 0.85% 3 N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 21% 99% 31% 20% 14% 18%
<FN>
1. Assumes an initial investment on the business day before the first day of the
fiscal period, with all dividends and distributions reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Sales charges are not
reflected in the total returns. Total returns are not annualized for periods of
less than one full year. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER AMT-FREE MUNICIPALS
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 $9.17 $9.45 $9.55 $9.33 $10.00 $10.25
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .26 .49 .43 .45 .43 .44
Net realized and unrealized gain (loss) .49 (.31) (.11) .21 (.60) (.25)
-----------------------------------------------------------------
Total from investment operations .75 .18 .32 .66 (.17) .19
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.23) (.46) (.42) (.44) (.44) (.44)
Distributions from net realized gain -- -- -- -- (.06) --
-----------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.23) (.46) (.42) (.44) (.50) (.44)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.69 $9.17 $9.45 $9.55 $ 9.33 $10.00
=================================================================
- --------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 8.19% 1.80% 3.50% 7.23% (1.62)% 1.78%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $57,669 $63,104 $72,241 $76,880 $57,204 $90,022
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $59,620 $67,721 $73,571 $65,563 $70,072 $96,352
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.47% 5.04% 4.58% 4.60% 4.75% 4.22%
Total expenses 1.67% 1.69% 1.65% 1.62% 3 1.67% 3 1.65% 3
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.65% 1.64% 3 1.62% 3 N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 21% 99% 31% 20% 14% 18%
<FN>
1. Assumes an initial investment on the business day before the first day of the
fiscal period, with all dividends and distributions reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Sales charges are not
reflected in the total returns. Total returns are not annualized for periods of
less than one full year. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER AMT-FREE MUNICIPALS
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
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 $9.16 $9.45 $9.55 $9.33 $10.00 $10.25
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .26 .49 .43 .44 .44 .44
Net realized and unrealized gain (loss) .50 (.32) (.11) .22 (.61) (.25)
-----------------------------------------------------------------------
Total from investment operations .76 .17 .32 .66 (.17) .19
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.23) (.46) (.42) (.44) (.44) (.44)
Distributions from net realized gain -- -- -- -- (.06) --
-----------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.23) (.46) (.42) (.44) (.50) (.44)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.69 $9.16 $9.45 $9.55 $ 9.33 $10.00
=======================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 8.30% 1.67% 3.50% 7.23% (1.62)% 1.78%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $26,112 $23,511 $20,491 $17,134 $12,173 $18,621
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $24,620 $22,345 $17,776 $14,506 $14,497 $16,868
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.44% 5.04% 4.57% 4.60% 4.76% 4.22%
Total expenses 1.68% 1.71% 1.65% 1.62% 3 1.67% 3 1.65% 3
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.66% 1.66% 3 1.62% 3 N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 21% 99% 31% 20% 14% 18%
<FN>
1. Assumes an initial investment on the business day before the first day of the
fiscal period, with all dividends and distributions reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Sales charges are not
reflected in the total returns. Total returns are not annualized for periods of
less than one full year. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer AMT-Free Municipals (the Fund), formerly Oppenheimer Municipal Bond
Fund, is registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Fund's investment objective is to
seek as high a level of current interest income exempt from federal income
taxes as is available from investing in municipal securities, while attempting
to preserve capital. The Fund's investment advisor is OppenheimerFunds, Inc.
(the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges 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 20% of its total assets in inverse
floaters. Inverse floaters amount to $59,318,498 as of January 31, 2004.
Including the effect of leverage, inverse floaters represent 17.11% of the
Fund's total assets as of January 31, 2004.
29 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 $21,042,312 expiring
by 2010. 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 $5,212,237 and $6,676,926, 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 $ 8,717,772
2010 17,536,777
-----------
Total $26,254,549
===========
- --------------------------------------------------------------------------------
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 $7,022 and payments of $10,506 were made to retired trustees, resulting in
an accumulated liability of $113,307 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 materially affect
the Fund's assets, liabilities or net investment income per share. Amounts will
be deferred until distributed in accordance to the Plan.
30 | OPPENHEIMER AMT-FREE MUNICIPALS
- --------------------------------------------------------------------------------
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 $0.001 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 4,295,958 $ 40,445,724 11,586,716 $ 109,478,974
Dividends and/or
distributions reinvested 1,106,744 10,500,741 2,319,533 21,918,195
Redeemed (6,281,065) (58,922,112) (13,735,304) (129,617,449)
-----------------------------------------------------------------------
Net increase (decrease) (878,363) $ (7,975,647) 170,945 $ 1,779,720
=======================================================================
CLASS B
Sold 386,522 $ 3,640,636 1,338,544 $ 12,604,309
Dividends and/or
distributions reinvested 87,340 825,539 204,561 1,927,009
Redeemed (1,405,332) (13,184,815) (2,301,079) (21,673,777)
-----------------------------------------------------------------------
Net decrease (931,470) $ (8,718,640) (757,974) $ (7,142,459)
=======================================================================
CLASS C
Sold 419,428 $ 3,960,674 1,064,274 $ 10,051,076
Dividends and/or
distributions reinvested 44,905 425,103 85,145 802,033
Redeemed (333,844) (3,137,657) (752,029) (7,095,678)
-----------------------------------------------------------------------
Net increase 130,489 $ 1,248,120 397,390 $ 3,757,431
=======================================================================
31 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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
$127,036,738 and $151,772,629, 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 over $1 billion. The Manager voluntarily agreed to waive a portion
of its advisory fee at an annual rate equal to 0.10% of each class's average
daily net assets while the Fund's trailing one-year performance at the end of
the preceding calendar quarter is in the fifth quintile of the Fund's Lipper
peer group. The Manager will voluntarily waive a portion of its advisory fee at
an annual rate equal to 0.05% of each class's average daily net assets while
the Fund's trailing one-year performance at the end of the preceding calendar
quarter is in the fourth quintile of the Fund's Lipper peer group. The
foregoing waiver may be amended or withdrawn by the Manager at any time. As a
result of this agreement the Fund was reimbursed $53,402 for the six months
ended January 31, 2004.
- --------------------------------------------------------------------------------
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 $229,629 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 0.25% 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.
32 | OPPENHEIMER AMT-FREE MUNICIPALS
- --------------------------------------------------------------------------------
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
0.25% 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
$1,688,013 and $537,337, 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 $65,207 $10,696 $72,189 $3,031
- --------------------------------------------------------------------------------
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 10% 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 $59,266,748, which represents 8.98% of the Fund's net assets.
- --------------------------------------------------------------------------------
6. BANK BORROWINGS
The Fund may borrow up to one-third of its total assets from a bank to purchase
portfolio securities, or for temporary and emergency purposes. The purchase of
securities with borrowed funds creates leverage in the Fund. The Fund has
entered into an agreement which enables it to participate with certain other
Oppenheimer funds in a committed, unsecured line of credit with a bank, which
permits borrowings up to $540 million, collectively. Interest is charged to
each fund, based on its borrowings, at
33 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. BANK BORROWINGS Continued
a rate equal to the 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 $21,700,000 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 $18,146,523 at an average daily interest rate
of 1.724%. The Fund had gross borrowings and gross loan repayments of
$117,600,000 and $131,000,000, respectively, during the six months ended
January 31, 2004. The maximum amount of borrowings outstanding at any month-end
was $29,500,000. The Fund paid commitment fees of $2,719 and interest of
$161,603 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.
34 | OPPENHEIMER AMT-FREE 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)