UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-5867
Oppenheimer New Jersey Municipal Fund
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
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.
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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--105.0%
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NEW JERSEY--89.4%
$ 1,795,000 Camden County Improvement Authority
(Cooper Health System) 6.000% 02/15/2027 $ 1,891,176
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80,000 Essex County Improvement Authority 6.800 11/01/2021 81,744
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20,000 Gloucester County Improvement Authority
(Governmental Leasing Program) 5.900 04/01/2007 20,369
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5,000 Gloucester County Utilities Authority 5.125 01/01/2013 5,014
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845,000 Higher Education Student Assistance Authority
Student Loan 6.000 06/01/2015 902,874
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3,755,000 Hudson County Improvement Authority (Koppers Site) 6.125 01/01/2029 3,699,126
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1,000,000 Hudson County Solid Waste Improvement Authority 6.000 01/01/2029 979,070
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10,000 Hudson Improvement Authority 6.625 08/01/2025 10,247
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4,000,000 Middlesex County Pollution Control Authority
(Amerada Hess Corp.) 7.875 06/01/2022 4,152,480
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20,000 Middletown Township Hsg. Authority (Alice V. Tomaso) 6.000 02/01/2016 20,157
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35,000 New Brunswick Hsg. & Urban Devel. Authority 5.500 08/01/2011 35,811
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135,000 NJ EDA (American Airlines) 7.100 11/01/2031 105,982
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100,000 NJ EDA (Cadbury at Cherry Hill) 5.500 07/01/2018 104,582
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5,985,000 NJ EDA (Continental Airlines) 6.250 09/15/2019 5,427,557
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85,000 NJ EDA (Continental Airlines) 6.250 09/15/2029 75,113
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2,020,000 NJ EDA (Continental Airlines) 6.400 09/15/2023 1,830,746
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3,500,000 NJ EDA (Continental Airlines) 9.000 06/01/2033 3,876,145
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100,000 NJ EDA (Courthouse Convalescent Center) 8.700 02/01/2014 100,105
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100,000 NJ EDA (Devereux Foundation) 5.450 05/01/2027 106,544
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50,000 NJ EDA (Elizabethtown Water Company) 5.600 12/01/2025 52,028
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15,000,000 NJ EDA (Fairleigh Dickinson University), Series D 6.000 07/01/2025 15,500,250
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255,000 NJ EDA (Hackensack Water Company) 5.800 03/01/2024 260,896
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25,000 NJ EDA (Hackensack Water Company) 5.900 03/01/2024 25,533
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2,000,000 NJ EDA (Jersey Central Power & Light) 7.100 07/01/2015 2,095,400
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2,500,000 NJ EDA (Kaplowski Road Landfill) 6.500 04/01/2031 2,726,750
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1,000,000 NJ EDA (Masonic Charity Foundation of NJ) 5.500 06/01/2031 1,062,550
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750,000 NJ EDA (Masonic Charity Foundation of NJ) 6.000 06/01/2025 835,140
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20,000 NJ EDA (Middlesex Water Company) 5.250 10/01/2023 20,268
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30,000 NJ EDA (NJ American Water Company) 5.350 06/01/2023 30,670
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10,000 NJ EDA (NJ American Water Company) 5.500 06/01/2023 10,139
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500,000 NJ EDA (NJ American Water Company) 5.950 11/01/2029 539,100
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15,000 NJ EDA (NJ American Water Company) 6.000 05/01/2036 16,341
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520,000 NJ EDA (NJ American Water Company) 6.875 11/01/2034 550,857
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15,000 NJ EDA (NJ Natural Gas Company) 5.375 08/01/2023 15,233
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5,000 NJ EDA (NJ Natural Gas Company) 5.375 08/01/2023 5,112
9 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
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STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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NEW JERSEY Continued
$ 915,000 NJ EDA (NUI Corp.) 5.250% 11/01/2033 $ 922,942
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40,000 NJ EDA (NUI Corp.) 5.700 06/01/2032 42,358
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50,000 NJ EDA (NUI Corp.) 6.350 10/01/2022 52,570
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2,000,000 NJ EDA (Public Schools Small Project Loan Program) RITES a,w 16.696 f 09/01/2024 2,330,560
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10,000 NJ EDA (Public Schools Small Project Loan Program) 5.350 08/15/2010 10,231
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215,000 NJ EDA (Public Schools Small Project Loan Program) 5.400 08/15/2013 219,962
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620,000 NJ EDA (Public Service Electric & Gas) 6.400 05/01/2032 639,660
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25,000 NJ EDA (Rutgers University) 6.100 07/01/2014 25,993
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4,335,000 NJ EDA (RWJ Hospital/CCC/
RWJ Health Care Corp. Obligated Group) 6.500 07/01/2024 4,510,134
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205,000 NJ EDA (Seniorcare of Hamilton) 8.350 11/01/2030 208,383
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1,500,000 NJ EDA (St. Francis Life Care Corp.) 5.600 10/01/2012 1,453,065
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2,000,000 NJ EDA (St. Francis Life Care Corp.) 5.750 10/01/2023 1,771,880
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480,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2019 492,989
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510,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2020 523,984
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545,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2021 560,734
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575,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2022 590,767
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610,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2023 626,196
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650,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2024 666,257
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690,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2025 707,257
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1,500,000 NJ EDA (Trigen-Trenton District Energy Company) 6.200 12/01/2010 1,532,880
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1,000,000 NJ EDA (United Methodist Homes of NJ) 5.125 07/01/2025 889,160
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2,000,000 NJ EDA Retirement Community (Cedar Crest Village) 7.250 11/15/2021 2,061,200
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2,100,000 NJ EDA Retirement Community (Seabrook Village) 8.000 11/15/2015 2,193,597
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1,460,000 NJ EFA (Bloomfield College) 6.850 07/01/2030 1,484,922
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770,000 NJ EFA (Fairleigh Dickinson University), Series C 6.625 07/01/2023 789,589
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1,290,000 NJ EFA (Fairleigh Dickinson University), Series G 5.700 07/01/2028 1,265,761
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3,540,000 NJ EFA (Georgian Court College) 6.500 07/01/2033 3,894,354
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10,000 NJ EFA (Monmouth University) 5.625 07/01/2013 10,211
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2,000,000 NJ EFA (Monmouth University) 5.800 07/01/2022 2,117,060
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70,000 NJ EFA (NJ Institute of Technology) 6.000 07/01/2024 72,587
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5,000 NJ EFA (Richard Stockton State College) 5.350 07/01/2023 5,112
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100,000 NJ EFA (University of Medicine and Dentistry) 5.250 12/01/2025 105,104
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10,000 NJ Health Care Facilities Financing Authority
(Allegany Health System Obligated Group) 5.200 07/01/2018 10,235
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10,000 NJ Health Care Facilities Financing Authority
(Burdette Tomlin Memorial Hospital) 6.500 07/01/2012 10,285
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25,000 NJ Health Care Facilities Financing Authority
(Dover General Hospital & Medical Center) 5.875 07/01/2012 25,949
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2,000,000 NJ Health Care Facilities Financing Authority
(Englewood Hospital & Medical Center) RITES a 16.867 f 08/01/2025 2,457,680
10 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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NEW JERSEY Continued
$ 205,000 NJ Health Care Facilities Financing Authority
(Jersey Shores Medical Center) 5.875% 07/01/2024 $ 208,106
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260,000 NJ Health Care Facilities Financing Authority
(JFK Medical Center) 5.500 07/01/2023 265,829
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100,000 NJ Health Care Facilities Financing Authority
(JFK Medical Center) 5.500 07/01/2023 102,242
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25,000 NJ Health Care Facilities Financing Authority
(ONP/MHC Obiligated Group) 5.375 07/01/2024 26,350
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1,000,000 NJ Health Care Facilities Financing Authority
(Robert Wood Johnson University Hospital) 5.750 07/01/2025 1,072,150
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30,000 NJ Health Care Facilities Financing Authority
(St. Charles Riverside Medical Center) 5.750 07/01/2014 31,130
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750,000 NJ Health Care Facilities Financing Authority
(St. Joseph's Hospital & Medical Center) 6.000 07/01/2026 831,953
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45,000 NJ HFA 5.375 11/01/2008 45,079
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10,000 NJ HFA 5.700 11/01/2005 10,004
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200,000 NJ Hsg. & Mortgage Finance Agency, Series A 5.550 05/01/2027 209,446
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15,000 NJ Hsg. & Mortgage Finance Agency, Series A 6.050 11/01/2020 15,539
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1,000,000 NJ Hsg. & Mortgage Finance Agency, Series A 6.250 05/01/2028 1,046,520
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30,000 NJ Hsg. & Mortgage Finance Agency, Series B 5.850 11/01/2012 32,857
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100,000 NJ Hsg. & Mortgage Finance Agency, Series E1 5.750 05/01/2025 106,371
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220,000 NJ Hsg. & Mortgage Finance Agency, Series J 6.200 10/01/2025 224,811
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35,000 NJ Hsg. & Mortgage Finance Agency, Series S 5.950 10/01/2017 36,856
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90,000 NJ Hsg. & Mortgage Finance Agency, Series S 6.000 10/01/2021 94,349
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1,100,000 NJ Hsg. & Mortgage Finance Agency, Series U 5.750 04/01/2018 1,159,202
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685,000 NJ Sports & Exposition Authority
(Convention Center Luxury Tax), Series A 5.500 07/01/2022 698,769
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40,000 NJ Sports & Exposition Authority, Series A 5.200 01/01/2024 40,289
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10,675,000 NJ Tobacco Settlement Financing Corp. (TASC) 5.750 06/01/2032 10,111,253
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5,500,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.000 06/01/2037 4,931,850
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8,700,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.125 06/01/2042 7,864,017
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1,000,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.250 06/01/2043 920,380
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75,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.375 06/01/2032 73,452
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10,000,000 NJ Tobacco Settlement Financing Corp. RITES a 10.150 f 06/01/2042 8,078,200
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2,500,000 NJ Transit Corp. ROLs, Series 15 a 11.200 f 09/15/2014 3,435,025
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25,000 Passaic Hsg. Authority (Multifamily) 5.750 11/01/2024 26,259
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5,155,000 Port Authority NY/NJ (Delta Air Lines) 6.950 06/01/2008 5,169,331
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2,500,000 Port Authority NY/NJ (KIAC) 6.750 10/01/2011 2,611,350
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1,005,000 Port Authority NY/NJ (KIAC) 6.750 10/01/2019 1,028,015
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2,305,000 Port Authority NY/NJ, 238th Series ROLs a 17.610 f 12/15/2032 2,711,418
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200,000 Port Authority NY/NJ, 94th Series 6.000 12/01/2014 209,166
11 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
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STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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NEW JERSEY Continued
$ 30,000 Port Authority NY/NJ, 95th Series 6.125% 07/15/2022 $ 30,904
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25,000 Port Authority NY/NJ, 99th Series 6.125 07/15/2022 25,758
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75,000 Readington-Lebanon Sewage Authority 5.250 01/01/2013 75,972
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20,000 Riverside Township GO 5.450 12/01/2010 20,030
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100,000 Salem County Industrial Pollution Control Financing
Authority (Atlantic City Electric Company) 5.600 11/01/2025 102,084
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150,000 Salem County Industrial Pollution Control Financing
Authority (Public Service Electric & Gas) 5.450 02/01/2032 152,795
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450,000 Salem County Industrial Pollution Control Financing
Authority (Public Service Electric & Gas) 6.250 06/01/2031 465,912
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170,000 Salem County Pollution Control Financing Authority
(E.I. Dupont De Nemours) 6.125 07/15/2022 171,668
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280,000 Salem County Pollution Control Financing Authority
(E.I. Dupont De Nemours) 6.500 11/15/2021 281,918
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1,100,000 Salem County Pollution Control Financing Authority
(Public Service Electric & Gas) 5.750 04/01/2031 1,142,471
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60,000 Sayerville Water GO 5.900 12/01/2007 60,810
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50,000 South Jersey Transit Authority (The Raytheon Company) 6.150 01/01/2022 50,512
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35,000 Union County Improvement Authority 5.400 04/01/2008 35,238
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35,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.350 06/01/2023 36,002
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25,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.375 06/01/2018 26,064
------------
138,558,423
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U.S. POSSESSIONS--15.6%
1,475,000 Northern Mariana Islands, Series A 6.250 03/15/2028 1,513,527
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3,000,000 Northern Mariana Islands, Series A 6.750 10/01/2033 3,075,150
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10,000 Puerto Rico Electric Power Authority 6.000 07/01/2014 10,395
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100,000 Puerto Rico ITEMECF (Ana G. Mendez University) 5.375 02/01/2019 103,297
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965,000 Puerto Rico ITEMECF (Congeneration Facilities) 6.625 06/01/2026 1,022,263
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1,000,000 Puerto Rico Municipal Finance Agency RITES a 10.157 f 08/01/2015 1,346,700
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6,400,000 Puerto Rico Port Authority (American Airlines), Series A 6.250 06/01/2026 5,024,384
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110,000 Puerto Rico Port Authority (American Airlines), Series A 6.300 06/01/2023 86,358
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15,000 Puerto Rico Port Authority, Series D 6.000 07/01/2021 15,319
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215,000 University of Puerto Rico, Series O 5.375 06/01/2030 225,520
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1,000,000 University of V.I. , Series A 6.000 12/01/2024 1,068,930
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40,000 University of V.I. , Series A 6.250 12/01/2029 43,217
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105,000 V.I. Hsg. Finance Authority, Series A 6.500 03/01/2025 108,027
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5,000,000 V.I. Public Finance Authority (Hovensa Coker) 6.500 07/01/2021 5,408,900
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110,000 V.I. Public Finance Authority, Series A 6.125 10/01/2029 123,277
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1,515,000 V.I. Public Finance Authority, Series A 6.375 10/01/2019 1,714,904
12 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
PRINCIPAL MARKET VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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U.S. POSSESSIONS Continued
$ 300,000 V.I. Public Finance Authority, Series E 5.875% 10/01/2018 $ 308,121
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2,500,000 V.I. Public Finance Authority, Series E 6.000 10/01/2022 2,548,525
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290,000 V.I. Water & Power Authority 5.300 07/01/2018 292,607
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175,000 V.I. Water & Power Authority 5.300 07/01/2021 173,754
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24,213,175
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TOTAL INVESTMENTS, AT VALUE (COST $158,117,051)--105.0% 162,771,598
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LIABILITIES IN EXCESS OF OTHER ASSETS--(5.0) (7,807,155)
-------------
NET ASSETS--100.0% $154,964,443
=============
FOOTNOTES TO STATEMENT OF INVESTMENTS
a. Identifies issues considered to be illiquid. See Note 5 of Notes to Financial
Statements.
f. Represents the current interest rate for a variable rate bond known as an
"inverse floater". See Note 1 of Notes to Financial Statements.
w. When-issued security to be delivered and settled after January 31, 2004.
See Note 1 of Notes to Financial Statements.
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
CCC Continuing Care Center
EDA Economic Development Authority
EFA Educational Facilities Authority
GO General Obligation
HFA Housing Finance Agency
ITEMECF Industrial, Tourist, Educational, Medical and Environmental Community
Facilities
JFK John Fitzgerald Kennedy
MHC Meridian Hospitals Corp.
NY/NJ New York/New Jersey
ONP Ocean Nursing Pavillion, Inc.
RITES Residual Interest Tax Exempt Security
ROLs Residual Option Longs
RWJ Robert Wood Johnson
TASC Tobacco Settlement Asset-Backed Bonds
V.I. United States Virgin Islands
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INDUSTRY CONCENTRATIONS January 31, 2004
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY MARKET VALUE PERCENT
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Tobacco Settlements $31,979,152 19.7%
Higher Education 26,711,907 16.4
Airlines 21,595,616 13.3
Hospital/Health Care 11,654,345 7.2
Adult Living Facilities 10,575,080 6.5
Electric Utilities 8,766,664 5.4
Pollution Control 8,365,408 5.1
Education 6,728,937 4.1
Gas Utilities 5,190,695 3.2
Resource Recovery 4,750,509 2.9
Sales Tax Revenue 4,694,827 2.9
Marine/Aviation Facilities 4,587,836 2.8
General Obligation 4,441,880 2.7
Municipal Leases 3,490,632 2.1
Special Tax 2,726,750 1.7
Single Family Housing 1,656,102 1.0
Water Utilities 1,566,642 1.0
Multifamily Housing 1,515,186 0.9
13 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
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STATEMENT OF INVESTMENTS Unaudited / Continued
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INDUSTRY CONCENTRATIONS Continued
INDUSTRY MARKET VALUE PERCENT
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Student Loans $ 902,874 0.6%
Sports Facility Revenue 739,058 0.5
Sewer Utilities 80,986 --
Manufacturing, Durable Goods 50,512 --
------------------------
Total $162,771,598 100.0%
========================
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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 15.1%
AA 2.0
A 10.7
BBB 50.0
BB 2.4
B 10.1
CCC 3.2
CC 0.0
C 0.0
D 0.0
Not Rated 6.5
-------
Total 100.0%
=======
Bonds rated by any nationally recognized statistical rating organization are
included in the equivalent Standard & Poor's rating category. As a general
matter, unrated bonds may be backed by mortgage liens or equipment liens on the
underlying property, and also may be guaranteed. Bonds which are backed by a
letter of credit or by other financial institutions or agencies may be assigned
an investment-grade rating by the Manager, which reflects the quality of the
guarantor, institution or agency. Unrated bonds may also be assigned a rating
when the issuer has rated bonds outstanding with comparable credit
characteristics, or when, in the opinion of the Manager, the bond itself
possesses credit characteristics which allow for rating. The unrated bonds in
the portfolio are predominantly smaller issuers which have not applied for a
bond rating. Only those unrated bonds which subsequent to purchase have not been
designated investment grade by the Manager are included in the "Not Rated"
category.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
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STATEMENT OF ASSETS AND LIABILITIES Unaudited
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January 31, 2004
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ASSETS
Investments, at value (cost $158,117,051)--see accompanying statement $162,771,598
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Cash 652,474
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Receivables and other assets:
Investments sold 8,321,422
Interest 2,306,968
Shares of beneficial interest sold 1,035,016
Other 5,264
----------------
Total assets 175,092,742
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LIABILITIES
Payables and other liabilities:
Notes payable to bank (interest rate 1.8125% at January 31, 2004) 15,200,000
Investments purchased (including $2,307,200 purchased on a when-issued
basis) 4,404,486
Shares of beneficial interest redeemed 318,272
Dividends 98,938
Shareholder communications 56,723
Distribution and service plan fees 18,823
Trustees' compensation 18,104
Transfer and shareholder servicing agent fees 6,966
Other 5,987
--------------
Total liabilities 20,128,299
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NET ASSETS $154,964,443
==============
- -------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $153,908,696
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Accumulated net investment income 1,043,551
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Accumulated net realized loss on investments (4,642,351)
- -------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 4,654,547
--------------
NET ASSETS $154,964,443
==============
15 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$80,164,910 and 7,094,111 shares of beneficial interest outstanding) $11.30
Maximum offering price per share (net asset value plus sales charge of 4.75% of
offering price) $11.86
- -----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $53,582,408
and 4,736,718 shares of beneficial interest outstanding) $11.31
- -----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $21,217,125
and 1,876,424 shares of beneficial interest outstanding) $11.31
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
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STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2004
- -------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 4,860,211
- -------------------------------------------------------------------------------------------------
EXPENSES
Management fees 414,240
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Distribution and service plan fees:
Class A 50,221
Class B 224,008
Class C 82,989
- -------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 21,148
Class B 14,941
Class C 6,191
- -------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 13,313
Class B 9,581
Class C 3,513
- -------------------------------------------------------------------------------------------------
Interest expense 47,665
- -------------------------------------------------------------------------------------------------
Custodian fees and expenses 4,952
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Trustees' compensation 3,406
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Other 21,086
-------------
Total expenses 917,254
Less reduction to custodian expenses (689)
Less waiver of management fees (138,081)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (182)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (44)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (48)
-------------
Net expenses 778,210
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NET INVESTMENT INCOME 4,082,001
- -------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized loss on investments (165,771)
- -------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 9,999,795
- -------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $13,916,025
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
(UNAUDITED) 2003
- -------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,082,001 $ 6,811,963
- -------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (165,771) 5,404,061
- -------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 9,999,795 (11,332,800)
------------------------------
Net increase in net assets resulting from operations 13,916,025 883,224
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (2,026,889) (3,131,845)
Class B (1,256,337) (2,226,464)
Class C (466,484) (828,541)
- -------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial interest transactions:
Class A 13,138,808 17,051,804
Class B 3,039,282 5,059,679
Class C 2,099,699 5,855,389
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase 28,444,104 22,663,246
- -------------------------------------------------------------------------------------------------------------------
Beginning of period 126,520,339 103,857,093
------------------------------
End of period (including accumulated net investment income
of $1,043,551 and $711,260, respectively) $154,964,443 $126,520,339
==============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS A (UNAUDITED) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $10.51 $10.99 $10.89 $10.36 $11.21 $11.58
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .34 .67 .53 .55 .53 .55
Net realized and unrealized gain (loss) .77 (.52) .08 .51 (.82) (.36)
--------------------------------------------------------------------------
Total from investment operations 1.11 .15 .61 1.06 (.29) .19
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.32) (.63) (.51) (.53) (.55) (.55)
Distributions from net realized gain -- -- -- -- (.01) (.01)
--------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.32) (.63) (.51) (.53) (.56) (.56)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.30 $10.51 $10.99 $10.89 $10.36 $11.21
==========================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 10.70% 1.21% 5.79% 10.42% (2.47)% 1.57%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $80,165 $61,825 $47,305 $39,185 $31,937 $42,289
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $69,423 $54,811 $42,809 $35,710 $35,286 $38,999
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 6.27% 6.24% 4.88% 5.08% 5.26% 4.71%
Total expenses 0.95% 1.02% 0.84% 0.87% 1.09% 1.10%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 0.75% 0.82% 3 0.63% 3 0.67% 3 0.79% 3 0.63% 3
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 19% 93% 26% 27% 101% 70%
<FN>
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund 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.
19 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS B (UNAUDITED) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $10.52 $11.00 $10.90 $10.37 $11.21 $11.58
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .30 .59 .45 .47 .47 .47
Net realized and unrealized gain (loss) .77 (.53) .08 .51 (.83) (.37)
--------------------------------------------------------------------------
Total from investment operations 1.07 .06 .53 .98 (.36) .10
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.28) (.54) (.43) (.45) (.47) (.46)
Distributions from net realized gain -- -- -- -- (.01) (.01)
--------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.28) (.54) (.43) (.45) (.48) (.47)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.31 $10.52 $11.00 $10.90 $10.37 $11.21
==========================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 10.27% 0.46% 4.99% 9.58% (3.11)% 0.81%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $53,582 $46,912 $43,888 $39,164 $35,338 $44,322
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $49,434 $45,226 $41,532 $36,447 $38,064 $39,842
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.53% 5.46% 4.12% 4.34% 4.50% 3.96%
Total expenses 1.71% 1.78% 1.60% 1.62% 1.85% 1.85%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.51% 1.58% 3 1.39% 3 1.42% 3 1.55% 3 1.38% 3
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 19% 93% 26% 27% 101% 70%
<FN>
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund 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.
20 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
CLASS C (UNAUDITED) 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $10.51 $10.99 $10.89 $10.36 $11.21 $11.58
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .30 .59 .44 .47 .46 .46
Net realized and unrealized gain (loss) .78 (.53) .09 .51 (.83) (.36)
--------------------------------------------------------------------------
Total from investment operations 1.08 .06 .53 .98 (.37) .10
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.28) (.54) (.43) (.45) (.47) (.46)
Distributions from net realized gain -- -- -- -- (.01) (.01)
--------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.28) (.54) (.43) (.45) (.48) (.47)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.31 $10.51 $10.99 $10.89 $10.36 $11.21
==========================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 10.37% 0.45% 4.99% 9.59% (3.20)% 0.81%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $21,217 $17,784 $12,664 $8,622 $7,142 $9,732
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $18,319 $16,770 $ 9,831 $7,301 $8,198 $8,483
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.52% 5.49% 4.10% 4.33% 4.51% 3.96%
Total expenses 1.72% 1.78% 1.60% 1.62% 1.85% 1.85%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 1.52% 1.58% 3 1.39% 3 1.42% 3 1.55% 3 1.38% 3
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 19% 93% 26% 27% 101% 70%
<FN>
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund 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.
21 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer New Jersey Municipal Fund (the Fund) is a separate series of
Oppenheimer Multi-State Municipal Trust, a non-diversified, open-end management
investment company registered under the Investment Company Act of 1940, as
amended. The Fund's investment objective is to seek as high a level of current
interest income exempt from federal and New Jersey income taxes for individual
investors as is consistent with preservation of capital. The Fund's investment
advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges 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).
- --------------------------------------------------------------------------------
SECURITIES ON A WHEN ISSUED OR FORWARD COMMITMENT BASIS. Delivery and payment
for securities that have been purchased by the Fund on a when issued basis can
take place a month or more after the trade date. Normally the settlement date
occurs within six months after the trade date; however, the Fund may, from time
to time, purchase securities whose settlement date extends six months or more
beyond trade date. During this period, such securities do not earn interest,
are subject to market fluctuation and may increase or decrease in value prior
to their delivery. The Fund maintains segregated
22 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
assets with a market value equal to or greater than the amount of its
commitments. These transactions of securities on a when issued basis may
increase the volatility of the Fund's net asset value to the extent the Fund
executes such transactions while remaining substantially fully invested. As of
January 31, 2004, the Fund had entered into when issued purchase commitments or
forward commitments of $2,307,200.
- --------------------------------------------------------------------------------
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 $20,359,583 as of January 31, 2004.
Including the effect of leverage, inverse floaters represent 18.89% of the
Fund's total assets as of January 31, 2004.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. There are certain risks arising from geographic
concentration in any State. Certain revenue or tax related events in a state
may impair the ability of certain issuers of municipal securities to pay
principal and interest on their obligations.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
As of January 31, 2004, the Fund had available for federal income tax
purposes an estimated unused capital loss carryforward of $4,642,354 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 $0 and $5,100,207, 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 $2,925,051
2010 1,551,532
----------
Total $4,476,583
==========
23 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 $1,363 and payments of $1,575 were made to retired trustees, resulting in an
accumulated liability of $14,867 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.
- --------------------------------------------------------------------------------
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.
24 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
SIX MONTHS ENDED JANUARY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
CLASS A
Sold 1,696,287 $18,337,451 2,447,732 $ 26,349,769
Dividends and/or
distributions reinvested 102,446 1,114,169 170,097 1,828,108
Redeemed (589,210) (6,312,812) (1,039,182) (11,126,073)
----------------------------------------------------------------
Net increase 1,209,523 $13,138,808 1,578,647 $ 17,051,804
================================================================
- ---------------------------------------------------------------------------------------------
CLASS B
Sold 736,166 $ 7,971,320 1,364,294 $ 14,637,609
Dividends and/or
distributions reinvested 67,709 737,488 120,251 1,294,316
Redeemed (527,434) (5,669,526) (1,014,950) (10,872,246)
----------------------------------------------------------------
Net increase 276,441 $ 3,039,282 469,595 $ 5,059,679
================================================================
- ---------------------------------------------------------------------------------------------
CLASS C
Sold 463,739 $ 5,111,222 918,241 $ 9,916,702
Dividends and/or
distributions reinvested 24,217 263,769 43,360 466,291
Redeemed (303,095) (3,275,292) (422,140) (4,527,604)
----------------------------------------------------------------
Net increase 184,861 $ 2,099,699 539,461 $ 5,855,389
================================================================
- --------------------------------------------------------------------------------
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
$33,634,440 and $23,388,054, 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
annual rate of 0.60% of the first $200 million of average annual net assets,
0.55% of the next $100 million, 0.50% of the next $200 million, 0.45% of the
next $250 million, 0.40% of the next $250 million, and 0.35% of average annual
net assets in excess of $1 billion. The Manager has voluntary agreed to waive a
portion of its management fee so the management fees will not exceed 0.40% of
average annual net assets for each class of shares. This voluntary undertaking
is expected to remain in effect indefinitely, however it may be amended or
withdrawn by the Manager at any time without notice to shareholders.
- --------------------------------------------------------------------------------
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 $42,018 to OFS for services to the Fund.
25 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees for all classes, up to an annual rate of 0.35% of average net assets per
class. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12B-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class
A shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.15% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses the fees it receives
from the Fund to pay brokers, dealers and other financial institutions for
personal services and account maintenance services they provide for their
customers who hold Class A shares. Any unreimbursed expenses the Distributor
incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years. Fees incurred by the Fund under the plan are detailed in the
Statement of Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of these shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% per year on Class B
shares and on Class C shares. The Distributor also receives a service fee of
0.15% per year under each plan. If either the Class B or Class C plan is
terminated by the Fund or by the shareholders of a class, the Board of Trustees
and its independent trustees must determine whether the Distributor shall be
entitled to payment from the Fund of all or a portion of the service fee and/or
the asset-based sales charge in respect to shares sold prior to the effective
date of such termination. The Distributor's aggregate uncompensated expenses
under the plan at January 31, 2004 for Class B and Class C shares was
$1,800,387 and $318,562, 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.
26 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
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 $44,097 $-- $40,889 $2,201
- --------------------------------------------------------------------------------
5. ILLIQUID SECURITIES
As of January 31, 2004, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund intends to invest no more than 15% of its net assets (determined at the
time of purchase and reviewed periodically) in illiquid securities. The
aggregate value of illiquid securities subject to this limitation as of January
31, 2004 was $20,359,583, which represents 13.14% 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 a rate equal to the Federal Funds Rate
plus 0.75%. The rate of 0.625% was effective from August 1, 2003 to November 8,
2003; thereafter, the rate is the Federal Funds Rate plus 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 $15,200,000 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 $5,362,764 at an average daily interest rate
of 1.721%. The Fund had gross borrowings and gross loan repayments of
$51,600,000 and $42,400,000, respectively, during the six months ended January
31, 2004. The maximum amount of borrowings outstanding at any month-end was
$15,200,000. The Fund paid commitment fees of $590 and interest of $47,075
during the six months ended January 31, 2004.
27 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
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.
28 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
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)