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
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(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
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(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 - JULY 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
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FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED JULY 31, 2004, FOLLOWED BY A
GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. During the twelve months ended July
31, 2004, assets in Oppenheimer New Jersey Municipal Fund increased by 34%, to
$169 million. The growth in assets allowed us to add significantly to our
preferred type of investment: less known, higher-yielding securities that we
believe are out of favor or misunderstood by the market. Although these
(generally project-specific) securities are less numerous in New Jersey than in
other states, our extensive credit research capabilities allow us to find those
that are most attractive--that is, securities offering yield advantages that are
more than commensurate with what we consider the securities' true levels of
risk. For example, the Fund owns several bonds issued by New Jersey-based
universities and secured by first mortgages on campus properties. In our
experience, the risk of default in these bonds is much lower than their credit
ratings and market yields would indicate.
The Fund's outperformance during this period can be attributed to our
focus on these higher-yielding securities. Not only did they add to yield but,
as the economy improved, many of the securities appreciated. For instance, the
airline sector experienced increased air traffic and capacity utilization from
the prior year, so bond prices of some carriers rallied. The Fund's position in
American Airlines tax-exempt debt--which experienced significant market price
appreciation--was a strong contributor to return. Market prices for tax-exempt
bonds backed by Continental Airlines--and secured by assets at Newark
Airport--actually declined slightly in price over the period, but the Fund's
position in these securities contributed positively to total return on the
strength of interest income earned. Despite positive developments for airlines,
the industry remains volatile, as higher fuel costs have slowed the recent
positive momentum.
The Fund maintains a relatively large position of investment-grade bonds
issued for Fairleigh Dickinson University. The bonds represent a general
obligation of the University and are further secured by a mortgage on land and
buildings. The combination of market price increase and high income made this
position an important contributor to the Fund's strong performance.
The Fund's position in municipal inverse floating rate securities also
contributed to performance. These are highly rated, high yielding, tax-exempt
securities whose interest rates move inversely to short-term rates. We seek to
offset the greater interest rate sensitivity of these bonds by also investing in
premium-coupon, callable bonds whose market prices fluctuate much less than
long-term bond indices.
9 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
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FUND PERFORMANCE DISCUSSION
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Over the course of the year, the Fund's largest allocation (18% of total
assets)--tobacco master settlement agreement (MSA) bonds, declined slightly in
price, but also contributed to positive total return owing to their high yields.
We continue to see potential in this sector, but in the interest of broader
diversification, we invested new cash inflows across many industries, including
pollution control facilities, hospitals and healthcare systems, and senior
living communities. For instance, we added a high-yielding, investment-grade and
double tax-exempt bond issued to finance pollution control facilities for a
refinery in St. Croix, U.S. Virgin Islands.
MSA bonds are backed by each state's (or U.S. territory's) share of the
national settlement agreement with major tobacco manufacturers and provide
considerably higher income than other similarly rated bonds. However, their
prices were very sensitive to ongoing litigation involving the tobacco industry
and, therefore, detracted slightly from the Fund's total return. While lawsuits
will likely continue to be a factor, we believe MSA prices will more or less
stabilize as investors come to understand them better. Also, New Jersey has
issued no new MSA bonds since 2003, so relative scarcity may make these
high-yielding securities more attractive to investors over time.
The Fund attempts to pay dividends on Class A shares at a constant level.
However there is no assurance it will be able to do so, and the dividend may be
changed at any time without prior notice to shareholders. This practice did not
affect the Fund's investment strategies or per share net asset values, or cause
it to pay any distributions of capital.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until July 31, 2004. In the case of Class A and Class B shares,
performance is measured over a ten-year period. In the case of Class C shares,
performance is measured from inception of the Class on August 29, 1995. The
Fund's performance reflects the deduction of the maximum initial sales charge on
Class A shares, the applicable contingent deferred sales charge on Class B and
Class C shares, and reinvestments of all dividends and capital gains
distributions.
The Fund's performance is compared to the performance of the Lehman
Brothers Municipal Bond Index, an unmanaged index of a broad range of investment
grade municipal bonds that is widely regarded as a measure of the performance of
the general municipal bond market. Index performance reflects the reinvestment
of dividends but does not consider the effect of capital gains or transaction
costs, and none of the data in the graphs that follow shows the effect of taxes.
The Fund's performance reflects the effects of Fund business and operating
expenses. While index comparisons may be useful to provide a benchmark for the
Fund's performance, it must be noted that the Fund's investments are not limited
to the securities in the index.
10 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer New Jersey Municipal Fund (Class A)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer
New Jersey Lehman Brothers
Municipal Fund (Class A) Municipal Bond Index
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12/31/1994 $ 9,525 $10,000
03/31/1995 10,173 10,707
06/30/1995 10,380 10,965
09/30/1995 10,542 11,280
12/31/1995 10,898 11,746
03/31/1996 10,901 11,604
06/30/1996 10,994 11,693
07/31/1996 1 11,094 11,799
10/31/1996 11,340 12,096
01/31/1997 11,497 12,289
04/30/1997 11,589 12,339
07/31/1997 12,203 13,009
10/31/1997 12,295 13,123
01/31/1998 12,726 13,531
04/30/1998 12,626 13,486
07/31/1998 12,930 13,788
10/31/1998 13,273 14,175
01/31/1999 13,543 14,431
04/30/1999 13,508 14,423
07/31/1999 13,133 14,185
10/31/1999 12,364 13,924
01/31/2000 12,145 13,907
04/30/2000 12,442 14,291
07/31/2000 12,809 14,796
10/31/2000 13,035 15,109
01/31/2001 13,575 15,754
04/30/2001 13,576 15,773
07/31/2001 14,143 16,287
10/31/2001 14,353 16,697
01/31/2002 14,274 16,684
04/30/2002 14,505 16,877
07/31/2002 14,962 17,380
10/31/2002 14,680 17,676
01/31/2003 14,806 17,929
04/30/2003 14,892 18,311
07/31/2003 15,143 18,007
10/31/2003 15,808 18,580
01/31/2004 16,764 19,038
04/30/2004 16,408 18,801
07/31/2004 16,450 19,048
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
7/31/04
1-Year 5-Year 10-Year
------ ------ -------
3.47% 3.59% 4.79%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD. BECAUSE
CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR
RETURN FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER
CONVERSION. SEE PAGE 14 FOR FURTHER INFORMATION.
1. The Fund changed its fiscal year end from 12/31 to 7/31.
11 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FUND PERFORMANCE DISCUSSION
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CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer New Jersey Municipal Fund (Class B)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer
New Jersey Lehman Brothers
Municipal Fund (Class B) Municipal Bond Index
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12/31/1994 $10,000 $10,000
03/31/1995 10,662 10,707
06/30/1995 10,869 10,965
09/30/1995 11,008 11,280
12/31/1995 11,359 11,746
03/31/1996 11,340 11,604
06/30/1996 11,425 11,693
07/31/1996 1 11,511 11,799
10/31/1996 11,744 12,096
01/31/1997 11,884 12,289
04/30/1997 11,958 12,339
07/31/1997 12,567 13,009
10/31/1997 12,638 13,123
01/31/1998 13,068 13,531
04/30/1998 12,930 13,486
07/31/1998 13,227 13,788
10/31/1998 13,553 14,175
01/31/1999 13,791 14,431
04/30/1999 13,730 14,423
07/31/1999 13,334 14,185
10/31/1999 12,542 13,924
01/31/2000 12,284 13,907
04/30/2000 12,561 14,291
07/31/2000 12,920 14,796
10/31/2000 13,123 15,109
01/31/2001 13,657 15,754
04/30/2001 13,658 15,773
07/31/2001 14,228 16,287
10/31/2001 14,440 16,697
01/31/2002 14,360 16,684
04/30/2002 14,593 16,877
07/31/2002 15,052 17,380
10/31/2002 14,769 17,676
01/31/2003 14,896 17,929
04/30/2003 14,982 18,311
07/31/2003 15,235 18,007
10/31/2003 15,904 18,580
01/31/2004 16,866 19,038
04/30/2004 16,508 18,801
07/31/2004 16,550 19,048
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
7/31/04
1-Year 5-Year 10-Year
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2.92% 3.53% 4.84%
1. The Fund changed its fiscal year end from 12/31 to 7/31.
12 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer New Jersey Municipal Fund (Class C)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer
New Jersey Lehman Brothers
Municipal Fund (Class C) Municipal Bond Index
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08/29/1995 $10,000 $10,000
09/30/1995 10,076 10,063
12/31/1995 10,407 10,479
03/31/1996 10,396 10,353
06/30/1996 10,463 10,432
07/31/1996 1 10,541 10,526
10/31/1996 10,752 10,791
01/31/1997 10,889 10,963
04/30/1997 10,944 11,008
07/31/1997 11,501 11,605
10/31/1997 11,566 11,708
01/31/1998 11,959 12,072
04/30/1998 11,833 12,032
07/31/1998 12,105 12,301
10/31/1998 12,402 12,647
01/31/1999 12,620 12,874
04/30/1999 12,564 12,868
07/31/1999 12,202 12,655
10/31/1999 11,466 12,423
01/31/2000 11,241 12,407
04/30/2000 11,495 12,750
07/31/2000 11,812 13,201
10/31/2000 11,998 13,480
01/31/2001 12,471 14,055
04/30/2001 12,460 14,072
07/31/2001 12,944 14,531
10/31/2001 13,112 14,896
01/31/2002 13,027 14,884
04/30/2002 13,213 15,057
07/31/2002 13,591 15,506
10/31/2002 13,322 15,770
01/31/2003 13,410 15,995
04/30/2003 13,451 16,336
07/31/2003 13,652 16,065
10/31/2003 14,236 16,576
01/31/2004 15,068 16,985
04/30/2004 14,722 16,773
07/31/2004 14,732 16,994
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
7/31/04
1 Year 5 Year Since Inception Inception Date
------ ------ --------------- --------------
6.91% 3.84% 4.44% 8/29/95
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD. BECAUSE
CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR
RETURN FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER
CONVERSION. SEE PAGE 14 FOR FURTHER INFORMATION.
1. The Fund changed its fiscal year end from 12/31 to 7/31.
13 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES
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TOTAL RETURNS AND THE ENDING ACCOUNT VALUES IN THE GRAPHS INCLUDE CHANGES IN
SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS IN A
HYPOTHETICAL INVESTMENT FOR THE PERIODS SHOWN. THE FUND'S TOTAL RETURNS SHOWN DO
NOT REFLECT THE DEDUCTION OF INCOME TAXES ON AN INDIVIDUAL'S INVESTMENT. TAXES
MAY REDUCE YOUR ACTUAL INVESTMENT RETURNS ON INCOME OR GAINS PAID BY THE FUND OR
ANY GAINS YOU MAY REALIZE IF YOU SELL YOUR SHARES.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
THE FUND'S INVESTMENT STRATEGY AND FOCUS CAN CHANGE OVER TIME. THE MENTION OF
SPECIFIC FUND HOLDINGS DOES NOT CONSTITUTE A RECOMMENDATION BY OPPENHEIMERFUNDS,
INC.
CLASS A shares of the Fund were first publicly offered on 3/1/94. The average
annual total returns are shown net of the applicable 4.75% maximum initial sales
charge.
CLASS B shares of the Fund were first publicly offered on 3/1/94. The average
annual total returns are shown net of the applicable contingent deferred sales
charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A
shares 72 months after purchase, the 10-year return for Class B uses Class A
performance for the period after conversion. Class B shares are subject to an
annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 8/29/95. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
14 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
reinvested dividends, or other distributions; redemption fees; and exchange
fees; and (2) ongoing costs, including management fees; distribution and service
fees; and other Fund expenses. These examples are intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended July 31, 2004.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), or a $12.00 fee imposed annually
on accounts valued at less than $500.00 (subject to exceptions described in
15 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FUND EXPENSES
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the Statement of Additional Information). There fore, the "hypothetical" lines
of the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING 6-MONTHS
VALUE (2/1/04) VALUE (7/31/04) ENDED 7/31/04
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Class A Actual $1,000.00 $ 981.30 $3.94
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Class A Hypothetical 1,000.00 1,020.89 4.02
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Class B Actual 1,000.00 978.70 7.48
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Class B Hypothetical 1,000.00 1,017.30 7.62
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Class C Actual 1,000.00 977.70 7.57
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Class C Hypothetical 1,000.00 1,017.21 7.72
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 182/366
(to reflect the one-half year period). Those expense ratios for the 6-month
period ended July 31, 2004 are as follows:
CLASS EXPENSE RATIOS
- ---------------------------
Class A 0.80%
- ---------------------------
Class B 1.52
- ---------------------------
Class C 1.54
The expense ratios reflect voluntary reimbursements of expenses by the Fund's
Manager that can be terminated at any time, without advance notice. The
"Financial Highlights" tables in the Fund's financial statements, included in
this report, also show the gross expense ratios, without such reimbursements.
16 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS JULY 31, 2004
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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MUNICIPAL BONDS AND NOTES--107.5%
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NEW JERSEY--93.1%
$ 1,940,000 Camden County Improvement Authority
(Cooper Health System) 6.000% 02/15/2027 $ 1,966,656
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1,500,000 Cape May County Industrial Pollution Control
(Atlantic City Electric Company) 7.200 11/01/2029 1,557,735
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130,000 DE River Port Authority PA/NJ 5.500 01/01/2026 136,543
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90,000 Essex County Improvement Authority 6.800 11/01/2021 91,796
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 Garden State Preservation Trust
(Open Space & Farmland Preservation) 1 5.800 11/01/2023 2,118,500
- -----------------------------------------------------------------------------------------------------------------------------------
20,000 Gloucester County Improvement Authority
(Governmental Leasing Program) 5.900 04/01/2007 20,223
- -----------------------------------------------------------------------------------------------------------------------------------
5,000 Gloucester County Utilities Authority 5.125 01/01/2013 5,015
- -----------------------------------------------------------------------------------------------------------------------------------
785,000 Higher Education Student Assistance Authority
Student Loan 6.000 06/01/2015 822,978
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10,000 Hudson County Improvement Authority 6.625 08/01/2025 10,037
- -----------------------------------------------------------------------------------------------------------------------------------
3,755,000 Hudson County Improvement Authority (Koppers Site) 6.125 01/01/2029 3,586,626
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Hudson County Solid Waste Improvement Authority 6.000 01/01/2029 949,090
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 Middlesex County Pollution Control Authority
(Amerada Hess Corp.) 6.050 09/15/2034 2,564,475
- -----------------------------------------------------------------------------------------------------------------------------------
35,000 New Brunswick Hsg. & Urban Devel. Authority 5.500 08/01/2011 35,466
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 New Brunswick Hsg. & Urban Devel. Authority 5.750 07/01/2024 51,196
- -----------------------------------------------------------------------------------------------------------------------------------
135,000 NJ EDA (American Airlines) 7.100 11/01/2031 86,658
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 NJ EDA (Cadbury at Cherry Hill) 5.500 07/01/2018 102,119
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (Cadbury at Cherry Hill) 5.500 07/01/2028 24,440
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (Cascade Corp.) 8.250 02/01/2026 24,213
- -----------------------------------------------------------------------------------------------------------------------------------
5,985,000 NJ EDA (Continental Airlines) 6.250 09/15/2019 4,755,202
- -----------------------------------------------------------------------------------------------------------------------------------
85,000 NJ EDA (Continental Airlines) 6.250 09/15/2029 63,733
- -----------------------------------------------------------------------------------------------------------------------------------
2,020,000 NJ EDA (Continental Airlines) 6.400 09/15/2023 1,587,356
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 NJ EDA (Continental Airlines) 6.625 09/15/2012 2,240,775
- -----------------------------------------------------------------------------------------------------------------------------------
3,500,000 NJ EDA (Continental Airlines) 9.000 06/01/2033 3,405,080
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 NJ EDA (Courthouse Convalescent Center) 8.700 02/01/2014 100,106
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 NJ EDA (Devereux Foundation) 5.450 05/01/2027 103,274
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (Eastern Shore) 8.000 02/01/2011 24,727
- -----------------------------------------------------------------------------------------------------------------------------------
90,000 NJ EDA (Elizabethtown Water Company) 5.600 12/01/2025 92,678
- -----------------------------------------------------------------------------------------------------------------------------------
4,000,000 NJ EDA (Empowerment Zone-Cumberland) 7.750 08/01/2021 3,909,320
- -----------------------------------------------------------------------------------------------------------------------------------
15,000,000 NJ EDA (Fairleigh Dickinson University), Series D 6.000 07/01/2025 15,506,250
- -----------------------------------------------------------------------------------------------------------------------------------
280,000 NJ EDA (Hackensack Water Company) 5.800 03/01/2024 286,398
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (Hackensack Water Company) 5.900 03/01/2024 25,526
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EDA (Jersey Central Power & Light) 7.100 07/01/2015 2,088,800
- -----------------------------------------------------------------------------------------------------------------------------------
6,100,000 NJ EDA (JVG Properties) 5.375 03/01/2019 5,955,796
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 NJ EDA (Kapkowski Road Landfill) 6.500 04/01/2031 2,647,750
17 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 130,000 NJ EDA (Kullman Associates) 6.750% 07/01/2019 $ 120,086
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 NJ EDA (Marcus L. Ward Home) 5.750 11/01/2024 986,370
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 NJ EDA (Marcus L. Ward Home) 5.800 11/01/2031 973,080
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 NJ EDA (Masonic Charity Foundation of NJ) 5.500 06/01/2031 1,032,760
- -----------------------------------------------------------------------------------------------------------------------------------
750,000 NJ EDA (Masonic Charity Foundation of NJ) 6.000 06/01/2025 818,918
- -----------------------------------------------------------------------------------------------------------------------------------
70,000 NJ EDA (Middlesex Water Company) 5.250 10/01/2023 70,417
- -----------------------------------------------------------------------------------------------------------------------------------
70,000 NJ EDA (NJ American Water Company) 5.350 06/01/2023 70,856
- -----------------------------------------------------------------------------------------------------------------------------------
240,000 NJ EDA (NJ American Water Company) 5.350 06/01/2023 242,935
- -----------------------------------------------------------------------------------------------------------------------------------
45,000 NJ EDA (NJ American Water Company) 5.375 05/01/2032 45,986
- -----------------------------------------------------------------------------------------------------------------------------------
45,000 NJ EDA (NJ American Water Company) 5.500 06/01/2023 45,342
- -----------------------------------------------------------------------------------------------------------------------------------
545,000 NJ EDA (NJ American Water Company) 5.950 11/01/2029 577,782
- -----------------------------------------------------------------------------------------------------------------------------------
85,000 NJ EDA (NJ American Water Company) 6.000 05/01/2036 90,483
- -----------------------------------------------------------------------------------------------------------------------------------
520,000 NJ EDA (NJ American Water Company) 6.875 11/01/2034 536,640
- -----------------------------------------------------------------------------------------------------------------------------------
15,000 NJ EDA (NJ Natural Gas Company) 5.375 08/01/2023 15,125
- -----------------------------------------------------------------------------------------------------------------------------------
5,000 NJ EDA (NJ Natural Gas Company) 5.375 08/01/2023 5,061
- -----------------------------------------------------------------------------------------------------------------------------------
915,000 NJ EDA (NUI Corp.) 5.250 11/01/2033 855,406
- -----------------------------------------------------------------------------------------------------------------------------------
40,000 NJ EDA (NUI Corp.) 5.700 06/01/2032 41,618
- -----------------------------------------------------------------------------------------------------------------------------------
90,000 NJ EDA (NUI Corp.) 6.350 10/01/2022 92,463
- -----------------------------------------------------------------------------------------------------------------------------------
4,270,000 NJ EDA (Public Service Electric & Gas) 6.400 05/01/2032 4,398,954
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 NJ EDA (Rutgers University) 6.100 07/01/2014 25,595
- -----------------------------------------------------------------------------------------------------------------------------------
4,335,000 NJ EDA (RWJ Hospital/CCC/
RWJ Health Care Corp. Obligated Group) 6.500 07/01/2024 4,437,740
- -----------------------------------------------------------------------------------------------------------------------------------
1,500,000 NJ EDA (St. Francis Life Care Corp.) 5.600 10/01/2012 1,481,715
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EDA (St. Francis Life Care Corp.) 5.750 10/01/2023 1,843,920
- -----------------------------------------------------------------------------------------------------------------------------------
480,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2019 491,150
- -----------------------------------------------------------------------------------------------------------------------------------
510,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2020 521,847
- -----------------------------------------------------------------------------------------------------------------------------------
545,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2021 558,434
- -----------------------------------------------------------------------------------------------------------------------------------
575,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2022 586,989
- -----------------------------------------------------------------------------------------------------------------------------------
610,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2023 621,852
- -----------------------------------------------------------------------------------------------------------------------------------
650,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2024 661,369
- -----------------------------------------------------------------------------------------------------------------------------------
690,000 NJ EDA (The Gill/St. Bernards School) 6.000 02/01/2025 699,170
- -----------------------------------------------------------------------------------------------------------------------------------
1,900,000 NJ EDA (Trigen-Trenton District Energy Company) 6.200 12/01/2010 1,932,661
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 NJ EDA (United Methodist Homes of NJ) 5.125 07/01/2025 864,910
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EDA Retirement Community (Cedar Crest Village) 7.250 11/15/2021 2,048,420
- -----------------------------------------------------------------------------------------------------------------------------------
2,100,000 NJ EDA Retirement Community (Seabrook Village) 8.000 11/15/2015 2,251,053
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EDA RITES (Public Schools Small Project Loan Program) 2 15.382 3 09/01/2011 2,166,600
- -----------------------------------------------------------------------------------------------------------------------------------
1,440,000 NJ EFA (Bloomfield College) 6.850 07/01/2030 1,467,806
- -----------------------------------------------------------------------------------------------------------------------------------
800,000 NJ EFA (Fairleigh Dickinson University), Series C 6.625 07/01/2023 817,744
- -----------------------------------------------------------------------------------------------------------------------------------
1,290,000 NJ EFA (Fairleigh Dickinson University), Series G 5.700 07/01/2028 1,298,488
- -----------------------------------------------------------------------------------------------------------------------------------
3,540,000 NJ EFA (Georgian Court College) 6.500 07/01/2033 3,839,944
18 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 10,000 NJ EFA (Monmouth University) 5.625% 07/01/2013 $ 10,110
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EFA (Monmouth University) 5.800 07/01/2022 2,093,140
- -----------------------------------------------------------------------------------------------------------------------------------
5,000 NJ EFA (Richard Stockton State College) 5.350 07/01/2023 5,061
- -----------------------------------------------------------------------------------------------------------------------------------
250,000 NJ EFA (St. Peter's College) 5.500 07/01/2027 224,368
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 NJ EFA (University of Medicine and Dentistry) 5.250 12/01/2025 101,748
- -----------------------------------------------------------------------------------------------------------------------------------
10,000 NJ Health Care Facilities Financing Authority
(Allegany Health System Obligated Group) 5.200 07/01/2018 10,247
- -----------------------------------------------------------------------------------------------------------------------------------
10,000 NJ Health Care Facilities Financing Authority
(Burdette Tomlin Memorial Hospital) 6.500 07/01/2012 10,318
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 NJ Health Care Facilities Financing Authority
(Deborah Heart & Lung Center) 6.300 07/01/2023 50,545
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 NJ Health Care Facilities Financing Authority
(Dover General Hospital & Medical Center) 5.875 07/01/2012 25,587
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 NJ Health Care Facilities Financing Authority
(Englewood Hospital & Medical Center) RITES 2 16.385 3 08/01/2025 2,304,200
- -----------------------------------------------------------------------------------------------------------------------------------
205,000 NJ Health Care Facilities Financing Authority
(Jersey Shores Medical Center) 5.875 07/01/2024 205,590
- -----------------------------------------------------------------------------------------------------------------------------------
260,000 NJ Health Care Facilities Financing Authority
(JFK Medical Center) 5.500 07/01/2023 263,227
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 NJ Health Care Facilities Financing Authority
(JFK Medical Center) 5.500 07/01/2023 101,241
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 NJ Health Care Facilities Financing Authority
(ONP/MHC Obiligated Group) 5.375 07/01/2024 25,911
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Health Care Facilities Financing Authority
(RWJ University Hospital) 5.750 07/01/2025 1,054,990
- -----------------------------------------------------------------------------------------------------------------------------------
20,000 NJ Health Care Facilities Financing Authority
(Society of the Valley Hospital) 5.500 07/01/2020 21,590
- -----------------------------------------------------------------------------------------------------------------------------------
20,000 NJ Health Care Facilities Financing Authority
(South Jersey Hospital System) 6.000 07/01/2032 20,563
- -----------------------------------------------------------------------------------------------------------------------------------
30,000 NJ Health Care Facilities Financing Authority
(St. Charles Riverside Medical Center) 5.750 07/01/2014 30,701
- -----------------------------------------------------------------------------------------------------------------------------------
750,000 NJ Health Care Facilities Financing Authority
(St. Joseph's Hospital & Medical Center) 6.000 07/01/2026 807,420
- -----------------------------------------------------------------------------------------------------------------------------------
45,000 NJ HFA 5.375 11/01/2008 45,069
- -----------------------------------------------------------------------------------------------------------------------------------
10,000 NJ HFA 5.700 11/01/2005 10,028
- -----------------------------------------------------------------------------------------------------------------------------------
200,000 NJ Hsg. & Mortgage Finance Agency, Series A 5.550 05/01/2027 204,168
- -----------------------------------------------------------------------------------------------------------------------------------
15,000 NJ Hsg. & Mortgage Finance Agency, Series A 5.650 05/01/2040 15,314
- -----------------------------------------------------------------------------------------------------------------------------------
75,000 NJ Hsg. & Mortgage Finance Agency, Series A 6.000 11/01/2014 77,342
- -----------------------------------------------------------------------------------------------------------------------------------
30,000 NJ Hsg. & Mortgage Finance Agency, Series A 6.050 11/01/2020 30,862
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 NJ Hsg. & Mortgage Finance Agency, Series A 6.250 05/01/2028 1,036,660
- -----------------------------------------------------------------------------------------------------------------------------------
30,000 NJ Hsg. & Mortgage Finance Agency, Series B 5.850 11/01/2012 32,194
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 NJ Hsg. & Mortgage Finance Agency, Series E1 5.750 05/01/2025 104,269
19 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 170,000 NJ Hsg. & Mortgage Finance Agency, Series J 6.200% 10/01/2025 $ 172,868
- -----------------------------------------------------------------------------------------------------------------------------------
35,000 NJ Hsg. & Mortgage Finance Agency, Series S 5.950 10/01/2017 36,510
- -----------------------------------------------------------------------------------------------------------------------------------
55,000 NJ Hsg. & Mortgage Finance Agency, Series S 6.000 10/01/2021 57,196
- -----------------------------------------------------------------------------------------------------------------------------------
1,100,000 NJ Hsg. & Mortgage Finance Agency, Series U 5.750 04/01/2018 1,148,301
- -----------------------------------------------------------------------------------------------------------------------------------
10,000 NJ Hsg. & Mortgage Finance Agency, Series V 5.250 04/01/2026 10,157
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 NJ Hsg. & Mortgage Finance Agency, Series Z 5.700 10/01/2017 51,665
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 NJ Sports & Exposition Authority, Series A 5.200 01/01/2020 50,168
- -----------------------------------------------------------------------------------------------------------------------------------
85,000 NJ Sports & Exposition Authority, Series A 5.200 01/01/2024 85,181
- -----------------------------------------------------------------------------------------------------------------------------------
300,000 NJ Tobacco Settlement Financing Corp. (TASC) 5.375 06/01/2018 264,849
- -----------------------------------------------------------------------------------------------------------------------------------
13,205,000 NJ Tobacco Settlement Financing Corp. (TASC) 5.750 06/01/2032 11,577,880
- -----------------------------------------------------------------------------------------------------------------------------------
6,580,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.000 06/01/2037 5,270,777
- -----------------------------------------------------------------------------------------------------------------------------------
9,295,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.125 06/01/2042 7,468,625
- -----------------------------------------------------------------------------------------------------------------------------------
1,740,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.250 06/01/2043 1,423,250
- -----------------------------------------------------------------------------------------------------------------------------------
235,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.375 06/01/2032 207,101
- -----------------------------------------------------------------------------------------------------------------------------------
800,000 NJ Tobacco Settlement Financing Corp. (TASC)
Fixed Receipts 6.125 06/01/2042 642,816
- -----------------------------------------------------------------------------------------------------------------------------------
9,600,000 NJ Tobacco Settlement Financing Corp. RITES 2 9.989 3 06/01/2042 5,827,488
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 NJ Transit Corp. ROLs, Series 15 2 11.074 3 09/15/2014 3,198,450
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 Passaic Hsg. Authority (Multifamily) 5.750 11/01/2024 26,257
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 Port Authority NY/NJ (KIAC) 6.750 10/01/2011 2,611,200
- -----------------------------------------------------------------------------------------------------------------------------------
1,005,000 Port Authority NY/NJ (KIAC) 6.750 10/01/2019 1,018,125
- -----------------------------------------------------------------------------------------------------------------------------------
2,305,000 Port Authority NY/NJ, 238th Series ROLs 2 17.220 3 12/15/2032 2,386,505
- -----------------------------------------------------------------------------------------------------------------------------------
200,000 Port Authority NY/NJ, 94th Series 6.000 12/01/2014 204,818
- -----------------------------------------------------------------------------------------------------------------------------------
75,000 Readington-Lebanon Sewage Authority 5.250 01/01/2013 75,983
- -----------------------------------------------------------------------------------------------------------------------------------
20,000 Riverside Township GO 5.450 12/01/2010 20,028
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 Salem County Industrial Pollution Control Financing
Authority (Atlantic City Electric Company) 5.600 11/01/2025 101,166
- -----------------------------------------------------------------------------------------------------------------------------------
125,000 Salem County Industrial Pollution Control Financing
Authority (Public Service Electric & Gas) 5.200 03/01/2025 125,450
- -----------------------------------------------------------------------------------------------------------------------------------
320,000 Salem County Industrial Pollution Control Financing
Authority (Public Service Electric & Gas) 5.450 02/01/2032 322,618
- -----------------------------------------------------------------------------------------------------------------------------------
625,000 Salem County Industrial Pollution Control Financing
Authority (Public Service Electric & Gas) 6.250 06/01/2031 639,456
- -----------------------------------------------------------------------------------------------------------------------------------
5,000,000 Salem County Industrial Pollution Control Financing
Authority (Public Service Electric & Gas) 6.550 10/01/2029 5,234,500
- -----------------------------------------------------------------------------------------------------------------------------------
275,000 Salem County Pollution Control Financing Authority
(E.I. Dupont De Nemours) 6.125 07/15/2022 275,399
- -----------------------------------------------------------------------------------------------------------------------------------
355,000 Salem County Pollution Control Financing Authority
(E.I. Dupont De Nemours) 6.500 11/15/2021 358,603
- -----------------------------------------------------------------------------------------------------------------------------------
1,100,000 Salem County Pollution Control Financing Authority
(Public Service Electric & Gas) 5.750 04/01/2031 1,116,610
20 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY Continued
$ 50,000 South Jersey Transit Authority (The Raytheon Company) 6.150% 01/01/2022 $ 50,391
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.375 06/01/2018 25,860
- -----------------------------------------------------------------------------------------------------------------------------------
60,000 Union County Utilities Authority
(Ogden Martin Systems of Union) 5.375 06/01/2020 61,787
------------
157,654,727
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--14.4%
1,450,000 Northern Mariana Islands, Series A 6.250 03/15/2028 1,462,746
- -----------------------------------------------------------------------------------------------------------------------------------
3,000,000 Northern Mariana Islands, Series A 6.750 10/01/2033 3,026,730
- -----------------------------------------------------------------------------------------------------------------------------------
10,000 PR Electric Power Authority 6.000 07/01/2014 10,238
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 Puerto Rico ITEMECF (Ana G. Mendez University) 5.375 02/01/2019 102,199
- -----------------------------------------------------------------------------------------------------------------------------------
965,000 Puerto Rico ITEMECF (Congeneration Facilities) 6.625 06/01/2026 1,002,799
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Puerto Rico Municipal Finance Agency RITES 2 10.008 3 08/01/2015 1,271,270
- -----------------------------------------------------------------------------------------------------------------------------------
6,880,000 Puerto Rico Port Authority (American Airlines), Series A 6.250 06/01/2026 4,628,314
- -----------------------------------------------------------------------------------------------------------------------------------
110,000 Puerto Rico Port Authority (American Airlines), Series A 6.300 06/01/2023 74,007
- -----------------------------------------------------------------------------------------------------------------------------------
15,000 Puerto Rico Port Authority, Series D 6.000 07/01/2021 15,176
- -----------------------------------------------------------------------------------------------------------------------------------
340,000 University of Puerto Rico, Series O 5.375 06/01/2030 349,846
- -----------------------------------------------------------------------------------------------------------------------------------
150,000 University of V.I., Series A 5.250 12/01/2023 150,881
- -----------------------------------------------------------------------------------------------------------------------------------
210,000 University of V.I., Series A 5.375 12/01/2034 209,702
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 University of V.I., Series A 6.000 12/01/2024 1,064,770
- -----------------------------------------------------------------------------------------------------------------------------------
40,000 University of V.I., Series A 6.250 12/01/2029 42,743
- -----------------------------------------------------------------------------------------------------------------------------------
105,000 V.I. Hsg. Finance Authority, Series A 6.500 03/01/2025 106,974
- -----------------------------------------------------------------------------------------------------------------------------------
5,000,000 V.I. Public Finance Authority (Hovensa Coker) 6.500 07/01/2021 5,331,350
- -----------------------------------------------------------------------------------------------------------------------------------
525,000 V.I. Public Finance Authority, Series A 6.125 10/01/2029 555,802
- -----------------------------------------------------------------------------------------------------------------------------------
1,515,000 V.I. Public Finance Authority, Series A 6.375 10/01/2019 1,696,179
- -----------------------------------------------------------------------------------------------------------------------------------
300,000 V.I. Public Finance Authority, Series E 5.875 10/01/2018 307,287
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 V.I. Public Finance Authority, Series E 6.000 10/01/2022 2,532,475
- -----------------------------------------------------------------------------------------------------------------------------------
290,000 V.I. Water & Power Authority 5.300 07/01/2018 292,050
- -----------------------------------------------------------------------------------------------------------------------------------
175,000 V.I. Water & Power Authority 5.300 07/01/2021 172,698
------------
24,406,236
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $185,716,141)--107.5% 182,060,963
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(7.5) (12,723,957)
------------
NET ASSETS--100.0% $169,337,006
============
21 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. When-issued security to be delivered and settled after July 31, 2004. See
Note 1 of Notes to Financial Statements.
2. Illiquid security. See Note 5 of Notes to Financial Statements.
3. Represents the current interest rate for a variable rate bond known as an
"inverse floater." 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/Authority
ITEMECF Industrial, Tourist, Educational, Medical and
Environmental Community Facilities
JFK John Fitzgerald Kennedy
MHC Meridian Hospitals Corporation
NY/NJ New York/New Jersey
ONP Ocean Nursing Pavillion, Inc.
PA/NJ Pennsylvania/New Jersey
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
- --------------------------------------------------------------------------
INDUSTRY CONCENTRATIONS July 31, 2004 / Unaudited
- --------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY MARKET VALUE PERCENT
- -----------------------------------------------------------------------------
Tobacco Settlements $ 32,682,786 18.0%
Higher Education 27,310,395 15.0
Pollution Control 19,461,841 10.7
Airlines 16,841,125 9.3
Adult Living Facilities 12,401,252 6.8
Hospital/Health Care 11,591,086 6.4
Electric Utilities 9,128,571 5.0
Sales Tax Revenue 7,210,243 4.0
Education 6,307,411 3.5
Manufacturing, Non-Durable Goods 5,955,796 3.3
Resource Recovery 4,633,400 2.5
General Obligation 4,318,028 2.4
Marine/Aviation Facilities 4,297,584 2.4
Manufacturing, Durable Goods 4,104,010 2.3
Gas Utilities 3,574,148 2.0
Municipal Leases 3,218,673 1.7
Special Tax 2,647,750 1.4
Water Utilities 2,085,043 1.1
Multifamily Housing 1,668,825 0.9
Single Family Housing 1,583,671 0.8
Student Loans 822,978 0.4
Sports Facility Revenue 135,349 0.1
Sewer Utilities 80,998 --
-------------------------------
Total $182,060,963 100.0%
===============================
22 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
SUMMARY OF RATINGS July 31, 2004 / Unaudited
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY RATING CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
RATING PERCENT
- --------------------------------------------------------------------------------
AAA 20.2%
AA 1.8
A 10.6
BBB 47.9
BB 2.3
B 6.6
CCC 2.6
Not Rated 8.0
------
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.
23 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------------------------------
Investments, at value (cost $185,716,141)--see accompanying statement of investments $ 182,060,963
- --------------------------------------------------------------------------------------------------------
Cash 460,878
- --------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 4,139,500
Interest 2,980,445
Shares of beneficial interest sold 894,244
Other 5,106
--------------
Total assets 190,541,136
- --------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Notes payable to bank (interest rate 2.1200% at July 31, 2004) 18,300,000
Investments purchased (including $2,063,800 purchased on a when-issued basis
or forward commitment) 2,422,865
Shares of beneficial interest redeemed 247,990
Dividends 116,791
Shareholder communications 38,632
Distribution and service plan fees 20,831
Trustees' compensation 19,798
Transfer and shareholder servicing agent fees 7,895
Other 29,328
--------------
Total liabilities 21,204,130
- --------------------------------------------------------------------------------------------------------
NET ASSETS $ 169,337,006
==============
- --------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------------------------------
Paid-in capital $ 176,334,817
- --------------------------------------------------------------------------------------------------------
Accumulated net investment income 1,249,697
- --------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (4,592,330)
- --------------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (3,655,178)
--------------
NET ASSETS $ 169,337,006
==============
24 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $94,213,597 and
8,752,742 shares of beneficial interest outstanding) $10.76
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $11.30
- ----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $51,328,562
and 4,763,352 shares of beneficial interest outstanding) $10.78
- ----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $23,794,847
and 2,209,211 shares of beneficial interest outstanding) $10.77
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF OPERATIONS For The Year Ended July 31, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------------
Interest $ 10,604,262
- --------------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------------
Management fees 901,530
- --------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 113,705
Class B 458,609
Class C 184,269
- --------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 43,964
Class B 28,752
Class C 12,700
- --------------------------------------------------------------------------------------
Shareholder communications:
Class A 17,215
Class B 3,240
Class C 1,945
- --------------------------------------------------------------------------------------
Interest expense 172,758
- --------------------------------------------------------------------------------------
Custodian fees and expenses 9,433
- --------------------------------------------------------------------------------------
Trustees' compensation 7,008
- --------------------------------------------------------------------------------------
Other 48,064
-------------
Total expenses 2,003,192
Less reduction to custodian expenses (1,214)
Less payments and waivers of expenses (300,785)
-------------
Net expenses 1,701,193
- --------------------------------------------------------------------------------------
NET INVESTMENT INCOME 8,903,069
- --------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------------
Net realized loss on investments (115,750)
- --------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 1,690,070
- --------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 10,477,389
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED JULY 31, 2004 2003
- -------------------------------------------------------------------------------------------------------------------
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income $ 8,903,069 $ 6,811,963
- -------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (115,750) 5,404,061
- -------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 1,690,070 (11,332,800)
----------------------------------
Net increase in net assets resulting from operations 10,477,389 883,224
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (4,669,052) (3,131,845)
Class B (2,635,363) (2,226,464)
Class C (1,060,217) (828,541)
- -------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 31,512,135 17,051,804
Class B 3,381,161 5,059,679
Class C 5,810,614 5,855,389
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Total increase 42,816,667 22,663,246
- -------------------------------------------------------------------------------------------------------------------
Beginning of period 126,520,339 103,857,093
----------------------------------
End of period (including accumulated net investment income
of $1,249,697 and $711,260, respectively) $ 169,337,006 $ 126,520,339
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
STATEMENT OF CASH FLOWS For The Year Ended July 31, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
- --------------------------------------------------------------------------------------
Net increase in net assets from operations $ 10,477,389
- --------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets from operations
to net cash used in operating activities:
Purchase of investment securities (92,523,487)
Proceeds from disposition of investment securities 45,013,157
Increase in interest receivable (1,021,792)
Decrease in receivable for securities sold 5,230,184
Increase in other assets (3,627)
Decrease in payable for securities purchased (9,544,516)
Increase in accrued expenses 17,215
Premium amortization 812,951
Discount amortization (37,203)
Realized loss on securities 115,750
Unrealized appreciation on securities (1,690,070)
-------------
Net cash used in operating activities (43,154,049)
- --------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
- --------------------------------------------------------------------------------------
Proceeds from issuance of debt 90,300,000
Payment on outstanding debt (78,000,000)
Proceeds from shares sold 72,309,800
Payment on shares redeemed (37,405,611)
Cash distributions paid (3,663,975)
-------------
Net cash provided by financing activities 43,540,214
- --------------------------------------------------------------------------------------
Net increase in cash 386,165
- --------------------------------------------------------------------------------------
Cash, beginning balance 74,713
-------------
Cash, ending balance $ 460,878
=============
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of
dividends and distributions of $4,735,551.
Cash paid for interest on bank borrowings--$169,654.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED JULY 31, 2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.51 $ 10.99 $ 10.89 $ 10.36 $ 11.21
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .67 .67 .53 .55 .53
Net realized and unrealized gain (loss) .23 (.52) .08 .51 (.82)
-----------------------------------------------------------------------------
Total from investment operations .90 .15 .61 1.06 (.29)
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.65) (.63) (.51) (.53) (.55)
Distributions from net realized gain -- -- -- -- (.01)
-----------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.65) (.63) (.51) (.53) (.56)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.76 $ 10.51 $ 10.99 $ 10.89 $ 10.36
=============================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 8.63% 1.21% 5.79% 10.42% (2.47)%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 94,214 $ 61,825 $ 47,305 $ 39,185 $ 31,937
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 78,828 $ 54,811 $ 42,809 $ 35,710 $ 35,286
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 6.28% 6.24% 4.88% 5.08% 5.26%
Total expenses 0.98% 1.02% 0.84% 0.87% 1.09%
Expenses after payments and waivers
and reduction to custodian expenses 0.78% 0.82% 0.63% 3 0.67% 3 0.79% 3
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 25% 93% 26% 27% 101%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares
on the reinvestment date, and redemption at the net asset value calculated on
the last business day of the fiscal period. Sales charges are not reflected in
the total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED JULY 31, 2004 2003 2002 2001 2000
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.52 $ 11.00 $ 10.90 $ 10.37 $ 11.21
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .60 .59 .45 .47 .47
Net realized and unrealized gain (loss) .23 (.53) .08 .51 (.83)
----------------------------------------------------------------------------
Total from investment operations .83 .06 .53 .98 (.36)
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.57) (.54) (.43) (.45) (.47)
Distributions from net realized gain -- -- -- -- (.01)
----------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.57) (.54) (.43) (.45) (.48)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.78 $ 10.52 $ 11.00 $ 10.90 $ 10.37
============================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 7.92% 0.46% 4.99% 9.58% (3.11)%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 51,329 $ 46,912 $ 43,888 $ 39,164 $ 35,338
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 50,920 $ 45,226 $ 41,532 $ 36,447 $ 38,064
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.54% 5.46% 4.12% 4.34% 4.50%
Total expenses 1.73% 1.78% 1.60% 1.62% 1.85%
Expenses after payments and waivers
and reduction to custodian expenses 1.53% 1.58% 1.39% 3 1.42% 3 1.55% 3
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 25% 93% 26% 27% 101%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares
on the reinvestment date, and redemption at the net asset value calculated on
the last business day of the fiscal period. Sales charges are not reflected in
the total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
CLASS C YEAR ENDED JULY 31, 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.51 $ 10.99 $ 10.89 $ 10.36 $ 11.21
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .59 .59 .44 .47 .46
Net realized and unrealized gain (loss) .24 (.53) .09 .51 (.83)
---------------------------------------------------------------------------
Total from investment operations .83 .06 .53 .98 (.37)
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.57) (.54) (.43) (.45) (.47)
Distributions from net realized gain -- -- -- -- (.01)
---------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.57) (.54) (.43) (.45) (.48)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.77 $ 10.51 $ 10.99 $ 10.89 $ 10.36
===========================================================================
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 7.91% 0.45% 4.99% 9.59% (3.20)%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 23,795 $ 17,784 $ 12,664 $ 8,622 $ 7,142
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 20,470 $ 16,770 $ 9,831 $ 7,301 $ 8,198
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 5.53% 5.49% 4.10% 4.33% 4.51%
Total expenses 1.73% 1.78% 1.60% 1.62% 1.85%
Expenses after payments and waivers
and reduction to custodian expenses 1.53% 1.58% 1.39% 3 1.42% 3 1.55% 3
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 25% 93% 26% 27% 101%
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares
on the reinvestment date, and redemption at the net asset value calculated on
the last business day of the fiscal period. Sales charges are not reflected in
the total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer New Jersey Municipal Fund (the Fund) is a separate series of
Oppenheimer Multi-State Municipal Trust, a non-diversified, open-end management
investment company registered under the Investment Company Act of 1940, as
amended. The Fund's investment objective is to seek as high a level of current
interest income exempt from federal and New Jersey income taxes for individual
investors as is consistent with preservation of capital. The Fund's investment
advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges 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 due
to each class having its own expenses, such as transfer and shareholder
servicing agent fees and shareholder communications, directly attributable to
that class. Class 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. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. 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.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of 60 days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. 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.
Foreign and domestic 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 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).
32 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment can take place up to ten days 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
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. As of July 31, 2004, the value of the
internally designated assets was $2,063,800. The purchase of securities on a
when-issued basis or forward commitment may increase the volatility of the
Fund's net asset value to the extent the Fund executes such transactions while
remaining substantially fully invested. The Fund may also sell securities that
it purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of July 31, 2004, the Fund had purchased $2,063,800 of
securities on a when-issued basis or forward commitment.
- --------------------------------------------------------------------------------
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 $17,154,513 as of July 31, 2004. Including the effect
of leverage, inverse floaters represent 16.29% of the Fund's total assets as of
July 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.
33 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.
NET UNREALIZED
DEPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3 TAX PURPOSES
-----------------------------------------------------------------------------
$1,385,860 $-- $4,592,333 $3,655,178
1. As of July 31, 2004, the Fund had $4,592,333 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of July 31, 2004, details
of the capital loss carryforwards were as follows:
EXPIRING
----------------------------------
2009 $2,925,051
2010 1,551,532
2012 115,750
----------
Total $4,592,333
==========
2. During the fiscal year ended July 31, 2004, the Fund did not utilize any
capital loss carryforward.
3. During the fiscal year ended July 31, 2003, the Fund utilized $5,100,207 of
capital loss carryforward to offset capital gains realized in that fiscal year.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund.
The tax character of distributions paid during the years ended July 31, 2004 and
July 31, 2003 was as follows:
YEAR ENDED YEAR ENDED
JULY 31, 2004 JULY 31, 2003
----------------------------------------------------------------
Distributions paid from:
Exempt-interest dividends $8,364,632 $6,186,850
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of July 31, 2004 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.
34 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
Federal tax cost of securities $185,716,141
============
Gross unrealized appreciation $ 4,078,342
Gross unrealized depreciation (7,733,520)
------------
Net unrealized depreciation $ (3,655,178)
============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the year ended July 31,
2004, the Fund's projected benefit obligations were increased by $2,759 and
payments of $1,575 were made to retired trustees, resulting in an accumulated
liability of $16,263 as of July 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.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
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 U.S. generally
accepted accounting principles 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.
35 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
YEAR ENDED JULY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------
CLASS A
Sold 4,157,479 $ 45,439,740 2,447,732 $ 26,349,769
Dividends and/or
distributions reinvested 237,670 2,588,895 170,097 1,828,108
Redeemed (1,526,995) (16,516,500) (1,039,182) (11,126,073)
------------------------------------------------------------------
Net increase 2,868,154 $ 31,512,135 1,578,647 $ 17,051,804
==================================================================
- ------------------------------------------------------------------------------------------------
CLASS B
Sold 1,428,513 $ 15,622,837 1,364,294 $ 14,637,609
Dividends and/or
distributions reinvested 142,239 1,552,924 120,251 1,294,316
Redeemed (1,267,677) (13,794,600) (1,014,950) (10,872,246)
------------------------------------------------------------------
Net increase 303,075 $ 3,381,161 469,595 $ 5,059,679
==================================================================
- ------------------------------------------------------------------------------------------------
CLASS C
Sold 1,043,074 $ 11,511,732 918,241 $ 9,916,702
Dividends and/or
distributions reinvested 54,414 593,732 43,360 466,291
Redeemed (579,840) (6,294,850) (422,140) (4,527,604)
------------------------------------------------------------------
Net increase 517,648 $ 5,810,614 539,461 $ 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 year ended July 31, 2004, were $67,898,245
and $32,008,167, 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.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the year ended July 31, 2004, the Fund paid $84,227
to OFS for services to the Fund.
36 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
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 all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
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 those 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 and
Class C shares. The Distributor also receives a service fee of up to 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 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 July 31, 2004 for Class B and Class C shares were $1,944,539 and $397,371,
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
RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------
July 31, 2004 $118,554 $-- $97,081 $3,962
37 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
PAYMENTS AND WAIVERS OF EXPENSES. The Manager has voluntarily 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. During the year ended July
31, 2004, the Manager waived $300,512 of its management fees. 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.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees for all classes to 0.35% of average annual net assets per class. During the
year ended July 31, 2004, OFS waived $181, $44 and $48 for Class A, Class B and
Class C shares, respectively. This undertaking may be amended or withdrawn at
any time.
- --------------------------------------------------------------------------------
5. ILLIQUID SECURITIES
As of July 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 will not invest more than 15% of its net assets (determined at the time of
purchase and reviewed periodically) in illiquid securities. The aggregate value
of illiquid securities subject to this limitation as of July 31, 2004 was
$17,154,513, which represents 10.13% 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, to meet redemption obligations 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 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 $18,300,000 at July 31, 2004 at an
interest rate of 2.12%. For the year ended July 31, 2004, the average monthly
loan balance was $9,352,495 at an average daily interest rate of 1.777%. The
Fund had gross borrowings and gross loan repayments of $90,300,000 and
$78,000,000, respectively, during the year ended July 31, 2004. The maximum
amount of borrowings outstanding at any month-end was $19,600,000. The Fund paid
commitment fees of $1,240 and interest of $169,654 during the year ended July
31, 2004.
38 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
- --------------------------------------------------------------------------------
7. SUBSEQUENT EVENTS - LITIGATION
Three complaints have been filed as putative derivative and class actions
against the Manager, OFS and the Distributor (collectively, "OppenheimerFunds"),
as well as 51 of the Oppenheimer funds (collectively, the "Funds") including
this Fund, and nine directors/trustees of certain of the Funds (collectively,
the "Directors/Trustees"). The complaints allege that the Manager charged
excessive fees for distribution and other costs, improperly used assets of the
Funds in the form of directed brokerage commissions and 12b-1 fees to pay
brokers to promote sales of the Funds, and failed to properly disclose the use
of Fund assets to make those payments in violation of the Investment Company Act
of 1940 and the Investment Advisers Act of 1940. The complaints further allege
that by permitting and/or participating in those actions, the Directors/Trustees
breached their fiduciary duties to Fund shareholders under the Investment
Company Act of 1940 and at common law.
OppenheimerFunds believes that it is premature to render any opinion as to the
likelihood of an outcome unfavorable to them, the Funds or the
Directors/Trustees and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss. However,
OppenheimerFunds, the Funds and the Directors/Trustees believe that the
allegations contained in the complaints are without merit and intend to defend
these lawsuits vigorously.
39 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER MULTI-STATE MUNICIPAL TRUST:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer New Jersey Municipal Fund, (one of the portfolios constituting the
Oppenheimer Multi-State Municipal Trust) including the statement of investments,
as of July 31, 2004, and the related statements of operations and cash flows for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of July 31, 2004, by correspondence with the
custodian and brokers or by other appropriate auditing procedures where replies
from brokers were not received. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer New Jersey Municipal Fund as of July 31, 2004, the results of its
operations and its cash flows for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in conformity
with U.S. generally accepted accounting principles.
KPMG LLP
Denver, Colorado
August 20, 2004 except as to the note entitled "Subsequent Events-Litigation,"
which is as of September 14, 2004
40 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2005, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2004. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
None of the dividends paid by the Fund during the year ended July 31, 2004
are eligible for the corporate dividend-received deduction. The dividends were
derived from interest on municipal bonds and are not subject to federal income
taxes. To the extent a shareholder is subject to any state or local tax laws,
some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES Unaudited
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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
1.800.525.7048, (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 is 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 Fund's Form N-PX
filing is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.525.7048, and (ii) on the SEC's website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied and the SEC's Public
Reference Room in Washington D.C. and information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
41 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited
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NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER
FUND, LENGTH OF SERVICE, AGE TRUSTEESHIPS/DIRECTORSHIPS HELD BY TRUSTEE; NUMBER OF
PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN BY
TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803
TRUSTEES S. TUCSON WAY, CENTENNIAL, CO 80112-3924. EACH TRUSTEE
SERVES FOR AN INDEFINITE TERM, UNTIL HIS OR HER
RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Of Counsel (since June 1993) Hogan & Hartson (a law
Chairman of the Board firm); a director (since 2002) of Danielson Holding
of Trustees (since 2003); Corp. Formerly a director of Weyerhaeuser Corp.
Trustee (since 1993) (1999-April 2004), Caterpillar, Inc. (1993-December
Age: 73 2002), ConAgra Foods (1993-2001), Texas Instruments
(1993-2001) and FMC Corporation (1993-2001). Oversees
25 portfolios in the OppenheimerFunds.
ROBERT G. GALLI, A trustee or director of other Oppenheimer funds.
Trustee (since 1993) Oversees 35 portfolios in the OppenheimerFunds
Age: 71 complex.
PHILLIP A. GRIFFITHS, A director (since 1991) of the Institute for Advanced
Trustee (since 1999) Study, Princeton, N.J., a director (since 2001) of GSI
Age: 65 Lumonics, a trustee (since 1983) of Woodward Academy,
a Senior Advisor (since 2001) of The Andrew W. Mellon
Foundation. A member of: the National Academy of
Sciences (since 1979), American Academy of Arts and
Sciences (since 1995), American Philosophical Society
(since 1996) and Council on Foreign Relations (since
2002). Formerly a director of Bankers Trust New York
Corporation (1994-1999). Oversees 25 portfolios in the
OppenheimerFunds complex.
JOEL W. MOTLEY, Director (since January 2002) Columbia Equity
Trustee (since 2002) Financial Corp. (privately-held financial adviser);
Age: 52 Managing Director (since January 2002) Carmona Motley,
Inc. (privately-held financial adviser). Formerly a
Managing Director of Carmona Motley Hoffman Inc.
(privately-held financial adviser) (January
1998-December 2001). Oversees 25 portfolios in the
OppenheimerFunds complex.
KENNETH A. RANDALL, A director (since February 1972) of Dominion
Trustee (since 1989) Resources, Inc. (electric utility holding company);
Age: 77 formerly a director of Prime Retail, Inc. (real estate
investment trust) and Dominion Energy, Inc. (electric
power and oil & gas producer), President and Chief
Executive Officer of The Conference Board, Inc.
(international economic and business research) and a
director of Lumbermens Mutual Casualty Company,
American Motorists Insurance Company and American
Manufacturers Mutual Insurance Company. Oversees 25
portfolios in the OppenheimerFunds complex.
EDWARD V. REGAN, President, Baruch College, CUNY; a director of RBAsset
Trustee (since 1993) (real estate manager); a director of OffitBank;
Age: 74 formerly Trustee, Financial Accounting Foundation
(FASB and GASB), Senior Fellow of Jerome Levy
Economics Institute, Bard College, Chairman of
Municipal Assistance Corporation for the City of New
York, New York State Comptroller and Trustee of New
York State and Local Retirement Fund. Oversees 25
investment companies in the OppenheimerFunds complex.
RUSSELL S. REYNOLDS, JR., Chairman (since 1993) of The Directorship Search
Trustee (since 1989) Group, Inc. (corporate governance consulting and
Age: 72 executive recruiting); a Life Trustee of International
House (non-profit educational organization); a former
trustee of The Historical Society of the Town of
Greenwich. Oversees 25 portfolios in the
OppenheimerFunds complex.
42 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
TRUSTEES AND OFFICERS Unaudited / Continued
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DONALD W. SPIRO, Chairman Emeritus (since January 1991) of the Manager.
Vice Chairman of the Formerly a director (January 1969-August 1999) of the
Board of Trustees, Manager. Oversees 25 portfolios in the
Trustee (since 1989) OppenheimerFunds complex.
Age: 78
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INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS TWO
AND OFFICER WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH
FLOOR, NEW YORK, NY 10281-1008. MR. MURPHY SERVES FOR
AN INDEFINITE TERM, UNTIL HIS RESIGNATION, DEATH OR
REMOVAL.
JOHN V. MURPHY, Chairman, Chief Executive Officer and director (since
President and Trustee June 2001) and President (since September 2000) of the
(since 2001) Manager; President and a director or trustee of other
Age: 55 Oppenheimer funds; President and a director (since
July 2001) of Oppenheimer Acquisition Corp. (the
Manager's parent holding company) and of Oppenheimer
Partnership Holdings, Inc. (a holding company
subsidiary of the Manager); a director (since November
2001) of OppenheimerFunds Distributor, Inc. (a
subsidiary of the Manager); Chairman and a director
(since July 2001) of Shareholder Services, Inc. and of
Shareholder Financial Services, Inc. (transfer agent
subsidiaries of the Manager); President and a director
(since July 2001) of OppenheimerFunds Legacy Program
(a charitable trust program established by the
Manager); a director of the following investment
advisory subsidiaries of the Manager: OFI
Institutional Asset Management, Inc., Centennial Asset
Management Corporation, Trinity Investment Management
Corporation and Tremont Capital Management, Inc.
(since November 2001), HarbourView Asset Management
Corporation and OFI Private Investments, Inc. (since
July 2001); President (since November 1, 2001) and a
director (since July 2001) of Oppenheimer Real Asset
Management, Inc.; Executive Vice President (since
February 1997) of Massachusetts Mutual Life Insurance
Company (the Manager's parent company); a director
(since June 1995) of DLB Acquisition Corporation (a
holding company that owns the shares of Babson Capital
Management LLC); a member of the Investment Company
Institute's Board of Governors (elected to serve from
October 3, 2003 through September 30, 2006). Formerly,
Chief Operating Officer (September 2000-June 2001) of
the Manager; President and trustee (November
1999-November 2001) of MML Series Investment Fund and
MassMutual Institutional Funds (open-end investment
companies); a director (September 1999-August 2000) of
C.M. Life Insurance Company; President, Chief
Executive Officer and director (September 1999-August
2000) of MML Bay State Life Insurance Company; a
director (June 1989-June 1998) of Emerald Isle Bancorp
and Hibernia Savings Bank (a wholly-owned subsidiary
of Emerald Isle Bancorp). Oversees 73 portfolios as
Trustee/ Director and 10 portfolios as Officer in the
OppenheimerFunds complex.
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OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW IS AS
FOLLOWS: FOR MR. ZACK, TWO WORLD FINANCIAL CENTER, 225
LIBERTY STREET, 11TH FLOOR, NEW YORK, NY 10281-1008,
FOR MR. WIXTED AND MR. VANDEHEY, 6803 S. TUCSON WAY,
CENTENNIAL, CO 80112-3924, AND FOR MR. FIELDING, 350
LINDEN OAKS, ROCHESTER, NY 14625. EACH OFFICER SERVES
FOR AN ANNUAL TERM OR UNTIL HIS OR HER EARLIER
RESIGNATION, DEATH OR REMOVAL.
RONALD H. FIELDING, Senior Vice President of the Manager since January
Vice President (since 2002) 1996; Chairman of the Rochester Division of the
Age: 55 Manager since January 1996; an officer of 10
portfolios in the OppenheimerFunds complex.
43 | OPPENHEIMER NEW JERSEY MUNICIPAL FUND
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999)
Treasurer (since 1999) of the Manager; Treasurer of HarbourView Asset
Age: 44 Management Corporation, Shareholder Financial
Services, Inc., Shareholder Services, Inc.,
Oppenheimer Real Asset Management Corporation, and
Oppenheimer Partnership Holdings, Inc. (since March
1999), of OFI Private Investments, Inc. (since March
2000), of OppenheimerFunds International Ltd. and
OppenheimerFunds plc (since May 2000), of OFI
Institutional Asset Management, Inc. (since November
2000), and of OppenheimerFunds Legacy Program (a
Colorado non-profit corporation) (since June 2003);
Treasurer and Chief Financial Officer (since May 2000)
of OFI Trust Company (a trust company subsidiary of
the Manager); Assistant Treasurer (since March 1999)
of Oppenheimer Acquisition Corp. Formerly Assistant
Treasurer of Centennial Asset Management Corporation
(March 1999-October 2003) and OppenheimerFunds Legacy
Program (April 2000-June 2003); Principal and Chief
Operating Officer (March 1995-March 1999) at Bankers
Trust Company-Mutual Fund Services Division. An
officer of 83 portfolios in the OppenheimerFunds
complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and
Secretary (since 2001) General Counsel (since February 2002) of the Manager;
Age: 56 General Counsel and a director (since November 2001)
of the Distributor; General Counsel (since November
2001) of Centennial Asset Management Corporation;
Senior Vice President and General Counsel (since
November 2001) of HarbourView Asset Management
Corporation; Secretary and General Counsel (since
November 2001) of Oppenheimer Acquisition Corp.;
Assistant Secretary and a director (since October
1997) of OppenheimerFunds International Ltd. and
OppenheimerFunds plc; Vice President and a director
(since November 2001) of Oppenheimer Partnership
Holdings, Inc.; a director (since November 2001) of
Oppenheimer Real Asset Management, Inc.; Senior Vice
President, General Counsel and a director (since
November 2001) of Shareholder Financial Services,
Inc., Shareholder Services, Inc., OFI Private
Investments, Inc. and OFI Trust Company; Vice
President (since November 2001) of OppenheimerFunds
Legacy Program; Senior Vice President and General
Counsel (since November 2001) of OFI Institutional
Asset Management, Inc.; a director (since June 2003)
of OppenheimerFunds (Asia) Limited. Formerly Senior
Vice President (May 1985-December 2003), Acting
General Counsel (November 2001-February 2002) and
Associate General Counsel (May 1981-October 2001) of
the Manager; Assistant Secretary of Shareholder
Services, Inc. (May 1985-November 2001), Shareholder
Financial Services, Inc. (November 1989-November
2001); and OppenheimerFunds International Ltd.
(October 1997-November 2001). An officer of 83
portfolios in the OppenheimerFunds complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer
Vice President and Chief (since March 2004) of the Manager; Vice President
Compliance Officer (since June 1983) of OppenheimerFunds Distributor,
(since 2004) Inc., Centennial Asset Management Corporation and
Age: 53 Shareholder Services, Inc. Formerly (until February
2004) Vice President and Director of Internal Audit of
OppenheimerFunds, Inc. An officer of 83 portfolios in
the Oppenheimer funds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST.
44 | 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 registrant 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
(a) Audit Fees
The principal accountant for the audit of the registrant's
annual financial statements billed $18,000 in fiscal 2004 and
$15,000 in fiscal 2003.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees to the
registrant during the last two fiscal years.
The principal accountant for the audit of the registrant's
annual financial statements billed $39,500 in fiscal 2004 and
no such fees in fiscal 2003 to the registrant's investment
adviser or any entity controlling, controlled by, or under
common control with the adviser that provides ongoing
services to the registrant.
Such fees would include, among others: due diligence related
to mergers and acquisitions, accounting consultations and
audits in connection with acquisitions, internal control
reviews and consultation concerning financial accounting and
reporting standards.
(c) Tax Fees
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees in fiscal 2004
and $5,000 in fiscal 2003.
The principal accountant for the audit of the registrant's
annual financial statements billed $6,000 in fiscal 2004 and
no such fees in fiscal 2003 to the registrant's investment
adviser or any entity controlling, controlled by, or under
common control with the adviser that provides ongoing
services to the registrant.
Such fees would include, among others: tax compliance, tax
planning and tax advice. Tax compliance generally involves
preparation of original and amended tax returns, claims for a
refund and tax payment-planning services. Tax planning and tax
advice includes assistance with tax audits and appeals, tax
advice related to mergers and acquisitions and requests for
rulings or technical advice from taxing authorities.
(d) All Other Fees
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees in fiscal 2004
and $27 in fiscal 2003.
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees during the
last two fiscal years to the registrant's investment adviser
or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
registrant.
Such fees would include consultations regarding the
registrant's retirement plan with respect to its directors.
(e) (1) During its regularly scheduled periodic meetings, the
registrant's audit committee will pre-approve all audit,
audit-related, tax and other services to be provided by the
principal accountants of the registrant.
The audit committee has delegated pre-approval authority to
its Chairman for any subsequent new engagements that arise
between regularly scheduled meeting dates provided that any
fees such pre-approved are presented to the audit committee at
its next regularly scheduled meeting.
Pre-approval of non-audit services is waived provided that: 1)
the aggregate amount of all such services provided constitutes
no more than five percent of the total amount of fees paid by
the registrant to it principal accountant during the fiscal
year in which services are provided 2) such services were not
recognized by the registrant at the time of engagement as
non-audit services and 3) such services are promptly brought
to the attention of the audit committee of the registrant and
approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's
annual financial statements billed $45,500 in fiscal 2004 and
$5,027 in fiscal 2003 to the registrant and the registrant's
investment adviser or any entity controlling, controlled by,
or under common control with the adviser that provides ongoing
services to the registrant related to non-audit fees. Those
billings did not include any prohibited non-audit services as
defined by the Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of trustees has
considered whether the provision of non-audit services that
were rendered to the registrant's investment adviser, and any
entity controlling, controlled by, or under common control
with the investment adviser that provides ongoing services to
the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal account's
independence. No such services were rendered.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
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
July 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)(NOT APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)