UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-5867
OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
-----------------------------------------
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
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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. The Fund's strong results compared
to the benchmark index and peer group can be attributed to our emphasis on
higher-yielding securities that are undervalued, out of favor or misunderstood
in the marketplace. This focus not only provided yield for the Fund, but also
resulted in price appreciation as their value reflected the benefits of an
improving economy. In particular, the Fund witnessed price appreciation in the
hospital / healthcare sector and airline-related bonds. Secondarily, bonds held
by Oppenheimer Rochester National Municipals and issued by electric utilities,
paper and forest products companies also experienced this price appreciation.
In the Healthcare sector, both an improving economy and successful cost
cutting measures helped West Penn-Allegheny Healthcare System realign itself
with financial projections. New senior management at West Penn-Allegheny
successfully renegotiated contracts and has taken other steps the markets deemed
necessary to improve the performance, which we think will continue. By 2004,
West Penn-Allegheny reported operating profits, and the markets responded by
sharply increasing the value of these bonds. Other issues, such as Valley Health
Systems in California and Progressive Healthcare in Louisiana, also reported
improved cash flows, which benefited the Fund.
The outlook for airlines improved dramatically as the U.S. economy gained
momentum and overcame the initial impact of 9/11. For example, in early 2003
American Airlines stood on the edge of bankruptcy, but efforts by management and
personnel helped the company avoid having to file bankruptcy. As a result, all
American Airlines bonds rebounded sharply. The Fund owned a large position in
American Airlines bonds that, while volatile during early 2003, were paid off at
par prior to their maturity date later that year. We note that, despite positive
developments for airlines during the reporting period, the industry remains
volatile; particularly as higher fuel costs have slowed the recent positive
momentum. We have proactively taken steps to limit the Fund's exposure to any
single airline (less than 5% of assets) and to broadly diversify airline
holdings across a variety of structure and maturities while largely avoiding the
most troubled airlines. As of July 31, 2004, airline related bonds represented
16.9% of total Fund assets.
Master settlement agreement (MSA) bonds, or Tobacco bonds, continued to
represent a major portion of the portfolio (24.9% of total assets). These bonds,
which are backed by each state's (or U.S. territory's) share of the national
settlement agreement with major tobacco manufacturers, are rated BBB but provide
considerably higher income than other similarly rated bonds. Ongoing litigation
in the tobacco industry lead to volatility in the
9 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
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FUND PERFORMANCE DISCUSSION
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MSA bonds over the past year, with prices climbing sharply then losing ground
in the wake of several court rulings. Nonetheless, the tobacco companies met
their obligations, and these bonds were a consistent source of high current
income for the Fund.
We continue to believe that MSA bonds entail less risk than their credit
rating or price volatility suggest. Although litigation risk will continue to
overhang the tobacco industry, we expect MSA bonds to trade similarly to
comparable rated bonds as the market becomes more comfortable with the credit
and new issuance dissipates.
A relatively new and growing area of both municipal bond issuance and
investment for the Fund was gaming and casinos. As of July 31, 2004, 4.8% of
assets were invested in bonds issued by tribally owned casinos in California,
New Mexico and Florida. This new area of issuance has been met with skepticism,
but our credit research indicates that these bonds could offer premium yields
without significant risk to the portfolio.
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.
All in all, a number of factors have caused volatility in some industry
sectors in which the Fund invests. But this same volatility has presented
opportunities for our research team to identify bonds that can lock in immediate
yield advantages and the potential for price appreciation.
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
10 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
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.
11 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
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FUND PERFORMANCE DISCUSSION
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CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Rochester National Municipals (Class A)
Lehman Brothers Municipal Bond Index
[GRAPHIC] Oppenheimer
Rochester National Lehman Brothers
Municipals (Class A) Municipal Bond Index
12/31/1994 $ 9,525 $10,000
03/31/1995 10,254 10,707
06/30/1995 10,478 10,965
09/30/1995 10,715 11,280
12/31/1995 11,202 11,746
03/31/1996 11,065 11,604
06/30/1996 11,118 11,693
07/31/1996 1 11,230 11,799
10/31/1996 11,477 12,096
01/31/1997 11,678 12,289
04/30/1997 11,706 12,339
07/31/1997 12,284 13,009
10/31/1997 12,451 13,123
01/31/1998 12,834 13,531
04/30/1998 12,789 13,486
07/31/1998 13,085 13,788
10/31/1998 13,360 14,175
01/31/1999 13,592 14,431
04/30/1999 13,589 14,423
07/31/1999 13,263 14,185
10/31/1999 12,814 13,924
01/31/2000 12,640 13,907
04/30/2000 13,007 14,291
07/31/2000 13,433 14,796
10/31/2000 13,737 15,109
01/31/2001 14,295 15,754
04/30/2001 14,296 15,773
07/31/2001 14,779 16,287
10/31/2001 15,143 16,697
01/31/2002 15,103 16,684
04/30/2002 15,440 16,877
07/31/2002 15,797 17,380
10/31/2002 15,000 17,676
01/31/2003 14,855 17,929
04/30/2003 15,158 18,311
07/31/2003 16,170 18,007
10/31/2003 17,431 18,580
01/31/2004 18,494 19,038
04/30/2004 18,176 18,801
07/31/2004 18,235 19,048
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
7/31/04
1-Year 7.42% 5-Year 5.54% 10-Year 5.83%
1. The Fund changed its fiscal year end from 12/31 to 7/31.
12 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Rochester National Municipals (Class B)
Lehman Brothers Municipal Bond Index
[GRAPHIC] Oppenheimer
Rochester National Lehman Brothers
Municipals (Class B) Municipal Bond Index
12/31/1994 $10,000 $10,000
03/31/1995 10,744 10,707
06/30/1995 10,958 10,965
09/30/1995 11,194 11,280
12/31/1995 11,681 11,746
03/31/1996 11,507 11,604
06/30/1996 11,540 11,693
07/31/1996 1 11,659 11,799
10/31/1996 11,894 12,096
01/31/1997 12,068 12,289
04/30/1997 12,086 12,339
07/31/1997 12,657 13,009
10/31/1997 12,805 13,123
01/31/1998 13,174 13,531
04/30/1998 13,103 13,486
07/31/1998 13,380 13,788
10/31/1998 13,634 14,175
01/31/1999 13,845 14,431
04/30/1999 13,816 14,423
07/31/1999 13,460 14,185
10/31/1999 12,968 13,924
01/31/2000 12,780 13,907
04/30/2000 13,126 14,291
07/31/2000 13,529 14,796
10/31/2000 13,808 15,109
01/31/2001 14,347 15,754
04/30/2001 14,349 15,773
07/31/2001 14,833 16,287
10/31/2001 15,198 16,697
01/31/2002 15,158 16,684
04/30/2002 15,496 16,877
07/31/2002 15,854 17,380
10/31/2002 15,054 17,676
01/31/2003 14,909 17,929
04/30/2003 15,213 18,311
07/31/2003 16,229 18,007
10/31/2003 17,495 18,580
01/31/2004 18,561 19,038
04/30/2004 18,242 18,801
07/31/2004 18,302 19,048
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
7/31/04
1-Year 6.89% 5-Year 5.44% 10-Year 5.87%
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 15 FOR FURTHER INFORMATION.
1. The Fund changed its fiscal year end from 12/31 to 7/31.
13 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
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FUND PERFORMANCE DISCUSSION
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CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Rochester National Municipals (Class C)
Lehman Brothers Municipal Bond Index
[GRAPHIC] Oppenheimer
Rochester National Lehman Brothers
Municipals (Class C) Municipal Bond Index
08/29/1995 $10,000 $10,000
09/30/1995 10,131 10,063
12/31/1995 10,586 10,479
03/31/1996 10,433 10,353
06/30/1996 10,455 10,432
07/31/1996 1 10,563 10,526
10/31/1996 10,775 10,791
01/31/1997 10,929 10,963
04/30/1997 10,935 11,008
07/31/1997 11,452 11,605
10/31/1997 11,585 11,708
01/31/1998 11,920 12,072
04/30/1998 11,855 12,032
07/31/1998 12,106 12,301
10/31/1998 12,337 12,647
01/31/1999 12,528 12,874
04/30/1999 12,502 12,868
07/31/1999 12,179 12,655
10/31/1999 11,744 12,423
01/31/2000 11,562 12,407
04/30/2000 11,876 12,750
07/31/2000 12,242 13,201
10/31/2000 12,495 13,480
01/31/2001 12,979 14,055
04/30/2001 12,957 14,072
07/31/2001 13,370 14,531
10/31/2001 13,674 14,896
01/31/2002 13,612 14,884
04/30/2002 13,890 15,057
07/31/2002 14,184 15,506
10/31/2002 13,429 15,770
01/31/2003 13,285 15,995
04/30/2003 13,533 16,336
07/31/2003 14,408 16,065
10/31/2003 15,490 16,576
01/31/2004 16,404 16,985
04/30/2004 16,091 16,773
07/31/2004 16,113 16,994
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
7/31/04
1-Year 10.83% 5-Year 5.76% Since Inception (8/29/95) 5.49%
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 15 FOR FURTHER INFORMATION.
1. The Fund changed its fiscal year end from 12/31 to 7/31.
14 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
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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 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 10/1/93. 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 10/1/93. 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.
15 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
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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
16 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
the Statement of Additional Information). Therefore, 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.
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BEGINNING ENDING
ACCOUNT ACCOUNT EXPENSES PAID
VALUE VALUE DURING 6 MONTHS
(2/1/04) (7/31/04) ENDED 7/31/04
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Class A Actual $1,000.00 $ 986.00 $3.85
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Class A Hypothetical 1,000.00 1,020.98 3.92
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Class B Actual 1,000.00 982.30 7.64
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Class B Hypothetical 1,000.00 1,017.16 7.77
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Class C Actual 1,000.00 982.20 7.64
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Class C Hypothetical 1,000.00 1,017.16 7.77
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 0.78%
- ------------------------
Class B 1.55
- ------------------------
Class C 1.55
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17 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
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--104.5%
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ALABAMA--0.9%
$ 180,000 AL IDA Solid Waste Disposal (Pine City Fiber Company) 6.450% 12/01/2023 $ 179,487
- -----------------------------------------------------------------------------------------------------------------------------
15,000 AL IDA Solid Waste Disposal (Pine City Fiber Company) 6.450 12/01/2023 14,847
- -----------------------------------------------------------------------------------------------------------------------------
7,750,000 Butler, AL IDB (James River Corp. of VA) 8.000 09/01/2028 7,916,393
- -----------------------------------------------------------------------------------------------------------------------------
2,350,000 Huntsville, AL Special Care Facilities Financing
Authority (Carlton Cove) 1 8.125 11/15/2031 1,527,500
- -----------------------------------------------------------------------------------------------------------------------------
2,250,000 Rainbow City, AL Special Health Care Facilities
Financing Authority (Regency Pointe) 8.250 01/01/2031 2,179,440
--------------
11,817,667
- -----------------------------------------------------------------------------------------------------------------------------
ALASKA--0.4%
260,000 AK Northern Tobacco Securitization Corp. (TASC) 5.375 06/01/2021 219,136
- -----------------------------------------------------------------------------------------------------------------------------
275,000 AK Northern Tobacco Securitization Corp. (TASC) 5.500 06/01/2029 223,003
- -----------------------------------------------------------------------------------------------------------------------------
5,170,000 AK Northern Tobacco Securitization Corp. (TASC) 6.500 06/01/2031 4,503,639
--------------
4,945,778
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ARIZONA--1.0%
7,000,000 AZ Health Facilities Authority (American Baptist Estates) 7.750 11/15/2033 7,078,470
- -----------------------------------------------------------------------------------------------------------------------------
1,355,000 Gila County, AZ IDA (Asarco, Inc.) 5.550 01/01/2027 988,391
- -----------------------------------------------------------------------------------------------------------------------------
310,000 Maricopa County, AZ IDA (Sun King Apartments) 6.750 11/01/2018 272,214
- -----------------------------------------------------------------------------------------------------------------------------
490,000 Maricopa County, AZ IDA (Sun King Apartments) 6.750 05/01/2031 405,877
- -----------------------------------------------------------------------------------------------------------------------------
20,000 Navajo County, AZ IDA (Stone Container Corp.) 7.400 04/01/2026 20,143
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 Phoenix, AZ IDA (America West Airlines) 6.250 06/01/2019 1,540,600
- -----------------------------------------------------------------------------------------------------------------------------
1,385,000 Pima County, AZ IDA (Basis School) 7.375 07/01/2034 1,398,919
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Pima County, AZ IDA (Desert Tech Schools) 7.000 02/01/2024 992,130
--------------
12,696,744
- -----------------------------------------------------------------------------------------------------------------------------
ARKANSAS--0.2%
20,000 Little River County, AR (Georgia-Pacific Corp.) 5.600 10/01/2026 18,450
- -----------------------------------------------------------------------------------------------------------------------------
2,160,000 North Little Rock, AR Residential Hsg. Facilities
Board RITES 1 17.683 2 02/20/2017 2,283,293
- -----------------------------------------------------------------------------------------------------------------------------
5,000 Pope County, AR Pollution Control
(Arkansas Power & Light Company) 6.300 11/01/2020 5,003
--------------
2,306,746
- -----------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--12.0%
4,945,000 CA CDA (Aspire Public Schools) 7.250 08/01/2031 5,019,274
- -----------------------------------------------------------------------------------------------------------------------------
9,000,000 CA CDA (East Valley Tourist) 9.250 10/01/2020 9,764,910
- -----------------------------------------------------------------------------------------------------------------------------
19,000,000 CA CDA (East Valley Tourist) 11.000 10/01/2020 19,009,880
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 CA CDA (Elder Care Alliance) 8.250 11/15/2032 2,944,680
- -----------------------------------------------------------------------------------------------------------------------------
680,000 CA County Tobacco Securitization Agency (TASC) 5.750 06/01/2029 577,320
- -----------------------------------------------------------------------------------------------------------------------------
2,610,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2035 2,080,535
- -----------------------------------------------------------------------------------------------------------------------------
4,000,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2043 3,147,800
18 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,425,000 CA County Tobacco Securitization Agency (TASC) 6.000% 06/01/2038 $ 1,150,745
- -----------------------------------------------------------------------------------------------------------------------------
515,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2042 413,648
- -----------------------------------------------------------------------------------------------------------------------------
3,625,000 CA Golden State Tobacco Securitization Corp. 6.250 06/01/2033 3,287,513
- -----------------------------------------------------------------------------------------------------------------------------
6,810,000 CA Golden State Tobacco Securitization Corp. 6.625 06/01/2040 5,999,474
- -----------------------------------------------------------------------------------------------------------------------------
7,135,000 CA Golden State Tobacco Securitization Corp. 6.750 06/01/2039 6,439,195
- -----------------------------------------------------------------------------------------------------------------------------
2,720,000 CA Golden State Tobacco Securitization Corp.
Fixed Receipt 5.500 06/01/2043 2,729,221
- -----------------------------------------------------------------------------------------------------------------------------
7,320,000 CA Golden State Tobacco Securitization Corp. RITES 1 16.181 2 06/01/2043 7,419,259
- -----------------------------------------------------------------------------------------------------------------------------
6,800,000 CA Golden State Tobacco Securitization Corp. RITES 1 17.351 2 06/01/2043 7,321,832
- -----------------------------------------------------------------------------------------------------------------------------
14,400,000 CA Statewide CDA (Fairfield Apartments) 7.250 01/01/2035 14,461,488
- -----------------------------------------------------------------------------------------------------------------------------
2,500,000 CA Statewide Financing Authority Tobacco
Settlement (TASC) 6.000 05/01/2037 2,022,350
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 CA Statewide Financing Authority Tobacco
Settlement (TASC) 6.000 05/01/2043 802,360
- -----------------------------------------------------------------------------------------------------------------------------
5,000,000 CA Valley Health System COP 6.875 05/15/2023 4,208,800
- -----------------------------------------------------------------------------------------------------------------------------
5,485,000 Cabazon, CA Band Mission Indians 3 8.375 07/01/2015 5,492,131
- -----------------------------------------------------------------------------------------------------------------------------
5,400,000 Cabazon, CA Band Mission Indians 3 8.750 07/01/2019 5,406,804
- -----------------------------------------------------------------------------------------------------------------------------
1,535,000 Lathrop, CA Special Tax Community Facilities
District No. 03-2 7.000 09/01/2033 1,532,022
- -----------------------------------------------------------------------------------------------------------------------------
3,250,000 Long Beach, CA Harbor DRIVERS 1 16.699 2 05/15/2027 3,292,510
- -----------------------------------------------------------------------------------------------------------------------------
19,000,000 Los Angeles, CA Regional Airports Improvement Corp.
(American Airlines) 7.500 12/01/2024 16,196,550
- -----------------------------------------------------------------------------------------------------------------------------
7,595,000 Los Angeles, CA Regional Airports Improvement Corp.
(Delta-Continental Airlines) 9.250 08/01/2024 7,599,177
- -----------------------------------------------------------------------------------------------------------------------------
2,810,000 Northern CA Tobacco Securitization Authority (TASC) 5.375 06/01/2041 2,043,713
- -----------------------------------------------------------------------------------------------------------------------------
120,000 Northern CA Tobacco Securitization Authority (TASC),
Series B 5.000 06/01/2028 100,163
- -----------------------------------------------------------------------------------------------------------------------------
5,025,000 Southern CA Tobacco Securitization Authority (TASC) 5.500 06/01/2036 4,044,070
- -----------------------------------------------------------------------------------------------------------------------------
8,550,000 Southern CA Tobacco Securitization Authority (TASC) 5.625 06/01/2043 6,462,261
- -----------------------------------------------------------------------------------------------------------------------------
8,210,000 Southern CA Tobacco Securitization Authority (TASC) 6.000 06/01/2043 6,383,357
--------------
157,353,042
- -----------------------------------------------------------------------------------------------------------------------------
COLORADO--1.0%
2,000,000 CO Educational & Cultural Facilities Authority
(Colorado Lutheran High School Assoc.) 7.625 06/01/2034 1,976,500
- -----------------------------------------------------------------------------------------------------------------------------
11,000,000 Lincoln Park, CO Metropolitan District 7.750 12/01/2026 11,370,480
--------------
13,346,980
- -----------------------------------------------------------------------------------------------------------------------------
CONNECTICUT--0.4%
1,500,000 CT Devel. Authority Airport Facility (Learjet) 7.950 04/01/2026 1,713,480
- -----------------------------------------------------------------------------------------------------------------------------
2,980,000 CT HFA ROLs 1 17.487 2 05/15/2033 3,124,530
--------------
4,838,010
19 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA--1.0%
$10,235,000 District of Columbia Tobacco Settlement Financing Corp. 6.750% 05/15/2040 $ 9,071,895
- -----------------------------------------------------------------------------------------------------------------------------
4,575,000 Metropolitan Washington, D.C. Airport Authority ROLs 1 17.134 2 10/01/2032 4,667,781
--------------
13,739,676
- -----------------------------------------------------------------------------------------------------------------------------
FLORIDA--7.7%
2,750,000 Beacon, FL Tradeport Community Devel. District RITES 1 17.748 2 05/01/2032 3,211,670
- -----------------------------------------------------------------------------------------------------------------------------
7,625,000 Bonnet Creek, FL Resort Community Devel. District
Special Assessment 7.500 05/01/2034 7,995,651
- -----------------------------------------------------------------------------------------------------------------------------
1,900,000 Dade County, FL IDA (Miami Cerebral Palsy Residence) 8.000 06/01/2022 1,932,262
- -----------------------------------------------------------------------------------------------------------------------------
8,410,000 FL Capital Projects Finance Authority CCRC
(Glenridge on Palmer Ranch) 8.000 06/01/2032 8,579,882
- -----------------------------------------------------------------------------------------------------------------------------
715,000 FL Capital Trust Agency (American Opportunity) 8.250 12/01/2038 660,767
- -----------------------------------------------------------------------------------------------------------------------------
9,650,000 FL Capital Trust Agency (Seminole Tribe Convention) 8.950 10/01/2033 11,163,217
- -----------------------------------------------------------------------------------------------------------------------------
6,800,000 FL Capital Trust Agency (Seminole Tribe Convention) 10.000 10/01/2033 8,115,120
- -----------------------------------------------------------------------------------------------------------------------------
5,000,000 FL Capital Trust Agency, FL Multifamily Affordable Hsg.,
Series C 8.125 10/01/2038 4,793,950
- -----------------------------------------------------------------------------------------------------------------------------
260,000 FL HFA (Multifamily Hsg.), Series I 6.625 07/01/2028 229,252
- -----------------------------------------------------------------------------------------------------------------------------
690,000 FL HFA (Multifamily Hsg.), Series I-1 6.100 01/01/2009 680,409
- -----------------------------------------------------------------------------------------------------------------------------
1,675,000 FL HFC (Tallahassee Augustine Club Apartments) 8.250 10/01/2030 1,591,585
- -----------------------------------------------------------------------------------------------------------------------------
665,000 Grand Haven, FL Community Devel. District Special
Assessment, Series B 6.900 05/01/2019 673,465
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 Hillsborough County, FL IDA (National Gypsum Company) 7.125 04/01/2030 2,107,580
- -----------------------------------------------------------------------------------------------------------------------------
4,500,000 Jacksonville, FL Health Facilities Authority ROLs 1 17.254 2 11/15/2032 4,552,380
- -----------------------------------------------------------------------------------------------------------------------------
12,810,000 Martin County, FL IDA (Indiantown Cogeneration) 7.875 12/15/2025 13,152,155
- -----------------------------------------------------------------------------------------------------------------------------
625,000 Martin County, FL IDA (Indiantown Cogeneration) 8.050 12/15/2025 639,775
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Miami Beach, FL Health Facilities Authority
(Mt. Sinai Medical Center) 6.700 11/15/2019 1,024,880
- -----------------------------------------------------------------------------------------------------------------------------
500,000 Miami Beach, FL Health Facilities Authority
(Mt. Sinai Medical Center) 6.800 11/15/2031 510,265
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 Miami, FL Health Facilities Authority (Mercy Hospital) IRS 8.850 2 08/15/2015 2,087,440
- -----------------------------------------------------------------------------------------------------------------------------
15,000 Pinellas County, FL EFA (Eckerd College) 7.750 07/01/2014 15,019
- -----------------------------------------------------------------------------------------------------------------------------
10,000,000 Reunion East, FL Community Devel. District, Series A 7.375 05/01/2033 10,647,700
- -----------------------------------------------------------------------------------------------------------------------------
3,965,000 Sanford, FL Airport Facilities Authority
(Central Florida Terminals) 7.500 05/01/2010 3,009,356
- -----------------------------------------------------------------------------------------------------------------------------
5,880,000 Sanford, FL Airport Facilities Authority
(Central Florida Terminals) 7.500 05/01/2015 4,352,200
- -----------------------------------------------------------------------------------------------------------------------------
1,145,000 Sanford, FL Airport Facilities Authority
(Central Florida Terminals) 7.500 05/01/2021 804,076
- -----------------------------------------------------------------------------------------------------------------------------
9,895,000 Sanford, FL Airport Facilities Authority
(Central Florida Terminals) 7.750 05/01/2021 7,106,490
- -----------------------------------------------------------------------------------------------------------------------------
880,000 Tampa Palms, FL Open Space & Transportation CDD 7.500 05/01/2018 933,662
--------------
100,570,208
20 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
GEORGIA--2.2%
$ 3,000,000 Atlanta, GA Devel. Authority (ADA/CAU Partners) 6.250% 07/01/2036 $ 3,187,890
- -----------------------------------------------------------------------------------------------------------------------------
140,000 Atlanta, GA Urban Residential Finance Authority
(Spring Branch Apartments) 8.500 04/01/2026 136,795
- -----------------------------------------------------------------------------------------------------------------------------
3,605,000 Augusta, GA Hsg. Rehabilitation Agency (Bon Air) 7.500 03/01/2014 3,629,406
- -----------------------------------------------------------------------------------------------------------------------------
80,000 Charlton County, GA Solid Waste Management
Authority (Chesser Island Road Landfill) 7.375 04/01/2018 80,030
- -----------------------------------------------------------------------------------------------------------------------------
370,000 Columbus, GA Hsg. Authority
(Columbus Gardens Elderly Hsg.) 8.250 01/01/2024 364,202
- -----------------------------------------------------------------------------------------------------------------------------
3,685,000 Rockdale County, GA Devel. Authority (Visy Paper) 7.400 01/01/2016 3,800,709
- -----------------------------------------------------------------------------------------------------------------------------
14,500,000 Rockdale County, GA Devel. Authority (Visy Paper) 7.500 01/01/2026 15,001,700
- -----------------------------------------------------------------------------------------------------------------------------
425,000 Savannah, GA EDA (Skidway Health & Living Services) 7.400 01/01/2024 427,138
- -----------------------------------------------------------------------------------------------------------------------------
1,700,000 Savannah, GA EDA (Skidway Health & Living Services) 7.400 01/01/2034 1,708,551
- -----------------------------------------------------------------------------------------------------------------------------
35,000 Savannah, GA EDA (Stone Container Corp. Project) 7.400 04/01/2026 35,307
--------------
28,371,728
- -----------------------------------------------------------------------------------------------------------------------------
HAWAII--1.2%
2,500,000 HI Department of Budget & Finance RITES 1 15.114 2 12/01/2022 2,586,900
- -----------------------------------------------------------------------------------------------------------------------------
2,125,000 HI Department of Budget & Finance RITES 1 15.510 2 09/01/2032 2,076,975
- -----------------------------------------------------------------------------------------------------------------------------
8,000,000 HI Department of Budget & Finance Special Purpose
(Kahala Nui) 8.000 11/15/2033 8,032,640
3,285,000 HI Department of Transportation (Continental Airlines) 7.000 06/01/2020 2,704,442
--------------
15,400,957
- -----------------------------------------------------------------------------------------------------------------------------
ILLINOIS--4.7%
8,000,000 Centerpoint, IL Intermodal Center Program 8.000 06/15/2023 7,792,720
- -----------------------------------------------------------------------------------------------------------------------------
6,400,000 Chicago, IL O'Hare International Airport
(American Airlines) 8.200 12/01/2024 4,940,544
- -----------------------------------------------------------------------------------------------------------------------------
8,050,000 Chicago, IL O'Hare International Airport RITES 1 19.065 2 01/01/2029 10,531,654
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 Chicago, IL O'Hare International Airport ROLs 1 16.118 2 01/01/2034 1,730,760
- -----------------------------------------------------------------------------------------------------------------------------
23,500,000 IL DFA (Citgo Petroleum Corp.) 8.000 06/01/2032 25,365,430
- -----------------------------------------------------------------------------------------------------------------------------
1,500,000 IL Health Facilities Authority 6.900 11/15/2033 1,483,050
- -----------------------------------------------------------------------------------------------------------------------------
2,125,000 IL Health Facilities Authority RITES 1 15.806 2 02/15/2025 2,212,168
- -----------------------------------------------------------------------------------------------------------------------------
10,000 IL Hsg. Devel. Authority (Multifamily Hsg.), Series A 7.100 07/01/2026 10,011
- -----------------------------------------------------------------------------------------------------------------------------
500,000 Peoria, IL Hsg. (Peoria Oak Woods Apartments) 7.750 10/15/2033 488,345
- -----------------------------------------------------------------------------------------------------------------------------
50,000 Pulaski County, IL Finance Corp. (Detention Facility) 1 7.500 08/01/2018 48,583
- -----------------------------------------------------------------------------------------------------------------------------
8,000,000 Robbins, IL Res Rec (Robbins Res Rec Partners) 1 7.250 10/15/2024 7,100,000
--------------
61,703,265
- -----------------------------------------------------------------------------------------------------------------------------
INDIANA--1.7%
1,690,000 IN Health Facilities Financing Authority RITES 1 17.259 2 11/01/2031 1,758,580
- -----------------------------------------------------------------------------------------------------------------------------
2,500,000 IN Health Facilities Financing Authority RITES 1 17.282 2 11/01/2031 2,601,450
- -----------------------------------------------------------------------------------------------------------------------------
17,500,000 North Manchester, IN (Estelle Peabody Memorial Home) 7.250 07/01/2033 17,760,925
--------------
22,120,955
21 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
IOWA--2.6%
$21,905,000 IA Tobacco Settlement Authority (TASC) 5.300% 06/01/2025 $ 17,677,554
- -----------------------------------------------------------------------------------------------------------------------------
20,975,000 IA Tobacco Settlement Authority (TASC) 5.600 06/01/2035 16,036,227
--------------
33,713,781
- -----------------------------------------------------------------------------------------------------------------------------
KANSAS--0.1%
1,300,000 Lenaxa, KS Multifamily Hsg. (Meadows Apartments) 7.950 10/15/2035 1,233,388
- -----------------------------------------------------------------------------------------------------------------------------
KENTUCKY--4.4%
5,000,000 Henderson County, KY Solid Waste Disposal
(MacMillan Bloedel) 7.000 03/01/2025 5,227,700
- -----------------------------------------------------------------------------------------------------------------------------
6,455,000 Kenton County, KY Airport Special Facilities (Delta Airlines) 6.125 02/01/2022 4,132,943
- -----------------------------------------------------------------------------------------------------------------------------
22,155,000 Kenton County, KY Airport Special Facilities (Delta Airlines) 7.125 02/01/2021 16,118,206
- -----------------------------------------------------------------------------------------------------------------------------
100,000 Kenton County, KY Airport Special Facilities (Delta Airlines) 7.250 02/01/2022 73,143
- -----------------------------------------------------------------------------------------------------------------------------
6,870,000 Kenton County, KY Airport Special Facilities (Delta Airlines) 7.500 02/01/2012 5,556,937
- -----------------------------------------------------------------------------------------------------------------------------
19,775,000 Kenton County, KY Airport Special Facilities (Delta Airlines) 7.500 02/01/2020 15,048,182
- -----------------------------------------------------------------------------------------------------------------------------
2,780,000 Kuttawa, KY (1st Mortgage-GF/Kentucky) 6.750 03/01/2029 2,586,846
- -----------------------------------------------------------------------------------------------------------------------------
2,900,000 Morgantown, KY Solid Waste Disposal (Imco Recycling) 6.000 05/01/2023 2,273,803
- -----------------------------------------------------------------------------------------------------------------------------
1,200,000 Morgantown, KY Solid Waste Disposal (Imco Recycling) 7.450 05/01/2022 1,121,772
- -----------------------------------------------------------------------------------------------------------------------------
5,740,000 Morgantown, KY Solid Waste Disposal (Imco Recycling) 7.650 05/01/2016 5,480,782
--------------
57,620,314
- -----------------------------------------------------------------------------------------------------------------------------
LOUISIANA--9.1%
45,000 Calcasieu Parish, LA Industrial Devel. Board Pollution
Control (Gulf States Utilities Company) 6.750 10/01/2012 45,233
- -----------------------------------------------------------------------------------------------------------------------------
1,295,000 Epps, LA COP 1 8.000 06/01/2018 1,324,992
- -----------------------------------------------------------------------------------------------------------------------------
3,800,000 LA CDA (Eunice Student Hsg. Foundation) 7.375 09/01/2033 3,475,594
- -----------------------------------------------------------------------------------------------------------------------------
825,000 LA Local Government EF&CD Authority 8.500 06/01/2038 818,045
- -----------------------------------------------------------------------------------------------------------------------------
1,190,000 LA Local Government EF&CD Authority
(Cypress Apartments) 8.000 04/20/2028 1,154,788
- -----------------------------------------------------------------------------------------------------------------------------
540,000 LA Local Government EF&CD Authority
(Sharlo Apartments) 8.000 06/20/2028 514,355
- -----------------------------------------------------------------------------------------------------------------------------
5,350,000 LA Public Facilities Authority (Progressive Healthcare) 6.375 10/01/2028 4,692,913
- -----------------------------------------------------------------------------------------------------------------------------
1,875,000 LA Public Facilities Authority ROLs 1 16.238 2 05/15/2022 2,037,713
- -----------------------------------------------------------------------------------------------------------------------------
70,010,000 LA Tobacco Settlement Financing Corp. (TASC) 3 5.875 05/15/2039 57,202,371
- -----------------------------------------------------------------------------------------------------------------------------
9,070,000 LA Tobacco Settlement Financing Corp. (TASC), Series B 5.500 05/15/2030 7,648,912
- -----------------------------------------------------------------------------------------------------------------------------
50,000 Lake Charles, LA Non-Profit HDC Section 8 (Chateau) 7.875 02/15/2025 51,750
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Port New Orleans, LA Industrial Devel.
(Continental Grain Company) 7.500 07/01/2013 1,031,200
- -----------------------------------------------------------------------------------------------------------------------------
19,650,000 St. Charles Parish, LA Pollution Control
(Louisiana Power & Light) 7.500 06/01/2021 20,037,105
- -----------------------------------------------------------------------------------------------------------------------------
7,020,000 St. Charles Parish, LA Pollution Control (Union Carbide) 7.350 11/01/2022 6,941,095
- -----------------------------------------------------------------------------------------------------------------------------
12,000,000 West Feliciana Parish, LA Pollution Control
(Gulf States Utilities Company) 9.000 05/01/2015 12,578,400
--------------
119,554,466
22 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
MAINE--0.7%
$ 7,595,000 ME Finance Authority Solid Waste Recycling Facilities
(Great Northern Paper) 7.750% 10/01/2022 $ 7,610,798
- -----------------------------------------------------------------------------------------------------------------------------
1,675,000 ME Hsg. Authority Mtg. ROLs 1 16.728 2 11/15/2022 1,792,217
--------------
9,403,015
- -----------------------------------------------------------------------------------------------------------------------------
MARYLAND--0.0%
15,000 Montgomery County, MD HOC (Multifamily Mtg.),
Series C 7.150 07/01/2023 15,016
- -----------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS--0.3%
800,000 MA DFA (Eastern Nazarene College) 5.625 04/01/2019 722,800
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 MA DFA (Eastern Nazarene College) 5.625 04/01/2029 848,210
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 MA GO ROLs 1 16.328 2 08/01/2027 2,055,080
--------------
3,626,090
- -----------------------------------------------------------------------------------------------------------------------------
MICHIGAN--1.0%
365,000 Detroit, MI HFC (Across The Park Section 8 Elderly Hsg.) 7.875 06/01/2010 372,399
- -----------------------------------------------------------------------------------------------------------------------------
2,475,000 MI Higher Education Student Loan Authority RITES 1 16.910 2 09/01/2026 2,629,688
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 MI Strategic Fund Limited Obligation
(Detroit Edison) ROLs1 18.150 2 06/01/2030 2,231,760
- -----------------------------------------------------------------------------------------------------------------------------
600,000 Wayne Charter County, MI Airport Facilities
(Northwest Airlines) 6.000 12/01/2029 437,610
- -----------------------------------------------------------------------------------------------------------------------------
5,175,000 Wayne Charter County, MI Airport Facilities
(Northwest Airlines) 6.750 12/01/2015 4,419,502
- -----------------------------------------------------------------------------------------------------------------------------
2,900,000 Wenonah Park Properties, MI (Bay City Hotel) 7.500 04/01/2033 2,717,416
--------------
12,808,375
- -----------------------------------------------------------------------------------------------------------------------------
MINNESOTA--2.9%
3,330,000 Hubbard County, MN Solid Waste (Potlatch Corp.) 7.375 08/01/2013 3,340,989
- -----------------------------------------------------------------------------------------------------------------------------
3,815,000 International Falls, MN Environmental Facilities
(Boise Cascade Corp.) 7.200 10/01/2024 3,859,597
- -----------------------------------------------------------------------------------------------------------------------------
1,250,000 Mahtomedi, MN Multifamily (Briarcliff) 7.350 06/01/2036 1,273,763
- -----------------------------------------------------------------------------------------------------------------------------
3,250,000 Minneapolis & St. Paul, MN Metropolitan Airports
Commission (Northwest Airlines) 6.500 04/01/2025 3,074,858
- -----------------------------------------------------------------------------------------------------------------------------
23,150,000 Minneapolis & St. Paul, MN Metropolitan Airports
Commission (Northwest Airlines) 7.000 04/01/2025 19,323,768
- -----------------------------------------------------------------------------------------------------------------------------
690,000 Rochester, MN Multifamily Hsg. (Eastridge Estates) 7.750 12/15/2034 676,883
- -----------------------------------------------------------------------------------------------------------------------------
1,700,000 St. Paul, MN Hsg. & Redevel. Authority
(Brigecreek Senior Place) 7.000 09/15/2037 1,699,847
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 St. Paul, MN Hsg. & Redevel. Authority
(Community of Peace Building Company) 7.875 12/01/2030 2,119,820
- -----------------------------------------------------------------------------------------------------------------------------
2,130,000 St. Paul, MN Hsg. & Redevel. Authority (Upper Landing) 7.000 03/01/2029 2,087,038
--------------
37,456,563
23 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI--0.0%
$ 320,000 Hinds County, MS Urban Renewal
(The Lodge Associates, Ltd.) 8.000% 10/15/2022 $ 189,136
- -----------------------------------------------------------------------------------------------------------------------------
MISSOURI--1.7%
1,000,000 Kansas City, MO IDA (Plaza Library) 5.900 03/01/2024 957,770
- -----------------------------------------------------------------------------------------------------------------------------
2,500,000 St. Joseph, MO IDA (Living Community of St. Joseph) 7.000 08/15/2032 2,599,250
- -----------------------------------------------------------------------------------------------------------------------------
2,335,000 St. Louis, MO IDA (Kiel Center Multipurpose Arena) 7.750 12/01/2013 2,410,187
- -----------------------------------------------------------------------------------------------------------------------------
15,400,000 St. Louis, MO IDA (Kiel Center Multipurpose Arena) 7.875 12/01/2024 15,900,500
--------------
21,867,707
- -----------------------------------------------------------------------------------------------------------------------------
MONTANA--1.2%
12,095,000 Lewis & Clark County, MT Environmental (Asarco) 5.850 10/01/2033 8,261,611
- -----------------------------------------------------------------------------------------------------------------------------
6,800,000 MT Board of Investment Exempt Facilities
(Stillwater Mining Company) 8.000 07/01/2020 7,009,848
--------------
15,271,459
- -----------------------------------------------------------------------------------------------------------------------------
NEVADA--0.2%
2,065,000 Clark County, NV Industrial Development RITES 1 17.310 2 12/01/2038 2,232,430
- -----------------------------------------------------------------------------------------------------------------------------
100,000 NV Hsg. Division (Single Family Mtg.), Series A 8.625 04/01/2016 101,270
- -----------------------------------------------------------------------------------------------------------------------------
125,000 NV Hsg. Division (Single Family Mtg.), Series B 7.850 10/01/2010 125,621
--------------
2,459,321
- -----------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE--0.4%
4,000,000 NH H&EFA (Franklin Pierce College) 6.050 10/01/2034 4,176,560
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 NH HE&H Facilities Authority (New England College) 5.750 03/01/2009 925,580
--------------
5,102,140
- -----------------------------------------------------------------------------------------------------------------------------
NEW JERSEY--7.9%
235,000 NJ EDA (American Airlines) 7.100 11/01/2031 150,849
- -----------------------------------------------------------------------------------------------------------------------------
100,000 NJ EDA (Cascade Corp.) 8.250 02/01/2026 100,380
- -----------------------------------------------------------------------------------------------------------------------------
900,000 NJ EDA (Continental Airlines) 5.500 04/01/2028 550,737
- -----------------------------------------------------------------------------------------------------------------------------
750,000 NJ EDA (Continental Airlines) 6.250 09/15/2029 562,350
- -----------------------------------------------------------------------------------------------------------------------------
1,150,000 NJ EDA (Continental Airlines) 6.400 09/15/2023 903,693
- -----------------------------------------------------------------------------------------------------------------------------
8,125,000 NJ EDA (Continental Airlines) 7.000 11/15/2030 6,382,756
- -----------------------------------------------------------------------------------------------------------------------------
6,000,000 NJ EDA (Continental Airlines) 7.200 11/15/2030 4,831,860
- -----------------------------------------------------------------------------------------------------------------------------
1,600,000 NJ EDA (Empowerment Zone-Cumberland) 7.750 08/01/2021 1,563,728
- -----------------------------------------------------------------------------------------------------------------------------
3,250,000 NJ EDA Retirement Community (Cedar Crest Village) 7.250 11/15/2031 3,297,938
- -----------------------------------------------------------------------------------------------------------------------------
1,180,000 NJ Tobacco Settlement Financing Corp. (TASC) 5.750 06/01/2032 1,034,600
- -----------------------------------------------------------------------------------------------------------------------------
36,070,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.000 06/01/2037 28,893,152
- -----------------------------------------------------------------------------------------------------------------------------
34,655,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.125 06/01/2042 27,845,639
- -----------------------------------------------------------------------------------------------------------------------------
32,630,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.250 06/01/2043 26,690,035
--------------
102,807,717
24 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
NEW MEXICO--1.0%
$11,500,000 Sandoval County, NM (Santa Ana Pueblo) 7.750% 07/01/2015 $ 11,566,815
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Ventana West, NM Public Improvement District
Special Levy 6.875 08/01/2033 1,008,260
--------------
12,575,075
- -----------------------------------------------------------------------------------------------------------------------------
NEW YORK--2.8%
50,000 Niagara County, NY Tobacco Asset Securitization Corp. 6.250 05/15/2034 47,138
- -----------------------------------------------------------------------------------------------------------------------------
50,000 NY Counties Tobacco Trust II (TASC) 5.750 06/01/2043 42,939
- -----------------------------------------------------------------------------------------------------------------------------
5,365,000 NYC IDA (American Airlines) 6.900 08/01/2024 3,349,638
- -----------------------------------------------------------------------------------------------------------------------------
500,000 NYC IDA (British Airways) 5.250 12/01/2032 355,135
- -----------------------------------------------------------------------------------------------------------------------------
295,000 NYC IDA (Northwest Airlines) 6.000 06/01/2027 209,577
- -----------------------------------------------------------------------------------------------------------------------------
5,545,000 NYC IDA (Polytechnic University) 6.000 11/01/2020 5,089,035
- -----------------------------------------------------------------------------------------------------------------------------
10,750,000 NYC IDA (Polytechnic University) 6.125 11/01/2030 9,690,803
- -----------------------------------------------------------------------------------------------------------------------------
4,750,000 NYC IDA (Visy Paper) 7.950 01/01/2028 4,963,940
- -----------------------------------------------------------------------------------------------------------------------------
5,000,000 NYS DA ( MSH/NYU Hospital Center/
HJDOI Obligated Group) 6.625 07/01/2019 5,109,300
- -----------------------------------------------------------------------------------------------------------------------------
1,350,000 Otsego County, NY IDA (Hartwick College) 6.000 07/01/2013 1,331,181
- -----------------------------------------------------------------------------------------------------------------------------
1,435,000 Otsego County, NY IDA (Hartwick College) 6.000 07/01/2014 1,403,000
- -----------------------------------------------------------------------------------------------------------------------------
1,520,000 Otsego County, NY IDA (Hartwick College) 6.000 07/01/2015 1,472,074
- -----------------------------------------------------------------------------------------------------------------------------
1,610,000 Otsego County, NY IDA (Hartwick College) 6.000 07/01/2016 1,543,185
- -----------------------------------------------------------------------------------------------------------------------------
65,000 TSASC, Inc. (TFABs) 6.000 07/15/2020 62,768
- -----------------------------------------------------------------------------------------------------------------------------
1,915,000 TSASC, Inc. (TFABs) 6.250 07/15/2034 1,868,121
- -----------------------------------------------------------------------------------------------------------------------------
20,000 TSASC, Inc. (TFABs) 6.375 07/15/2039 19,724
--------------
36,557,558
- -----------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA--0.0%
600,000 Charlotte, NC Douglas International Airport Special
Facilities (US Airways) 1 7.750 02/01/2028 315,000
- -----------------------------------------------------------------------------------------------------------------------------
420,000 Charlotte, NC Special Facilities
(Charlotte/Douglas International Airport) 1 5.600 07/01/2027 197,400
--------------
512,400
- -----------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA--0.2%
2,645,000 Richland County, ND Hsg. (Birchwood Properties) 6.750 05/01/2029 2,531,477
- -----------------------------------------------------------------------------------------------------------------------------
OHIO--0.9%
2,880,000 Cleveland, OH Airport (Continental Airlines) 5.375 09/15/2027 1,798,733
- -----------------------------------------------------------------------------------------------------------------------------
5,430,000 Cleveland, OH Airport (Continental Airlines) 5.700 12/01/2019 3,929,311
- -----------------------------------------------------------------------------------------------------------------------------
6,020,000 Coshocton County, OH Solid Waste Disposal
(Stone Container Corp.) 7.875 08/01/2013 6,086,702
--------------
11,814,746
- -----------------------------------------------------------------------------------------------------------------------------
OKLAHOMA--3.1%
1,015,000 Ellis County, OK Industrial Authority
(W.B. Johnston Grain of Shattuck) 7.100 08/01/2023 1,024,094
25 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
OKLAHOMA Continued
$ 2,760,000 Ellis County, OK Industrial Authority
(W.B. Johnston Grain of Shattuck) 7.500% 08/01/2023 $ 2,875,258
- -----------------------------------------------------------------------------------------------------------------------------
4,500,000 OK Devel. Finance Authority (Doane Products Company) 6.250 07/15/2023 3,388,815
- -----------------------------------------------------------------------------------------------------------------------------
750,000 OK Devel. Finance Authority (Inverness Village) 8.000 02/01/2032 708,083
- -----------------------------------------------------------------------------------------------------------------------------
1,500,000 Oklahoma City, OK Industrial & Cultural Facilities
(Aero Obligated Group) 6.750 01/01/2023 1,440,600
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 Ottawa, OK Finance Authority (Doane Products Company) 7.250 06/01/2017 2,406,690
- -----------------------------------------------------------------------------------------------------------------------------
11,000,000 Tulsa, OK Municipal Airport Trust (American Airlines) 5.375 12/01/2035 10,381,030
- -----------------------------------------------------------------------------------------------------------------------------
15,850,000 Tulsa, OK Municipal Airport Trust (American Airlines) 5.800 06/01/2035 15,696,572
- -----------------------------------------------------------------------------------------------------------------------------
4,485,000 Tulsa, OK Municipal Airport Trust (American Airlines) 6.250 06/01/2020 3,365,365
--------------
41,286,507
- -----------------------------------------------------------------------------------------------------------------------------
OREGON--0.1%
3,000,000 Port of Portland, OR Special Obligation (Delta Air Lines) 6.200 09/01/2022 1,679,310
- -----------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--4.8%
1,250,000 Allegheny County, PA HDA (The Covenant at South Hills) 8.750 02/01/2031 1,236,038
- -----------------------------------------------------------------------------------------------------------------------------
4,360,000 Allegheny County, PA HDA (West Penn Allegheny Health System) 9.250 11/15/2015 4,892,487
- -----------------------------------------------------------------------------------------------------------------------------
6,000,000 Allegheny County, PA HDA (West Penn Allegheny Health System) 9.250 11/15/2022 6,732,780
- -----------------------------------------------------------------------------------------------------------------------------
31,010,000 Allegheny County, PA HDA (West Penn Allegheny Health System) 9.250 11/15/2030 34,797,251
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 Beaver County, PA IDA
(Cleveland Electric Illuminating Company) 7.750 07/15/2025 3,206,160
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Chester County, PA H&EFA (Jenners Pond) 7.750 07/01/2034 1,005,310
- -----------------------------------------------------------------------------------------------------------------------------
440,000 Horsham, PA Industrial & Commercial Devel. Authority
(GF/Pennsylvania Property) 7.375 09/01/2008 428,952
- -----------------------------------------------------------------------------------------------------------------------------
5,040,000 Horsham, PA Industrial & Commercial Devel. Authority
(GF/Pennsylvania Property) 8.375 09/01/2024 4,694,962
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Lawrence County, PA IDA (Shenango Presbyterian Center) 7.500 11/15/2031 979,950
- -----------------------------------------------------------------------------------------------------------------------------
5,000,000 PA EDFA (National Gypsum Company) 6.250 11/01/2027 5,003,500
--------------
62,977,390
- -----------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND--3.2%
2,000,000 RI Hsg. & Mtg. Finance Corp. RITES 1 15.779 2 10/01/2022 2,112,680
- -----------------------------------------------------------------------------------------------------------------------------
30,605,000 RI Tobacco Settlement Financing Corp. (TASC) 6.250 06/01/2042 25,375,218
- -----------------------------------------------------------------------------------------------------------------------------
17,280,000 RI Tobacco Settlement Financing Corp. (TASC), Series A 6.125 06/01/2032 14,632,358
--------------
42,120,256
- -----------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA--1.3%
1,510,000 Florence County, SC IDR (Stone Container Corp.) 7.375 02/01/2007 1,524,662
- -----------------------------------------------------------------------------------------------------------------------------
6,250,000 SC Connector 2000 Association Toll Road, Series B 0.000 4 01/01/2020 2,328,813
- -----------------------------------------------------------------------------------------------------------------------------
8,500,000 SC Connector 2000 Association Toll Road, Series B 0.000 4 01/01/2024 2,426,835
26 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA Continued
$ 1,870,000 SC Hsg. Finance & Devel. Authority RITES 1 14.527% 2 01/01/2023 $ 1,894,235
- -----------------------------------------------------------------------------------------------------------------------------
5,000 SC Resource Authority Local Government Program 7.250 06/01/2020 5,022
- -----------------------------------------------------------------------------------------------------------------------------
7,985,000 SC Tobacco Settlement Management Authority, Series B 6.375 05/15/2028 6,926,748
- -----------------------------------------------------------------------------------------------------------------------------
1,730,000 SC Tobacco Settlement Management Authority, Series B 6.375 05/15/2030 1,485,586
- -----------------------------------------------------------------------------------------------------------------------------
110,000 York County, SC (Hoechst Celanese Corp.) 5.700 01/01/2024 95,880
- -----------------------------------------------------------------------------------------------------------------------------
30,000 York County, SC Pollution Control (Bowater) 7.400 01/01/2010 30,041
--------------
16,717,822
- -----------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA--1.7%
25,000,000 SD Educational Enhancement Funding Corp.
Tobacco Settlement 3 6.500 06/01/2032 21,741,750
- -----------------------------------------------------------------------------------------------------------------------------
TENNESSEE--0.5%
100,000 Hamilton County, TN IDB (Park at 58) 6.700 03/01/2021 85,596
- -----------------------------------------------------------------------------------------------------------------------------
4,335,000 McMinn County, TN IDB Pollution Control
(Calhoun Newsprint) 7.625 03/01/2016 4,338,858
- -----------------------------------------------------------------------------------------------------------------------------
150,000 McMinn County, TN IDB Solid Waste
(Calhoun Newsprint) 7.400 12/01/2022 150,483
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 Metropolitan Knoxville, TN Airport Authority
(Northwest Airlines) 8.000 04/01/2032 2,748,990
--------------
7,323,927
- -----------------------------------------------------------------------------------------------------------------------------
TEXAS--10.4%
8,155,000 Alliance Airport Authority, TX (American Airlines) 7.500 12/01/2029 5,600,691
- -----------------------------------------------------------------------------------------------------------------------------
590,000 Bexar County, TX HFC (American Opportunity Hsg.) 7.500 01/01/2013 594,879
- -----------------------------------------------------------------------------------------------------------------------------
800,000 Bexar County, TX HFC (American Opportunity Hsg.) 8.000 01/01/2031 789,960
- -----------------------------------------------------------------------------------------------------------------------------
1,195,000 Bexar County, TX HFC (American Opportunity Hsg.) 8.250 12/01/2037 1,117,660
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Bexar County, TX HFC (American Opportunity Hsg.) 9.250 12/01/2037 920,070
- -----------------------------------------------------------------------------------------------------------------------------
225,000 Bexar County, TX HFC (Honey Creek LLC) 8.000 04/01/2030 220,428
- -----------------------------------------------------------------------------------------------------------------------------
1,460,000 Bexar County, TX HFC (Perrin Square) 9.750 11/20/2031 1,436,085
- -----------------------------------------------------------------------------------------------------------------------------
4,400,000 Brazos River Authority, TX (TXU Energy Company) 6.750 10/01/2038 4,578,684
- -----------------------------------------------------------------------------------------------------------------------------
8,000,000 Brazos River Authority, TX (TXU Energy Company) 7.700 04/01/2033 9,273,840
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Dallas, TX Hsg. Corp. (Section 8) 7.850 08/01/2013 1,009,000
- -----------------------------------------------------------------------------------------------------------------------------
7,600,000 Dallas-Fort Worth, TX International Airport
(American Airlines) 6.050 05/01/2029 7,243,788
- -----------------------------------------------------------------------------------------------------------------------------
235,000 Dallas-Fort Worth, TX International Airport
(Delta Air Lines) 7.625 11/01/2021 102,996
- -----------------------------------------------------------------------------------------------------------------------------
6,000,000 Dallas-Fort Worth, TX International Airport RITES 1 15.203 2 11/01/2027 5,571,000
- -----------------------------------------------------------------------------------------------------------------------------
8,125,000 Dallas-Fort Worth, TX International Airport ROLs 1 18.150 2 11/01/2033 8,987,225
- -----------------------------------------------------------------------------------------------------------------------------
5,240,000 El Paso, TX Health Facilities Devel. Corp.
(Bienvivir Senior Health Services) 7.750 08/15/2031 5,249,799
- -----------------------------------------------------------------------------------------------------------------------------
15,000 Galveston, TX Special Contract (Farmers Export Company) 6.750 05/01/2007 15,053
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Grapevine, TX IDC (Air Cargo) 6.500 01/01/2024 1,018,530
- -----------------------------------------------------------------------------------------------------------------------------
4,660,000 Gulf Coast, TX IDA (Citgo Petroleum Corp.) 7.500 05/01/2025 4,896,914
27 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
STATEMENT OF INVESTMENTS Continued
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
TEXAS Continued
$ 2,795,000 Harris County, TX IDC (Continental Airlines) 5.375% 07/01/2019 $ 1,969,944
- -----------------------------------------------------------------------------------------------------------------------------
4,000,000 Houston, TX Airport Special Facilities (Continental Airlines) 5.700 07/15/2029 2,664,600
- -----------------------------------------------------------------------------------------------------------------------------
7,440,000 Houston, TX Airport Special Facilities (Continental Airlines) 6.125 07/15/2017 5,827,231
- -----------------------------------------------------------------------------------------------------------------------------
355,000 Houston, TX Airport Special Facilities (Continental Airlines) 6.125 07/15/2027 253,708
- -----------------------------------------------------------------------------------------------------------------------------
2,450,000 Houston, TX Airport Special Facilities (Continental Airlines) 6.125 07/15/2027 1,707,993
- -----------------------------------------------------------------------------------------------------------------------------
15,750,000 Houston, TX Airport Special Facilities (Continental Airlines) 6.750 07/01/2021 12,629,453
- -----------------------------------------------------------------------------------------------------------------------------
18,045,000 Houston, TX Airport Special Facilities (Continental Airlines) 6.750 07/01/2029 13,948,063
- -----------------------------------------------------------------------------------------------------------------------------
900,000 Houston, TX Airport Special Facilities (Continental Airlines) 7.375 07/01/2022 766,728
- -----------------------------------------------------------------------------------------------------------------------------
1,500,000 Houston, TX HFDC (Buckinham Senior Living Community) 7.000 02/15/2026 1,522,335
- -----------------------------------------------------------------------------------------------------------------------------
5,000,000 Houston, TX HFDC (Buckinham Senior Living Community) 7.125 02/15/2034 5,101,450
- -----------------------------------------------------------------------------------------------------------------------------
2,500,000 Lancaster, TX Independent School District GO RITES 1 18.283 2 02/15/2034 3,302,900
- -----------------------------------------------------------------------------------------------------------------------------
9,000,000 Lewisville, TX GO 6.125 09/01/2029 9,409,230
- -----------------------------------------------------------------------------------------------------------------------------
115,000 Matagorda County, TX Navigation District (Reliant Energy) 5.950 05/01/2030 113,201
- -----------------------------------------------------------------------------------------------------------------------------
1,350,000 Newton County, TX Public Facility Corp. 1 8.000 03/01/2019 1,350,918
- -----------------------------------------------------------------------------------------------------------------------------
4,405,000 Port of Bay City, TX (Hoechst Celanese Corp.) 6.500 05/01/2026 4,193,164
- -----------------------------------------------------------------------------------------------------------------------------
2,500,000 TX GO RITES 1 19.710 2 12/01/2028 2,911,400
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 TX Research Division RITES 1 18.110 2 06/01/2029 3,339,720
- -----------------------------------------------------------------------------------------------------------------------------
2,360,000 TX State Affordable Hsg. Corp. (American Hsg. Foundation) 8.000 03/01/2032 2,362,148
- -----------------------------------------------------------------------------------------------------------------------------
4,000,000 TX Turnpike Authority ROLs 1 16.238 2 08/15/2042 3,588,000
--------------
135,588,788
- -----------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--1.3%
320,000 Guam EDA (Royal Socio Apartments) 9.500 11/01/2018 309,037
- -----------------------------------------------------------------------------------------------------------------------------
9,500,000 Northern Mariana Islands, Series A 6.750 10/01/2033 9,584,645
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 Puerto Rico Children's Trust Fund (TASC) 3 5.375 05/15/2033 1,747,040
- -----------------------------------------------------------------------------------------------------------------------------
4,000,000 Puerto Rico Children's Trust Fund (TASC) 5.500 05/15/2039 3,339,280
- -----------------------------------------------------------------------------------------------------------------------------
1,500,000 Puerto Rico Children's Trust Fund (TASC) 3 5.625 05/15/2043 1,252,125
- -----------------------------------------------------------------------------------------------------------------------------
75,000 Puerto Rico ITEMECF (Mennonite General Hospital) 6.500 07/01/2012 73,143
- -----------------------------------------------------------------------------------------------------------------------------
400,000 Puerto Rico Port Authority (American Airlines), Series A 6.300 06/01/2023 269,116
--------------
16,574,386
- -----------------------------------------------------------------------------------------------------------------------------
UTAH--0.0%
635,000 Carbon, UT Solid Waste Disposal (Allied Waste Industries) 7.500 02/01/2010 650,183
- -----------------------------------------------------------------------------------------------------------------------------
VIRGINIA--2.1%
2,250,000 Bedford County, VA IDA (Georgia-Pacific Corp.) 6.550 12/01/2025 2,286,338
- -----------------------------------------------------------------------------------------------------------------------------
4,865,000 Giles County, VA IDA (Hoechst Celanese Corp.) 6.625 12/01/2022 4,711,655
- -----------------------------------------------------------------------------------------------------------------------------
1,750,000 Halifax County, VA IDA RITES 1 17.610 2 06/01/2028 2,115,610
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 Hopewell, VA IDA (Stone Container Corp.) 8.250 05/01/2010 2,024,280
- -----------------------------------------------------------------------------------------------------------------------------
225,000 Hopewell, VA IDA (Stone Container Corp.) 8.250 06/01/2016 227,878
- -----------------------------------------------------------------------------------------------------------------------------
1,500,000 Pittsylvania County, VA IDA (Multitrade of Pittsylvania) 7.500 01/01/2014 1,546,380
28 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
VIRGINIA Continued
$ 4,000,000 Pittsylvania County, VA IDA (Multitrade of Pittsylvania) 7.550% 01/01/2019 $ 4,123,680
- ---------------------------------------------------------------------------------------------------------------------------
3,900,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 4 08/15/2012 2,144,025
- -----------------------------------------------------------------------------------------------------------------------------
1,125,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 4 08/15/2018 237,161
- -----------------------------------------------------------------------------------------------------------------------------
1,845,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 4 08/15/2019 348,133
- -----------------------------------------------------------------------------------------------------------------------------
3,500,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.000 08/15/2010 3,366,300
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.000 08/15/2011 953,150
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.250 08/15/2008 2,972,220
- -----------------------------------------------------------------------------------------------------------------------------
200,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.500 08/15/2028 168,382
--------------
27,225,192
- -----------------------------------------------------------------------------------------------------------------------------
WASHINGTON--2.6%
3,000,000 Chelan County, WA Public Utility District RITES 1 17.513 2 01/01/2036 3,397,380
- -----------------------------------------------------------------------------------------------------------------------------
3,500,000 Grant County, WA Public Utility District RITES 1 15.316 2 01/01/2022 3,685,080
- -----------------------------------------------------------------------------------------------------------------------------
100,000 Port Camas, WA Public Industrial Corp.
(James River Corp. of VA) 6.700 04/01/2023 100,461
- -----------------------------------------------------------------------------------------------------------------------------
4,025,000 Port Longview, WA IDC (Weyerhauser Company) 7.450 02/01/2013 4,077,325
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Port Seattle, WA Special Facility (Northwest Airlines) 7.125 04/01/2020 866,460
- -----------------------------------------------------------------------------------------------------------------------------
21,100,000 Port Seattle, WA Special Facility (Northwest Airlines) 7.250 04/01/2030 17,899,341
- -----------------------------------------------------------------------------------------------------------------------------
4,835,000 WA Tobacco Settlement Authority (TASC) 6.500 06/01/2026 4,547,946
--------------
34,573,993
- -----------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA--0.1%
1,000,000 Kanawha County, WV Industrial Devel.
(Union Carbide Chemical & Plastics Company) 8.000 08/01/2020 1,001,230
- -----------------------------------------------------------------------------------------------------------------------------
WISCONSIN--1.5%
3,685,000 Badger, WI Tobacco Asset Securitization Corp. 6.125 06/01/2027 3,404,240
- -----------------------------------------------------------------------------------------------------------------------------
14,020,000 Badger, WI Tobacco Asset Securitization Corp. 6.375 06/01/2032 11,991,867
- -----------------------------------------------------------------------------------------------------------------------------
1,455,000 Milwaukee, WI (Air Cargo) 7.500 01/01/2025 1,442,108
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 WI H&EFA RITES 1 16.282 2 02/15/2032 2,098,080
- -----------------------------------------------------------------------------------------------------------------------------
250,000 WI Lac Courte Oreilles Band of
Lake Superior Chippewa Indians 8.000 12/01/2018 248,130
--------------
19,184,425
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,361,521,624)--104.5% 1,364,976,659
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(4.5) (59,292,847
--------------
NET ASSETS--100.0% $1,305,683,812
==============
29 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Illiquid security. See Note 5 of Notes to Financial Statements.
2. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.
3. When-issued security to be delivered and settled after July 31, 2004.
See Note 1 of Notes to Financial Statements.
4. Represents a zero coupon bond.
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
ADA Atlanta Development Authority
CAU Clark Atlanta University
CCRC Continuing Care Retirement Community
CDA Communities Development Authority
CDD Community Development District
COP Certificates of Participation
DA Dormitory Authority
DFA Development Finance Authority
DRIVERS Derivative Inverse Tax Exempt Receipts
EDA Economic Development Authority
EDFA Economic Development Finance Authority
EFA Educational Facilities Authority
EF&CD Environmental Facilities & Community Development
GO General Obligation
H&EFA Health and Educational Facilities Authority
HDA Hospital Development Authority
HDC Housing Development Corp.
HE&H Higher Educational and Health
HFA Housing Finance Agency/Authority
HFC Housing Finance Corp.
HFDC Health Facilities Development Corp.
HJDOI Hospital for Joint Diseases Orthopedic Institute
HOC Housing Opportunities Commission
IDA Industrial Development Agency
IDB Industrial Development Board
IDC Industrial Development Corporation
IDR Industrial Development Revenue
IRS Inverse Rate Security
ITEMECF Industrial, Tourist, Educational, Medical and
Environmental Community Facilities
MSH/NYU Mount Sinai Hospital/New York University
NYC New York City
NYS New York State
Res Rec Resource Recovery Facility
RITES Residual Interest Tax Exempt Security
ROLs Residual Option Longs
TASC Tobacco Settlement Asset-Backed Bonds
TFABs Tobacco Flexible Amortization Bonds
30 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
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 VALUE PERCENT
- ---------------------------------------------------------------------
Tobacco Settlements $ 340,485,515 24.9%
Airlines 230,324,880 16.9
Hospital/Health Care 91,895,891 6.7
Electric Utilities 85,348,088 6.3
Paper, Containers & Packaging 74,720,293 5.5
Hotels, Restaurants & Leisure 73,484,423 5.4
Adult Living Facilities 67,053,782 4.9
Marine/Aviation Facilities 52,528,758 3.8
Multifamily Housing 50,811,319 3.7
Special Assessment 43,977,268 3.2
Higher Education 36,510,619 2.7
Gas Utilities 32,494,774 2.4
General Obligation 26,389,568 1.9
Resource Recovery 23,830,722 1.8
Manufacturing, Non-Durable Goods 23,769,729 1.7
Special Tax 21,703,482 1.6
Highways/Railways 18,533,019 1.4
Sports Facility Revenue 18,310,687 1.3
Single Family Housing 13,609,456 1.0
Manufacturing, Durable Goods 12,180,060 0.9
Education 11,506,643 0.9
Pollution Control 9,325,276 0.7
Municipal Leases 2,724,493 0.2
Not-for-Profit Organization 1,932,262 0.1
Sales Tax Revenue 1,445,622 0.1
Sewer Utilities 80,030 --
------------------------------
Total $ 1,364,976,659 100.0%
==============================
31 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 6.1%
AA 2.0
A 3.5
BBB 33.5
BB 8.2
B 13.1
CCC 5.6
Not Rated 28.0
------
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.
32 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES July 31, 2004
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,361,521,624)--see accompanying statement of investments $ 1,364,976,659
- ---------------------------------------------------------------------------------------------------------------
Cash 11,415,408
- ---------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 26,507,114
Shares of beneficial interest sold 18,706,251
Investments sold 3,407,094
Other 14,733
-----------------
Total assets 1,425,027,259
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Notes payable to bank (interest rate 2.1200% at July 31, 2004) 75,400,000
Investments purchased (including $22,218,136 purchased on a when-issued basis
or forward commitment) 39,554,439
Shares of beneficial interest redeemed 2,811,377
Dividends 1,124,068
Distribution and service plan fees 158,521
Shareholder communications 62,904
Transfer and shareholder servicing agent fees 56,766
Trustees' compensation 37,220
Other 138,152
-----------------
Total liabilities 119,343,447
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,305,683,812
=================
- ---------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $ 1,320,321,595
- ---------------------------------------------------------------------------------------------------------------
Accumulated net investment income 2,007,947
- ---------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (20,100,765)
- ---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 3,455,035
-----------------
NET ASSETS $ 1,305,683,812
=================
33 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$731,565,474 and 65,741,469 shares of beneficial interest outstanding) $11.13
Maximum offering price per share (net asset value plus sales charge of 4.75%
of offering price) $11.69
- ---------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $308,778,236
and 27,688,371 shares of beneficial interest outstanding) $11.15
- ---------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $265,340,102
and 23,878,074 shares of beneficial interest outstanding) $11.11
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended July 31, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 79,772,630
- --------------------------------------------------------------------------------
EXPENSES
Management fees 4,646,275
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 752,080
Class B 2,306,800
Class C 1,742,136
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 236,729
Class B 159,703
Class C 118,067
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 45,201
Class B 22,683
Class C 16,696
- --------------------------------------------------------------------------------
Interest expense 760,259
- --------------------------------------------------------------------------------
Custodian fees and expenses 62,691
- --------------------------------------------------------------------------------
Trustees' compensation 39,918
- --------------------------------------------------------------------------------
Other 147,867
--------------
Total expenses 11,057,105
Less reduction to custodian expenses (3,514)
Less payments and waivers of expenses (423)
--------------
Net expenses 11,053,168
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 68,719,462
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
Net realized gain on investments 8,187,916
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 191,836
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $77,099,214
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED JULY 31, 2004 2003
- -------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 68,719,462 $ 38,761,209
- -------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 8,187,916 (26,526,188)
- -------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 191,836 838,016
-------------------------------
Net increase in net assets resulting from operations 77,099,214 13,073,037
- -------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (37,786,294) (20,618,983)
Class B (17,197,773) (10,471,076)
Class C (12,989,258) (6,339,849)
- -------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial interest transactions:
Class A 421,943,144 126,779,250
Class B 114,357,949 104,651,625
Class C 153,043,901 66,891,717
- -------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase 698,470,883 273,965,721
- -------------------------------------------------------------------------------------------------------------
Beginning of period 607,212,929 333,247,208
-------------------------------
End of period (including accumulated net investment income of
$2,007,947 and $1,261,810, respectively) $1,305,683,812 $607,212,929
===============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
FINANCIAL HIGHLIGHTS
CLASS A YEAR ENDED JULY 31, 2004 2003 2002 2001 2000
- ---------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $10.64 $11.28 $11.25 $10.76 $11.24
- ---------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .85 .92 .71 .58 .58
Net realized and unrealized gain (loss) .50 (.67) .03 .48 (.45)
------------------------------------------------
Total from investment operations 1.35 .25 .74 1.06 .13
- ---------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.86) (.89) (.71) (.57) (.57)
Distributions from net realized gain -- -- -- -- (.04)
------------------------------------------------
Total dividends and/or distributions
to shareholders (.86) (.89) (.71) (.57) (.61)
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $11.13 $10.64 $11.28 $11.25 $10.76
================================================
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 12.78% 2.36% 6.89% 10.03% 1.28%
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $731,565 $306,857 $193,452 $38,827 $34,050
- ---------------------------------------------------------------------------------------------------
Average net assets (in thousands) $506,440 $252,496 $ 73,877 $36,900 $34,296
- ---------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 7.54% 8.44% 6.61% 5.21% 5.41%
Total expenses 0.80% 1.04% 1.06% 0.87% 1.13%
Expenses after payments and waivers and
reduction to custodian expenses N/A 3,4 N/A 3 0.89% 5 0.78% 5 0.96% 5
- ---------------------------------------------------------------------------------------------------
Portfolio turnover rate 44% 57% 127% 37% 12%
<FN>
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distribution or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
5. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
FINANCIAL HIGHLIGHTS Continued
CLASS B YEAR ENDED JULY 31, 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $10.66 $11.30 $11.27 $10.78 $11.26
- ------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .77 .83 .63 .49 .50
Net realized and unrealized gain (loss) .49 (.66) .02 .48 (.45)
---------------------------------------------------
Total from investment operations 1.26 .17 .65 .97 .05
- ------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.77) (.81) (.62) (.48) (.49)
Distributions from net realized gain -- -- -- -- (.04)
---------------------------------------------------
Total dividends and/or distributions
to shareholders (.77) (.81) (.62) (.48) (.53)
- ------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.15 $10.66 $11.30 $11.27 $10.78
===================================================
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 11.89% 1.57% 6.07% 9.19% 0.51%
- ------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $308,778 $188,645 $90,547 $20,279 $17,866
- ------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $256,425 $141,819 $36,100 $18,445 $19,249
- ------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 6.80% 7.67% 5.85% 4.45% 4.64%
Total expenses 1.56% 1.81% 1.80% 1.62% 1.89%
Expenses after payments and waivers
and reduction to custodian expenses N/A 3,4 N/A 3 1.63% 5 1.53% 5 1.72% 5
- ------------------------------------------------------------------------------------------------------
Portfolio turnover rate 44% 57% 127% 37% 12%
<FN>
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distribution or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
5. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
CLASS C YEAR ENDED JULY 31 2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $10.63 $11.27 $11.24 $10.75 $11.23
- ----------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .76 .83 .61 .50 .50
Net realized and unrealized gain (loss) .49 (.66) .04 .48 (.45)
-------------------------------------------------
Total from investment operations 1.25 .17 .65 .98 .05
- ----------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.77) (.81) (.62) (.49) (.49)
Distributions from net realized gain -- -- -- -- (.04)
-------------------------------------------------
Total dividends and/or distributions
to shareholders (.77) (.81) (.62) (.49) (.53)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.11 $10.63 $11.27 $11.24 $10.75
=================================================
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 11.83% 1.59% 6.09% 9.22% 0.51%
- ----------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $265,340 $111,710 $49,248 $3,410 $2,442
- ----------------------------------------------------------------------------------------------------
Average net assets (in thousands) $193,845 $ 85,483 $13,453 $2,552 $2,790
- ----------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 6.76% 7.68% 5.88% 4.45% 4.65%
Total expenses 1.56% 1.80% 1.80% 1.62% 1.89%
Expenses after payments and waivers
and reduction to custodian expenses N/A 3,4 N/A 3 1.63% 5 1.53% 5 1.72% 5
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate 44% 57% 127% 37% 12%
<FN>
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distribution or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
5. Excludes interest expense.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
39 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Rochester National Municipals (the Fund) is a separate series of
Oppenheimer Multi-State Municipal Trust, an open-end management investment
company registered under the Investment Company Act of 1940, as amended. The
Fund's investment objective is to seek a high level of current income exempt
from federal income taxes for individual investors by investing in a
diversified portfolio of high-yield municipal securities. The Fund's investment
advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ 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).
40 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
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. 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 $22,218,136
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 35% of its total assets in inverse
floaters. Inverse floaters amount to $117,441,380 as of July 31, 2004.
Including the effect of leverage, inverse floaters represent 23.30% of the
Fund's total assets as of July 31, 2004.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
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.
41 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1 TAX PURPOSES
------------------------------------------------------------------------
$3,166,956 $-- $20,100,765 $3,455,035
1. As of July 31, 2004, the Fund had $20,100,765 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 $ 1,051,023
2010 711,471
2011 21,126
2012 18,317,145
-----------
Total $20,100,765
===========
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 $67,973,325 $37,429,908
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.
Federal tax cost of securities $1,361,521,624
==============
Gross unrealized appreciation $ 45,960,994
Gross unrealized depreciation (42,505,959)
--------------
Net unrealized appreciation $ 3,455,035
==============
42 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
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
$13,104 and payments of $2,780 were made to retired trustees, resulting in an
accumulated liability of $25,179 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.
43 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
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 45,587,726 $519,590,084 18,625,393 $199,835,999
Dividends and/or
distributions reinvested 1,579,654 17,826,296 894,340 9,452,007
Redeemed (10,258,031) (115,473,236) (7,839,075) (82,508,756)
---------------------------------------------------------
Net increase 36,909,349 $421,943,144 11,680,658 $126,779,250
=========================================================
- ------------------------------------------------------------------------------------
CLASS B
Sold 12,764,933 $145,432,112 12,221,314 $131,305,363
Dividends and/or
distributions reinvested 620,409 7,015,793 428,130 4,524,872
Redeemed (3,387,398) (38,089,956) (2,972,503) (31,178,610)
---------------------------------------------------------
Net increase 9,997,944 $114,357,949 9,676,941 $104,651,625
=========================================================
- ------------------------------------------------------------------------------------
CLASS C
Sold 17,536,942 $199,701,778 8,862,569 $ 95,133,016
Dividends and/or
distributions reinvested 568,003 6,410,221 324,517 3,420,609
Redeemed (4,736,781) (53,068,098) (3,048,602) (31,661,908)
---------------------------------------------------------
Net increase 13,368,164 $153,043,901 6,138,484 $ 66,891,717
=========================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended July 31, 2004, were
$916,709,801 and $344,188,115, respectively.
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.60% of the first $200 million of average annual net assets,
0.55% of the next $100 million, 0.50% of the next $200 million, 0.45% of the
next $250 million, 0.40% of the next $250 million, and 0.35% of average annual
net assets in excess of $1 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the year ended July 31, 2004, the Fund
paid $487,484 to OFS for services to the Fund.
44 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
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 $11,904,117 and
$3,611,786, 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 $1,470,397 $60,920 $641,845 $108,492
45 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
PAYMENTS AND WAIVERS OF EXPENSES. 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 $279,
$120 and $24 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
$127,218,333, which represents 9.74% 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 $75,400,000 at July 31, 2004 at an
interest rate of 2.12%. For the year ended July 31, 2004, the average monthly
loan balance was $41,061,336 at an average daily interest rate of 1.777%. The
Fund had gross borrowings and gross loan repayments of $555,200,000 and
$519,000,000, respectively, during the year ended July 31, 2004. The maximum
amount of borrowings outstanding at any month-end was $82,800,000. The Fund
paid commitment fees of $7,803 and interest of $745,482 during the year ended
July 31, 2004.
- --------------------------------------------------------------------------------
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
46 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
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.
47 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
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 Rochester National Municipals, (one of the portfolios constituting
the Oppenheimer Multi-State Municipal Trust) including the statement of
investments, as of July 31, 2004, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of
the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with 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 Rochester National Municipals as of July 31, 2004, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended, in conformity with 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
48 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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.
49 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
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TRUSTEES AND OFFICERS Unaudited
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NAME, POSITION(S) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER
HELD WITH FUND, TRUSTEESHIPS/DIRECTORSHIPS HELD BY TRUSTEE; NUMBER
LENGTH OF SERVICE, OF PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN
AGE BY TRUSTEE
INDEPENDENT TRUSTEES THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS
6803 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
Chairman of the Board law firm); a director (since 2002) of Danielson
of Trustees (since 2003); Holding Corp. Formerly a director of Weyerhaeuser
Trustee (since 1993) Corp. (1999-April 2004), Caterpillar, Inc.
Age: 73 (1993-December 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
Trustee (since 1999) Advanced Study, Princeton, N.J., a director (since
Age: 65 2001) of GSI Lumonics, a trustee (since 1983) of
Woodward Academy, a Senior Advisor (since 2001) of
The Andrew W. Mellon Foundation. A member of: the
National Academy of Sciences (since 1979),
American Academy of Arts and Sciences (since
1995), American Philosophical Society (since 1996)
and Council on Foreign Relations (since 2002).
Formerly a director of Bankers Trust New York
Corporation (1994-1999). Oversees 25 portfolios in
the OppenheimerFunds complex.
JOEL W. MOTLEY, Director (since January 2002) Columbia Equity
Trustee (since 2002) Financial Corp. (privately-held financial
Age: 52 adviser); 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
Age: 77 company); 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
Trustee (since 1993) RBAsset (real estate manager); a director of
Age: 74 OffitBank; formerly Trustee, Financial Accounting
Foundation (FASB and GASB), Senior Fellow of
Jerome Levy Economics Institute, Bard College,
Chairman of Municipal Assistance Corporation for
the City of New York, New York State Comptroller
and Trustee of New York State and Local Retirement
Fund. 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.
50 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
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TRUSTEES AND OFFICERS Unaudited / Continued
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DONALD W. SPIRO, Chairman Emeritus (since January 1991) of the
Vice Chairman of the Manager. Formerly a director (January 1969-August
Board of Trustees, 1999) of the Manager. Oversees 25 portfolios in
Trustee (since 1989) the OppenheimerFunds complex.
Age: 78
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INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS
AND OFFICER TWO 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
President and Trustee (since June 2001) and President (since September
(since 2001) 2000) of the Manager; President and a director or
Age: 55 trustee of other Oppenheimer funds; President and
a director (since July 2001) of Oppenheimer
Acquisition Corp. (the Manager's parent holding
company) and of Oppenheimer Partnership Holdings,
Inc. (a holding company subsidiary of the
Manager); a director (since November 2001) of
OppenheimerFunds Distributor, Inc. (a subsidiary
of the Manager); Chairman and a director (since
July 2001) of Shareholder Services, Inc. and of
Shareholder Financial Services, Inc. (transfer
agent subsidiaries of the Manager); President and
a director (since July 2001) of OppenheimerFunds
Legacy Program (a charitable trust program
established by the Manager); a director of the
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.
51 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March
Treasurer (since 1999) 1999) of the Manager; Treasurer of HarbourView
Age: 44 Asset 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
Age: 56 Manager; 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 (since March 2004) of the Manager; Vice President
Chief 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.'
52 | OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the 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 $113
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 $5,113 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)