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 811-4054
Oppenheimer AMT-Free New York Municipals
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: September 30
Date of reporting period: October 1, 2003 - September 30, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN INDUSTRIES
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Tobacco Settlements 26.1%
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Higher Education 14.8
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Not-for-Profit Organizations 12.1
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Highways/Railways 9.0
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Hospital/Health Care 7.4
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Electric Utilities 5.4
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Adult Living Facilities 5.3
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Education 4.6
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General Obligation 4.1
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Water Utilities 2.1
Portfolio holdings and allocations are subject to change. Percentages are as of
September 30, 2004, and are based on total investments.
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CREDIT ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
AAA 12.5%
AA 14.6
A 8.5
BBB 39.8
BB 8.8
B 1.6
CCC 1.5
Not Rated 12.7
Portfolio holdings and allocations are subject to change. Percentages are as of
September 30, 2004, and are based on total investments. Securities rated by any
rating organization are included in the equivalent Standard & Poor's rating
category. The allocation includes rated securities and those not rated by a
national rating organization but to which the ratings above have been assigned
by the Manager for internal purposes as being comparable, in the Manager's
judgment, to securities rated by a rating agency in the same category.
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8 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
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 SEPTEMBER 30, 2004, FOLLOWED
BY A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE
BROAD-BASED MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. During the twelve months ended
September 30, 2004, Oppenheimer AMT-Free New York Municipals delivered very
competitive yields to investors and above-market total returns. We believe this
was a significant accomplishment, given that non-AMT bonds generally provide
lower yields than AMT-generating bonds of comparable quality and maturity.
As always, we used our extensive credit research capabilities to identify
sectors and select securities whose yields, in our estimation, more than
compensate for their true levels of risk. This was the key to the Fund's strong
results.
A prime example of our approach is tobacco litigation-related master
settlement bonds, which comprised 26% of assets at September 30, 2004. Master
settlement agreement (MSA) bonds are backed by each state's (or U.S.
territory's) share of the national settlement agreement with major tobacco
manufacturers. They provide higher income than other similarly rated (BBB)
bonds. MSA-backed bonds were volatile in the past year, largely because the
tobacco industry was continually involved in litigation, and the related court
rulings frequently triggered price fluctuations for the sector. Nonetheless, the
tobacco companies continue to meet their obligations without interruption. As
investors realized that these bonds are less risky than previously thought, and
as the supply of MSA-backed bonds dwindled (no new bonds were issued and
existing bonds were called or matured), prices rose, making the sector the
single largest contributor to the Fund's results for the year.
We identify higher education bonds as yet another sector that compensates
investors for their true levels of risk. Missed payments and defaults in this
sector are rare, even among lower-rated and higher-yielding issuers. This, plus
the fact that bonds may be secured by mortgages on campus properties, make them
attractive choices, in our estimation, and we have invested 14.8% of assets (as
of September 30, 2004) in this sector. While this sector was, overall, a
positive contributor to results, one bond issued by Touro College (2.5% of
assets) delivered particularly strong results. This bond's credit rating was
upgraded in July, based on the college's improved enrollment figures and three
consecutive years of operating surpluses. On both a total return and yield
basis, the bond was a major contributor to performance.
Many issues not subject to the alternative minimum tax come from nonprofit
organizations, which accounts for our sizable position (12.1% of assets as of
September 30, 2004) in this sector. As a whole, our investments in non-profit
organizations made positive
9 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND PERFORMANCE DISCUSSION
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contributions to performance. However one bond representing a minor (0.99%)
position in the Fund, from the New York Legal Aid Society, detracted from the
Fund's total return. The bond is secured by a subordinated position in a first
mortgage on an office building. Although the Society has made all scheduled
payments to date, the bond was downgraded to a "distressed" rating during the
period and its current price reflects this uncertainty. We are working closely
with the Society to find a solution that will help protect the Fund's interest
in this bond and look forward to reporting our progress in our next discussion.
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 September 30, 2004. In the case of Class A and Class B shares,
performance is measured over a ten-fiscal-year period. In the case of Class C
shares, performance is measured from inception of the Class on August 29, 1995.
The Fund's performance reflects the deduction of the maximum initial sales
charge on Class A shares, the applicable contingent deferred sales charge on
Class B and Class C shares, and reinvestments of all dividends and capital gains
distributions.
The Fund's performance is compared to the performance of the Lehman
Brothers Municipal Bond Index, an unmanaged index of a broad range of investment
grade municipal bonds that is widely regarded as a measure of the performance of
the general municipal bond market. Index performance reflects the reinvestment
of dividends but does not consider the effect of capital gains or transaction
costs, and none of the data in the graphs that follow shows the effect of taxes.
The Fund's performance reflects the effects of Fund business and operating
expenses. While index comparisons may be useful to provide a benchmark for the
Fund's performance, it must be noted that the Fund's investments are not limited
to the securities in the index.
10 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free New York Municipals (Class A)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer AMT-Free
New York Municipals Lehman Brothers
Date (Class A) Municipal Bond Index
09/30/1994 9,525 10,000
12/31/1994 9,308 9,857
03/31/1995 10,043 10,554
06/30/1995 10,255 10,808
09/30/1995 10,437 11,118
12/31/1995 10,948 11,577
03/31/1996 10,818 11,438
06/30/1996 10,864 11,526
09/30/1996 11,131 11,790
12/31/1996 11,400 12,090
03/31/1997 11,375 12,061
06/30/1997 11,801 12,477
09/30/1997 12,109 12,853
12/31/1997 12,445 13,202
03/31/1998 12,584 13,354
06/30/1998 12,754 13,557
09/30/1998 13,122 13,973
12/31/1998 13,170 14,057
03/31/1999 13,296 14,181
06/30/1999 13,049 13,931
09/30/1999 12,812 13,876
12/31/1999 12,582 13,768
03/31/2000 12,952 14,170
06/30/2000 13,063 14,384
09/30/2000 13,424 14,732
12/31/2000 14,011 15,377
03/31/2001 14,339 15,718
06/30/2001 14,468 15,820
09/30/2001 14,735 16,264
12/31/2001 14,635 16,165
03/31/2002 14,687 16,317
06/30/2002 15,064 16,914
09/30/2002 15,635 17,717
12/31/2002 15,577 17,717
03/31/2003 15,484 17,930
06/30/2003 15,903 18,393
09/30/2003 15,959 18,407
12/31/2003 16,661 18,659
03/31/2004 17,023 18,982
06/30/2004 16,309 18,532
09/30/2004 17,062 19,254
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND
AT 9/30/04
1-Year 1.83% 5-Year 4.87% 10-Year 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. SEE PAGE
14 FOR FURTHER INFORMATION.
11 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND PERFORMANCE DISCUSSION
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CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free New York Municipals (Class B)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer AMT-Free
New York Municipals Lehman Brothers
Date (Class B) Municipal Bond Index
09/30/1994 10,000 10,000
12/31/1994 9,754 9,857
03/31/1995 10,495 10,554
06/30/1995 10,706 10,808
09/30/1995 10,875 11,118
12/31/1995 11,377 11,577
03/31/1996 11,221 11,438
06/30/1996 11,247 11,526
09/30/1996 11,502 11,790
12/31/1996 11,758 12,090
03/31/1997 11,710 12,061
06/30/1997 12,126 12,477
09/30/1997 12,419 12,853
12/31/1997 12,740 13,202
03/31/1998 12,867 13,354
06/30/1998 13,017 13,557
09/30/1998 13,366 13,973
12/31/1998 13,389 14,057
03/31/1999 13,482 14,181
06/30/1999 13,206 13,931
09/30/1999 12,951 13,876
12/31/1999 12,684 13,768
03/31/2000 13,031 14,170
06/30/2000 13,117 14,384
09/30/2000 13,462 14,732
12/31/2000 14,051 15,377
03/31/2001 14,380 15,718
06/30/2001 14,510 15,820
09/30/2001 14,777 16,264
12/31/2001 14,677 16,165
03/31/2002 14,728 16,317
06/30/2002 15,106 16,914
09/30/2002 15,679 17,717
12/31/2002 15,622 17,717
03/31/2003 15,528 17,930
06/30/2003 15,948 18,393
09/30/2003 16,005 18,407
12/31/2003 16,708 18,659
03/31/2004 17,071 18,982
06/30/2004 16,355 18,532
09/30/2004 17,112 19,254
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND
AT 9/30/04
1-Year 0.99% 5-Year 4.74% 10-Year 5.52%
12 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free New York Municipals (Class C)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer AMT-Free
New York Municipals Lehman Brothers
Date (Class C) Municipal Bond Index
08/29/1995 10,000 10,000
09/30/1995 10,110 10,063
12/31/1995 10,576 10,479
03/31/1996 10,424 10,353
06/30/1996 10,445 10,432
09/30/1996 10,680 10,671
12/31/1996 10,916 10,943
03/31/1997 10,871 10,917
06/30/1997 11,257 11,293
09/30/1997 11,529 11,633
12/31/1997 11,827 11,949
03/31/1998 11,936 12,086
06/30/1998 12,084 12,270
09/30/1998 12,399 12,647
12/31/1998 12,420 12,723
03/31/1999 12,506 12,836
06/30/1999 12,259 12,609
09/30/1999 12,013 12,559
12/31/1999 11,775 12,461
03/31/2000 12,097 12,825
06/30/2000 12,178 13,019
09/30/2000 12,490 13,334
12/31/2000 13,013 13,917
03/31/2001 13,291 14,226
06/30/2001 13,396 14,319
09/30/2001 13,618 14,721
12/31/2001 13,488 14,631
03/31/2002 13,510 14,769
06/30/2002 13,830 15,309
09/30/2002 14,328 16,036
12/31/2002 14,246 16,036
03/31/2003 14,133 16,229
06/30/2003 14,498 16,647
09/30/2003 14,521 16,660
12/31/2003 15,118 16,888
03/31/2004 15,416 17,180
06/30/2004 14,741 16,773
09/30/2004 15,391 17,427
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND
AT 9/30/04
1-Year 4.99% 5-Year 5.08% Since Inception (8/29/95) 4.86%
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
RETURNS FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER
CONVERSION. SEE PAGE 14 FOR FURTHER INFORMATION.
13 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
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 were first publicly offered on 8/16/84. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 4.75%,
except where noted.
CLASS B shares of the Fund were first publicly offered on 3/1/93. Unless
otherwise noted, Class B returns include 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. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
14 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
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 September 30, 2004.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), or a $12.00 fee imposed annually
on accounts valued at less than $500.00 (subject to exceptions described in
15 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND EXPENSES
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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.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6-MONTHS ENDED
(4/1/04) (9/30/04) SEPTEMBER 30, 2004
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Class A Actual $1,000.00 $1,002.30 $4.57
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Class A Hypothetical 1,000.00 1,020.45 4.61
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Class B Actual 1,000.00 998.40 8.48
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Class B Hypothetical 1,000.00 1,016.55 8.56
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Class C Actual 1,000.00 998.40 8.48
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Class C Hypothetical 1,000.00 1,016.55 8.56
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 183/366
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended September 30, 2004 are as follows:
CLASS EXPENSE RATIOS
- ---------------------------
Class A 0.91%
- ---------------------------
Class B 1.69
- ---------------------------
Class C 1.69
The expense ratios reflect voluntary reimbursements of expenses by the Fund's
Manager and Transfer Agent that can be terminated at any time, without advance
notice. The "Financial Highlights" tables in the Fund's financial statements,
included in this report, also show the gross expense ratios, without such
reimbursements.
16 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS September 30, 2004
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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MUNICIPAL BONDS AND NOTES--102.4%
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NEW YORK--93.3%
$ 14,500,000 Albany IDA (Charitable Leadership) 5.750% 07/01/2026 $ 14,864,095
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Albany IDA (Charitable Leadership) 6.000 07/01/2019 1,077,360
- --------------------------------------------------------------------------------------------------------------------------
1,140,000 Albany IDA (Sage Colleges) 5.250 04/01/2019 1,172,536
- --------------------------------------------------------------------------------------------------------------------------
500,000 Albany IDA (Sage Colleges) 5.300 04/01/2029 502,045
- --------------------------------------------------------------------------------------------------------------------------
30,000 Albany Parking Authority 5.625 07/15/2025 31,681
- --------------------------------------------------------------------------------------------------------------------------
30,000 Allegany County IDA (Houghton College) 5.250 01/15/2024 30,629
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Amherst IDA (Daemen College) 6.000 10/01/2021 1,057,300
- --------------------------------------------------------------------------------------------------------------------------
5,895,000 Brookhaven IDA (Alternatives for Children) 7.550 02/01/2033 6,103,211
- --------------------------------------------------------------------------------------------------------------------------
9,235,000 Brookhaven IDA (Dowling College) 6.750 11/01/2032 9,182,453
- --------------------------------------------------------------------------------------------------------------------------
350,000 Broome County IDA (University Plaza) 5.200 08/01/2030 353,465
- --------------------------------------------------------------------------------------------------------------------------
250,000 Broome County IDA (University Plaza) 5.200 08/01/2036 251,783
- --------------------------------------------------------------------------------------------------------------------------
750,000 Buffalo Municipal Water Finance Authority, Series B 5.000 07/01/2027 769,080
- --------------------------------------------------------------------------------------------------------------------------
30,000 East Rochester Hsg. Authority (St. John's Meadows) 5.750 08/01/2037 32,744
- --------------------------------------------------------------------------------------------------------------------------
1,095,000 Erie County IDA (DePaul Properties) 5.750 09/01/2028 843,906
- --------------------------------------------------------------------------------------------------------------------------
200,000 Erie County IDA (DePaul Properties) 6.500 09/01/2018 185,570
- --------------------------------------------------------------------------------------------------------------------------
5,600,000 Erie County IDA (Medaille College) 7.625 04/01/2035 5,670,224
- --------------------------------------------------------------------------------------------------------------------------
9,050,000 Erie County IDA (The Episcopal Church Home) 5.875 02/01/2018 9,265,209
- --------------------------------------------------------------------------------------------------------------------------
9,875,000 Erie County IDA (The Episcopal Church Home) 6.000 02/01/2028 10,015,126
- --------------------------------------------------------------------------------------------------------------------------
150,000 Erie County Tobacco Asset Securitization Corp. 6.125 07/15/2030 144,899
- --------------------------------------------------------------------------------------------------------------------------
6,100,000 Erie County Tobacco Asset Securitization Corp. 6.250 07/15/2040 5,908,948
- --------------------------------------------------------------------------------------------------------------------------
5,500,000 Erie County Tobacco Asset Securitization Corp. 6.500 07/15/2032 5,530,745
- --------------------------------------------------------------------------------------------------------------------------
3,750,000 Geneva IDA (Hobart & William Smith Colleges) 5.375 02/01/2033 3,937,163
- --------------------------------------------------------------------------------------------------------------------------
5,500,000 Hempstead IDA
(Working Organization for Retarded Children) 6.900 08/01/2033 5,526,345
- --------------------------------------------------------------------------------------------------------------------------
1,790,000 Herkimer County IDA
(Herkimer County College Foundation) 6.250 08/01/2034 1,869,172
- --------------------------------------------------------------------------------------------------------------------------
5,750,000 L.I. Power Authority RITES 1 14.177 2 09/01/2033 6,188,380
- --------------------------------------------------------------------------------------------------------------------------
4,395,000 L.I. Power Authority, Series A 5.125 09/01/2029 4,487,163
- --------------------------------------------------------------------------------------------------------------------------
30,000 L.I. Power Authority, Series A 5.250 12/01/2026 30,749
- --------------------------------------------------------------------------------------------------------------------------
25,000 L.I. Power Authority, Series A 5.300 12/01/2019 27,385
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Lyons Community Health Initiatives Corp. 5.550 09/01/2024 1,032,730
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Monroe County IDA (Cloverwood Senior Living) 6.875 05/01/2033 920,380
- --------------------------------------------------------------------------------------------------------------------------
1,965,000 Monroe County IDA (DePaul Community Facilities) 5.875 02/01/2028 1,623,208
- --------------------------------------------------------------------------------------------------------------------------
40,000 Monroe County IDA (Rochester Institute of Technology) 5.250 04/01/2019 40,033
- --------------------------------------------------------------------------------------------------------------------------
525,000 Monroe County IDA (Rochester Institute of Technology) 5.375 04/01/2029 513,807
- --------------------------------------------------------------------------------------------------------------------------
460,000 Monroe County Tobacco Asset Securitization Corp. 6.375 06/01/2035 458,717
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 Monroe Newpower Corp. 5.500 01/01/2034 4,116,520
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Monroe Newpower Corp. 5.625 01/01/2026 1,043,050
- --------------------------------------------------------------------------------------------------------------------------
18,000,000 MTA Service Contract, Series A 5.125 01/01/2029 18,414,540
17 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 640,000 Nassau County IDA (ALIA-ACDS) 6.125% 09/01/2018 $ 649,965
- --------------------------------------------------------------------------------------------------------------------------
2,135,000 Nassau County IDA (ALIA-AP) 7.000 09/01/2028 2,164,847
- --------------------------------------------------------------------------------------------------------------------------
895,000 Nassau County IDA (ALIA-CMA) 6.125 09/01/2018 908,935
- --------------------------------------------------------------------------------------------------------------------------
990,000 Nassau County IDA (ALIA-CSMR) 6.125 09/01/2018 1,005,414
- --------------------------------------------------------------------------------------------------------------------------
670,000 Nassau County IDA (ALIA-EFLI) 6.125 09/01/2018 680,432
- --------------------------------------------------------------------------------------------------------------------------
510,000 Nassau County IDA (ALIA-HAII) 6.125 09/01/2018 517,941
- --------------------------------------------------------------------------------------------------------------------------
595,000 Nassau County IDA (ALIA-NCMRS) 6.125 09/01/2018 604,264
- --------------------------------------------------------------------------------------------------------------------------
2,775,000 Nassau County IDA (Hispanic Counseling Center) 7.625 06/01/2033 2,791,844
- --------------------------------------------------------------------------------------------------------------------------
35,000 Newport Highlands HDC 6.100 08/01/2024 35,115
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Niagara County IDA (American Ref-Fuel Company) 5.550 11/15/2024 2,671,575
- --------------------------------------------------------------------------------------------------------------------------
500,000 Niagara County Tobacco Asset Securitization Corp. 6.250 05/15/2034 490,375
- --------------------------------------------------------------------------------------------------------------------------
285,000 Niagara County Tobacco Asset Securitization Corp. 6.250 05/15/2040 276,094
- --------------------------------------------------------------------------------------------------------------------------
7,645,000 Niagara Falls City School District COP 5.375 06/15/2028 8,029,008
- --------------------------------------------------------------------------------------------------------------------------
3,665,000 NY Counties Tobacco Trust I (TASC) 6.500 06/01/2035 3,685,194
- --------------------------------------------------------------------------------------------------------------------------
14,550,000 NY Counties Tobacco Trust II (TASC) 5.625 06/01/2035 12,979,619
- --------------------------------------------------------------------------------------------------------------------------
20,000 NY Counties Tobacco Trust II (TASC) 5.750 06/01/2043 17,745
- --------------------------------------------------------------------------------------------------------------------------
1,800,000 NY Counties Tobacco Trust III 6.000 06/01/2043 1,710,684
- --------------------------------------------------------------------------------------------------------------------------
35,000 NYC GO 5.000 08/01/2022 35,812
- --------------------------------------------------------------------------------------------------------------------------
1,270,000 NYC GO 5.250 03/15/2032 1,307,287
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 NYC GO 5.375 12/01/2026 2,616,250
- --------------------------------------------------------------------------------------------------------------------------
1,300,000 NYC GO 5.500 06/01/2022 1,415,258
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC GO 5.875 08/01/2019 1,118,230
- --------------------------------------------------------------------------------------------------------------------------
7,775,000 NYC GO 6.125 08/01/2025 8,509,738
- --------------------------------------------------------------------------------------------------------------------------
160,000 NYC GO 6.125 08/01/2025 179,654
- --------------------------------------------------------------------------------------------------------------------------
5,000 NYC GO 7.500 02/01/2019 5,021
- --------------------------------------------------------------------------------------------------------------------------
1,562,261 NYC HDC (Keith Plaza) 6.500 02/15/2018 1,643,733
- --------------------------------------------------------------------------------------------------------------------------
2,372,646 NYC HDC (Seaview Towers) 6.500 01/15/2018 2,496,380
- --------------------------------------------------------------------------------------------------------------------------
100,000 NYC Health & Hospital Corp. 5.375 02/15/2026 102,246
- --------------------------------------------------------------------------------------------------------------------------
1,945,000 NYC Health & Hospital Corp. 5.450 02/15/2026 1,997,593
- --------------------------------------------------------------------------------------------------------------------------
1,445,000 NYC IDA (American Council of Learned Societies) 5.250 07/01/2027 1,500,127
- --------------------------------------------------------------------------------------------------------------------------
2,760,000 NYC IDA (Beth Abraham Health Services) 6.500 02/15/2022 2,865,046
- --------------------------------------------------------------------------------------------------------------------------
500,000 NYC IDA (Beth Abraham Health Services) 6.500 11/15/2027 512,765
- --------------------------------------------------------------------------------------------------------------------------
2,100,000 NYC IDA (Beth Abraham Health Services) 6.500 11/15/2034 2,154,327
- --------------------------------------------------------------------------------------------------------------------------
6,000,000 NYC IDA (Calhoun School) 6.625 12/01/2034 5,972,100
- --------------------------------------------------------------------------------------------------------------------------
3,965,000 NYC IDA
(Community Resource Developmentally Disabled) 7.500 08/01/2026 4,035,181
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC IDA (Eger Harbor House) 5.875 05/20/2044 1,103,180
- --------------------------------------------------------------------------------------------------------------------------
12,000,000 NYC IDA (Legal Aid Society) 8.600 11/01/2033 6,000,480
- --------------------------------------------------------------------------------------------------------------------------
3,700,000 NYC IDA (Lycee Francais De New York) 5.375 06/01/2023 3,784,397
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 NYC IDA (Lycee Francais De New York) 6.800 06/01/2028 4,149,560
18 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 2,100,000 NYC IDA (Polytechnic University) 6.000% 11/01/2020 $ 1,947,687
- --------------------------------------------------------------------------------------------------------------------------
4,080,000 NYC IDA (Polytechnic University) 6.125 11/01/2030 3,724,673
- --------------------------------------------------------------------------------------------------------------------------
1,380,000 NYC IDA (PSCH) 6.375 07/01/2033 1,455,141
- --------------------------------------------------------------------------------------------------------------------------
1,490,000 NYC IDA (Staten Island University Hospital) 6.450 07/01/2032 1,412,684
- --------------------------------------------------------------------------------------------------------------------------
6,020,000 NYC IDA (The Child School) 7.550 06/01/2033 6,133,417
- --------------------------------------------------------------------------------------------------------------------------
15,785,000 NYC IDA (Touro College) 6.350 06/01/2029 15,185,170
- --------------------------------------------------------------------------------------------------------------------------
5,600,000 NYC IDA (Urban Resource Institute) 7.375 11/01/2033 5,546,520
- --------------------------------------------------------------------------------------------------------------------------
5,600,000 NYC IDA (Vocational Instruction) 7.750 02/01/2033 5,825,008
- --------------------------------------------------------------------------------------------------------------------------
4,245,000 NYC IDA (YMCA of Greater NY) 5.250 08/01/2021 4,393,702
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 NYC Municipal Water Finance Authority 5.000 06/15/2032 3,039,870
- --------------------------------------------------------------------------------------------------------------------------
75,000 NYC Municipal Water Finance Authority 5.125 06/15/2030 76,234
- --------------------------------------------------------------------------------------------------------------------------
155,000 NYC Municipal Water Finance Authority 5.250 06/15/2029 161,203
- --------------------------------------------------------------------------------------------------------------------------
8,000,000 NYC Municipal Water Finance Authority 5.500 06/15/2033 8,562,880
- --------------------------------------------------------------------------------------------------------------------------
20,000 NYS DA (Dept. of Health) 5.500 07/01/2025 21,333
- --------------------------------------------------------------------------------------------------------------------------
5,750,000 NYS DA (Ithaca College) 5.250 07/01/2026 6,012,200
- --------------------------------------------------------------------------------------------------------------------------
220,000 NYS DA (Judicial Facilities Lease) 7.375 07/01/2016 271,869
- --------------------------------------------------------------------------------------------------------------------------
1,620,000 NYS DA (Lenox Hill Hospital Obligated Group) 5.500 07/01/2030 1,671,921
- --------------------------------------------------------------------------------------------------------------------------
5,000 NYS DA (Mental Health) 5.375 02/15/2026 5,254
- --------------------------------------------------------------------------------------------------------------------------
525,000 NYS DA (Montefiore Medical Center) 5.450 08/01/2029 550,683
- --------------------------------------------------------------------------------------------------------------------------
9,250,000 NYS DA
(MSH/NYU Hospital Center/HJDOI Obligated Group) 6.500 07/01/2025 9,405,215
- --------------------------------------------------------------------------------------------------------------------------
10,000,000 NYS DA (Mt. Sinai/NYU Health) 6.000 07/01/2026 10,036,100
- --------------------------------------------------------------------------------------------------------------------------
9,330,000 NYS DA (Mt. Sinai/NYU Health) 6.250 07/01/2022 9,378,703
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 NYS DA (School District Financing) 5.750 10/01/2030 5,604,350
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 NYS DA (SS Joachim & Anne Residence) 5.250 07/01/2027 4,094,280
- --------------------------------------------------------------------------------------------------------------------------
40,000 NYS DA (St. Joseph's Hospital Health Center) 5.250 07/01/2018 42,044
- --------------------------------------------------------------------------------------------------------------------------
65,000 NYS DA (St. Vincent's Hospital & Medical Center) 7.375 08/01/2011 65,285
- --------------------------------------------------------------------------------------------------------------------------
13,090,000 NYS DA (State University Educational Facilities) 5.250 05/15/2015 14,649,674
- --------------------------------------------------------------------------------------------------------------------------
2,510,000 NYS DA (State University Educational Facilities) 5.250 05/15/2021 2,798,976
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 NYS DA (Upstate Community College) 5.000 07/01/2028 5,107,350
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 NYS DA (Winthrop University Hospital) 5.500 07/01/2023 1,042,210
- --------------------------------------------------------------------------------------------------------------------------
85,000 NYS EFC (NYS Water Services) 6.600 09/15/2012 85,343
- --------------------------------------------------------------------------------------------------------------------------
20,000 NYS EFC (NYS Water Services) 7.200 03/15/2011 20,091
- --------------------------------------------------------------------------------------------------------------------------
5,395,000 NYS HFA RITES 1 10.291 2 11/01/2015 5,805,721
- --------------------------------------------------------------------------------------------------------------------------
45,000 NYS Medcare (Hospital & Nursing Home) 5.400 08/15/2033 45,310
- --------------------------------------------------------------------------------------------------------------------------
2,800,000 NYS Medcare (Long Term Health Care) 6.400 11/01/2014 2,810,360
- --------------------------------------------------------------------------------------------------------------------------
80,000 NYS Medcare (St. Luke's Hospital) 5.625 08/15/2018 82,656
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 NYS UDC (Personal Income Tax) 5.125 03/15/2027 3,089,820
- --------------------------------------------------------------------------------------------------------------------------
1,750,000 NYS UDC RITES 1 14.215 2 03/15/2025 1,976,415
19 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 250,000 Oneida County IDA
(Mohawk Valley Handicapped Services) 5.300% 03/15/2019 $ 257,985
- --------------------------------------------------------------------------------------------------------------------------
55,000 Onondaga County IDA (Salina Free Library) 5.500 12/01/2022 58,270
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Orange County IDA (Glen Arden) 5.625 01/01/2018 889,660
- --------------------------------------------------------------------------------------------------------------------------
275,000 Orange County IDA (Glen Arden) 5.700 01/01/2028 225,277
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 Otsego County IDA (Hartwick College) 5.900 07/01/2022 1,369,770
- --------------------------------------------------------------------------------------------------------------------------
8,880,000 Port Authority NY/NJ (Delta Air Lines) 6.950 06/01/2008 8,711,546
- --------------------------------------------------------------------------------------------------------------------------
2,475,000 Rensselaer County Tobacco Asset Securitization Corp. 5.625 06/01/2035 2,207,873
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Rensselaer County Tobacco Asset Securitization Corp. 5.750 06/01/2043 1,774,460
- --------------------------------------------------------------------------------------------------------------------------
1,060,000 Rockland County Tobacco Asset Securitization Corp. 5.625 08/15/2035 945,361
- --------------------------------------------------------------------------------------------------------------------------
3,150,000 Rockland County Tobacco Asset Securitization Corp. 5.750 08/15/2043 2,794,397
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Saratoga County IDA (Saratoga Hospital) 5.125 12/01/2033 2,562,325
- --------------------------------------------------------------------------------------------------------------------------
9,515,000 SONYMA, Series 29 RITES 1 8.968 2 10/01/2024 9,653,824
- --------------------------------------------------------------------------------------------------------------------------
250,000 SONYMA, Series 83 5.550 10/01/2027 259,105
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 Suffolk County IDA (ALIA-IGHL) 7.250 12/01/2033 4,101,360
- --------------------------------------------------------------------------------------------------------------------------
150,000 Suffolk County IDA (Dowling College) 6.625 06/01/2024 148,842
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 Suffolk County IDA (Jefferson's Ferry) 7.200 11/01/2019 1,564,800
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Suffolk County IDA (L.I. Network Community Services) 7.550 02/01/2034 1,010,270
- --------------------------------------------------------------------------------------------------------------------------
100,000 Syracuse IDA (Crouse Irving Companies) 5.250 01/01/2017 104,107
- --------------------------------------------------------------------------------------------------------------------------
25,000 Triborough Bridge & Tunnel Authority 5.000 01/01/2020 26,390
- --------------------------------------------------------------------------------------------------------------------------
3,585,000 Triborough Bridge & Tunnel Authority RITES 1 14.115 2 11/15/2032 3,838,101
- --------------------------------------------------------------------------------------------------------------------------
2,560,000 Triborough Bridge & Tunnel Authority RITES 1 14.126 2 11/15/2027 2,796,237
- --------------------------------------------------------------------------------------------------------------------------
10,000,000 Triborough Bridge & Tunnel Authority RITES 1 14.126 2 11/15/2032 10,706,000
- --------------------------------------------------------------------------------------------------------------------------
4,550,000 Triborough Bridge & Tunnel Authority RITES 1 14.615 2 11/15/2029 5,109,832
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Triborough Bridge & Tunnel Authority RITES 1 15.215 2 11/15/2023 3,212,450
- --------------------------------------------------------------------------------------------------------------------------
94,960,000 TSASC, Inc. (TFABs) 5.750 07/15/2032 90,466,493
- --------------------------------------------------------------------------------------------------------------------------
1,205,000 TSASC, Inc. (TFABs) 6.250 07/15/2027 1,219,123
- --------------------------------------------------------------------------------------------------------------------------
19,345,000 TSASC, Inc. (TFABs) 6.250 07/15/2034 19,524,715
- --------------------------------------------------------------------------------------------------------------------------
800,000 TSASC, Inc. (TFABs) 6.375 07/15/2039 812,256
- --------------------------------------------------------------------------------------------------------------------------
1,700,000 Ulster County IDA (Benedictine Hospital) 6.450 06/01/2024 1,665,524
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 Utica IDA (Utica College Civic Facility) 5.750 08/01/2028 2,986,230
- --------------------------------------------------------------------------------------------------------------------------
1,250,000 Utica IDA (Utica College Civic Facility) 6.750 12/01/2021 1,295,188
- --------------------------------------------------------------------------------------------------------------------------
175,000 Westchester County Healthcare Corp. 6.000 11/01/2030 173,056
- --------------------------------------------------------------------------------------------------------------------------
250,000 Westchester County IDA (Guiding Eyes for the Blind) 5.375 08/01/2024 256,145
- --------------------------------------------------------------------------------------------------------------------------
500,000 Westchester County IDA (Kendal on Hudson) 6.500 01/01/2034 508,835
- --------------------------------------------------------------------------------------------------------------------------
1,930,000 Westchester County IDA (Rippowam-Cisqua School) 5.750 06/01/2029 1,957,001
- --------------------------------------------------------------------------------------------------------------------------
320,000 Westchester County IDA (Schnurmacher Center) 6.500 11/01/2013 332,538
- --------------------------------------------------------------------------------------------------------------------------
600,000 Westchester County IDA (Schnurmacher Center) 6.500 11/01/2033 626,568
- --------------------------------------------------------------------------------------------------------------------------
55,000 Yonkers IDA (Community Devel. Properties) 6.625 02/01/2026 59,165
-------------
544,294,198
20 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--9.1%
$ 8,375,000 Guam GO, Series A 5.400% 11/15/2018 $ 8,236,478
- --------------------------------------------------------------------------------------------------------------------------
1,085,000 Guam GO, Series A 6.000 09/01/2006 1,085,163
- --------------------------------------------------------------------------------------------------------------------------
5,250,000 Guam Power Authority, Series A 5.125 10/01/2029 5,417,580
- --------------------------------------------------------------------------------------------------------------------------
10,000,000 Guam Power Authority, Series A 5.250 10/01/2034 10,476,900
- --------------------------------------------------------------------------------------------------------------------------
5,275,000 Puerto Rico Children's Trust Fund (TASC) 5.625 05/15/2043 4,634,457
- --------------------------------------------------------------------------------------------------------------------------
3,720,000 Puerto Rico Highway & Transportation Authority, Series D 5.250 07/01/2038 3,827,024
- --------------------------------------------------------------------------------------------------------------------------
6,000,000 Puerto Rico Highway & Transportation Authority, Series G 5.000 07/01/2042 6,016,440
- --------------------------------------------------------------------------------------------------------------------------
4,305,000 Puerto Rico ITEMECF
(Polytechnic University of Puerto Rico) 5.000 08/01/2022 4,307,454
- --------------------------------------------------------------------------------------------------------------------------
2,950,000 Puerto Rico Public Finance Corp., Series E 5.500 08/01/2029 3,345,418
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Puerto Rico Public Finance Corp., Series E 5.500 08/01/2029 1,054,800
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 University of V.I. , Series A 5.375 06/01/2034 1,027,050
- --------------------------------------------------------------------------------------------------------------------------
1,700,000 V.I. Public Finance Authority (Gross Receipts Taxes Loan) 5.000 10/01/2031 1,701,989
- --------------------------------------------------------------------------------------------------------------------------
1,485,000 V.I. Public Finance Authority, Series A 5.500 10/01/2022 1,528,986
- --------------------------------------------------------------------------------------------------------------------------
250,000 V.I. Water & Power Authority 5.300 07/01/2018 255,699
--------------
52,915,438
- --------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $583,627,033)--102.4% 597,209,636
- --------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(2.4) (14,098,302)
--------------
NET ASSETS--100.0% $ 583,111,334
==============
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.
21 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SUMMARY OF RATINGS September 30, 2004 / Unaudited
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY RATING CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
RATINGS PERCENT
- --------------------------------------------------------------------------------
AAA 12.5%
AA 14.6
A 8.5
BBB 39.8
BB 8.8
B 1.6
CCC 1.5
Not Rated 12.7
---------
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.
To simplify the listings of securities, abbreviations are used per the table
below:
ACDS Association for Children with Down
Syndrome
ALIA Alliance of Long Island Agencies
AP Advantage Planning, Inc.
CMA Community Mainstreaming Associates,
Inc.
COP Certificates of Participation
CSMR Community Services for the Mentally
Retarded
DA Dormitory Authority
EFC Environmental Facilities Corp.
EFLI Epilepsy Foundation of L.I., Inc.
GO General Obligation
HAII Homes Anew II, Inc.
HDC Housing Development Corp.
HFA Housing Finance Agency/Authority
HJDOI Hospital for Joint Diseases Orthopedic
Institute
IDA Industrial Development Agency
IGHL Independent Group Home for Living
ITEMECF Industrial, Tourist, Educational, Medical
and Environmental Community Facilities
L.I. Long Island
MSH/NYU Mount Sinai Hospital/New York
University
MTA Metropolitan Transportation Authority
NCMRS Nassau Community Mental Retardation
Services Co.
NY/NJ New York/New Jersey
NYC New York City
NYS New York State
NYU New York University
RITES Residual Interest Tax Exempt Security
SONYMA State of New York Mortgage Agency
TASC Tobacco Settlement Asset-Backed Bonds
TFABs Tobacco Flexible Amortization Bonds
UDC Urban Development Corp.
V.I. United States Virgin Islands
YMCA Young Men's Christian Association
22 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY MARKET VALUE PERCENT
- ---------------------------------------------------------------------------
Tobacco Settlements $ 155,582,155 26.1%
Higher Education 88,629,906 14.8
Not-for-Profit Organization 71,977,693 12.1
Highways/Railways 53,947,014 9.0
Hospital/Health Care 44,465,324 7.4
Electric Utilities 32,043,426 5.4
Adult Living Facilities 31,574,109 5.3
Education 27,600,825 4.6
General Obligation 24,567,161 4.1
Water Utilities 12,714,701 2.1
Multifamily Housing 11,722,121 2.0
Single Family Housing 9,912,929 1.7
Airlines 8,711,546 1.5
Municipal Leases 8,360,042 1.4
Sales Tax Revenue 7,631,193 1.3
Special Tax 5,066,235 0.8
Resource Recovery 2,671,575 0.4
Parking Fee Revenue 31,681 --
-----------------------------
Total $ 597,209,636 100.0%
=============================
As of September 30, 2004, none of the securities were subject to alternative
minimum tax.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF ASSETS AND LIABILITIES September 30, 2004
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------------
Investments, at value (cost $583,627,033)--see accompanying statement of investments $ 597,209,636
- ------------------------------------------------------------------------------------------------------
Cash 623,821
- ------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 10,361,681
Shares of beneficial interest sold 715,764
Other 15,927
--------------
Total assets 608,926,829
- ------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Notes payable to bank (interest rate 2.6800% at September 30, 2004) 23,000,000
Shares of beneficial interest redeemed 1,493,608
Dividends 689,814
Distribution and service plan fees 327,194
Trustees' compensation 126,282
Interest expense 46,382
Shareholder communications 36,434
Transfer and shareholder servicing agent fees 28,654
Other 67,127
--------------
Total liabilities 25,815,495
- ------------------------------------------------------------------------------------------------------
NET ASSETS $ 583,111,334
==============
- ------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 46,853
- ------------------------------------------------------------------------------------------------------
Additional paid-in capital 572,031,358
- ------------------------------------------------------------------------------------------------------
Accumulated net investment income 2,446,369
- ------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (4,995,849)
- ------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 13,582,603
--------------
NET ASSETS $ 583,111,334
==============
24 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- -----------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $539,833,671
and 43,376,599 shares of beneficial interest outstanding) $ 12.45
Maximum offering price per share (net asset value plus sales charge of 4.75% of
offering price) $ 13.07
- -----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $27,554,559 and
2,213,251 shares of beneficial interest outstanding) $ 12.45
- -----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $15,723,104 and
1,263,132 shares of beneficial interest outstanding) $ 12.45
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF OPERATIONS For the Year Ended September 30, 2004
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------------------
Interest $ 39,052,719
- ------------------------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------------------------
Management fees 3,118,498
- ------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,204,094
Class B 301,961
Class C 145,611
- ------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 311,497
Class B 18,813
Class C 9,740
- ------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 606
Class B 413
Class C 10
- ------------------------------------------------------------------------------------------------------
Interest expense 396,296
- ------------------------------------------------------------------------------------------------------
Custodian fees and expenses 33,303
- ------------------------------------------------------------------------------------------------------
Trustees' compensation 27,656
- ------------------------------------------------------------------------------------------------------
Other 63,603
--------------
Total expenses 5,632,101
Less reduction to custodian expenses (756)
Less payments and waivers of expenses (156,446)
--------------
Net expenses 5,474,899
- ------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 33,577,820
- ------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- ------------------------------------------------------------------------------------------------------
Net realized gain on investments 451,186
- ------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 3,740,499
- ------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 37,769,505
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30, 2004 2003
- ------------------------------------------------------------------------------------------------------
OPERATIONS
- ------------------------------------------------------------------------------------------------------
Net investment income $ 33,577,820 $ 31,920,176
- ------------------------------------------------------------------------------------------------------
Net realized gain 451,186 3,976,493
- ------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 3,740,499 (24,736,955)
------------------------------------
Net increase in net assets resulting from operations 37,769,505 11,159,714
- ------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------
Dividends from net investment
income:
Class A (29,863,870) (29,702,221)
Class B (1,440,068) (1,724,048)
Class C (697,461) (566,285)
- ------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 937,726 16,406,594
Class B (5,643,739) (6,602,592)
Class C 2,556,172 2,897,386
- ------------------------------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------------
Total increase (decrease) 3,618,265 (8,131,452)
- ------------------------------------------------------------------------------------------------------
Beginning of period 579,493,069 587,624,521
------------------------------------
End of period (including accumulated net investment income
of $2,446,369 and $869,948, respectively) $ 583,111,334 $ 579,493,069
====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED SEPTEMBER 30, 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.31 $ 12.75 $ 12.67 $ 12.15 $ 12.24
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .72 .71 .68 .67 .64
Net realized and unrealized gain (loss) .11 (.44) .06 .50 (.09)
-------------------------------------------------------------------------
Total from investment operations .83 .27 .74 1.17 .55
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.69) (.71) (.66) (.65) (.64)
Distributions from net realized gain -- -- -- -- -- 1
-------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.69) (.71) (.66) (.65) (.64)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.45 $ 12.31 $ 12.75 $ 12.67 $ 12.15
=========================================================================
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 6.91% 2.07% 6.11% 9.77% 4.78%
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 539,834 $ 533,563 $ 536,126 $ 530,464 $ 509,288
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 536,613 $ 531,977 $ 525,519 $ 526,333 $ 529,839
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.84% 5.57% 5.44% 5.30% 5.45%
Total expenses 0.91% 0.93% 0.89% 0.84% 0.89%
Expenses after payments and waivers
and reduction to custodian expenses 0.88% N/A 4,5 N/A 4 N/A 4 N/A 4
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 6% 63% 73% 10% 26%
1. Less than $0.005 per share.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distribu- tions reinvested in additional shares
on the reinvestment date, and redemption at the net asset value calculated on
the last business day of the fiscal period. Sales charges are not reflected in
the total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
CLASS B YEAR ENDED SEPTEMBER 30, 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.32 $ 12.75 $ 12.68 $ 12.16 $ 12.25
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .62 .60 .58 .56 .53
Net realized and unrealized gain (loss) .10 (.42) .06 .51 (.07)
-------------------------------------------------------------------------
Total from investment operations .72 .18 .64 1.07 .46
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.59) (.61) (.57) (.55) (.55)
Distributions from net realized gain -- -- -- -- -- 1
-------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.59) (.61) (.57) (.55) (.55)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.45 $ 12.32 $ 12.75 $ 12.68 $ 12.16
=========================================================================
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 5.99% 1.36% 5.22% 8.94% 3.98%
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 27,555 $ 32,851 $ 40,896 $ 46,422 $ 49,671
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 30,212 $ 36,000 $ 42,021 $ 48,115 $ 60,299
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.05% 4.77% 4.67% 4.53% 4.68%
Total expenses 1.69% 1.71% 1.66% 1.61% 1.67%
Expenses after payments and waivers
and reduction to custodian expenses 1.66% N/A 4,5 N/A 4 N/A 4 N/A 4
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 6% 63% 73% 10% 26%
1. Less than $0.005 per share.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distribu- tions reinvested in additional shares
on the reinvestment date, and redemption at the net asset value calculated on
the last business day of the fiscal period. Sales charges are not reflected in
the total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS C YEAR ENDED SEPTEMBER 30, 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.32 $ 12.75 $ 12.68 $ 12.15 $ 12.24
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .62 .60 .57 .56 .56
Net realized and unrealized gain (loss) .10 (.42) .07 .52 (.10)
-------------------------------------------------------------------------
Total from investment operations .72 .18 .64 1.08 .46
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.59) (.61) (.57) (.55) (.55)
Distributions from net realized gain -- -- -- -- -- 1
-------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.59) (.61) (.57) (.55) (.55)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.45 $ 12.32 $ 12.75 $ 12.68 $ 12.15
=========================================================================
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 5.99% 1.35% 5.22% 9.03% 3.97%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 15,723 $ 13,080 $ 10,603 $ 8,251 $ 5,954
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 14,598 $ 11,852 $ 9,183 $ 6,979 $ 6,121
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 5.04% 4.78% 4.66% 4.51% 4.68%
Total expenses 1.69% 1.72% 1.66% 1.61% 1.66%
Expenses after payments and waivers
and reduction to custodian expenses 1.66% N/A 4,5 N/A 4 N/A 4 N/A 4
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 6% 63% 73% 10% 26%
1. Less than $0.005 per share.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distribu- tions reinvested in additional shares
on the reinvestment date, and redemption at the net asset value calculated on
the last business day of the fiscal period. Sales charges are not reflected in
the total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer AMT-Free New York Municipals (the Fund), is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Funds investment objective is to seek the maximum current income
exempt from federal, New York State and New York City income taxes for
individual investors consistent with the preservation of capital. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ due
to each class having its own expenses, such as transfer and shareholder
servicing agent fees and shareholder communications, directly attributable to
that class. Class A, B and C have separate distribution and/or service plans.
Class B shares will automatically convert to Class A shares six years after the
date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities listed
or traded on National Stock Exchanges or other domestic or foreign exchanges are
valued based on the last sale price of the security traded on that exchange
prior to the time when the Fund's assets are valued. Securities traded on NASDAQ
are valued based on the closing price provided by NASDAQ prior to the time when
the Fund's assets are valued. In the absence of a sale, the security is valued
at the last sale price on the prior trading day, if it is within the spread of
the closing bid and asked prices, and if not, at the closing bid price.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of 60 days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Securities may be valued primarily
using dealer-supplied valuations or a portfolio pricing service authorized by
the Board of Trustees. Securities (including restricted securities) for which
market quotations are not readily available are valued at their fair value.
Foreign and domestic securities whose values have been materially affected by
what the Manager identifies as a significant event occurring before the Fund's
assets are valued but after the close of their respective exchanges will be fair
valued. Fair value is determined in good faith using consistently applied
procedures under the supervision of the Board of Trustees. Short-term "money
market type" debt securities with remaining maturities of sixty days or less are
valued at amortized cost (which approximates market value).
31 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 will invest no more than 20% of its total assets in inverse floaters.
Inverse floaters amount to $49,286,960 as of September 30, 2004. Including the
effect of leverage, inverse floaters represent 18% of the Fund's total assets as
of September 30, 2004.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. There are certain risks arising from geographic
concentration in any state. Certain revenue or tax related events in a state may
impair the ability of certain issuers of municipal securities to pay principal
and interest on their obligations.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3 TAX PURPOSES
-------------------------------------------------------------------------
$ 2,863,847 $ -- $ 1,457,318 $ 10,044,066
1. As of September 30, 2004, the Fund had $1,457,318 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of September 30, 2004,
details of the capital loss carryforward was as follows:
EXPIRING
-------------------------
2009 $ 1,457,318
2. During the fiscal year ended September 30, 2004, the Fund utilized $393,609
of capital loss carryforward to offset capital gains realized in that fiscal
year.
3. During the fiscal year ended September 30, 2003, the Fund utilized $2,846,086
of capital loss carryforward to offset capital gains realized in that fiscal
year.
32 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
The tax character of distributions paid during the years ended September 30,
2004 and September 30, 2003 was as follows:
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 SEPTEMBER 30, 2003
----------------------------------------------------------------------
Distributions paid from:
Exempt-interest dividends $ 32,001,399 $ 31,992,554
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 September 30, 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 $ 587,165,570
================
Gross unrealized appreciation $ 19,199,586
Gross unrealized depreciation (9,155,520)
----------------
Net unrealized appreciation $ 10,044,066
================
- --------------------------------------------------------------------------------
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
September 30, 2004, the Fund's projected benefit obligations were increased by
$12,271 and payments of $10,000 were made to retired trustees, resulting in an
accumulated liability of $108,068 as of September 30, 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.
33 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
YEAR ENDED SEPTEMBER 30, 2004 YEAR ENDED SEPTEMBER 30, 2003
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------
CLASS A
Sold 3,850,924 $ 48,207,057 5,818,730 $ 71,829,097
Dividends and/or
distributions reinvested 1,587,925 19,824,440 1,668,859 20,587,368
Redeemed (5,394,003) (67,093,771) (6,201,237) (76,009,871)
-----------------------------------------------------------------
Net increase 44,846 $ 937,726 1,286,352 $ 16,406,594
=================================================================
- -------------------------------------------------------------------------------------------
CLASS B
Sold 348,550 $ 4,364,065 709,641 $ 8,780,005
Dividends and/or
distributions reinvested 74,760 934,320 98,823 1,220,174
Redeemed (877,035) (10,942,124) (1,347,750) (16,602,771)
-----------------------------------------------------------------
Net decrease (453,725) $ (5,643,739) (539,286) $ (6,602,592)
=================================================================
- -------------------------------------------------------------------------------------------
CLASS C
Sold 366,324 $ 4,608,949 453,368 $ 5,622,411
Dividends and/or
distributions reinvested 35,480 442,749 31,731 391,119
Redeemed (200,686) (2,495,526) (254,461) (3,116,144)
-----------------------------------------------------------------
Net increase 201,118 $ 2,556,172 230,638 $ 2,897,386
=================================================================
- --------------------------------------------------------------------------------
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 September 30, 2004, were
$40,942,462 and $33,243,438, respectively.
34 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- --------------------------------------------------------------------------------
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 September 30, 2004, the Fund paid
$338,366 to OFS for services to the Fund.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% 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 0.25% per
year under each plan. If either the Class B or Class C plan is terminated by the
Fund or by the shareholders of a class, the Board of Trustees and its
independent trustees must determine whether the Distributor shall be entitled to
payment from the Fund of all or a portion of the service fee and/or 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 September 30, 2004 for Class B and Class C shares were $1,451,503 and
$249,885, 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
35 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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
- -----------------------------------------------------------------------------------------------
September 30, 2004 $ 107,233 $ 8,955 $ 101,212 $ 2,386
- -----------------------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. The Manager voluntarily agreed to waive a
portion of its advisory fee at an annual rate equal to 0.10% of each class's
average daily net assets while the Fund's trailing one year performance at the
end of the preceding calendar quarter is in the fifth quintile of the Fund's
Lipper peer group. The Manager will voluntarily waive a portion of its advisory
fee at an annual rate equal to 0.05% of each class's average daily net assets
while the Fund's trailing one-year performance at the end of the preceding
calendar quarter is in the fourth quintile of the Fund's Lipper peer group.
During the year ended September 30, 2004, the Manager waived $146,728. The
foregoing advisory fee waiver automatically terminates when the Fund's trailing
one-year performance at the end of the preceding calendar quarter is in the
first, second or third quintile of the Fund's Lipper peer group, and did so
terminate effective January 1, 2004.
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 September 30, 2004, OFS waived $9,487, $144 and $87 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 September 30, 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 September 30, 2004 was
$49,286,960, which represents 8.45% 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
36 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
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 $23,000,000 at September 30, 2004
at an interest rate of 2.68%. For the year ended September 30, 2004, the average
month-end loan balance was $20,376,902 at an average daily interest rate of
1.88%. The Fund had gross borrowings and gross loan repayments of $79,100,000
and $79,900,000, respectively, during the year ended September 30, 2004. The
maximum amount of borrowings outstanding at any month-end was $29,900,000. The
Fund paid commitment fees of $5,878 and interest of $391,581 during the year
ended September 30, 2004.
- --------------------------------------------------------------------------------
7. LITIGATION
Six complaints have been filed as putative derivative and class actions against
the Manager, OFS and the Distributor (collectively, "OppenheimerFunds"), as well
as 51 of the Oppenheimer funds (collectively, the "Funds") including this Fund,
and nine Directors/ Trustees of certain of the Funds (collectively, the
"Directors/Trustees"). The complaints allege that the Manager charged excessive
fees for distribution and other costs, improperly used assets of the Funds in
the form of directed brokerage commissions and 12b-1 fees to pay brokers to
promote sales of the Funds, and failed to properly disclose the use of Fund
assets to make those payments in violation of the Investment Company Act of 1940
and the Investment Advisers Act of 1940. The complaints further allege that by
permitting and/or participating in those actions, the Directors/Trustees
breached their fiduciary duties to Fund shareholders under the Investment
Company Act of 1940 and at common law. By order dated October 27, 2004, these
six actions, and future related actions, were consolidated by the U.S. District
Court for the Southern District of New York into a single consolidated
proceeding in contemplation of the filing of a superceding consolidated and
amended complaint.
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.
37 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer AMT-Free New York Municipals, including the statement of
investments, as of September 30, 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 September 30, 2004, by correspondence
with the custodian. 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 AMT-Free New York Municipals as of September 30, 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
October 21, 2004
38 | OPPENHEIMER AMT-FREE NEW YORK 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 September 30,
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; UPDATES TO STATEMENTS OF
INVESTMENTS 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 www.sec.gov. Those
forms may be reviewed and copied at the SEC's Public Reference Room in
Washington D.C. Information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
39 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
TRUSTEES AND OFFICERS Unaudited
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NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS
FUND, LENGTH OF SERVICE, AGE HELD BY TRUSTEE; NUMBER OF PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN BY
TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY,
TRUSTEES CENTENNIAL, CO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, UNTIL
HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Of Counsel (since June 1993) Hogan & Hartson (a law firm); a director (since
Chairman of the Board 2002) of Danielson Holding Corp. Formerly a director of Weyerhaeuser Corp.
of Trustees (since 2003); (1999-April 2004), Caterpillar, Inc. (1993-December 2002), ConAgra Foods
Trustee (since 1993) (1993-2001), Texas Instruments (1993-2001) and FMC Corporation (1993-2001).
Age: 73 Oversees 25 portfolios in the OppenheimerFunds complex.
ROBERT G. GALLI, A trustee or director of other Oppenheimer funds. Oversees 35 portfolios in
Trustee (since 1993) the OppenheimerFunds complex.
Age: 71
PHILLIP A. GRIFFITHS, A director (since 1991) of the Institute for Advanced Study, Princeton, N.J.,
Trustee (since 1999) a director (since 2001) of GSI Lumonics, a trustee (since 1983) of Woodward
Age: 66 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.
MARY F. MILLER, Formerly a Senior Vice President and General Auditor, American Express
Trustee (since 2004) Company (July 1998-February 2003). Member of Trustees of the American
Age: 62 Symphony Orchestra (October 1998 to present). Oversees 14 portfolios in the
OppenheimerFunds complex.
JOEL W. MOTLEY, Director (since January 2002) Columbia Equity Financial Corp. (privately-held
Trustee (since 2002) financial adviser); Managing Director (since January 2002) Carmona Motley,
Age: 52 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 Resources, Inc. (electric
Trustee (since 1984) utility holding company); formerly a director of Prime Retail, Inc. (real
Age: 77 estate investment trust) and Dominion Energy, Inc. (electric power and oil &
gas producer), President and Chief Executive Officer of The Conference Board,
Inc. (international economic and business research) and a director of
Lumbermens Mutual Casualty Company, American Motorists Insurance
Company and American Manufacturers Mutual Insurance Company. Oversees 25
portfolios in the OppenheimerFunds complex.
EDWARD V. REGAN, President, Baruch College, CUNY; a director of RBAsset (real estate manager);
Trustee (since 1993) a director of OffitBank; formerly Trustee, Financial Accounting Foundation
Age: 74 (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.
40 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
RUSSELL S. REYNOLDS, JR., Chairman (since 1993) of The Directorship Search Group, Inc. (corporate
Trustee (since 1989) governance consulting and executive recruiting); a Life Trustee of
Age: 72 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.
DONALD W. SPIRO,* Chairman Emeritus (since January 1991) of the Manager. Formerly a director
Vice Chairman of the (January 1969-August 1999) of the Manager. Oversees 25 portfolios in the
Board of Trustees, Trustee OppenheimerFunds complex.
(since 1985)
Age: 78
*Mr. Spiro is expected to retire as Trustee of the Board I Funds effective
October 31, 2004.
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INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS TWO WORLD FINANCIAL CENTER,
AND OFFICER 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NY 10281-1008. MR. MURPHY SERVES FOR
AN INDEFINITE TERM, UNTIL HIS RESIGNATION, DEATH OR REMOVAL.
JOHN V. MURPHY, Chairman, Chief Executive Officer and director (since June 2001) and
President and Trustee President (since September 2000) of the Manager; President and a director or
(since 2001) trustee of other Oppenheimer funds; President and a director (since July
Age: 55 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 74 portfolios as
Trustee/Director and 10 portfolios as Officer in the OppenheimerFunds complex.
41 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
TRUSTEES AND OFFICERS Unaudited / Continued
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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 1996; Chairman of the
Vice President and Portfolio Rochester Division of the Manager since January 1996; an officer of 10
Manager (since 2002) portfolios in the OppenheimerFunds complex.
Age: 55
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999) of the Manager;
Treasurer (since 1999) Treasurer of HarbourView Asset Management Corporation, Shareholder Financial
Age: 45 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 84
portfolios in the OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since
Secretary (since 2001) February 2002) of the Manager; General Counsel and a director (since November
Age: 56 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 84 portfolios in the OppenheimerFunds
complex.
42 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer (since March 2004) of the
Vice President and Manager; Vice President (since June 1983) of OppenheimerFunds Distributor,
Chief Compliance Officer Inc., Centennial Asset Management Corporation and Shareholder Services, Inc.
(since 2004) Formerly (until February 2004) Vice President and Director of Internal Audit
Age: 54 of OppenheimerFunds, Inc. An officer of 84 portfolios in the
OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST, BY
CALLING 1.800.525.7048.
43 | OPPENHEIMER AMT-FREE NEW YORK 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 $28,000 in fiscal 2004 and $20,000 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 $44,500 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 to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $6,000 in fiscal 2004 and $5,000 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 $137 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 $50,500 in fiscal 2004 and $5,137 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 directors 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 September 30, 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)