UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-2668
Oppenheimer AMT Free Municipals
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: JULY 31
Date of reporting period: AUGUST 1, 2004 - JANUARY 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN INDUSTRIES
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Higher Education 10.6%
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Multifamily Housing 8.3
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Adult Living Facilities 8.1
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Special Assessment 6.9
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Hotels, Restaurants & Leisure 6.0
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Electric Utilities 5.9
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Tobacco 5.8
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Pollution Control 5.8
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Hospital/Health Care 5.5
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Paper, Containers & Packaging 5.3
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2005, and are based on total value of investments.
TOP TEN STATES
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Texas 12.1%
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Florida 8.8
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Illinois 7.2
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Georgia 5.4
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California 4.9
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Louisiana 4.9
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New Jersey 4.6
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Pennsylvania 4.6
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Virginia 4.2
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Missouri 3.9
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Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2005, and are based on net assets.
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10 | OPPENHEIMER AMT-FREE MUNICIPALS
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CREDIT ALLOCATION
[PIE CHART]
AAA 9.9%
AA 2.1
A 20.3
BBB 44.0
BB 3.0
B 2.5
CCC 1.5
Not Rated 16.7
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2005, and are dollar-weighted based on total investments. Securities
rated by any rating organization are included in the equivalent S & P 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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11 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES
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Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. THIS SEMIANNUAL REPORT MUST
BE PRECEDED OR ACCOMPANIED BY THE CURRENT PROSPECTUS OF OPPENHEIMER AMT-FREE
MUNICIPALS. BEFORE INVESTING IN ANY OF THE OPPENHEIMER FUNDS, INVESTORS SHOULD
CAREFULLY CONSIDER A FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES.
FUND PROSPECTUSES CONTAIN THIS AND OTHER INFORMATION ABOUT THE FUNDS. FOR MORE
INFORMATION, ASK YOUR FINANCIAL ADVISOR, CALL US AT 1.8000.525.7048, OR VISIT
OUR WEBSITE AT WWW.OPPENHEIMERFUNDS.COM. READ PROSPECTUSES CAREFULLY BEFORE
INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 10/27/76. The average
annual total returns are shown net of the applicable 4.75% maximum initial sales
charge. The Fund's maximum sales charge for Class A shares was lower prior to
1/31/86, so actual performance may have been higher.
CLASS B shares of the Fund were first publicly offered on 3/16/93. The average
annual total returns are shown net of the applicable contingent deferred sales
charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A
shares 72 months after purchase, the 10-year return for Class B uses Class A
performance for the period after conversion. Class B shares are subject to an
annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 8/29/95. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
12 | OPPENHEIMER AMT-FREE 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 January 31, 2005.
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
13 | OPPENHEIMER AMT-FREE 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.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(8/1/04) (1/31/05) JANUARY 31, 2005
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Class A Actual $1,000.00 $1,080.20 $4.77
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Class A Hypothetical 1,000.00 1,020.56 4.63
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Class B Actual 1,000.00 1,076.30 8.80
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Class B Hypothetical 1,000.00 1,016.69 8.55
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Class C Actual 1,000.00 1,076.30 8.80
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Class C Hypothetical 1,000.00 1,016.69 8.55
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 184/366
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended January 31, 2005 are as follows:
CLASS EXPENSE RATIOS
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Class A 0.91%
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Class B 1.68
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Class C 1.68
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14 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS January 31, 2005 / Unaudited
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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MUNICIPAL BONDS AND NOTES--102.1%
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ALABAMA--0.2%
$ 15,000 AL HFA (Pelican) 6.550% 03/20/2030 $ 15,477
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15,000 Birmingham, AL Special Care Facilities Financing
Authority (Children's Hospital of Alabama) 5.500 06/01/2022 16,102
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1,000,000 Camden, AL IDB (Weyerhaeuser Company), Series A 6.125 12/01/2024 1,085,780
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55,000 Cullman, AL Medical Clinic Board
(Cullman Regional Medical Center) 6.500 02/15/2023 55,025
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15,000 Montgomery, AL Medical Clinic Board Health Care 7.000 03/01/2015 15,033
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1,187,417
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ALASKA--0.7%
2,500,000 AK HFC RITES 1 13.645 2 06/01/2032 2,770,550
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2,000,000 AK HFC ROLs 1 13.933 2 12/01/2033 2,168,000
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230,000 AK HFC, Series A 5.875 12/01/2024 238,197
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75,000 AK Northern Tobacco Securitization Corp. (TASC) 5.500 06/01/2029 70,063
-------------
5,246,810
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ARIZONA--3.8%
750,000 AZ West Campus Hsg. (Arizona State University) 6.375 07/01/2022 841,185
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930,950 Central AZ Irrigation & Drain District, Series A 6.000 06/01/2013 899,465
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300,000 El Mirage, AZ COP 1 6.900 08/01/2015 305,883
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125,000 Glendale, AZ IDA (American Graduate School) 6.000 07/01/2017 127,550
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2,000,000 Maricopa County, AZ IDA (Christian Care Mesa II) 6.625 01/01/2034 2,010,540
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1,265,000 Maricopa County, AZ IDA
(Horizon Community Learning Center) 6.375 06/01/2030 1,328,592
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1,500,000 Maricopa County, AZ IDA (Sun King Apartments) 6.750 11/01/2018 1,313,970
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1,210,000 Maricopa County, AZ IDA (Sun King Apartments) 6.750 05/01/2031 996,798
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1,275,000 Maricopa County, AZ IDA (Villas at Augusta) 6.400 10/20/2020 1,404,005
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50,000 Mesa, AZ IDA (Mesa Student Hsg.) 6.250 07/01/2032 54,031
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3,000,000 Peoria, AZ IDA (Sierra Winds) 6.375 08/15/2029 3,032,580
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1,000,000 Phoenix, AZ IDA (Summit Apartments) 6.550 07/20/2037 1,094,970
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20,000 Phoenix, AZ IDA (Woodstone & Silver Springs) 6.250 04/01/2023 20,086
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735,000 Pima County, AZ IDA (Arizona Charter School) 6.100 07/01/2024 749,480
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500,000 Pima County, AZ IDA (Arizona Charter School) 6.300 07/01/2031 508,120
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1,570,000 Pima County, AZ IDA (Arizona Charter School) 6.500 07/01/2023 1,635,391
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1,290,000 Pima County, AZ IDA (Arizona Charter School) 6.750 07/01/2031 1,343,238
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1,100,000 Pima County, AZ IDA (Noah Webster Basic School) 6.125 12/15/2034 1,105,973
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2,845,000 Pima County, AZ IDA
(Phoenix Advantage Charter School) 5.600 07/01/2023 3,018,289
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5,000,000 Verrado, AZ Community Facilities District 6.500 07/15/2027 5,195,250
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26,985,396
15 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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ARKANSAS--0.1%
$ 195,000 Pine Bluff, AR IDA (Colt Industries) 6.500% 02/15/2009 $ 197,252
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130,000 Pope County, AR Pollution Control
(Arkansas Power & Light Company) 6.300 11/01/2020 133,523
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330,775
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CALIFORNIA--4.9%
2,220,000 Beaumont, CA Financing Authority, Series B 5.875 09/01/2023 2,258,384
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2,000,000 CA CDA (East Valley Tourist) 11.000 10/01/2020 2,030,600
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1,200,000 CA GO Fixed Receipts 5.250 02/01/2025 1,290,624
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4,700,000 CA GO RITES 1 12.739 2 02/01/2025 6,119,776
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1,000,000 CA Golden State Tobacco Securitization Corp. 6.625 06/01/2040 1,010,710
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6,000,000 CA Statewide CDA (East Campus Apartments) 5.625 08/01/2034 6,289,440
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1,500,000 CA Statewide CDA COP
(Cedars-Sinai Medical Center) INFLOS 1 8.843 2 11/01/2015 1,532,595
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590,000 Independent Cities, CA Lease Finance Authority
(Morgan Hill-Hacienda Valley) 5.950 11/15/2039 601,110
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4,000,000 Los Angeles, CA Regional Airports Improvement
Corp. (Delta Airlines) 6.350 11/01/2025 3,000,000
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3,000,000 Redding, CA Electric System COP Linked SAVRS & RIBS 6.368 3 07/01/2022 3,748,770
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50,000 Riverside, CA Unified School District Special Tax 6.200 09/01/2030 51,268
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7,000,000 Santa Rosa, CA Rancheria Tachi Yokut Tribe Enterprise 6.625 03/01/2018 7,049,490
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34,982,767
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COLORADO--1.2%
4,800,000 Broomfield, CO Village Metropolitan District No. 2 6.250 12/01/2032 4,801,248
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1,000,000 Central Marksheffel, CO Metropolitan District 7.250 12/01/2029 1,005,080
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30,000 CO Health Facilities Authority
(Northern Colorado Medical Center) 6.000 05/15/2020 30,294
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2,270,000 CO Health Facilities Authority RITES 1 14.645 2 03/01/2022 3,000,849
-------------
8,837,471
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CONNECTICUT--1.5%
15,000 CT H&EFA (New Britain General Hospital), Series B 6.000 07/01/2024 15,338
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45,000 CT H&EFA (Yale-New Haven Hospital) 5.700 07/01/2025 47,795
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9,900,000 Mashantucket, CT Western Pequot Tribe, Series B 5.750 09/01/2027 10,230,957
-------------
10,294,090
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DISTRICT OF COLUMBIA--0.5%
1,000,000 District of Columbia (Carnegie Endowment) 5.750 11/15/2026 1,058,460
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2,000,000 District of Columbia Friendship Public Charter School 5.250 06/01/2033 2,036,780
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500,000 District of Columbia Tobacco Settlement Financing Corp. 6.750 05/15/2040 507,245
-------------
3,602,485
16 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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FLORIDA--8.8%
$ 2,350,000 Concorde Estates, FL Community Devel. District 5.850% 05/01/2035 $ 2,373,030
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20,000 Dade County, FL Aviation (Miami International Airport) 5.600 10/01/2026 21,263
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2,165,000 Dade County, FL IDA (Miami Cerebral Palsy Residence) 8.000 06/01/2022 2,211,331
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195,000 Dade County, FL Public Facilities
(Jackson Memorial Hospital) 5.250 06/01/2023 196,496
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2,000,000 Double Branch, FL Special Assessment Community
Devel. District 6.700 05/01/2034 2,148,400
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2,500,000 FL Capital Trust Agency (American Opportunity) 5.875 06/01/2038 2,331,125
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1,275,000 FL Capital Trust Agency (River Bend Apartments) 1,4,7 7.000 10/01/2034 54,060
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 FL Capital Trust Agency Multifamily Affordable Hsg.,
Series C 8.125 10/01/2038 995,250
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250,000 FL Gateway Services Community Devel. District
(Sun City Center) 6.500 05/01/2033 257,763
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750,000 FL State Board of Education GO 8.400 06/01/2007 807,240
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100,000 FL State Board of Education GO, Series C 5.500 06/01/2021 101,911
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1,000,000 Heritage Harbour South, FL Community Devel. District 6.500 05/01/2034 1,054,210
- -----------------------------------------------------------------------------------------------------------------------------
190,000 Hillsborough County, FL IDA (Tampa Electric Company) 6.250 12/01/2034 197,800
- -----------------------------------------------------------------------------------------------------------------------------
60,000 Hillsborough County, FL IDA (Tampa Electric Company) 6.250 12/01/2034 61,686
- -----------------------------------------------------------------------------------------------------------------------------
1,600,000 Islands at Doral, FL Southwest Community Devel. District 6.375 05/01/2035 1,682,976
- -----------------------------------------------------------------------------------------------------------------------------
125,000 Jacksonville, FL Electric Authority (St. Johns River) 5.250 10/01/2021 125,209
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1,875,000 Jacksonville, FL Electric Authority RITES 1 11.111 2 10/01/2022 1,940,100
- -----------------------------------------------------------------------------------------------------------------------------
2,500,000 Jacksonville, FL Health Facilities Authority
(Ascension Health Credit Group) 5.250 11/15/2032 2,623,775
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1,225,000 Keys Cove, FL Community Devel. District 5.875 05/01/2035 1,232,730
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4,500,000 Lee County, FL IDA (Cypress Cove Healthpark) 6.750 10/01/2032 4,630,725
- -----------------------------------------------------------------------------------------------------------------------------
85,000 Marion County, FL Hospital District
(Munroe Regional Medical Center) 5.625 10/01/2024 88,083
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2,500,000 Midtown Miami, FL Community Devel. District
Special Assessment 6.500 05/01/2037 2,617,250
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8,035,000 Oakland, FL Charter School 6.950 12/01/2032 8,367,729
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500,000 Orange County, FL Health Facilities Authority
(Orlando Lutheran Towers) 8.750 07/01/2026 548,975
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30,000 Orange County, FL Health Facilities Authority
(Orlando Regional Healthcare System) 6.000 11/01/2024 30,077
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80,000 Palm Beach County, FL Multifamily (Boynton Apartments) 8.000 01/01/2014 78,406
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6,000,000 Reunion East, FL Community Devel. District, Series A 7.375 05/01/2033 6,631,080
- -----------------------------------------------------------------------------------------------------------------------------
275,000 Santa Rosa Bay, FL Bridge Authority 6.250 07/01/2028 287,496
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1,280,000 South-Dade, FL Venture Community Devel. District 6.125 05/01/2034 1,306,714
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 St. John's Forest, FL Community Devel. District, Series A 6.125 05/01/2034 3,046,200
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Stonegate, FL Community Devel. District 6.000 05/01/2024 1,021,000
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1,000,000 Stonegate, FL Community Devel. District 6.125 05/01/2034 1,020,870
17 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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FLORIDA Continued
$ 2,000,000 Sumter Landing, FL Community Devel. District 6.875% 05/01/2023 $ 2,110,260
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 Sumter Landing, FL Community Devel. District 6.950 05/01/2033 2,106,300
- -----------------------------------------------------------------------------------------------------------------------------
10,000 University of FL (University Hsg.) 5.500 07/01/2023 10,021
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Village Community, FL Devel. District No. 5, Series A 6.100 05/01/2034 1,029,430
- -----------------------------------------------------------------------------------------------------------------------------
940,000 Village Community, FL Devel. District No. 5, Series A 6.500 05/01/2033 994,417
- -----------------------------------------------------------------------------------------------------------------------------
5,100,000 Volusia County, FL EFA
(Emery-Riddle Aeronautical University) 6.125 10/15/2026 5,274,012
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 World Commerce, FL Community Devel. District
Special Assessment 6.500 05/01/2036 1,027,960
-------------
62,643,360
- -----------------------------------------------------------------------------------------------------------------------------
GEORGIA--5.4%
13,000,000 Atlanta, GA Devel. Authority Student Hsg.
(ADA/CAU Partners) 6.000 07/01/2036 14,143,480
- -----------------------------------------------------------------------------------------------------------------------------
3,905,000 Atlanta, GA Devel. Authority Student Hsg.
(ADA/CAU Partners) 6.250 07/01/2024 4,348,178
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 Atlanta, GA Devel. Authority Student Hsg.
(ADA/CAU Partners) 6.250 07/01/2036 2,215,760
- -----------------------------------------------------------------------------------------------------------------------------
165,000 Burke County, GA Devel. Authority
(Georgia Power Company) 5.400 05/01/2034 168,602
- -----------------------------------------------------------------------------------------------------------------------------
9,835,000 De Kalb County, GA Devel. Authority Public Purpose 5.500 12/10/2023 9,708,227
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 Fulton County, GA Residential Care Facilities
(Canterbury Court) 6.125 02/15/2034 2,004,060
- -----------------------------------------------------------------------------------------------------------------------------
2,815,000 GA Municipal Electric Authority RITES 1 18.635 2 01/01/2017 5,328,964
- -----------------------------------------------------------------------------------------------------------------------------
500,000 GA Municipal Electric Authority, Series X 6.500 01/01/2012 572,425
- -----------------------------------------------------------------------------------------------------------------------------
30,000 Savannah, GA EDA (University Financing Foundation) 6.750 11/15/2020 33,884
- -----------------------------------------------------------------------------------------------------------------------------
85,000 Savannah, GA EDA (University Financing Foundation) 6.750 11/15/2031 93,965
-------------
38,617,545
- -----------------------------------------------------------------------------------------------------------------------------
HAWAII--1.5%
5,000,000 HI Airport System RITES 1 9.514 2 07/01/2020 6,240,500
- -----------------------------------------------------------------------------------------------------------------------------
3,700,000 HI Department of Budget & Finance Special Purpose
(Kahala Nui) 8.000 11/15/2033 3,964,735
- -----------------------------------------------------------------------------------------------------------------------------
80,000 HI HF&D Corp. (Single Family Mtg.), Series B 5.900 07/01/2027 81,839
- -----------------------------------------------------------------------------------------------------------------------------
45,000 HI HF&D Corp., Series B 5.850 07/01/2017 46,035
-------------
10,333,109
- -----------------------------------------------------------------------------------------------------------------------------
IDAHO--3.2%
20,000 ID Hsg. Agency (Multifamily Hsg.) 6.700 07/01/2024 20,420
- -----------------------------------------------------------------------------------------------------------------------------
16,720,000 Nez Perce County, ID Pollution Control (Potlatch Corp.) 6.000 10/01/2024 16,982,671
- -----------------------------------------------------------------------------------------------------------------------------
5,360,000 Pocatello, ID Devel. Authority Revenue Allocation
Tax Increment, Series A 6.000 08/01/2028 5,381,172
-------------
22,384,263
18 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
ILLINOIS--7.2%
$ 9,000,000 Chicago, IL O'Hare International Airport
(American Airlines) 8.200% 12/01/2024 $ 7,709,490
- -----------------------------------------------------------------------------------------------------------------------------
5,000,000 Chicago, IL Tax (Pilsen Redevel.) 6.750 06/01/2022 5,206,500
- -----------------------------------------------------------------------------------------------------------------------------
2,400,000 Cook County, IL Community School District GO 7.125 06/01/2024 3,069,168
- -----------------------------------------------------------------------------------------------------------------------------
1,625,000 IL EFA (Augustana College) 5.625 10/01/2022 1,733,631
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 IL EFA (Augustana College) 5.700 10/01/2032 3,126,510
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 IL Finance Authority Student Hsg.
(MJH Education Assistance) 5.125 06/01/2035 2,977,860
- -----------------------------------------------------------------------------------------------------------------------------
5,000,000 IL Health Facilities Authority
(Covenant Retirement Communities) 5.625 12/01/2032 5,381,550
- -----------------------------------------------------------------------------------------------------------------------------
4,000,000 IL Health Facilities Authority (Lake Forest Hospital) 6.000 07/01/2033 4,318,920
- -----------------------------------------------------------------------------------------------------------------------------
615,000 IL Health Facilities Authority
(Rush-Presbyterian-St. Luke's Medical Center) 5.500 11/15/2025 622,208
- -----------------------------------------------------------------------------------------------------------------------------
30,000 IL Hsg. Devel. Authority (Multifamily Hsg.) 7.000 07/01/2017 30,264
- -----------------------------------------------------------------------------------------------------------------------------
90,000 IL Hsg. Devel. Authority (Multifamily Hsg.), Series 1991-A 8.250 07/01/2016 90,329
- -----------------------------------------------------------------------------------------------------------------------------
35,000 IL Hsg. Devel. Authority (Multifamily Hsg.), Series A 6.125 07/01/2025 35,197
- -----------------------------------------------------------------------------------------------------------------------------
2,500,000 IL Metropolitan Pier & Exposition Authority RITES 1 12.635 2 12/15/2028 2,948,000
- -----------------------------------------------------------------------------------------------------------------------------
35,000 IL Regional Transportation Authority 5.600 06/01/2025 36,020
- -----------------------------------------------------------------------------------------------------------------------------
1,510,000 Lake County, IL HFC, Series A 6.700 11/01/2014 1,512,341
- -----------------------------------------------------------------------------------------------------------------------------
1,725,000 Lincolnshire, IL Special Service Area No. 1 Special Tax
(Sedgebrook) 6.250 03/01/2034 1,749,305
- -----------------------------------------------------------------------------------------------------------------------------
7,500,000 Regional Transportation Authority, IL, Series A 7.200 11/01/2020 9,906,900
- -----------------------------------------------------------------------------------------------------------------------------
250,000 Schaumburg, IL Multifamily Hsg. (Plum Grove) 6.050 02/01/2031 261,228
-------------
50,715,421
- -----------------------------------------------------------------------------------------------------------------------------
INDIANA--3.0%
5,000,000 Fort Wayne, IN Pollution Control (General Motors Corp.) 6.200 10/15/2025 5,391,200
- -----------------------------------------------------------------------------------------------------------------------------
30,000 IN DFA (USX Corp.) 6.150 07/15/2022 31,274
- -----------------------------------------------------------------------------------------------------------------------------
3,250,000 Indianapolis, IN Local Public Improvement Bond
Bank RITES 1 13.645 2 07/01/2033 4,168,840
- -----------------------------------------------------------------------------------------------------------------------------
4,750,000 North Manchester, IN (Estelle Peabody Memorial Home) 7.125 07/01/2022 4,897,915
- -----------------------------------------------------------------------------------------------------------------------------
65,000 Petersburg, IN Pollution Control
(Indianapolis Power & Light Company) 5.400 08/01/2017 65,294
- -----------------------------------------------------------------------------------------------------------------------------
185,000 Petersburg, IN Pollution Control
(Indianapolis Power & Light Company) 6.100 01/01/2016 185,131
- -----------------------------------------------------------------------------------------------------------------------------
6,625,000 Petersburg, IN Pollution Control
(Indianapolis Power & Light Company) 6.100 01/01/2016 6,638,846
- -----------------------------------------------------------------------------------------------------------------------------
125,000 Petersburg, IN Pollution Control
(Indianapolis Power & Light Company) 6.625 12/01/2024 127,759
- -----------------------------------------------------------------------------------------------------------------------------
15,000 Sullivan, IN Pollution Control (Hoosier Energy Corp.) 7.100 04/01/2019 15,237
-------------
21,521,496
19 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
IOWA--0.1%
$ 20,000 IA Finance Authority (Single Family Mtg.) 6.450% 01/01/2024 $ 20,423
- -----------------------------------------------------------------------------------------------------------------------------
500,000 IA Finance Authority Retirement Community
(Friendship Haven) 5.750 11/15/2019 498,175
- -----------------------------------------------------------------------------------------------------------------------------
500,000 IA Finance Authority Retirement Community
(Friendship Haven) 6.000 11/15/2024 500,750
-------------
1,019,348
- -----------------------------------------------------------------------------------------------------------------------------
KANSAS--0.3%
1,770,000 Hays, KS Sales Tax 6.000 01/01/2025 1,772,301
- -----------------------------------------------------------------------------------------------------------------------------
KENTUCKY--0.9%
4,000,000 Ashland, KY Pollution Control (Ashland Oil) 6.650 08/01/2009 4,100,800
- -----------------------------------------------------------------------------------------------------------------------------
2,190,000 Boone County, KY Pollution Control
(Dayton Power & Light Company) 6.500 11/15/2022 2,271,249
- -----------------------------------------------------------------------------------------------------------------------------
290,000 Kenton County, KY Airport Special Facilities
(Delta Airlines) 7.250 02/01/2022 238,856
-------------
6,610,905
- -----------------------------------------------------------------------------------------------------------------------------
LOUISIANA--4.9%
5,010,000 Calcasieu Parish, LA Industrial Devel. Board (Olin Corp.) 6.625 02/01/2016 5,360,299
- -----------------------------------------------------------------------------------------------------------------------------
3,940,000 LA HFA (VOA New Orleans Affordable Hsg. Corp.) 6.800 05/01/2029 4,033,063
- -----------------------------------------------------------------------------------------------------------------------------
1,500,000 LA Local Government EF&CD (Bellemont Apartments) 6.000 09/01/2027 1,513,080
- -----------------------------------------------------------------------------------------------------------------------------
3,810,000 LA Local Government EF&CD (Bellemont Apartments) 6.000 09/01/2035 3,820,097
- -----------------------------------------------------------------------------------------------------------------------------
935,000 LA Local Government EF&CD (Bellemont Apartments) 7.500 09/01/2016 942,686
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 LA Local Government EF&CD (Oakleigh Apartments),
Series A 6.375 06/01/2038 2,056,160
- -----------------------------------------------------------------------------------------------------------------------------
1,250,000 LA Local Government EF&CD (Oakleigh Apartments),
Series A 7.500 06/01/2038 1,276,363
- -----------------------------------------------------------------------------------------------------------------------------
2,100,000 LA Tobacco Settlement Financing Corp. Fixed Receipts 5.875 05/15/2039 1,962,492
- -----------------------------------------------------------------------------------------------------------------------------
10,695,000 LA Tobacco Settlement Financing Corp. RITES 1 8.597 2 05/15/2039 9,294,276
- -----------------------------------------------------------------------------------------------------------------------------
4,250,000 West Feliciana Parish, LA Pollution Control
(Gulf States Utilities Company) 9.000 05/01/2015 4,466,113
-------------
34,724,629
- -----------------------------------------------------------------------------------------------------------------------------
MAINE--0.0%
25,000 ME H&HEFA (University of New England) 5.750 07/01/2023 25,305
- -----------------------------------------------------------------------------------------------------------------------------
MARYLAND--1.6%
10,000 Baltimore, MD City Hsg. Corp. 7.750 10/01/2009 10,275
- -----------------------------------------------------------------------------------------------------------------------------
45,000 Baltimore, MD City Hsg. Corp., Series A 7.250 07/01/2023 45,657
- -----------------------------------------------------------------------------------------------------------------------------
40,000 MD EDC Student Hsg. (Allegheny College Hsg.) 6.000 09/01/2032 42,719
- -----------------------------------------------------------------------------------------------------------------------------
5,000,000 MD EDC Student Hsg. (Bowie State University) 5.375 06/01/2033 4,985,900
- -----------------------------------------------------------------------------------------------------------------------------
1,535,000 MD EDC Student Hsg. (Morgan State University) 6.000 07/01/2022 1,648,498
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 MD EDC Student Hsg. (University of Maryland) 5.625 10/01/2023 2,127,380
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 MD EDC Student Hsg. (University of Maryland) 5.750 10/01/2033 2,100,000
20 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
MARYLAND Continued
$ 35,000 MD Stadium Authority Sports Facility 5.800% 03/01/2026 $ 36,554
- -----------------------------------------------------------------------------------------------------------------------------
10,000 Prince Georges County, MD Pollution Control
(Potomac Electric Power Company) 6.000 09/01/2022 10,013
- -----------------------------------------------------------------------------------------------------------------------------
65,000 Prince Georges County, MD Pollution Control
(Potomac Electric Power Company) 6.375 01/15/2023 65,868
-------------
11,072,864
- -----------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS--1.0%
800,000 MA DFA (Eastern Nazarene College) 5.625 04/01/2019 759,856
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 MA DFA (Eastern Nazarene College) 5.625 04/01/2029 1,808,180
- -----------------------------------------------------------------------------------------------------------------------------
50,000 MA DFA (Northern Berkshire Community Services) 6.250 08/15/2029 54,103
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 MA DFA (Pharmacy & Allied Health Sciences) 5.750 07/01/2033 1,048,840
- -----------------------------------------------------------------------------------------------------------------------------
500,000 MA DFA (Western New England College) 5.875 12/01/2022 530,710
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 MA DFA (Western New England College) 6.125 12/01/2032 1,060,770
- -----------------------------------------------------------------------------------------------------------------------------
40,000 MA H&EFA (Lahey Clinic Medical Center) 5.375 07/01/2023 40,503
- -----------------------------------------------------------------------------------------------------------------------------
90,000 MA H&EFA (Schepens Eye Research Institute) 6.500 07/01/2028 97,814
- -----------------------------------------------------------------------------------------------------------------------------
1,906,452 MA Industrial Finance Agency (Bradford College) 5.250 11/01/2018 1,725,339
- -----------------------------------------------------------------------------------------------------------------------------
100,000 MA Industrial Finance Agency
(Cambridge Friends School) 5.800 09/01/2028 96,329
- -----------------------------------------------------------------------------------------------------------------------------
50,000 MA Industrial Finance Agency (General Motors Corp.) 5.550 04/01/2009 50,064
- -----------------------------------------------------------------------------------------------------------------------------
30,000 MA Industrial Finance Agency (St. John's High School) 5.350 06/01/2028 30,639
-------------
7,303,147
- ----------------------------------------------------------------------------------------------------------------------------
MICHIGAN--0.6%
25,000 Galesburg-Augusta, MI Community Schools GO 5.500 05/01/2030 27,277
- -----------------------------------------------------------------------------------------------------------------------------
25,000 MI COP 5.500 06/01/2027 27,336
- -----------------------------------------------------------------------------------------------------------------------------
50,000 MI Hsg. Devel. Authority (Charter Square) 5.500 01/15/2021 50,837
- -----------------------------------------------------------------------------------------------------------------------------
4,000,000 MI Strategic Fund Limited Obligation
(The Detroit Edison Company) 6.400 09/01/2025 4,170,320
- -----------------------------------------------------------------------------------------------------------------------------
10,000 Mount Clemens, MI Hsg. Corp. (FHA Section 8), Series A 6.600 06/01/2022 10,055
-------------
4,285,825
- -----------------------------------------------------------------------------------------------------------------------------
MINNESOTA--2.4%
1,000,000 Minneapolis, MN Tax Increment (St. Anthony Falls) 5.750 02/01/2027 1,001,740
- -----------------------------------------------------------------------------------------------------------------------------
40,000 MN HFA (Single Family Mtg.), Series I 6.250 01/01/2015 40,060
- -----------------------------------------------------------------------------------------------------------------------------
660,000 St. Paul, MN Hsg. & Redevel. Authority
(Great Northern Lofts) 6.250 03/01/2029 664,468
- -----------------------------------------------------------------------------------------------------------------------------
7,000,000 St. Paul, MN Hsg. & Redevel. Authority (Upper Landing) 7.000 03/01/2029 7,009,590
- -----------------------------------------------------------------------------------------------------------------------------
8,215,000 Washington County, MN Hsg. & Redevel. Authority
(Seasons Villas) 6.950 12/01/2023 8,358,516
-------------
17,074,374
21 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI--0.0%
$ 105,000 MS BFC (System Energy Resources) 5.875% 04/01/2022 $ 105,327
- -----------------------------------------------------------------------------------------------------------------------------
25,000 MS BFC (System Energy Resources) 5.900 05/01/2022 25,252
-------------
130,579
- -----------------------------------------------------------------------------------------------------------------------------
MISSOURI--3.9%
210,000 Cameron, MO IDA Health Facilities
(Cameron Community Hospital) 6.375 12/01/2029 230,364
- -----------------------------------------------------------------------------------------------------------------------------
10,280,678 Hanley/Eager Rd., MO Transportation Devel. District,
Series A 0.000 5 12/01/2033 2,456,568
- -----------------------------------------------------------------------------------------------------------------------------
13,500,000 Hazelwood, MO Transportation Devel. District
(370/Missouri Bottom Road/Tausig Road) 7.200 05/01/2033 14,508,585
- -----------------------------------------------------------------------------------------------------------------------------
750,000 Maplewood, MO Tax (Maplewood South Redevel.) 6 5.750 11/01/2026 747,615
- -----------------------------------------------------------------------------------------------------------------------------
9,000,000 St. Joseph, MO IDA (Living Community of St. Joseph) 7.000 08/15/2032 9,475,920
-------------
27,419,052
- -----------------------------------------------------------------------------------------------------------------------------
MONTANA--0.1%
500,000 Forsyth, MT Pollution Control (Northwestern Corp.) 6.125 05/01/2023 504,775
- -----------------------------------------------------------------------------------------------------------------------------
NEBRASKA--0.5%
3,730,000 NE EFA (Midland Lutheran College) 5.600 09/15/2029 3,719,370
- -----------------------------------------------------------------------------------------------------------------------------
NEVADA--1.7%
5,220,000 Clark County, NV Economic Devel.
(Alexander Dawson School at Rainbow Mountain) 5.375 05/15/2033 5,365,377
- -----------------------------------------------------------------------------------------------------------------------------
6,000,000 Las Vegas, NV Paiute Tribe, Series A 6.625 11/01/2017 6,740,640
-------------
12,106,017
- -----------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE--2.1%
495,000 Manchester, NH Hsg. & Redevel. Authority, Series B 0.000 5 01/01/2023 181,784
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 NH H&EFA (Catholic Medical Center) 6.125 07/01/2032 1,046,140
- -----------------------------------------------------------------------------------------------------------------------------
4,000,000 NH H&EFA (Franklin Pierce College) 6.050 10/01/2034 4,338,320
- -----------------------------------------------------------------------------------------------------------------------------
1,980,000 NH H&EFA (Portsmouth Christian Academy) 5.750 07/01/2023 2,131,609
- -----------------------------------------------------------------------------------------------------------------------------
6,115,000 NH H&EFA (Portsmouth Christian Academy) 5.850 07/01/2033 6,494,130
- -----------------------------------------------------------------------------------------------------------------------------
40,000 NH HE&H Facilities Authority (New Hampshire College) 6.375 01/01/2027 40,828
- -----------------------------------------------------------------------------------------------------------------------------
500,000 NH Turnpike System, Series A 6.750 11/01/2011 546,030
-------------
14,778,841
- -----------------------------------------------------------------------------------------------------------------------------
NEW JERSEY--4.6%
2,000,000 NJ EDA (Cigarette Tax) 5.500 06/15/2024 2,097,960
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 NJ EDA (Cigarette Tax) 5.500 06/15/2031 1,041,160
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EDA (Cigarette Tax) 5.750 06/15/2029 2,125,640
- -----------------------------------------------------------------------------------------------------------------------------
7,480,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.000 06/01/2037 7,106,823
- -----------------------------------------------------------------------------------------------------------------------------
9,800,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.125 06/01/2042 9,344,692
- -----------------------------------------------------------------------------------------------------------------------------
7,000,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.250 06/01/2043 6,796,370
- -----------------------------------------------------------------------------------------------------------------------------
3,250,000 NJ Transit Corp. ROLs, Series 15 1 10.281 2 09/15/2015 4,132,375
-------------
32,645,020
22 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
NEW MEXICO--2.3%
$ 1,495,000 Cabezon, NM Public Improvement District 6.300% 09/01/2034 $ 1,503,282
- -----------------------------------------------------------------------------------------------------------------------------
7,895,000 Eldorado, NM Area Water & Sanitation District 6.000 02/01/2023 7,938,975
- -----------------------------------------------------------------------------------------------------------------------------
25,000 Farmington, NM Pollution Control
(Public Service Company of New Mexico) 6.300 12/01/2016 26,917
- -----------------------------------------------------------------------------------------------------------------------------
350,000 Farmington, NM Pollution Control
(Southern California Edison Company) 5.875 06/01/2023 354,141
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 NM Hsg. Authority (Villa Del Oso Apartments) 6.250 01/01/2031 2,997,900
- -----------------------------------------------------------------------------------------------------------------------------
1,280,000 NM Hsg. Authority (Villa Del Oso Apartments) 7.500 01/01/2038 1,263,718
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 Sandoval County, NM (Santa Ana Pueblo) 7.750 07/01/2015 2,067,560
- -----------------------------------------------------------------------------------------------------------------------------
125,000 Santa Fe, NM Educational Facilities (College of Santa Fe) 5.875 10/01/2021 126,585
-------------
16,279,078
- -----------------------------------------------------------------------------------------------------------------------------
NEW YORK--0.0%
50,000 NYC GO RIBS 9.458 2 08/27/2015 50,941
- -----------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA--0.3%
95,000 Charlotte, NC Mtg. (Tryon Hills Associate) 5.875 01/01/2025 100,035
- -----------------------------------------------------------------------------------------------------------------------------
1,155,000 Kinston, NC Hsg. Authority (Kinston Towers) 1 6.750 12/01/2018 1,179,994
- -----------------------------------------------------------------------------------------------------------------------------
140,000 NC Eastern Municipal Power Agency, Series B 5.500 01/01/2017 140,304
- -----------------------------------------------------------------------------------------------------------------------------
420,000 NC Eastern Municipal Power Agency, Series B 5.500 01/01/2021 420,332
- -----------------------------------------------------------------------------------------------------------------------------
455,000 NC Eastern Municipal Power Agency, Series B 5.500 01/01/2021 455,951
- -----------------------------------------------------------------------------------------------------------------------------
20,000 NC Eastern Municipal Power Agency, Series B 6.250 01/01/2023 20,059
- -----------------------------------------------------------------------------------------------------------------------------
30,000 NC HFA (Multifamily Hsg.) 5.450 09/01/2024 30,287
-------------
2,346,962
- -----------------------------------------------------------------------------------------------------------------------------
OHIO--2.8%
490,000 Cleveland, OH Rock Glen Hsg. Assistance Corp.
(Ambleside Apartments) 7.000 06/01/2018 522,502
- -----------------------------------------------------------------------------------------------------------------------------
530,000 Cleveland-Cuyahoga County, OH Port Authority
(Myers University) 5.600 05/15/2025 537,245
- -----------------------------------------------------------------------------------------------------------------------------
10,000,000 Coshocton County, OH Solid Waste Disposal
(Stone Container Corp.) 7.875 08/01/2013 10,124,300
- -----------------------------------------------------------------------------------------------------------------------------
920,000 Glenwillow Village, OH GO 5.875 12/01/2024 994,106
- -----------------------------------------------------------------------------------------------------------------------------
1,500,000 Greene County, OH University Hsg.
(Central State University) 5.625 09/01/2032 1,568,115
- -----------------------------------------------------------------------------------------------------------------------------
40,000 OH Air Quality Devel. Authority
(Cincinnati Gas & Electric Company) 5.450 01/01/2024 40,481
- -----------------------------------------------------------------------------------------------------------------------------
25,000 OH Air Quality Devel. Authority
(Dayton Power & Light Company) 6.100 09/01/2030 26,017
- -----------------------------------------------------------------------------------------------------------------------------
180,000 OH Air Quality Devel. Authority
(Dayton Power & Light Company) 6.400 08/15/2027 180,169
- -----------------------------------------------------------------------------------------------------------------------------
90,000 OH Air Quality Devel. Authority (Ohio Edison Company) 5.950 05/15/2029 90,854
- -----------------------------------------------------------------------------------------------------------------------------
3,030,000 OH Water Devel. Authority
(Cleveland Electric Illuminating Company) 7.700 08/01/2025 3,172,501
23 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
OHIO Continued
$ 70,000 OH Water Devel. Authority
(Dayton Power & Light Company) 6.400% 08/15/2027 $ 71,782
- -----------------------------------------------------------------------------------------------------------------------------
500,000 Port of Greater Cincinnati, OH
(Public Parking Infrastructure) 6.300 02/15/2024 522,855
- -----------------------------------------------------------------------------------------------------------------------------
1,485,000 Port of Greater Cincinnati, OH
(Public Parking Infrastructure) 6.400 02/15/2034 1,540,287
- -----------------------------------------------------------------------------------------------------------------------------
400,000 Streetsboro, OH City School District GO 7.125 12/01/2010 457,080
-------------
19,848,294
- -----------------------------------------------------------------------------------------------------------------------------
OKLAHOMA--0.9%
80,000 Tulsa, OK Metropolitan Utility Authority 5.750 09/01/2025 83,039
- -----------------------------------------------------------------------------------------------------------------------------
7,745,000 Tulsa, OK Municipal Airport Trust (American Airlines) 6.250 06/01/2020 6,532,056
-------------
6,615,095
- -----------------------------------------------------------------------------------------------------------------------------
OREGON--0.0%
45,000 OR Hsg. & Community Services (Single Family Mtg.) 6.400 07/01/2018 45,845
- -----------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--4.6%
8,200,000 Allegheny County, PA HDA
(West Penn Allegheny Health System) 9.250 11/15/2030 9,536,600
- -----------------------------------------------------------------------------------------------------------------------------
5,000,000 Beaver County, PA IDA
(Cleveland Electric Illuminating Company) 7.750 07/15/2025 5,229,900
- -----------------------------------------------------------------------------------------------------------------------------
25,000 Beaver County, PA IDA (Toledo Edison Company) 7.750 05/01/2020 26,566
- -----------------------------------------------------------------------------------------------------------------------------
1,500,000 Chester County, PA H&EFA (Jenners Pond) 7.750 07/01/2034 1,555,290
- -----------------------------------------------------------------------------------------------------------------------------
6,000,000 Cumberland County, PA Municipal Authority
(Wesley Affiliated Services) 7.250 01/01/2035 6,292,620
- -----------------------------------------------------------------------------------------------------------------------------
4,000,000 Northumberland County, PA IDA (NHS Youth Services) 7.750 02/15/2029 4,044,200
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Philadelphia, PA H&HEFA
(Centralized Comprehensive Human Services) 7.250 01/01/2021 1,046,530
- -----------------------------------------------------------------------------------------------------------------------------
1,200,000 Philadelphia, PA H&HEFA
(Temple University Children's Medical Center) 5.625 06/15/2019 1,219,800
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Philadelphia, PA IDA (Baptist Home of Philadelphia) 5.500 11/15/2018 981,260
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Philadelphia, PA Redevel. Authority
(Beech Student Hsg. Complex), Series A 5.625 07/01/2023 1,072,840
- -----------------------------------------------------------------------------------------------------------------------------
1,500,000 Philadelphia, PA Redevel. Authority
(Beech Student Hsg. Complex), Series A 5.625 07/01/2028 1,577,130
-------------
32,582,736
- -----------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND--0.2%
50,000 Providence, RI HDC (Barbara Jordan Apartments) 6.750 07/01/2025 51,069
- -----------------------------------------------------------------------------------------------------------------------------
40,000 RI Hsg. & Mtg. Finance Corp.
(Homeownership Opportunity) 6.500 04/01/2027 40,047
- -----------------------------------------------------------------------------------------------------------------------------
1,500,000 Tiverton, RI Special Obligation Tax
(Mount Hope Bay Village) 6.875 05/01/2022 1,597,980
-------------
1,689,096
24 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA--0.5%
$ 55,000 Charleston County, SC COP 5.500% 12/01/2020 $ 56,059
- -----------------------------------------------------------------------------------------------------------------------------
500,000 SC Connector 2000 Association Toll Road, Series B 0.000 5 01/01/2021 198,780
- -----------------------------------------------------------------------------------------------------------------------------
10,355,000 SC Connector 2000 Association Toll Road, Series B 0.000 5 01/01/2026 3,081,130
-------------
3,335,969
- -----------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA--1.9%
6,000,000 SD Educational Enhancement Funding Corp.
Tobacco Settlement 6.500 06/01/2032 6,005,040
- -----------------------------------------------------------------------------------------------------------------------------
7,500,000 Sioux Falls, SD Health Facilities
(Rummel Memorial Home) 6.750 11/15/2033 7,631,400
-------------
13,636,440
- -----------------------------------------------------------------------------------------------------------------------------
TENNESSEE--0.7%
3,500,000 Bradley County, TN IDB (Olin Corp.) 6.625 11/01/2017 3,787,315
- -----------------------------------------------------------------------------------------------------------------------------
100,000 Hamilton County, TN IDB (Park at 58) 6.700 03/01/2021 85,336
- -----------------------------------------------------------------------------------------------------------------------------
1,500,000 Shelby County, TN HE&HF
(Cornerstone-Cameron & Stonegate) 6.000 07/01/2028 1,361,100
-------------
5,233,751
- -----------------------------------------------------------------------------------------------------------------------------
TEXAS--12.1%
15,000 Argyle, TX Independent School District GO 5.500 08/15/2026 15,914
- -----------------------------------------------------------------------------------------------------------------------------
11,390,000 Austin, TX Convention Enterprises (Convention Center) 5.750 01/01/2032 11,831,249
- -----------------------------------------------------------------------------------------------------------------------------
10,765,000 Bexar County, TX HFC (American Opportunity Hsg.) 6.750 12/01/2037 10,227,827
- -----------------------------------------------------------------------------------------------------------------------------
200,000 Bexar County, TX HFC
(American Opportunity Hsg.-Nob Hill Apartments) 6.000 06/01/2031 200,174
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Bexar County, TX HFC
(The Army Retirement Residence Foundation) 6.300 07/01/2032 1,066,720
- -----------------------------------------------------------------------------------------------------------------------------
30,000 Brazos County, TX Health Facilities
(St. Joseph Hospital & Health Center) 6.000 01/01/2019 30,332
- -----------------------------------------------------------------------------------------------------------------------------
150,000 Dallas, TX County Utility & Reclamation District 5.875 02/15/2029 152,828
- -----------------------------------------------------------------------------------------------------------------------------
65,000 Dallas, TX Hsg. Corp. (Cedar Glen Apartments) 7.750 12/01/2009 66,685
- -----------------------------------------------------------------------------------------------------------------------------
265,000 El Paso County, TX HFC
(American Village Communities), Series A 6.250 12/01/2020 275,608
- -----------------------------------------------------------------------------------------------------------------------------
285,000 El Paso County, TX HFC
(El Paso American Hsg. Foundation), Series A 6.375 12/01/2032 293,995
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Folk, TX Avenue South Transportation District 6 5.625 11/01/2031 996,880
- -----------------------------------------------------------------------------------------------------------------------------
550,000 Garza County, TX Public Facility Corp. 7.500 10/01/2019 596,041
- -----------------------------------------------------------------------------------------------------------------------------
3,730,000 Harris County, TX Toll Road RITES 1 14.145 2 08/15/2024 5,414,766
- -----------------------------------------------------------------------------------------------------------------------------
165,000 Keller, TX Independent School District GO 5.400 08/15/2023 171,631
- -----------------------------------------------------------------------------------------------------------------------------
100,000 Lewisville, TX GO 5.700 09/01/2028 104,799
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 Lewisville, TX GO 6.125 09/01/2029 3,271,050
- -----------------------------------------------------------------------------------------------------------------------------
195,000 Lubbock, TX HFC (Las Colinas Quail Creek Apartments) 6.000 07/01/2032 202,135
- -----------------------------------------------------------------------------------------------------------------------------
20,350,000 Matagorda County, TX Navigation District
(Centerpoint Energy) 8.000 05/01/2029 22,565,708
25 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
TEXAS Continued
$ 270,000 Matagorda County, TX Navigation District
(Central Power & Light Company) 6.000% 07/01/2028 $ 270,400
- -----------------------------------------------------------------------------------------------------------------------------
1,100,000 North Central, TX HFDC (Northwest Senior Hsg. Corp.) 7.000 11/15/2010 1,177,924
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 North Central, TX HFDC (Northwest Senior Hsg. Corp.) 7.250 11/15/2019 2,136,920
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 North Central, TX HFDC (Northwest Senior Hsg. Corp.) 7.500 11/15/2029 3,201,540
- -----------------------------------------------------------------------------------------------------------------------------
1,910,000 Nueces County, TX HFC (Dolphins Landing Apartments) 6.750 07/01/2020 1,931,010
- -----------------------------------------------------------------------------------------------------------------------------
1,680,000 Retama, TX Devel. Corp. (Retama Racetrack) 10.000 12/15/2019 2,531,827
- -----------------------------------------------------------------------------------------------------------------------------
5,000,000 Sabine River Authority, TX Pollution Control
(TXU Energy Company) 5.500 05/01/2022 5,448,750
- -----------------------------------------------------------------------------------------------------------------------------
4,000,000 Sabine River Authority, TX Pollution Control
(TXU Energy Company) 6.150 08/01/2022 4,461,120
- -----------------------------------------------------------------------------------------------------------------------------
445,000 TX Affordable Hsg. Corp.
(Ashton Place & Woodstock Apartments) 6.300 08/01/2033 404,483
- -----------------------------------------------------------------------------------------------------------------------------
525,000 TX Panhandle HFA (Amarillo Affordable Hsg.) 6.625 03/01/2020 546,898
- -----------------------------------------------------------------------------------------------------------------------------
1,330,000 TX Panhandle HFA (Amarillo Affordable Hsg.) 6.750 03/01/2031 1,379,423
- -----------------------------------------------------------------------------------------------------------------------------
25,000 Westador, TX Municipal Utility District GO 6.875 03/01/2009 25,639
- -----------------------------------------------------------------------------------------------------------------------------
4,750,000 Wichita County, TX HFDC
(Wichita Falls Retirement Foundation) 6.250 01/01/2028 4,754,323
- -----------------------------------------------------------------------------------------------------------------------------
25,000 Wood Glen, TX HFC (Copperwood II), Series C 7.650 07/01/2023 25,318
-------------
85,779,917
- -----------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--0.3%
1,500,000 Puerto Rico Municipal Finance Agency RITES 1 9.118 2 08/01/2015 1,929,030
- -----------------------------------------------------------------------------------------------------------------------------
UTAH--0.3%
125,000 Emery County, UT Pollution Control (Pacificorp) 5.650 11/01/2023 126,529
- -----------------------------------------------------------------------------------------------------------------------------
2,000,000 Murray City, UT Hospital RITES 1 12.645 2 05/15/2022 2,256,320
-------------
2,382,849
- -----------------------------------------------------------------------------------------------------------------------------
VERMONT--0.1%
225,000 VT EDA (Wake Robin Corp.) 6.000 03/01/2022 240,246
- -----------------------------------------------------------------------------------------------------------------------------
130,000 VT EDA (Wake Robin Corp.) 6.300 03/01/2033 138,550
-------------
378,796
- -----------------------------------------------------------------------------------------------------------------------------
VIRGINIA--4.2%
20,000 Fairfax County, VA Redevel. & Hsg. Authority
(Paul Spring Retirement Center) 6.000 12/15/2028 21,264
- -----------------------------------------------------------------------------------------------------------------------------
1,170,000 Hopewell, VA IDA (Stone Container Corp.) 8.250 05/01/2010 1,193,517
- -----------------------------------------------------------------------------------------------------------------------------
8,610,000 Hopewell, VA IDA (Stone Container Corp.) 8.250 06/01/2016 8,783,061
- -----------------------------------------------------------------------------------------------------------------------------
25,000 Louisa, VA IDA Pollution Control
(Virginia Electric & Power Company) 5.450 01/01/2024 25,164
- -----------------------------------------------------------------------------------------------------------------------------
315,000 Norton, VA IDA (Norton Community Hospital) 6.000 12/01/2022 343,085
- -----------------------------------------------------------------------------------------------------------------------------
3,000,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 5 08/15/2008 2,115,120
26 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
VIRGINIA Continued
$ 700,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000% 5 08/15/2012 $ 449,260
- -----------------------------------------------------------------------------------------------------------------------------
35,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 5 08/15/2015 19,688
- -----------------------------------------------------------------------------------------------------------------------------
2,715,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 5 08/15/2017 1,351,228
- -----------------------------------------------------------------------------------------------------------------------------
4,485,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 5 08/15/2018 2,097,859
- -----------------------------------------------------------------------------------------------------------------------------
3,155,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 5 08/15/2020 1,306,391
- -----------------------------------------------------------------------------------------------------------------------------
13,805,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 5 08/15/2021 5,395,960
- -----------------------------------------------------------------------------------------------------------------------------
11,880,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 5 08/15/2022 4,383,245
- -----------------------------------------------------------------------------------------------------------------------------
60,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 5 08/15/2024 19,439
- -----------------------------------------------------------------------------------------------------------------------------
1,150,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.000 08/15/2010 1,142,571
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.000 08/15/2011 984,390
- -----------------------------------------------------------------------------------------------------------------------------
25,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.500 08/15/2028 25,076
-------------
29,656,318
- -----------------------------------------------------------------------------------------------------------------------------
WASHINGTON--1.5%
2,500,000 King County, WA Sewer RITES 1 13.145 2 01/01/2024 3,329,300
- -----------------------------------------------------------------------------------------------------------------------------
100,000 Port Camas, WA Public Industrial Corp.
(James River Corp. of VA) 6.700 04/01/2023 100,168
- -----------------------------------------------------------------------------------------------------------------------------
20,000 Port of Seattle, WA , Series A 5.500 09/01/2021 21,013
- -----------------------------------------------------------------------------------------------------------------------------
2,200,000 Vancouver, WA Downtown Redevel. Authority
(Conference Center) 5.250 01/01/2034 2,237,488
- -----------------------------------------------------------------------------------------------------------------------------
3,250,000 Vancouver, WA Downtown Redevel. Authority
(Conference Center) 6.000 01/01/2034 3,488,615
- -----------------------------------------------------------------------------------------------------------------------------
1,350,000 WA Hsg. Finance Commission
(Nickerson Area Properties) 5.300 01/01/2028 1,379,349
-------------
10,555,933
- -----------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA--0.5%
1,540,000 West Liberty State College, WV, Series A 6.000 06/01/2023 1,591,297
- -----------------------------------------------------------------------------------------------------------------------------
1,695,000 West Liberty State College, WV, Series A 6.125 06/01/2028 1,750,613
-------------
3,341,910
27 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
WISCONSIN--0.8%
$ 2,275,000 WI H&EFA (Hess Memorial Hospital Association) 7.875% 11/01/2022 $ 2,394,733
- -----------------------------------------------------------------------------------------------------------------------------
870,000 WI H&EFA (Three Pillars Senior Living) 5.500 08/15/2034 873,306
- -----------------------------------------------------------------------------------------------------------------------------
1,075,000 WI H&EFA (WMA, MHCC, MVS Obligated Group) 5.600 08/15/2023 1,106,938
- -----------------------------------------------------------------------------------------------------------------------------
1,000,000 WI H&EFA (WMA, MHCC, MVS Obligated Group) 5.750 08/15/2026 1,027,040
- -----------------------------------------------------------------------------------------------------------------------------
130,000 WI Hsg. & Economic Devel. Authority, Series A 6.850 11/01/2012 130,206
-------------
5,532,223
- -----------------------------------------------------------------------------------------------------------------------------
WYOMING--1.4%
9,500,000 Sweetwater County, WY Pollution Control
(Idaho Power Company) 6.050 07/15/2026 10,008,345
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $682,232,188)--102.1% 724,104,285
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(2.1%) (14,938,045)
-------------
NET ASSETS--100.0% $709,166,240
=============
<FN>
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Illiquid security. The aggregate value of illiquid securities as of January
31, 2005 was $64,114,178, which represents 9.04% of the Fund's net assets. See
Note 5 of Notes to Financial Statements.
2. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.
3. Represents the current interest rate for a variable or increasing rate
security.
4. Issue is in default. See Note 1 of Notes to Financial Statements.
5. Represents a zero coupon bond.
6. When-issued security or forward commitment to be delivered and settled after
January 31, 2005. See Note 1 of Notes to Financial Statements.
7. Non-income producing security.
</FN>
28 | OPPENHEIMER AMT-FREE MUNICIPALS
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
ADA Atlanta Development Authority
BFC Business Finance Corp.
CAU Clark Atlanta University
CDA Communities Development Authority
COP Certificates of Participation
DFA Development Finance Authority
EDA Economic Development Authority
EDC Economic Development Corporation
EF&CD Environmental Facilities and Community Development
EFA Educational Facilities Authority
FHA Federal Housing Agency
GO General Obligation
H&EFA Health and Educational Facilities Authority
H&HEFA Hospitals and Higher Education Facilities Authority
HDA Hospital Development Authority
HDC Housing Development Corp.
HE&H Higher Educational and Health
HE&HF Higher Educational and Housing Facilities
HF&D Housing Finance and Development
HFA Housing Finance Agency/Authority
HFC Housing Finance Corp.
HFDC Health Facilities Development Corp.
IDA Industrial Development Agency
IDB Industrial Development Board
INFLOS Inverse Floating Rate Securities
MHCC Masonic Health Care Center
MVS Masonic Village on the Square
NYC New York City
RIBS Residual Interest Bonds
RITES Residual Interest Tax Exempt Security
ROLs Residual Option Longs
SAVRS Select Auction Variable Rate Securities
TASC Tobacco Settlement Asset-Backed Bonds
WMA Wisconsin Masonic Home
- --------------------------------------------------------------------------------
SUMMARY OF RATINGS January 31, 2005
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY RATINGS CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
RATINGS PERCENT
- --------------------------------------------------------------------------------
AAA 9.9%
AA 2.1
A 20.3
BBB 44.0
BB 3.0
B 2.5
CCC 1.5
Not Rated 16.7
--------
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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
January 31, 2005
- ---------------------------------------------------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------------------------------------------------
Investments, at value (cost $682,232,188)--see accompanying statement of investments $724,104,285
- ---------------------------------------------------------------------------------------------------------
Cash 428,388
- ---------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 11,038,931
Investments sold 6,399,664
Shares of beneficial interest sold 1,994,767
Other 25,914
--------------
Total assets 743,991,949
- ---------------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Payable to conduit lender (see Note 6) 31,000,000
Investments purchased (including $1,807,516 purchased on a when-issued basis
or forward commitment) 2,367,059
Dividends 685,142
Shares of beneficial interest redeemed 373,679
Distribution and service plan fees 138,491
Trustees' compensation 134,351
Shareholder communications 44,169
Transfer and shareholder servicing agent fees 32,919
Interest expense 23,600
Other 26,299
--------------
Total liabilities 34,825,709
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $709,166,240
==============
- ---------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 70,855
- ---------------------------------------------------------------------------------------------------------
Additional paid-in capital 677,970,846
- ---------------------------------------------------------------------------------------------------------
Accumulated net investment income 5,564,194
- ---------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (16,311,752)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 41,872,097
--------------
NET ASSETS $709,166,240
==============
30 | OPPENHEIMER AMT-FREE MUNICIPALS
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ---------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$628,678,139 and 62,789,186 shares of beneficial interest outstanding) $10.01
Maximum offering price per share (net asset value plus sales charge of 4.75%
of offering price) $10.51
- ---------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $44,681,360
and 4,477,355 shares of beneficial interest outstanding) $ 9.98
- ---------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $35,806,741
and 3,588,674 shares of beneficial interest outstanding) $ 9.98
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2005
- ------------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------
Interest $ 22,691,784
- ------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------
Management fees 1,774,681
- ------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 692,689
Class B 228,597
Class C 160,425
- ------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 182,206
Class B 15,711
Class C 11,027
- ------------------------------------------------------------------------------------
Shareholder communications:
Class A 30,195
Class B 2,883
Class C 1,541
- ------------------------------------------------------------------------------------
Interest expense 223,960
- ------------------------------------------------------------------------------------
Custodian fees and expenses 19,674
- ------------------------------------------------------------------------------------
Trustees' compensation 11,296
- ------------------------------------------------------------------------------------
Other 25,127
-------------
Total expenses 3,380,012
Less reduction to custodian expenses (1,352)
-------------
Net expenses 3,378,660
- ------------------------------------------------------------------------------------
NET INVESTMENT INCOME 19,313,124
- ------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- ------------------------------------------------------------------------------------
Net realized gain on investments 1,750,529
- ------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 30,700,922
- ------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $51,764,575
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2005 JULY 31,
(UNAUDITED) 2004
- ----------------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income $ 19,313,124 $ 39,492,433
- ----------------------------------------------------------------------------------------------------
Net realized gain 1,750,529 6,203,618
- ----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 30,700,922 12,342,456
--------------------------------------
Net increase in net assets resulting from operations 51,764,575 58,038,507
- ----------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (16,847,027) (31,442,955)
Class B (1,117,483) (2,674,280)
Class C (778,874) (1,232,388)
- ----------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest
transactions:
Class A 31,295,258 (4,849,786)
Class B (4,591,717) (18,310,245)
Class C 6,468,048 3,484,973
- ----------------------------------------------------------------------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------------
Total increase 66,192,780 3,013,826
- ----------------------------------------------------------------------------------------------------
Beginning of period 642,973,460 639,959,634
--------------------------------------
End of period (including accumulated net investment income
of $5,564,194 and $4,994,454, respectively) $709,166,240 $642,973,460
======================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER AMT-FREE MUNICIPALS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2005 JULY 31,
CLASS A (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.53 $9.19 $9.48 $9.57 $9.35 $10.02
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .29 1 .59 .57 .50 .52 .52
Net realized and unrealized gain (loss) .46 .28 (.32) (.10) .22 (.61)
--------------------------------------------------------------------------------
Total from investment operations .75 .87 .25 .40 .74 (.09)
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.27) (.53) (.54) (.49) (.52) (.52)
Distributions from net realized gain -- -- -- -- -- (.06)
--------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.27) (.53) (.54) (.49) (.52) (.58)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.01 $9.53 $9.19 $9.48 $9.57 $9.35
================================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 8.02% 9.60% 2.46% 4.39% 8.03% (0.85)%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $628,678 $568,156 $553,344 $568,935 $584,325 $482,152
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $595,729 $567,291 $569,881 $568,951 $531,286 $515,007
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.78% 6.18% 5.82% 5.35% 5.38% 5.54%
Total expenses 0.91% 0.92% 0.93% 0.88% 0.85% 4 0.90% 4
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5,6,7 0.88% 0.85% 4 N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 8% 33% 99% 31% 20% 14%
<FN>
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an initial investment on the business day before the first day of the
fiscal period, with all dividends and distributions reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Sales charges are not
reflected in the total returns. Total returns are not annualized for periods of
less than one full year. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. Voluntary waiver of management fees less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER AMT-FREE MUNICIPALS
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2005 JULY 31,
CLASS B (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $9.50 $9.17 $9.45 $9.55 $9.33 $10.00
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .25 1 .52 .49 .43 .45 .43
Net realized and unrealized gain (loss) .47 .27 (.31) (.11) .21 (.60)
-------------------------------------------------------------------------------
Total from investment operations .72 .79 .18 .32 .66 (.17)
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.24) (.46) (.46) (.42) (.44) (.44)
Distributions from net realized gain -- -- -- -- -- (.06)
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.24) (.46) (.46) (.42) (.44) (.50)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.98 $9.50 $9.17 $9.45 $9.55 $9.33
===============================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 7.63% 8.68% 1.80% 3.50% 7.23% (1.62)%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $44,681 $47,024 $63,104 $72,241 $76,880 $57,204
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $45,657 $55,864 $67,721 $73,571 $65,563 $70,072
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.02% 5.42% 5.04% 4.58% 4.60% 4.75%
Total expenses 1.68% 1.69% 1.69% 1.65% 1.62% 4 1.67% 4
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5,6,7 1.64% 1.62% 4 N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 8% 33% 99% 31% 20% 14%
<FN>
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an initial investment on the business day before the first day of the
fiscal period, with all dividends and distributions reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Sales charges are not
reflected in the total returns. Total returns are not annualized for periods of
less than one full year. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. Voluntary waiver of management fees less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER AMT-FREE MUNICIPALS
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2005 JULY 31,
CLASS C (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $9.50 $9.16 $9.45 $9.55 $9.33 $10.00
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .25 1 .51 .49 .43 .44 .44
Net realized and unrealized gain (loss) .47 .29 (.32) (.11) .22 (.61)
-------------------------------------------------------------------------------
Total from investment operations .72 .80 .17 .32 .66 (.17)
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.24) (.46) (.46) (.42) (.44) (.44)
Distributions from net realized gain -- -- -- -- -- (.06)
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.24) (.46) (.46) (.42) (.44) (.50)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.98 $9.50 $9.16 $9.45 $9.55 $9.33
===============================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 7.63% 8.79% 1.67% 3.50% 7.23% (1.62)%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $35,807 $27,793 $23,511 $20,491 $17,134 $12,173
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $31,948 $25,810 $22,345 $17,776 $14,506 $14,497
Ratios to average net assets: 3
Net investment income 4.98% 5.39% 5.04% 4.57% 4.60% 4.76%
Total expenses 1.68% 1.70% 1.71% 1.65% 1.62% 4 1.67% 4
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5,6,7 1.66% 1.62% 4 N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 8% 33% 99% 31% 20% 14%
<FN>
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an initial investment on the business day before the first day of the
fiscal period, with all dividends and distributions reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Sales charges are not
reflected in the total returns. Total returns are not annualized for periods of
less than one full year. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. Voluntary waiver of management fees less than 0.01%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer AMT-Free Municipals (the Fund), is registered under the Investment
Company Act of 1940, as amended, as an open end management investment company.
The Fund's investment objective is to seek as high a level of current interest
income exempt from federal income taxes as is available from investing in
municipal securities, while attempting to preserve capital. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ 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 sixty 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).
37 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment can take place up to ten days or more after the trade date.
Normally the settlement date occurs within six months after the trade date;
however, the Fund may, from time to time, purchase securities whose settlement
date extends six months or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. The purchase of securities on a when-issued
basis or forward commitment may increase the volatility of the Fund's net asset
value to the extent the Fund executes such transactions while remaining
substantially fully invested. The Fund may also sell securities that it
purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of January 31, 2005, the Fund had purchased
$1,807,516 of securities on a when-issued basis or forward commitment.
- --------------------------------------------------------------------------------
INVERSE FLOATING RATE SECURITIES. The Fund invests in inverse floating rate
securities that pay interest at a rate that varies inversely with short-term
interest rates. Certain of these securities may be leveraged, whereby the
interest rate varies inversely at a multiple of the change in short-term rates.
As interest rates rise, inverse floaters produce less current income. The price
of such securities is more volatile than comparable fixed rate securities. The
Fund will invest no more than 20% of its total assets in inverse floaters.
Inverse floaters amount to $62,625,182 as of January 31, 2005. Including the
effect of leverage, inverse floaters represent 16.13% of the Fund's total
assets as of January 31, 2005.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed-income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default. As of January 31, 2005, securities with an
aggregate market value of $54,060, representing 0.01% of the Fund's net assets,
were in default.
- --------------------------------------------------------------------------------
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
38 | OPPENHEIMER AMT-FREE MUNICIPALS
not offset by capital loss carryforwards, if any, to shareholders, therefore,
no federal income or excise tax provision is required.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund.
As of January 31, 2005, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of $18,344,315 expiring by
2013. This estimated capital loss carryforward represents carryforward as of
the end of the last fiscal year, increased for losses deferred under tax
accounting rules to the current fiscal year and is increased or decreased by
capital losses or gains realized in the first six months of the current fiscal
year. As of January 31, 2005, it is estimated that the Fund will utilize
$1,750,529 of capital loss carryforward to offset realized capital gains.
During the year ended July 31, 2004, the Fund did utilize $6,159,705 of capital
loss carryforward to offset realized capital gains.
As of July 31, 2004, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
EXPIRING
----------------------
2008 $ 2,051,495
2009 506,572
2010 17,536,777
-----------
Total $20,094,844
===========
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for
the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the six months
ended January 31, 2005, the Fund's projected benefit obligations were increased
by $3,224 and payments of $9,860 were made to retired trustees, resulting in an
accumulated liability of $113,761 as of January 31, 2005.
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.
39 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts at a rate equal to the
Federal Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item,
if applicable, represents earnings on cash balances maintained by the Fund
during the period. Such interest expense and other custodian fees may be paid
with these earnings.
- --------------------------------------------------------------------------------
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:
SIX MONTHS ENDED JANUARY 31, 2005 YEAR ENDED JULY 31, 2004
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------
CLASS A
Sold 5,627,294 $ 55,251,398 8,210,670 $ 78,148,633
Dividends and/or
distributions reinvested 1,128,222 11,087,695 2,229,147 21,257,888
Redeemed (3,581,053) (35,043,835) (11,015,574) (104,256,307)
-------------------------------------------------------
Net increase (decrease) 3,174,463 $ 31,295,258 (575,757) $ (4,849,786)
=======================================================
40 | OPPENHEIMER AMT-FREE MUNICIPALS
SIX MONTHS ENDED JANUARY 31, 2005 YEAR ENDED JULY 31, 2004
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------
CLASS B
Sold 356,969 $ 3,486,118 723,519 $ 6,876,990
Dividends and/or
distributions reinvested 66,195 648,252 164,028 1,558,967
Redeemed (896,058) (8,726,087) (2,822,542) (26,746,202)
-------------------------------------------------------
Net decrease (472,894) $(4,591,717) (1,934,995) $(18,310,245)
=======================================================
- -----------------------------------------------------------------------------------
CLASS C
Sold 947,937 $ 9,260,620 1,005,569 $ 9,584,113
Dividends and/or
distributions reinvested 54,970 538,591 94,290 896,886
Redeemed (340,273) (3,331,163) (739,420) (6,996,026)
-------------------------------------------------------
Net increase 662,634 $ 6,468,048 360,439 $ 3,484,973
=======================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended January 31, 2005, were
$81,887,828 and $46,395,210, respectively.
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.60% of the first $200 million of average annual net assets,
0.55% of the next $100 million, 0.50% of the next $200 million, 0.45% of the
next $250 million, 0.40% of the next $250 million, and 0.35% of average annual
net assets over $1 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the six months ended January 31, 2005, the
Fund paid $211,613 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.
41 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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 January 31, 2005 for Class B and Class C shares were $1,415,668 and
$663,352, respectively. Fees incurred by the Fund under the plans are detailed
in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption
proceeds prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------
January 31, 2005 $123,217 $16,802 $71,021 $2,793
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. OFS has voluntarily agreed to limit transfer
and shareholder servicing agent fees for all classes to 0.35% of average annual
net assets per class. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
5. ILLIQUID SECURITIES
As of January 31, 2005, 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 10% of its net assets (determined at the time of
purchase and reviewed periodically) in illiquid securities.
- --------------------------------------------------------------------------------
6. BORROWINGS
The Fund can borrow money from banks in amounts up to one-third of its total
assets (including the amount borrowed) less all liabilities and indebtedness
other than borrowings to purchase portfolio securities, to meet redemption
obligations or for temporary
42 | OPPENHEIMER AMT-FREE MUNICIPALS
and emergency purposes. The purchase of securities with borrowed funds creates
leverage in the Fund. Until terminated on January 21, 2005, the Fund had
entered into an agreement which enabled it to participate with certain other
Oppenheimer funds in a committed, unsecured line of credit with a bank, which
permitted borrowings up to $540 million, collectively. Interest was charged to
each fund, based on its borrowings, at a rate equal to the Federal Funds Rate
plus 0.75%. The Fund also paid a commitment fee equal to its pro rata share of
the average unutilized amount of the credit facility at a rate of 0.09% per
annum.
Effective January 21, 2005 the Fund entered into a Revolving Credit and
Security Agreement (the "Agreement") with a conduit lender and a bank which
enables it to participate with certain other Oppenheimer funds in a committed,
secured borrowing facility that permits borrowings of up to $800 million,
collectively. To secure the loan, the Fund pledges investment securities in
accordance with the terms of the Agreement. Interest is charged to the Fund,
based on its borrowings, at current commercial paper issuance rates (2.4038% as
of January 31, 2005). The Fund pays additional fees of 0.30% per annum on its
outstanding borrowings to manage and administer the facility and is allocated
its pro-rata share of a 0.13% per annum commitment fee for a liquidity backstop
facility with respect to the $800 million facility size.
For the six month period ended January 31, 2005, the average daily loan
balance was $16,622,283 at an average daily interest rate of 2.607%. The Fund
had borrowings outstanding of $31,000,000 at January 31, 2005 at an interest
rate of 2.4038%. The Fund had gross borrowings and gross loan repayments of
$84,500,000 and $85,300,000, respectively, during the six months ended January
31, 2005. The maximum amount of borrowings outstanding at any month-end during
the six month period ended January 31, 2005 was $33,700,000. The Fund paid
$4,257 in fees and $148,274 in interest during the six months ended January 31,
2005.
- --------------------------------------------------------------------------------
7. LITIGATION
A consolidated amended complaint has been filed as putative derivative and
class actions against the Manager, OFS and the Distributor (collectively, the
"Oppenheimer defendants"), as well as 51 of the Oppenheimer funds (as "Nominal
Defendants") including the Fund, 31 present and former Directors or Trustees
and 9 present and former officers of the funds. This complaint, initially filed
in the U.S. District Court for the Southern District of New York on January 10,
2005 and amended on March 4, 2005, consolidates into a single action and amends
six individual previously-filed putative derivative and class action
complaints. Like those prior complaints, the complaint alleges 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 assets of the funds to make those payments in violation of the
Investment Company Act of 1940 and the Investment Advisers Act of 1940. Also,
like those prior complaints, the complaint further alleges that by permitting
and/or participating in those actions, the Directors/Trustees and the
43 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. LITIGATION Continued
Officers breached their fiduciary duties to shareholders of the funds under the
Investment Company Act of 1940 and at common law. The complaint seeks
unspecified compensatory and punitive damages, rescission of the funds'
investment advisory agreements, an accounting of all fees paid, and an award of
attorneys' fees and litigation expenses.
The Oppenheimer defendants believe that the allegations contained in the
Complaints are without merit and that they, the funds named as Nominal
Defendants, and the Directors/Trustees of those funds have meritorious defenses
against the claims asserted. The Oppenheimer defendants intend to defend these
lawsuits vigorously and to contest any claimed liability. The Oppenheimer
defendants believe that it is premature to render any opinion as to the
likelihood of an outcome unfavorable to them and that no estimate can yet be
made with any degree of certainty as to the amount or range of any potential
loss.
44 | OPPENHEIMER AMT-FREE MUNICIPALS
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 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 voting record is available (i) without charge, upon
request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form
N-PX filing on the SEC's website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC for
the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied 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.
45 | OPPENHEIMER AMT-FREE MUNICIPALS
ITEM 2. CODE OF ETHICS
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
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-3(c) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(c)) as of January 31, 2005,
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)
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer AMT Free Municipals
By: /s/John V. Murphy
-----------------
John V. Murphy
Chief Executive Officer
Date: March 17, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/John V. Murphy
-----------------
John V. Murphy
Chief Executive Officer
Date: March 17, 2005
By: /s/Brian W. Wixted
------------------
Brian W. Wixted
Chief Financial Officer
Date: March 17, 2005