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 811-5586
Oppenheimer California Municipal Fund
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(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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Tobacco 28.4%
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Special Tax 22.8
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Special Assessment 6.8
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Pollution Control 6.5
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Hospital/Health Care 3.8
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Education 3.8
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Marine/Aviation Facilities 3.2
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Municipal Leases 3.1
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General Obligation 3.0
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Airlines 2.8
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2005, and are based on total value of investments.
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[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL]
AAA 11.0%
AA 0.8
A 4.4
BBB 61.9
BB 0.2
B 0.7
CCC 2.8
Not Rated 18.2
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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12 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
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 CALIFORNIA
MUNICIPAL FUND. 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 11/3/88. 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 5/3/93. 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 "since inception" 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 11/1/95. 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.
13 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, 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
14 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
the Statement of Additional Information). Therefore, the "hypothetical" lines of
the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(8/1/04) (1/31/05) JANUARY 31, 2005
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,108.20 $4.83
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,020.56 4.63
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,103.90 8.92
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,016.69 8.55
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,104.20 8.92
- --------------------------------------------------------------------------------
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
- ------------------------------------
Class A 0.91%
- ------------------------------------
Class B 1.68
- ------------------------------------
Class C 1.68
15 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS January 31, 2005 / Unaudited
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES--99.8%
- ------------------------------------------------------------------------------------------------------------------
CALIFORNIA--87.8%
$ 1,000,000 ABAG Finance Authority for NonProfit Corporations
(Schools of Sacred Heart) 6.450% 06/01/2030 $ 1,069,470
- ------------------------------------------------------------------------------------------------------------------
90,000 ABAG Finance Authority for NonProfit
Corporations COP 6.000 08/15/2020 93,161
- ------------------------------------------------------------------------------------------------------------------
450,000 ABAG Finance Authority for NonProfit Corporations
COP (American Baptist Homes of the West) 5.750 10/01/2017 451,638
- ------------------------------------------------------------------------------------------------------------------
250,000 ABAG Finance Authority for NonProfit Corporations
COP (Lytton Gardens) 6.000 02/15/2019 268,578
- ------------------------------------------------------------------------------------------------------------------
440,000 ABAG Finance Authority for NonProfit Corporations
COP (O'Connor Woods) 6.200 11/01/2029 469,282
- ------------------------------------------------------------------------------------------------------------------
4,300,000 ABAG Finance Authority for NonProfit Corporations
COP (Redwood Senior Homes & Services) 6.125 11/15/2032 4,565,181
- ------------------------------------------------------------------------------------------------------------------
55,000 Adelanto Improvement Agency, Series B 5.500 12/01/2023 56,078
- ------------------------------------------------------------------------------------------------------------------
5,910,000 Agua Mansa Industrial Growth Association Special Tax 6.500 09/01/2033 6,034,110
- ------------------------------------------------------------------------------------------------------------------
4,000,000 Anaheim Public Financing Authority RITES 1 10.920 2 12/28/2018 4,998,040
- ------------------------------------------------------------------------------------------------------------------
2,500,000 Azusa Special Tax Community Facilities District
(Mountain Cove) 6.000 09/01/2032 2,605,600
- ------------------------------------------------------------------------------------------------------------------
2,875,000 Beaumont Financing Authority, Series D 5.800 09/01/2035 2,905,044
- ------------------------------------------------------------------------------------------------------------------
1,500,000 Beaumont Financing Authority, Series A 5.750 09/01/2034 1,522,095
- ------------------------------------------------------------------------------------------------------------------
5,000,000 Beaumont Financing Authority, Series B 6.000 09/01/2034 5,048,450
- ------------------------------------------------------------------------------------------------------------------
1,500,000 Beaumont Financing Authority, Series B 6.000 09/01/2034 1,528,125
- ------------------------------------------------------------------------------------------------------------------
5,400,000 CA CDA (Berkeley Montessori School) 7.250 10/01/2033 5,604,012
- ------------------------------------------------------------------------------------------------------------------
2,000,000 CA CDA (East Valley Tourist) 9.250 10/01/2020 2,198,160
- ------------------------------------------------------------------------------------------------------------------
7,600,000 CA CDA (East Valley Tourist) 11.000 10/01/2020 7,716,280
- ------------------------------------------------------------------------------------------------------------------
5,000,000 CA CDA (John F. Kennedy University) 6.750 10/01/2033 4,841,450
- ------------------------------------------------------------------------------------------------------------------
6,000,000 CA CDA (Marin Montessori School) 7.000 10/01/2033 6,125,160
- ------------------------------------------------------------------------------------------------------------------
1,400,000 CA CDA (Napa Valley Hospice) 7.000 01/01/2034 1,437,282
- ------------------------------------------------------------------------------------------------------------------
1,650,000 CA CDA (Notre Dame de Namur University) 6.500 10/01/2023 1,637,493
- ------------------------------------------------------------------------------------------------------------------
1,635,000 CA CDA (Notre Dame de Namur University) 6.625 10/01/2033 1,619,468
- ------------------------------------------------------------------------------------------------------------------
1,645,000 CA County Tobacco Securitization Agency (TASC) 5.750 06/01/2027 1,611,442
- ------------------------------------------------------------------------------------------------------------------
4,000,000 CA County Tobacco Securitization Agency (TASC) 5.750 06/01/2029 3,897,440
- ------------------------------------------------------------------------------------------------------------------
6,230,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2027 6,055,934
- ------------------------------------------------------------------------------------------------------------------
9,000,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2035 8,496,000
- ------------------------------------------------------------------------------------------------------------------
240,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2043 225,614
- ------------------------------------------------------------------------------------------------------------------
1,250,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2043 1,175,075
- ------------------------------------------------------------------------------------------------------------------
10,400,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2035 10,050,040
- ------------------------------------------------------------------------------------------------------------------
20,900,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2042 20,012,377
- ------------------------------------------------------------------------------------------------------------------
10,000,000 CA County Tobacco Securitization Agency (TASC) 6.125 06/01/2038 9,769,900
- ------------------------------------------------------------------------------------------------------------------
25,000 CA Department of Veterans Affairs Home Purchase 5.200 12/01/2027 25,060
- ------------------------------------------------------------------------------------------------------------------
65,000 CA Department of Veterans Affairs Home Purchase 5.500 12/01/2019 69,606
16 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 190,000 CA EFA (Carnegie Institution of Washington) 5.600% 10/01/2023 $ 192,322
- ----------------------------------------------------------------------------------------------------------------
10,000 CA EFA (College and University Financing) 6.250 06/01/2018 10,060
- ----------------------------------------------------------------------------------------------------------------
1,000,000 CA EFA (Western University Health Sciences) 6.000 10/01/2032 1,049,000
- ----------------------------------------------------------------------------------------------------------------
100,000 CA GO 5.150 10/01/2019 101,418
- ----------------------------------------------------------------------------------------------------------------
125,000 CA GO 5.500 04/01/2019 125,620
- ----------------------------------------------------------------------------------------------------------------
25,000 CA GO 5.500 03/01/2020 25,308
- ----------------------------------------------------------------------------------------------------------------
50,000 CA GO 5.500 10/01/2022 50,193
- ----------------------------------------------------------------------------------------------------------------
200,000 CA GO 6.250 10/01/2019 200,620
- ----------------------------------------------------------------------------------------------------------------
1,070,000 CA Golden State Tobacco Securitization Corp. 6.250 06/01/2033 1,074,986
- ----------------------------------------------------------------------------------------------------------------
37,215,000 CA Golden State Tobacco Securitization Corp. 6.625 06/01/2040 37,613,573
- ----------------------------------------------------------------------------------------------------------------
830,000 CA Golden State Tobacco Securitization Corp. 6.750 06/01/2039 844,741
- ----------------------------------------------------------------------------------------------------------------
1,350,000 CA Golden State Tobacco Securitization Corp. 7.800 06/01/2042 1,502,226
- ----------------------------------------------------------------------------------------------------------------
2,000,000 CA Golden State Tobacco Securitization Corp. 7.900 06/01/2042 2,238,440
- ----------------------------------------------------------------------------------------------------------------
2,810,000 CA Golden State Tobacco Securitization Corp. (TASC) 7.875 06/01/2042 3,140,484
- ----------------------------------------------------------------------------------------------------------------
150,000 CA Golden State Tobacco Securitization Corp. (TASC) 7.875 06/01/2042 167,642
- ----------------------------------------------------------------------------------------------------------------
7,000,000 CA Golden State Tobacco Securitization Corp. RITES 1 10.953 2 06/01/2043 8,467,200
- ----------------------------------------------------------------------------------------------------------------
10,000 CA Health Facilities Financing Authority
(Sisters of Providence) 6.400 10/01/2005 10,029
- ----------------------------------------------------------------------------------------------------------------
600,000 CA Health Facilities Financing Authority
(Small Facilities Loan), Series B 7.400 04/01/2014 616,356
- ----------------------------------------------------------------------------------------------------------------
25,000 CA HFA (Multifamily Hsg.), Series A 5.900 02/01/2028 25,837
- ----------------------------------------------------------------------------------------------------------------
675,000 CA HFA (Single Family Mtg.), Series A-2 6.450 08/01/2025 685,118
- ----------------------------------------------------------------------------------------------------------------
30,000 CA HFA, Series A 5.600 08/01/2011 31,184
- ----------------------------------------------------------------------------------------------------------------
110,000 CA HFA, Series B 5.650 08/01/2014 111,230
- ----------------------------------------------------------------------------------------------------------------
300,000 CA HFA, Series B 7.125 08/01/2024 315,027
- ----------------------------------------------------------------------------------------------------------------
520,000 CA HFA, Series B-1 5.600 08/01/2017 543,546
- ----------------------------------------------------------------------------------------------------------------
500,000 CA Pollution Control Financing Authority
(Browning-Ferris Industries) 6.875 11/01/2027 505,100
- ----------------------------------------------------------------------------------------------------------------
975,000 CA Pollution Control Financing Authority
(San Diego Gas & Electric Company) 5.850 06/01/2021 980,353
- ----------------------------------------------------------------------------------------------------------------
145,000 CA Pollution Control Financing Authority
(San Diego Gas & Electric Company) 5.850 06/01/2021 146,415
- ----------------------------------------------------------------------------------------------------------------
4,660,000 CA Pollution Control Financing Authority
(Southern California Edison Company) 6.400 12/01/2024 4,670,532
- ----------------------------------------------------------------------------------------------------------------
800,000 CA Pollution Control Financing Authority
(Southern California Edison Company) 6.400 12/01/2024 819,600
- ----------------------------------------------------------------------------------------------------------------
300,000 CA Pollution Control Financing Authority
(Southern California Edison Company) 6.400 12/01/2024 303,903
- ----------------------------------------------------------------------------------------------------------------
2,000,000 CA Public Works (Department of Corrections) 5.500 01/01/2017 2,094,880
- ----------------------------------------------------------------------------------------------------------------
10,000 CA Public Works (Department of Corrections) 5.500 06/01/2019 10,222
- ----------------------------------------------------------------------------------------------------------------
15,000 CA Public Works (State Universities) 5.500 12/01/2018 15,173
17 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 50,000 CA Public Works (State Universities) 5.500% 06/01/2019 $ 50,508
- ------------------------------------------------------------------------------------------------------------------
50,000 CA Public Works (State Universities) 5.500 06/01/2021 50,485
- ------------------------------------------------------------------------------------------------------------------
415,000 CA Public Works (State Universities) 5.500 06/01/2021 419,021
- ------------------------------------------------------------------------------------------------------------------
370,000 CA Public Works (State Universities) 5.500 06/01/2021 372,549
- ------------------------------------------------------------------------------------------------------------------
505,000 CA Public Works (Various California Universities Project) 5.500 06/01/2019 513,954
- ------------------------------------------------------------------------------------------------------------------
5,000 CA Rural Home Mtg. Finance Authority
(Single Family Mtg.), Series B 7.750 09/01/2026 5,029
- ------------------------------------------------------------------------------------------------------------------
330,000 CA Rural Home Mtg. Finance Authority
(Single Family Mtg.), Series D 6.700 05/01/2029 333,577
- ------------------------------------------------------------------------------------------------------------------
265,000 CA Statewide CDA (CA Odd Fellow Hsg.) 5.500 10/01/2023 267,165
- ------------------------------------------------------------------------------------------------------------------
855,000 CA Statewide CDA (Citrus Gardens Apartments) 6.500 07/01/2032 878,247
- ------------------------------------------------------------------------------------------------------------------
1,430,000 CA Statewide CDA (Citrus Gardens Apartments) 9.000 07/01/2032 1,429,900
- ------------------------------------------------------------------------------------------------------------------
5,000,000 CA Statewide CDA (Fairfield Apartments) 7.250 01/01/2035 5,098,700
- ------------------------------------------------------------------------------------------------------------------
1,475,000 CA Statewide CDA (Quail Ridge Apartments) 6.500 07/01/2032 1,486,756
- ------------------------------------------------------------------------------------------------------------------
2,110,000 CA Statewide CDA (Quail Ridge Apartments) 9.000 07/01/2032 2,040,180
- ------------------------------------------------------------------------------------------------------------------
1,975,000 CA Statewide CDA (Sonoma Country Day School) 6.000 01/01/2029 1,950,194
- ------------------------------------------------------------------------------------------------------------------
4,000,000 CA Statewide CDA (Turning Point) 6.500 11/01/2031 4,159,760
- ------------------------------------------------------------------------------------------------------------------
7,800,000 CA Statewide CDA COP
(Cedars-Sinai Medical Center) INFLOS 1 8.843 2 11/01/2015 7,969,494
- ------------------------------------------------------------------------------------------------------------------
7,000,000 CA Statewide CDA COP
(Pride Industries/Pride Industries One Obligated Group) 7.250 11/01/2029 7,352,310
- ------------------------------------------------------------------------------------------------------------------
2,000,000 CA Statewide CDA COP (Windward School) 6.900 09/01/2023 2,097,760
- ------------------------------------------------------------------------------------------------------------------
4,500,000 CA Statewide CDA COP INFLOS 9.293 2 10/01/2011 5,599,440
- ------------------------------------------------------------------------------------------------------------------
5,000,000 CA Statewide Financing Authority Tobacco Settlement
(TASC) 6.000 05/01/2037 4,800,200
- ------------------------------------------------------------------------------------------------------------------
11,720,000 CA Statewide Financing Authority Tobacco Settlement
(TASC) 6.000 05/01/2043 11,228,815
- ------------------------------------------------------------------------------------------------------------------
30,000,000 CA Statewide Financing Authority Tobacco Settlement
(TASC) 6.000 05/01/2043 28,742,700
- ------------------------------------------------------------------------------------------------------------------
3,935,000 CA Valley Health System COP 6.875 05/15/2023 3,947,395
- ------------------------------------------------------------------------------------------------------------------
75,000 CA Valley Health System, Series A 6.500 05/15/2025 78,162
- ------------------------------------------------------------------------------------------------------------------
1,500,000 CA Veterans GO, Series B 5.450 12/01/2017 1,552,515
- ------------------------------------------------------------------------------------------------------------------
10,000 CA Veterans GO, Series BH 5.500 12/01/2018 10,100
- ------------------------------------------------------------------------------------------------------------------
75,000 CA Veterans GO, Series BP 5.500 12/01/2026 75,040
- ------------------------------------------------------------------------------------------------------------------
150,000 CA Veterans GO, Series BR 5.250 12/01/2026 150,224
- ------------------------------------------------------------------------------------------------------------------
25,000 CA Water Resource Devel. GO, Series S 5.500 04/01/2009 25,058
- ------------------------------------------------------------------------------------------------------------------
2,950,000 Calaveras County Special Tax Community Facilities
District No. 2 7.000 09/01/2026 3,276,860
- ------------------------------------------------------------------------------------------------------------------
2,300,000 Campbell Redevel. Agency Tax Allocation 6.600 10/01/2032 2,496,949
- ------------------------------------------------------------------------------------------------------------------
6,000,000 Carson Redevel. Agency 6.000 01/01/2035 6,051,120
- ------------------------------------------------------------------------------------------------------------------
1,200,000 Chino Community Facilities District Special Tax 6.000 09/01/2028 1,246,788
18 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,340,000 Chino Community Facilities District Special Tax 6.000% 09/01/2033 $ 1,387,597
- -------------------------------------------------------------------------------------------------------------------
7,000,000 Chula Vista Redevel. Agency (Bayfront) 7.625 09/01/2024 7,344,890
- -------------------------------------------------------------------------------------------------------------------
1,825,000 Coalinga Regional Medical Center COP 5.750 09/01/2024 1,875,826
- -------------------------------------------------------------------------------------------------------------------
3,040,000 Coalinga Regional Medical Center COP 6.000 09/01/2034 3,071,586
- -------------------------------------------------------------------------------------------------------------------
2,360,000 Colton Community Facilities District Special Tax 7.500 09/01/2020 2,505,352
- -------------------------------------------------------------------------------------------------------------------
815,000 Commerce CDC Tax Allocation 5.750 08/01/2010 868,627
- -------------------------------------------------------------------------------------------------------------------
2,800,000 Commerce CDC Tax Allocation 6.000 08/01/2021 2,897,356
- -------------------------------------------------------------------------------------------------------------------
3,075,000 Contra Costa County Special Tax Community
Facilities District 5.580 08/01/2016 3,213,590
- -------------------------------------------------------------------------------------------------------------------
1,500,000 Corona-Norco Unified School District Public
Financing Authority 6.125 09/01/2034 1,545,450
- -------------------------------------------------------------------------------------------------------------------
195,000 Cupertino Union School District GO 5.600 08/01/2021 197,383
- -------------------------------------------------------------------------------------------------------------------
3,335,000 Davis Public Facilities Finance Authority
(Mace Ranch Area) 6.600 09/01/2025 3,509,787
- -------------------------------------------------------------------------------------------------------------------
3,280,000 East Palo Alto Redevel. Agency Tax Allocation
(University Circle-Gateway) 6.625 10/01/2029 3,524,622
- -------------------------------------------------------------------------------------------------------------------
1,500,000 Eastern CA Municipal Water District
(Crown Valley Village) 5.625 09/01/2034 1,522,110
- -------------------------------------------------------------------------------------------------------------------
1,625,000 Folsom Special Tax Community Facilities District No. 10 6.300 09/01/2012 1,749,946
- -------------------------------------------------------------------------------------------------------------------
8,500,000 Folsom Special Tax Community Facilities District No. 10 6.875 09/01/2019 9,191,560
- -------------------------------------------------------------------------------------------------------------------
10,000 Fontana Redevel. Agency (Jurupa Hills) 5.500 10/01/2027 10,405
- -------------------------------------------------------------------------------------------------------------------
3,000,000 Huntington Park Public Financing Authority, Series A 6.200 10/01/2025 3,135,750
- -------------------------------------------------------------------------------------------------------------------
2,000,000 Indio Improvement Bond Act of 1915 Assessment
District No. 2003-03 6.125 09/02/2029 2,015,540
- -------------------------------------------------------------------------------------------------------------------
2,000,000 Indio Public Financing Authority 6.100 09/02/2029 2,069,960
- -------------------------------------------------------------------------------------------------------------------
4,250,000 Indio Redevel. Agency Tax, Series B 6.500 08/15/2034 4,457,570
- -------------------------------------------------------------------------------------------------------------------
5,000,000 La Verne COP (Bethren Hillcrest Homes) 5.600 02/15/2033 5,279,050
- -------------------------------------------------------------------------------------------------------------------
4,500,000 La Verne COP (Bethren Hillcrest Homes) 6.625 02/15/2025 4,619,205
- -------------------------------------------------------------------------------------------------------------------
20,000 Lathrop Improvement Bond (Mossdale Village) 6.125 09/02/2028 20,603
- -------------------------------------------------------------------------------------------------------------------
5,000,000 Lathrop Special Tax Community Facilities District No. 03-2 7.000 09/01/2033 5,076,050
- -------------------------------------------------------------------------------------------------------------------
25,000 Loma Linda Collateralized Loan (Redlands) 7.375 06/01/2009 25,318
- -------------------------------------------------------------------------------------------------------------------
40,000 Long Beach Harbor 5.250 05/15/2025 41,030
- -------------------------------------------------------------------------------------------------------------------
1,425,000 Los Angeles Community Redevel. Agency
(Grand Central Square) 5.850 12/01/2026 1,429,104
- -------------------------------------------------------------------------------------------------------------------
10,000 Los Angeles County Public Works Financing Authority 5.250 12/01/2016 10,121
- -------------------------------------------------------------------------------------------------------------------
2,375,000 Los Angeles Department of Water & Power RITES 1 12.645 2 07/01/2024 2,703,320
- -------------------------------------------------------------------------------------------------------------------
75,000 Los Angeles Harbor Department, Series B 5.375 11/01/2019 78,349
- -------------------------------------------------------------------------------------------------------------------
25,000 Los Angeles Regional Airports Improvement Corp.
(United Airlines) 1,3,5 8.800 11/15/2021 21,500
- -------------------------------------------------------------------------------------------------------------------
2,500,000 Los Angeles USD ROLs 1 9.299 2 07/01/2015 3,193,075
- -------------------------------------------------------------------------------------------------------------------
2,500,000 Los Angeles USD ROLs 1 9.299 2 07/01/2016 3,193,075
19 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,500,000 Los Angeles USD ROLs 1 9.299% 2 07/01/2017 $ 1,915,845
- -------------------------------------------------------------------------------------------------------------------
65,000 M-S-R Public Power Agency (San Juan) 6.000 07/01/2022 65,962
- -------------------------------------------------------------------------------------------------------------------
100,000 Madera County COP (Valley Children's Hospital) 5.750 03/15/2028 102,371
- -------------------------------------------------------------------------------------------------------------------
50,000 Marina Community Facilities District Special Tax 6.250 09/01/2023 51,500
- -------------------------------------------------------------------------------------------------------------------
690,000 Menifee Union School District Special Tax 5.500 09/01/2034 695,831
- -------------------------------------------------------------------------------------------------------------------
385,000 Menifee Union School District Special Tax 5.500 09/01/2034 388,253
- -------------------------------------------------------------------------------------------------------------------
20,000 Mill Valley Community Facilities District
Special Tax (Library Renovation) 5.800 08/01/2026 20,009
- -------------------------------------------------------------------------------------------------------------------
700,000 Murrieta Community Facilities District Special Tax
(Bremerton) 5.625 09/01/2034 711,886
- -------------------------------------------------------------------------------------------------------------------
2,500,000 Murrieta Community Facilities District Special Tax
(Murrieta Springs) 5.500 09/01/2034 2,503,275
- -------------------------------------------------------------------------------------------------------------------
1,785,000 Murrieta Valley Unified School District Special Tax 6.000 09/01/2035 1,873,322
- -------------------------------------------------------------------------------------------------------------------
1,320,000 Norco Special Tax Community Facilities District No. 97-1 7.100 10/01/2030 1,447,882
- -------------------------------------------------------------------------------------------------------------------
5,505,000 Northern CA Tobacco Securitization Authority (TASC) 5.375 06/01/2041 4,823,206
- --------------------------------------------------------------------------------------------------------------------
30,000 Oakland GO 6.000 06/15/2017 30,080
- -------------------------------------------------------------------------------------------------------------------
1,000,000 Orange County Community Facilities District
(Ladera Ranch), Series A 6.250 08/15/2030 1,104,020
- -------------------------------------------------------------------------------------------------------------------
2,250,000 Orange County Community Facilities District
(Ladera Ranch), Series A 6.700 08/15/2029 2,628,338
- -------------------------------------------------------------------------------------------------------------------
50,000 Palmdale Multifamily Hsg., Series A 7.375 09/01/2024 50,087
- -------------------------------------------------------------------------------------------------------------------
1,310,000 Perris Community Facilities District Special Tax, Series A 5.750 09/01/2035 1,318,188
- -------------------------------------------------------------------------------------------------------------------
2,085,000 Perris Community Facilities District Special Tax
(Amber Oaks) 6.000 09/01/2034 2,141,837
- -------------------------------------------------------------------------------------------------------------------
2,500,000 Perris Community Facilities District Special Tax
(Chaparral Ridge) 6.250 09/01/2033 2,578,925
- -------------------------------------------------------------------------------------------------------------------
3,605,000 Perris Community Facilities District Special Tax, Series B 6.000 09/01/2034 3,703,272
- -------------------------------------------------------------------------------------------------------------------
1,250,000 Perris Public Financing Authority, Series A 6.250 09/01/2033 1,314,650
- -------------------------------------------------------------------------------------------------------------------
95,000 Pittsburg Infrastructure Financing Authority, Series A 5.600 09/02/2024 97,907
- -------------------------------------------------------------------------------------------------------------------
3,500,000 Pittsburg Redevel. Agency
(Los Medanos Community Devel.) 6.200 08/01/2019 3,855,635
- -------------------------------------------------------------------------------------------------------------------
500,000 Pomona (Single Family Mtg.), Series B 7.500 08/01/2023 677,570
- -------------------------------------------------------------------------------------------------------------------
2,500,000 Port Oakland RITES 1 9.060 2 11/01/2015 3,000,975
- -------------------------------------------------------------------------------------------------------------------
2,500,000 Port Oakland RITES 1 9.310 2 11/01/2017 3,043,200
- -------------------------------------------------------------------------------------------------------------------
2,430,000 Port Oakland RITES 1 12.611 2 11/01/2022 2,890,145
- -------------------------------------------------------------------------------------------------------------------
5,025,000 Port Oakland RITES 1 12.611 2 11/01/2032 5,525,691
- -------------------------------------------------------------------------------------------------------------------
2,660,000 Port Oakland RITES 1 14.111 2 11/01/2025 3,387,510
- -------------------------------------------------------------------------------------------------------------------
1,500,000 Redding Electric COP Linked SAVRS & RIBS 5.684 4 06/28/2019 1,515,720
- -------------------------------------------------------------------------------------------------------------------
3,000,000 Redding Electric COP RIBS 10.981 2 07/08/2022 4,497,720
- -------------------------------------------------------------------------------------------------------------------
15,000 Rosemead Redevel. Agency 5.500 10/01/2018 15,123
- -------------------------------------------------------------------------------------------------------------------
1,500,000 Roseville Woodcreek West Community Facility 6.500 09/01/2015 1,617,870
20 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,000,000 Roseville Woodcreek West Community Facility 6.700% 09/01/2025 $ 1,066,380
- --------------------------------------------------------------------------------------------------------------------
10,000 Sacramento County Airport System, Series A 5.900 07/01/2024 10,592
- --------------------------------------------------------------------------------------------------------------------
35,000 Sacramento County Airport System, Series B 5.750 07/01/2024 35,424
- --------------------------------------------------------------------------------------------------------------------
1,000,000 Sacramento Power Authority (Cogeneration) 6.000 07/01/2022 1,050,570
- --------------------------------------------------------------------------------------------------------------------
125,000 San Bernardino County COP (Medical Center Financing) 5.500 08/01/2024 127,753
- --------------------------------------------------------------------------------------------------------------------
150,000 San Bernardino Joint Powers Financing Authority
(Department of Transportation) 5.500 12/01/2020 156,668
- --------------------------------------------------------------------------------------------------------------------
3,750,000 San Diego County COP
(Developmental Service Foundation) 5.500 09/01/2027 3,792,638
- --------------------------------------------------------------------------------------------------------------------
315,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 06/01/2018 318,270
- --------------------------------------------------------------------------------------------------------------------
50,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 06/01/2018 50,331
- --------------------------------------------------------------------------------------------------------------------
40,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 09/01/2018 40,461
- --------------------------------------------------------------------------------------------------------------------
25,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 09/01/2018 25,308
- --------------------------------------------------------------------------------------------------------------------
30,000 San Diego Sewer, Series A 5.250 05/15/2020 30,218
- --------------------------------------------------------------------------------------------------------------------
1,880,000 San Diego Unified School District GO RITES 1 12.715 2 07/01/2027 2,242,614
- --------------------------------------------------------------------------------------------------------------------
2,445,000 San Diego Unified School District GO RITES 1 13.719 2 07/01/2023 3,706,522
- --------------------------------------------------------------------------------------------------------------------
15,000 San Francisco City & County Airports Commission 5.500 05/01/2026 15,566
- --------------------------------------------------------------------------------------------------------------------
25,000 San Francisco City & County Airports Commission 5.500 05/01/2026 25,943
- --------------------------------------------------------------------------------------------------------------------
50,000 San Francisco City & County Airports Commission 5.625 05/01/2021 51,993
- --------------------------------------------------------------------------------------------------------------------
125,000 San Francisco City & County Airports Commission 5.750 05/01/2020 127,098
- --------------------------------------------------------------------------------------------------------------------
6,490,000 San Jacinto Financing Authority, Tranche A 6.600 09/01/2033 6,267,523
- --------------------------------------------------------------------------------------------------------------------
6,345,000 San Jacinto Financing Authority, Tranche B 6.600 09/01/2033 5,993,931
- --------------------------------------------------------------------------------------------------------------------
6,530,000 San Jacinto Financing Authority, Tranche C 6.600 09/01/2033 5,687,434
- --------------------------------------------------------------------------------------------------------------------
1,000,000 Santa Ana Financing Authority (Mainplace) 5.600 09/01/2019 1,105,910
- --------------------------------------------------------------------------------------------------------------------
3,950,000 Santaluz Special Tax Community Facilities District No. 2 6.375 09/01/2030 4,040,060
- --------------------------------------------------------------------------------------------------------------------
25,000 Sonoma County Community Redevel. Agency (Roseland) 7.900 08/01/2013 25,613
- --------------------------------------------------------------------------------------------------------------------
185,000 Southern CA Public Power Authority 5.500 07/01/2020 185,466
- --------------------------------------------------------------------------------------------------------------------
30,000 Southern CA Public Power Authority 6.000 07/01/2018 30,088
- --------------------------------------------------------------------------------------------------------------------
150,000 Southern CA Public Power Authority RIBS 9.688 2 07/01/2012 150,807
- --------------------------------------------------------------------------------------------------------------------
1,000,000 Southern CA Tobacco Securitization Authority (TASC) 5.500 06/01/2036 897,980
- --------------------------------------------------------------------------------------------------------------------
3,000,000 Southern CA Tobacco Securitization Authority (TASC) 6.000 06/01/2043 2,709,420
- --------------------------------------------------------------------------------------------------------------------
3,750,000 Stockton Community Facilities District
(Brookside Estates) 6.200 08/01/2015 3,902,025
- --------------------------------------------------------------------------------------------------------------------
135,000 Stockton Public Financing Authority, Series A 5.875 09/02/2016 138,702
- --------------------------------------------------------------------------------------------------------------------
2,250,000 Tejon Ranch Public Facilities Finance Authority
Special Tax (Community Facilities District No.1) 7.200 09/01/2030 2,319,435
- --------------------------------------------------------------------------------------------------------------------
2,000,000 Temecula Valley Unified School District 5.500 09/01/2035 2,023,760
21 OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,600,000 Tustin Community Facilities District Special Tax
(John Lang Homes) 5.500% 09/01/2034 $ 1,620,720
- -------------------------------------------------------------------------------------------------------------------
2,650,000 Upland Community Facilities District Special Tax
(San Antonio) 6.100 09/01/2034 2,747,255
- -------------------------------------------------------------------------------------------------------------------
250,000 Vacaville Public Financing Authority 5.400 09/01/2022 253,963
- -------------------------------------------------------------------------------------------------------------------
850,000 Vallejo COP (Marine World Foundation) 1 7.000 02/01/2017 891,183
- -------------------------------------------------------------------------------------------------------------------
1,000,000 Vallejo COP (Marine World Foundation) 7.200 02/01/2026 1,048,470
- -------------------------------------------------------------------------------------------------------------------
4,000,000 Western Hills Water District Special Tax
(Diablo Grande Community Facilities) 6.125 09/01/2031 4,094,320
- -------------------------------------------------------------------------------------------------------------------
15,000 Yucaipa Redevel. Agency
(Eldorado Palms Mobile Home) 6.000 05/01/2030 15,055
------------
499,029,919
- -------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--12.0%
1,000,000 Puerto Rico Electric Power Authority 5.375 07/01/2030 1,028,470
- -------------------------------------------------------------------------------------------------------------------
2,245,000 Puerto Rico HBFA 6.250 04/01/2029 2,296,455
- -------------------------------------------------------------------------------------------------------------------
5,510,000 Puerto Rico ITEMECF (Congeneration Facilities) 6.625 06/01/2026 5,982,097
- -------------------------------------------------------------------------------------------------------------------
2,760,000 Puerto Rico ITEMECF (Mennonite General Hospital) 6.500 07/01/2012 2,784,122
- -------------------------------------------------------------------------------------------------------------------
21,195,000 Puerto Rico Port Authority (American Airlines), Series A 6.250 06/01/2026 14,987,408
- -------------------------------------------------------------------------------------------------------------------
1,205,000 Puerto Rico Port Authority (American Airlines), Series A 6.300 06/01/2023 851,995
- -------------------------------------------------------------------------------------------------------------------
27,000,000 V.I. Public Finance Authority (Hovensa Coker) 6.500 07/01/2021 29,649,240
- -------------------------------------------------------------------------------------------------------------------
4,515,000 V.I. Public Finance Authority, Series A 6.375 10/01/2019 5,225,932
- -------------------------------------------------------------------------------------------------------------------
5,150,000 V.I. Public Finance Authority, Series E 6.000 10/01/2022 5,302,946
------------
68,108,665
- -------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $537,676,735)--99.8% 567,138,584
- -------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES--0.2 971,672
------------
NET ASSETS--100.0% $568,110,256
============
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Illiquid security. The aggregate value of illiquid securities as of January
31, 2005 was $57,149,389, which represents 10.06% 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. Issue is in default. See Note 1 of Notes to Financial Statements.
4. Represents the current interest rate for a variable or increasing rate
security.
5. Non-income producing security.
22 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
ABAG Association of Bay Area Governments MSR Modesto Irrigation District of the City of
CDA Communities Development Authority Santa Clara and the City of Redding
CDC Community Development Corp. RIBS Residual Interest Bonds
COP Certificates of Participation RITES Residual Interest Tax Exempt Security
EFA Educational Facilities Authority ROLs Residual Option Longs
GO General Obligation SAVRS Select Auction Variable Rate Securities
HBFA Housing Bank and Finance Agency TASC Tobacco Settlement Asset-Backed Bonds
HFA Housing Finance Agency/Authority USD Unified School District
INFLOS Inverse Floating Rate Securities V.I. United States Virgin Islands
ITEMECF Industrial, Tourist, Educational, Medical and
Environmental Community Facilities
- --------------------------------------------------------------------------------
INDUSTRY CONCENTRATIONS January 31, 2005
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY VALUE PERCENT
- --------------------------------------------------------------------------------
Tobacco $161,078,235 28.4%
Special Tax 129,308,937 22.8
Special Assessment 38,805,038 6.8
Pollution Control 36,928,728 6.5
Hospital/Health Care 22,382,115 3.8
Education 21,394,609 3.8
Marine/Aviation Facilities 18,233,516 3.2
Municipal Leases 17,329,272 3.1
General Obligation 16,769,632 3.0
Airlines 15,860,903 2.8
Adult Living Facilities 14,915,074 2.6
Electric Utilities 14,582,539 2.6
Multifamily Housing 12,779,156 2.3
Hotels, Restaurants & Leisure 10,962,910 1.9
Sales Tax Revenue 10,528,878 1.9
Higher Education 9,400,278 1.7
Not-for-Profit Organization 7,821,592 1.4
Single Family Housing 4,793,430 0.8
Water Utilities 2,728,378 0.5
Gas Utilities 505,146 0.1
Sewer Utilities 30,218 0.0
---------------------------
Total $567,138,584 100.0%
===========================
23 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 11.0%
AA 0.8
A 4.4
BBB 61.9
BB 0.2
B 0.7
CCC 2.8
Not Rated 18.2
------
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.
24 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
January 31, 2005
- -----------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $537,676,735)--see accompanying statement of investments $ 567,138,584
- -----------------------------------------------------------------------------------------------------
Cash 290,521
- -----------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 9,580,023
Shares of beneficial interest sold 1,184,698
Investments sold 635,000
Other 21,219
--------------
Total assets 578,850,045
- -----------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Payable to conduit lender (See Note 6) 7,500,000
Investments purchased 1,567,625
Shares of beneficial interest redeemed 801,495
Dividends 555,666
Distribution and service plan fees 114,700
Trustees' compensation 107,194
Shareholder communications 30,217
Transfer and shareholder servicing agent fees 17,582
Interest expense 5,436
Other 39,874
--------------
Total liabilities 10,739,789
- -----------------------------------------------------------------------------------------------------
NET ASSETS $ 568,110,256
==============
- -----------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 51,202
- -----------------------------------------------------------------------------------------------------
Additional paid-in capital 536,593,099
- -----------------------------------------------------------------------------------------------------
Accumulated net investment income 5,758,325
- -----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (3,754,219)
- -----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 29,461,849
--------------
NET ASSETS $ 568,110,256
==============
25 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $466,545,540 and
42,045,609 shares of beneficial interest outstanding) $11.10
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $11.65
- -----------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $62,104,940 and 5,593,398 shares of
beneficial interest outstanding) $11.10
- -----------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $39,459,776 and 3,562,542 shares of
beneficial interest outstanding) $11.08
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $ 18,473,902
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 1,450,262
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 518,632
Class B 318,738
Class C 173,694
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 89,176
Class B 16,652
Class C 9,321
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 16,610
Class B 3,433
Class C 1,626
- --------------------------------------------------------------------------------
Interest expense 155,740
- --------------------------------------------------------------------------------
Custodian fees and expenses 15,720
- --------------------------------------------------------------------------------
Trustees' compensation 8,645
- --------------------------------------------------------------------------------
Other 27,269
-------------
Total expenses 2,805,518
Less reduction to custodian expenses (953)
Less payments and waivers of expenses (5)
-------------
Net expenses 2,804,560
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 15,669,342
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on investments 921,341
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 37,336,316
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 53,926,999
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2005 JULY 31,
(UNAUDITED) 2004
- ------------------------------------------------------------------------------------------------
OPERATIONS
- ------------------------------------------------------------------------------------------------
Net investment income $ 15,669,342 $ 32,731,573
- ------------------------------------------------------------------------------------------------
Net realized gain 921,341 2,593,176
- ------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 37,336,316 9,407,322
---------------------------------
Net increase in net assets resulting from operations 53,926,999 44,732,071
- ------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (12,635,210) (23,080,655)
Class B (1,614,336) (4,213,716)
Class C (876,097) (1,515,899)
- ------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 33,447,697 4,558,937
Class B (8,572,214) (38,472,624)
Class C 5,850,174 2,456,965
- ------------------------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------
Total increase (decrease) 69,527,013 (15,534,921)
- ------------------------------------------------------------------------------------------------
Beginning of period 498,583,243 514,118,164
---------------------------------
End of period (including accumulated net investment
income of $5,758,325 and $5,214,626, respectively) $ 568,110,256 $ 498,583,243
=================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF CASH FLOWS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2005
- -------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
- -------------------------------------------------------------------------------------
Net increase in net assets from operations $ 53,926,999
- -------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets from operations
to net cash used in operating activities:
Purchase of investment securities (35,610,706)
Proceeds from disposition of investment securities 27,439,454
Premium amortization 532,250
Discount accretion (172,219)
Net realized gain on investments (921,341)
Net change in unrealized appreciation on investments (37,336,316)
Increase in interest receivable (594,256)
Increase in other assets (6,717)
Decrease in payable for accrued expenses (3,890)
-------------
Net cash provided by operating activities 7,253,258
- -------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
- -------------------------------------------------------------------------------------
Proceeds from bank borrowing 38,700,000
Payments on bank borrowing (61,600,000)
Proceeds from shares sold 69,606,162
Payment on shares redeemed (48,389,508)
Cash distributions paid (6,038,217)
-------------
Net cash used in financing activities (7,721,563)
- -------------------------------------------------------------------------------------
Net decrease in cash (468,305)
- -------------------------------------------------------------------------------------
Cash, beginning balance 758,826
-------------
Cash, ending balance $ 290,521
=============
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of
dividends and distributions of $8,875,045.
Cash paid for interest on bank borrowings--$139,062.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
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 $ 10.31 $ 9.97 $ 10.60 $ 10.49 $ 10.11 $ 10.57
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .33 1 .68 .63 .53 .53 .53
Net realized and unrealized gain (loss) .77 .27 (.66) .10 .38 (.46)
--------------------------------------------------------------------------------
Total from investment operations 1.10 .95 (.03) .63 .91 .07
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.31) (.61) (.60) (.52) (.53) (.53)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.10 $ 10.31 $ 9.97 $ 10.60 $ 10.49 $ 10.11
================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 10.82% 9.54% (0.57)% 6.20% 9.17% 0.86%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $466,546 $401,491 $385,141 $409,689 $387,388 $270,494
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $431,887 $400,452 $410,237 $398,651 $344,808 $283,025
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 6.01% 6.52% 5.88% 5.09% 5.08% 5.34%
Total expenses 0.91% 1.00% 0.96% 0.86% 4 0.88% 0.91% 4
Expenses after payments and waivers and
reduction to custodian expenses N/A 5,6 0.97% N/A 5 N/A 0.87% 4 N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 26% 63% 27% 20% 48%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
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 management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
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 $ 10.31 $ 9.97 $ 10.61 $ 10.50 $ 10.11 $ 10.57
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .28 1 .64 .55 .45 .45 .45
Net realized and unrealized gain (loss) .78 .22 (.68) .10 .39 (.45)
---------------------------------------------------------------------------------
Total from investment operations 1.06 .86 (.13) .55 .84 --
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.27) (.52) (.51) (.44) (.45) (.46)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.10 $ 10.31 $ 9.97 $ 10.61 $ 10.50 $ 10.11
=================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 10.39% 8.70% (1.42)% 5.39% 8.46% 0.10%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 62,105 $ 65,991 $101,079 $128,857 $137,307 $105,393
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 63,543 $ 84,482 $118,611 $132,685 $126,060 $113,936
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.25% 5.76% 5.09% 4.32% 4.33% 4.57%
Total expenses 1.68% 1.77% 1.73% 1.62% 4 1.63% 1.67% 4
Expenses after payments and waivers and
reduction to custodian expenses N/A 5,6 1.74% N/A 5 N/A 1.62% 4 N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 26% 63% 27% 20% 48%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
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 management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
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 $ 10.29 $ 9.95 $ 10.58 $ 10.48 $ 10.09 $ 10.55
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .28 1 .60 .54 .46 .45 .45
Net realized and unrealized gain (loss) .78 .26 (.66) .08 .39 (.45)
---------------------------------------------------------------------------------
Total from investment operations 1.06 .86 (.12) .54 .84 --
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.27) (.52) (.51) (.44) (.45) (.46)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.08 $ 10.29 $ 9.95 $ 10.58 $ 10.48 $ 10.09
=================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 10.42% 8.71% (1.33)% 5.31% 8.48% 0.10%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 39,460 $ 31,102 $ 27,898 $ 24,936 $ 18,105 $ 12,659
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 34,590 $ 30,371 $ 27,011 $ 21,775 $ 14,489 $ 14,424
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.21% 5.74% 5.12% 4.33% 4.32% 4.58%
Total expenses 1.68% 1.78% 1.73% 1.62% 4 1.63% 1.67% 4
Expenses after payments and waivers and
reduction to custodian expenses N/A 5,6 1.75% N/A 5 N/A 1.62% 4 N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 4% 26% 63% 27% 20% 48%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
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 management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer California Municipal Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The Fund's investment objective is to seek as
high a level of current interest income exempt from federal and California
income taxes for individual investors as is consistent with preservation of
capital. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ due
to each class having its own expenses, such as transfer and shareholder
servicing agent fees and shareholder communications, directly attributable to
that class. Class A, B and C have separate distribution and/or service plans.
Class B shares will automatically convert to Class A shares six years after the
date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities listed
or traded on National Stock Exchanges or other domestic or foreign exchanges are
valued based on the last sale price of the security traded on that exchange
prior to the time when the Fund's assets are valued. Securities traded on NASDAQ
are valued based on the closing price provided by NASDAQ prior to the time when
the Fund's assets are valued. In the absence of a sale, the security is valued
at the last sale price on the prior trading day, if it is within the spread of
the closing bid and asked prices, and if not, at the closing bid price.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of 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).
33 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
INVERSE FLOATING RATE SECURITIES. The Fund invests in inverse floating rate
securities that pay interest at a rate that varies inversely with short-term
interest rates. Certain of these securities may be leveraged, whereby the
interest rate varies inversely at a multiple of the change in short-term rates.
As interest rates rise, inverse floaters produce less current income. The price
of such securities is more volatile than comparable fixed rate securities. The
Fund will invest no more than 20% of its total assets in inverse floaters.
Inverse floaters amount to $66,484,673 as of January 31, 2005. Including the
effect of leverage, inverse floaters represent 16.45% 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 $21,500, representing less than 0.01% of the Fund's
net assets, were in default.
There are certain risks arising from geographic concentration in any
state. Certain revenue or tax related events in a state may impair the ability
of certain issuers of municipal securities to pay principal and interest on
their obligations.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
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 $3,754,219 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 $921,341 of capital
34 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
loss carryforward to offset realized capital gains. During the year ended July
31, 2004, the Fund did utilize $2,486,648 of capital loss carryforward to offset
realized capital gains.
As of July 31, 2004, the Fund had available for federal income tax purposes an
unused capital loss carryforward as follows:
EXPIRING
--------------------------
2009 $4,675,560
- --------------------------------------------------------------------------------
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
$2,513 and payments of $7,347 were made to retired trustees, resulting in an
accumulated liability of $91,396 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.
- --------------------------------------------------------------------------------
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.
35 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 5,278,966 $ 56,871,236 7,744,923 $ 80,841,517
Dividends and/or
distributions reinvested 685,105 7,393,495 1,331,353 13,858,499
Redeemed (2,870,403) (30,817,034) (8,763,844) (90,141,079)
---------------------------------------------------------------------
Net increase 3,093,668 $ 33,447,697 312,432 $ 4,558,937
=====================================================================
- ----------------------------------------------------------------------------------------------------
CLASS B
Sold 388,167 $ 4,183,289 600,000 $ 6,274,104
Dividends and/or
distributions reinvested 90,643 977,803 260,942 2,715,157
Redeemed (1,283,772) (13,733,306) (4,597,223) (47,461,885)
---------------------------------------------------------------------
Net decrease (804,962) $ (8,572,214) (3,736,281) $(38,472,624)
=====================================================================
- ----------------------------------------------------------------------------------------------------
CLASS C
Sold 841,880 $ 9,082,566 1,017,725 $ 10,643,445
Dividends and/or
distributions reinvested 46,748 503,747 90,433 940,495
Redeemed (348,747) (3,736,139) (888,932) (9,126,975)
---------------------------------------------------------------------
Net increase 539,881 $ 5,850,174 219,226 $ 2,456,965
=====================================================================
- --------------------------------------------------------------------------------
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
$17,911,541 and $15,853,959, respectively.
36 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
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
$116,821 to OFS for services to the Fund.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12B-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
years. Fees incurred by the Fund under the Plan are detailed in the Statement of
Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% per year on Class B and
Class C shares. The Distributor also receives a service fee of up to 0.25% per
year under each plan. If either the Class B or Class C plan is terminated by the
Fund or by the shareholders of a class, the Board of Trustees and its
independent trustees must determine whether the Distributor shall be entitled to
payment from the Fund of all or a portion of the service fee and/or asset-based
sales charge in respect to shares sold prior to the effective date of such
termination. The Distributor's aggregate uncompensated expenses under the plan
at January 31, 2005 for Class B and Class C shares were $1,964,536 and $714,329,
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
37 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
the CDSC retained by the Distributor on the redemption of shares is shown in the
table below for the period indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ---------------------------------------------------------------------------------------------------------
January 31, 2005 $135,278 $2,043 $68,616 $948
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. The Manager has voluntarily undertaken to
limit its management fees to not exceed 0.55% of average annual net assets for
each class of shares. During the six months ended January 31, 2005, the Manager
waived $5 of its management fees. This voluntary undertaking is expected to
remain in effect indefinitely, however, may be amended or withdrawn by the
Manager at any time.
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 15% 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 33 1/3% 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 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.
38 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
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 $12,279,891 at an average daily interest rate of 2.601%. The Fund
had borrowings outstanding of $7,500,000 at January 31, 2005 at an interest rate
of 2.4038%. The Fund had gross borrowings and gross loan repayments of
$38,700,000 and $61,600,000, 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 $25,100,000. The Fund paid
$3,357 in fees and $139,062 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 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.
39 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
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 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.
40 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
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 California Municipal Fund
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