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 811-21474
Oppenheimer Limited Term 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
- --------------------------------------------------------------------------------
TOP TEN INDUSTRIES
- --------------------------------------------------------------------------------
Tobacco Settlements 25.1%
- --------------------------------------------------------------------------------
Special Tax 13.2
- --------------------------------------------------------------------------------
Municipal Leases 9.4
- --------------------------------------------------------------------------------
General Obligation 9.1
- --------------------------------------------------------------------------------
Special Assessment 7.1
- --------------------------------------------------------------------------------
Hospital/Health Care 6.6
- --------------------------------------------------------------------------------
Multifamily Housing 5.9
- --------------------------------------------------------------------------------
Pollution Control 5.2
- --------------------------------------------------------------------------------
Marine/Aviation Facilities 4.9
- --------------------------------------------------------------------------------
Electric Utilities 3.9
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2005, and are based on total value of investments.
- --------------------------------------------------------------------------------
CREDIT ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL]
AAA 32.8%
AA 3.7
A 12.1
BBB 46.9
BB 0.3
B 0.1
Not Rated 4.1
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.
- --------------------------------------------------------------------------------
12 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
NOTES
- --------------------------------------------------------------------------------
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 LIMITED TERM
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
1.800.525.7048, 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.
Please remember this Fund has a limited operating history.
CLASS A shares of the Fund were first publicly offered on 2/25/04. The average
annual total returns are shown net of the applicable 3.50% maximum initial sales
charge.
CLASS B shares of the Fund were first publicly offered on 2/25/04. The average
annual total returns are shown net of the applicable contingent deferred sales
charge of 4% (1-year) and 1% (5-year). 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 2/25/04. 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 LIMITED TERM CALIFORNIA MUNICIPAL FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
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 LIMITED TERM 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 $1,066.00 $ 4.16
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1021.11 4.07
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1063.90 8.07
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1017.34 7.89
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1062.30 8.07
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1017.34 7.89
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 0.80%
- -------------------------------
Class B 1.55
- -------------------------------
Class C 1.55
The expense ratios reflect voluntary waivers or reimbursements of expenses by
the Fund's Manager that can be terminated at any time, without advance notice.
The "Financial Highlights" tables in the Fund's financial statements, included
in this report, also show the gross expense ratios, without such waivers or
reimbursements.
- --------------------------------------------------------------------------------
15 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS January 31, 2005 / Unaudited
- --------------------------------------------------------------------------------
PRINCIPAL EFFECTIVE VALUE
AMOUNT COUPON MATURITY MATURITY* SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES--119.5%
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA--112.9%
$ 5,000 ABAG Finance Authority for NonProfit
Corporations (Civic Center Drive Apartments) 5.875% 03/01/2032 09/01/2009 1 $ 5,209
- -------------------------------------------------------------------------------------------------------------------
5,000 ABAG Finance Authority for NonProfit
Corporations COP 5.600 11/01/2023 11/01/2005 1 5,050
- -------------------------------------------------------------------------------------------------------------------
10,000 ABAG Finance Authority for NonProfit
Corporations COP 5.800 03/01/2023 03/01/2005 1 10,013
- -------------------------------------------------------------------------------------------------------------------
250,000 ABAG Finance Authority for NonProfit
Corporations COP (Lytton Gardens) 6.000 02/15/2019 02/15/2008 1 268,578
- -------------------------------------------------------------------------------------------------------------------
260,000 ABAG Finance Authority for NonProfit
Corporations, Series A 0.000 4 04/20/2019 04/20/2012 1 116,012
- -------------------------------------------------------------------------------------------------------------------
115,000 Adelanto Improvement Agency, Series B 5.500 12/01/2023 06/01/2005 1 117,254
- -------------------------------------------------------------------------------------------------------------------
75,000 Adelanto Public Financing Authority,
Series B 7.250 09/15/2015 03/15/2005 1 75,120
- -------------------------------------------------------------------------------------------------------------------
10,000 Alum Rock Union Elementary
School District 5.300 09/01/2021 09/01/2005 1 10,119
- -------------------------------------------------------------------------------------------------------------------
25,000 Azusa COP 5.750 08/01/2020 02/01/2005 1 25,665
- -------------------------------------------------------------------------------------------------------------------
25,000 Beaumont Financing Authority, Series A 7.000 09/01/2023 09/01/2005 1 25,157
- -------------------------------------------------------------------------------------------------------------------
50,000 Bell Community Hsg. Authority
(Mobile Home Parks) 6.400 10/01/2025 10/01/2005 1 51,981
- -------------------------------------------------------------------------------------------------------------------
80,000 Burbank Glendale Pasadena
Airport Authority 6.400 06/01/2010 06/01/2005 1 80,239
- -------------------------------------------------------------------------------------------------------------------
400,000 CA CDA (East Valley Tourist) 11.000 10/01/2020 03/01/2007 2 406,120
- -------------------------------------------------------------------------------------------------------------------
445,000 CA County Tobacco Securitization
Agency (TASC) 5.750 06/01/2029 12/01/2012 2 433,590
- -------------------------------------------------------------------------------------------------------------------
110,000 CA County Tobacco Securitization
Agency (TASC) 5.750 06/01/2030 06/04/2012 2 107,199
- -------------------------------------------------------------------------------------------------------------------
100,000 CA County Tobacco Securitization
Agency (TASC) 5.875 06/01/2043 09/01/2019 3 94,006
- -------------------------------------------------------------------------------------------------------------------
25,000 CA Department of Veterans Affairs
Home Purchase 5.100 12/01/2019 06/01/2005 1 25,080
- -------------------------------------------------------------------------------------------------------------------
60,000 CA Department of Veterans Affairs
Home Purchase 5.500 12/01/2019 01/09/2012 1 64,252
- -------------------------------------------------------------------------------------------------------------------
100,000 CA Department of Water Resources
(Center Valley) 5.250 07/01/2022 07/01/2005 1 100,266
- -------------------------------------------------------------------------------------------------------------------
25,000 CA Department of Water Resources
(Center Valley) 5.400 07/01/2012 07/01/2005 1 25,060
- -------------------------------------------------------------------------------------------------------------------
10,000 CA Educational Facilities Authority
(Cedars-Sinai Medical Center) 6.125 12/01/2019 12/01/2009 1 11,061
- -------------------------------------------------------------------------------------------------------------------
35,000 CA Educational Facilities Authority
(College of Osteopathic Medicine) 5.750 06/01/2018 06/01/2005 1 36,083
- -------------------------------------------------------------------------------------------------------------------
90,000 CA Educational Facilities Authority
(University of Redlands) 6.000 10/01/2025 10/01/2005 1 93,695
- -------------------------------------------------------------------------------------------------------------------
20,000 CA EFA (College and University Financing) 6.250 06/01/2018 06/01/2005 1 20,121
- -------------------------------------------------------------------------------------------------------------------
60,000 CA GO 5.100 03/01/2010 03/02/2005 1 60,124
16 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
PRINCIPAL EFFECTIVE VALUE
AMOUNT COUPON MATURITY MATURITY* SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 90,000 CA GO 5.125% 10/01/2017 04/01/2005 1 $ 91,272
- -------------------------------------------------------------------------------------------------------------------
50,000 CA GO 5.150 10/01/2019 10/01/2005 1 50,709
- -------------------------------------------------------------------------------------------------------------------
25,000 CA GO 5.250 04/01/2018 04/01/2005 1 25,035
- -------------------------------------------------------------------------------------------------------------------
10,000 CA GO 5.250 04/01/2019 04/01/2005 1 10,014
- -------------------------------------------------------------------------------------------------------------------
55,000 CA GO 5.500 04/01/2019 04/01/2005 1 55,273
- -------------------------------------------------------------------------------------------------------------------
40,000 CA GO 5.500 03/01/2020 03/01/2005 1 40,492
- -------------------------------------------------------------------------------------------------------------------
145,000 CA GO 5.500 10/01/2022 04/01/2005 1 145,558
- -------------------------------------------------------------------------------------------------------------------
100,000 CA GO 5.625 10/01/2023 10/01/2006 1 106,043
- -------------------------------------------------------------------------------------------------------------------
15,000 CA GO 5.750 03/01/2015 03/01/2005 1 15,191
- -------------------------------------------------------------------------------------------------------------------
35,000 CA GO 5.750 11/01/2017 05/01/2005 1 35,285
- -------------------------------------------------------------------------------------------------------------------
35,000 CA GO 5.750 11/01/2017 05/01/2005 1 35,285
- -------------------------------------------------------------------------------------------------------------------
25,000 CA GO 5.900 04/01/2023 04/01/2005 1 25,143
- -------------------------------------------------------------------------------------------------------------------
20,000 CA GO 6.000 08/01/2015 02/01/2005 1 20,553
- -------------------------------------------------------------------------------------------------------------------
5,000 CA GO 6.000 05/01/2018 05/01/2005 1 5,091
- -------------------------------------------------------------------------------------------------------------------
10,000 CA GO 6.000 10/01/2021 04/01/2005 1 10,060
- -------------------------------------------------------------------------------------------------------------------
605,000 CA GO 6.250 10/01/2019 04/01/2005 1 606,876
- -------------------------------------------------------------------------------------------------------------------
10,000 CA GO 6.800 11/01/2008 05/01/2005 1 10,310
- -------------------------------------------------------------------------------------------------------------------
125,000 CA Golden State Tobacco
Securitization Corp. 5.500 06/01/2019 06/01/2007 1 130,791
- -------------------------------------------------------------------------------------------------------------------
200,000 CA Golden State Tobacco
Securitization Corp. 5.750 06/01/2021 06/01/2008 1 213,998
- -------------------------------------------------------------------------------------------------------------------
3,930,000 CA Golden State Tobacco
Securitization Corp. 5 6.250 06/01/2033 09/11/2012 2 3,948,314
- -------------------------------------------------------------------------------------------------------------------
300,000 CA Golden State Tobacco
Securitization Corp. 7.800 06/01/2042 06/01/2013 1 333,828
- -------------------------------------------------------------------------------------------------------------------
1,555,000 CA Golden State Tobacco
Securitization Corp. 7.900 06/01/2042 06/01/2013 1 1,740,387
- -------------------------------------------------------------------------------------------------------------------
1,120,000 CA Golden State Tobacco
Securitization Corp. (TASC) 7.875 06/01/2042 06/01/2013 1 1,251,723
- -------------------------------------------------------------------------------------------------------------------
430,000 CA Golden State Tobacco
Securitization Corp. (TASC) 7.875 06/01/2042 06/01/2013 1 480,572
- -------------------------------------------------------------------------------------------------------------------
20,000 CA Health Facilities Financing Authority
(Catholic Healthcare West), Series A 6.000 07/01/2025 07/01/2008 1 21,342
- -------------------------------------------------------------------------------------------------------------------
10,000 CA Health Facilities Financing Authority
(Children's Hospital) 5.750 07/01/2023 03/01/2005 1 10,115
- -------------------------------------------------------------------------------------------------------------------
25,000 CA Health Facilities Financing Authority
(Community Program) 7.200 01/01/2012 02/01/2005 1 25,330
- -------------------------------------------------------------------------------------------------------------------
20,000 CA Health Facilities Financing Authority
(Mercy Senior Hsg.) 5.800 12/01/2018 12/01/2005 1 20,226
- -------------------------------------------------------------------------------------------------------------------
500,000 CA Health Facilities Financing Authority
(Scripps Research Institute), Series A 6.300 07/01/2009 07/01/2005 1 511,400
- -------------------------------------------------------------------------------------------------------------------
10,000 CA Health Facilities Financing Authority
(Small Facilities Loan), Series A 6.700 03/01/2011 03/01/2005 1 10,023
17 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL EFFECTIVE VALUE
AMOUNT COUPON MATURITY MATURITY* SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 30,000 CA HFA (Multifamily Hsg.) 5.450% 08/01/2028 08/01/2010 1 $ 30,978
- -------------------------------------------------------------------------------------------------------------------
10,000 CA HFA (Multifamily Hsg.) 5.950 08/01/2028 02/01/2009 1 10,351
- -------------------------------------------------------------------------------------------------------------------
200,000 CA HFA (Multifamily Hsg.) 6.050 08/01/2016 08/01/2006 1 212,044
- -------------------------------------------------------------------------------------------------------------------
55,000 CA HFA (Multifamily Hsg.) 6.050 08/01/2038 02/01/2009 1 56,920
- -------------------------------------------------------------------------------------------------------------------
15,000 CA HFA (Multifamily Hsg.) 6.150 08/01/2022 08/01/2006 1 15,628
- -------------------------------------------------------------------------------------------------------------------
25,000 CA HFA (Multifamily Hsg.) 6.300 08/01/2026 02/01/2008 1 25,802
- -------------------------------------------------------------------------------------------------------------------
10,000 CA HFA (Single Family Mtg.), Series A 5.300 08/01/2018 02/01/2010 1 10,457
- -------------------------------------------------------------------------------------------------------------------
10,000 CA HFA (Single Family Mtg.), Series B 6.200 08/01/2014 10/01/2007 1 10,093
- -------------------------------------------------------------------------------------------------------------------
465,000 CA HFA, Series B 7.125 08/01/2024 02/01/2005 1 488,292
- -------------------------------------------------------------------------------------------------------------------
5,000 CA HFA, Series B-1 5.200 08/01/2011 08/01/2009 1 5,076
- -------------------------------------------------------------------------------------------------------------------
45,000 CA Loan Purchasing Finance Authority 5.600 10/01/2014 04/01/2005 1 45,332
- -------------------------------------------------------------------------------------------------------------------
30,000 CA Pollution Control Financing Authority
(Sacramento Biosolids Facility) 5.300 12/01/2017 12/01/2012 1 32,112
- -------------------------------------------------------------------------------------------------------------------
130,000 CA Pollution Control Financing Authority
(San Diego Gas & Electric Company) 5.850 06/01/2021 06/01/2005 1 131,269
- -------------------------------------------------------------------------------------------------------------------
20,000 CA Pollution Control Financing Authority
(Southern California Edison Company) 5.550 09/01/2031 09/01/2011 1 21,716
- -------------------------------------------------------------------------------------------------------------------
375,000 CA Pollution Control Financing Authority
(Southern California Edison Company) 6.000 07/01/2027 07/01/2005 1 379,005
- -------------------------------------------------------------------------------------------------------------------
700,000 CA Pollution Control Financing Authority
(Southern California Edison Company) 6.400 12/01/2024 12/01/2005 1 709,107
- -------------------------------------------------------------------------------------------------------------------
445,000 CA Pollution Control Financing Authority
(Southern California Edison Company) 6.400 12/01/2024 06/01/2005 1 446,006
- -------------------------------------------------------------------------------------------------------------------
200,000 CA Pollution Control Financing Authority
(Southern California Edison Company) 6.400 12/01/2024 06/01/2005 1 204,900
- -------------------------------------------------------------------------------------------------------------------
10,000 CA Pollution Control Financing Authority
(Southern California Edison Company) 6.900 12/01/2017 12/01/2005 1 10,127
- -------------------------------------------------------------------------------------------------------------------
20,000 CA Pollution Control Financing Authority
(Southern California Water Company) 5.500 12/01/2026 12/01/2005 1 20,234
- -------------------------------------------------------------------------------------------------------------------
25,000 CA Public Works
(Department of Corrections) 5.250 01/01/2021 01/01/2006 1 25,607
- -------------------------------------------------------------------------------------------------------------------
1,000,000 CA Public Works
(Department of Corrections) 5.500 01/01/2017 01/01/2006 1 1,047,440
- -------------------------------------------------------------------------------------------------------------------
35,000 CA Public Works
(Department of Corrections) 5.500 06/01/2019 06/01/2006 1 35,778
- -------------------------------------------------------------------------------------------------------------------
200,000 CA Public Works
(Department of Corrections) 5.500 06/01/2019 06/01/2005 1 204,448
- -------------------------------------------------------------------------------------------------------------------
25,000 CA Public Works
(Department of Food & Agriculture) 5.400 06/01/2013 06/01/2005 1 25,235
- -------------------------------------------------------------------------------------------------------------------
335,000 CA Public Works
(Department of Justice Building) 5.625 05/01/2020 05/01/2005 1 340,893
- -------------------------------------------------------------------------------------------------------------------
15,000 CA Public Works
(Dept. of Corrections-State Prison) 5.500 06/01/2019 06/01/2006 1 15,322
- -------------------------------------------------------------------------------------------------------------------
120,000 CA Public Works (State Universities) 5.500 12/01/2018 12/01/2005 1 121,385
18 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
PRINCIPAL EFFECTIVE VALUE
AMOUNT COUPON MATURITY MATURITY* SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 25,000 CA Public Works (State Universities) 5.500% 06/01/2021 06/01/2005 1 $ 25,172
- -------------------------------------------------------------------------------------------------------------------
30,000 CA Public Works (State Universities) 5.500 06/01/2021 06/01/2005 1 30,291
- -------------------------------------------------------------------------------------------------------------------
15,000 CA Resource Efficiency Financing Authority 6.000 07/01/2017 07/01/2005 1 15,340
- -------------------------------------------------------------------------------------------------------------------
100,000 CA Statewide CDA (Bouquet Canyon) 5.300 07/01/2018 07/01/2010 1 104,532
- -------------------------------------------------------------------------------------------------------------------
95,000 CA Statewide CDA (CA Odd Fellow Hsg.) 5.375 10/01/2013 10/01/2005 1 95,979
- -------------------------------------------------------------------------------------------------------------------
25,000 CA Statewide CDA (CA Odd Fellow Hsg.) 5.500 10/01/2023 10/01/2005 1 25,204
- -------------------------------------------------------------------------------------------------------------------
400,000 CA Statewide CDA (Fairfield Apartments) 6.500 01/01/2016 10/10/2011 2 407,960
- -------------------------------------------------------------------------------------------------------------------
25,000 CA Statewide CDA
(Sutter Health Obligated Group) 5.500 08/15/2022 08/15/2005 1 25,877
- -------------------------------------------------------------------------------------------------------------------
40,000 CA Statewide CDA COP
(Motion Picture & TV Fund) 5.375 01/01/2020 07/01/2005 1 40,478
- -------------------------------------------------------------------------------------------------------------------
25,000 CA Statewide CDA COP
(Salk Institute for Biological Studies) 6.200 07/01/2024 07/01/2005 1 25,573
- -------------------------------------------------------------------------------------------------------------------
500,000 CA Statewide CDA COP INFLOS 9.293 6 10/01/2011 03/15/2010 3 622,160
- -------------------------------------------------------------------------------------------------------------------
175,000 CA Statewide Financing Authority
Tobacco Settlement (TASC) 5.625 05/01/2029 04/04/2011 2 169,915
- -------------------------------------------------------------------------------------------------------------------
95,000 CA Statewide Financing Authority
Tobacco Settlement (TASC) 5.625 05/01/2029 07/30/2010 2 92,239
- -------------------------------------------------------------------------------------------------------------------
25,000 CA Valley Health System COP 6.875 05/15/2023 05/15/2005 1 25,079
- -------------------------------------------------------------------------------------------------------------------
295,000 CA Valley Health System, Series A 6.500 05/15/2025 05/15/2008 1 307,437
- -------------------------------------------------------------------------------------------------------------------
1,000,000 CA Veterans GO, Series B 5.450 12/01/2017 12/01/2005 1 1,035,010
- -------------------------------------------------------------------------------------------------------------------
90,000 CA Veterans GO, Series BH 5.500 12/01/2024 12/01/2005 1 90,777
- -------------------------------------------------------------------------------------------------------------------
135,000 CA Veterans GO, Series BH 5.600 12/01/2032 12/01/2005 1 135,807
- -------------------------------------------------------------------------------------------------------------------
50,000 CA Veterans GO, Series BP 5.500 12/01/2026 06/01/2005 1 50,027
- -------------------------------------------------------------------------------------------------------------------
10,000 CA Veterans GO, Series BT 5.100 12/01/2013 12/01/2006 1 10,181
- -------------------------------------------------------------------------------------------------------------------
140,000 CA Veterans GO, Series BX 5.500 12/01/2031 06/01/2007 1 143,550
- -------------------------------------------------------------------------------------------------------------------
15,000 CA Veterans GO, Series BZ 5.350 12/01/2021 06/01/2008 1 15,440
- -------------------------------------------------------------------------------------------------------------------
50,000 CA Water Resource Devel. GO, Series N 5.500 06/01/2011 06/02/2005 1 50,116
- -------------------------------------------------------------------------------------------------------------------
50,000 CA Water Resource Devel. GO, Series Q 5.000 03/01/2016 03/02/2005 1 50,060
- -------------------------------------------------------------------------------------------------------------------
735,000 Calaveras County Special Tax
Community Facilities District No. 2 7.000 09/01/2026 09/01/2011 1 816,438
- -------------------------------------------------------------------------------------------------------------------
10,000 Carlsbad Hsg. & Redevel. Commission
Tax Allocation 5.250 09/01/2019 03/01/2005 1 10,122
- -------------------------------------------------------------------------------------------------------------------
85,000 Castaic Union School District 8.500 10/01/2013 04/01/2005 1 85,300
- -------------------------------------------------------------------------------------------------------------------
5,000 Central CA Joint Powers Health Financing
Authority COP (FCH/CCH/SCH/CALC/SMCH
Obligated Group) 5.500 02/01/2015 02/01/2005 1 5,004
- -------------------------------------------------------------------------------------------------------------------
15,000 Chico (Walker Senior Hsg. Corp.) 5.700 11/01/2023 11/01/2005 1 15,162
- -------------------------------------------------------------------------------------------------------------------
15,000 Clayton Redevel. Agency 5.500 08/01/2024 02/01/2005 1 15,221
- -------------------------------------------------------------------------------------------------------------------
595,000 Coalinga Regional Medical Center COP 5.000 09/01/2014 09/01/2008 3 594,887
- -------------------------------------------------------------------------------------------------------------------
95,000 Contra Costa County Multifamily Hsg.
(Crescent Park Apartments) 7.800 12/20/2014 06/20/2005 1 99,943
- -------------------------------------------------------------------------------------------------------------------
30,000 Crescent City Public Financing Authority 7.750 09/15/2012 09/15/2005 1 30,070
19 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL EFFECTIVE VALUE
AMOUNT COUPON MATURITY MATURITY* SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 20,000 Culver City Unified School District GO 5.700% 08/01/2025 08/01/2007 1 $ 21,588
- -------------------------------------------------------------------------------------------------------------------
25,000 Cupertino Union School District GO 5.600 08/01/2021 08/01/2005 1 25,306
- -------------------------------------------------------------------------------------------------------------------
15,000 El Centro Redevel. Agency 5.500 11/01/2026 11/01/2008 1 15,989
- -------------------------------------------------------------------------------------------------------------------
145,000 Emeryville Public Financing Authority 6.200 09/01/2025 09/01/2006 1 150,443
- -------------------------------------------------------------------------------------------------------------------
175,000 Fontana Public Finance Authority, Series A 5.625 09/01/2024 09/01/2005 1 177,616
- -------------------------------------------------------------------------------------------------------------------
30,000 Garden Grove COP
(Bahia Village/Emerald Isle) 5.700 08/01/2023 08/01/2005 1 30,520
- -------------------------------------------------------------------------------------------------------------------
45,000 Hayward Improvement Bond Act 1915 7.100 09/02/2018 03/02/2005 1 45,985
- -------------------------------------------------------------------------------------------------------------------
5,000 Horicon Elementary School District 6.100 08/01/2021 08/01/2007 1 5,242
- -------------------------------------------------------------------------------------------------------------------
10,000 Indian Wells Redevel. Agency Tax Allocation 5.375 12/01/2022 12/01/2005 1 10,434
- -------------------------------------------------------------------------------------------------------------------
280,000 Lake Elsinore Public Financing Authority,
Series F 7.100 09/01/2020 09/01/2007 1 303,713
- -------------------------------------------------------------------------------------------------------------------
15,000 Lakeside Union Elementary School District 6.750 09/01/2026 03/01/2005 1 15,328
- -------------------------------------------------------------------------------------------------------------------
10,000 Loma Linda Collateralized Loan (Redlands) 7.375 06/01/2009 06/01/2005 1 10,127
- -------------------------------------------------------------------------------------------------------------------
120,000 Loma Linda Hospital
(Loma Linda University Medical Center) 5.375 12/01/2022 06/01/2005 1 122,186
- -------------------------------------------------------------------------------------------------------------------
295,000 Long Beach Harbor Department 5.375 05/15/2020 05/15/2007 1 302,797
- -------------------------------------------------------------------------------------------------------------------
50,000 Los Angeles County COP 5.800 12/01/2023 06/01/2005 1 50,391
- -------------------------------------------------------------------------------------------------------------------
10,000 Los Angeles County Public Works
Financing Authority 5.250 12/01/2016 06/01/2005 1 10,121
- -------------------------------------------------------------------------------------------------------------------
10,000 Los Angeles Department of Airports
(Ontario International Airport) 6.000 05/15/2026 05/15/2006 1 10,486
- -------------------------------------------------------------------------------------------------------------------
15,000 Los Angeles Mtg. (Section 8) 5.350 07/01/2022 07/01/2005 1 15,010
- -------------------------------------------------------------------------------------------------------------------
100,000 Los Angeles Regional Airports
Improvement Corp. (Laxfuel Corp.) 5.250 01/01/2023 01/01/2012 1 104,321
- -------------------------------------------------------------------------------------------------------------------
20,000 Los Angeles Regional Airports
Improvement Corp. (Laxfuel Corp.) 6.375 01/01/2024 07/01/2005 1 20,256
- -------------------------------------------------------------------------------------------------------------------
175,000 Los Angeles Single Family Mtg.
(Government National Mortgage Assn.
& FNMA Mtg. Backed), Series A 6.875 06/01/2025 06/01/2005 1 175,063
- -------------------------------------------------------------------------------------------------------------------
35,000 M-S-R Public Power Agency (San Juan) 6.000 07/01/2022 07/01/2005 1 35,518
- -------------------------------------------------------------------------------------------------------------------
10,000 Madera County COP
(Valley Children's Hospital) 5.750 03/15/2028 03/15/2005 1 10,237
- -------------------------------------------------------------------------------------------------------------------
50,000 Merced Irrigation District 6.200 09/01/2016 09/01/2005 1 51,569
- -------------------------------------------------------------------------------------------------------------------
10,000 Milpitas Improvement Bond Act 1915 5.700 09/02/2018 03/02/2005 1 10,317
- -------------------------------------------------------------------------------------------------------------------
115,000 Montclair Redevel. Agency Tax Allocation
(Redevel. Project Area III) 5.500 12/01/2027 12/01/2006 1 122,814
- -------------------------------------------------------------------------------------------------------------------
10,000 Monterey County COP (Sheriffs Facility) 5.000 12/01/2014 12/01/2005 1 10,071
- -------------------------------------------------------------------------------------------------------------------
10,000 Monterey Joint Powers Financing Authority
(Materials Recovery Facilities) 5.500 03/01/2010 03/01/2005 1 10,166
- -------------------------------------------------------------------------------------------------------------------
45,000 Monterey Joint Powers Financing Authority
(Materials Recovery Facilities) 5.600 03/01/2012 03/01/2005 1 45,964
- -------------------------------------------------------------------------------------------------------------------
50,000 Monterey Joint Powers Financing Authority
(Materials Recovery Facilities) 5.600 03/01/2013 03/01/2005 1 51,191
20 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
PRINCIPAL EFFECTIVE VALUE
AMOUNT COUPON MATURITY MATURITY* SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 50,000 Monterey Joint Powers Financing Authority
(Materials Recovery Facilities) 5.700% 03/01/2015 03/01/2005 1 $ 51,434
- -------------------------------------------------------------------------------------------------------------------
20,000 Monterey Joint Powers Financing Authority
(Materials Recovery Facilities) 5.700 03/01/2016 03/01/2005 1 20,622
- -------------------------------------------------------------------------------------------------------------------
55,000 Moreno Valley Special Tax
(Towngate Community Facilities) 6.125 12/01/2021 06/01/2005 1 55,721
- -------------------------------------------------------------------------------------------------------------------
25,000 Morgan Hill Redevel. Agency
(LaCrosse Village) 6.450 12/01/2027 12/01/2005 1 26,057
- -------------------------------------------------------------------------------------------------------------------
120,000 Northern CA Tobacco Securitization
Authority (TASC), Series B 5.000 06/01/2028 04/26/2010 2 111,859
- -------------------------------------------------------------------------------------------------------------------
70,000 Norwalk Community Facilities Financing
Authority, Series B 7.400 09/15/2025 09/15/2005 1 72,985
- -------------------------------------------------------------------------------------------------------------------
200,000 Oakland GO 5.875 06/15/2019 06/15/2005 1 206,534
- -------------------------------------------------------------------------------------------------------------------
15,000 Oakland GO 6.000 06/15/2017 06/15/2005 1 15,339
- -------------------------------------------------------------------------------------------------------------------
50,000 Olivenhain Municipal Water District
Bond Act 1915 5.450 09/02/2027 09/02/2009 1 51,613
- -------------------------------------------------------------------------------------------------------------------
70,000 Orange County Recovery COP 6.000 07/01/2026 07/01/2006 1 74,780
- -------------------------------------------------------------------------------------------------------------------
40,000 Palm Desert Financing Authority Various
Assessment & Community Facilities Districts 6.000 10/01/2020 10/01/2009 1 41,400
- -------------------------------------------------------------------------------------------------------------------
40,000 Palm Springs Unified School District GO 5.300 02/01/2017 02/01/2005 1 41,352
- -------------------------------------------------------------------------------------------------------------------
15,000 Paramount Multifamily Hsg.
(Prince Twin Towers Property) 5.700 02/20/2033 08/20/2009 1 15,410
- -------------------------------------------------------------------------------------------------------------------
125,000 Pittsburg Infrastructure Financing
Authority, Series B 6.000 09/02/2024 09/02/2010 1 128,801
- -------------------------------------------------------------------------------------------------------------------
25,000 R.E. Badger Water Facilities Financing
Authority 5.750 10/01/2024 10/01/2007 1 27,242
- -------------------------------------------------------------------------------------------------------------------
25,000 Rancho Mirage Redevel. Agency Tax
Allocation (Whitewater Redevel.) 5.000 04/01/2024 04/01/2005 1 25,240
- -------------------------------------------------------------------------------------------------------------------
500,000 Riverside County Public Financing
Authority COP 5.750 05/15/2019 05/15/2009 1 527,925
- -------------------------------------------------------------------------------------------------------------------
590,000 Riverside County Public Financing
Authority Improvement Bond Act of 1915
(Rancho Village) 6.250 09/02/2013 08/12/2010 2 632,816
- -------------------------------------------------------------------------------------------------------------------
10,000 Rosemead Redevel. Agency 5.500 10/01/2018 10/01/2005 1 10,082
- -------------------------------------------------------------------------------------------------------------------
110,000 Rosemead Redevel. Agency 5.600 10/01/2033 10/01/2005 1 110,642
- -------------------------------------------------------------------------------------------------------------------
750,000 Roseville Woodcreek West Community
Facility 6.700 09/01/2025 09/01/2011 1 799,785
- -------------------------------------------------------------------------------------------------------------------
50,000 Sacramento County Airport System, Series A 5.900 07/01/2024 07/01/2006 1 52,960
- -------------------------------------------------------------------------------------------------------------------
60,000 Sacramento Improvement Bond Act
(Willowcreek II) 6.700 09/02/2022 03/02/2005 1 61,887
- -------------------------------------------------------------------------------------------------------------------
250,000 Sacramento Power Authority (Cogeneration) 6.000 07/01/2022 07/01/2006 1 262,643
- -------------------------------------------------------------------------------------------------------------------
205,000 Sacramento Special Tax
(Community Facilities District No. 97-1) 6.750 09/01/2027 09/01/2005 1 212,804
- -------------------------------------------------------------------------------------------------------------------
10,000 Sacramento Special Tax
(Community Facilities District No. 97-1) 5.700 12/01/2020 12/01/2009 1 10,277
21 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL EFFECTIVE VALUE
AMOUNT COUPON MATURITY MATURITY* SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 85,000 Salinas Redevel. Agency Tax Allocation
(Central City Revitalization) 5.500% 11/01/2023 11/01/2008 1 $ 90,838
- -------------------------------------------------------------------------------------------------------------------
105,000 San Bernardino County COP
(Medical Center) 5.500 08/01/2024 08/01/2006 1 106,773
- -------------------------------------------------------------------------------------------------------------------
75,000 San Bernardino Joint Powers
Financing Authority (California
Department of Transportation Lease) 5.500 12/01/2020 12/01/2007 1 77,593
- -------------------------------------------------------------------------------------------------------------------
25,000 San Bernardino Joint Powers Financing
Authority (Department of Transportation) 5.500 12/01/2020 12/01/2005 1 26,111
- -------------------------------------------------------------------------------------------------------------------
40,000 San Buenaventura Public Facilities
Financing Authority 5.750 06/01/2014 06/01/2005 1 41,272
- -------------------------------------------------------------------------------------------------------------------
20,000 San Diego County Hsg.
(Orange Glen Apartments) 6.150 08/01/2020 08/01/2005 1 20,576
- -------------------------------------------------------------------------------------------------------------------
50,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 06/01/2018 06/01/2005 1 50,519
- -------------------------------------------------------------------------------------------------------------------
15,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 09/01/2018 09/01/2005 1 15,173
- -------------------------------------------------------------------------------------------------------------------
100,000 San Diego Public Facilities Financing
Authority 5.000 05/15/2025 05/15/2007 1 101,511
- -------------------------------------------------------------------------------------------------------------------
25,000 San Diego Public Facilities Financing
Authority 5.250 05/15/2020 05/15/2005 1 25,162
- -------------------------------------------------------------------------------------------------------------------
40,000 San Diego Sewer 5.000 05/15/2023 05/15/2005 1 40,231
- -------------------------------------------------------------------------------------------------------------------
50,000 San Diego Sewer, Series A 5.250 05/15/2020 05/15/2005 1 50,363
- -------------------------------------------------------------------------------------------------------------------
50,000 San Francisco Bay Area Rapid Transit District 5.500 07/01/2015 07/01/2005 1 51,142
- -------------------------------------------------------------------------------------------------------------------
50,000 San Francisco City & County
Airports Commission 5.500 05/01/2015 05/01/2008 1 53,371
- -------------------------------------------------------------------------------------------------------------------
20,000 San Francisco City & County
Airports Commission 5.500 05/01/2026 05/01/2007 1 20,754
- -------------------------------------------------------------------------------------------------------------------
50,000 San Francisco City & County
Airports Commission 5.500 05/01/2026 05/01/2007 1 51,886
- -------------------------------------------------------------------------------------------------------------------
250,000 San Francisco City & County
Airports Commission 5.625 05/01/2021 05/01/2008 1 262,368
- -------------------------------------------------------------------------------------------------------------------
110,000 San Francisco City & County
Airports Commission 5.750 05/01/2020 05/01/2005 1 111,846
- -------------------------------------------------------------------------------------------------------------------
45,000 San Francisco City & County
Airports Commission 5.900 05/01/2025 05/01/2005 1 45,788
- -------------------------------------------------------------------------------------------------------------------
90,000 San Francisco City & County
Redevel. Agency 6.750 07/01/2025 07/01/2005 1 92,096
- -------------------------------------------------------------------------------------------------------------------
10,000 San Francisco City & County Redevel.
Agency (FHA Insured-Section 8) 6.850 07/01/2024 07/01/2005 1 10,022
- -------------------------------------------------------------------------------------------------------------------
40,000 San Francisco City & County Redevel.
Agency (South Beach) 5.700 03/01/2029 03/01/2006 1 40,422
- -------------------------------------------------------------------------------------------------------------------
25,000 San Gabriel Valley Schools Financing
Authority (Pomona Unified School District) 5.800 02/01/2019 02/01/2005 1 25,565
22 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
PRINCIPAL EFFECTIVE VALUE
AMOUNT COUPON MATURITY MATURITY* SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 25,000 San Gabriel Valley Schools Financing
Authority (Pomona Unified School District) 5.850% 02/01/2020 02/01/2005 1 $ 25,573
- -------------------------------------------------------------------------------------------------------------------
100,000 San Gabriel Valley Schools Financing
Authority (Pomona Unified School District) 5.875 02/01/2021 02/01/2006 1 102,311
- -------------------------------------------------------------------------------------------------------------------
50,000 San Jacinto Redevel. Agency 6.250 12/01/2023 12/01/2005 1 50,694
- -------------------------------------------------------------------------------------------------------------------
70,000 San Jose Finance Authority, Series B 5.625 11/15/2018 05/15/2005 1 70,162
- -------------------------------------------------------------------------------------------------------------------
45,000 San Jose Redevel. Agency 5.750 08/01/2024 02/01/2005 1 45,559
- -------------------------------------------------------------------------------------------------------------------
10,000 San Jose Redevel. Agency Tax Allocation 5.000 08/01/2020 02/01/2006 1 10,104
- -------------------------------------------------------------------------------------------------------------------
5,000 San Jose-Santa Clara Water
Financing Authority 5.375 11/15/2020 11/15/2005 1 5,162
- -------------------------------------------------------------------------------------------------------------------
15,000 San Pablo Redevel. Agency 6.000 12/01/2017 06/01/2005 1 15,339
- -------------------------------------------------------------------------------------------------------------------
10,000 San Pablo Redevel. Agency
(Tax Allocation-Merged Project Area) 5.250 12/01/2023 12/01/2006 1 10,218
- -------------------------------------------------------------------------------------------------------------------
50,000 Santa Cruz Sewer
(Secondary Wastewater Treatment) 5.700 11/01/2023 05/01/2005 1 50,119
- -------------------------------------------------------------------------------------------------------------------
990,000 Santaluz Special Tax Community
Facilities District No. 2 6.375 09/01/2030 09/01/2007 1 1,012,572
- -------------------------------------------------------------------------------------------------------------------
70,000 South Tahoe Joint Powers
Financing Authority 5.750 10/01/2025 10/01/2005 1 72,839
- -------------------------------------------------------------------------------------------------------------------
200,000 South Tahoe Joint Powers
Financing Authority 6.000 10/01/2028 10/01/2005 1 207,632
- -------------------------------------------------------------------------------------------------------------------
240,000 Southern CA Public Power Authority 5.500 07/01/2020 07/01/2005 1 240,605
- -------------------------------------------------------------------------------------------------------------------
70,000 Southern CA Public Power Authority 5.500 07/01/2020 07/01/2005 1 70,149
- -------------------------------------------------------------------------------------------------------------------
5,000 Southern CA Public Power Authority 5.500 07/01/2020 07/01/2005 1 5,006
- -------------------------------------------------------------------------------------------------------------------
85,000 Southern CA Public Power Authority 6.000 07/01/2018 07/01/2005 1 85,249
- -------------------------------------------------------------------------------------------------------------------
250,000 Southern CA Public Power Authority 7.000 07/01/2009 07/01/2005 1 255,738
- -------------------------------------------------------------------------------------------------------------------
90,000 Southern CA Tobacco Securitization
Authority (TASC) 5.500 06/01/2036 08/18/2014 3 80,818
- -------------------------------------------------------------------------------------------------------------------
25,000 Stockton Health Facilities
(Dameron Hospital Association) 5.700 12/01/2014 12/01/2007 1 26,330
- -------------------------------------------------------------------------------------------------------------------
55,000 Stockton Public Financing Authority,
Series B 6.350 09/02/2010 03/02/2005 1 59,023
- -------------------------------------------------------------------------------------------------------------------
750,000 Tejon Ranch Public Facilities
Finance Authority Special Tax
(Community Facilities District No.1) 7.200 09/01/2030 03/01/2005 1 773,145
- -------------------------------------------------------------------------------------------------------------------
50,000 Tracy Community Facilities District
Special Tax (Plan C Properties) 5.700 08/01/2023 08/02/2010 1 51,514
- -------------------------------------------------------------------------------------------------------------------
30,000 Tracy COP (Community Park & Civic Center) 6.625 03/01/2018 03/01/2005 1 30,096
- -------------------------------------------------------------------------------------------------------------------
20,000 Tri-City Hospital District 6.000 02/01/2022 02/01/2005 1 20,280
- -------------------------------------------------------------------------------------------------------------------
250,000 Vacaville Public Financing Authority 5.400 09/01/2022 09/01/2005 1 253,963
- -------------------------------------------------------------------------------------------------------------------
110,000 Vacaville Redevel. Agency
(Vacaville Community Hsg.) 6.000 11/01/2024 11/01/2010 1 116,766
- -------------------------------------------------------------------------------------------------------------------
150,000 Vallejo COP (Marine World Foundation) 7 7.000 02/01/2017 02/01/2007 1 157,268
- -------------------------------------------------------------------------------------------------------------------
125,000 Washington Township Hospital District 5.500 07/01/2018 07/01/2005 1 125,694
23 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL EFFECTIVE VALUE
AMOUNT COUPON MATURITY MATURITY* SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 50,000 West Patterson Financing Authority
Special Tax 6.600% 09/01/2033 03/01/2008 1 $ 51,085
- ---------------------------------------------------------------------------------------------------------------
20,000 West Sacramento Improvement
Bond Act 1915 8.500 09/02/2017 11/01/2015 3 20,221
- ---------------------------------------------------------------------------------------------------------------
10,000 West Sacramento Special Tax
Community Facilities District 6.650 09/01/2019 03/01/2010 1 10,808
- ---------------------------------------------------------------------------------------------------------------
15,000 Western Municipal Water Districts 7.125 09/02/2014 03/02/2005 1 15,482
------------
33,359,086
- ---------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--6.6%
250,000 Puerto Rico Electric Power Authority 5.375 07/01/2030 07/01/2005 1 257,118
- ---------------------------------------------------------------------------------------------------------------
195,000 Puerto Rico HBFA 6.250 04/01/2029 04/01/2006 1 199,469
- ---------------------------------------------------------------------------------------------------------------
5,000 Puerto Rico HFC 7.300 10/01/2006 04/01/2005 1 5,013
- ---------------------------------------------------------------------------------------------------------------
5,000 Puerto Rico HFC 7.500 10/01/2015 04/01/2005 1 5,008
- ---------------------------------------------------------------------------------------------------------------
200,000 Puerto Rico Highway &
Transportation Authority 5.000 07/01/2022 07/01/2005 1 201,510
- ---------------------------------------------------------------------------------------------------------------
100,000 Puerto Rico ITEMECF
(Congeneration Facilities) 6.625 06/01/2026 06/01/2010 1 108,568
- ---------------------------------------------------------------------------------------------------------------
40,000 Puerto Rico Port Authority, Series D 6.000 07/01/2021 07/01/2005 1 40,228
- ---------------------------------------------------------------------------------------------------------------
570,000 Puerto Rico Port Authority, Series D 7.000 07/01/2014 07/01/2005 1 580,260
- ---------------------------------------------------------------------------------------------------------------
225,000 University of Puerto Rico, Series O 5.375 06/01/2030 06/01/2006 1 229,115
- ---------------------------------------------------------------------------------------------------------------
250,000 V.I. Public Finance Authority, Series A 5.250 10/01/2024 10/01/2014 1 266,063
- ---------------------------------------------------------------------------------------------------------------
50,000 V.I. Public Finance Authority, Series A 5.500 10/01/2022 10/01/2010 1 52,229
------------
1,944,581
- ---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $34,693,573)--119.5% 35,303,667
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(19.5%) (5,773,203)
------------
NET ASSETS--100.0% $29,530,464
============
FOOTNOTES TO STATEMENT OF INVESTMENTS
* Call Date, Put Date or Average Life of Sinking Fund, if applicable, as
detailed.
1. Optional call date; corresponds to the most conservative yield calculation.
2. Average life due to mandatory, or expected, sinking fund principal payments
prior to the applicable optional call date.
3. Average life due to mandatory, or expected, sinking fund principal payments
prior to maturity.
4. Represents a zero coupon bond.
5. When-issued security or forward commitment to be delivered and settled after
January 31, 2005. See Note 1 of Notes to Financial Statements.
6. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.
7. Illiquid security. The aggregate value of illiquid securities as of January
31, 2005 was $157,268, which represents 0.53% of the Fund's net assets.
See Note 5 of Notes to Financial Statements.
24 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
ABAG Association of Bay Area Governments HFC Housing Finance Corp.
CALC Community Alzheimer's Living Center INFLOS Inverse Floating Rate Securities
CCH Clovis Community Hospital ITEMECF Industrial, Tourist, Educational, Medical and
CDA Communities Development Authority Environmental Community Facilities
COP Certificates of Participation MSR Modesto Irrigation District of the City of
EFA Educational Facilities Authority Santa Clara and the City of Redding
FCH Fresno Community Hospital SCH Sierra Community Hospital
FHA Federal Housing Agency SMCH Sierra Meadows Convalescent Hospital
GO General Obligation TASC Tobacco Settlement Asset-Backed Bonds
HBFA Housing Bank and Finance Agency V.I. United States Virgin Islands
HFA Housing Finance Agency/Authority
- --------------------------------------------------------------------------------
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 Settlements $ 8,844,451 25.1%
Special Tax 4,671,698 13.2
Municipal Leases 3,320,135 9.4
General Obligation 3,204,643 9.1
Special Assessment 2,501,670 7.1
Hospital/Health Care 2,319,157 6.6
Multifamily Housing 2,071,026 5.9
Pollution Control 1,823,207 5.2
Marine/Aviation Facilities 1,737,559 4.9
Electric Utilities 1,387,501 3.9
Adult Living Facilities 563,313 1.6
Higher Education 521,953 1.5
Single Family Housing 489,489 1.4
Sales Tax Revenue 410,400 1.2
Hotels, Restaurants & Leisure 406,120 1.1
Sewer Utilities 298,211 0.8
Highways/Railways 252,652 0.7
Water Utilities 202,683 0.6
Gas Utilities 196,961 0.6
Student Loans 45,332 0.1
Higher Education 15,328 0.0
Resource Recovery 10,166 0.0
Not-for-Profit Organization 10,013 0.0
----------------------------
Total $35,303,667 100.0%
============================
25 | OPPENHEIMER LIMITED TERM 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 32.8%
AA 3.7
A 12.1
BBB 46.9
BB 0.3
B 0.1
Not Rated 4.1
------
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.
26 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
January 31, 2005
- ---------------------------------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------------------------------
Investments, at value (cost $34,693,573)--see accompanying statement
of investments $ 35,303,667
- ---------------------------------------------------------------------------------------
Receivables and other assets:
Interest 527,915
Investments sold 276,400
Shares of beneficial interest sold 176,367
Other 2,191
-------------
Total assets 36,286,540
- ---------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------
Bank overdraft 1,991
- ---------------------------------------------------------------------------------------
Payables and other liabilities:
Payable to conduit lender (see Note 6) 4,800,000
Investments purchased (including $253,229 purchased on a when-issued
basis or forward commitment) 1,892,211
Dividends 22,564
Shares of beneficial interest redeemed 20,181
Distribution and service plan fees 4,069
Interest expense 3,007
Shareholder communications 1,652
Trustees' compensation 885
Transfer and shareholder servicing agent fees 507
Other 9,009
-------------
Total liabilities 6,756,076
- ---------------------------------------------------------------------------------------
NET ASSETS $ 29,530,464
=============
- ---------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 8,575
- ---------------------------------------------------------------------------------------
Additional paid-in capital 28,801,514
- ---------------------------------------------------------------------------------------
Accumulated net investment income 130,975
- ---------------------------------------------------------------------------------------
Accumulated net realized loss on investments (20,694)
- ---------------------------------------------------------------------------------------
Net unrealized appreciation on investments 610,094
-------------
NET ASSETS $ 29,530,464
=============
27 | OPPENHEIMER LIMITED TERM 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 $19,777,287 and
5,743,443 shares of beneficial interest outstanding) $3.44
Maximum offering price per share (net asset value plus sales charge of 3.50% of offering price) $3.56
- ----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $793,647 and 226,350 shares of
beneficial interest outstanding) $3.51
- ----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $8,959,530 and 2,605,325 shares of
beneficial interest outstanding) $3.44
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $ 677,181
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 55,654
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 9,590
Class B 3,251
Class C 31,124
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,250
Class B 257
Class C 927
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 7,494
Class B 1,275
Class C 4,182
- --------------------------------------------------------------------------------
Interest expense 47,729
- --------------------------------------------------------------------------------
Legal, auditing and other professional fees 18,042
- --------------------------------------------------------------------------------
Trustees' compensation 5,186
- --------------------------------------------------------------------------------
Custodian fees and expenses 1,122
-----------
Total expenses 187,083
Less reduction to custodian expenses (419)
Less payments and waivers of expenses (71,195)
-----------
Net expenses 115,469
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 561,712
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized loss on investments (1,361)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 768,207
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,328,558
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS PERIOD
ENDED ENDED
JANUARY 31, 2005 JULY 31,
(UNAUDITED) 2004 1
- ---------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------
Net investment income $ 561,712 $ 220,274
- ---------------------------------------------------------------------------------------------
Net realized loss (1,361) (19,333)
- ---------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 768,207 (158,113)
-----------------------------
Net increase in net assets resulting from operations 1,328,558 42,828
- ---------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (345,199) (147,367)
Class B (11,779) (4,128)
Class C (117,582) (27,988)
- ---------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ---------------------------------------------------------------------------------------------
Net increase in net assets resulting from
beneficial interest transactions:
Class A 7,556,268 11,680,834
Class B 258,606 509,182
Class C 4,646,206 4,060,025
- ---------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------
Total increase 13,315,078 16,113,386
- ---------------------------------------------------------------------------------------------
Beginning of period 16,215,386 102,000 2
-----------------------------
End of period (including accumulated net investment income
of $130,975 and $43,823, respectively) $ 29,530,464 $ 16,215,386
=============================
1. For the period from February 25, 2004 (commencement of operations) to July
31, 2004.
2. Reflects the value of the Manager's initial seed money investment on February
9, 2004.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
STATEMENTS OF CASH FLOWS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2005
- --------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
- --------------------------------------------------------------------------------
Net increase in net assets from operations $ 1,328,558
- --------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets from
operations to net cash used in operating activities:
Purchase of investment securities (13,841,109)
Proceeds from disposition of investment securities 876,679
Premium amortization 122,932
Discount accretion (3,612)
Net realized loss on investments 1,361
Net change in unrealized appreciation on investments (768,207)
Increase in interest receivable (215,140)
Increase in other assets (301)
Decrease in payable for accrued expenses (9,872)
-------------
Net cash used in operating activities (12,508,711)
- --------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
- --------------------------------------------------------------------------------
Proceeds from bank borrowing 11,000,000
Payments on bank borrowing (10,800,000)
Proceeds from shares sold 13,179,549
Payment on shares redeemed (965,509)
Cash distributions paid (295,880)
-------------
Net cash provided by financing activities 12,118,160
- --------------------------------------------------------------------------------
Net decrease in cash (390,551)
- --------------------------------------------------------------------------------
Cash, beginning balance 388,560
-------------
Cash, ending balance $ (1,991)
=============
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of
dividends and distributions of $163,227.
Cash paid for interest on bank borrowings--$47,589.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A CLASS B
------------------------------ ------------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
JANUARY 31, 2005 JULY 31, JANUARY 31, 2005 JULY 31,
(UNAUDITED) 2004 1 (UNAUDITED) 2004 1
- -----------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 3.30 $ 3.35 $3.36 $3.35
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .09 2 .07 .08 2 .05
Net realized and unrealized gain (loss) .13 (.06) .13 -- 3
-------------------------------------------------------------
Total from investment operations .22 .01 .21 .05
- -----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.08) (.06) (.06) (.04)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 3.44 $ 3.30 $3.51 $3.36
=============================================================
TOTAL RETURN, AT NET ASSET VALUE 4 6.60% 0.21% 6.39% 1.60%
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $19,777 $11,627 $ 794 $ 510
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $15,339 $ 8,381 $ 648 $ 297
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income 5.27% 4.99% 4.53% 3.96%
Total expenses 1.38% 1.92% 2.60% 2.86%
Expenses after payments and waivers and
reduction to custodian expenses 0.80% 0.76% 1.55% 1.55%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 2% 2% 2% 2%
1. For the period from February 25, 2004 (commencement of operations) to July
31, 2004.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Less than $0.005 per share.
4. Assumes an investment at net asset value 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 return. 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.
5. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
SIX MONTHS PERIOD
ENDED ENDED
JANUARY 31, 2005 JULY 31,
CLASS C (UNAUDITED) 2004 1
- ------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 3.30 $ 3.35
- ------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .08 2 .05
Net realized and unrealized gain (loss) .12 (.06)
-------------------------
Total from investment operations .20 (.01)
- ------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.06) (.04)
-------------------------
Net asset value, end of period $ 3.44 $ 3.30
=========================
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 6.23% (0.16)%
- ------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $8,960 $4,079
- ------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $6,214 $2,044
- ------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 4.45% 3.92%
Total expenses 2.29% 2.93%
Expenses after payments and waivers and reduction to custodian expenses 1.55% 1.55%
- ------------------------------------------------------------------------------------------------------
Portfolio turnover rate 2% 2%
1. For the period from February 25, 2004 (commencement of operations) to July
31, 2004.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment at net asset value 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 return. 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.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Limited Term California Municipal Fund (the Fund) is a
non-diversified, open-end management investment company registered under the
Investment Company Act of 1940, as amended. The Fund's investment objective is
to seek as high a level of income exempt from federal income tax and California
individual income taxes as is consistent with its investment policies and
prudent investment management. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. As of January 31,
2005, 2,195,065 shares of Class A, 299 shares of Class B and 299 shares of Class
C were owned by the Manager and its affiliates, which represents 38.2%, 0.13%
and 0.01%, respectively, of the Fund's total shares outstanding of each class.
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
34 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
with remaining maturities of sixty days or less are valued at amortized cost
(which approximates market value).
- --------------------------------------------------------------------------------
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment can take place up to ten days or more after the trade date.
Normally the settlement date occurs within six months after the trade date;
however, the Fund may, from time to time, purchase securities whose settlement
date extends six months or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. The purchase of securities on a when-issued
basis or forward commitment may increase the volatility of the Fund's net asset
value to the extent the Fund executes such transactions while remaining
substantially fully invested. The Fund may also sell securities that it
purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of January 31, 2005, the Fund had purchased $253,229
of securities on a when-issued basis or forward commitment.
- --------------------------------------------------------------------------------
INVERSE FLOATING RATE SECURITIES. The Fund invests in inverse floating rate
securities that pay interest at a rate that varies inversely with short-term
interest rates. Certain of these securities may be leveraged, whereby the
interest rate varies inversely at a multiple of the change in short-term rates.
As interest rates rise, inverse floaters produce less current income. The price
of such securities is more volatile than comparable fixed rate securities. The
Fund will invest no more than 20% of its total assets in inverse floaters.
Inverse floaters amount to $622,160 as of January 31, 2005. Including the effect
of leverage, inverse floaters represent 1.55% of the Fund's total assets as of
January 31, 2005.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. There are certain risks arising from geographic
concentration in any state. Certain revenue or tax related events in a state may
impair the ability of certain issuers of municipal securities to pay principal
and interest on their obligations.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
35 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 $1,361 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 not utilize any capital loss
carryforward to offset realized capital gains. During the period ended July 31,
2004, the Fund did not utilize any capital loss carryforward to offset realized
capital gains.
As of July 31, 2004, the Fund had available for federal income tax
purposes post-October losses of $19,333.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are declared
daily and paid monthly. Capital gain distributions, if any, are declared and
paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts at a rate equal to the Federal
Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item, if
applicable, represents earnings on cash balances maintained by the Fund during
the period. Such interest expense and other custodian fees may be paid with
these earnings.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
36 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
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 PERIOD ENDED JULY 31, 2004 1,2
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------
CLASS A
Sold 2,411,767 $ 8,193,084 3,598,439 $ 12,034,579
Dividends and/or
distributions
reinvested 24,389 83,276 3,629 11,929
Redeemed (213,795) (720,092) (110,836) (365,674)
----------------------------------------------------------------
Net increase 2,222,361 $ 7,556,268 3,491,232 $ 11,680,834
================================================================
- ----------------------------------------------------------------------------------------
CLASS B
Sold 122,932 $ 425,614 288,947 $ 970,279
Dividends and/or
distributions
reinvested 2,321 8,043 829 2,769
Redeemed (50,509) (175,051) (138,468) (463,866)
----------------------------------------------------------------
Net increase 74,744 $ 258,606 151,308 $ 509,182
================================================================
- ----------------------------------------------------------------------------------------
CLASS C
Sold 1,374,460 $ 4,664,829 1,230,617 $ 4,042,094
Dividends and/or
distributions
reinvested 21,157 71,908 5,467 17,931
Redeemed (26,674) (90,531) -- --
----------------------------------------------------------------
Net increase 1,368,943 $ 4,646,206 1,236,084 $ 4,060,025
================================================================
1. For the period from February 25, 2004 (commencement of operations) to July
31, 2004.
2. The Fund sold 29,850 shares of Class A and 298 shares each of Class B and
Class C to the Manager upon seeding of the Fund on February 9, 2004.
- --------------------------------------------------------------------------------
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
$7,469,630 and $280,419, respectively
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.50% of the first $100 million of average daily net assets,
0.45% of the next $150 million of average daily net assets, 0.40% of the next
$1,750 million of average daily net assets, and 0.39% of average daily net
assets in excess of $2 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
$2,242 to OFS for services to the Fund.
37 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
OFFERING AND ORGANIZATIONAL COSTS. The Manager paid all offering and
organizational costs associated with the registration and seeding of 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 $15,725
and $80,967, respectively. Fees incurred by the Fund under the plans are
detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------------------
January 31, 2005 $1,748 $-- $3,625 $272
38 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. The Manager has voluntarily agreed to waive
management fees and/or reimburse the Fund for certain expenses so that "Total
Annual Fund Operating Expenses" will not exceed 0.80% for Class A shares and
1.55% for Class B, and Class C shares, respectively. During the six months ended
January 31, 2005, the Manager waived management fees and/or reimbursed fees of
the Fund in the amounts of $44,694, $3,424 and $23,077 for Class A, Class B and
Class C shares, respectively. The voluntary waivers described above may be
amended or withdrawn 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 one-third of its total
assets (including the amount borrowed) less all liabilities and indebtedness
other than borrowings to purchase portfolio securities, to meet redemption
obligations or for temporary and emergency purposes. The purchase of securities
with borrowed funds creates leverage in the Fund. Until terminated on January
21, 2005, the Fund had entered into an agreement which enabled it to participate
with certain other Oppenheimer funds in a committed, unsecured line of credit
with a bank, which permitted borrowings up to $540 million, collectively.
Interest was charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.75%. The Fund also paid a commitment fee equal to
its pro rata share of the average unutilized amount of the credit facility at a
rate of 0.09% per annum.
Effective January 21, 2005 the Fund entered into a Revolving Credit and
Security Agreement (the "Agreement") with a conduit lender and a bank which
enables it to participate with certain other Oppenheimer funds in a committed,
secured borrowing facility that permits borrowings of up to $800 million,
collectively. To secure the loan, the Fund pledges investment securities in
accordance with the terms of the Agreement. Interest is charged to the Fund,
based on its borrowings, at current commercial paper issuance rates (2.4038% as
of January 31, 2005). The Fund pays additional fees of 0.30% per annum on its
outstanding borrowings to manage and administer the facility and is allocated
its pro-rata share of a 0.13% per annum commitment fee for a liquidity backstop
facility with respect to the $800 million facility size.
39 | OPPENHEIMER LIMITED TERM CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
6. BORROWINGS Continued
For the six month period ended January 31, 2005, the average daily loan
balance was $3,657,065 at an average daily interest rate of 2.607%. The Fund had
borrowings outstanding of $4,800,000 at January 31, 2005 at an interest rate
of 2.4038%. The Fund had gross borrowings and gross loan repayments of
$11,000,000 and $10,800,000, 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 $5,700,000. The Fund paid $140
in fees and $40,001 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") excluding 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.
40 | OPPENHEIMER LIMITED TERM 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.
41 | OPPENHEIMER LIMITED TERM 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
The Board is responsible for approving nominees for election as trustees.
To assist in this task, the Board has designated the Audit Committee as the
nominating committee for the Board. It reviews and recommends nominees to the
Board. The Committee is comprised entirely of disinterested trustees as defined
in Section 2(a)(19) of the Investment Company Act of 1940.
The Audit Committee charter describes the responsibilities of the
Committee in nominating candidates for election as independent Trustees of the
Registrant. The Registrant's Board has adopted a written charter for the
Committee. A current copy of the Audit Committee charter is available to
shareholders on the OppenheimerFunds website at WWW.OPPENHEIMERFUNDS.COM.
Under the current policy, if the Board determines that a vacancy exists or
is likely to exist on the Board, the Audit Committee of the Board will consider
candidates for Board membership including recommended by Registrant
shareholders. The Audit Committee will consider nominees recommended by
independent Board members or recommended by any other Board members including
Board members affiliated with the Registrant's investment advisors. The
Committee may, upon Board approval, retain an executive search firm to assist in
screening potential candidates. Upon Board approval, the Audit Committee may
also use the services of legal, financial, or other external counsel that it
deems necessary or desirable in the screening process. Shareholders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., 6803 South Tucson Way, Centennial, CO
80112, to the attention of the Board of Trustees of the named Registrant, c/o
the Secretary of the Registrant.
The Committee's process for identifying and evaluating nominees for
trustees includes a number of factors. In screening candidates for board
membership, whether the candidate is
suggested by Board members, shareholders or others, the Committee considers the
candidate's professional experience, soundness of judgment, integrity, ability
to make independent, analytical inquiries, collegiality, willingness and ability
to devote the time required to perform Board activities adequately, ability to
represent the interests of all shareholders of the Registrant, and diversity
relative to the board's composition. Candidates are expected to provide a mix of
attributes, experience, perspective and skills necessary to effectively advance
the interests of shareholders.
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 Limited Term 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