UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-4054
OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
ROBERT G. ZACK, ESQ.
OPPENHEIMERFUNDS, INC.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: SEPTEMBER 30
Date of reporting period: OCTOBER 1, 2004 - MARCH 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN INDUSTRIES
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Tobacco Settlements 26.8%
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Higher Education 13.6
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Non-Profit Organization 10.9
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Highways/Railways 8.9
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Hospital/Health Care 7.4
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General Obligation 5.6
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Electric Utilities 5.2
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Adult Living Facilities 5.1
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Education 4.5
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Multifamily Housing 2.1
Portfolio holdings and allocations are subject to change. Percentages are as of
March 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 10.4%
AA 16.5
A 9.5
BBB 39.8
BB 8.7
B 1.5
CCC 2.1
Not Rated 11.5
Portfolio holdings and allocations are subject to change. Percentages are as of
March 31, 2005, and are dollar-weighted based on total investments. Securities
rated by any rating organization are included in the equivalent S&P rating
category. The allocation includes rated securities and those not rated by a
national rating organization but to which the ratings above have been assigned
by the Manager for internal purposes as being comparable, in the Manager's
judgment, to securities rated by a rating agency in the same category.
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12 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES
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Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. THIS SEMIANNUAL REPORT MUST
BE PRECEDED OR ACCOMPANIED BY THE CURRENT PROSPECTUS OF OPPENHEIMER AMT-FREE NEW
YORK MUNICIPALS. BEFORE INVESTING IN ANY OF THE OPPENHEIMER FUNDS, INVESTORS
SHOULD CAREFULLY CONSIDER A FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND
EXPENSES. FUND PROSPECTUSES CONTAIN THIS AND OTHER INFORMATION ABOUT THE FUNDS.
FOR MORE INFORMATION, ASK YOUR FINANCIAL ADVISOR, CALL US AT 1.8000.525.7048, OR
VISIT OUR WEBSITE AT WWW.OPPENHEIMERFUNDS.COM. READ PROSPECTUSES CAREFULLY
BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 8/16/84. The average
annual total returns are shown net of the applicable 4.75% maximum initial sales
charge.
CLASS B shares of the Fund were first publicly offered on 3/1/93. The average
annual total returns are shown net of the applicable contingent deferred sales
charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A
shares 72 months after purchase, the "since inception" return for Class B uses
Class A performance for the period after conversion. Class B shares are subject
to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 8/29/95. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
13 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended March 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 AMT-FREE NEW YORK MUNICIPALS
the Statement of Additional Information). Therefore, the "hypothetical" lines of
the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(10/1/04) (3/31/05) MARCH 31, 2005
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,044.50 $4.70
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,020.34 4.64
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,040.40 8.68
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Class B Hypothetical 1,000.00 1,016.45 8.58
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,040.40 8.63
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,016.50 8.53
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 182/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended March 31, 2005 are as follows:
CLASS EXPENSE RATIOS
- ---------------------------
Class A 0.92%
- ---------------------------
Class B 1.70
- ---------------------------
Class C 1.69
15 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS March 31, 2005 / Unaudited
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES--101.8%
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK--93.0%
$ 14,500,000 Albany IDA (Charitable Leadership) 5.750% 07/01/2026 $ 14,915,570
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Albany IDA (Charitable Leadership) 6.000 07/01/2019 1,074,350
- --------------------------------------------------------------------------------------------------------------------------
1,140,000 Albany IDA (Sage Colleges) 5.250 04/01/2019 1,157,271
- --------------------------------------------------------------------------------------------------------------------------
500,000 Albany IDA (Sage Colleges) 5.300 04/01/2029 504,780
- --------------------------------------------------------------------------------------------------------------------------
30,000 Albany Parking Authority 5.625 07/15/2025 31,646
- --------------------------------------------------------------------------------------------------------------------------
30,000 Allegany County IDA (Houghton College) 5.250 01/15/2024 30,537
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Amherst IDA (Daemen College) 6.000 10/01/2021 1,055,460
- --------------------------------------------------------------------------------------------------------------------------
5,895,000 Brookhaven IDA (Alternatives for Children) 7.550 02/01/2033 6,167,644
- --------------------------------------------------------------------------------------------------------------------------
9,235,000 Brookhaven IDA (Dowling College) 6.750 11/01/2032 9,273,048
- --------------------------------------------------------------------------------------------------------------------------
350,000 Broome County IDA (University Plaza) 5.200 08/01/2030 353,378
- --------------------------------------------------------------------------------------------------------------------------
250,000 Broome County IDA (University Plaza) 5.200 08/01/2036 252,005
- --------------------------------------------------------------------------------------------------------------------------
750,000 Buffalo Municipal Water Finance Authority, Series B 5.000 07/01/2027 774,570
- --------------------------------------------------------------------------------------------------------------------------
85,000 Cattaraugus County IDA (Olean General Hospital) 5.250 08/01/2023 87,480
- --------------------------------------------------------------------------------------------------------------------------
70,000 East Rochester Hsg. Authority (St. John's Meadows) 5.750 08/01/2037 75,172
- --------------------------------------------------------------------------------------------------------------------------
1,095,000 Erie County IDA (DePaul Properties) 5.750 09/01/2028 850,837
- --------------------------------------------------------------------------------------------------------------------------
200,000 Erie County IDA (DePaul Properties) 6.500 09/01/2018 186,038
- --------------------------------------------------------------------------------------------------------------------------
5,600,000 Erie County IDA (Medaille College) 7.625 04/01/2035 5,748,792
- --------------------------------------------------------------------------------------------------------------------------
9,050,000 Erie County IDA (The Episcopal Church Home) 5.875 02/01/2018 9,210,366
- --------------------------------------------------------------------------------------------------------------------------
9,875,000 Erie County IDA (The Episcopal Church Home) 6.000 02/01/2028 10,053,540
- --------------------------------------------------------------------------------------------------------------------------
150,000 Erie County Tobacco Asset Securitization Corp. 6.125 07/15/2030 153,992
- --------------------------------------------------------------------------------------------------------------------------
6,100,000 Erie County Tobacco Asset Securitization Corp. 6.250 07/15/2040 6,302,215
- --------------------------------------------------------------------------------------------------------------------------
5,500,000 Erie County Tobacco Asset Securitization Corp. 6.500 07/15/2032 5,754,320
- --------------------------------------------------------------------------------------------------------------------------
3,750,000 Geneva IDA (Hobart & William Smith Colleges) 5.375 02/01/2033 3,952,950
- --------------------------------------------------------------------------------------------------------------------------
5,500,000 Hempstead IDA
(Working Organization for Retarded Children) 6.900 08/01/2033 5,561,985
- --------------------------------------------------------------------------------------------------------------------------
1,790,000 Herkimer County IDA
(Herkimer County College Foundation) 6.250 08/01/2034 1,874,112
- --------------------------------------------------------------------------------------------------------------------------
5,750,000 L.I. Power Authority RITES 2 11.151 1 09/01/2033 6,377,095
- --------------------------------------------------------------------------------------------------------------------------
4,395,000 L.I. Power Authority, Series A 5.125 09/01/2029 4,503,381
- --------------------------------------------------------------------------------------------------------------------------
30,000 L.I. Power Authority, Series A 5.250 12/01/2026 31,168
- --------------------------------------------------------------------------------------------------------------------------
25,000 L.I. Power Authority, Series A 5.300 12/01/2019 26,689
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Lyons Community Health Initiatives Corp. 5.550 09/01/2024 1,035,550
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Monroe County IDA (Cloverwood Senior Living) 6.875 05/01/2033 840,080
- --------------------------------------------------------------------------------------------------------------------------
1,925,000 Monroe County IDA (DePaul Community Facilities) 5.875 02/01/2028 1,594,766
- --------------------------------------------------------------------------------------------------------------------------
40,000 Monroe County IDA (Rochester Institute of Technology) 5.250 04/01/2019 39,726
- --------------------------------------------------------------------------------------------------------------------------
525,000 Monroe County IDA (Rochester Institute of Technology) 5.375 04/01/2029 508,163
- --------------------------------------------------------------------------------------------------------------------------
460,000 Monroe County Tobacco Asset Securitization Corp. 6.375 06/01/2035 479,182
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 Monroe Newpower Corp. 5.500 01/01/2034 4,115,200
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Monroe Newpower Corp. 5.625 01/01/2026 1,047,680
16 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 18,000,000 MTA Service Contract, Series A 5.125% 01/01/2029 $ 18,536,580
- --------------------------------------------------------------------------------------------------------------------------
640,000 Nassau County IDA (ALIA-ACDS) 6.125 09/01/2018 654,144
- --------------------------------------------------------------------------------------------------------------------------
2,135,000 Nassau County IDA (ALIA-AP) 7.000 09/01/2028 2,178,319
- --------------------------------------------------------------------------------------------------------------------------
895,000 Nassau County IDA (ALIA-CMA) 6.125 09/01/2018 914,780
- --------------------------------------------------------------------------------------------------------------------------
990,000 Nassau County IDA (ALIA-CSMR) 6.125 09/01/2018 1,011,879
- --------------------------------------------------------------------------------------------------------------------------
670,000 Nassau County IDA (ALIA-EFLI) 6.125 09/01/2018 684,807
- --------------------------------------------------------------------------------------------------------------------------
510,000 Nassau County IDA (ALIA-HAII) 6.125 09/01/2018 521,271
- --------------------------------------------------------------------------------------------------------------------------
595,000 Nassau County IDA (ALIA-NCMRS) 6.125 09/01/2018 608,150
- --------------------------------------------------------------------------------------------------------------------------
2,765,000 Nassau County IDA (Hispanic Counseling Center) 7.625 06/01/2033 2,798,844
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Niagara County IDA (American Ref-Fuel Company) 5.550 11/15/2024 2,648,625
- --------------------------------------------------------------------------------------------------------------------------
500,000 Niagara County Tobacco Asset Securitization Corp. 6.250 05/15/2034 516,220
- --------------------------------------------------------------------------------------------------------------------------
285,000 Niagara County Tobacco Asset Securitization Corp. 6.250 05/15/2040 294,245
- --------------------------------------------------------------------------------------------------------------------------
7,745,000 Niagara Falls CSD COP (High School Facility) 5.375 06/15/2028 8,211,326
- --------------------------------------------------------------------------------------------------------------------------
3,665,000 NY Counties Tobacco Trust I (TASC) 6.500 06/01/2035 3,831,758
- --------------------------------------------------------------------------------------------------------------------------
14,550,000 NY Counties Tobacco Trust II (TASC) 5.625 06/01/2035 14,361,432
- --------------------------------------------------------------------------------------------------------------------------
20,000 NY Counties Tobacco Trust II (TASC) 2 5.750 06/01/2043 19,952
- --------------------------------------------------------------------------------------------------------------------------
1,800,000 NY Counties Tobacco Trust III 6.000 06/01/2043 1,844,730
- --------------------------------------------------------------------------------------------------------------------------
35,000 NYC GO 5.000 08/01/2022 35,636
- --------------------------------------------------------------------------------------------------------------------------
3,050,000 NYC GO 5.000 03/01/2030 3,118,107
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 NYC GO 5.000 11/01/2034 5,100,950
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 NYC GO 5.000 03/01/2035 3,062,220
- --------------------------------------------------------------------------------------------------------------------------
1,270,000 NYC GO 5.250 03/15/2032 1,315,199
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 NYC GO 5.375 12/01/2026 2,620,950
- --------------------------------------------------------------------------------------------------------------------------
1,300,000 NYC GO 5.500 06/01/2022 1,389,310
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC GO 5.875 08/01/2019 1,108,240
- --------------------------------------------------------------------------------------------------------------------------
6,790,000 NYC GO 6.125 08/01/2025 7,255,387
- --------------------------------------------------------------------------------------------------------------------------
5,000 NYC GO 7.500 02/01/2019 5,017
- --------------------------------------------------------------------------------------------------------------------------
1,529,265 NYC HDC (Keith Plaza) 6.500 02/15/2018 1,608,757
- --------------------------------------------------------------------------------------------------------------------------
1,545,000 NYC HDC (Multifamily Hsg.), Series E-1 4.950 11/01/2033 1,556,665
- --------------------------------------------------------------------------------------------------------------------------
2,322,305 NYC HDC (Seaview Towers) 6.500 01/15/2018 2,443,018
- --------------------------------------------------------------------------------------------------------------------------
100,000 NYC Health & Hospital Corp. 5.375 02/15/2026 103,202
- --------------------------------------------------------------------------------------------------------------------------
1,945,000 NYC Health & Hospital Corp. 5.450 02/15/2026 2,009,185
- --------------------------------------------------------------------------------------------------------------------------
1,445,000 NYC IDA (American Council of Learned Societies) 5.250 07/01/2027 1,510,849
- --------------------------------------------------------------------------------------------------------------------------
2,760,000 NYC IDA (Beth Abraham Health Services) 6.500 02/15/2022 2,871,311
- --------------------------------------------------------------------------------------------------------------------------
500,000 NYC IDA (Beth Abraham Health Services) 6.500 11/15/2027 511,190
- --------------------------------------------------------------------------------------------------------------------------
2,100,000 NYC IDA (Beth Abraham Health Services) 6.500 11/15/2034 2,144,037
- --------------------------------------------------------------------------------------------------------------------------
6,000,000 NYC IDA (Calhoun School) 6.625 12/01/2034 6,110,040
- --------------------------------------------------------------------------------------------------------------------------
3,965,000 NYC IDA
(Community Resource Developmentally Disabled) 7.500 08/01/2026 4,037,520
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC IDA (Eger Harbor House) 5.875 05/20/2044 1,090,390
17 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 725,000 NYC IDA (Family Support Systems) 7.500% 11/01/2034 $ 727,385
- --------------------------------------------------------------------------------------------------------------------------
500,000 NYC IDA (Liberty-7 World Trade Center) 2,3 6.750 03/01/2015 506,720
- --------------------------------------------------------------------------------------------------------------------------
3,700,000 NYC IDA (Lycee Francais De New York) 5.375 06/01/2023 3,794,313
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 NYC IDA (Lycee Francais De New York) 6.800 06/01/2028 4,122,280
- --------------------------------------------------------------------------------------------------------------------------
2,100,000 NYC IDA (Polytechnic University) 6.000 11/01/2020 2,086,224
- --------------------------------------------------------------------------------------------------------------------------
4,080,000 NYC IDA (Polytechnic University) 6.125 11/01/2030 4,058,866
- --------------------------------------------------------------------------------------------------------------------------
1,380,000 NYC IDA (PSCH) 6.375 07/01/2033 1,461,351
- --------------------------------------------------------------------------------------------------------------------------
1,490,000 NYC IDA (Staten Island University Hospital) 6.450 07/01/2032 1,469,125
- --------------------------------------------------------------------------------------------------------------------------
6,020,000 NYC IDA (The Child School) 7.550 06/01/2033 6,198,312
- --------------------------------------------------------------------------------------------------------------------------
15,785,000 NYC IDA (Touro College) 6.350 06/01/2029 15,828,251
- --------------------------------------------------------------------------------------------------------------------------
5,600,000 NYC IDA (Urban Resource Institute) 7.375 11/01/2033 5,793,984
- --------------------------------------------------------------------------------------------------------------------------
5,600,000 NYC IDA (Vocational Instruction) 7.750 02/01/2033 5,850,600
- --------------------------------------------------------------------------------------------------------------------------
4,245,000 NYC IDA (YMCA of Greater NY) 5.250 08/01/2021 4,361,525
- --------------------------------------------------------------------------------------------------------------------------
3,015,000 NYC Municipal Water Finance Authority 5.000 06/15/2032 3,075,179
- --------------------------------------------------------------------------------------------------------------------------
100,000 NYC Municipal Water Finance Authority 5.125 06/15/2030 103,126
- --------------------------------------------------------------------------------------------------------------------------
155,000 NYC Municipal Water Finance Authority 5.250 06/15/2029 161,911
- --------------------------------------------------------------------------------------------------------------------------
8,000,000 NYC Municipal Water Finance Authority 5.500 06/15/2033 8,583,280
- --------------------------------------------------------------------------------------------------------------------------
120,000 NYS DA (Bethel Springvale Home) 6.000 02/01/2035 125,119
- --------------------------------------------------------------------------------------------------------------------------
20,000 NYS DA (Canisius College) 5.600 07/01/2023 20,528
- --------------------------------------------------------------------------------------------------------------------------
20,000 NYS DA (Dept. of Health) 5.500 07/01/2025 20,935
- --------------------------------------------------------------------------------------------------------------------------
5,750,000 NYS DA (Ithaca College) 5.250 07/01/2026 6,031,578
- --------------------------------------------------------------------------------------------------------------------------
220,000 NYS DA (Judicial Facilities Lease) 7.375 07/01/2016 264,752
- --------------------------------------------------------------------------------------------------------------------------
1,870,000 NYS DA (Lenox Hill Hospital Obligated Group) 5.500 07/01/2030 1,926,119
- --------------------------------------------------------------------------------------------------------------------------
5,000 NYS DA (Mental Health) 5.375 02/15/2026 5,196
- --------------------------------------------------------------------------------------------------------------------------
625,000 NYS DA (Montefiore Medical Center) 5.450 08/01/2029 655,950
- --------------------------------------------------------------------------------------------------------------------------
9,250,000 NYS DA (MSH/NYU Hospital Center/
HJDOI Obligated Group) 6.500 07/01/2025 9,616,300
- --------------------------------------------------------------------------------------------------------------------------
10,000,000 NYS DA (Mt. Sinai/NYU Health) 6.000 07/01/2026 10,009,500
- --------------------------------------------------------------------------------------------------------------------------
9,330,000 NYS DA (Mt. Sinai/NYU Health) 6.250 07/01/2022 9,342,036
- --------------------------------------------------------------------------------------------------------------------------
680,000 NYS DA (Nursing Home) 3 4.900 02/15/2041 680,014
- --------------------------------------------------------------------------------------------------------------------------
835,000 NYS DA (Nursing Home) 3 4.950 02/15/2045 837,288
- --------------------------------------------------------------------------------------------------------------------------
70,000 NYS DA (Nyack Hospital) 6.250 07/01/2013 69,996
- --------------------------------------------------------------------------------------------------------------------------
430,000 NYS DA (Rochester General Hospital) 5.700 08/01/2033 433,917
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 NYS DA (School District Financing) 5.750 10/01/2030 5,565,600
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 NYS DA (SS Joachim & Anne Residence) 5.250 07/01/2027 4,123,640
- --------------------------------------------------------------------------------------------------------------------------
40,000 NYS DA (St. Joseph's Hospital Health Center) 5.250 07/01/2018 42,491
- --------------------------------------------------------------------------------------------------------------------------
55,000 NYS DA (St. Vincent's Hospital & Medical Center) 7.375 08/01/2011 55,207
- --------------------------------------------------------------------------------------------------------------------------
13,090,000 NYS DA (State University Educational Facilities) 5.250 05/15/2015 14,203,043
- --------------------------------------------------------------------------------------------------------------------------
2,510,000 NYS DA (State University Educational Facilities) 5.250 05/15/2021 2,738,862
- --------------------------------------------------------------------------------------------------------------------------
1,015,000 NYS DA (Winthrop University Hospital) 5.500 07/01/2023 1,060,036
18 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 85,000 NYS EFC (NYS Water Services) 6.600% 09/15/2012 $ 85,290
- --------------------------------------------------------------------------------------------------------------------------
15,000 NYS EFC (NYS Water Services) 7.200 03/15/2011 15,512
- --------------------------------------------------------------------------------------------------------------------------
5,395,000 NYS HFA RITES 2 9.288 1 11/01/2015 5,762,561
- --------------------------------------------------------------------------------------------------------------------------
45,000 NYS Medcare (Hospital & Nursing Home) 5.400 08/15/2033 45,144
- --------------------------------------------------------------------------------------------------------------------------
800,000 NYS Medcare (Hospital & Nursing Home) 6.300 08/15/2023 817,424
- --------------------------------------------------------------------------------------------------------------------------
2,800,000 NYS Medcare (Long Term Health Care) 6.400 11/01/2014 2,818,564
- --------------------------------------------------------------------------------------------------------------------------
80,000 NYS Medcare (St. Luke's Hospital) 5.625 08/15/2018 81,992
- --------------------------------------------------------------------------------------------------------------------------
500,000 NYS Thruway Authority 5.000 01/01/2030 519,320
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 NYS UDC (Personal Income Tax) 5.125 03/15/2027 3,269,430
- --------------------------------------------------------------------------------------------------------------------------
1,750,000 NYS UDC RITES 2 11.196 1 03/15/2025 2,346,435
- --------------------------------------------------------------------------------------------------------------------------
250,000 Oneida County IDA
(Mohawk Valley Handicapped Services) 5.300 03/15/2019 256,898
- --------------------------------------------------------------------------------------------------------------------------
55,000 Onondaga County IDA (Salina Free Library) 5.500 12/01/2022 57,751
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Orange County IDA (Glen Arden) 5.625 01/01/2018 893,060
- --------------------------------------------------------------------------------------------------------------------------
275,000 Orange County IDA (Glen Arden) 5.700 01/01/2028 225,962
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 Otsego County IDA (Hartwick College) 5.900 07/01/2022 1,419,930
- --------------------------------------------------------------------------------------------------------------------------
12,740,000 Port Authority NY/NJ (Delta Air Lines) 6.950 06/01/2008 12,753,122
- --------------------------------------------------------------------------------------------------------------------------
2,475,000 Rensselaer County Tobacco Asset Securitization Corp. 5.625 06/01/2035 2,442,924
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Rensselaer County Tobacco Asset Securitization Corp. 2 5.750 06/01/2043 1,995,200
- --------------------------------------------------------------------------------------------------------------------------
1,060,000 Rockland County Tobacco Asset Securitization Corp. 5.625 08/15/2035 1,046,241
- --------------------------------------------------------------------------------------------------------------------------
3,150,000 Rockland County Tobacco Asset Securitization Corp. 5.750 08/15/2043 3,142,472
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Saratoga County IDA (Saratoga Hospital) 5.125 12/01/2033 2,579,250
- --------------------------------------------------------------------------------------------------------------------------
9,730,000 SONYMA, Series 61 5.800 10/01/2016 10,164,542
- --------------------------------------------------------------------------------------------------------------------------
250,000 SONYMA, Series 83 5.550 10/01/2027 257,263
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 Suffolk County IDA (ALIA-IGHL) 7.250 12/01/2033 4,083,040
- --------------------------------------------------------------------------------------------------------------------------
150,000 Suffolk County IDA (Dowling College) 6.625 06/01/2024 150,041
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 Suffolk County IDA (Jefferson's Ferry) 7.200 11/01/2019 1,594,290
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Suffolk County IDA (L.I. Network Community Services) 7.550 02/01/2034 1,021,000
- --------------------------------------------------------------------------------------------------------------------------
505,000 Suffolk County IDA (Pederson-Krag Center) 7.200 02/01/2035 494,653
- --------------------------------------------------------------------------------------------------------------------------
520,000 Sullivan County IDA (Center for Discovery) 6.950 02/01/2035 510,978
- --------------------------------------------------------------------------------------------------------------------------
100,000 Syracuse IDA (Crouse Irving Companies) 5.250 01/01/2017 102,545
- --------------------------------------------------------------------------------------------------------------------------
25,000 Triborough Bridge & Tunnel Authority 5.000 01/01/2020 26,007
- --------------------------------------------------------------------------------------------------------------------------
3,585,000 Triborough Bridge & Tunnel Authority RITES 2 11.085 1 11/15/2032 3,907,865
- --------------------------------------------------------------------------------------------------------------------------
2,560,000 Triborough Bridge & Tunnel Authority RITES 2 11.092 1 11/15/2027 2,863,462
- --------------------------------------------------------------------------------------------------------------------------
10,000,000 Triborough Bridge & Tunnel Authority RITES 2 11.092 1 11/15/2032 10,900,600
- --------------------------------------------------------------------------------------------------------------------------
4,550,000 Triborough Bridge & Tunnel Authority RITES 2 11.584 1 11/15/2029 5,198,921
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Triborough Bridge & Tunnel Authority RITES 2 12.196 1 11/15/2023 3,190,450
- --------------------------------------------------------------------------------------------------------------------------
94,960,000 TSASC, Inc. (TFABs) 5.750 07/15/2032 96,389,148
- --------------------------------------------------------------------------------------------------------------------------
1,205,000 TSASC, Inc. (TFABs) 6.250 07/15/2027 1,251,465
- --------------------------------------------------------------------------------------------------------------------------
19,345,000 TSASC, Inc. (TFABs) 6.250 07/15/2034 20,045,869
19 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 800,000 TSASC, Inc. (TFABs) 6.375% 07/15/2039 $ 833,528
- ---------------------------------------------------------------------------------------------------------------------------
3,000,000 Utica IDA (Utica College Civic Facility) 5.750 08/01/2028 2,958,030
- ---------------------------------------------------------------------------------------------------------------------------
1,250,000 Utica IDA (Utica College Civic Facility) 6.750 12/01/2021 1,286,988
- ---------------------------------------------------------------------------------------------------------------------------
250,000 Westchester County IDA (Guiding Eyes for the Blind) 5.375 08/01/2024 255,520
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Westchester County IDA (Kendal on Hudson) 6.500 01/01/2034 506,880
- ---------------------------------------------------------------------------------------------------------------------------
1,930,000 Westchester County IDA (Rippowam-Cisqua School) 5.750 06/01/2029 1,963,350
- ---------------------------------------------------------------------------------------------------------------------------
320,000 Westchester County IDA (Schnurmacher Center) 6.500 11/01/2013 329,834
- ---------------------------------------------------------------------------------------------------------------------------
600,000 Westchester County IDA (Schnurmacher Center) 6.500 11/01/2033 622,278
- ---------------------------------------------------------------------------------------------------------------------------
55,000 Yonkers IDA (Community Devel. Properties) 6.625 02/01/2026 59,081
--------------
566,197,629
- ---------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--8.8%
8,375,000 Guam GO, Series A 5.400 11/15/2018 8,360,009
- ---------------------------------------------------------------------------------------------------------------------------
1,085,000 Guam GO, Series A 6.000 09/01/2006 1,085,022
- ---------------------------------------------------------------------------------------------------------------------------
5,250,000 Guam Power Authority, Series A 5.125 10/01/2029 5,460,945
- ---------------------------------------------------------------------------------------------------------------------------
10,000,000 Guam Power Authority, Series A 5.250 10/01/2034 10,535,500
- ---------------------------------------------------------------------------------------------------------------------------
5,275,000 Puerto Rico Children's Trust Fund (TASC) 5.625 05/15/2043 5,241,820
- ---------------------------------------------------------------------------------------------------------------------------
3,720,000 Puerto Rico Highway & Transportation Authority, Series D 5.250 07/01/2038 3,872,031
- ---------------------------------------------------------------------------------------------------------------------------
6,000,000 Puerto Rico Highway & Transportation Authority, Series G 5.000 07/01/2042 6,066,240
- ---------------------------------------------------------------------------------------------------------------------------
4,305,000 Puerto Rico ITEMECF
(Polytechnic University of Puerto Rico) 5.000 08/01/2022 4,315,203
- ---------------------------------------------------------------------------------------------------------------------------
2,950,000 Puerto Rico Public Finance Corp., Series E 5.500 08/01/2029 3,271,255
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Puerto Rico Public Finance Corp., Series E 5.500 08/01/2029 1,058,800
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 University of V.I. , Series A 5.375 06/01/2034 1,040,140
- ---------------------------------------------------------------------------------------------------------------------------
1,700,000 V.I. Public Finance Authority (Gross Receipts Taxes Loan) 5.000 10/01/2031 1,730,243
- ---------------------------------------------------------------------------------------------------------------------------
1,485,000 V.I. Public Finance Authority, Series A 5.500 10/01/2022 1,538,222
- ---------------------------------------------------------------------------------------------------------------------------
250,000 V.I. Water & Power Authority 5.300 07/01/2018 255,500
--------------
53,830,930
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $587,751,216)--101.8% 620,028,559
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(1.8) (11,178,853)
--------------
NET ASSETS--100.0% $ 608,849,706
==============
AS OF MARCH 31, 2005, NONE OF THE SECURITIES WERE SUBJECT TO ALTERNATIVE MINIMUM
TAX.
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.
2. Illiquid security. The aggregate value of illiquid securities as of March 31,
2005 was $43,069,261, which represents 7.07% of the Fund's net assets. See Note
5 of Notes to Financial Statements.
3. When-issued security or forward commitment to be delivered and settled after
March 31, 2005. See Note 1 of Notes to Financial Statements.
20 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- --------------------------------------------------------------------------------
SUMMARY OF RATINGS March 31, 2005
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY RATING CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
RATINGS PERCENT
- --------------------------------------------------------------------------------
AAA 10.4%
AA 16.5
A 9.5
BBB 39.8
BB 8.7
B 1.5
CCC 2.1
Not Rated 11.5
--------
Total 100.0%
========
Bonds rated by any nationally recognized statistical rating organization are
included in the equivalent Standard & Poor's rating category. As a general
matter, unrated bonds may be backed by mortgage liens or equipment liens on the
underlying property, and also may be guaranteed. Bonds which are backed by a
letter of credit or by other financial institutions or agencies may be assigned
an investment-grade rating by the Manager, which reflects the quality of the
guarantor, institution or agency. Unrated bonds may also be assigned a rating
when the issuer has rated bonds outstanding with comparable credit
characteristics, or when, in the opinion of the Manager, the bond itself
possesses credit characteristics which allow for rating. The unrated bonds in
the portfolio are predominantly smaller issuers which have not applied for a
bond rating. Only those unrated bonds which subsequent to purchase have not been
designated investment grade by the Manager are included in the "Not Rated"
category.
To simplify the listings of securities, abbreviations are used per the table
below:
ACDS Association for Children with Down
Syndrome
ALIA Alliance of Long Island Agencies
AP Advantage Planning, Inc.
CMA Community Mainstreaming Associates, Inc.
COP Certificates of Participation
CSD Central School District
CSMR Community Services for the Mentally
Retarded
DA Dormitory Authority
EFC Environmental Facilities Corp.
EFLI Epilepsy Foundation of L.I., Inc.
GO General Obligation
HAII Homes Anew II, Inc.
HDC Housing Development Corp.
HFA Housing Finance Agency/Authority
HJDOI Hospital for Joint Diseases Orthopedic
Institute
IDA Industrial Development Agency
IGHL Independent Group Home for Living
ITEMECF Industrial, Tourist, Educational, Medical
and Environmental Community Facilities
L.I. Long Island
MSH/NYU Mount Sinai Hospital/New York University
MTA Metropolitan Transportation Authority
NCMRS Nassau Community Mental Retardation
Services Co.
NY/NJ New York/New Jersey
NYC New York City
NYS New York State
NYU New York University
PSCH Professional Service Centers for the
Handicapped, Inc.
RITES Residual Interest Tax Exempt Security
SONYMA State of New York Mortgage Agency
TASC Tobacco Settlement Asset-Backed Bonds
TFABs Tobacco Flexible Amortization Bonds
UDC Urban Development Corp.
V.I. United States Virgin Islands
YMCA Young Men's Christian Association
21 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY MARKET VALUE PERCENT
- ----------------------------------------------------------------------------
Tobacco Settlements $ 165,946,713 26.8%
Higher Education 84,406,163 13.6
Not-for-Profit Organization 68,409,158 10.9
Highways/Railways 55,081,476 8.9
Hospital/Health Care 46,029,565 7.4
General Obligation 34,513,798 5.6
Electric Utilities 32,353,158 5.2
Adult Living Facilities 31,482,357 5.1
Education 27,753,895 4.5
Multifamily Housing 13,141,946 2.1
Water Utilities 12,798,868 2.1
Airlines 12,753,122 2.1
Single Family Housing 10,421,805 1.7
Municipal Leases 9,041,879 1.5
Sales Tax Revenue 7,598,520 1.2
Special Tax 5,615,865 0.9
Resource Recovery 2,648,625 0.4
Parking Fee Revenue 31,646 0.0
------------------------------
Total $ 620,028,559 100.0%
==============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
March 31, 2005
- ------------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------------
Investments, at value (cost $587,751,216)--see accompanying statement of investments $ 620,028,559
- ------------------------------------------------------------------------------------------------------
Cash 823,550
- ------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 9,654,867
Shares of beneficial interest sold 1,722,027
Investments sold 1,076,780
Other 22,418
--------------
Total assets 633,328,201
- ------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $2,015,000 purchased on a when-issued basis
or forward commitment) 12,543,472
Payable to conduit lender (See Note 6) 8,900,000
Shares of beneficial interest redeemed 1,739,091
Dividends 708,788
Distribution and service plan fees 334,327
Trustees' compensation 121,397
Shareholder communications 30,515
Transfer and shareholder servicing agent fees 26,266
Interest expense 12,624
Other 62,015
--------------
Total liabilities 24,478,495
- ------------------------------------------------------------------------------------------------------
NET ASSETS $ 608,849,706
==============
- ------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 48,141
- ------------------------------------------------------------------------------------------------------
Additional paid-in capital 588,444,742
- ------------------------------------------------------------------------------------------------------
Accumulated net investment income 2,196,697
- ------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (14,117,217)
- ------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 32,277,343
--------------
NET ASSETS $ 608,849,706
==============
23 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
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
$562,820,235 and 44,502,100 shares of beneficial interest outstanding) $ 12.65
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $ 13.28
- ------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$26,864,115 and 2,123,319 shares of beneficial interest outstanding) $ 12.65
- ------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$19,165,356 and 1,515,087 shares of beneficial interest outstanding) $ 12.65
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended March 31, 2005
- ------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------------------
Interest $ 18,821,853
- ------------------------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------------------------
Management fees 1,574,709
- ------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 610,029
Class B 135,436
Class C 83,249
- ------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 148,100
Class B 8,395
Class C 5,213
- ------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 28,695
Class B 1,907
Class C 802
- ------------------------------------------------------------------------------------------------------
Interest expense 207,155
- ------------------------------------------------------------------------------------------------------
Custodian fees and expenses 16,528
- ------------------------------------------------------------------------------------------------------
Trustees' compensation 10,250
- ------------------------------------------------------------------------------------------------------
Other 42,085
--------------
Total expenses 2,872,553
Less reduction to custodian expenses (976)
--------------
Net expenses 2,871,577
- ------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 15,950,276
- ------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ------------------------------------------------------------------------------------------------------
Net realized loss on investments (9,121,368)
- ------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 18,694,740
- ------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 25,523,648
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2005 SEPTEMBER 30,
(UNAUDITED) 2004
- ------------------------------------------------------------------------------------------------------
OPERATIONS
- ------------------------------------------------------------------------------------------------------
Net investment income $ 15,950,276 $ 33,577,820
- ------------------------------------------------------------------------------------------------------
Net realized gain (loss) (9,121,368) 451,186
- ------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 18,694,740 3,740,499
------------------------------------
Net increase in net assets resulting from operations 25,523,648 37,769,505
- ------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (15,154,595) (29,863,870)
Class B (646,615) (1,440,068)
Class C (398,738) (697,461)
- ------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from beneficial interest transactions:
Class A 14,347,491 937,726
Class B (1,128,724) (5,643,739)
Class C 3,195,905 2,556,172
- ------------------------------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------------
Total increase 25,738,372 3,618,265
- ------------------------------------------------------------------------------------------------------
Beginning of period 583,111,334 579,493,069
------------------------------------
End of period (including accumulated net investment income of
$2,196,697 and $2,446,369, respectively) $ 608,849,706 $ 583,111,334
====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2005 SEPT. 30,
CLASS A (UNAUDITED) 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.45 $ 12.31 $ 12.75 $ 12.67 $ 12.15 $ 12.24
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .34 1 .72 .71 .68 .67 .64
Net realized and unrealized gain (loss) .21 .11 (.44) .06 .50 (.09)
------------------------------------------------------------------------------------
Total from investment operations .55 .83 .27 .74 1.17 .55
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.35) (.69) (.71) (.66) (.65) (.64)
Distributions from net realized gain -- -- -- -- -- -- 2
------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.35) (.69) (.71) (.66) (.65) (.64)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.65 $ 12.45 $ 12.31 $ 12.75 $ 12.67 $ 12.15
====================================================================================
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 4.45% 6.91% 2.07% 6.11% 9.77% 4.78%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 562,820 $ 539,834 $ 533,563 $ 536,126 $ 530,464 $ 509,288
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 547,722 $ 536,613 $ 531,977 $ 525,519 $ 526,333 $ 529,839
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 5.46% 5.84% 5.57% 5.44% 5.30% 5.45%
Total expenses 0.92% 0.91% 0.93% 0.89% 0.84% 0.89%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 0.88% N/A 5,6 N/A 5 N/A 5 N/A 5
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 2% 6% 63% 73% 10% 26%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2005 SEPT. 30,
CLASS B (UNAUDITED) 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.45 $ 12.32 $ 12.75 $ 12.68 $ 12.16 $ 12.25
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .29 1 .62 .60 .58 .56 .53
Net realized and unrealized gain (loss) .21 .10 (.42) .06 .51 (.07)
------------------------------------------------------------------------------------
Total from investment operations .50 .72 .18 .64 1.07 .46
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.30) (.59) (.61) (.57) (.55) (.55)
Distributions from net realized gain -- -- -- -- -- -- 2
------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.30) (.59) (.61) (.57) (.55) (.55)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.65 $ 12.45 $ 12.32 $ 12.75 $ 12.68 $ 12.16
====================================================================================
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 4.04% 5.99% 1.36% 5.22% 8.94% 3.98%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 26,864 $ 27,555 $ 32,851 $ 40,896 $ 46,422 $ 49,671
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 27,248 $ 30,212 $ 36,000 $ 42,021 $ 48,115 $ 60,299
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 4.69% 5.05% 4.77% 4.67% 4.53% 4.68%
Total expenses 1.70% 1.69% 1.71% 1.66% 1.61% 1.67%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 1.66% N/A 5,6 N/A 5 N/A 5 N/A 5
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 2% 6% 63% 73% 10% 26%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2005 SEPT. 30,
CLASS C (UNAUDITED) 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.45 $ 12.32 $ 12.75 $ 12.68 $ 12.15 $ 12.24
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .28 1 .62 .60 .57 .56 .56
Net realized and unrealized gain (loss) .22 .10 (.42) .07 .52 (.10)
------------------------------------------------------------------------------------
Total from investment operations .50 .72 .18 .64 1.08 .46
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.30) (.59) (.61) (.57) (.55) (.55)
Distributions from net realized gain -- -- -- -- -- -- 2
------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.30) (.59) (.61) (.57) (.55) (.55)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.65 $ 12.45 $ 12.32 $ 12.75 $ 12.68 $ 12.15
====================================================================================
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 4.04% 5.99% 1.35% 5.22% 9.03% 3.97%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 19,165 $ 15,723 $ 13,080 $ 10,603 $ 8,251 $ 5,954
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 16,808 $ 14,598 $ 11,852 $ 9,183 $ 6,979 $ 6,121
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 4.66% 5.04% 4.78% 4.66% 4.51% 4.68%
Total expenses 1.69% 1.69% 1.72% 1.66% 1.61% 1.66%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 1.66% N/A 5,6 N/A 5 N/A 5 N/A 5
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 2% 6% 63% 73% 10% 26%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer AMT-Free New York Municipals (the Fund), is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Funds investment objective is to seek the maximum current income
exempt from federal, New York State and New York City income taxes for
individual investors consistent with the preservation of capital. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ due
to each class having its own expenses, such as transfer and shareholder
servicing agent fees and shareholder communications, directly attributable to
that class. Class A, B and C have separate distribution and/or service plans.
Class B shares will automatically convert to Class A shares six years after the
date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities listed
or traded on National Stock Exchanges or other domestic or foreign exchanges are
valued based on the last sale price of the security traded on that exchange
prior to the time when the Fund's assets are valued. Securities traded on NASDAQ
are valued based on the closing price provided by NASDAQ prior to the time when
the Fund's assets are valued. In the absence of a sale, the security is valued
at the last sale price on the prior trading day, if it is within the spread of
the closing bid and asked prices, and if not, at the closing bid price.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of sixty days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Securities may be valued primarily
using dealer-supplied valuations or a portfolio pricing service authorized by
the Board of Trustees. Securities (including restricted securities) for which
market quotations are not readily available are valued at their fair value.
Foreign and domestic securities whose values have been materially affected by
what the Manager identifies as a significant event occurring before the Fund's
assets are valued but after the close of their respective exchanges will be fair
valued. Fair value is determined in good faith using consistently applied
procedures under the supervision of the Board of Trustees. Short-term "money
market type" debt securities with remaining maturities of sixty days or less are
valued at amortized cost (which approximates market value).
30 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- --------------------------------------------------------------------------------
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment can take place up to ten days or more after the trade date.
Normally the settlement date occurs within six months after the trade date;
however, the Fund may, from time to time, purchase securities whose settlement
date extends six months or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. The purchase of securities on a when issued
basis or forward commitment may increase the volatility of the Fund's net asset
value to the extent the Fund executes such transactions while remaining
substantially fully invested. The Fund may also sell securities that it
purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of March 31, 2005, the Fund had purchased $2,015,000
of securities issued 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 $40,547,389 as of March 31, 2005. Including the
effect of leverage, inverse floaters represent 15.91% of the Fund's total assets
as of March 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.
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
31 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 March 31, 2005, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of $10,578,686 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
March 31, 2005, it is estimated that the Fund will not utilize any capital loss
carryforward to offset realized capital gains. During the year ended September
30, 2004, the Fund utilized $393,609 of capital loss carryforward to offset
capital gains realized in that fiscal year.
As of September 30, 2004, the Fund had available for federal income tax purposes
an unused capital loss carryforward as follows:
EXPIRING
-----------------------------
2009 $ 1,457,318
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the six months ended
March 31, 2005, the Fund's projected benefit obligations were increased by
$2,030 and payments of $10,239 were made to retired trustees, resulting in an
accumulated liability of $99,859 as of March 31, 2005.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of the annual compensation they are entitled to receive from the Fund.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
Deferral of trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
investment income per share. Amounts will be deferred until distributed in
accordance to the Plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are declared
daily and paid monthly. Capital gain distributions, if any, are declared and
paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
32 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- --------------------------------------------------------------------------------
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts at a rate equal to the Federal
Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item, if
applicable, represents earnings on cash balances maintained by the Fund during
the period. Such interest expense and other custodian fees may be paid with
these earnings.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED MARCH 31, 2005 YEAR ENDED SEPTEMBER 30, 2004
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------
CLASS A
Sold 2,629,482 $ 33,255,871 3,850,924 $ 48,207,057
Dividends and/or
distributions reinvested 803,102 10,106,720 1,587,925 19,824,440
Redeemed (2,307,083) (29,015,100) (5,394,003) (67,093,771)
------------------------------------------------------------------
Net increase 1,125,501 $ 14,347,491 44,846 $ 937,726
==================================================================
- ------------------------------------------------------------------------------------------------
CLASS B
Sold 136,254 $ 1,713,453 348,550 $ 4,364,065
Dividends and/or
distributions reinvested 33,119 417,056 74,760 934,320
Redeemed (259,305) (3,259,233) (877,035) (10,942,124)
------------------------------------------------------------------
Net decrease (89,932) $ (1,128,724) (453,725) $ (5,643,739)
==================================================================
- ------------------------------------------------------------------------------------------------
CLASS C
Sold 376,523 $ 4,757,371 366,324 $ 4,608,949
Dividends and/or
distributions reinvested 20,674 260,340 35,480 442,749
Redeemed (145,242) (1,821,806) (200,686) (2,495,526)
------------------------------------------------------------------
Net increase 251,955 $ 3,195,905 201,118 $ 2,556,172
==================================================================
33 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 March 31, 2005, were
$28,694,011 and $10,856,721, respectively.
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.60% of the first $200 million of average annual net assets,
0.55% of the next $100 million, 0.50% of the next $200 million, 0.45% of the
next $250 million, 0.40% of the next $250 million, and 0.35% of average annual
net assets in excess of $1 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the six months ended March 31, 2005, the Fund paid
$164,096 to OFS for services to the Fund.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
years. Fees incurred by the Fund under the Plan are detailed in the Statement of
Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% per year on Class B and
Class C shares. The Distributor also receives a service fee of 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 March 31, 2005 for Class B and Class C shares were $1,427,463 and $299,159,
respectively. Fees incurred by the Fund under the plans are detailed in the
Statement of Operations.
34 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
- --------------------------------------------------------------------------------
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
- -----------------------------------------------------------------------------------------------
March 31, 2005 $ 60,997 $ 5,373 $ 28,436 $ 1,915
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit
transfer and shareholder servicing agent fees for all classes to 0.35% of
average annual net assets per class. This undertaking may be amended or
withdrawn at any time.
- --------------------------------------------------------------------------------
5. ILLIQUID SECURITIES
As of March 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 (2.7503% as
of March 31, 2005). The Fund pays additional fees of 0.30%
35 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. BORROWINGS Continued
per annum to the lender on its outstanding borrowings to manage and administer
the facility and is allocated its pro-rata share of a 0.13% per annum commitment
fee for a liquidity backstop facility with respect to the $800 million facility
size.
For the six months ended March 31, 2005, the average daily loan balance
was $14,987,912 at an average daily interest rate of 2.702%. The Fund had
borrowings outstanding of $8,900,000 at March 31, 2005 at an interest rate of
2.7503%. The Fund had gross borrowings and gross loan repayments of $35,000,000
and $49,100,000, respectively, during the six months ended March 31, 2005. The
maximum amount of borrowings outstanding at any month-end during the six months
ended March 31, 2005 was $25,200,000. The Fund paid $10,278 in fees and $238,035
interest during the six months ended March 31, 2005.
- --------------------------------------------------------------------------------
7. LITIGATION
A consolidated amended complaint has been filed as putative derivative and class
actions against the Manager, OFS and the Distributor (collectively, the
"Oppenheimer defendants"), as well as 51 of the Oppenheimer funds (as "Nominal
Defendants") including the Fund, 30 present and former Directors or Trustees and
8 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.
36 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF
INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
37 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
BOARD APPROVAL OF THE FUND'S INVESTMENT ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Trustees (the "Board"), including a majority of the
independent Trustees, is required to determine whether to renew the advisory
agreement. The Investment Company Act of 1940, as amended, requires that the
Board request and evaluate, and that the Manager provide, such information as
may be reasonably necessary to evaluate the terms of the advisory agreement. The
Board employs an independent consultant to prepare a report that provides
information, including comparative information, that the Board requests for this
purpose. In addition, the Board receives information throughout the year
regarding Fund services, fees, expenses and performance.
NATURE AND EXTENT OF SERVICES. In considering the renewal of the Fund's
advisory agreement for the current year, the Board evaluated the nature and
extent of the services provided by the Manager and its affiliates. The Manager
provides the Fund with office space, facilities and equipment; administrative,
accounting, clerical, legal and compliance personnel; securities trading
services; oversight of third party service providers and the services of the
portfolio manager and the Manager's investment team, who provide research,
analysis and other advisory services in regard to the Fund's investments.
QUALITY OF SERVICES. The Board also considered the quality of the services
provided and the quality of the Manager's resources that are available to the
Fund. The Board noted that the Manager has had over forty years of experience as
an investment adviser and that its assets under management rank it among the top
mutual fund managers in the United States. The Board evaluated the Manager's
administrative, accounting, legal and compliance services and information the
Board received regarding the experience and professional qualifications of the
Manager's personnel and the size and functions of its staff. The Board members
also considered their experiences as directors or trustees of the Fund and other
funds advised by the Manager. The Board received and reviewed information
regarding the quality of services provided by affiliates of the Manager, which
it also reviews at other times during the year in connection with the renewal of
the Fund's service agreements. The Board noted that the relatively low
redemption rate for funds advised by the Manager provided an indication of
shareholder satisfaction with the overall level of services provided by the
Manager.
PORTFOLIO MANAGEMENT SERVICES AND PERFORMANCE. In its evaluation of the
quality of the portfolio management services provided, the Board considered the
experience of Ronald H. Fielding, Daniel G. Loughran, Scott Cottier and Troy
Willis and the Manager's municipal bond investment team and analysts. Mr.
Fielding is the team leader and a portfolio manager and trader for the Fund. He
has been the Senior Portfolio Manager of the Fund since July 2002, a Senior Vice
President of the Manager since January 1996 and Chairman of the Rochester
Division of the Manager since January 1996. Mr. Cottier
38 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
has been both a portfolio manager and a trader for the Fund since 2002 and a
Vice President of the Manager since 2002. Prior to joining the Manager in 2002,
Mr. Cottier was a portfolio manager and trader at Victory Capital Management
from 1999 to 2002. Mr. Loughran has been a portfolio manager and a trader for
the Fund and a Vice President of the Manager since April 2001. He has been a
portfolio manager with the Manager since 1999. Mr. Willis has been an Associate
portfolio manager and a trader for both the Fund and the Manager since 2003.
Prior to joining the Manager in 2003, Mr. Willis was a Corporate Attorney for
Southern Resource Group from 1999 to 2003. Mr. Fielding has had over 27 years of
experience, and Messrs. Loughran and Cottier have had over 10 years of
experience managing tax exempt and fixed-income investments.
The Board reviewed information, prepared by the Manager and by the
independent consultant, comparing the Fund's historical performance to relevant
market indices and to the performance of other New York municipal fixed-income
funds (including both funds advised by the Manager and funds advised by other
investment advisers). The Board also receives and reviews comparative
performance information regarding the Fund and other funds at each Board
meeting. The Board noted that the Fund's three-, five-, and ten-year performance
was below its peer group average. However, its one-year performance was better
than its peer group average.
MANAGEMENT FEES AND EXPENSES. The Board also reviewed information,
including comparative information, regarding the fees paid to the Manager and
its affiliates and the other expenses borne by the Fund. The independent
consultant provided comparative data in regard to the fees and expenses of the
Fund, other municipal fixed-income funds and other funds with comparable asset
levels and distribution features. The Board noted that the Fund's actual
management fees and total expenses are lower than its peer group average,
although the Fund's contractual management fees are slightly higher than its
peer group average. In addition, the Board evaluated the comparability of the
fees charged and services provided to the Fund to the fees charged and services
provided to other types of entities advised by the Manager.
PROFITABILITY OF THE MANAGER AND AFFILIATES. The Board also reviewed
information regarding the cost of services provided by the Manager and its
affiliates and the Manager's profitability. The Board considered that the
Manager must be able to pay and retain experienced professional personnel at
competitive rates to provide services to the Fund and that maintaining the
financial viability of the Manager is important in order for the Manager to
continue to provide significant services to the Fund and its shareholders. In
addition the Board considered information provided regarding the direct and
indirect
39 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
benefits the Manager receives as a result of its relationship with the Fund,
including compensation paid to the Manager's affiliates.
ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may
realize economies of scale in managing and supporting the Fund and the current
level of Fund assets in relation to the Fund's breakpoint schedule for its
management fees. The Board noted that the Fund has recently experienced modest
asset growth and that, based on current asset levels, the Fund is not yet
approaching its last management fee breakpoint.
CONCLUSIONS. These factors were also considered by the independent
Trustees meeting separately from the full Board, assisted by experienced counsel
to the Fund. Fund counsel is independent of the Manager within the meaning and
intent of the Securities and Exchange Commission Rules. The Board was aware that
there are alternatives to retaining the Manager.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Trustees,
concluded that the nature, extent and quality of the services provided to the
Fund by the Manager are a benefit to the Fund and in the best interest of the
Fund's shareholders and that the amount and structure of the compensation
received by the Manager and its affiliates are reasonable in relation to the
services provided. Accordingly, the Board elected to continue the investment
advisory agreement for another year. In arriving at this decision, the Board did
not single out any factor or factors as being more important than others, but
considered all of the factors together. The Board judged the terms and
conditions of the advisory agreement, including the management fee, in light of
all of the surrounding circumstances.
40 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
ITEM 2. CODE OF ETHICS
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES
Not applicable.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At a meeting of the Board of Trustees of the registrant held on February
18, 2004, the Board adopted (1) a policy that, should the Board determine that a
vacancy exists or is likely to exist on the Board, the Governance Committee of
the Board, which is comprised entirely of independent trustees, shall consider
any candidates for Board membership recommended by the registrant's security
holders and (2) a policy that security holders wishing to submit a nominee for
election to the Board may do so by mailing their submission to the offices of
OppenheimerFunds, Inc., Two World Financial Center, 225 Liberty Street - 11th
Floor, New York, NY 10281-1008, to the attention of the Chair of the Governance
Committee. Prior to February 18, 2004, the Board did not have a formalized
policy with respect to consideration of security holder nominees or a procedure
by which security holders may make their submissions. In addition to security
holder nominees, the Governance Committee may also consider nominees recommended
by independent Board members or recommended by any other Board members and is
authorized under its Charter, upon Board approval, to retain an executive search
firm to assist in screening potential candidates. Upon Board approval, the
Governance Committee may
also obtain legal, financial, or other external counsel that may be necessary or
desirable in the screening process.
ITEM 11. 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 March 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 changes in registrant's internal controls over
financial reporting that occurred during the registrant's last
fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over
financial reporting.
ITEM 12. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer AMT-Free New York Municipals
By: /s/ John V. Murphy
----------------------------
John V. Murphy
Principal Executive Officer
Date: May 13, 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
Principal Executive Officer
Date: May 13, 2005
By: /s/ Brian W. Wixted
----------------------------
Brian W. Wixted
Chief Financial Officer
Date: May 13, 2005