UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-2668
OPPENHEIMER AMT-FREE MUNICIPALS
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
ROBERT G. ZACK, ESQ.
OPPENHEIMERFUNDS, INC.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: JULY 31
Date of reporting period: AUGUST 1, 2004 THROUGH JULY 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN INDUSTRIES
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Higher Education 11.0%
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Hospital/Health Care 9.4
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Special Assessment 8.8
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Multifamily Housing 8.2
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Adult Living Facilities 7.7
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Hotels, Restaurants and Leisure 6.6
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Tobacco Settlement Payments 5.2
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Special Tax 4.6
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Pollution Control 4.5
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Electric Utilities 3.8
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2005, and are based on total market value of investments.
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CREDIT ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
AAA 11.9%
AA 4.3
A 23.2
BBB 40.1
BB 2.5
B 2.6
CCC 1.1
CC 0.4
Not Rated 13.9
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2005, and are dollar-weighted based on total market value of
investments. Securities rated by any rating organization are included in the
equivalent Standard & Poor's rating category. The allocation includes rated
securities and those not rated by a national rating organization but to which
the ratings above have been assigned by the Manager for internal purposes as
being comparable, in the Manager's judgment, to securities rated by a rating
agency in the same category.
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10 | OPPENHEIMER AMT-FREE MUNICIPALS
FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED JULY 31, 2005, FOLLOWED BY A
GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. The Fund's distributions and
share-price appreciation have combined to produce superior performance during
this report period. As of July 31, 2005, the Fund's Class A shares generated a
1-year total return of 12.69% without sales charge and 7.34% with sales charge.
By comparison, its primary benchmark, the Lehman Brothers Municipal Bond index,
produced a total return of 6.35%.1 Yields generated by the Fund's holdings,
representing a wide variety of credit qualities and industry sectors, generated
over 47% of the Fund's total return for the period. Price appreciation in
long-maturity bonds and in particular in the Fund's lower-rated and unrated
holdings, and in its Master Settlement Agreement ("MSA") bonds, accounted for
the remainder of the period's total return. MSA bonds are backed by the issuing
State's (or U.S. territory's) share of proceeds from a national litigation
settlement with tobacco manufacturers. These bonds generated attractive yields
and share price appreciation for shareholders during this period. Across the
municipal bond market, the difference between yields on lower-rated and
higher-rated municipals securities decreased, as the price of lower-rated
municipal bonds rose more than that of high-grade bonds during this report
period.
Increasing prices in the Fund's lower-rated holdings, sometimes known as
"credit-spread tightening," has been a significant driver of the Fund's total
return during this report period. The Fund's Net Asset Value increased in this
period, largely through price appreciation in bonds that we had selected for
their yield and structural characteristics. With generally higher prices of
longer-term, lower-rated and non-rated municipal securities, the Fund has
recently favored investing a larger portion of its assets in higher-quality
bonds during this period. We believe that new municipal bond issues have offered
fewer higher-yielding municipal bonds that possess what we consider to be a
favorable balance of risk and reward for the Fund.
The Fund's holdings in airline sector bonds, which comprised 2.6% of the
Fund's investments as of July 31, 2005, benefited from credit-spread tightening
and growing passenger traffic during this report period. However, the airline
industry continues to face high fuel prices and a difficult operating
environment. As a result, airline bond prices have not experienced as large a
price increase as bonds in other industry sectors. We continue to seek value in
this airline sector, applying our bottom-up analysis to identify opportunities
appropriate for the Fund.
A small percentage of the Fund's holdings are currently exposed to
"taxability risk," meaning the possibility that income from these bonds could be
deemed federally taxable
1. The Lehman Brothers Municipal Bond Index is an unmanaged index of a broad
range of investment grade municipal bonds. The index cannot be purchased
directly by investors. Index performance is for illustrative purposes only and
does not predict or depict the performance of a fund.
11 | OPPENHEIMER AMT-FREE MUNICIPALS
FUND PERFORMANCE DISCUSSION
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by the Internal Revenue Service ("IRS"). The IRS is currently investigating the
structure of a small number of the Fund's holdings in this regard, but we have
not learned of any findings as of the date of this report. Some of these bonds
held by the Fund have a "taxability call" feature by which they must be redeemed
by the issuer if their income is deemed taxable; others have a feature by which
the issuer would repay the Fund for any tax liability incurred. As of July 31,
2005, these bonds do not figure prominently in the Fund's portfolio.
The Fund's position in municipal inverse-floating rate securities
contributed to positive performance. These are highly-rated tax-exempt
securities whose interest payments move inversely to short-term interest rates.
We have sought to offset some of the interest-rate sensitivity of these bonds by
also investing in premium-coupon, callable bonds whose market prices tend to
exhibit little interest-rate sensitivity.
Bonds issued to finance the Pocahontas Parkway project added to the Fund's
performance during this report period. This $450 million project was undertaken
to build a toll road near Richmond, Virginia. Initially, the toll road
experienced low usage and lower-than-expected revenues, reducing the bond's
price to a level that we viewed as attractive. In June, 2005, it was announced
that a private company is considering purchasing the road. If the transaction is
completed, the bond may be "pre-refunded." In a pre-refunding, a new bond issue
generates proceeds that are earmarked to pay off another previously-issued--but
not yet callable--bond. When a municipal bond is pre-refunded, its price
generally rises significantly, as happened in this case.
Various small Fund holdings in the Multifamily Housing sector detracted
minutely from the Fund's performance during this report period. The aggregate
combined effect of volatility in these bonds affected the Fund's Net Asset Value
by less than one cent per share. The Fund's investments in this sector
represented 8.2% of the Fund's assets as of July 31, 2005, diversified across a
large number of projects. Broad diversification enables the Fund to derive yield
from this sector, while mitigating risk associated with any individual holding.
As of July 31, 2005, tobacco bonds backed by the national Master
Settlement Agreement ("MSA") accounted for 5.2% of investments. MSA bond prices
have increased significantly during this report period. Virginia MSA bonds
issued in May 2005 were the first new tobacco bonds to be paid solely from
tobacco settlement revenues since early 2003. During this report period,
Westchester County, New York pre-refunded its MSA-backed bonds in June, and
other municipalities announced plans to pre-refund many of their MSA-backed
bonds, as well. The market reacted favorably to the issuance of new MSA bonds,
and prices of MSA-backed tobacco bonds rose as speculation of additional new
issuance to refund outstanding, higher coupon MSA-backed bonds increased.
Positive news on tobacco litigation contributed to the large price rally
in MSA-backed bonds. One significant event during this period was the ruling of
a federal appeals court in Washington, D.C. that the U.S. government could not
seek disgorgement of $280 billion
12 | OPPENHEIMER AMT-FREE MUNICIPALS
in past profits from the tobacco industry under the Racketeer Influenced Corrupt
Organizations Act ("RICO"). The United States Court of Appeals for the District
of Columbia subsequently denied the Department of Justice's request to
reconsider this decision. However, on July 18, 2005, the Government filed its
petition for certiorari seeking further review on this issue by the United
States Supreme Court. During final arguments in this case in June 2005, the U.S.
government reduced its demand for damages from the tobacco industry to $14
billion--a huge reduction from the original $280 billion claim. It is not clear
when the trial judge will make a final decision in this case. However,
developments during this report period have been positive for the tobacco
industry and, by extension, for MSA bonds.
Our approach to municipal bond investing is flexible and responsive to
market conditions; our strategies are intended to balance many different types
of risk to reduce overall portfolio risk. We continue to comb the market for
bonds that offer attractive yields, and to monitor developing market conditions.
OppenheimerFunds offers two other national municipal bond choices that
investors may use in combination with Oppenheimer AMT-Free Municipals.
Oppenheimer Limited Term Municipal Fund invests in shorter-term municipal bonds,
at least 95% of which are investment-grade, with generally much lower price
volatility than longer-term or lower credit quality funds. Investors seeking
higher, federal tax-free income may consider Oppenheimer Rochester National
Municipals, a high-yield municipal bond fund managed in the "Rochester style."
Your financial advisor can help to identify whether there is an advantage to
investing in Oppenheimer AMT-Free Municipals in conjunction with another
Oppenheimer municipal bond fund.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until July 31, 2005. In the case of Class A and Class B shares,
performance is measured over a ten-year period. In the case of Class C shares,
performance is measured from inception of the Class on August 29, 1995. The
Fund's performance reflects the deduction of the maximum initial sales charge on
Class A shares, the applicable contingent deferred sales charge on Class B and
Class C shares, and reinvestments of all dividends and capital gains
distributions.
The Fund's performance is compared to the performance of the Lehman
Brothers Municipal Bond Index, an unmanaged index of a broad range of investment
grade municipal bonds that is widely regarded as a measure of the performance of
the general municipal bond market. Index performance reflects the reinvestment
of dividends but does not consider the effect of capital gains or transaction
costs, and none of the data in the graphs that follow shows the effect of taxes.
The Fund's performance reflects the effects of Fund business and operating
expenses. While index comparisons may be useful to provide a benchmark for the
Fund's performance, it must be noted that the Fund's investments are not limited
to the securities in the index.
13 | OPPENHEIMER AMT-FREE MUNICIPALS
FUND PERFORMANCE DISCUSSION
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CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free Municipals (Class A)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer AMT-Free Lehman Brothers
Date Municipals (Class A) Municipal Bond Index
12/31/1995 9,525 10,000
03/31/1996 9,442 9,880
06/30/1996 9,476 9,955
07/31/1996 1 9,598 10,045
10/31/1996 9,746 10,298
01/31/1997 10,017 10,463
04/30/1997 10,078 10,505
07/31/1997 10,650 11,075
10/31/1997 10,721 11,173
01/31/1998 11,079 11,520
04/30/1998 11,001 11,482
07/31/1998 11,242 11,739
10/31/1998 11,514 12,069
01/31/1999 11,758 12,286
04/30/1999 11,771 12,280
07/31/1999 11,530 12,077
10/31/1999 11,100 11,855
01/31/2000 10,880 11,840
04/30/2000 11,176 12,167
07/31/2000 11,432 12,597
10/31/2000 11,640 12,864
01/31/2001 11,998 13,413
04/30/2001 11,895 13,429
07/31/2001 12,350 13,867
10/31/2001 12,473 14,215
01/31/2002 12,361 14,204
04/30/2002 12,535 14,369
07/31/2002 12,891 14,797
10/31/2002 12,884 15,050
01/31/2003 13,080 15,264
04/30/2003 13,379 15,589
07/31/2003 13,209 15,331
10/31/2003 13,785 15,819
01/31/2004 14,357 16,209
04/30/2004 14,286 16,007
07/31/2004 14,477 16,218
10/31/2004 15,157 16,774
01/31/2005 15,637 16,996
04/30/2005 15,931 17,098
07/31/2005 16,314 17,247
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
7/31/05
1-Year 7.34% 5-Year 6.33% 10-Year 5.66%
14 | OPPENHEIMER AMT-FREE MUNICIPALS
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free Municipals (Class B)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer AMT-Free Lehman Brothers
Date Municipals (Class B) Municipal Bond Index
12/31/1995 10,000 10,000
03/31/1996 9,894 9,880
06/30/1996 9,911 9,955
07/31/1996 1 10,043 10,045
10/31/1996 10,267 10,298
01/31/1997 10,431 10,463
04/30/1997 10,476 10,505
07/31/1997 11,051 11,075
10/31/1997 11,103 11,173
01/31/1998 11,453 11,520
04/30/1998 11,350 11,482
07/31/1998 11,576 11,739
10/31/1998 11,834 12,069
01/31/1999 12,062 12,286
04/30/1999 12,052 12,280
07/31/1999 11,782 12,077
10/31/1999 11,320 11,855
01/31/2000 11,073 11,840
04/30/2000 11,354 12,167
07/31/2000 11,592 12,597
10/31/2000 11,781 12,864
01/31/2001 12,121 13,413
04/30/2001 11,994 13,429
07/31/2001 12,429 13,867
10/31/2001 12,530 14,215
01/31/2002 12,394 14,204
04/30/2002 12,569 14,369
07/31/2002 12,926 14,797
10/31/2002 12,919 15,050
01/31/2003 13,115 15,264
04/30/2003 13,415 15,589
07/31/2003 13,244 15,331
10/31/2003 13,822 15,819
01/31/2004 14,396 16,209
04/30/2004 14,325 16,007
07/31/2004 14,516 16,218
10/31/2004 15,199 16,774
01/31/2005 15,680 16,996
04/30/2005 15,974 17,098
07/31/2005 16,358 17,247
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
7/31/05
1-Year 6.87% 5-Year 6.24% 10-Year 5.68%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD. BECAUSE
CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR
RETURN FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER
CONVERSION. SEE PAGE 17 FOR FURTHER INFORMATION.
1. The Fund changed its fiscal year end from December 31 to July 31.
15 | OPPENHEIMER AMT-FREE MUNICIPALS
FUND PERFORMANCE DISCUSSION
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CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free Municipals (Class C)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer AMT-Free Lehman Brothers
Date Municipals (Class C) Municipal Bond Index
08/29/1995 10,000 10,000
09/30/1995 10,097 10,063
12/31/1995 10,564 10,479
03/31/1996 10,450 10,353
06/30/1996 10,467 10,432
07/31/1996 1 10,606 10,526
10/31/1996 10,842 10,791
01/31/1997 11,015 10,963
04/30/1997 11,061 11,008
07/31/1997 11,669 11,605
10/31/1997 11,723 11,708
01/31/1998 12,093 12,072
04/30/1998 11,984 12,032
07/31/1998 12,223 12,301
10/31/1998 12,495 12,647
01/31/1999 12,736 12,874
04/30/1999 12,725 12,868
07/31/1999 12,440 12,655
10/31/1999 11,953 12,423
01/31/2000 11,692 12,407
04/30/2000 11,988 12,750
07/31/2000 12,240 13,201
10/31/2000 12,439 13,480
01/31/2001 12,798 14,055
04/30/2001 12,664 14,072
07/31/2001 13,124 14,531
10/31/2001 13,230 14,896
01/31/2002 13,071 14,884
04/30/2002 13,231 15,057
07/31/2002 13,583 15,506
10/31/2002 13,549 15,770
01/31/2003 13,726 15,995
04/30/2003 14,016 16,336
07/31/2003 13,810 16,065
10/31/2003 14,385 16,576
01/31/2004 14,956 16,985
04/30/2004 14,853 16,773
07/31/2004 15,023 16,994
10/31/2004 15,685 17,577
01/31/2005 16,168 17,809
04/30/2005 16,442 17,916
07/31/2005 16,805 18,073
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
7/31/05
1-Year 10.87% 5-Year 6.55% Since Inception (8/29/95) 5.37%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 4.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD. BECAUSE
CLASS B SHARES CONVERT TO CLASS A SHARES 72 MONTHS AFTER PURCHASE, 10-YEAR
RETURN FOR CLASS B SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER
CONVERSION. SEE PAGE 17 FOR FURTHER INFORMATION.
1. The Fund changed its fiscal year end from December 31 to July 31.
16 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES
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TOTAL RETURNS AND THE ENDING ACCOUNT VALUES IN THE GRAPHS INCLUDE CHANGES IN
SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS IN A
HYPOTHETICAL INVESTMENT FOR THE PERIODS SHOWN. THE FUND'S TOTAL RETURNS SHOWN DO
NOT REFLECT THE DEDUCTION OF INCOME TAXES ON AN INDIVIDUAL'S INVESTMENT. TAXES
MAY REDUCE YOUR ACTUAL INVESTMENT RETURNS ON ANY GAINS YOU MAY REALIZE IF YOU
SELL YOUR SHARES.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
THE FUND'S INVESTMENT STRATEGY AND FOCUS CAN CHANGE OVER TIME. THE MENTION OF
SPECIFIC FUND HOLDINGS DOES NOT CONSTITUTE A RECOMMENDATION BY OPPENHEIMERFUNDS,
INC.
CLASS A shares of the Fund were first publicly offered on 10/27/76. The average
annual total returns are shown net of the applicable 4.75% maximum initial sales
charge. The Fund's maximum sales charge for Class A shares was lower prior to
1/31/86, so actual performance may have been higher.
CLASS B shares of the Fund were first publicly offered on 3/16/93. The average
annual total returns are shown net of the applicable contingent deferred sales
charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A
shares 72 months after purchase, the 10-year return for Class B uses Class A
performance for the period after conversion. Class B shares are subject to an
annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 8/29/95. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the 1-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
17 | OPPENHEIMER AMT-FREE MUNICIPALS
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended July 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
18 | OPPENHEIMER AMT-FREE 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.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(2/1/05) (7/31/05) JULY 31, 2005
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Class A Actual $1,000.00 $1,043.30 $4.72
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Class A Hypothetical 1,000.00 1,020.18 4.67
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Class B Actual 1,000.00 1,039.40 8.68
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Class B Hypothetical 1,000.00 1,016.31 8.58
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Class C Actual 1,000.00 1,039.40 8.63
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Class C Hypothetical 1,000.00 1,016.36 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 181/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended July 31, 2005 are as follows:
CLASS EXPENSE RATIOS
- ----------------------------
Class A 0.93%
- ----------------------------
Class B 1.71
- ----------------------------
Class C 1.70
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19 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS July 31, 2005
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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MUNICIPAL BONDS AND NOTES--106.3%
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ALABAMA--0.3%
$ 15,000 AL HFA (Pelican) 6.550% 03/20/2030 $ 15,467
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1,580,000 AL Space Science Exhibit Finance Authority 6.000 10/01/2025 1,569,983
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55,000 Birmingham, AL Airport Authority 5.625 07/01/2026 57,159
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25,000 Birmingham, AL Private Educational Building Authority
(Birmingham-Southern College) 6.125 12/01/2025 25,664
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15,000 Birmingham, AL Special Care Facilities Financing
Authority (Children's Hospital of Alabama) 5.500 06/01/2022 15,827
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Camden, AL Industrial Devel. Board
(Weyerhaeuser Company), Series A 1 6.125 12/01/2024 1,113,490
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130,000 Cooperative District, AL Fort Deposit 6.000 02/01/2036 136,296
- -----------------------------------------------------------------------------------------------------------------------------------
15,000 Montgomery, AL Medical Clinic Board Health Care 7.000 03/01/2015 15,036
--------------
2,948,922
- -----------------------------------------------------------------------------------------------------------------------------------
ALASKA--0.7%
2,500,000 AK HFC RITES 2 11.954 3 06/01/2032 2,806,100
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 AK HFC ROLs 2 12.508 3 12/01/2033 2,158,800
- -----------------------------------------------------------------------------------------------------------------------------------
780,000 AK HFC, Series A 5.875 12/01/2024 802,012
- -----------------------------------------------------------------------------------------------------------------------------------
175,000 AK Northern Tobacco Securitization Corp. (TASC) 5.500 06/01/2029 180,847
--------------
5,947,759
- -----------------------------------------------------------------------------------------------------------------------------------
ARIZONA--3.9%
750,000 AZ West Campus Hsg. (Arizona State University) 6.375 07/01/2022 885,128
- -----------------------------------------------------------------------------------------------------------------------------------
849,950 Central AZ Irrigation & Drain District, Series A 6.000 06/01/2013 823,015
- -----------------------------------------------------------------------------------------------------------------------------------
75,000 Glendale, AZ IDA Educational Facilities
(American Graduate School International) 5.875 07/01/2015 77,664
- -----------------------------------------------------------------------------------------------------------------------------------
125,000 Glendale, AZ IDA Educational Facilities
(American Graduate School International) 6.000 07/01/2017 127,639
- -----------------------------------------------------------------------------------------------------------------------------------
800,000 Litchfield, AZ Park Community Facility District 6.375 07/15/2026 851,624
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 Maricopa County, AZ IDA (Christian Care Mesa II) 6.625 01/01/2034 2,011,380
- -----------------------------------------------------------------------------------------------------------------------------------
1,500,000 Maricopa County, AZ IDA (Sun King Apartments) 6.750 11/01/2018 1,359,015
- -----------------------------------------------------------------------------------------------------------------------------------
1,260,000 Maricopa County, AZ IDA (Sun King Apartments) 6.750 05/01/2031 1,076,355
- -----------------------------------------------------------------------------------------------------------------------------------
225,000 Mesa, AZ IDA (Mesa Student Hsg.) 6.000 07/01/2032 229,268
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 Mesa, AZ IDA (Mesa Student Hsg.) 6.250 07/01/2032 55,395
- -----------------------------------------------------------------------------------------------------------------------------------
200,000 Mesa, AZ IDA Student Hsg.
(Arizona State University East) 6.000 07/01/2026 219,212
- -----------------------------------------------------------------------------------------------------------------------------------
3,000,000 Peoria, AZ IDA (Sierra Winds) 6.375 08/15/2029 3,033,540
- -----------------------------------------------------------------------------------------------------------------------------------
5,535,000 Phoenix, AZ IDA (Christian Care) 5.500 07/01/2035 5,545,627
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Phoenix, AZ IDA (Summit Apartments) 6.550 07/20/2037 1,092,300
- -----------------------------------------------------------------------------------------------------------------------------------
1,735,000 Pima County, AZ IDA (Arizona Charter School) 6.100 07/01/2024 1,770,342
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 Pima County, AZ IDA (Arizona Charter School) 6.300 07/01/2031 510,425
- -----------------------------------------------------------------------------------------------------------------------------------
1,570,000 Pima County, AZ IDA (Arizona Charter School) 6.500 07/01/2023 1,638,640
20 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA Continued
$ 1,290,000 Pima County, AZ IDA (Arizona Charter School) 6.750% 07/01/2031 $ 1,346,670
- -----------------------------------------------------------------------------------------------------------------------------------
1,100,000 Pima County, AZ IDA (Noah Webster Basic School) 6.125 12/15/2034 1,122,704
- -----------------------------------------------------------------------------------------------------------------------------------
2,845,000 Pima County, AZ IDA
(Phoenix Advantage Charter School) 5.600 07/01/2023 2,999,171
- -----------------------------------------------------------------------------------------------------------------------------------
120,000 Pima, AZ IDA (Paradise Education Center) 5.875 06/01/2033 117,100
- -----------------------------------------------------------------------------------------------------------------------------------
5,000,000 Verrado, AZ Community Facilities District 6.500 07/15/2027 5,506,450
- -----------------------------------------------------------------------------------------------------------------------------------
1,375,000 Vistancia, AZ Community Facilities District 5.500 07/15/2020 1,392,325
- -----------------------------------------------------------------------------------------------------------------------------------
1,200,000 Vistancia, AZ Community Facilities District 5.750 07/15/2024 1,218,600
- -----------------------------------------------------------------------------------------------------------------------------------
45,000 Yuma, AZ IDA (Regency Apartments) 5.500 12/20/2032 45,137
--------------
35,054,726
- -----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS--0.1%
195,000 Pine Bluff, AR IDA (Colt Industries) 6.500 02/15/2009 195,382
- -----------------------------------------------------------------------------------------------------------------------------------
465,000 Pope County, AR Pollution Control
(Arkansas Power & Light Company) 6.300 11/01/2020 472,440
--------------
667,822
- -----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--4.6%
2,220,000 Beaumont, CA Financing Authority, Series B 5.875 09/01/2023 2,346,185
- -----------------------------------------------------------------------------------------------------------------------------------
1,200,000 CA GO Fixed Receipts 5.250 02/01/2025 1,285,356
- -----------------------------------------------------------------------------------------------------------------------------------
4,700,000 CA GO RITES 2 11.047 3 02/01/2025 6,037,150
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 CA Golden State Tobacco Securitization Corp. 6.625 06/01/2040 1,143,460
- -----------------------------------------------------------------------------------------------------------------------------------
6,000,000 CA Statewide CDA (East Campus Apartments) 5.625 08/01/2034 6,298,800
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 CA Statewide CDA (East Valley Tourist) 11.000 10/01/2020 2,059,060
- -----------------------------------------------------------------------------------------------------------------------------------
1,500,000 CA Statewide CDA COP
(Cedars-Sinai Medical Center) INFLOS 2 8.184 3 11/01/2015 1,509,420
- -----------------------------------------------------------------------------------------------------------------------------------
590,000 Independent Cities, CA Lease Finance Authority
(Morgan Hill-Hacienda Valley) 5.950 11/15/2039 612,975
- -----------------------------------------------------------------------------------------------------------------------------------
4,900,000 Los Angeles, CA Community Redevel. Agency ROLs 2 12.568 3 09/01/2030 5,775,924
- -----------------------------------------------------------------------------------------------------------------------------------
4,175,000 Los Angeles, CA Regional Airports Improvement
Corp. (Delta Airlines) 1 6.350 11/01/2025 3,436,526
- -----------------------------------------------------------------------------------------------------------------------------------
3,000,000 Redding, CA Electric System COP Linked SAVRS & RIBS 6.368 4 07/01/2022 3,685,560
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 Riverside, CA Unified School District Special Tax 6.200 09/01/2030 51,291
- -----------------------------------------------------------------------------------------------------------------------------------
7,000,000 Santa Rosa, CA Rancheria Tachi Yokut Tribe Enterprise 1 6.625 03/01/2018 7,040,810
--------------
41,282,517
- -----------------------------------------------------------------------------------------------------------------------------------
COLORADO--2.8%
500,000 Beacon Point, CO Metropolitan District 6.125 12/01/2025 497,650
- -----------------------------------------------------------------------------------------------------------------------------------
4,800,000 Broomfield, CO Village Metropolitan District No. 2 6.250 12/01/2032 4,807,920
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Central Marksheffel, CO Metropolitan District 7.250 12/01/2029 1,056,420
- -----------------------------------------------------------------------------------------------------------------------------------
5,000,000 CO Educational & Cultural Facilities Authority 6.000 07/01/2042 4,994,550
- -----------------------------------------------------------------------------------------------------------------------------------
30,000 CO Health Facilities Authority
(Northern Colorado Medical Center) 6.000 05/15/2020 30,073
21 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
COLORADO Continued
$ 2,270,000 CO Health Facilities Authority RITES 2 12.954% 3 03/01/2022 $ 2,886,396
- -----------------------------------------------------------------------------------------------------------------------------------
230,000 Denver, CO City & County Airport 5.500 11/15/2025 238,637
- -----------------------------------------------------------------------------------------------------------------------------------
210,000 Denver, CO City & County Airport 5.700 11/15/2025 215,708
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 High Plains, CO Metropolitan District 6.250 12/01/2035 507,095
- -----------------------------------------------------------------------------------------------------------------------------------
1,200,000 Kiowa, CO Water & Sewer 5.500 12/01/2030 1,187,760
- -----------------------------------------------------------------------------------------------------------------------------------
750,000 SBC Metropolitan, CO District 5 5.000 12/01/2025 763,598
- -----------------------------------------------------------------------------------------------------------------------------------
720,000 SBC Metropolitan, CO District 5 5.000 12/01/2029 730,116
- -----------------------------------------------------------------------------------------------------------------------------------
1,775,000 SBC Metropolitan, CO District 5 5.000 12/01/2034 1,794,898
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Southlands, CO Medical District 7.000 12/01/2024 1,099,490
- -----------------------------------------------------------------------------------------------------------------------------------
4,000,000 Southlands, CO Medical District 7.125 12/01/2034 4,391,520
--------------
25,201,831
- -----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT--1.3%
95,000 CT Devel. Authority Pollution Control
(Connecticut Light & Power Company) 5.850 09/01/2028 103,273
- -----------------------------------------------------------------------------------------------------------------------------------
1,460,000 CT Devel. Authority Water Facilities
(Bridgeport Hydraulic Corp.) 5.500 06/01/2028 1,462,905
- -----------------------------------------------------------------------------------------------------------------------------------
90,000 CT H&EFA (New Britain General Hospital), Series B 6.000 07/01/2024 91,121
- -----------------------------------------------------------------------------------------------------------------------------------
140,000 CT H&EFA (Yale-New Haven Hospital) 5.700 07/01/2025 145,870
- -----------------------------------------------------------------------------------------------------------------------------------
9,900,000 Mashantucket, CT Western Pequot Tribe, Series B 1 5.750 09/01/2027 10,220,859
--------------
12,024,028
- -----------------------------------------------------------------------------------------------------------------------------------
DELAWARE--0.4%
4,000,000 Bridgeville, DE Special Obligation (Heritage Shores) 5.450 07/01/2035 4,004,680
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA--0.4%
1,000,000 District of Columbia (Carnegie Endowment) 5.750 11/15/2026 1,039,760
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 District of Columbia Friendship Public Charter School 5.250 06/01/2033 2,049,600
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 District of Columbia Tobacco Settlement Financing Corp. 6.750 05/15/2040 558,070
--------------
3,647,430
- -----------------------------------------------------------------------------------------------------------------------------------
FLORIDA--9.2%
- -----------------------------------------------------------------------------------------------------------------------------------
5,990,000 Bartram Park, FL Community Devel. District 5 5.300 05/01/2035 6,084,283
- -----------------------------------------------------------------------------------------------------------------------------------
40,000 Bay, FL Medical Center 5.650 10/01/2026 41,847
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 Beacon, FL Tradeport Community Devel. District 7.250 05/01/2033 2,166,300
- -----------------------------------------------------------------------------------------------------------------------------------
30,000 Canaveral, FL Port Authority 5.625 06/01/2021 31,315
- -----------------------------------------------------------------------------------------------------------------------------------
2,350,000 Concorde Estates, FL Community Devel. District 5.850 05/01/2035 2,388,000
- -----------------------------------------------------------------------------------------------------------------------------------
130,000 Dade County, FL Aviation (Miami International Airport) 5.600 10/01/2026 135,961
- -----------------------------------------------------------------------------------------------------------------------------------
1,970,000 Dade County, FL IDA (Miami Cerebral Palsy Residence) 8.000 06/01/2022 2,013,163
- -----------------------------------------------------------------------------------------------------------------------------------
195,000 Dade County, FL Public Facilities
(Jackson Memorial Hospital) 5.250 06/01/2023 195,330
- -----------------------------------------------------------------------------------------------------------------------------------
95,000 Dade County, FL Water & Sewer System 5.500 10/01/2025 97,261
- -----------------------------------------------------------------------------------------------------------------------------------
1,975,000 Double Branch, FL Special Assessment
Community Devel. District 6.700 05/01/2034 2,154,686
22 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA Continued
$ 1,500,000 East Homestead, FL Community Devel. District 5.450% 11/01/2036 $ 1,518,750
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 FL Capital Trust Agency (American Opportunity) 5.875 06/01/2038 2,471,075
- -----------------------------------------------------------------------------------------------------------------------------------
1,275,000 FL Capital Trust Agency (River Bend Apartments) 2,6,7 7.000 10/01/2034 1,594
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 FL Capital Trust Agency (Seminole Tribe Convention) 8.950 10/01/2033 1,093,200
- -----------------------------------------------------------------------------------------------------------------------------------
750,000 FL Capital Trust Agency (Seminole Tribe Convention) 10.000 10/01/2033 825,488
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 FL Capital Trust Agency Multifamily Affordable Hsg.,
Series C 8.125 10/01/2038 995,260
- -----------------------------------------------------------------------------------------------------------------------------------
245,000 FL Gateway Services Community Devel. District
(Sun City Center) 6.500 05/01/2033 262,603
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 FL Principal One Community Devel. District 5.650 05/01/2035 1,009,130
- -----------------------------------------------------------------------------------------------------------------------------------
990,000 Heritage Harbour South, FL Community Devel. District 6.500 05/01/2034 1,061,132
- -----------------------------------------------------------------------------------------------------------------------------------
250,000 Hillsborough County, FL IDA (Senior Care Group) 6.750 07/01/2029 254,733
- -----------------------------------------------------------------------------------------------------------------------------------
480,000 Hillsborough County, FL IDA (Tampa Electric Company) 6.250 12/01/2034 495,878
- -----------------------------------------------------------------------------------------------------------------------------------
955,000 Hillsborough County, FL IDA (Tampa Electric Company) 6.250 12/01/2034 983,268
- -----------------------------------------------------------------------------------------------------------------------------------
1,600,000 Islands at Doral, FL Southwest Community
Devel. District 6.375 05/01/2035 1,729,648
- -----------------------------------------------------------------------------------------------------------------------------------
125,000 Jacksonville, FL Electric Authority (St. Johns River) 5.250 10/01/2021 125,806
- -----------------------------------------------------------------------------------------------------------------------------------
1,875,000 Jacksonville, FL Electric Authority RITES 2 9.419 3 10/01/2022 1,908,375
- -----------------------------------------------------------------------------------------------------------------------------------
1,225,000 Keys Cove, FL Community Devel. District 5.875 05/01/2035 1,275,433
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 Lake County, FL School Board COP RITES 2,5 13.125 3 06/01/2030 3,019,300
- -----------------------------------------------------------------------------------------------------------------------------------
4,500,000 Lee County, FL IDA (Cypress Cove Healthpark) 6.750 10/01/2032 4,703,175
- -----------------------------------------------------------------------------------------------------------------------------------
1,215,000 Lucaya, FL Community Devel. District 5.375 05/01/2035 1,220,310
- -----------------------------------------------------------------------------------------------------------------------------------
600,000 Madison County, FL Mtg. (Twin Oaks) 6.000 07/01/2025 596,244
- -----------------------------------------------------------------------------------------------------------------------------------
85,000 Marion County, FL Hospital District
(Munroe Regional Medical Center) 5.625 10/01/2024 89,251
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 Midtown Miami, FL Community Devel. District
Special Assessment 6.500 05/01/2037 2,660,000
- -----------------------------------------------------------------------------------------------------------------------------------
8,035,000 Oakland, FL Charter School 1 6.950 12/01/2032 8,361,221
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 Orange County, FL Health Facilities Authority
(Orlando Lutheran Towers) 8.750 07/01/2026 539,710
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 Palm Beach County, FL Health Facilities Authority
(Boca Raton Community Hospital) 5.625 12/01/2031 26,396
- -----------------------------------------------------------------------------------------------------------------------------------
195,000 Palm Beach County, FL Multifamily
(Boynton Apartments) 6,7 8.000 01/01/2014 107,459
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 Pinellas County, FL Educational Facilities Authority
(Barry University) 5.375 10/01/2028 51,861
- -----------------------------------------------------------------------------------------------------------------------------------
250,000 Reunion East, FL Community Devel. District 5.800 05/01/2036 257,830
- -----------------------------------------------------------------------------------------------------------------------------------
6,000,000 Reunion East, FL Community Devel. District, Series A 1 7.375 05/01/2033 6,727,980
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 Reunion West, FL Community Devel. District
Special Assessment 6.250 05/01/2036 2,641,850
- -----------------------------------------------------------------------------------------------------------------------------------
275,000 Santa Rosa Bay, FL Bridge Authority 6.250 07/01/2028 285,390
23 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA Continued
$ 75,000 South Lake County, FL Hospital District
(Orlando Regional Healthcare System) 5.800% 10/01/2034 $ 78,668
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 South Miami, FL Health Facilities Authority
(SMH/BHM/BHSSF/SMHS/HHI Obligated Group) 5.375 10/01/2016 102,314
- -----------------------------------------------------------------------------------------------------------------------------------
1,280,000 South-Dade, FL Venture Community Devel. District 6.125 05/01/2034 1,356,006
- -----------------------------------------------------------------------------------------------------------------------------------
3,000,000 St. John's Forest, FL Community Devel. District, Series A 6.125 05/01/2034 3,112,770
- -----------------------------------------------------------------------------------------------------------------------------------
975,000 Stonegate, FL Community Devel. District 6.000 05/01/2024 1,032,086
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Stonegate, FL Community Devel. District 6.125 05/01/2034 1,057,040
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 Sumter Landing, FL Community Devel. District 6.875 05/01/2023 2,174,740
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 Sumter Landing, FL Community Devel. District 6.950 05/01/2033 2,142,320
- -----------------------------------------------------------------------------------------------------------------------------------
10,000 University of FL (University Hsg.) 5.500 07/01/2023 10,021
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Village Community, FL Devel. District No.5, Series A 6.100 05/01/2034 1,050,720
- -----------------------------------------------------------------------------------------------------------------------------------
925,000 Village Community, FL Devel. District No.5, Series A 6.500 05/01/2033 996,937
- -----------------------------------------------------------------------------------------------------------------------------------
5,100,000 Volusia County, FL Educational Facility Authority
(Emery-Riddle Aeronautical University) 6.125 10/15/2026 5,372,748
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 World Commerce, FL Community Devel.
District Special Assessment 6.500 05/01/2036 1,033,640
--------------
82,127,506
- -----------------------------------------------------------------------------------------------------------------------------------
GEORGIA--5.3%
13,000,000 Atlanta, GA Devel. Authority Student Hsg.
(ADA/CAU Partners) 1 6.000 07/01/2036 14,203,670
- -----------------------------------------------------------------------------------------------------------------------------------
3,905,000 Atlanta, GA Devel. Authority Student Hsg.
(ADA/CAU Partners) 6.250 07/01/2024 4,356,965
- -----------------------------------------------------------------------------------------------------------------------------------
2,380,000 Atlanta, GA Devel. Authority Student Hsg.
(ADA/CAU Partners) 6.250 07/01/2036 2,644,799
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Atlanta, GA Tax Allocation (Eastside) 5 5.400 01/01/2020 1,000,180
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 Atlanta, GA Tax Allocation (Eastside) 5 5.600 01/01/2030 2,007,300
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Augusta, GA Airport (General Passenger Facilities Charge) 5.150 01/01/2035 1,015,930
- -----------------------------------------------------------------------------------------------------------------------------------
3,000,000 Burke County, GA Devel. Authority RITES 2 9.582 3 05/01/2034 3,029,700
- -----------------------------------------------------------------------------------------------------------------------------------
9,835,000 De Kalb County, GA Devel. Authority Public Purpose 1 5.500 12/10/2023 9,899,518
- -----------------------------------------------------------------------------------------------------------------------------------
995,000 De Kalb County, GA Hsg. Authority
(Alternative Hsg. Snapwoods) 5.500 12/20/2032 1,029,606
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 Fulton County, GA Residential Care Facilities
(Canterbury Court) 6.125 02/15/2034 2,049,080
- -----------------------------------------------------------------------------------------------------------------------------------
15,000 GA Municipal Electric Authority 5.625 01/01/2025 15,453
- -----------------------------------------------------------------------------------------------------------------------------------
2,815,000 GA Municipal Electric Authority RITES 1,2 16.944 3 01/01/2017 5,100,949
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 GA Municipal Electric Authority, Series X 6.500 01/01/2012 560,510
- -----------------------------------------------------------------------------------------------------------------------------------
30,000 Savannah, GA EDA (University Financing Foundation) 6.750 11/15/2020 33,500
- -----------------------------------------------------------------------------------------------------------------------------------
85,000 Savannah, GA EDA (University Financing Foundation) 6.750 11/15/2031 93,798
--------------
47,040,958
24 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
HAWAII--1.3%
$ 5,000,000 HI Airport System RITES 2 8.962% 3 07/01/2020 $ 6,045,800
- -----------------------------------------------------------------------------------------------------------------------------------
4,200,000 HI Department of Budget & Finance Special Purpose
(Kahala Nui) 8.000 11/15/2033 4,832,268
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 HI Department of Budget & Finance Special Purpose
(Kahala Senior Living Community) 7.875 11/15/2023 576,790
- -----------------------------------------------------------------------------------------------------------------------------------
45,000 HI Hsg. Finance & Devel. Corp. (Single Family Mtg.),
Series B 5.900 07/01/2027 45,459
--------------
11,500,317
- -----------------------------------------------------------------------------------------------------------------------------------
IDAHO--3.4%
2,500,000 ID Health Facilities Authority ROLs 2 12.418 3 09/01/2035 2,783,500
- -----------------------------------------------------------------------------------------------------------------------------------
1,780,000 ID Health Facilities Authority ROLs 2,5 13.167 3 09/01/2035 1,981,852
- -----------------------------------------------------------------------------------------------------------------------------------
20,000 ID Hsg. Agency (Multifamily Hsg.) 6.700 07/01/2024 20,222
- -----------------------------------------------------------------------------------------------------------------------------------
16,720,000 Nez Perce County, ID Pollution Control (Potlatch Corp.) 1 6.000 10/01/2024 17,027,815
- -----------------------------------------------------------------------------------------------------------------------------------
5,360,000 Pocatello, ID Devel. Authority Revenue Allocation
Tax Increment, Series A 6.000 08/01/2028 5,387,711
- -----------------------------------------------------------------------------------------------------------------------------------
2,980,000 Twin Falls, ID Urban Renewal Agency, Series A 5 5.450 08/01/2022 2,967,246
--------------
30,168,346
- -----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS--6.6%
6,875,000 Chicago, IL GO 1 5.125 01/01/2025 7,061,038
- -----------------------------------------------------------------------------------------------------------------------------------
9,000,000 Chicago, IL O'Hare International Airport
(American Airlines) 1 8.200 12/01/2024 8,886,060
- -----------------------------------------------------------------------------------------------------------------------------------
5,000,000 Chicago, IL Tax (Pilsen Redevel.) 6.750 06/01/2022 5,287,200
- -----------------------------------------------------------------------------------------------------------------------------------
2,400,000 Cook County, IL Community School District GO 7.125 06/01/2024 3,051,768
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 IL Devel. Finance Authority (Illinois Power Company) 5.400 03/01/2028 50,089
- -----------------------------------------------------------------------------------------------------------------------------------
1,625,000 IL Educational Facilities Authority (Augustana College) 5.625 10/01/2022 1,715,513
- -----------------------------------------------------------------------------------------------------------------------------------
3,000,000 IL Educational Facilities Authority (Augustana College) 5.700 10/01/2032 3,132,570
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 IL Finance Authority (Friendship Village Schaumburg) 5.375 02/15/2025 2,020,020
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 IL Finance Authority (Friendship Village Schaumburg) 5.625 02/15/2037 2,027,200
- -----------------------------------------------------------------------------------------------------------------------------------
3,000,000 IL Finance Authority Student Hsg.
(MJH Education Assistance) 5.125 06/01/2035 3,014,610
- -----------------------------------------------------------------------------------------------------------------------------------
5,000,000 IL Health Facilities Authority
(Covenant Retirement Communities) 5.625 12/01/2032 5,357,950
- -----------------------------------------------------------------------------------------------------------------------------------
35,000 IL Health Facilities Authority (Edward Hospital) 6.000 02/15/2019 35,431
- -----------------------------------------------------------------------------------------------------------------------------------
4,000,000 IL Health Facilities Authority (Lake Forest Hospital) 6.000 07/01/2033 4,336,360
- -----------------------------------------------------------------------------------------------------------------------------------
615,000 IL Health Facilities Authority
(Rush-Presbyterian-St. Luke's Medical Center) 5.500 11/15/2025 618,758
- -----------------------------------------------------------------------------------------------------------------------------------
3,500,000 IL Health Facilities Authority ROLs 2 12.913 3 08/15/2033 4,046,070
- -----------------------------------------------------------------------------------------------------------------------------------
30,000 IL Hsg. Devel. Authority (Multifamily Hsg.) 7.000 07/01/2017 30,225
- -----------------------------------------------------------------------------------------------------------------------------------
90,000 IL Hsg. Devel. Authority (Multifamily Hsg.), Series 1991-A 8.250 07/01/2016 93,510
- -----------------------------------------------------------------------------------------------------------------------------------
10,000 IL Hsg. Devel. Authority (Multifamily Hsg.), Series A 6.125 07/01/2025 10,011
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 IL Metropolitan Pier & Exposition Authority RITES 2 10.944 3 12/15/2028 2,952,900
25 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS Continued
$ 1,475,000 Lake County, IL HFC, Series A 6.700% 11/01/2014 $ 1,477,434
- -----------------------------------------------------------------------------------------------------------------------------------
2,725,000 Lincolnshire, IL Special Service Area No. 1 Special Tax
(Sedgebrook) 6.250 03/01/2034 2,889,345
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 Schaumburg, IL Multifamily Hsg. (Plum Grove) 6.050 02/01/2031 522,330
--------------
58,616,392
- -----------------------------------------------------------------------------------------------------------------------------------
INDIANA--2.1%
5,000,000 Fort Wayne, IN Pollution Control (General Motors Corp.) 6.200 10/15/2025 4,975,500
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 IN Devel. Finance Authority (USX Corp.) 5.600 12/01/2032 25,982
- -----------------------------------------------------------------------------------------------------------------------------------
80,000 IN Devel. Finance Authority (USX Corp.) 6.150 07/15/2022 84,257
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 Indianapolis, IN Economic Devel.
(Roman Catholic Archdiocese of Indiana) 5.500 07/01/2026 520,205
- -----------------------------------------------------------------------------------------------------------------------------------
3,250,000 Indianapolis, IN Local Public Improvement
Bond Bank RITES 2 11.954 3 07/01/2033 4,181,320
- -----------------------------------------------------------------------------------------------------------------------------------
2,055,000 Marion, IN Redevel. District County Optional Income Tax 5.000 01/15/2030 2,116,650
- -----------------------------------------------------------------------------------------------------------------------------------
1,605,000 Marion, IN Redevel. District County Optional Income Tax 5.250 01/15/2025 1,706,420
- -----------------------------------------------------------------------------------------------------------------------------------
4,750,000 North Manchester, IN (Estelle Peabody Memorial Home) 7.125 07/01/2022 4,974,295
- -----------------------------------------------------------------------------------------------------------------------------------
65,000 Petersburg, IN Pollution Control
(Indianapolis Power & Light Company) 5.400 08/01/2017 66,022
- -----------------------------------------------------------------------------------------------------------------------------------
125,000 Petersburg, IN Pollution Control
(Indianapolis Power & Light Company) 6.625 12/01/2024 127,805
--------------
18,778,456
- -----------------------------------------------------------------------------------------------------------------------------------
IOWA--0.3%
50,000 IA Finance Authority
(Boys & Girls Home & Family Services) 6.250 12/01/2028 52,642
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 IA Finance Authority Retirement Community
(Friendship Haven) 5.750 11/15/2019 506,505
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 IA Finance Authority Retirement Community
(Friendship Haven) 6.000 11/15/2024 1,018,990
- -----------------------------------------------------------------------------------------------------------------------------------
900,000 IA Finance Authority Retirement Community
(Friendship Haven) 6.125 11/15/2032 917,550
--------------
2,495,687
- -----------------------------------------------------------------------------------------------------------------------------------
KANSAS--1.4%
1,770,000 Hays, KS Sales Tax 6.000 01/01/2025 1,793,807
- -----------------------------------------------------------------------------------------------------------------------------------
2,735,000 KS Devel. Finance Authority (Luther Gardens) 5.600 05/20/2034 3,000,076
- -----------------------------------------------------------------------------------------------------------------------------------
750,000 Wyandotte County/Kansas City, KS Unified
Government Pollution Control (General Motors) 6.000 06/01/2025 757,680
- -----------------------------------------------------------------------------------------------------------------------------------
7,000,000 Wyandotte County/Kansas City, KS Unified
Government Special Obligation (Sales Tax) 5.000 12/01/2020 7,062,020
--------------
12,613,583
26 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY--0.3%
$ 2,190,000 Boone County, KY Pollution Control
(Dayton Power & Light Company) 6.500% 11/15/2022 $ 2,234,041
- -----------------------------------------------------------------------------------------------------------------------------------
415,000 Kenton County, KY Airport Special Facilities
(Delta Airlines) 7.250 02/01/2022 375,525
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 KY Economic Devel. Finance Authority
(St. Claire Medical Center) 5.625 09/01/2021 51,102
--------------
2,660,668
- -----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA--3.9%
5,010,000 Calcasieu Parish, LA Industrial Devel. Board (Olin Corp.) 1 6.625 02/01/2016 5,380,039
- -----------------------------------------------------------------------------------------------------------------------------------
3,940,000 LA HFA (VOA New Orleans Affordable Hsg. Corp.) 6.800 05/01/2029 4,031,960
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 LA Local Government EF&CD (Bellemont Apartments) 6.000 09/01/2022 1,027,370
- -----------------------------------------------------------------------------------------------------------------------------------
1,750,000 LA Local Government EF&CD (Bellemont Apartments) 6.000 09/01/2027 1,779,645
- -----------------------------------------------------------------------------------------------------------------------------------
3,810,000 LA Local Government EF&CD (Bellemont Apartments) 6.000 09/01/2035 3,852,443
- -----------------------------------------------------------------------------------------------------------------------------------
910,000 LA Local Government EF&CD (Bellemont Apartments) 7.500 09/01/2016 922,103
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 LA Local Government EF&CD (Oakleigh Apartments),
Series A 6.375 06/01/2038 2,076,760
- -----------------------------------------------------------------------------------------------------------------------------------
1,245,000 LA Local Government EF&CD (Oakleigh Apartments),
Series A 7.500 06/01/2038 1,279,213
- -----------------------------------------------------------------------------------------------------------------------------------
2,100,000 LA Tobacco Settlement Financing Corp. Fixed Receipts 5.875 05/15/2039 2,224,551
- -----------------------------------------------------------------------------------------------------------------------------------
10,695,000 LA Tobacco Settlement Financing Corp. RITES 2 8.067 3 05/15/2039 11,963,534
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 New Orleans, LA Aviation Board
(Passenger Facility Charge) 6.000 09/01/2019 50,625
- -----------------------------------------------------------------------------------------------------------------------------------
125,000 Pointe Coupee Parish, LA Pollution Control
(Gulf State Utilities Company) 6.700 03/01/2013 125,440
--------------
34,713,683
- -----------------------------------------------------------------------------------------------------------------------------------
MAINE--0.0%
35,000 ME H&HEFA (University of New England) 5.750 07/01/2023 35,077
- -----------------------------------------------------------------------------------------------------------------------------------
MARYLAND--2.1%
10,000 Baltimore, MD City Hsg. Corp. 7.750 10/01/2009 10,133
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 Baltimore, MD City Hsg. Corp., Series A 7.250 07/01/2023 50,681
- -----------------------------------------------------------------------------------------------------------------------------------
20,000 Calvert County, MD Pollution Control
(Baltimore Gas & Electric Company) 5.550 07/15/2014 20,462
- -----------------------------------------------------------------------------------------------------------------------------------
40,000 MD EDC Student Hsg. (Allegheny College Hsg.) 6.000 09/01/2032 42,756
- -----------------------------------------------------------------------------------------------------------------------------------
5,000,000 MD EDC Student Hsg. (Bowie State University) 5.375 06/01/2033 5,011,650
- -----------------------------------------------------------------------------------------------------------------------------------
1,535,000 MD EDC Student Hsg. (Morgan State University) 6.000 07/01/2022 1,654,530
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 MD EDC Student Hsg. (University of Maryland) 5.625 10/01/2023 2,108,920
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 MD EDC Student Hsg. (University of Maryland) 5.750 10/01/2033 2,104,940
- -----------------------------------------------------------------------------------------------------------------------------------
65,000 MD EDC Student Hsg.
(University Village at Sheppard Pratt) 6.000 07/01/2033 70,393
- -----------------------------------------------------------------------------------------------------------------------------------
75,000 MD H&HEFA (Frederick Memorial Hospital) 5.000 07/01/2028 75,107
- -----------------------------------------------------------------------------------------------------------------------------------
45,000 MD H&HEFA (Montgomery General Hospital) 5.625 07/01/2018 45,097
27 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
MARYLAND Continued
$ 7,000,000 MD Hsg. Community Devel. People's Resource Center 1 5.600% 04/01/2018 $ 7,258,790
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 MD Industrial Devel. Financing Authority
(Our Lady of Good Counsel) 5.500 05/01/2020 101,233
- -----------------------------------------------------------------------------------------------------------------------------------
150,000 MD Industrial Devel. Financing Authority
(Our Lady of Good Counsel) 6.000 05/01/2035 154,311
- -----------------------------------------------------------------------------------------------------------------------------------
250,000 MD Stadium Authority (Convention Center Expansion) 5.875 12/15/2013 255,660
- -----------------------------------------------------------------------------------------------------------------------------------
55,000 MD Stadium Authority Sports Facility 5.800 03/01/2026 56,425
- -----------------------------------------------------------------------------------------------------------------------------------
65,000 Prince Georges County, MD Pollution Control
(Potomac Electric Power Company) 6.000 09/01/2022 65,086
- -----------------------------------------------------------------------------------------------------------------------------------
145,000 Prince Georges County, MD Pollution Control
(Potomac Electric Power Company) 6.375 01/15/2023 147,857
--------------
19,234,031
- -----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS--1.8%
200,000 MA Devel. Finance Agency (Boston Biomedical Research) 5.750 02/01/2029 207,288
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 MA Devel. Finance Agency (Curry College) 5.000 03/01/2035 1,014,650
- -----------------------------------------------------------------------------------------------------------------------------------
800,000 MA Devel. Finance Agency (Eastern Nazarene College) 5.625 04/01/2019 810,576
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 MA Devel. Finance Agency (Eastern Nazarene College) 5.625 04/01/2029 2,000,780
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 MA Devel. Finance Agency (Evergreen Center) 5.500 01/01/2035 505,175
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 MA Devel. Finance Agency (Nichols College) 6.000 10/01/2024 51,137
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 MA Devel. Finance Agency
(Northern Berkshire Community Services) 6.250 08/15/2029 53,247
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 MA Devel. Finance Agency
(Pharmacy & Allied Health Sciences) 5.750 07/01/2033 1,060,800
- -----------------------------------------------------------------------------------------------------------------------------------
4,000,000 MA Devel. Finance Agency
(Seven Hills Foundation & Affiliates) 5.000 09/01/2035 4,150,720
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 MA Devel. Finance Agency
(Western New England College) 5.875 12/01/2022 532,830
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 MA Devel. Finance Agency
(Western New England College) 6.125 12/01/2032 1,071,840
- -----------------------------------------------------------------------------------------------------------------------------------
40,000 MA H&EFA (Lahey Clinic Medical Center) 5.375 07/01/2023 40,098
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 MA H&EFA (Nichols College) 6.125 10/01/2029 1,054,960
- -----------------------------------------------------------------------------------------------------------------------------------
90,000 MA H&EFA (North Adams Regional Hospital) 6.750 07/01/2009 92,619
- -----------------------------------------------------------------------------------------------------------------------------------
90,000 MA H&EFA (Schepens Eye Research Institute) 6.500 07/01/2028 100,489
- -----------------------------------------------------------------------------------------------------------------------------------
1,905,677 MA Industrial Finance Agency (Bradford College) 5.250 11/01/2018 1,721,893
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 MA Industrial Finance Agency
(Cambridge Friends School) 5.800 09/01/2028 98,432
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 MA Industrial Finance Agency (General Motors Corp.) 2 5.550 04/01/2009 49,886
- -----------------------------------------------------------------------------------------------------------------------------------
30,000 MA Industrial Finance Agency (St. John's High School) 5.350 06/01/2028 30,685
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 University of Lowell, MA Building Authority 5.625 11/01/2014 1,027,480
--------------
15,675,585
28 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN--1.2%
$ 25,000 Dearborn, MI Economic Devel. Corp.
(Oakwood Hospital Corp.) 5.875% 11/15/2025 $ 25,698
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 Galesburg-Augusta, MI Community Schools GO 5.500 05/01/2030 26,967
- -----------------------------------------------------------------------------------------------------------------------------------
420,000 Lansing, MI Building Authority 5.600 06/01/2019 429,815
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 MI COP 5.500 06/01/2027 26,987
- -----------------------------------------------------------------------------------------------------------------------------------
20,000 MI Hospital Finance Authority
(Port Huron Hospital/Marwood Manor Nursing Home) 5.500 07/01/2015 20,439
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 MI Hsg. Devel. Authority (Charter Square) 5.500 01/15/2021 50,432
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 MI Job Devel. Authority Pollution Control
(General Motors Corp.) 5.550 04/01/2009 2,002,080
- -----------------------------------------------------------------------------------------------------------------------------------
4,000,000 MI Strategic Fund Limited Obligation
(The Detroit Edison Company) 1 6.400 09/01/2025 4,091,840
- -----------------------------------------------------------------------------------------------------------------------------------
4,015,000 MI Strategic Fund Pollution Control
(General Motors Corporation) 1 6.200 09/01/2020 4,039,572
- -----------------------------------------------------------------------------------------------------------------------------------
10,000 Mount Clemens, MI Hsg. Corp. (FHA Section 8), Series A 6.600 06/01/2022 10,217
--------------
10,724,047
- -----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA--2.0%
165,000 Dakota County, MN Community Devel. Agency
(Multifamily Hsg.) 5.500 07/20/2043 168,749
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 Hastings, MN Health Care Facility (Regina Medical Center) 5.300 09/15/2028 50,941
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Minneapolis, MN Tax Increment (St. Anthony Falls) 5.750 02/01/2027 1,005,670
- -----------------------------------------------------------------------------------------------------------------------------------
40,000 MN HFA (Single Family Mtg.), Series I 6.250 01/01/2015 40,063
- -----------------------------------------------------------------------------------------------------------------------------------
660,000 St. Paul, MN Hsg. & Redevel. Authority
(Great Northern Lofts) 6.250 03/01/2029 665,518
- -----------------------------------------------------------------------------------------------------------------------------------
7,000,000 St. Paul, MN Hsg. & Redevel. Authority (Upper Landing) 1 7.000 03/01/2029 7,016,800
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 St. Paul, MN Port Authority (Healtheast Midway Campus) 6.000 05/01/2030 508,060
- -----------------------------------------------------------------------------------------------------------------------------------
8,110,000 Washington County, MN Hsg. & Redevel. Authority
(Seasons Villas) 6.950 12/01/2023 8,378,441
--------------
17,834,242
- -----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI--1.2%
4,080,000 MS Business Finance Corp. (System Energy Resources) 1 5.875 04/01/2022 4,141,241
- -----------------------------------------------------------------------------------------------------------------------------------
1,040,000 MS Business Finance Corp. (System Energy Resources) 1 5.900 05/01/2022 1,055,766
- -----------------------------------------------------------------------------------------------------------------------------------
5,000,000 MS Home Corp. Hsg. (Valley State Student Hsg.) 5.500 12/01/2035 5,271,600
--------------
10,468,607
- -----------------------------------------------------------------------------------------------------------------------------------
MISSOURI--3.7%
365,000 Branson, MO IDA (Branson Hills) 7.050 05/01/2027 367,913
- -----------------------------------------------------------------------------------------------------------------------------------
210,000 Cameron, MO IDA Health Facilities
(Cameron Community Hospital) 6.375 12/01/2029 227,029
- -----------------------------------------------------------------------------------------------------------------------------------
750,000 Hanley Road & North of Folk Ave,
MO Transportation District 5.400 10/01/2031 745,365
29 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
MISSOURI Continued
$ 10,280,678 Hanley/Eager Rd., MO Transportation Devel. District,
Series A 0.000% 8 12/01/2023 $ 2,549,094
- -----------------------------------------------------------------------------------------------------------------------------------
13,500,000 Hazelwood, MO Transportation Devel. District
(370/Missouri Bottom Road/Tausig Road) 1 7.200 05/01/2033 14,410,980
- -----------------------------------------------------------------------------------------------------------------------------------
750,000 Maplewood, MO Tax (Maplewood South Redevel.) 5.750 11/01/2026 752,325
- -----------------------------------------------------------------------------------------------------------------------------------
20,000 MO H&EFA (Freeman Health System) 5.500 02/15/2024 20,237
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 Richmond Heights, MO Tax Increment &
Transportation Sales Tax 5.625 11/01/2025 2,522,100
- -----------------------------------------------------------------------------------------------------------------------------------
9,000,000 St. Joseph, MO IDA (Living Community of St. Joseph) 1 7.000 08/15/2032 9,633,780
- -----------------------------------------------------------------------------------------------------------------------------------
250,000 St. Joseph, MO IDA (Shoppes at North Village) 5.375 11/01/2024 248,348
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 St. Joseph, MO IDA, Series B 5 5.375 11/01/2023 991,300
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 St. Joseph, MO IDA, Series B 5 5.500 11/01/2027 999,270
--------------
33,467,741
- -----------------------------------------------------------------------------------------------------------------------------------
MONTANA--0.1%
555,000 Forsyth, MT Pollution Control (Northwestern Corp.) 6.125 05/01/2023 560,600
- -----------------------------------------------------------------------------------------------------------------------------------
30,000 Lewis & Clark County, MT Environmental (Asarco) 6,7 5.600 01/01/2027 26,419
--------------
587,019
- -----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA--1.3%
3,730,000 NE Educational Facilities Authority
(Midland Lutheran College) 5.600 09/15/2029 3,736,714
- -----------------------------------------------------------------------------------------------------------------------------------
7,900,000 Omaha, NE Public Power District, Series A 4.700 02/01/2030 7,958,539
--------------
11,695,253
- -----------------------------------------------------------------------------------------------------------------------------------
NEVADA--1.2%
2,220,000 Clark County, NV Economic Devel.
(Alexander Dawson School at Rainbow Mountain) 5.375 05/15/2033 2,318,901
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Director of the State of NV Dept. of Business
& Industry (Las Ventanas Retirement) 7.000 11/15/2034 1,057,920
- -----------------------------------------------------------------------------------------------------------------------------------
6,200,000 Las Vegas, NV Paiute Tribe, Series A 1 6.625 11/01/2017 6,960,120
--------------
10,336,941
- -----------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE--2.1%
495,000 Manchester, NH Hsg. & Redevel. Authority, Series B 0.000 8 01/01/2023 192,342
- -----------------------------------------------------------------------------------------------------------------------------------
305,000 Manchester, NH Hsg. & Redevel. Authority, Series B 0.000 8 01/01/2029 82,707
- -----------------------------------------------------------------------------------------------------------------------------------
3,220,000 Manchester, NH Hsg. & Redevel. Authority, Series B 1 0.000 8 01/01/2030 823,901
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 NH H&EFA (Catholic Medical Center) 6.125 07/01/2032 1,071,290
- -----------------------------------------------------------------------------------------------------------------------------------
4,000,000 NH H&EFA (Franklin Pierce College) 6.050 10/01/2034 4,355,400
- -----------------------------------------------------------------------------------------------------------------------------------
40,000 NH H&EFA (New Hampshire College) 6.375 01/01/2027 42,646
- -----------------------------------------------------------------------------------------------------------------------------------
1,980,000 NH H&EFA (Portsmouth Christian Academy) 5.750 07/01/2023 2,116,105
- -----------------------------------------------------------------------------------------------------------------------------------
6,115,000 NH H&EFA (Portsmouth Christian Academy) 5.850 07/01/2033 6,517,122
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 NH H&EFA (Southern New Hampshire University) 5.000 01/01/2030 1,024,500
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 NH H&EFA (Southern New Hampshire University) 5.000 01/01/2036 2,042,120
30 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE Continued
$ 500,000 NH Turnpike System, Series A 6.750% 11/01/2011 $ 533,520
--------------
18,801,653
- -----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY--3.8%
1,000,000 NJ EDA (Cigarette Tax) 5.500 06/15/2031 1,049,690
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 NJ EDA (Cigarette Tax) 5.750 06/15/2029 2,145,620
- -----------------------------------------------------------------------------------------------------------------------------------
7,480,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.000 06/01/2037 8,063,889
- -----------------------------------------------------------------------------------------------------------------------------------
9,800,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.125 06/01/2042 10,596,054
- -----------------------------------------------------------------------------------------------------------------------------------
7,000,000 NJ Tobacco Settlement Financing Corp. (TASC) 6.250 06/01/2043 8,093,750
- -----------------------------------------------------------------------------------------------------------------------------------
3,250,000 NJ Transit Corp. ROLs, Series 15 1,2 9.800 3 09/15/2015 3,969,323
--------------
33,918,326
- -----------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO--2.1%
1,495,000 Cabezon, NM Public Improvement District 6.300 09/01/2034 1,505,585
- -----------------------------------------------------------------------------------------------------------------------------------
7,895,000 Eldorado, NM Area Water & Sanitation District 6.000 02/01/2023 7,882,289
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 Farmington, NM Pollution Control
(Public Service Company of New Mexico) 6.300 12/01/2016 26,082
- -----------------------------------------------------------------------------------------------------------------------------------
3,365,000 NM Educational Assistance Foundation 5.900 09/01/2031 3,532,914
- -----------------------------------------------------------------------------------------------------------------------------------
3,000,000 NM Hsg. Authority (Villa Del Oso Apartments) 6.250 01/01/2031 3,000,870
- -----------------------------------------------------------------------------------------------------------------------------------
1,275,000 NM Hsg. Authority (Villa Del Oso Apartments) 7.500 01/01/2038 1,260,363
- -----------------------------------------------------------------------------------------------------------------------------------
1,800,000 Sandoval County, NM (Santa Ana Pueblo) 7.750 07/01/2015 1,879,308
- -----------------------------------------------------------------------------------------------------------------------------------
125,000 Santa Fe, NM Educational Facilities (College of Santa Fe) 5.875 10/01/2021 126,255
--------------
19,213,666
- -----------------------------------------------------------------------------------------------------------------------------------
NEW YORK--0.0%
50,000 NYC GO RIBS 9.266 3 08/27/2015 50,214
- -----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA--0.3%
65,000 Ashville, NC Water System 5.700 08/01/2025 67,911
- -----------------------------------------------------------------------------------------------------------------------------------
95,000 Charlotte, NC Mtg. (Tryon Hills Associate) 5.875 01/01/2025 99,532
- -----------------------------------------------------------------------------------------------------------------------------------
195,000 Charlotte-Mecklenburg, NC Hospital Authority
(Carolinas Medical Center) 5.875 01/15/2026 201,195
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 Kinston, NC Enterprise System 5.700 04/01/2021 25,994
- -----------------------------------------------------------------------------------------------------------------------------------
1,130,000 Kinston, NC Hsg. Authority (Kinston Towers) 6.750 12/01/2018 1,143,594
- -----------------------------------------------------------------------------------------------------------------------------------
105,000 NC Eastern Municipal Power Agency, Series A 5.625 01/01/2024 110,562
- -----------------------------------------------------------------------------------------------------------------------------------
140,000 NC Eastern Municipal Power Agency, Series B 5.500 01/01/2017 140,294
- -----------------------------------------------------------------------------------------------------------------------------------
640,000 NC Eastern Municipal Power Agency, Series B 5.500 01/01/2021 650,080
- -----------------------------------------------------------------------------------------------------------------------------------
475,000 NC Eastern Municipal Power Agency, Series B 5.500 01/01/2021 475,979
- -----------------------------------------------------------------------------------------------------------------------------------
20,000 NC Eastern Municipal Power Agency, Series B 6.250 01/01/2023 20,058
- -----------------------------------------------------------------------------------------------------------------------------------
30,000 NC HFA (Multifamily Hsg.) 5.450 09/01/2024 30,143
--------------
2,965,342
31 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
OHIO--0.8%
$ 490,000 Cleveland, OH Rock Glen Hsg. Assistance Corp.
(Ambleside Apartments) 7.000% 06/01/2018 $ 518,954
- -----------------------------------------------------------------------------------------------------------------------------------
530,000 Cleveland-Cuyahoga County, OH Port Authority
(Myers University) 5.600 05/15/2025 539,673
- -----------------------------------------------------------------------------------------------------------------------------------
90,000 Cuyahoga County, OH Hospital
(University Hospitals Health System) 5.625 01/15/2026 92,758
- -----------------------------------------------------------------------------------------------------------------------------------
920,000 Glenwillow Village, OH GO 5.875 12/01/2024 993,306
- -----------------------------------------------------------------------------------------------------------------------------------
1,500,000 Greene County, OH University Hsg.
(Central State University) 5.625 09/01/2032 1,575,105
- -----------------------------------------------------------------------------------------------------------------------------------
200,000 Montgomery County, OH Hospital Revenue
(Kettering Medical Center) 5.500 04/01/2026 206,838
- -----------------------------------------------------------------------------------------------------------------------------------
200,000 OH Air Quality Devel. Authority
(Cincinnati Gas & Electric Company) 5.450 01/01/2024 201,990
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 OH Air Quality Devel. Authority
(Dayton Power & Light Company) 6.100 09/01/2030 25,567
- -----------------------------------------------------------------------------------------------------------------------------------
755,000 OH Air Quality Devel. Authority
(Dayton Power & Light Company) 6.100 09/01/2030 770,704
- -----------------------------------------------------------------------------------------------------------------------------------
180,000 OH Air Quality Devel. Authority
(Dayton Power & Light Company) 6.400 08/15/2027 183,096
- -----------------------------------------------------------------------------------------------------------------------------------
70,000 OH Water Devel. Authority
(Dayton Power & Light Company) 6.400 08/15/2027 71,484
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 Port of Greater Cincinnati, OH
(Public Parking Infrastructure) 6.300 02/15/2024 535,595
- -----------------------------------------------------------------------------------------------------------------------------------
1,485,000 Port of Greater Cincinnati, OH
(Public Parking Infrastructure) 6.400 02/15/2034 1,579,194
--------------
7,294,264
- -----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA--1.6%
130,000 Claremore, OK Industrial & Redevel. Student Hsg.
(RSU Foundation) 5.750 09/01/2034 136,782
- -----------------------------------------------------------------------------------------------------------------------------------
15,000 Comanche County, OK Hospital Authority, Series A 5.375 07/01/2023 15,304
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 Langston, OK Economic Devel. Authority
(LDF Student Hsg.) 5.000 05/01/2030 2,022,180
- -----------------------------------------------------------------------------------------------------------------------------------
210,000 Tulsa, OK Metropolitan Utility Authority 5.750 09/01/2025 214,677
- -----------------------------------------------------------------------------------------------------------------------------------
12,745,000 Tulsa, OK Municipal Airport Trust (American Airlines) 6.250 06/01/2020 11,982,849
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 Tulsa, OK Municipal Airport Trust (American Airlines) 7.350 12/01/2011 25,001
--------------
14,396,793
- -----------------------------------------------------------------------------------------------------------------------------------
OREGON--0.0%
40,000 OR Hsg. & Community Services (Single Family Mtg.) 6.400 07/01/2018 40,442
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 OR Hsg. (Elderly & Disabled Hsg.) 5.500 08/01/2026 50,033
--------------
90,475
32 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--3.0%
$ 8,200,000 Allegheny County, PA HDA
(West Penn Allegheny Health System) 1 9.250% 11/15/2030 $ 9,855,990
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 Beaver County, PA IDA (Toledo Edison Company) 7.750 05/01/2020 25,846
- -----------------------------------------------------------------------------------------------------------------------------------
1,500,000 Chester County, PA H&EFA (Jenners Pond) 7.750 07/01/2034 1,563,090
- -----------------------------------------------------------------------------------------------------------------------------------
6,000,000 Cumberland County, PA Municipal Authority
(Wesley Affiliated Services) 7.250 01/01/2035 6,587,220
- -----------------------------------------------------------------------------------------------------------------------------------
3,955,000 Northumberland County, PA IDA (NHS Youth Services) 7.750 02/15/2029 4,150,377
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Philadelphia, PA H&HEFA
(Centralized Comprehensive Human Services) 7.250 01/01/2021 1,073,870
- -----------------------------------------------------------------------------------------------------------------------------------
1,200,000 Philadelphia, PA H&HEFA
(Temple University Children's Medical Center) 5.625 06/15/2019 1,225,464
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Philadelphia, PA Redevel. Authority
(Beech Student Hsg. Complex), Series A 5.625 07/01/2023 1,065,990
- -----------------------------------------------------------------------------------------------------------------------------------
1,500,000 Philadelphia, PA Redevel. Authority
(Beech Student Hsg. Complex), Series A 5.625 07/01/2028 1,586,670
--------------
27,134,517
- -----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND--0.8%
5,000,000 Central Falls, RI Detention Facility 1 7.250 07/15/2035 5,142,600
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 Providence, RI HDC (Barbara Jordan Apartments) 6.750 07/01/2025 50,578
- -----------------------------------------------------------------------------------------------------------------------------------
40,000 RI Hsg. & Mtg. Finance Corp.
(Homeownership Opportunity) 6.500 04/01/2027 40,055
- -----------------------------------------------------------------------------------------------------------------------------------
1,500,000 Tiverton, RI Special Obligation Tax
(Mount Hope Bay Village) 6.875 05/01/2022 1,595,025
--------------
6,828,258
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA--0.8%
15,000 Greenville County, SC School District 5.500 12/01/2028 16,260
- -----------------------------------------------------------------------------------------------------------------------------------
2,500,000 Greenville County, SC School District ROLs 2 10.957 3 12/01/2020 2,884,550
- -----------------------------------------------------------------------------------------------------------------------------------
35,000 Marion County, SC Hospital District 5.375 11/01/2025 35,859
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 SC Connector 2000 Association Toll Road, Series B 0.000 8 01/01/2021 214,210
- -----------------------------------------------------------------------------------------------------------------------------------
10,355,000 SC Connector 2000 Association Toll Road, Series B 0.000 8 01/01/2026 3,292,476
- -----------------------------------------------------------------------------------------------------------------------------------
600,000 SC Jobs-Economic Devel. Authority
(Oconee Memorial Hospital) 6.150 03/01/2025 613,506
--------------
7,056,861
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA--1.6%
6,000,000 SD Educational Enhancement Funding Corp.
Tobacco Settlement 1 6.500 06/01/2032 6,563,640
- -----------------------------------------------------------------------------------------------------------------------------------
7,500,000 Sioux Falls, SD Health Facilities
(Rummel Memorial Home) 6.750 11/15/2033 7,747,050
--------------
14,310,690
33 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE--2.5%
$ 3,500,000 Bradley County, TN Industrial Devel. Board (Olin Corp.) 6.625% 11/01/2017 $ 3,815,945
- -----------------------------------------------------------------------------------------------------------------------------------
2,750,000 Chattanooga, TN Health Educational & Hsg. Board
(Campus Devel. Foundation Phase I) 5.000 10/01/2025 2,723,958
- -----------------------------------------------------------------------------------------------------------------------------------
5,000,000 Chattanooga, TN Health Educational & Hsg. Board
(Campus Devel. Foundation Phase I) 5.125 10/01/2035 4,976,800
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 Hamilton County, TN Industrial Devel. Board (Park at 58) 6.700 03/01/2021 86,616
- -----------------------------------------------------------------------------------------------------------------------------------
3,020,000 Maury County, TN Industrial Devel. Board
(General Motors Company) 1 6.500 09/01/2024 3,029,332
- -----------------------------------------------------------------------------------------------------------------------------------
1,500,000 Shelby County, TN HE&HF
(Cornerstone-Cameron & Stonegate) 6.000 07/01/2028 1,068,000
- -----------------------------------------------------------------------------------------------------------------------------------
5,980,000 Smyrna, TN Hsg. Association
(Imperial Garden Apartments) 6.450 10/20/2035 6,701,965
--------------
22,402,616
- -----------------------------------------------------------------------------------------------------------------------------------
TEXAS--12.3%
15,000 Argyle, TX Independent School District 5.500 08/15/2026 15,773
- -----------------------------------------------------------------------------------------------------------------------------------
26,055,000 Austin, TX Convention Enterprises (Convention Center) 5.750 01/01/2032 27,126,121
- -----------------------------------------------------------------------------------------------------------------------------------
10,765,000 Bexar County, TX HFC (American Opportunity Hsg.) 1 6.750 12/01/2037 10,242,898
- -----------------------------------------------------------------------------------------------------------------------------------
200,000 Bexar County, TX HFC
(American Opportunity Hsg.-Nob Hill Apartments) 6.000 06/01/2031 200,290
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Bexar County, TX HFC
(The Army Retirement Residence Foundation) 6.300 07/01/2032 1,079,230
- -----------------------------------------------------------------------------------------------------------------------------------
145,000 Brazos County, TX HFDC
(St. Joseph Hospital & Health Center) 6.000 01/01/2019 145,934
- -----------------------------------------------------------------------------------------------------------------------------------
200,000 Brazos River Authority, TX Special Facilities
(Lake Alan Henry) 5.500 08/15/2013 200,284
- -----------------------------------------------------------------------------------------------------------------------------------
200,000 Dallas-Fort Worth, TX Regional Airport 6.000 11/01/2009 200,514
- -----------------------------------------------------------------------------------------------------------------------------------
265,000 El Paso County, TX HFC
(American Village Communities), Series A 6.250 12/01/2020 275,226
- -----------------------------------------------------------------------------------------------------------------------------------
285,000 El Paso County, TX HFC
(El Paso American Hsg. Foundation), Series A 6.375 12/01/2032 293,710
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Folk, TX Avenue South Transportation District 5.625 11/01/2031 1,001,710
- -----------------------------------------------------------------------------------------------------------------------------------
550,000 Garza County, TX Public Facility Corp. 7.500 10/01/2019 590,502
- -----------------------------------------------------------------------------------------------------------------------------------
3,730,000 Harris County, TX Toll Road RITES 2 12.454 3 08/15/2024 5,112,338
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 Irving, TX Hospital Authority (Irving Healthcare System) 5.750 07/01/2010 100,241
- -----------------------------------------------------------------------------------------------------------------------------------
165,000 Keller, TX Independent School District GO 5.400 08/15/2023 168,736
- -----------------------------------------------------------------------------------------------------------------------------------
650,000 Lewisville, TX Combination Contract 6.000 10/01/2015 722,105
- -----------------------------------------------------------------------------------------------------------------------------------
1,325,000 Lewisville, TX Combination Contract 6.000 10/01/2025 1,470,273
- -----------------------------------------------------------------------------------------------------------------------------------
5,510,000 Lewisville, TX Combination Contract 6.000 10/01/2034 6,096,650
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 Lewisville, TX GO 5.700 09/01/2028 106,256
- -----------------------------------------------------------------------------------------------------------------------------------
3,000,000 Lewisville, TX GO 6.125 09/01/2029 3,282,930
- -----------------------------------------------------------------------------------------------------------------------------------
1,175,000 Lubbock, TX HFC (Las Colinas Quail Creek Apartments) 6.000 07/01/2022 1,201,261
- -----------------------------------------------------------------------------------------------------------------------------------
1,530,000 Lubbock, TX HFC (Las Colinas Quail Creek Apartments) 6.000 07/01/2025 1,560,692
34 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
TEXAS Continued
$ 655,000 Lubbock, TX HFC (Las Colinas Quail Creek Apartments) 6.000% 07/01/2032 $ 665,552
- -----------------------------------------------------------------------------------------------------------------------------------
20,350,000 Matagorda County, TX Navigation District
(Centerpoint Energy) 8.000 05/01/2029 22,365,429
- -----------------------------------------------------------------------------------------------------------------------------------
75,000 Mission, TX Economic Devel. Corp. 6.600 01/01/2020 75,739
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 North Central, TX HFDC (Northwest Senior Hsg. Corp.) 7.250 11/15/2019 2,159,720
- -----------------------------------------------------------------------------------------------------------------------------------
3,000,000 North Central, TX HFDC (Northwest Senior Hsg. Corp.) 7.500 11/15/2029 3,245,130
- -----------------------------------------------------------------------------------------------------------------------------------
1,910,000 Nueces County, TX HFC (Dolphins Landing Apartments) 6.750 07/01/2020 1,930,953
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 Nueces, TX River Authority (Asarco) 6,7 5.600 04/01/2018 91,132
- -----------------------------------------------------------------------------------------------------------------------------------
200,000 Pantego, TX Economic Devel. Corp. (Sales Tax) 5.850 02/15/2022 203,132
- -----------------------------------------------------------------------------------------------------------------------------------
1,680,000 Retama, TX Devel. Corp. (Retama Racetrack) 10.000 12/15/2019 2,525,998
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 Ridge Parc, TX Devel. Corp (Multifamily) 6.100 06/20/2033 551,900
- -----------------------------------------------------------------------------------------------------------------------------------
4,020,000 Sabine River Authority, TX Pollution Control
(TXU Energy Company) 1 6.150 08/01/2022 4,430,643
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 Temple, TX Junior College District 5.800 07/01/2014 102,696
- -----------------------------------------------------------------------------------------------------------------------------------
2,125,000 Tomball, TX Hospital Authority
(Tomball Regional Hospital) 6.125 07/01/2023 2,155,388
- -----------------------------------------------------------------------------------------------------------------------------------
445,000 TX Affordable Hsg. Corp.
(Ashton Place & Woodstock Apartments) 6.300 08/01/2033 316,493
- -----------------------------------------------------------------------------------------------------------------------------------
50,000 TX Dormitory Finance Authority
(Temple Junior College Foundation) 5.750 09/01/2027 52,824
- -----------------------------------------------------------------------------------------------------------------------------------
525,000 TX Panhandle HFA (Amarillo Affordable Hsg.) 6.625 03/01/2020 543,039
- -----------------------------------------------------------------------------------------------------------------------------------
1,980,000 TX Panhandle HFA (Amarillo Affordable Hsg.) 6.750 03/01/2031 2,045,043
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 Westador, TX Municipal Utility District GO 6.875 03/01/2009 25,676
- -----------------------------------------------------------------------------------------------------------------------------------
4,750,000 Wichita County, TX HFDC
(Wichita Falls Retirement Foundation) 6.250 01/01/2028 4,825,905
--------------
109,506,066
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--0.2%
1,500,000 Puerto Rico Municipal Finance Agency RITES 2 8.554 3 08/01/2015 1,840,110
- -----------------------------------------------------------------------------------------------------------------------------------
UTAH--0.3%
135,000 Emery County, UT Pollution Control (Pacificorp) 5.650 11/01/2023 135,905
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 Murray City, UT Hospital RITES 2 10.954 3 05/15/2022 2,185,120
- -----------------------------------------------------------------------------------------------------------------------------------
15,000 Sandy City, UT Industrial Devel. (King Properties) 6.125 08/01/2016 15,038
--------------
2,336,063
- -----------------------------------------------------------------------------------------------------------------------------------
VERMONT--0.0%
225,000 VT EDA (Wake Robin Corp.) 6.000 03/01/2022 238,433
- -----------------------------------------------------------------------------------------------------------------------------------
130,000 VT EDA (Wake Robin Corp.) 6.300 03/01/2033 138,288
--------------
376,721
- -----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA--3.6%
20,000 Alexandria, VA IDA Pollution Control
(Potomac Electric Power Company) 5.375 02/15/2024 20,175
35 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA Continued
$ 2,300,000 Buena Vista, VA Public Recreational Facilities
Authority (Golf Course) 1 5.250% 07/15/2025 $ 2,423,050
- -----------------------------------------------------------------------------------------------------------------------------------
1,090,000 Buena Vista, VA Public Recreational Facilities
Authority (Golf Course) 1 5.500 07/15/2035 1,157,820
- -----------------------------------------------------------------------------------------------------------------------------------
920,000 Fairfax County, VA Redevel. & Hsg. Authority
(Burke Shire Commons) 7.600 10/01/2036 988,411
- -----------------------------------------------------------------------------------------------------------------------------------
20,000 Fairfax County, VA Redevel. & Hsg. Authority
(Paul Spring Retirement Center) 6.000 12/15/2028 21,001
- -----------------------------------------------------------------------------------------------------------------------------------
465,000 Louisa, VA IDA Pollution Control
(Virginia Electric & Power Company) 5.450 01/01/2024 472,538
- -----------------------------------------------------------------------------------------------------------------------------------
4,000,000 Norfolk, VA Water 5.875 11/01/2020 4,109,080
- -----------------------------------------------------------------------------------------------------------------------------------
315,000 Norton, VA IDA (Norton Community Hospital) 6.000 12/01/2022 340,087
- -----------------------------------------------------------------------------------------------------------------------------------
3,000,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 8 08/15/2008 2,408,850
- -----------------------------------------------------------------------------------------------------------------------------------
700,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 8 08/15/2012 485,926
- -----------------------------------------------------------------------------------------------------------------------------------
35,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 8 08/15/2015 20,613
- -----------------------------------------------------------------------------------------------------------------------------------
2,715,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 8 08/15/2017 1,415,764
- -----------------------------------------------------------------------------------------------------------------------------------
4,610,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 8 08/15/2018 2,254,982
- -----------------------------------------------------------------------------------------------------------------------------------
3,255,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 8 08/15/2020 1,420,157
- -----------------------------------------------------------------------------------------------------------------------------------
13,855,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 8 08/15/2021 5,706,320
- -----------------------------------------------------------------------------------------------------------------------------------
12,270,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 1 0.000 8 08/15/2022 4,767,877
- -----------------------------------------------------------------------------------------------------------------------------------
585,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 8 08/15/2024 198,508
- -----------------------------------------------------------------------------------------------------------------------------------
985,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 0.000 8 08/15/2030 236,006
- -----------------------------------------------------------------------------------------------------------------------------------
1,150,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.000 08/15/2010 1,186,662
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 1 5.000 08/15/2011 1,027,310
- -----------------------------------------------------------------------------------------------------------------------------------
25,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 5.500 08/15/2028 25,225
- -----------------------------------------------------------------------------------------------------------------------------------
1,105,000 Pocahontas Parkway Association, VA
(Route 895 Connector Toll Road) 1 5.500 08/15/2028 1,151,509
--------------
31,837,871
36 | OPPENHEIMER AMT-FREE MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON--4.9%
$ 2,500,000 King County, WA Sewer RITES 2 11.454% 3 01/01/2024 $ 3,158,750
- -----------------------------------------------------------------------------------------------------------------------------------
200,000 Kitsap County, WA Consolidated Hsg. Authority 5.600 12/01/2028 204,502
- -----------------------------------------------------------------------------------------------------------------------------------
100,000 Port Camas, WA Public Industrial Corp.
(James River Corp. of VA) 6.700 04/01/2023 100,099
- -----------------------------------------------------------------------------------------------------------------------------------
20,000 Port of Seattle, WA, Series A 5.500 09/01/2021 20,788
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 Skagit County, WA Public Hospital District
(Skagit Valley Hospital) 5.375 12/01/2022 518,435
- -----------------------------------------------------------------------------------------------------------------------------------
500,000 Skagit County, WA Public Hospital District
(Skagit Valley Hospital) 5.500 12/01/2030 517,340
- -----------------------------------------------------------------------------------------------------------------------------------
2,200,000 Vancouver, WA Downtown Redevel. Authority
(Conference Center) 5.250 01/01/2034 2,250,996
- -----------------------------------------------------------------------------------------------------------------------------------
3,250,000 Vancouver, WA Downtown Redevel. Authority
(Conference Center) 6.000 01/01/2034 3,501,095
- -----------------------------------------------------------------------------------------------------------------------------------
15,030,000 WA Health Care Facilities Authority
(Overlake Hospital Medical Center) 5.000 07/01/2025 15,522,233
- -----------------------------------------------------------------------------------------------------------------------------------
5,855,000 WA Health Care Facilities Authority
(Overlake Hospital Medical Center) 5.000 07/01/2030 6,004,478
- -----------------------------------------------------------------------------------------------------------------------------------
10,595,000 WA Health Care Facilities Authority
(Overlake Hospital Medical Center) 5.000 07/01/2038 10,814,846
- -----------------------------------------------------------------------------------------------------------------------------------
90,000 WA Health Care Facilities Authority
(Yakima Valley Memorial Hospital Association) 5.375 12/01/2027 92,994
- -----------------------------------------------------------------------------------------------------------------------------------
1,350,000 WA HFC (Nickerson Area Properties) 5.300 01/01/2028 1,388,624
--------------
44,095,180
- -----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA--0.4%
1,540,000 West Liberty State College, WV, Series A 6.000 06/01/2023 1,586,878
- -----------------------------------------------------------------------------------------------------------------------------------
1,695,000 West Liberty State College, WV, Series A 6.125 06/01/2028 1,754,495
- -----------------------------------------------------------------------------------------------------------------------------------
110,000 WV GO 5.750 11/01/2021 115,870
--------------
3,457,243
- -----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN--0.9%
650,000 New Berlin, WI Hsg. Authority (Apple Glen) 6.700 11/01/2020 671,938
- -----------------------------------------------------------------------------------------------------------------------------------
2,000,000 WI H&EFA (AHC/SLMC/HMH/AMCS Obligated Group) 5.875 08/15/2026 2,096,440
- -----------------------------------------------------------------------------------------------------------------------------------
2,275,000 WI H&EFA (Hess Memorial Hospital Association) 7.875 11/01/2022 2,342,704
- -----------------------------------------------------------------------------------------------------------------------------------
870,000 WI H&EFA (Three Pillars Senior Living) 5.500 08/15/2034 884,416
- -----------------------------------------------------------------------------------------------------------------------------------
1,075,000 WI H&EFA (WMA/MHCC/MVS Obligated Group) 5.600 08/15/2023 1,112,303
- -----------------------------------------------------------------------------------------------------------------------------------
1,000,000 WI H&EFA (WMA/MHCC/MVS Obligated Group) 5.750 08/15/2026 1,038,750
- -----------------------------------------------------------------------------------------------------------------------------------
130,000 WI Hsg. & Economic Devel. Authority, Series A 6.850 11/01/2012 130,242
--------------
8,276,793
- -----------------------------------------------------------------------------------------------------------------------------------
WYOMING--1.4%
11,680,000 Sweetwater County, WY Pollution Control
(Idaho Power Company) 1 6.050 07/15/2026 12,153,624
37 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SEE NOTE 1
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $897,909,258)--106.3% $ 949,897,200
- -------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(6.3) (56,652,440)
-------------
NET ASSETS--100.0% $ 893,244,760
=============
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Security has been segregated for collateral to cover borrowings. See Note 6
of Notes to Financial Statements.
2. Illiquid security. The aggregate value of illiquid securities as of July 31,
2005 was $87,388,761, which represents 9.78% of the Fund's net assets. See Note
5 of Notes to Financial Statements.
3. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.
4. Represents the current interest rate for a variable or increasing rate
security.
5. When-issued security or forward commitment to be delivered and settled after
July 31, 2005. See Note 1 of Notes to Financial Statements.
6. Issue is in default. See Note 1 of Notes to Financial Statements.
7. Non-income producing security.
8. Represents a zero coupon bond.
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
ADA Atlanta Development Authority HE&HF Higher Educational and Housing Facilities
AHC Aurora Health Center HFA Housing Finance Agency/Authority
AMCS Aurora Medical Center of Sheboygan HFC Housing Finance Corp.
County HFDC Health Facilities Development Corp.
BHM Baptist Hospital of Miami HHI Homestead Hospital
BHSSF Baptist Health System of South Florida HMH Hartford Memorial Hospital
CAU Clark Atlanta University IDA Industrial Development Agency
CDA Communities Development Authority INFLOS Inverse Floating Rate Securities
COP Certificates of Participation MHCC Masonic Health Care Center
EDA Economic Development Authority MVS Masonic Village on the Square
EDC Economic Development Corporation NYC New York City
EF&CD Environmental Facilities and Community RIBS Residual Interest Bonds
Development RITES Residual Interest Tax Exempt Security
FHA Federal Housing Agency ROLs Residual Option Longs
GO General Obligation SAVRS Select Auction Variable Rate Securities
H&EFA Health and Educational Facilities SLMC St. Luke's Medical Center
Authority SMH South Miami Hospital
H&HEFA Hospitals and Higher Education Facilities SMHS South Miami Health System
Authority TASC Tobacco Settlement Asset-Backed Bonds
HDA Hospital Development Authority WMA Wisconsin Masonic Home
HDC Housing Development Corp.
38 | OPPENHEIMER AMT-FREE MUNICIPALS
- --------------------------------------------------------------------------------
SUMMARY OF RATINGS July 31, 2005 / Unaudited
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY RATINGS CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
RATING PERCENT
- --------------------------------------------------------------------------------
AAA 11.9%
AA 4.3
A 23.2
BBB 40.1
BB 2.5
B 2.6
CCC 1.1
CC 0.4
Not Rated 13.9
-----
Total 100.0%
=====
Bonds rated by any nationally recognized statistical rating organization are
included in the equivalent Standard & Poor's rating category. As a general
matter, unrated bonds may be backed by mortgage liens or equipment liens on the
underlying property, and also may be guaranteed. Bonds which are backed by a
letter of credit or by other financial institutions or agencies may be assigned
an investment-grade rating by the Manager, which reflects the quality of the
guarantor, institution or agency. Unrated bonds may also be assigned a rating
when the issuer has rated bonds outstanding with comparable credit
characteristics, or when, in the opinion of the Manager, the bond itself
possesses credit characteristics which allow for rating. The unrated bonds in
the portfolio are predominantly smaller issuers which have not applied for a
bond rating. Only those unrated bonds which subsequent to purchase have not been
designated investment grade by the Manager are included in the "Not Rated"
category.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
39 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF ASSETS AND LIABILITIES July 31, 2005
- --------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------------------
Investments, at value (cost $897,909,258)--see accompanying statement of investments $ 949,897,200
- -----------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 12,992,422
Investments sold 12,556,637
Shares of beneficial interest sold 8,772,798
Other 27,162
-----------
Total assets 984,246,219
- -----------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------
Bank overdraft 4,124,008
- -----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Payable on borrowings (See Note 6) 55,200,000
Investments purchased (including $22,418,783 purchased on a when-issued basis
or forward commitment) 29,741,726
Dividends 718,662
Shares of beneficial interest redeemed 655,014
Distribution and service plan fees 171,281
Trustees' compensation 138,753
Interest expense 114,061
Shareholder communications 40,505
Transfer and shareholder servicing agent fees 39,035
Other 58,414
-------------
Total liabilities 91,001,459
- -----------------------------------------------------------------------------------------------------
NET ASSETS $ 893,244,760
=============
- -----------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 87,913
- -----------------------------------------------------------------------------------------------------
Additional paid-in capital 852,484,880
- -----------------------------------------------------------------------------------------------------
Accumulated net investment income 4,921,759
- -----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (16,237,734)
- -----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 51,987,942
-------------
NET ASSETS $ 893,244,760
=============
40 | OPPENHEIMER AMT-FREE MUNICIPALS
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ---------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $780,570,711 and
76,790,451 shares of beneficial interest outstanding) $ 10.16
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $ 10.67
- ---------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $41,867,037 and 4,132,552 shares
of beneficial interest outstanding) $ 10.13
- ---------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $70,807,012 and 6,990,479 shares
of beneficial interest outstanding) $ 10.13
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENT OF OPERATIONS For the Year Ended July 31, 2005
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ----------------------------------------------------------------------------------------------------------
Interest $ 46,826,903
- ----------------------------------------------------------------------------------------------------------
EXPENSES
- ----------------------------------------------------------------------------------------------------------
Management fees 3,739,885
- ----------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,476,481
Class B 433,615
Class C 400,752
- ----------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 369,107
Class B 29,213
Class C 24,484
- ----------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 58,300
Class B 5,101
Class C 4,320
- ----------------------------------------------------------------------------------------------------------
Interest expense 588,493
- ----------------------------------------------------------------------------------------------------------
Custodian fees and expenses 36,738
- ----------------------------------------------------------------------------------------------------------
Trustees' compensation 20,540
- ----------------------------------------------------------------------------------------------------------
Other 122,678
-------------
Total expenses 7,309,707
Less reduction to custodian expenses (4,201)
-------------
Net expenses 7,305,506
- ----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 39,521,397
- ----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- ----------------------------------------------------------------------------------------------------------
Net realized gain on investments 3,876,042
- ----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 40,816,767
- ----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 84,214,206
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
42 | OPPENHEIMER AMT-FREE MUNICIPALS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED JULY 31, 2005 2004
- -----------------------------------------------------------------------------------------------------------------------
OPERATIONS
- -----------------------------------------------------------------------------------------------------------------------
Net investment income $ 39,521,397 $ 39,492,433
- -----------------------------------------------------------------------------------------------------------------------
Net realized gain 3,876,042 6,203,618
- -----------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 40,816,767 12,342,456
------------------------------
Net increase in net assets resulting from operations 84,214,206 58,038,507
- -----------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (35,574,265) (31,442,955)
Class B (2,106,289) (2,674,280)
Class C (1,913,538) (1,232,388)
- -----------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Class A 172,919,909 (4,849,786)
Class B (8,015,276) (18,310,245)
Class C 40,746,553 3,484,973
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------
Total increase 250,271,300 3,013,826
- -----------------------------------------------------------------------------------------------------------------------
Beginning of period 642,973,460 639,959,634
------------------------------
End of period (including accumulated net investment income of
$4,921,759 and $4,994,454, respectively) $ 893,244,760 $ 642,973,460
==============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
43 | OPPENHEIMER AMT-FREE MUNICIPALS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED JULY 31, 2005 2004 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.53 $ 9.19 $ 9.48 $ 9.57 $ 9.35
- ---------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .55 1 .59 .57 .50 .52
Net realized and unrealized gain (loss) .63 .28 (.32) (.10) .22
-------------------------------------------------------------------
Total from investment operations 1.18 .87 .25 .40 .74
- ---------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.55) (.53) (.54) (.49) (.52)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.16 $ 9.53 $ 9.19 $ 9.48 $ 9.57
===================================================================
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 12.69% 9.60% 2.46% 4.39% 8.03%
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 780,571 $ 568,156 $ 553,344 $ 568,935 $ 584,325
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 639,474 $ 567,291 $ 569,881 $ 568,951 $ 531,286
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.56% 6.18% 5.82% 5.35% 5.38%
Total expenses 0.92% 0.92% 0.93% 0.88% 0.85% 4
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5,6,7 0.88% 0.85% 4 N/A
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 31% 33% 99% 31% 20%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an initial investment on the business day before the first day of the
fiscal period, with all dividends and distributions reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Sales charges are not
reflected in the total returns. Total returns are not annualized for periods of
less than one full year. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. Voluntary waiver of management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
44 | OPPENHEIMER AMT-FREE MUNICIPALS
CLASS B YEAR ENDED JULY 31, 2005 2004 2003 2002 2001
- ----------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.50 $ 9.17 $ 9.45 $ 9.55 $ 9.33
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .48 1 .52 .49 .43 .45
Net realized and unrealized gain (loss) .63 .27 (.31) (.11) .21
--------------------------------------------------------------------
Total from investment operations 1.11 .79 .18 .32 .66
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.48) (.46) (.46) (.42) (.44)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.13 $ 9.50 $ 9.17 $ 9.45 $ 9.55
====================================================================
- ----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 11.87% 8.68% 1.80% 3.50% 7.23%
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 41,867 $ 47,024 $ 63,104 $ 72,241 $ 76,880
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 43,648 $ 55,864 $ 67,721 $ 73,571 $ 65,563
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.83% 5.42% 5.04% 4.58% 4.60%
Total expenses 1.69% 1.69% 1.69% 1.65% 1.62% 4
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5,6,7 1.64% 1.62% 4 N/A
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 31% 33% 99% 31% 20%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an initial investment on the business day before the first day of the
fiscal period, with all dividends and distributions reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Sales charges are not
reflected in the total returns. Total returns are not annualized for periods of
less than one full year. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. Voluntary waiver of management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
45 | OPPENHEIMER AMT-FREE MUNICIPALS
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS C YEAR ENDED JULY 31, 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.50 $ 9.16 $ 9.45 $ 9.55 $ 9.33
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .47 1 .51 .49 .43 .44
Net realized and unrealized gain (loss) .64 .29 (.32) (.11) .22
---------------------------------------------------------------------------------
Total from investment operations 1.11 .80 .17 .32 .66
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.48) (.46) (.46) (.42) (.44)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.13 $ 9.50 $ 9.16 $ 9.45 $ 9.55
=================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 11.87% 8.79% 1.67% 3.50% 7.23%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 70,807 $ 27,793 $ 23,511 $ 20,491 $ 17,134
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 40,236 $ 25,810 $ 22,345 $ 17,776 $ 14,506
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.70% 5.39% 5.04% 4.57% 4.60%
Total expenses 1.69% 1.70% 1.71% 1.65% 1.62% 4
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5,6,7 1.66% 1.62% 4 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 31% 33% 99% 31% 20%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an initial investment on the business day before the first day of the
fiscal period, with all dividends and distributions reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Sales charges are not
reflected in the total returns. Total returns are not annualized for periods of
less than one full year. Returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
7. Voluntary waiver of management fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
46 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1.SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer AMT-Free Municipals (the Fund), is registered under the Investment
Company Act of 1940, as amended, as an open end management investment company.
The Fund's investment objective is to seek as high a level of current interest
income exempt from federal income taxes as is available from investing in
municipal securities, while attempting to preserve capital. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ due
to each class having its own expenses, such as transfer and shareholder
servicing agent fees and shareholder communications, directly attributable to
that class. Class A, B and C have separate distribution and/or service plans.
Class B shares will automatically convert to Class A shares six years after the
date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities listed
or traded on National Stock Exchanges or other domestic 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.
Securities traded on foreign exchanges are valued based on the last sale price
on the principal exchange on which the security is traded, in the country that
is identified by the portfolio pricing service, prior to the time when the
Fund's assets are valued. In the absence of a sale, the security is valued at
the official closing price on the principal exchange. 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. Futures contracts traded on a commodities or futures
exchange will be valued at the final settlement price or official closing price
on the principal exchange as reported by such principal exchange at its trading
session ending at, or most recently prior to, the time when the Fund's assets
are valued. 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
47 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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).
- --------------------------------------------------------------------------------
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 July 31, 2005, the Fund had purchased $22,418,783
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 $87,387,495 as of July 31, 2005, which represents
8.88% of the Fund's total assets.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed-income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default. As of July 31, 2005, securities with an aggregate
market value of $226,604, representing 0.03% of the Fund's net assets, were in
default.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such
48 | OPPENHEIMER AMT-FREE MUNICIPALS
class. Operating expenses directly attributable to a specific class are charged
against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3 TAX PURPOSES
-------------------------------------------------------------------------
$ 5,799,916 $ -- $ 16,237,734 $ 51,987,942
1. As of July 31, 2005, the Fund had $16,237,734 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of July 31, 2005, details
of the capital loss carryforward were as follows:
EXPIRING
---------------------------
2010 $ 16,237,734
2. During the fiscal year ended July 31, 2005, the Fund utilized $3,857,110 of
capital loss carryforward to offset capital gains realized in that fiscal year.
3. During the fiscal year ended July 31, 2004, the Fund utilized $6,159,705 of
capital loss carryforward to offset capital gains realized in that fiscal year.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly, the
following amounts have been reclassified for July 31, 2005. Net assets of the
Fund were unaffected by the reclassifications.
INCREASE TO
ACCUMULATED NET
INCREASE TO REALIZED LOSS
PAID-IN CAPITAL ON INVESTMENTS
--------------------------------------------
$ 2,051,495 $ 2,051,495
49 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The tax character of distributions paid during the years ended July 31, 2005 and
July 31, 2004 was as follows:
YEAR ENDED YEAR ENDED
JULY 31, 2005 JULY 31, 2004
---------------------------------------------------------
Distributions paid from:
Exempt-interest dividends $ 39,594,092 $ 35,349,623
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of July 31, 2005 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.
Federal tax cost of securities $ 897,909,258
===============
Gross unrealized appreciation $ 54,975,431
Gross unrealized depreciation (2,987,489)
---------------
Net unrealized appreciation $ 51,987,942
===============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the year ended July 31,
2005, the Fund's projected benefit obligations were increased by $3,101 and
payments of $9,858 were made to retired trustees, resulting in an accumulated
liability of $113,640 as of July 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.
50 | OPPENHEIMER AMT-FREE 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:
YEAR ENDED JULY 31, 2005 YEAR ENDED JULY 31, 2004
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------
CLASS A
Sold 22,462,562 $ 225,450,851 8,210,670 $ 78,148,633
Dividends and/or
distributions reinvested 2,353,091 23,430,233 2,229,147 21,257,888
Redeemed (7,639,925) (75,961,175) (11,015,574) (104,256,307)
--------------------------------------------------------------
Net increase (decrease) 17,175,728 $ 172,919,909 (575,757) $ (4,849,786)
==============================================================
- --------------------------------------------------------------------------------------------
CLASS B
Sold 907,824 $ 9,033,823 723,519 $ 6,876,990
Dividends and/or
distributions reinvested 126,314 1,251,676 164,028 1,558,967
Redeemed (1,851,835) (18,300,775) (2,822,542) (26,746,202)
--------------------------------------------------------------
Net decrease (817,697) $ (8,015,276) (1,934,995) $ (18,310,245)
==============================================================
- --------------------------------------------------------------------------------------------
CLASS C
Sold 4,627,986 $ 46,321,787 1,005,569 $ 9,584,113
Dividends and/or
distributions reinvested 125,410 1,246,348 94,290 896,886
Redeemed (688,957) (6,821,582) (739,420) (6,996,026)
--------------------------------------------------------------
Net increase 4,064,439 $ 40,746,553 360,439 $ 3,484,973
==============================================================
51 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS 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 year ended July 31, 2005, were as follows:
PURCHASES SALES
-----------------------------------------------------
Investment securities $396,576,290 $188,346,704
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.60% of the first $200 million of average annual net assets,
0.55% of the next $100 million, 0.50% of the next $200 million, 0.45% of the
next $250 million, 0.40% of the next $250 million, and 0.35% of average annual
net assets over $1 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the year ended July 31, 2005, the Fund paid $419,357
to OFS for services to the Fund.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
years. Fees incurred by the Fund under the Plan are detailed in the Statement of
Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% per year on Class B and
Class C shares. The Distributor also receives a service fee of up to 0.25% per
year under each plan. If either the Class B or Class C plan is terminated by the
Fund or by the shareholders of a class, the Board of Trustees and its
independent trustees must determine whether the Distributor shall be entitled to
payment from the Fund of all or a portion of the service fee and/or asset-based
sales charge in respect to shares sold prior to the effective date of such
termination. The Distributor's aggregate uncompensated expenses under the plan
at July 31, 2005 for Class B and Class C
52 | OPPENHEIMER AMT-FREE MUNICIPALS
shares were $1,488,971 and $1,095,099, respectively. Fees incurred by the Fund
under the plans are detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------
July 31, 2005 $391,535 $26,145 $122,094 $8,476
- --------------------------------------------------------------------------------
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 July 31, 2005, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund will not invest more than 10% of its net assets (determined at the time of
purchase and reviewed periodically) in illiquid securities. Securities that are
illiquid are marked with the applicable footnote on the Statement of
Investments.
- --------------------------------------------------------------------------------
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
53 | OPPENHEIMER AMT-FREE MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. BORROWINGS Continued
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 (3.3439% as of July 31,
2005). The Fund pays additional fees of 0.30% per annum on its outstanding
borrowings to manage and administer the facility and is allocated its pro-rata
share of a 0.13% per annum commitment fee for a liquidity backstop facility with
respect to the $800 million facility size.
For the year ended July 31, 2005, the average daily loan balance was
$20,816,438 at an average daily interest rate of 2.749%. The Fund had borrowings
outstanding of $55,200,000 at July 31, 2005 at an interest rate of 3.3439%. The
Fund had gross borrowings and gross loan repayments of $276,000,000 and
$252,600,000, respectively, during the year ended July 31, 2005. The maximum
amount of borrowings outstanding at any month-end during the year ended July 31,
2005 was $55,200,000. The Fund paid $52,789 in fees and $478,177 in interest
during the year ended July 31, 2005.
- --------------------------------------------------------------------------------
7. LITIGATION
A consolidated amended complaint has been filed as putative derivative and class
actions against the Manager, OFS and the Distributor, 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 defendants believe that the allegations contained in the Complaints
are without merit and that they have meritorious defenses against the claims
asserted. The defendants intend to defend these lawsuits vigorously and to
contest any claimed liability. The 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.
54 | OPPENHEIMER AMT-FREE MUNICIPALS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER AMT-FREE MUNICIPALS:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer AMT-Free Municipals, including the statement of investments, as of
July 31, 2005, and the related statement of operations for the year then ended,
the statements of changes in net assets for each of the years in the two-year
period then ended, and the financial highlights for each of the years in the
five-year period then ended. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of July 31, 2005, by correspondence with the
custodian and brokers or by other appropriate auditing procedures where replies
from brokers were not received. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer AMT-Free Municipals as of July 31, 2005, the results of its
operations for the year then ended, the changes in its net assets for each of
the years in the two-year period then ended, and the financial highlights for
each of the years in the five-year period then ended, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Denver, Colorado
September 13, 2005
55 | OPPENHEIMER AMT-FREE MUNICIPALS
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2006, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2005. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
None of the dividends paid by the Fund during the year ended July 31, 2005
are eligible for the corporate dividend-received deduction. The dividends were
derived from interest on municipal bonds and are not subject to federal income
taxes. To the extent a shareholder is subject to any state or local tax laws,
some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
56 | OPPENHEIMER AMT-FREE MUNICIPALS
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file new Form N-PX, with its complete proxy voting record for the 12 months
ended June 30th, no later than August 31st of each year. The Fund's Form N-PX
filing is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.525.7048, and (ii) on the SEC's website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied and the SEC's Public
Reference Room in Washington D.C and information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
57 | OPPENHEIMER AMT-FREE 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 Fund's
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 managers 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 were 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 was aware that there are alternatives
to retaining the Manager.
PORTFOLIO MANAGEMENT SERVICES AND PERFORMANCE. In its evaluation of the
quality of the portfolio management services to be provided, the Board
considered the experience of Ronald H. Fielding and the Manager's Rochester
Division investment team and analysts. A portfolio management team comprised of
Ronald H. Fielding and other investment professionals selected from the
Manager's Rochester Division manages the Fund. This portfolio management team is
primarily responsible for the day-to-day management of the Fund's portfolio. Mr.
Fielding has had over 27 years of experience managing municipal bond/tax-exempt
investments, is a Senior Vice President of the
58 | OPPENHEIMER AMT-FREE MUNICIPALS
Manager since January 1996 and is a Vice President of the Fund. Mr. Fielding
serves in a similar capacity for other Oppenheimer funds.
The Board also 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 general municipal debt 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 considered that the Fund's one-year, three-year, and
ten-year performance were better than its peer group average. However its
five-year performance was below 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 general municipal debt funds and other funds with comparable asset
levels and distribution features. The Board considered that the Fund's
contractual management fees and total expenses are lower than its peer group
average. However the Fund's actual management fees are higher than its peer
group average. In addition, the Board evaluated the comparability of the fees
charged and the 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 that was provided regarding the direct
and indirect 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 considered that the Fund has not experienced any
recent 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 and the
59 | OPPENHEIMER AMT-FREE MUNICIPALS
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
independent Trustees. Fund counsel is independent of the Manager within the
meaning and intent of the Securities and Exchange Commission Rules.
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 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.
60 | OPPENHEIMER AMT-FREE MUNICIPALS
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD
FUND, LENGTH OF SERVICE, AGE BY TRUSTEE; NUMBER OF PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN BY TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL,
TRUSTEES CO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM OR UNTIL HIS OR HER
RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Director of American Commercial Lines (barge company) (since January 2005);
Chairman of the Board Attorney at Hogan & Hartson (law firm) (since June 1993); Director of Danielson
of Trustees (since 2003); Holding Corp. (waste-to-energy company) (since 2002); Director of Weyerhaeuser
Trustee (since 1993) Corp. (1999-April 2004); Director of Caterpillar, Inc. (1993-December 2002);
Age: 74 Director of ConAgra Foods (1993-2001); Director of Texas Instruments (1993-2001);
Director of FMC Corporation (1993-2001). Oversees 24 portfolios in the OppenheimerFunds
complex.
MATTHEW P. FINK, Trustee of the Committee for Economic Development (policy research foundation) (since
Trustee (since 2005) 2005); Director of ICI Education Foundation (education) (since October 1991); President
Age: 64 of the Investment Company Institute (trade association) (1991-2004); Director of ICI
Mutual Insurance Company (insurance) (1991-2004). Oversees 24 portfolios in the
OppenheimerFunds complex.
ROBERT G. GALLI, A trustee or director of other Oppenheimer funds. Oversees 34 portfolios in the
Trustee (since 1993) OppenheimerFunds complex.
Age: 71
PHILLIP A. GRIFFITHS, Director of GSI Lumonics Inc. (precision medical equipment supplier) (since 2001);
Trustee (since 1999) Trustee of Woodward Academy (since 1983); Senior Advisor of The Andrew W. Mellon
Age: 66 Foundation (since 2001); Member of the National Academy of Sciences (since 1979);
Member of the American Philosophical Society (since 1996); Council on Foreign Relations
(since 2002); Director of the Institute for Advanced Study (1991-2004); Director of
Bankers Trust New York Corporation (1994-1999). Oversees 24 portfolios in the
OppenheimerFunds complex.
MARY F. MILLER, Trustee of the American Symphony Orchestra (not-for-profit) (since October 1998); and
Trustee (since 2004) Senior Vice President and General Auditor of American Express Company (financial
Age: 62 services company) (July 1998-February 2003). Oversees 24 portfolios in the
OppenheimerFunds complex.
JOEL W. MOTLEY, Director Columbia Equity Financial Corp. (privately-held financial adviser) (since
Trustee (since 2002) 2002); Managing Director of Carmona Motley, Inc. (privately-held financial adviser)
Age: 53 (since January 2002); Managing Director of Carmona Motley Hoffman Inc. (privately-held
financial adviser) (January 1998-December 2001). Oversees 24 portfolios in the
OppenheimerFunds complex.
KENNETH A. RANDALL, Director of Dominion Resources, Inc. (electric utility holding company) (since February
Trustee (since 1987) 1972); Former Director of Prime Retail, Inc. (real estate investment trust), Dominion
Age: 78 Energy Inc. (electric power and oil & gas producer), Lumbermens Mutual Casualty
Company, American Motorists Insurance Company and American Manufacturers Mutual
Insurance Company; Former President and Chief Executive Officer of The Conference
Board, Inc. (international economic and business research). Oversees 24 portfolios in
the OppenheimerFunds complex.
61 | OPPENHEIMER AMT-FREE MUNICIPALS
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
RUSSELL S. REYNOLDS, JR., Chairman of The Directorship Search Group, Inc. (corporate governance consulting and
Trustee (since 1989) executive recruiting) (since 1993); Life Trustee of International House (non-profit
Age: 73 educational organization); Former Trustee of The Historical Society of the Town of
Greenwich. Oversees 24 portfolios in the OppenheimerFunds complex.
JOSEPH M. WIKLER,* Director of the following medical device companies: Medintec (since 1992) and Cathco
Trustee (since 2005) (since 1996); Director of Lakes Environmental Association (since 1996); Member of the
Age: 64 Investment Committee of the Associated Jewish Charities of Baltimore (since 1994);
Director of Fortis/Hartford mutual funds (1994-December 2001). Oversees 39 portfolios
in the OppenheimerFunds complex.
PETER I. WOLD,* President of Wold Oil Properties, Inc. (oil and gas exploration and production company)
Trustee (since 2005) (since 1994); Vice President, Secretary and Treasurer of Wold Trona Company, Inc. (soda
Age: 57 ash processing and production) (since 1996); Vice President of Wold Talc Company, Inc.
(talc mining) (since 1999); Managing Member of Hole-in-the-Wall Ranch (cattle ranching)
(since 1979); Director and Chairman of the Denver Branch of the Federal Reserve Bank of
Kansas City (1993-1999); and Director of PacifiCorp. (electric utility) (1995-1999).
Oversees 39 portfolios in the OppenheimerFunds complex.
- ----------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH
AND OFFICER FLOOR, NEW YORK, NY 10281-1008. MR. MURPHY SERVES AS TRUSTEE FOR AN INDEFINITE TERM AND
AS AN OFFICER FOR AN ANNUAL TERM, OR UNTIL HIS RESIGNATION, DEATH OR REMOVAL.
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director (since June 2001) and President (since
President and Trustee, September 2000) of the Manager; President and Director or Trustee of other Oppenheimer
(2001-2004 and since 2005) funds; President and Director of Oppenheimer Acquisition Corp. ("OAC") (the Manager's
Age: 56 parent holding company) and of Oppenheimer Partnership Holdings, Inc. (holding company
subsidiary of the Manager) (since July 2001); Director of OppenheimerFunds Distributor,
Inc. (subsidiary of the Manager) (since November 2001); Chairman and Director of
Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer
agent subsidiaries of the Manager) (since July 2001); President and Director of
OppenheimerFunds Legacy Program (charitable trust program established by the Manager)
(since July 2001); Director of the following investment advisory subsidiaries of the
Manager: OFI Institutional Asset Management, Inc., Centennial Asset Management
Corporation, Trinity Investment Management Corporation and Tremont Capital Management,
Inc. (since November 2001), HarbourView Asset Management Corporation and OFI Private
Investments, Inc. (since July 2001); President (since November 1, 2001) and Director
(since July 2001) of Oppenheimer Real Asset Management, Inc.; Executive Vice President
of Massachusetts Mutual Life Insurance Company (OAC's parent company) (since February
1997); Director of DLB Acquisition Corporation (holding company parent of Babson
Capital Management LLC) (since June 1995); Member of the Investment Company Institute's
Board of Governors (since October 3, 2003); Chief Operating Officer of the Manager
(September 2000-June 2001); President and Trustee of MML Series Investment Fund and
MassMutual Select Funds (open-end investment companies) (November 1999-November 2001);
Director of C.M. Life Insurance Company (September 1999-August 2000); President, Chief
Executive Officer and Director of MML Bay State Life Insurance Company (September
1999-August 2000); Director of Emerald Isle Bancorp and Hibernia Savings Bank (wholly-
owned subsidiary of Emerald Isle Bancorp) (June 1989-June 1998). Oversees 67
*Elected as Trustee effective August 17, 2005.
62 | OPPENHEIMER AMT-FREE MUNICIPALS
JOHN V. MURPHY, portfolios as a trustee or director and 20 additional portfolios as officer in the
Continued OppenheimerFunds complex.
- ----------------------------------------------------------------------------------------------------------------------------
OFFICERS THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MR. ZACK, TWO
WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NY 10281-1008, FOR
MR. WIXTED AND MR. VANDEHEY, 6803 S. TUCSON WAY, CENTENNIAL, CO 80112-3924, AND FOR MR.
FIELDING, 350 LINDEN OAKS, ROCHESTER, NY 14625. EACH OFFICER SERVES FOR AN ANNUAL TERM
OR UNTIL HIS RESIGNATION, DEATH OR REMOVAL.
RONALD H. FIELDING, Senior Vice President of the Manager (since January 1996); Chairman of the Rochester
Vice President (since 2002) Division of the Manager (since January 1996). An officer of 10 portfolios in the
Age: 56 OppenheimerFunds complex.
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999); Treasurer of the
Treasurer and Principal following: HarbourView Asset Management Corporation, Shareholder Financial Services,
Financial and Accounting Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management Corporation, and
Officer (since 1999) Oppenheimer Partnership Holdings, Inc. (since March 1999), OFI Private Investments,
Age: 45 Inc. (since March 2000), OppenheimerFunds International Ltd. (since May 2000),
OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management, Inc. (since
November 2000), and OppenheimerFunds Legacy Program (charitable trust program
established by the Manager) (since June 2003); Treasurer and Chief Financial Officer of OFI
Trust Company (trust company subsidiary of the Manager) (since May 2000); Assistant
Treasurer of the following: OAC (since March 1999), Centennial Asset Management
Corporation (March 1999-October 2003) and OppenheimerFunds Legacy Program (April
2000-June 2003); Principal and Chief Operating Officer of Bankers Trust Company-Mutual
Fund Services Division (March 1995-March 1999). An officer of 87 portfolios in the
OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since March 2002) of
Secretary (since 2001) the Manager; General Counsel and Director of the Distributor (since December 2001);
Age: 56 General Counsel of Centennial Asset Management Corporation (since December 2001);
Senior Vice President and General Counsel of HarbourView Asset Management Corporation
(since December 2001); Secretary and General Counsel of OAC (since November 2001);
Assistant Secretary (since September 1997) and Director (since November 2001) of
OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President and
Director of Oppenheimer Partnership Holdings, Inc. (since December 2002); Director of
Oppenheimer Real Asset Management, Inc. (since November 2001); Senior Vice President,
General Counsel and Director of Shareholder Financial Services, Inc. and Shareholder
Services, Inc. (since December 2001); Senior Vice President, General Counsel and
Director of OFI Private Investments, Inc. and OFI Trust Company (since November 2001);
Vice President of OppenheimerFunds Legacy Program (since June 2003); Senior Vice
President and General Counsel of OFI Institutional Asset Management, Inc. (since
November 2001); Director of OppenheimerFunds (Asia) Limited (since December 2003);
Senior Vice President (May 1985-December 2003), Acting General Counsel (November
2001-February 2002) and Associate General Counsel (May 1981-October 2001) of the
Manager; Assistant Secretary of the following: Shareholder Services, Inc. (May
1985-November 2001), Shareholder Financial Services, Inc. (November 1989-November
2001), and OppenheimerFunds International Ltd. (September 1997-November 2001). An
officer of 87 portfolios in the OppenheimerFunds complex.
63 | OPPENHEIMER AMT-FREE MUNICIPALS
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager (since March 2004);
Vice President and Vice President of OppenheimerFunds Distributor, Inc., Centennial Asset Management
Chief Compliance Officer Corporation and Shareholder Services, Inc. (since June 1983). Former Vice President and
(since 2004) Director of Internal Audit of the Manager (1997-February 2004). An officer of 87
Age: 54 portfolios in the OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST.
64 | OPPENHEIMER AMT-FREE MUNICIPALS
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the registrant has determined that the registrant does
not have an audit committee financial expert serving on its Audit Committee. In
this regard, no member of the Audit Committee was identified as having all of
the technical attributes identified in Instruction 2(b) to Item 3 of Form N-CSR
to qualify as an "audit committee financial expert," whether through the type of
specialized education or experience described in that Instruction. The Board
has concluded that while the members of the Audit Committee collectively have
the necessary attributes and experience required to serve effectively as an
Audit Committee, no single member possesses all of the required technical
attributes through the particular methods of education or experience set forth
in the Instructions to be designated as an audit committee financial expert.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $25,000 in fiscal 2005 and $20,000 in fiscal 2004.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $142,059 in fiscal 2005 and $29,500 in fiscal 2004 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: internal control reviews.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees to the registrant during the last two fiscal
years.
The principal accountant for the audit of the registrant's annual financial
statements billed $5,000 in fiscal 2005 and $6,000 in fiscal 2004 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: Preparation of Forms 5500, and tax consultations on
foreign withholding taxes and certain investment transactions.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees to the registrant during the last two fiscal
years.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years to the
registrant's investment adviser or any entity
controlling, controlled by, or under common control with the adviser that
provides ongoing services to the registrant.
(e) (1) During its regularly scheduled periodic meetings, the registrant's
audit committee will pre-approve all audit, audit-related, tax and other
services to be provided by the principal accountants of the registrant.
The audit committee has delegated pre-approval authority to its Chairman
for any subsequent new engagements that arise between regularly scheduled
meeting dates provided that any fees such pre-approved are presented to
the audit committee at its next regularly scheduled meeting.
Under applicable laws, pre-approval of non-audit services maybe waived
provided that: 1) the aggregate amount of all such services provided
constitutes no more than five percent of the total amount of fees paid by
the registrant to it principal accountant during the fiscal year in which
services are provided 2) such services were not recognized by the
registrant at the time of engagement as non-audit services and 3) such
services are promptly brought to the attention of the audit committee of
the registrant and approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $147,059 in fiscal 2005 and $35,500 in fiscal
2004 to the registrant and the registrant's investment adviser or any
entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant related to
non-audit fees. Those billings did not include any prohibited non-audit
services as defined by the Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of trustees has considered
whether the provision of non-audit services that were rendered to the
registrant's investment adviser, and any entity controlling, controlled
by, or under common control with the investment adviser that provides
ongoing services to the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES 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.
THE FUNDS' GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Funds' Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have the
authority, upon approval of the Board, to retain an executive search firm to
assist in this effort. The Committee may consider recommendations by business
and personal contacts of current Board members and by executive search firms
which the Committee may engage from time to time and may also consider
shareholder recommendations. The Committee may consider the advice and
recommendation of the Funds' investment manager and its affiliates in making the
selection.
2. The Committee shall screen candidates for Board membership. The Committee has
not established specific qualifications that it believes must be met by a
trustee nominee. In evaluating trustee nominees, the Committee considers, among
other things, an individual's background, skills, and experience; whether the
individual is an "interested person" as defined in the Investment Company Act of
1940; and whether the individual would be deemed an "audit committee financial
expert" within the meaning of applicable SEC rules. The Committee also considers
whether the individual's background, skills, and experience will complement the
background, skills, and experience of other nominees and will contribute to the
Board. There are no differences in the manner in which the Committee evaluates
nominees for trustees based on whether the nominee is recommended by a
shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board. The
Committee shall have the
sole discretion to determine the candidates to present to the Board and, in such
cases where required, to shareholders. Recommendations for trustee nominees
should, at a minimum, be accompanied by the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person"
as defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in
a proxy statement concerning the person if he or she was nominated;
and
o the name and address of the person submitting the recommendation
and, if that person is a shareholder, the period for which that
person held Fund shares.
The recommendation also can include any additional information which the person
submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the Funds'
investment adviser) would be deemed an "interested person" under the Investment
Company Act of 1940. In addition, certain other relationships with Massachusetts
Mutual Life Insurance Company or its subsidiaries, with registered
broker-dealers, or with the Funds' outside legal counsel may cause a person to
be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual in
person. In addition, the individual customarily is asked to complete a detailed
questionnaire which is designed to elicit information which must be disclosed
under SEC and stock exchange rules and to determine whether the individual is
subject to any statutory disqualification from serving as a trustee of a
registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the 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 July 31, 2005, the registrant's principal executive officer
and principal financial officer found the registrant's disclosure controls and
procedures to provide reasonable assurances that information required to be
disclosed by the 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.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Exhibit attached hereto.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Not applicable.
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 Municipals
By: /s/ John V. Murphy
------------------
John V. Murphy
Principal Executive Officer
Date: September 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: September 13, 2005
By: /s/ Brian W. Wixted
-------------------
Brian W. Wixted
Principal Financial Officer
Date: September 13, 2005