UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-4054
OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
ROBERT G. ZACK, ESQ.
OPPENHEIMERFUNDS, INC.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: September 30
Date of reporting period: September 30, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN INDUSTRIES
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Tobacco Settlement Payments 26.7%
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Higher Education 12.0
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Highways/Railways 11.5
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Not-for-Profit Organization 9.6
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General Obligation 5.6
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Water Utilities 4.7
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Electric Utilities 4.5
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Adult Living Facilities 4.4
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Education 4.1
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Hospital/Health Care 3.7
Portfolio holdings and allocations are subject to change. Percentages are as of
September 30, 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 11.5%
AA 20.2
A 10.7
BBB 39.6
BB 5.1
B 1.5
C 1.7
Not Rated 9.7
Portfolio holdings and allocations are subject to change. Percentages are as of
September 30, 2005, and are dollar-weighted based on total 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 compar- able,
in the Manager's judgment, to securities rated by a rating agency in the same
category.
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10 | OPPENHEIMER AMT-FREE NEW YORK 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 SEPTEMBER 30, 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 combined
with share-price appreciation to produce superior performance during this report
period. The Fund's Class A shares generated total return of 9.41% (without sales
charge) and 4.21% (with sales charge) for the 1-year period ended September 30,
2005. This performance compared extremely well with its competitors and with
other fixed-income investments, including those that distribute income subject
to the federal Alternative Minimum Tax ("AMT"). By comparison, the Lehman
Brothers Municipal Bond Index produced a total return of 4.60%. Tax-free,
AMT-free income made up over 50% of the Fund's total return during this report
period.
Price appreciation of the Fund's long-maturity bonds, and in particular in
tobacco Master Settlement Agreement ("MSA") bonds, accounted for much of this
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.
Across the municipal bond market, the difference between yields on
lower-rated and higher-rated municipals securities decreased, as the market
prices of lower-rated municipal bonds rose more than high-grade bond prices.
These market yield movements caused a slight reduction in the Fund's monthly
dividend during this period. In July, 2005, the monthly dividend for Class A
shares was reduced from $0.058 to $0.056, and dividends for other share classes
were adjusted accordingly. This reduction was not related to the Fund's net
asset value, which reflected an overall increase in the combined value of Fund
holdings. Importantly, the Fund's holdings have continued to make scheduled
payments during this report period.
Increasing prices of the Fund's lower-rated holdings has been a
significant driver of the Fund's total return. 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 funds 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.
11 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND PERFORMANCE DISCUSSION
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At the end of this report period, the Fund's holdings in airline sector
bonds represented 1.7% of the Fund's total investments as of September 30, 2005.
Bonds issued to finance airport facilities and backed by lease payments from
Delta Airlines comprised 1.69% of the Fund's assets as of the same date. The
prices of these bonds actually rose during this report period, despite Delta
Airlines' Chapter 11 bankruptcy filing near the end of the period. These
holdings amount to only a small portion of the Fund's investments, and did not
materially affect either the Fund's performance or dividends. The Fund continues
to hold these bonds because we believe there is a strong likelihood that the
interest and principal due will ultimately be paid, although a short-term
interruption of interest payments is possible. In addition, these bonds are
secured with valuable "re-let" provisions by which the financed airport facility
may be subsequently leased to a successor airline. We continue to closely
monitor developments associated with these bonds, and look forward to reporting
on further developments in future reports.
We often find value in the Nonprofit Organization sector of the municipal
market, where not-for-profit organizations can borrow at tax-free rates. Bonds
issued in this sector frequently pay interest that also is free from the AMT. As
a whole, the Fund's investments in non-profit organizations have made positive
contributions to the Fund's total return. However one relatively small
position--an obligation of the New York Legal Aid Society--detracted from the
Fund's performance during this report period. This holding amounted to only
0.99% of the Fund's investments at the beginning of this report period. This
position was sold at a loss in December, 2004, causing only a minor impact on
the Fund's overall performance and demonstrating the benefit of broad portfolio
diversification.
The Fund's position in municipal inverse-floating rate securities
contributed to performance. These are tax-exempt securities whose interest
payments move inversely to short-term interest rates. We have sought to offset
interest-rate sensitivity of these bonds by also investing in premium-coupon,
callable bonds whose market prices tend to exhibit less interest-rate
sensitivity.
As of September 30, 2005, tobacco bonds backed by the national Master
Settlement Agreement ("MSA") accounted for 26.7% of investments. MSA bond prices
have increased significantly during this report period. During this period,
various counties in New York State pre-refunded their MSA-backed bonds. 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. The market reacted
favorably to the issuance of new MSA bonds, and
12 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
prices of MSA-backed bonds rose on increasing expectations of additional
pre-refunding transactions.
Positive news on tobacco litigation also 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 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 U.S. Government filed a petition for seeking further review
of this decision by the United States Supreme Court. During final arguments, 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.
Notwithstanding July's dividend reduction, we believe that the Fund's
shareholders will continue to benefit from highly competitive yields despite
current market conditions.
OppenheimerFunds offers two other New York State municipal bond fund
choices that investors may use in combination with Oppenheimer AMT-Free New York
Municipals. Oppenheimer Limited Term New York 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 tax-free income may consider Rochester Fund
Municipals, a longer-term New York 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 New York 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 September 30, 2005. In the case of Class A, Class B, and Class C
shares, performance is measured over a ten-fiscal-year period. 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.
13 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND PERFORMANCE DISCUSSION
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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.
14 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free New York Municipals (Class A)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer
AMT-Free New York Lehman Brothers
Municipals (Class A) Municipal Bond Index
09/30/1995 9,525 10,000
12/31/1995 9,991 10,413
03/31/1996 9,873 10,288
06/30/1996 9,915 10,366
09/30/1996 10,159 10,604
12/31/1996 10,404 10,874
03/31/1997 10,381 10,848
06/30/1997 10,770 11,222
09/30/1997 11,051 11,560
12/31/1997 11,358 11,874
03/31/1998 11,484 12,010
06/30/1998 11,640 12,193
09/30/1998 11,975 12,567
12/31/1998 12,019 12,643
03/31/1999 12,135 12,755
06/30/1999 11,909 12,530
09/30/1999 11,692 12,480
12/31/1999 11,483 12,383
03/31/2000 11,820 12,745
06/30/2000 11,921 12,938
09/30/2000 12,251 13,250
12/31/2000 12,787 13,830
03/31/2001 13,086 14,137
06/30/2001 13,204 14,229
09/30/2001 13,448 14,628
12/31/2001 13,357 14,539
03/31/2002 13,403 14,676
06/30/2002 13,747 15,213
09/30/2002 14,269 15,935
12/31/2002 14,216 15,935
03/31/2003 14,131 16,127
06/30/2003 14,513 16,543
09/30/2003 14,565 16,556
12/31/2003 15,205 16,782
03/31/2004 15,535 17,072
06/30/2004 14,884 16,668
09/30/2004 15,571 17,317
12/31/2004 15,871 17,534
03/31/2005 16,263 17,527
06/30/2005 16,952 18,041
09/30/2005 17,035 18,019
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
9/30/05
1-Year 4.21% 5-Year 5.78% 10-Year 5.47%
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 18 FOR FURTHER INFORMATION.
15 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND PERFORMANCE DISCUSSION
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CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free New York Municipals (Class B)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer
AMT-Free New York Lehman Brothers
Municipals (Class B) Municipal Bond Index
09/30/1995 10,000 10,000
12/31/1995 10,461 10,413
03/31/1996 10,318 10,288
06/30/1996 10,342 10,366
09/30/1996 10,577 10,604
12/31/1996 10,812 10,874
03/31/1997 10,768 10,848
06/30/1997 11,151 11,222
09/30/1997 11,420 11,560
12/31/1997 11,715 11,874
03/31/1998 11,832 12,010
06/30/1998 11,970 12,193
09/30/1998 12,291 12,567
12/31/1998 12,312 12,643
03/31/1999 12,397 12,755
06/30/1999 12,143 12,530
09/30/1999 11,909 12,480
12/31/1999 11,663 12,383
03/31/2000 11,982 12,745
06/30/2000 12,062 12,938
09/30/2000 12,382 13,250
12/31/2000 12,889 13,830
03/31/2001 13,165 14,137
06/30/2001 13,269 14,229
09/30/2001 13,485 14,628
12/31/2001 13,394 14,539
03/31/2002 13,441 14,676
06/30/2002 13,786 15,213
09/30/2002 14,309 15,935
12/31/2002 14,256 15,935
03/31/2003 14,170 16,127
06/30/2003 14,554 16,543
09/30/2003 14,605 16,556
12/31/2003 15,248 16,782
03/31/2004 15,578 17,072
06/30/2004 14,925 16,668
09/30/2004 15,614 17,317
12/31/2004 15,915 17,534
03/31/2005 16,309 17,527
06/30/2005 17,000 18,041
09/30/2005 17,083 18,019
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
9/30/05
1-Year 3.55% 5-Year 5.66% 10-Year 5.50%
16 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer AMT-Free New York Municipals (Class C)
Lehman Brothers Municipal Bond Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer
AMT-Free New York Lehman Brothers
Municipals (Class C) Municipal Bond Index
09/30/1995 10,000 10,000
12/31/1995 10,461 10,413
03/31/1996 10,311 10,288
06/30/1996 10,332 10,366
09/30/1996 10,564 10,604
12/31/1996 10,797 10,874
03/31/1997 10,753 10,848
06/30/1997 11,135 11,222
09/30/1997 11,403 11,560
12/31/1997 11,698 11,874
03/31/1998 11,806 12,010
06/30/1998 11,952 12,193
09/30/1998 12,264 12,567
12/31/1998 12,285 12,643
03/31/1999 12,369 12,755
06/30/1999 12,126 12,530
09/30/1999 11,882 12,480
12/31/1999 11,647 12,383
03/31/2000 11,965 12,745
06/30/2000 12,045 12,938
09/30/2000 12,354 13,250
12/31/2000 12,871 13,830
03/31/2001 13,146 14,137
06/30/2001 13,250 14,229
09/30/2001 13,469 14,628
12/31/2001 13,341 14,539
03/31/2002 13,363 14,676
06/30/2002 13,680 15,213
09/30/2002 14,171 15,935
12/31/2002 14,091 15,935
03/31/2003 13,979 16,127
06/30/2003 14,340 16,543
09/30/2003 14,363 16,556
12/31/2003 14,953 16,782
03/31/2004 15,248 17,072
06/30/2004 14,580 16,668
09/30/2004 15,223 17,317
12/31/2004 15,487 17,534
03/31/2005 15,839 17,527
06/30/2005 16,491 18,041
09/30/2005 16,526 18,019
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
9/30/05
1-Year 7.55% 5-Year 5.99% 10-Year 5.15%
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 18 FOR FURTHER INFORMATION.
17 | OPPENHEIMER AMT-FREE NEW YORK 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 were first publicly offered on 8/16/84. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 4.75%,
except where noted.
CLASS B shares of the Fund were first publicly offered on 3/1/93. Unless
otherwise noted, Class B returns include 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. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% 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.
18 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended September 30, 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
19 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FUND EXPENSES
- --------------------------------------------------------------------------------
the Statement of Additional Information). Therefore, the "hypothetical" lines of
the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(4/1/05) (9/30/05) SEPTEMBER 30, 2005
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,047.50 $4.84
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,020.36 4.77
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,043.40 8.85
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,016.44 8.73
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,043.40 8.74
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,016.55 8.63
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 183/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended September 30, 2005 are as follows:
CLASS EXPENSE RATIOS
- ----------------------------------
Class A 0.94%
- ----------------------------------
Class B 1.72
- ----------------------------------
Class C 1.70
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20 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS September 30, 2005
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES--101.7%
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK--93.3%
$14,500,000 Albany IDA (Charitable Leadership) 1 5.750% 07/01/2026 $ 15,034,905
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Albany IDA (Charitable Leadership) 6.000 07/01/2019 1,074,190
- ---------------------------------------------------------------------------------------------------------------------------
100,000 Albany IDA (New Covenant Charter School) 7.000 05/01/2025 97,857
- ---------------------------------------------------------------------------------------------------------------------------
1,140,000 Albany IDA (Sage Colleges) 5.250 04/01/2019 1,166,482
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Albany IDA (Sage Colleges) 5.300 04/01/2029 511,260
- ---------------------------------------------------------------------------------------------------------------------------
30,000 Albany Parking Authority 5.625 07/15/2025 31,957
- ---------------------------------------------------------------------------------------------------------------------------
30,000 Allegany County IDA (Houghton College) 5.250 01/15/2024 30,684
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Amherst IDA (Daemen College) 6.000 10/01/2021 1,057,520
- ---------------------------------------------------------------------------------------------------------------------------
5,895,000 Brookhaven IDA (Alternatives for Children) 1 7.550 02/01/2033 6,265,913
- ---------------------------------------------------------------------------------------------------------------------------
9,235,000 Brookhaven IDA (Dowling College) 1 6.750 11/01/2032 9,677,818
- ---------------------------------------------------------------------------------------------------------------------------
350,000 Broome County IDA (University Plaza) 5.200 08/01/2030 360,038
- ---------------------------------------------------------------------------------------------------------------------------
250,000 Broome County IDA (University Plaza) 5.200 08/01/2036 256,283
- ---------------------------------------------------------------------------------------------------------------------------
750,000 Buffalo Municipal Water Finance Authority, Series B 5.000 07/01/2027 818,745
- ---------------------------------------------------------------------------------------------------------------------------
300,000 Bushnell Basin Fire Assoc. (Volunteer Fire Department) 5.750 11/01/2030 301,242
- ---------------------------------------------------------------------------------------------------------------------------
85,000 Cattaraugus County IDA (Olean General Hospital) 5.250 08/01/2023 88,055
- ---------------------------------------------------------------------------------------------------------------------------
70,000 East Rochester Hsg. Authority (St. John's Meadows) 5.750 08/01/2037 74,480
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Erie County IDA (Charter School Applied Tech) 6.875 06/01/2035 481,610
- ---------------------------------------------------------------------------------------------------------------------------
1,095,000 Erie County IDA (DePaul Properties) 5.750 09/01/2028 868,269
- ---------------------------------------------------------------------------------------------------------------------------
190,000 Erie County IDA (DePaul Properties) 6.500 09/01/2018 179,453
- ---------------------------------------------------------------------------------------------------------------------------
5,600,000 Erie County IDA (Medaille College) 1 7.625 04/01/2035 5,804,568
- ---------------------------------------------------------------------------------------------------------------------------
9,050,000 Erie County IDA (The Episcopal Church Home) 1 5.875 02/01/2018 9,380,959
- ---------------------------------------------------------------------------------------------------------------------------
9,875,000 Erie County IDA (The Episcopal Church Home) 1 6.000 02/01/2028 10,251,040
- ---------------------------------------------------------------------------------------------------------------------------
13,000,000 Erie County Tobacco Asset Securitization Corp. 5.000 06/01/2045 12,681,500
- ---------------------------------------------------------------------------------------------------------------------------
8,000,000 Erie County Tobacco Asset Securitization Corp. 5.790 2 06/01/2047 671,600
- ---------------------------------------------------------------------------------------------------------------------------
150,000 Erie County Tobacco Asset Securitization Corp. 6.125 07/15/2030 170,006
- ---------------------------------------------------------------------------------------------------------------------------
6,100,000 Erie County Tobacco Asset Securitization Corp. 1 6.250 07/15/2040 6,947,107
- ---------------------------------------------------------------------------------------------------------------------------
30,000,000 Erie County Tobacco Asset Securitization Corp. 6.380 2 06/01/2050 1,734,000
- ---------------------------------------------------------------------------------------------------------------------------
5,500,000 Erie County Tobacco Asset Securitization Corp. 6.500 07/15/2032 6,324,230
- ---------------------------------------------------------------------------------------------------------------------------
100,000 Essex County IDA
(North Country Community College Foundation) 5.000 06/01/2020 99,531
- ---------------------------------------------------------------------------------------------------------------------------
130,000 Essex County IDA
(North Country Community College Foundation) 5.200 06/01/2025 129,436
- ---------------------------------------------------------------------------------------------------------------------------
110,000 Essex County IDA
(North Country Community College Foundation) 5.300 06/01/2035 110,033
- ---------------------------------------------------------------------------------------------------------------------------
175,000 Franklin County IDA
(North Country Community College Foundation) 5.200 06/01/2025 174,241
- ---------------------------------------------------------------------------------------------------------------------------
3,750,000 Geneva IDA (Hobart & William Smith Colleges) 5.375 02/01/2033 3,992,625
- ---------------------------------------------------------------------------------------------------------------------------
5,435,000 Hempstead IDA
(Working Organization for Retarded Children) 6.900 08/01/2033 5,585,767
21 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 880,000 Herkimer County IDA (Folts Adult Home) 1 5.500% 03/20/2040 $ 961,858
- ---------------------------------------------------------------------------------------------------------------------------
1,790,000 Herkimer County IDA
(Herkimer County College Foundation) 6.250 08/01/2034 1,885,425
- ---------------------------------------------------------------------------------------------------------------------------
5,750,000 L.I. Power Authority RITES 3 11.024 4 09/01/2033 6,687,020
- ---------------------------------------------------------------------------------------------------------------------------
4,395,000 L.I. Power Authority, Series A 1 5.125 09/01/2029 4,553,528
- ---------------------------------------------------------------------------------------------------------------------------
30,000 L.I. Power Authority, Series A 5.250 12/01/2026 31,571
- ---------------------------------------------------------------------------------------------------------------------------
25,000 L.I. Power Authority, Series A 5.300 12/01/2019 26,545
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Lyons Community Health Initiatives Corp. 1 5.550 09/01/2024 1,059,880
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Monroe County IDA (Cloverwood Senior Living) 6.875 05/01/2033 811,110
- ---------------------------------------------------------------------------------------------------------------------------
1,925,000 Monroe County IDA (DePaul Community Facilities) 1 5.875 02/01/2028 1,626,991
- ---------------------------------------------------------------------------------------------------------------------------
100,000 Monroe County IDA (Rochester Institute of Technology) 5.250 04/01/2019 100,355
- ---------------------------------------------------------------------------------------------------------------------------
525,000 Monroe County IDA (Rochester Institute of Technology) 5.375 04/01/2029 518,107
- ---------------------------------------------------------------------------------------------------------------------------
460,000 Monroe County Tobacco Asset Securitization Corp. 6.375 06/01/2035 522,914
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 Monroe Newpower Corp. 5.500 01/01/2034 4,190,160
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Monroe Newpower Corp. 5.625 01/01/2026 1,055,620
- ---------------------------------------------------------------------------------------------------------------------------
18,000,000 MTA Service Contract, Series A 5.125 01/01/2029 18,937,620
- ---------------------------------------------------------------------------------------------------------------------------
13,785,000 MTA, Series A 5.125 11/15/2031 14,422,556
- ---------------------------------------------------------------------------------------------------------------------------
8,000,000 MTA, Series B 1 5.000 11/15/2031 8,324,640
- ---------------------------------------------------------------------------------------------------------------------------
610,000 Nassau County IDA (ALIA-ACDS) 6.125 09/01/2018 629,288
- ---------------------------------------------------------------------------------------------------------------------------
2,100,000 Nassau County IDA (ALIA-AP) 7.000 09/01/2028 2,178,918
- ---------------------------------------------------------------------------------------------------------------------------
855,000 Nassau County IDA (ALIA-CMA) 6.125 09/01/2018 882,035
- ---------------------------------------------------------------------------------------------------------------------------
945,000 Nassau County IDA (ALIA-CSMR) 6.125 09/01/2018 974,881
- ---------------------------------------------------------------------------------------------------------------------------
640,000 Nassau County IDA (ALIA-EFLI) 6.125 09/01/2018 660,237
- ---------------------------------------------------------------------------------------------------------------------------
485,000 Nassau County IDA (ALIA-HAII) 6.125 09/01/2018 500,336
- ---------------------------------------------------------------------------------------------------------------------------
565,000 Nassau County IDA (ALIA-NCMRS) 6.125 09/01/2018 582,865
- ---------------------------------------------------------------------------------------------------------------------------
2,755,000 Nassau County IDA (Hispanic Counseling Center) 7.625 06/01/2033 2,838,036
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 Niagara County IDA (American Ref-Fuel Company) 5.550 11/15/2024 2,648,200
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Niagara County Tobacco Asset Securitization Corp. 6.250 05/15/2034 531,915
- ---------------------------------------------------------------------------------------------------------------------------
285,000 Niagara County Tobacco Asset Securitization Corp. 6.250 05/15/2040 303,192
- ---------------------------------------------------------------------------------------------------------------------------
7,745,000 Niagara Falls CSD COP (High School Facility) 1 5.375 06/15/2028 8,278,398
- ---------------------------------------------------------------------------------------------------------------------------
3,665,000 NY Counties Tobacco Trust I (TASC) 6.500 06/01/2035 3,938,409
- ---------------------------------------------------------------------------------------------------------------------------
14,550,000 NY Counties Tobacco Trust II (TASC) 1 5.625 06/01/2035 15,113,522
- ---------------------------------------------------------------------------------------------------------------------------
20,000 NY Counties Tobacco Trust II (TASC) 5.750 06/01/2043 20,915
- ---------------------------------------------------------------------------------------------------------------------------
1,800,000 NY Counties Tobacco Trust III 6.000 06/01/2043 1,926,954
- ---------------------------------------------------------------------------------------------------------------------------
13,360,000 NY Counties Tobacco Trust IV 5.880 2 06/01/2050 958,847
- ---------------------------------------------------------------------------------------------------------------------------
25,000,000 NY Counties Tobacco Trust IV 6.380 2 06/01/2055 1,050,250
- ---------------------------------------------------------------------------------------------------------------------------
46,750,000 NY Counties Tobacco Trust IV 6.800 2 06/01/2060 1,187,450
- ---------------------------------------------------------------------------------------------------------------------------
3,500,000 NY Counties Tobacco Trust IV (TASC) 6.650 06/01/2041 2,690,275
- ---------------------------------------------------------------------------------------------------------------------------
3,500,000 NY Counties Tobacco Trust IV (TASC) 6.650 06/01/2041 789,845
- ---------------------------------------------------------------------------------------------------------------------------
35,000 NYC GO 5.000 08/01/2022 35,787
22 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 3,050,000 NYC GO 5.000% 03/01/2030 $ 3,159,983
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 NYC GO 1 5.000 11/01/2034 5,175,150
- ---------------------------------------------------------------------------------------------------------------------------
3,000,000 NYC GO 5.000 03/01/2035 3,108,180
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 NYC GO 5.000 04/01/2035 4,145,440
- ---------------------------------------------------------------------------------------------------------------------------
585,000 NYC GO 5.000 08/01/2035 606,826
- ---------------------------------------------------------------------------------------------------------------------------
1,270,000 NYC GO 5.250 03/15/2032 1,332,636
- ---------------------------------------------------------------------------------------------------------------------------
2,415,000 NYC GO 5.375 12/01/2026 2,558,910
- ---------------------------------------------------------------------------------------------------------------------------
1,300,000 NYC GO 5.500 06/01/2022 1,408,420
- ---------------------------------------------------------------------------------------------------------------------------
255,000 NYC GO 5.750 02/01/2020 260,811
- ---------------------------------------------------------------------------------------------------------------------------
75,000 NYC GO 5.875 08/01/2019 85,635
- ---------------------------------------------------------------------------------------------------------------------------
680,000 NYC GO 5.875 08/01/2019 760,954
- ---------------------------------------------------------------------------------------------------------------------------
6,790,000 NYC GO 6.125 08/01/2025 7,188,234
- ---------------------------------------------------------------------------------------------------------------------------
5,000 NYC GO 7.500 02/01/2019 5,017
- ---------------------------------------------------------------------------------------------------------------------------
1,494,916 NYC HDC (Keith Plaza) 1 6.500 02/15/2018 1,572,293
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 NYC HDC (Multifamily Hsg.) 4.650 11/01/2025 2,007,920
- ---------------------------------------------------------------------------------------------------------------------------
750,000 NYC HDC (Multifamily Hsg.) 4.750 11/01/2035 749,970
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC HDC (Multifamily Hsg.) 1 5.250 11/01/2030 1,044,190
- ---------------------------------------------------------------------------------------------------------------------------
1,545,000 NYC HDC (Multifamily Hsg.), Series E-1 1 4.950 11/01/2033 1,590,516
- ---------------------------------------------------------------------------------------------------------------------------
2,269,882 NYC HDC (Seaview Towers) 1 6.500 01/15/2018 2,387,371
- ---------------------------------------------------------------------------------------------------------------------------
100,000 NYC Health & Hospital Corp. 5.375 02/15/2026 103,787
- ---------------------------------------------------------------------------------------------------------------------------
1,945,000 NYC Health & Hospital Corp. 1 5.450 02/15/2026 2,026,943
- ---------------------------------------------------------------------------------------------------------------------------
1,535,000 NYC IDA (American Council of Learned Societies) 5.250 07/01/2027 1,621,881
- ---------------------------------------------------------------------------------------------------------------------------
2,760,000 NYC IDA (Beth Abraham Health Services) 1 6.500 02/15/2022 2,941,470
- ---------------------------------------------------------------------------------------------------------------------------
500,000 NYC IDA (Beth Abraham Health Services) 6.500 11/15/2027 531,840
- ---------------------------------------------------------------------------------------------------------------------------
2,100,000 NYC IDA (Beth Abraham Health Services) 1 6.500 11/15/2034 2,224,845
- ---------------------------------------------------------------------------------------------------------------------------
6,000,000 NYC IDA (Calhoun School) 1 6.625 12/01/2034 6,343,860
- ---------------------------------------------------------------------------------------------------------------------------
3,880,000 NYC IDA
(Community Resource Developmentally Disabled) 7.500 08/01/2026 3,988,756
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 NYC IDA (Eger Harbor House) 1 5.875 05/20/2044 1,110,160
- ---------------------------------------------------------------------------------------------------------------------------
725,000 NYC IDA (Family Support Systems) 7.500 11/01/2034 738,775
- ---------------------------------------------------------------------------------------------------------------------------
220,000 NYC IDA (Global Country World Peace) 7.250 11/01/2025 219,274
- ---------------------------------------------------------------------------------------------------------------------------
170,000 NYC IDA (Global Country World Peace) 7.250 11/01/2025 169,439
- ---------------------------------------------------------------------------------------------------------------------------
880,000 NYC IDA (Independent Living Assoc.) 6.200 07/01/2020 876,955
- ---------------------------------------------------------------------------------------------------------------------------
500,000 NYC IDA (Liberty-7 World Trade Center) 3,5 6.750 03/01/2015 543,640
- ---------------------------------------------------------------------------------------------------------------------------
3,000,000 NYC IDA (Liberty-IAC/Interactive Corp.) 5.000 09/01/2035 3,042,540
- ---------------------------------------------------------------------------------------------------------------------------
3,700,000 NYC IDA (Lycee Francais De New York) 5.375 06/01/2023 3,838,861
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 NYC IDA (Lycee Francais De New York) 6.800 06/01/2028 4,327,680
- ---------------------------------------------------------------------------------------------------------------------------
385,000 NYC IDA (Metropolitan College of New York) 5.750 03/01/2020 377,777
- ---------------------------------------------------------------------------------------------------------------------------
2,100,000 NYC IDA (Polytechnic University) 6.000 11/01/2020 2,094,708
- ---------------------------------------------------------------------------------------------------------------------------
4,080,000 NYC IDA (Polytechnic University) 6.125 11/01/2030 4,079,714
23 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 1,380,000 NYC IDA (PSCH) 6.375% 07/01/2033 $ 1,471,246
- ---------------------------------------------------------------------------------------------------------------------------
750,000 NYC IDA (Reece School) 7.500 12/01/2037 752,160
- ---------------------------------------------------------------------------------------------------------------------------
295,000 NYC IDA (Reece School) 7.500 12/01/2037 295,103
- ---------------------------------------------------------------------------------------------------------------------------
1,485,000 NYC IDA (Staten Island University Hospital) 1 6.450 07/01/2032 1,479,372
- ---------------------------------------------------------------------------------------------------------------------------
6,020,000 NYC IDA (The Child School) 1 7.550 06/01/2033 6,297,161
- ---------------------------------------------------------------------------------------------------------------------------
15,785,000 NYC IDA (Touro College) 1 6.350 06/01/2029 16,253,499
- ---------------------------------------------------------------------------------------------------------------------------
5,600,000 NYC IDA (Urban Resource Institute) 7.375 11/01/2033 5,921,160
- ---------------------------------------------------------------------------------------------------------------------------
5,600,000 NYC IDA (Vocational Instruction) 7.750 02/01/2033 5,527,760
- ---------------------------------------------------------------------------------------------------------------------------
4,245,000 NYC IDA (YMCA of Greater NY) 5.250 08/01/2021 4,409,579
- ---------------------------------------------------------------------------------------------------------------------------
3,015,000 NYC Municipal Water Finance Authority 5.000 06/15/2032 3,101,410
- ---------------------------------------------------------------------------------------------------------------------------
6,000,000 NYC Municipal Water Finance Authority 5.000 06/15/2039 6,247,380
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 NYC Municipal Water Finance Authority 5 5.000 06/15/2039 4,164,920
- ---------------------------------------------------------------------------------------------------------------------------
120,000 NYC Municipal Water Finance Authority 5.125 06/15/2030 124,404
- ---------------------------------------------------------------------------------------------------------------------------
20,000 NYC Municipal Water Finance Authority 5.250 06/15/2025 21,442
- ---------------------------------------------------------------------------------------------------------------------------
315,000 NYC Municipal Water Finance Authority 5.250 06/15/2029 327,313
- ---------------------------------------------------------------------------------------------------------------------------
8,000,000 NYC Municipal Water Finance Authority 1 5.500 06/15/2033 8,696,880
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 NYC Municipal Water Finance Authority ROLs 11.278 4 06/15/2039 5,928,900
- ---------------------------------------------------------------------------------------------------------------------------
5,750,000 NYS DA (Ithaca College) 5.250 07/01/2026 6,041,123
- ---------------------------------------------------------------------------------------------------------------------------
1,870,000 NYS DA (Lenox Hill Hospital Obligated Group) 1 5.500 07/01/2030 1,934,235
- ---------------------------------------------------------------------------------------------------------------------------
5,000 NYS DA (Mental Health) 5.375 02/15/2026 5,148
- ---------------------------------------------------------------------------------------------------------------------------
625,000 NYS DA (Montefiore Medical Center) 5.450 08/01/2029 671,500
- ---------------------------------------------------------------------------------------------------------------------------
600,000 NYS DA
(MSH/NYU Hospital Center/HJDOI Obligated Group) 5.500 07/01/2026 609,042
- ---------------------------------------------------------------------------------------------------------------------------
9,250,000 NYS DA
(MSH/NYU Hospital Center/HJDOI Obligated Group) 6.500 07/01/2025 9,780,210
- ---------------------------------------------------------------------------------------------------------------------------
680,000 NYS DA (Nursing Home) 4.900 02/15/2041 690,540
- ---------------------------------------------------------------------------------------------------------------------------
835,000 NYS DA (Nursing Home) 4.950 02/15/2045 852,610
- ---------------------------------------------------------------------------------------------------------------------------
70,000 NYS DA (Nyack Hospital) 6.250 07/01/2013 69,173
- ---------------------------------------------------------------------------------------------------------------------------
240,000 NYS DA (Providence Rest) 5.000 07/01/2035 242,902
- ---------------------------------------------------------------------------------------------------------------------------
300,000 NYS DA (Providence Rest) 5.125 07/01/2030 307,149
- ---------------------------------------------------------------------------------------------------------------------------
340,000 NYS DA (Providence Rest) 5.250 07/01/2025 353,257
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 NYS DA (School District Financing) 5.750 10/01/2030 5,604,350
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 NYS DA (SS Joachim & Anne Residence) 5.250 07/01/2027 4,146,800
- ---------------------------------------------------------------------------------------------------------------------------
40,000 NYS DA (St. Joseph's Hospital Health Center) 5.250 07/01/2018 42,177
- ---------------------------------------------------------------------------------------------------------------------------
45,000 NYS DA (St. Vincent's Hospital & Medical Center) 7.375 08/01/2011 45,840
- ---------------------------------------------------------------------------------------------------------------------------
13,090,000 NYS DA (State University Educational Facilities) 5.250 05/15/2015 14,418,897
- ---------------------------------------------------------------------------------------------------------------------------
2,510,000 NYS DA (State University Educational Facilities) 5.250 05/15/2021 2,780,653
- ---------------------------------------------------------------------------------------------------------------------------
1,015,000 NYS DA (Winthrop University Hospital) 5.500 07/01/2023 1,071,556
- ---------------------------------------------------------------------------------------------------------------------------
20,000 NYS EFC (Clean Water & Drinking Revolving Funds) 5.000 06/15/2027 20,757
- ---------------------------------------------------------------------------------------------------------------------------
85,000 NYS EFC (NYS Water Services) 6.600 09/15/2012 85,256
24 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 15,000 NYS EFC (NYS Water Services) 7.200% 03/15/2011 $ 15,164
- ---------------------------------------------------------------------------------------------------------------------------
5,395,000 NYS HFA RITES 1,3 9.231 4 11/01/2015 5,834,585
- ---------------------------------------------------------------------------------------------------------------------------
45,000 NYS Medcare (Hospital & Nursing Home) 5.400 08/15/2033 45,076
- ---------------------------------------------------------------------------------------------------------------------------
800,000 NYS Medcare (Hospital & Nursing Home) 1 6.300 08/15/2023 807,016
- ---------------------------------------------------------------------------------------------------------------------------
80,000 NYS Medcare (St. Luke's Hospital) 5.625 08/15/2018 81,492
- ---------------------------------------------------------------------------------------------------------------------------
3,830,000 NYS Municipal Water Finance Authority RITES 3 11.143 4 06/15/2039 4,541,537
- ---------------------------------------------------------------------------------------------------------------------------
7,000,000 NYS UDC (State Personal Income Tax) 1 5.000 03/15/2025 7,660,380
- ---------------------------------------------------------------------------------------------------------------------------
250,000 Oneida County IDA
(Mohawk Valley Handicapped Services) 5.300 03/15/2019 258,820
- ---------------------------------------------------------------------------------------------------------------------------
55,000 Onondaga County IDA (Salina Free Library) 5.500 12/01/2022 58,475
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Orange County IDA (Glen Arden) 5.625 01/01/2018 935,560
- ---------------------------------------------------------------------------------------------------------------------------
275,000 Orange County IDA (Glen Arden) 5.700 01/01/2028 245,138
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 Otsego County IDA (Hartwick College) 5.900 07/01/2022 1,428,600
- ---------------------------------------------------------------------------------------------------------------------------
12,740,000 Port Authority NY/NJ (Delta Air Lines) 1,6 6.950 06/01/2008 12,580,750
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Port Authority NY/NJ, 132nd Series 5.000 09/01/2038 522,890
- ---------------------------------------------------------------------------------------------------------------------------
25,000,000 Port Authority NY/NJ, 140th Series 5.000 12/01/2034 26,424,750
- ---------------------------------------------------------------------------------------------------------------------------
2,475,000 Rensselaer County Tobacco Asset Securitization Corp. 5.625 06/01/2035 2,570,857
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Rensselaer County Tobacco Asset Securitization Corp. 5.750 06/01/2043 2,091,520
- ---------------------------------------------------------------------------------------------------------------------------
1,060,000 Rockland County Tobacco Asset Securitization Corp. 5.625 08/15/2035 1,102,135
- ---------------------------------------------------------------------------------------------------------------------------
3,150,000 Rockland County Tobacco Asset Securitization Corp. 5.750 08/15/2043 3,297,924
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 Saratoga County IDA (Saratoga Hospital) 1 5.125 12/01/2033 2,610,025
- ---------------------------------------------------------------------------------------------------------------------------
9,730,000 SONYMA, Series 61 1 5.800 10/01/2016 10,088,259
- ---------------------------------------------------------------------------------------------------------------------------
250,000 SONYMA, Series 83 5.550 10/01/2027 258,610
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 Suffolk County IDA (ALIA-IGHL) 7.250 12/01/2033 4,219,800
- ---------------------------------------------------------------------------------------------------------------------------
150,000 Suffolk County IDA (Dowling College) 6.625 06/01/2024 150,899
- ---------------------------------------------------------------------------------------------------------------------------
1,500,000 Suffolk County IDA (Jefferson's Ferry) 1 7.200 11/01/2019 1,630,215
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Suffolk County IDA (L.I. Network Community Services) 7.550 02/01/2034 1,037,330
- ---------------------------------------------------------------------------------------------------------------------------
505,000 Suffolk County IDA (Pederson-Krag Center) 7.200 02/01/2035 504,611
- ---------------------------------------------------------------------------------------------------------------------------
520,000 Sullivan County IDA (Center for Discovery) 6.950 02/01/2035 521,576
- ---------------------------------------------------------------------------------------------------------------------------
100,000 Syracuse IDA (Crouse Irving Companies) 5.250 01/01/2017 103,159
- ---------------------------------------------------------------------------------------------------------------------------
25,000 Triborough Bridge & Tunnel Authority 5.000 01/01/2020 26,109
- ---------------------------------------------------------------------------------------------------------------------------
3,585,000 Triborough Bridge & Tunnel Authority RITES 3 10.967 4 11/15/2032 4,101,240
- ---------------------------------------------------------------------------------------------------------------------------
2,560,000 Triborough Bridge & Tunnel Authority RITES 3 10.974 4 11/15/2027 2,992,179
- ---------------------------------------------------------------------------------------------------------------------------
10,000,000 Triborough Bridge & Tunnel Authority RITES 1,3 10.974 4 11/15/2032 11,440,000
- ---------------------------------------------------------------------------------------------------------------------------
4,550,000 Triborough Bridge & Tunnel Authority RITES 1,3 11.466 4 11/15/2029 5,653,921
- ---------------------------------------------------------------------------------------------------------------------------
2,500,000 Triborough Bridge & Tunnel Authority RITES 3 12.033 4 11/15/2023 3,357,400
- ---------------------------------------------------------------------------------------------------------------------------
94,960,000 TSASC, Inc. (TFABs) 5.750 07/15/2032 99,931,156
- ---------------------------------------------------------------------------------------------------------------------------
1,205,000 TSASC, Inc. (TFABs) 6.250 07/15/2027 1,280,252
- ---------------------------------------------------------------------------------------------------------------------------
19,345,000 TSASC, Inc. (TFABs) 6.250 07/15/2034 20,518,661
- ---------------------------------------------------------------------------------------------------------------------------
820,000 TSASC, Inc. (TFABs) 6.375 07/15/2039 873,267
25 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$ 3,000,000 Utica IDA (Utica College Civic Facility) 5.750% 08/01/2028 $ 3,033,120
- ---------------------------------------------------------------------------------------------------------------------------
1,250,000 Utica IDA (Utica College Civic Facility) 6.750 12/01/2021 1,315,063
- ---------------------------------------------------------------------------------------------------------------------------
250,000 Westchester County IDA (Guiding Eyes for the Blind) 5.375 08/01/2024 258,705
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Westchester County IDA (Kendal on Hudson) 6.500 01/01/2034 535,070
- ---------------------------------------------------------------------------------------------------------------------------
1,895,000 Westchester County IDA (Rippowam-Cisqua School) 5.750 06/01/2029 1,945,919
- ---------------------------------------------------------------------------------------------------------------------------
320,000 Westchester County IDA (Schnurmacher Center) 6.500 11/01/2013 334,381
- ---------------------------------------------------------------------------------------------------------------------------
600,000 Westchester County IDA (Schnurmacher Center) 6.500 11/01/2033 651,672
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Yonkers GO 5.000 08/01/2030 525,960
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Yonkers GO 5.000 08/01/2035 523,920
- ---------------------------------------------------------------------------------------------------------------------------
1,100,000 Yonkers IDA (St. Joseph's Hospital) 1 5.900 03/01/2008 1,071,334
--------------
670,010,566
- ---------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--8.4%
8,510,000 Guam GO, Series A 5.400 11/15/2018 8,529,573
- ---------------------------------------------------------------------------------------------------------------------------
1,085,000 Guam GO, Series A 6.000 09/01/2006 1,095,069
- ---------------------------------------------------------------------------------------------------------------------------
5,250,000 Guam Power Authority, Series A 1 5.125 10/01/2029 5,582,168
- ---------------------------------------------------------------------------------------------------------------------------
10,000,000 Guam Power Authority, Series A 5.250 10/01/2034 10,627,000
- ---------------------------------------------------------------------------------------------------------------------------
5,275,000 Puerto Rico Children's Trust Fund (TASC) 1 5.625 05/15/2043 5,535,954
- ---------------------------------------------------------------------------------------------------------------------------
30,000 Puerto Rico Highway & Transportation Authority, Series A 5.000 07/01/2038 30,531
- ---------------------------------------------------------------------------------------------------------------------------
3,720,000 Puerto Rico Highway & Transportation Authority, Series D 5.250 07/01/2038 4,102,416
- ---------------------------------------------------------------------------------------------------------------------------
6,000,000 Puerto Rico Highway & Transportation Authority, Series G 1 5.000 07/01/2042 6,134,940
- ---------------------------------------------------------------------------------------------------------------------------
4,500,000 Puerto Rico Highway & Transportation Authority, Series K 5 5.000 07/01/2045 4,622,040
- ---------------------------------------------------------------------------------------------------------------------------
3,850,000 Puerto Rico Infrastructure 1 5.000 07/01/2041 3,954,412
- ---------------------------------------------------------------------------------------------------------------------------
4,305,000 Puerto Rico ITEMECF
(Polytechnic University of Puerto Rico) 5.000 08/01/2022 4,364,409
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 Puerto Rico Public Finance Corp., Series E 1 5.500 08/01/2029 1,068,160
- ---------------------------------------------------------------------------------------------------------------------------
1,000,000 University of V.I., Series A 5.375 06/01/2034 1,049,900
- ---------------------------------------------------------------------------------------------------------------------------
1,700,000 V.I. Public Finance Authority (Gross Receipts Taxes Loan) 1 5.000 10/01/2031 1,752,819
- ---------------------------------------------------------------------------------------------------------------------------
1,485,000 V.I. Public Finance Authority, Series A 1 5.500 10/01/2022 1,551,342
- ---------------------------------------------------------------------------------------------------------------------------
250,000 V.I. Water & Power Authority 5.300 07/01/2018 255,720
--------------
60,256,453
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $685,785,644)--101.7% 730,267,019
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(1.7) (12,492,977)
--------------
NET ASSETS--100.0% $ 717,774,042
==============
26 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Security has been segregated for collateral to cover borrowings. See Note 6
of Notes to Financial Statements.
2. Zero coupon bond reflects effective yield on the date of purchase.
3. Illiquid security. The aggregate value of illiquid securities as of September
30, 2005 was $45,151,522, which represents 6.29% of the Fund's net assets. See
Note 5 of Notes to Financial Statements.
4. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.
5. When-issued security or forward commitment to be delivered and settled after
September 30, 2005. See Note 1 of Notes to Financial Statements.
6. Issue is in default. Non-income producing. See Note 1 of Notes to Financial
Statements.
- --------------------------------------------------------------------------------
SUMMARY OF RATINGS September 30, 2005 (Unaudited)
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY RATINGS CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
RATINGS PERCENT
- --------------------------------------------------------------------------------
AAA 11.5%
AA 20.2
A 10.7
BBB 39.6
BB 5.1
B 1.5
C 1.7
Not Rated 9.7
------
Total 100.0%
======
Bonds rated by any nationally recognized statistical rating organization are
included in the equivalent Standard & Poor's rating category. As a general
matter, unrated bonds may be backed by mortgage liens or equipment liens on the
underlying property, and also may be guaranteed. Bonds which are backed by a
letter of credit or by other financial institutions or agencies may be assigned
an investment-grade rating by the Manager, which reflects the quality of the
guarantor, institution or agency. Unrated bonds may also be assigned a rating
when the issuer has rated bonds outstanding with comparable credit
characteristics, or when, in the opinion of the Manager, the bond itself
possesses credit characteristics which allow for rating. The unrated bonds in
the portfolio are predominantly smaller issuers which have not applied for a
bond rating. Only those unrated bonds which subsequent to purchase have not been
designated investment grade by the Manager are included in the "Not Rated"
category.
27 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
To simplify the listings of securities, abbreviations are used per the table
below:
ACDS Association for Children with Down ITEMECF Industrial, Tourist, Educational, Medical and
Syndrome Environmental Community Facilities
ALIA Alliance of Long Island Agencies L.I. Long Island
AP Advantage Planning, Inc. MSH/NYU Mount Sinai Hospital/New York University
CMA Community Mainstreaming Associates, Inc. MTA Metropolitan Transportation Authority
COP Certificates of Participation NCMRS Nassau Community Mental Retardation
CSD Central School District Services Co.
CSMR Community Services for the Mentally NY/NJ New York/New Jersey
Retarded NYC New York City
DA Dormitory Authority NYS New York State
EFC Environmental Facilities Corp. PSCH Professional Service Centers for the
EFLI Epilepsy Foundation of L.I., Inc. Handicapped, Inc.
GO General Obligation RITES Residual Interest Tax Exempt Security
HAII Homes Anew II, Inc. ROLs Residual Option Longs
HDC Housing Development Corp. SONYMA State of New York Mortgage Agency
HFA Housing Finance Agency/Authority TASC Tobacco Settlement Asset-Backed Bonds
HJDOI Hospital for Joint Diseases Orthopedic TFABs Tobacco Flexible Amortization Bonds
Institute UDC Urban Development Corp.
IDA Industrial Development Agency V.I. United States Virgin Islands
IGHL Independent Group Home for Living YMCA Young Men's Christian Association
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY MARKET VALUE PERCENT
- --------------------------------------------------------------------------------
Tobacco Settlement Payments $194,764,657 26.7%
Higher Education 87,409,568 12.0
Highways/Railways 84,145,592 11.5
Not-for-Profit Organization 70,240,333 9.6
General Obligation 40,564,980 5.6
Water Utilities 34,094,108 4.7
Electric Utilities 33,009,332 4.5
Adult Living Facilities 32,161,960 4.4
Education 29,984,561 4.1
Hospital/Health Care 27,113,336 3.7
Marine/Aviation Facilities 26,947,640 3.7
Multifamily Housing 16,371,485 2.2
Airlines 12,580,750 1.7
Sales Tax Revenue 12,032,701 1.7
Single Family Housing 10,346,869 1.4
Municipal Leases 8,822,038 1.2
Special Tax 3,954,412 0.5
Hotels, Restaurants & Leisure 3,042,540 0.4
Resource Recovery 2,648,200 0.4
Parking Fee Revenue 31,957 0.0
---------------------------
Total $730,267,019 100.0%
===========================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF ASSETS AND LIABILITIES September 30, 2005
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------------------------------
Investments, at value (cost $685,785,644)--see accompanying statement of investments $ 730,267,019
- --------------------------------------------------------------------------------------------------------
Cash 546,908
- --------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 10,662,913
Shares of beneficial interest sold 3,513,116
Other 22,998
--------------
Total assets 745,012,954
- --------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Payable on borrowings (See Note 6) 16,000,000
Investments purchased on a when-issued or forward commitment basis 9,276,905
Shares of beneficial interest redeemed 948,276
Distribution and service plan fees 400,925
Dividends 328,024
Trustees' compensation 124,903
Interest expense 49,647
Transfer and shareholder servicing agent fees 28,631
Shareholder communications 24,947
Other 56,654
--------------
Total liabilities 27,238,912
- --------------------------------------------------------------------------------------------------------
NET ASSETS $ 717,774,042
=============
- --------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 55,600
- --------------------------------------------------------------------------------------------------------
Additional paid-in capital 685,261,359
- --------------------------------------------------------------------------------------------------------
Accumulated net investment income 1,078,657
- --------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (13,102,949)
- --------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 44,481,375
--------------
NET ASSETS $ 717,774,042
==============
29 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $659,975,067 and
51,123,800 shares of beneficial interest outstanding) $12.91
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $13.55
- -----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $26,680,299 and 2,065,983 shares
of beneficial interest outstanding) $12.91
- -----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $31,118,676 and 2,409,996 shares
of beneficial interest outstanding) $12.91
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENT OF OPERATIONS For the Year Ended September 30, 2005
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $ 38,253,559
- --------------------------------------------------------------------------------
Other income 3,647
-------------
Total investment income 38,257,206
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 3,321,017
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,307,924
Class B 269,085
Class C 202,063
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 293,022
Class B 16,127
Class C 11,350
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 56,701
Class B 2,988
Class C 1,590
- --------------------------------------------------------------------------------
Interest expense 553,374
- --------------------------------------------------------------------------------
Custodian fees and expenses 21,759
- --------------------------------------------------------------------------------
Trustees' compensation 17,330
- --------------------------------------------------------------------------------
Other 120,996
-------------
Total expenses 6,195,326
Less reduction to custodian expenses (1,481)
-------------
Net expenses 6,193,845
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 32,063,361
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized loss on investments (8,107,100)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 30,898,772
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 54,855,033
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30, 2005 2004
- -------------------------------------------------------------------------------------------------
OPERATIONS
- -------------------------------------------------------------------------------------------------
Net investment income $ 32,063,361 $ 33,577,820
- -------------------------------------------------------------------------------------------------
Net realized gain (loss) (8,107,100) 451,186
- -------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 30,898,772 3,740,499
--------------------------------
Net increase in net assets resulting from operations 54,855,033 37,769,505
- -------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (30,898,159) (29,863,870)
Class B (1,230,516) (1,440,068)
Class C (912,821) (697,461)
- -------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 99,925,792 937,726
Class B (1,865,322) (5,643,739)
Class C 14,788,701 2,556,172
- -------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------
Total increase 134,662,708 3,618,265
- -------------------------------------------------------------------------------------------------
Beginning of period 583,111,334 579,493,069
--------------------------------
End of period (including accumulated net investment income of
$1,078,657 and $2,446,369, respectively) $ 717,774,042 $ 583,111,334
================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED SEPTEMBER 30, 2005 2004 2003 2002 2001
- -------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.45 $ 12.31 $ 12.75 $ 12.67 $ 12.15
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .66 1 .72 .71 .68 .67
Net realized and unrealized gain (loss) .49 .11 (.44) .06 .50
---------------------------------------------------------------------
Total from investment operations 1.15 .83 .27 .74 1.17
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.69) (.69) (.71) (.66) (.65)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.91 $ 12.45 $ 12.31 $ 12.75 $ 12.67
=====================================================================
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 9.41% 6.91% 2.07% 6.11% 9.77%
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $659,975 $539,834 $533,563 $536,126 $530,464
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $580,413 $536,613 $531,977 $525,519 $526,333
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.17% 5.84% 5.57% 5.44% 5.30%
Total expenses 0.93% 0.91% 0.93% 0.89% 0.84%
Expenses after payments and waivers and
reduction to custodian expenses 0.93% 0.88% 0.93% 0.89% 0.84%
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 14% 6% 63% 73% 10%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED SEPTEMBER 30, 2005 2004 2003 2002 2001
- -------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.45 $ 12.32 $ 12.75 $ 12.68 $ 12.16
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .56 1 .62 .60 .58 .56
Net realized and unrealized gain (loss) .49 .10 (.42) .06 .51
---------------------------------------------------------------------
Total from investment operations 1.05 .72 .18 .64 1.07
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.59) (.59) (.61) (.57) (.55)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.91 $ 12.45 $ 12.32 $ 12.75 $ 12.68
=====================================================================
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 8.55% 5.99% 1.36% 5.22% 8.94%
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 26,680 $ 27,555 $ 32,851 $ 40,896 $ 46,422
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 26,977 $ 30,212 $ 36,000 $ 42,021 $ 48,115
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.41% 5.05% 4.77% 4.67% 4.53%
Total expenses 1.71% 1.69% 1.71% 1.66% 1.61%
Expenses after payments and waivers and
reduction to custodian expenses 1.71% 1.66% 1.71% 1.66% 1.61%
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 14% 6% 63% 73% 10%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
CLASS C YEAR ENDED SEPTEMBER 30, 2005 2004 2003 2002 2001
- -------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.45 $ 12.32 $ 12.75 $ 12.68 $ 12.15
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .55 1 .62 .60 .57 .56
Net realized and unrealized gain (loss) .50 .10 (.42) .07 .52
---------------------------------------------------------------------
Total from investment operations 1.05 .72 .18 .64 1.08
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.59) (.59) (.61) (.57) (.55)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.91 $ 12.45 $ 12.32 $ 12.75 $ 12.68
=====================================================================
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 8.55% 5.99% 1.35% 5.22% 9.03%
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 31,119 $ 15,723 $ 13,080 $ 10,603 $ 8,251
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 20,347 $ 14,598 $ 11,852 $ 9,183 $ 6,979
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.32% 5.04% 4.78% 4.66% 4.51%
Total expenses 1.70% 1.69% 1.72% 1.66% 1.61%
Expenses after payments and waivers and
reduction to custodian expenses 1.70% 1.66% 1.72% 1.66% 1.61%
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 14% 6% 63% 73% 10%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer AMT-Free New York Municipals (the Fund), is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund's investment objective is to seek the maximum current income
exempt from federal, New York State and New York City income taxes for
individual investors consistent with preservation of capital. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ due
to each class having its own expenses, such as transfer and shareholder
servicing agent fees and shareholder communications, directly attributable to
that class. Class A, B and C have separate distribution and/or service plans.
Class B shares will automatically convert to Class A shares six years after the
date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. 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
(including restricted securities) for which market quotations are not readily
available are valued at their fair value. Foreign
36 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
and domestic securities whose values have been materially affected by what the
Manager identifies as a significant event occurring before the Fund's assets are
valued but after the close of their respective exchanges will be fair valued.
Fair value is determined in good faith using consistently applied procedures
under the supervision of the Board of Trustees. Short-term "money market type"
debt securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
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 September 30, 2005, the Fund had purchased
$9,276,905 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 $50,536,782 as of September 30, 2005, which
represents 6.78% 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 September 30, 2005, securities with an
aggregate market value of $12,580,750, representing 1.75% of the Fund's net
assets, were in default.
There are certain risks arising from geographic concentration in any
state. Certain revenue or tax related events in a state may impair the ability
of certain issuers of municipal securities to pay principal and interest on
their obligations.
37 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
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 1,2,3,4 TAX PURPOSES
--------------------------------------------------------------------------------
$ 1,522,385 $-- $ 9,936,637 $41,315,057
1. As of September 30, 2005, the Fund had $1,450,798 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of September 30, 2005,
details of the capital loss carryforward were as follows:
EXPIRING
---------------------------------
2009 $1,450,798
2. As of September 30, 2005, the Fund had $8,485,839 of post-October losses
available to offset future realized capital gains, if any. Such losses, if
unutilized, will expire in 2014.
3. During the fiscal year ended September 30, 2005, the Fund utilized $6,520 of
capital loss carryforward to offset capital gains realized in that fiscal year.
4. During the fiscal year ended September 30, 2004, the Fund utilized $393,609
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 September 30, 2005. Net assets of
the Fund were unaffected by the reclassifications.
38 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
REDUCTION TO
ACCUMULATED NET
INCREASE TO INVESTMENT
PAID-IN CAPITAL INCOME
------------------------------------------------
$389,577 $389,577
The tax character of distributions paid during the years ended September 30,
2005 and September 30, 2004 was as follows:
YEAR ENDED YEAR ENDED
SEPT. 30, 2005 SEPT. 30, 2004
---------------------------------------------------------------------
Distributions paid from:
Exempt-interest dividends $33,041,496 $32,001,399
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 September 30, 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 $ 688,951,962
==============
Gross unrealized appreciation $ 43,265,127
Gross unrealized depreciation (1,950,070)
--------------
Net unrealized appreciation $ 41,315,057
==============
- --------------------------------------------------------------------------------
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
September 30, 2005, the Fund's projected benefit obligations were increased by
$598 and payments of $9,581 were made to retired trustees, resulting in an
accumulated liability of $99,085 as of September 30, 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
39 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
on the ex-dividend date. Income distributions, if any, are declared daily and
paid monthly. Capital gain distributions, if any, are declared and paid
annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts at a rate equal to the Federal
Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item, if
applicable, represents earnings on cash balances maintained by the Fund during
the period. Such interest expense and other custodian fees may be paid with
these earnings.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
YEAR ENDED SEPTEMBER 30, 2005 YEAR ENDED SEPTEMBER 30, 2004
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------
CLASS A
Sold 10,610,833 $ 136,386,348 3,850,924 $ 48,207,057
Dividends and/or
distributions reinvested 1,627,749 20,754,931 1,587,925 19,824,440
Redeemed (4,491,381) (57,215,487) (5,394,003) (67,093,771)
--------------------------------------------------------------------------
Net increase 7,747,201 $ 99,925,792 44,846 $ 937,726
==========================================================================
- ------------------------------------------------------------------------------------------------------------
CLASS B
Sold 317,313 $ 4,053,977 348,550 $ 4,364,065
Dividends and/or
distributions reinvested 61,813 787,655 74,760 934,320
Redeemed (526,394) (6,706,954) (877,035) (10,942,124)
--------------------------------------------------------------------------
Net decrease (147,268) $ (1,865,322) (453,725) $ (5,643,739)
==========================================================================
40 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
YEAR ENDED SEPTEMBER 30, 2005 YEAR ENDED SEPTEMBER 30, 2004
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------
CLASS C
Sold 1,372,677 $ 17,653,707 366,324 $ 4,608,949
Dividends and/or
distributions reinvested 47,512 607,157 35,480 442,749
Redeemed (273,325) (3,472,163) (200,686) (2,495,526)
--------------------------------------------------------------------------
Net increase 1,146,864 $ 14,788,701 201,118 $ 2,556,172
==========================================================================
- --------------------------------------------------------------------------------
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 September 30, 2005, were as
follows:
PURCHASES SALES
- --------------------------------------------------------------------------------
Investment securities $178,029,815 $ 78,876,628
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.60% of the first $200 million of average annual net assets,
0.55% of the next $100 million, 0.50% of the next $200 million, 0.45% of the
next $250 million, 0.40% of the next $250 million, and 0.35% of average annual
net assets in excess of $1 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the year ended September 30, 2005, the Fund paid
$320,522 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
41 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
charge of 0.75% 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 September 30, 2005 for Class B and
Class C shares were $1,453,746 and $430,222, 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
- ----------------------------------------------------------------------------------------------------
September 30, 2005 $210,101 $3,673 $60,350 $3,947
- --------------------------------------------------------------------------------
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 September 30, 2005, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund will not invest more than 15% of its net assets (determined at the time of
purchase and reviewed periodically) in illiquid securities. 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
42 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
agreement which enabled it to participate with certain other Oppenheimer funds
in a committed, unsecured line of credit with a bank, which permitted borrowings
up to $540 million, collectively. Interest was charged to each fund, based on
its borrowings, at a rate equal to the Federal Funds Rate plus 0.75%. The Fund
also paid a commitment fee equal to its pro rata share of the average unutilized
amount of the credit facility at a rate of 0.09% per annum.
Effective January 21, 2005 the Fund entered into a Revolving Credit and
Security Agreement (the "Agreement") with a conduit lender and a bank which
enables it to participate with certain other Oppenheimer funds in a committed,
secured borrowing facility that permits borrowings of up to $800 million,
collectively. To secure the loan, the Fund pledges investment securities in
accordance with the terms of the Agreement. Interest is charged to the Fund,
based on its borrowings, at current commercial paper issuance rates (3.7119% as
of September 30, 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 September 30, 2005, the average daily loan balance was
$17,986,849 at an average daily interest rate of 2.958%. The Fund had borrowings
outstanding of $16,000,000 at September 30, 2005 at an interest rate of 3.7119%.
The Fund had gross borrowings and gross loan repayments of $157,100,000 and
$164,100,000, respectively, during the year ended September 30, 2005. The
maximum amount of borrowings outstanding at any month-end during the year ended
September 30, 2005 was $52,000,000. The Fund paid $54,967 in fees and $550,109
in interest during the year ended September 30, 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,
43 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. LITIGATION Continued
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.
44 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer AMT-Free New York Municipals, including the statement of
investments, as of September 30, 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 September 30, 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 New York Municipals as of September 30, 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
November 16, 2005
45 | OPPENHEIMER AMT-FREE NEW YORK 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 fiscal year ended
September 30, 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.
46 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
REPORT OF SHAREHOLDER MEETING Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
On August 17, 2005, a shareholder meeting of the Oppenheimer AMT-Free New York
Municipals was held at which the eleven Trustees identified below were elected
(Proposal No. 1) and the sub-proposals in (Proposal No. 2) were approved as
described in the Funds' proxy statement for that meeting. The following is a
report of the votes cast:
- --------------------------------------------------------------------------------
PROPOSAL NO. 1
NOMINEE FOR WITHHELD TOTAL
- --------------------------------------------------------------------------------
TRUSTEES
Matthew P. Fink 27,791,065.397 531,952.825 28,323,018.222
Robert G. Galli 27,726,105.625 596,912.597 28,323,018.222
Phillip A. Griffiths 27,797,006.089 526,012.133 28,323,018.222
Mary F. Miller 27,722,273.618 600,744.604 28,323,018.222
Joel W. Motley 27,793,450.968 529,567.254 28,323,018.222
John V. Murphy 27,763,995.926 559,022.296 28,323,018.222
Kenneth A. Randall 27,699,844.592 623,173.630 28,323,018.222
Russell S. Reynolds, Jr. 27,731,564.737 591,453.485 28,323,018.222
Joseph M. Wikler 27,779,044.219 543,974.003 28,323,018.222
Peter I. Wold 27,782,713.188 540,305.034 28,323,018.222
Clayton K. Yeutter 27,713,534.152 609,484.070 28,323,018.222
- --------------------------------------------------------------------------------
PROPOSAL NO. 2 Proposal to change the policy on
FOR AGAINST ABSTAIN BROKER NON VOTE TOTAL
- --------------------------------------------------------------------------------------------------------------
2C: Diversification of Investments
19,583,787.692 863,483.585 1,059,096.945 6,816,650.000 28,323,018.222
2D: Investment Futures
19,478,701.801 993,807.931 1,033,858.490 6,816,650.000 28,323,018.222
2L: Senior Securities
19,807,486.004 631,238.159 1,067,644.059 6,816,650.000 28,323,018.222
2M: Underwriting
19,604,730.559 716,984.160 1,184,653.503 6,816,650.000 28,323,018.222
2O: Investment Percentage Restrictions
19,350,281.587 881,568.630 1,274,518.005 6,816,650.000 28,323,018.222
47 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
48 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS
FUND, LENGTH OF SERVICE, AGE HELD; NUMBER OF PORTFOLIOS IN THE FUND COMPLEX CURRENTLY OVERSEEN
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
Age: 74 2002); Director of ConAgra Foods (1993-2001); Director of Texas Instruments
(1993-2001); Director of FMC Corporation (1993-2001). Oversees 38 portfolios
in the OppenheimerFunds complex.
MATTHEW P. FINK, Trustee of the Committee for Economic Development (policy research foundation)
Trustee (since 2005) (since 2005); Director of ICI Education Foundation (education foundation)
Age: 64 (since October 1991); President of the Investment Company Institute (trade
association) (1991-2004); Director of ICI Mutual Insurance Company (insurance
company) (1991-2004). Oversees 38 portfolios in the OppenheimerFunds
complex.
ROBERT G. GALLI, A trustee or director of other Oppenheimer funds. Oversees 48 portfolios in the
Trustee (since 1993) OppenheimerFunds complex.
Age: 72
PHILLIP A. GRIFFITHS, Director of GSI Lumonics Inc. (precision medical equipment supplier) (since
Trustee (since 1999) 2001); Trustee of Woodward Academy (since 1983); Senior Advisor of The
Age: 67 Andrew W. Mellon 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 38 portfolios in the OppenheimerFunds complex.
MARY F. MILLER, Trustee of the American Symphony Orchestra (not-for-profit) (since October
Trustee (since 2004) 1998); and Senior Vice President and General Auditor of American Express
Age: 63 Company (financial services company) (July 1998-February 2003). Oversees
38 portfolios in the OppenheimerFunds complex.
JOEL W. MOTLEY, Director of Columbia Equity Financial Corp. (privately-held financial adviser)
Trustee (since 2002) (since 2002); Managing Director of Carmona Motley, Inc. (privately-held financial
Age: 53 adviser) (since January 2002); Managing Director of Carmona Motley Hoffman
Inc. (privately-held financial adviser) (January 1998-December 2001). Oversees
38 portfolios in the OppenheimerFunds complex.
KENNETH A. RANDALL, Director of Dominion Resources, Inc. (electric utility holding company) (since
Trustee (since 1984) February 1972); Former Director of Prime Retail, Inc. (real estate investment
Age: 78 trust), Dominion 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 38 portfolios in the OppenheimerFunds
complex.
49 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
RUSSELL S. REYNOLDS, JR., Chairman of The Directorship Search Group, Inc. (corporate governance consulting
Trustee (since 1989) and executive recruiting) (since 1993); Life Trustee of International House
Age: 73 (non-profit educational organization); Former Trustee of The Historical Society
of the Town of Greenwich. Oversees 38 portfolios in the OppenheimerFunds
complex.
JOSEPH M. WIKLER, Director of the following medical device companies: Medintec (since 1992)
Trustee (since 2005) and Cathco (since 1996); Director of Lakes Environmental Association (since
Age: 64 1996); Member of the 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
Trustee (since 2005) company) (since 1994); Vice President, Secretary and Treasurer of Wold Trona
Age: 57 Company, Inc. (soda 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.
BRIAN F. WRUBLE, General Partner of Odyssey Partners, L.P. (hedge fund) (since September 1996);
Trustee (since 2005) Director of Special Value Opportunities Fund, LLC (registered investment company)
Age: 62 (since September 2004); Director of Zurich Financial Investment Advisory
Board (affiliate of the Manager's parent company) (since October 2004); Board
of Governing Trustees of The Jackson Laboratory (non-profit) (since August
1990); Trustee of the Institute for Advanced Study (non-profit educational
institute) (since May 1992); Special Limited Partner of Odyssey Investment Partners,
LLC (private equity investment) (January 1999-September 2004); Trustee of
Research Foundation of AIMR (2000-2002) (investment research, non-profit);
Governor, Jerome Levy Economics Institute of Bard College (August 1990-
September 2001) (economics research); Director of Ray & Berendtson, Inc.
(May 2000-April 2002) (executive search firm). Oversees 48 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 A TRUSTEE FOR AN INDEFINITE
TERM AND AS AN OFFICER FOR AN ANNUAL TERM, OR UNTIL HIS RESIGNATION, RETIREMENT,
DEATH OR REMOVAL. MR. MURPHY IS AN INTERESTED TRUSTEE DUE TO HIS POSITIONS WITH
OPPENHEIMERFUNDS, INC. AND ITS AFFILIATES.
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director (since June 2001) and President
President and (since September 2000) of the Manager; President and Director or Trustee of
Principal Executive Officer other Oppenheimer funds; President and Director of Oppenheimer Acquisition
(since 2001) Corp. ("OAC") (the Manager's parent holding company) and of Oppenheimer
and Trustee Partnership Holdings, Inc. (holding company subsidiary of the Manager) (since
(since 2001) July 2001); Director of OppenheimerFunds Distributor, Inc. (subsidiary of the
Age: 56 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
50 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
JOHN V. MURPHY, Management Corporation and OFI Private Investments, Inc. (since July
Continued 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 77 portfolios as a Director or Trustee and 10 additional portfolios
as officer in the OppenheimerFunds complex.
- ------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MR. ZACK, TWO
OF THE FUND WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NY 10281-1008,
FOR MESSRS. WIXTED AND VANDEHEY, 6803 S. TUCSON WAY, CENTENNIAL, CO 80112-3924,
AND FOR MESSRS. FIELDING, LOUGHRAN, COTTIER AND WILLIS, 350 LINDEN OAKS, ROCHESTER,
NY 14625. EACH OFFICER SERVES FOR AN ANNUAL TERM OR UNTIL HIS OR HER RESIGNATION,
RETIREMENT, DEATH OR REMOVAL.
RONALD H. FIELDING, Senior Vice President of the Manager since January 1996; Chairman of the
Vice President (since 2002) Rochester Division of the Manager since January 1996. An officer of 10 portfolios
Age: 55 in the OppenheimerFunds complex.
DANIEL G. LOUGHRAN, Vice President of the Manager (since April 2001). An officer of 8 portfolios in
Vice President the OppenheimerFunds complex.
(since 2005)
Age: 42
SCOTT COTTIER, Vice President of the Manager (since 2002); portfolio manager and trader
Vice President at Victory Capital Management (1999-2002). An officer of 8 portfolios in the
(since 2005) OppenheimerFunds complex.
Age: 34
TROY WILLIS, Associate Portfolio Manager of the Manager since 2003; corporate attorney
Vice President for Southern Resource Group (1999-2003). An officer of 8 portfolios in the
(since 2005) OppenheimerFunds complex.
Age: 33
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager (since
Vice President and March 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial
Chief Compliance Officer Asset Management Corporation and Shareholder Services, Inc. (since June 1983).
(since 2004) Former Vice President and Director of Internal Audit of the Manager (1997-
Age: 55 February 2004). An officer of 87 portfolios in the OppenheimerFunds complex.
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999);
Treasurer and Treasurer of the following: HarbourView Asset Management Corporation,
Principal Financial Shareholder Financial Services, Inc., Shareholder Services, Inc., Oppenheimer
Accounting Officer Real Asset Management Corporation, and Oppenheimer Partnership Holdings,
(since 1999) Inc. (since March 1999), OFI Private Investments, Inc. (since March 2000),
Age: 46 OppenheimerFunds International Ltd. (since May 2000), OppenheimerFunds
51 | OPPENHEIMER AMT-FREE NEW YORK MUNICIPALS
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
BRIAN W. WIXTED, plc (since May 2000), OFI Institutional Asset Management, Inc. (since November
Continued 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
Secretary (since 2001) March 2002) of the Manager; General Counsel and Director of the Distributor
Age: 57 (since December 2001); 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.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND OFFICERS AND IS AVAILABLE WITHOUT CHARGE UPON
REQUEST, BY CALLING 1.800.525.7048.
52 | OPPENHEIMER AMT-FREE NEW YORK 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 $28,000 in fiscal 2005 and $28,000 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 $156,805 in fiscal 2005 and $44,500 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: 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: Preparation of Form 5500 and tax consultations on pass through of
foreign withholding taxes and mortgage dollar roll transactions.
(d) All Other 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 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 $161,805 in fiscal 2005 and $50,500 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 FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's 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 September 30, 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) Exhibit attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer AMT-Free New York Municipals
By: /s/ John V. Murphy
------------------
John V. Murphy
Principal Executive Officer
Date: November 16, 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: November 16, 2005
By: /s/ Brian W. Wixted
-------------------
Brian W. Wixted
Principal Financial Officer
Date: November 16, 2005