UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-5586
OPPENHEIMER CALIFORNIA MUNICIPAL FUND
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
ROBERT G. ZACK, ESQ.
OPPENHEIMERFUNDS, INC.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: JULY 31
Date of reporting period: JANUARY 31, 2006
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN INDUSTRIES
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Tobacco Settlement Payments 24.9%
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Special Tax 22.8
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Special Assessment 12.9
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Municipal Leases 5.3
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General Obligation 4.7
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Marine/Aviation Facilities 4.0
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Pollution Control 2.8
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Multifamily Housing 2.5
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Highways/Railways 2.4
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Water Utilities 2.2
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2006, and are based on the 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 15.8%
AA 6.0
A 4.3
BBB 53.0
BB 2.4
B 0.8
CCC 1.7
Not Rated 16.0
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2006, and are dollar-weighted based on the total market value of
investments. Securities rated by any rating organization are included in the
equivalent S&P rating category. The allocation includes rated securities and
those not rated by a national rating organization but to which the ratings above
have been assigned by the Manager for internal purposes as being comparable, in
the Manager's judgment, to securities rated by a rating agency in the same
category.
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13 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES
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Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Cumulative total returns are not annualized. The Fund's total returns
shown do not reflect the deduction of income taxes on an individual's
investment. Taxes may reduce your actual investment returns on income or gains
paid by the Fund or any gains you may realize if you sell your shares. THIS
SEMIANNUAL REPORT MUST BE PRECEDED OR ACCOMPANIED BY THE CURRENT PROSPECTUS OF
OPPENHEIMER CALIFORNIA MUNICIPAL FUND. BEFORE INVESTING IN ANY OF THE
OPPENHEIMER FUNDS, INVESTORS SHOULD CAREFULLY CONSIDER A FUND'S INVESTMENT
OBJECTIVES, RISKS, CHARGES AND EXPENSES. FUND PROSPECTUSES CONTAIN THIS AND
OTHER INFORMATION ABOUT THE FUNDS. FOR MORE INFORMATION, ASK YOUR FINANCIAL
ADVISOR, CALL US AT 1.800.525.7048, OR VISIT OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ PROSPECTUSES CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 11/3/88. The average
annual total returns are shown net of the applicable 4.75% maximum initial sales
charge. The Fund's maximum sales charge for Class A shares was lower prior to
1/31/86, so actual performance may have been higher.
CLASS B shares of the Fund were first publicly offered on 5/3/93. The average
annual total returns are shown net of the applicable contingent deferred sales
charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A
shares 72 months after purchase, the "since inception" return for Class B uses
Class A performance for the period after conversion. Class B shares are subject
to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 11/1/95. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
14 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended January 31, 2006.
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
15 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FUND EXPENSES
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the Statement of Additional Information). Therefore, the "hypothetical" lines of
the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(8/1/05) (1/31/06) JANUARY 31, 2006
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Class A Actual $1,000.00 $1,019.00 $5.00
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Class A Hypothetical 1,000.00 1,020.27 5.00
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Class B Actual 1,000.00 1,014.90 9.03
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Class B Hypothetical 1,000.00 1,016.28 9.04
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Class C Actual 1,000.00 1,015.10 8.88
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Class C Hypothetical 1,000.00 1,016.43 8.88
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 184/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended January 31, 2006 are as follows:
CLASS EXPENSE RATIOS
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Class A 0.98%
- ----------------------------
Class B 1.77
- ----------------------------
Class C 1.74
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16 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS January 31, 2006 / Unaudited
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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MUNICIPAL BONDS AND NOTES--101.8%
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CALIFORNIA--90.8%
$ 3,025,000 ABAG Finance Authority for NonProfit Corporations
(Channing House) 1 5.500% 02/15/2029 $ 3,130,331
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1,000,000 ABAG Finance Authority for NonProfit Corporations
(Schools of Sacred Heart) 1 6.450 06/01/2030 1,065,660
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90,000 ABAG Finance Authority for NonProfit Corporations COP 6.000 08/15/2020 91,948
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450,000 ABAG Finance Authority for NonProfit Corporations
COP (American Baptist Homes of the West) 5.750 10/01/2017 454,437
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250,000 ABAG Finance Authority for NonProfit Corporations
COP (Lytton Gardens) 6.000 02/15/2019 261,373
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440,000 ABAG Finance Authority for NonProfit Corporations
COP (O'Connor Woods) 6.200 11/01/2029 475,768
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4,300,000 ABAG Finance Authority for NonProfit Corporations
COP (Redwood Senior Homes & Services) 1 6.125 11/15/2032 4,623,962
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55,000 Adelanto Improvement Agency, Series B 5.500 12/01/2023 55,387
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50,000 Adelanto Public Financing Authority 6.300 09/01/2028 51,111
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5,295,000 Agua Mansa Industrial Growth Association Special Tax 6.500 09/01/2033 5,603,010
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1,500,000 Alameda COP 5.750 12/01/2021 1,558,875
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200,000 Alameda Public Financing Authority 5.450 09/02/2014 204,172
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1,695,000 American Canyon Financing Authority
(American Canyon Road East) 5.100 09/02/2035 1,651,727
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4,000,000 Anaheim Public Financing Authority RITES 1,2 9.520 3 12/28/2018 4,607,960
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3,255,000 Apple Valley Redevel. Agency Tax Allocation 5.000 06/01/2035 3,292,302
- --------------------------------------------------------------------------------------------------------------------------
500,000 Arvin Community Redevel. Agency 5.000 09/01/2025 477,440
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2,435,000 Arvin Community Redevel. Agency 5.125 09/01/2035 2,331,318
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2,025,000 Aztec Shops Auxiliary Organization
(San Diego State University) 1 6.000 09/01/2031 2,142,248
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2,500,000 Azusa Special Tax Community Facilities District
(Mountain Cove) 6.000 09/01/2032 2,578,550
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615,000 Bakersfield Improvement Bond Act 1915 5.350 09/02/2022 616,156
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2,310,000 Bakersfield Improvement Bond Act 1915 5.400 09/02/2025 2,305,727
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75,000 Bay Area Governments Assoc. (Windmere Ranch) 6.150 09/02/2029 82,907
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 Beaumont Financing Authority, Series A 5.750 09/01/2034 1,549,770
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1,000,000 Beaumont Financing Authority, Series B 5.350 09/01/2028 1,005,830
- --------------------------------------------------------------------------------------------------------------------------
1,490,000 Beaumont Financing Authority, Series B 5.400 09/01/2035 1,493,218
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 Beaumont Financing Authority, Series B 1 6.000 09/01/2034 5,246,700
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 Beaumont Financing Authority, Series B 6.000 09/01/2034 1,573,605
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2,340,000 Beaumont Financing Authority, Series C 5.500 09/01/2035 2,342,246
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2,875,000 Beaumont Financing Authority, Series D 5.800 09/01/2035 2,981,893
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400,000 Berkeley GO 5.625 09/01/2027 408,656
17 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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CALIFORNIA Continued
$ 500,000 Blythe Community Facilities District Special Tax
(Hidden Beaches) 5.300% 09/01/2035 $ 479,460
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30,000 Blythe Redevel. Agency
(Redevel. Project No. 1 Tax Allocation) 5.650 05/01/2029 31,034
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12,030,000 CA County Tobacco Securitization Agency (TASC) 5.125 06/01/2038 11,732,378
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3,725,000 CA County Tobacco Securitization Agency (TASC) 5.125 06/01/2038 3,632,844
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11,410,000 CA County Tobacco Securitization Agency (TASC) 5.250 06/01/2045 11,213,406
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5,815,000 CA County Tobacco Securitization Agency (TASC) 5.250 06/01/2045 5,714,808
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1,595,000 CA County Tobacco Securitization Agency (TASC) 1 5.750 06/01/2027 1,650,825
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4,350,000 CA County Tobacco Securitization Agency (TASC) 5.750 06/01/2029 4,502,250
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6,230,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2027 6,489,729
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9,125,000 CA County Tobacco Securitization Agency (TASC) 5.875 06/01/2035 9,490,456
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1,250,000 CA County Tobacco Securitization Agency (TASC) 1 5.875 06/01/2043 1,300,063
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10,500,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2035 11,003,370
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150,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2038 157,217
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21,925,000 CA County Tobacco Securitization Agency (TASC) 6.000 06/01/2042 22,979,812
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10,025,000 CA County Tobacco Securitization Agency (TASC) 6.125 06/01/2038 10,574,370
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50,000 CA County Tobacco Securitization Agency (TASC) 6.125 06/01/2043 52,740
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100,000 CA Department of Veterans Affairs Home Purchase 5.100 12/01/2019 100,067
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75,000 CA Department of Veterans Affairs Home Purchase 5.200 12/01/2027 75,042
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65,000 CA Department of Veterans Affairs Home Purchase 5.500 12/01/2019 68,405
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20,000 CA Department of Water Resources (Center Valley) 5.000 12/01/2029 20,291
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190,000 CA Educational Facilities Authority
(Carnegie Institution of Washington) 5.600 10/01/2023 190,353
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6,440,000 CA Educational Facilities Authority (Dominican University) 5.000 12/01/2036 6,364,652
- --------------------------------------------------------------------------------------------------------------------------
25,000 CA Educational Facilities Authority
(Golden Gate University) 5.500 10/01/2031 25,612
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1,000,000 CA Educational Facilities Authority
(Western University Health Sciences) 1 6.000 10/01/2032 1,062,830
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45,000 CA GO 5.000 04/01/2022 46,700
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500,000 CA GO 5.000 02/01/2023 518,245
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130,000 CA GO 5.000 10/01/2023 132,938
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100,000 CA GO 5.000 02/01/2024 103,374
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155,000 CA GO 5.000 08/01/2024 162,375
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310,000 CA GO 5.000 03/01/2028 319,018
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10,000 CA GO 5.000 02/01/2029 10,263
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100,000 CA GO 5.000 02/01/2032 102,298
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30,000 CA GO 5.000 02/01/2032 30,738
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15,000 CA GO 5.000 02/01/2033 15,487
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5,000 CA GO 5.125 02/01/2027 5,183
18 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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CALIFORNIA Continued
$ 20,000 CA GO 5.125% 03/01/2031 $ 20,621
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50,000 CA GO 5.125 06/01/2031 51,814
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100,000 CA GO 5.150 10/01/2019 100,288
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40,000 CA GO 5.250 04/01/2034 42,464
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25,000 CA GO 5.500 04/01/2019 25,090
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5,000 CA GO 5.500 03/01/2020 5,009
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5,000 CA GO 5.500 10/01/2022 5,013
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200,000 CA GO 6.250 10/01/2019 200,868
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8,005,000 CA Golden State Tobacco Securitization Corp. 6.250 06/01/2033 8,748,344
- --------------------------------------------------------------------------------------------------------------------------
38,460,000 CA Golden State Tobacco Securitization Corp. 6.625 06/01/2040 42,916,360
- --------------------------------------------------------------------------------------------------------------------------
9,345,000 CA Golden State Tobacco Securitization Corp. 6.750 06/01/2039 10,524,059
- --------------------------------------------------------------------------------------------------------------------------
1,350,000 CA Golden State Tobacco Securitization Corp. 1 7.800 06/01/2042 1,617,597
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 CA Golden State Tobacco Securitization Corp. 1 7.900 06/01/2042 2,408,780
- --------------------------------------------------------------------------------------------------------------------------
23,805,000 CA Golden State Tobacco Securitization Corp. (TASC) 5.000 06/01/2045 24,113,513
- --------------------------------------------------------------------------------------------------------------------------
2,810,000 CA Golden State Tobacco Securitization Corp. (TASC) 1 7.875 06/01/2042 3,380,009
- --------------------------------------------------------------------------------------------------------------------------
150,000 CA Golden State Tobacco Securitization Corp. (TASC) 7.875 06/01/2042 180,428
- --------------------------------------------------------------------------------------------------------------------------
140,000 CA Health Facilities Financing Authority
(Small Facilities Loan), Series B 7.400 04/01/2014 143,184
- --------------------------------------------------------------------------------------------------------------------------
25,000 CA Health Facilities Financing Authority
(Stanford Health Care) 5.000 11/15/2028 25,957
- --------------------------------------------------------------------------------------------------------------------------
25,000 CA HFA (Multifamily Hsg.), Series A 5.900 02/01/2028 25,615
- --------------------------------------------------------------------------------------------------------------------------
35,000 CA HFA (Multifamily Hsg.), Series B 5.500 08/01/2039 35,815
- --------------------------------------------------------------------------------------------------------------------------
270,000 CA HFA (Single Family Mtg.), Series A-2 1 6.450 08/01/2025 273,316
- --------------------------------------------------------------------------------------------------------------------------
20,000 CA HFA, Series A 5.600 08/01/2011 20,485
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75,000 CA HFA, Series B 5.650 08/01/2014 75,090
- --------------------------------------------------------------------------------------------------------------------------
300,000 CA HFA, Series B 7.125 08/01/2024 306,102
- --------------------------------------------------------------------------------------------------------------------------
340,000 CA HFA, Series B-1 1 5.600 08/01/2017 349,921
- --------------------------------------------------------------------------------------------------------------------------
11,500,000 CA Pollution Control Financing Authority
(Browning-Ferris Industries) 6.875 11/01/2027 11,535,535
- --------------------------------------------------------------------------------------------------------------------------
3,755,000 CA Pollution Control Financing Authority
(General Motors Corp.) 1 5.500 04/01/2008 3,530,902
- --------------------------------------------------------------------------------------------------------------------------
60,000 CA Pollution Control Financing Authority
(Mobil Oil Corp.) 5.500 12/01/2029 62,102
- --------------------------------------------------------------------------------------------------------------------------
145,000 CA Pollution Control Financing Authority
(San Diego Gas & Electric Company) 5.850 06/01/2021 145,281
- --------------------------------------------------------------------------------------------------------------------------
975,000 CA Pollution Control Financing Authority
(San Diego Gas & Electric Company) 1 5.850 06/01/2021 976,307
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 CA Pollution Control Financing Authority
(Waste Management) 1 5.400 04/01/2025 3,120,720
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200,000 CA Public Works (Dept. of General Services) 5.000 12/01/2027 206,826
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7,675,000 CA Public Works (Dept. of Health) 1 5.000 11/01/2024 8,008,556
19 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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CALIFORNIA Continued
$ 15,000 CA Public Works (State Universities) 5.500% 12/01/2018 $ 15,015
- --------------------------------------------------------------------------------------------------------------------------
50,000 CA Public Works (State Universities) 5.500 06/01/2019 50,092
- --------------------------------------------------------------------------------------------------------------------------
50,000 CA Public Works (State Universities) 5.500 06/01/2021 50,088
- --------------------------------------------------------------------------------------------------------------------------
615,000 CA Public Works (State Universities) 5.500 06/01/2021 616,076
- --------------------------------------------------------------------------------------------------------------------------
870,000 CA Public Works (State Universities) 5.500 06/01/2021 870,844
- --------------------------------------------------------------------------------------------------------------------------
535,000 CA Public Works (Various California Universities Project) 5.500 06/01/2019 536,343
- --------------------------------------------------------------------------------------------------------------------------
65,000 CA Rural Home Mtg. Finance Authority
(Single Family Mtg.), Series D 6.700 05/01/2029 65,584
- --------------------------------------------------------------------------------------------------------------------------
25,000 CA Statewide CDA 6.625 09/01/2027 25,478
- --------------------------------------------------------------------------------------------------------------------------
5,400,000 CA Statewide CDA (Berkeley Montessori School) 7.250 10/01/2033 5,957,820
- --------------------------------------------------------------------------------------------------------------------------
265,000 CA Statewide CDA (CA Odd Fellow Hsg.) 5.500 10/01/2023 265,228
- --------------------------------------------------------------------------------------------------------------------------
845,000 CA Statewide CDA (Citrus Gardens Apartments) 1 6.500 07/01/2032 883,329
- --------------------------------------------------------------------------------------------------------------------------
1,420,000 CA Statewide CDA (Citrus Gardens Apartments) 9.000 07/01/2032 1,420,227
- --------------------------------------------------------------------------------------------------------------------------
9,800,000 CA Statewide CDA (East Valley Tourist) 9.250 10/01/2020 10,798,718
- --------------------------------------------------------------------------------------------------------------------------
7,600,000 CA Statewide CDA (East Valley Tourist) 11.000 10/01/2020 7,790,912
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 CA Statewide CDA (Fairfield Apartments) 7.250 01/01/2035 4,849,850
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 CA Statewide CDA (John F. Kennedy University) 1 6.750 10/01/2033 5,176,000
- --------------------------------------------------------------------------------------------------------------------------
550,000 CA Statewide CDA (Kaiser Permanente) 5.300 12/01/2015 566,181
- --------------------------------------------------------------------------------------------------------------------------
2,750,000 CA Statewide CDA (Live Oak School) 6.750 10/01/2030 2,926,963
- --------------------------------------------------------------------------------------------------------------------------
6,000,000 CA Statewide CDA (Marin Montessori School) 7.000 10/01/2033 6,578,700
- --------------------------------------------------------------------------------------------------------------------------
1,400,000 CA Statewide CDA (Napa Valley Hospice) 7.000 01/01/2034 1,460,256
- --------------------------------------------------------------------------------------------------------------------------
1,650,000 CA Statewide CDA (Notre Dame de Namur University) 1 6.500 10/01/2023 1,692,290
- --------------------------------------------------------------------------------------------------------------------------
1,635,000 CA Statewide CDA (Notre Dame de Namur University) 1 6.625 10/01/2033 1,680,224
- --------------------------------------------------------------------------------------------------------------------------
1,455,000 CA Statewide CDA (Quail Ridge Apartments) 1 6.500 07/01/2032 1,506,318
- --------------------------------------------------------------------------------------------------------------------------
2,090,000 CA Statewide CDA (Quail Ridge Apartments) 1 9.000 07/01/2032 2,089,436
- --------------------------------------------------------------------------------------------------------------------------
475,000 CA Statewide CDA (Rio Bravo) 1 6.300 12/01/2018 482,325
- --------------------------------------------------------------------------------------------------------------------------
1,975,000 CA Statewide CDA (Sonoma Country Day School) 1 6.000 01/01/2029 1,909,331
- --------------------------------------------------------------------------------------------------------------------------
160,000 CA Statewide CDA (Stonehaven Student Hsg.) 1 5.875 07/01/2032 171,813
- --------------------------------------------------------------------------------------------------------------------------
15,000 CA Statewide CDA (Sutter Health Obligated Group) 5.500 08/15/2034 15,768
- --------------------------------------------------------------------------------------------------------------------------
400,000 CA Statewide CDA (Sycamore) 1 6.000 03/20/2038 433,456
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 CA Statewide CDA (Turning Point) 6.500 11/01/2031 4,132,960
- --------------------------------------------------------------------------------------------------------------------------
500,000 CA Statewide CDA (United Airlines) 1,4 5.700 10/01/2033 224,365
- --------------------------------------------------------------------------------------------------------------------------
1,940,000 CA Statewide CDA COP (Windward School) 1 6.900 09/01/2023 1,998,045
- --------------------------------------------------------------------------------------------------------------------------
4,500,000 CA Statewide CDA COP INFLOS 1,2 7.704 3 10/01/2011 5,180,265
- --------------------------------------------------------------------------------------------------------------------------
500,000 CA Statewide CDA, Series A 5.200 09/02/2025 504,455
- --------------------------------------------------------------------------------------------------------------------------
1,900,000 CA Statewide CDA, Series A 5.350 09/02/2035 1,947,082
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 CA Statewide Financing Authority Tobacco Settlement
(TASC) 6.000 05/01/2037 5,237,800
- --------------------------------------------------------------------------------------------------------------------------
11,745,000 CA Statewide Financing Authority Tobacco Settlement
(TASC) 6.000 05/01/2043 12,303,592
20 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
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CALIFORNIA Continued
$ 30,000,000 CA Statewide Financing Authority Tobacco Settlement
(TASC) 6.000% 05/01/2043 $ 31,426,800
- --------------------------------------------------------------------------------------------------------------------------
3,835,000 CA Valley Health System COP 1 6.875 05/15/2023 3,840,139
- --------------------------------------------------------------------------------------------------------------------------
75,000 CA Valley Health System, Series A 6.500 05/15/2025 77,131
- --------------------------------------------------------------------------------------------------------------------------
120,000 CA Veterans GO 4.700 12/01/2012 120,037
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 CA Veterans GO 4.700 12/01/2017 5,085,550
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 CA Veterans GO 1 5.600 12/01/2032 2,541,700
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 CA Veterans GO, Series B 5.450 12/01/2017 1,515,675
- --------------------------------------------------------------------------------------------------------------------------
6,800,000 CA Veterans GO, Series BH 1 5.600 12/01/2032 6,851,204
- --------------------------------------------------------------------------------------------------------------------------
55,000 CA Veterans GO, Series BP 5.500 12/01/2026 55,037
- --------------------------------------------------------------------------------------------------------------------------
150,000 CA Veterans GO, Series BR 5.250 12/01/2026 150,074
- --------------------------------------------------------------------------------------------------------------------------
565,000 CA Veterans GO, Series BT 5.000 12/01/2012 571,430
- --------------------------------------------------------------------------------------------------------------------------
6,250,000 CA Veterans GO, Series BT 5.375 12/01/2016 6,323,125
- --------------------------------------------------------------------------------------------------------------------------
25,000 CA Water Resource Devel. GO, Series S 5.500 04/01/2009 25,045
- --------------------------------------------------------------------------------------------------------------------------
2,870,000 Calaveras County Special Tax Community Facilities
District No. 2 7.000 09/01/2026 3,137,828
- --------------------------------------------------------------------------------------------------------------------------
2,270,000 Campbell Redevel. Agency Tax Allocation 6.600 10/01/2032 2,446,561
- --------------------------------------------------------------------------------------------------------------------------
1,415,000 Carson Improvement Bond Act 2 7.375 09/02/2022 1,455,469
- --------------------------------------------------------------------------------------------------------------------------
6,000,000 Carson Redevel. Agency 6.000 01/01/2035 6,176,580
- --------------------------------------------------------------------------------------------------------------------------
1,350,000 Cathedral City Improvement Bond Act 1915 5.050 09/02/2035 1,312,970
- --------------------------------------------------------------------------------------------------------------------------
100,000 Central CA Joint Powers Health Financing Authority
COP (Community Hospitals of Central CA) 6.000 02/01/2020 105,615
- --------------------------------------------------------------------------------------------------------------------------
1,200,000 Chino Community Facilities District Special Tax 6.000 09/01/2028 1,259,088
- --------------------------------------------------------------------------------------------------------------------------
1,340,000 Chino Community Facilities District Special Tax 6.000 09/01/2033 1,394,913
- --------------------------------------------------------------------------------------------------------------------------
5,000 Chino Valley Unified School District COP 5.000 09/01/2026 5,197
- --------------------------------------------------------------------------------------------------------------------------
2,790,000 Chowchilla Redevel. Agency 5.000 08/01/2037 2,837,067
- --------------------------------------------------------------------------------------------------------------------------
1,825,000 Chowchilla Redevel. Agency 5.000 08/01/2037 1,855,788
- --------------------------------------------------------------------------------------------------------------------------
6,840,000 Chula Vista Redevel. Agency (Bayfront) 7.625 09/01/2024 7,053,545
- --------------------------------------------------------------------------------------------------------------------------
500,000 Chula Vista Redevel. Agency (Bayfront) 8.250 05/01/2024 515,750
- --------------------------------------------------------------------------------------------------------------------------
1,825,000 Coalinga Regional Medical Center COP 5.750 09/01/2024 1,893,857
- --------------------------------------------------------------------------------------------------------------------------
3,040,000 Coalinga Regional Medical Center COP 6.000 09/01/2034 3,108,491
- --------------------------------------------------------------------------------------------------------------------------
2,280,000 Colton Community Facilities District Special Tax 7.500 09/01/2020 2,478,998
- --------------------------------------------------------------------------------------------------------------------------
2,800,000 Commerce CDC Tax Allocation 6.000 08/01/2021 2,919,112
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 Corcoran Hospital District, Series A 5.000 08/01/2035 4,095,240
- --------------------------------------------------------------------------------------------------------------------------
3,335,000 Davis Public Facilities Financing Authority
(Mace Ranch Area) 6.600 09/01/2025 3,460,763
- --------------------------------------------------------------------------------------------------------------------------
5,060,000 East Palo Alto Public Finance Authority
(University Circle Gateway) 5.000 10/01/2029 5,217,771
- --------------------------------------------------------------------------------------------------------------------------
3,280,000 East Palo Alto Redevel. Agency Tax Allocation
(University Circle-Gateway) 6.625 10/01/2029 3,480,670
- --------------------------------------------------------------------------------------------------------------------------
400,000 Eastern CA Municipal Water District 5.125 09/01/2035 385,824
21 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,500,000 Eastern CA Municipal Water District
(Crown Valley Village) 5.625% 09/01/2034 $ 1,530,135
- --------------------------------------------------------------------------------------------------------------------------
835,000 Eastern CA Municipal Water District (Quinta Do Lago) 5.100 09/01/2035 813,682
- --------------------------------------------------------------------------------------------------------------------------
160,000 Eastern CA Municipal Water District (Serena Hills) 6.000 09/01/2033 162,078
- --------------------------------------------------------------------------------------------------------------------------
3,740,000 Eastern CA Municipal Water District
Community Facilities District 5.250 09/01/2035 3,757,989
- --------------------------------------------------------------------------------------------------------------------------
1,725,000 Eastern Municipal Water District
Improvement Bond Act 1915 5.500 09/02/2035 1,716,168
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 El Dorado County Special Tax 5.250 09/01/2035 3,979,000
- --------------------------------------------------------------------------------------------------------------------------
1,900,000 El Dorado County Special Tax 5.350 09/01/2035 1,876,269
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Escondido Joint Powers Financing Authority
(California Center for the Arts) 6.000 09/01/2018 2,018,740
- --------------------------------------------------------------------------------------------------------------------------
700,000 Farmersville Unified School District COP 5.000 08/01/2026 691,600
- --------------------------------------------------------------------------------------------------------------------------
1,625,000 Folsom Special Tax Community Facilities District No. 10 6.300 09/01/2012 1,731,990
- --------------------------------------------------------------------------------------------------------------------------
8,500,000 Folsom Special Tax Community Facilities District No. 10 6.875 09/01/2019 9,233,465
- --------------------------------------------------------------------------------------------------------------------------
10,000 Fontana Redevel. Agency (Jurupa Hills) 5.500 10/01/2027 10,353
- --------------------------------------------------------------------------------------------------------------------------
10,000,000 Foothill Eastern Transportation Corridor Agency
Toll Road 1 5.880 5 01/15/2030 2,514,100
- --------------------------------------------------------------------------------------------------------------------------
5,100,000 Freemont Community Facilities District
(Pacific Commons) 5.375 09/01/2036 5,054,355
- --------------------------------------------------------------------------------------------------------------------------
1,675,000 Hawthorne Community Redevel. Agency Special Tax 7.200 10/01/2025 1,733,139
- --------------------------------------------------------------------------------------------------------------------------
1,180,000 Hawthorne Community Redevel. Agency Special Tax 7.200 10/01/2025 1,220,958
- --------------------------------------------------------------------------------------------------------------------------
1,165,000 Heber Public Utilities District (Heber Meadows) 5.300 09/01/2035 1,166,445
- --------------------------------------------------------------------------------------------------------------------------
45,000 Hemet Community Facilities District 6.400 09/01/2022 47,951
- --------------------------------------------------------------------------------------------------------------------------
1,505,000 Hemet Unified School District 5.250 09/01/2035 1,506,610
- --------------------------------------------------------------------------------------------------------------------------
1,835,000 Hercules Improvement Bond Act 1915 5.100 09/02/2035 1,761,618
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 Hesperia Community Redevel. Agency Tax Allocation 5.000 09/01/2035 3,086,190
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 Huntington Park Public Financing Authority, Series A 2 6.200 10/01/2025 3,094,590
- --------------------------------------------------------------------------------------------------------------------------
7,000,000 Independent Cities Lease Finance Authority (Caritas) 1 5.200 08/15/2045 7,173,880
- --------------------------------------------------------------------------------------------------------------------------
130,000 Independent Cities Lease Finance Authority
(El Granada Mobile Home Park) 6.000 05/15/2034 137,502
- --------------------------------------------------------------------------------------------------------------------------
1,275,000 Indio Community Facilities District (Terra Lago) 5.100 09/01/2030 1,241,659
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Indio Community Facilities District (Terra Lago) 5.150 09/01/2035 976,360
- --------------------------------------------------------------------------------------------------------------------------
1,090,000 Indio Community Facilities District (Terra Lago) 5.150 09/01/2035 1,064,232
- --------------------------------------------------------------------------------------------------------------------------
2,445,000 Indio Community Facilities District Special Tax 5.200 09/01/2027 2,439,548
- --------------------------------------------------------------------------------------------------------------------------
2,215,000 Indio Community Facilities District Special Tax 5.250 09/01/2027 2,220,382
- --------------------------------------------------------------------------------------------------------------------------
2,520,000 Indio Community Facilities District Special Tax 5.250 09/01/2036 2,506,568
- --------------------------------------------------------------------------------------------------------------------------
4,095,000 Indio Community Facilities District Special Tax 5.250 09/01/2036 4,073,174
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Indio Improvement Bond Act of 1915
Assessment District No. 2003-03 6.125 09/02/2029 2,073,180
22 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 2,820,000 Indio Improvement Bond Act of 1915
Assessment District No. 2004-3 5.500% 09/02/2030 $ 2,842,701
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Indio Public Financing Authority 6.100 09/02/2029 2,142,820
- --------------------------------------------------------------------------------------------------------------------------
4,250,000 Indio Redevel. Agency Tax, Series B 6.500 08/15/2034 4,570,833
- --------------------------------------------------------------------------------------------------------------------------
1,540,000 Jurupa Unified School District 5.450 09/01/2035 1,558,834
- --------------------------------------------------------------------------------------------------------------------------
455,000 Kern County Hsg. Authority (Pioneer Pines) 1 6.150 10/20/2043 501,392
- --------------------------------------------------------------------------------------------------------------------------
4,500,000 La Verne COP (Bethren Hillcrest Homes) 1 6.625 02/15/2025 4,928,850
- --------------------------------------------------------------------------------------------------------------------------
1,615,000 Lafayette Redevel. Agency Tax 5.000 08/01/2035 1,649,303
- --------------------------------------------------------------------------------------------------------------------------
1,710,000 Lake Elsinore Public Financing Authority, Series F 7.100 09/01/2020 1,816,396
- --------------------------------------------------------------------------------------------------------------------------
980,000 Lake Elsinore Special Tax 6 5.200 09/01/2026 983,518
- --------------------------------------------------------------------------------------------------------------------------
1,100,000 Lake Elsinore Special Tax 6 5.350 09/01/2036 1,108,602
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Lake Elsinore Special Tax 5.450 09/01/2036 2,015,580
- --------------------------------------------------------------------------------------------------------------------------
690,000 Lake Elsinore Unified School District 5.050 09/01/2035 671,073
- --------------------------------------------------------------------------------------------------------------------------
3,430,000 Lake Elsinore Unified School District 5.350 09/01/2035 3,433,327
- --------------------------------------------------------------------------------------------------------------------------
1,220,000 Lake Elsinore Unified School District Community
Facilities District 5.350 09/01/2035 1,221,183
- --------------------------------------------------------------------------------------------------------------------------
1,240,000 Lake Elsinore Unified School District Community
Facilities District 5.400 09/01/2035 1,241,314
- --------------------------------------------------------------------------------------------------------------------------
1,800,000 Lathrop Financing Authority (Water Supply) 6.000 06/01/2035 1,882,818
- --------------------------------------------------------------------------------------------------------------------------
20,000 Lathrop Improvement Bond (Mossdale Village) 6.125 09/02/2028 20,491
- --------------------------------------------------------------------------------------------------------------------------
3,430,000 Lathrop Improvement Bond Act 1915 5.100 09/02/2035 3,367,643
- --------------------------------------------------------------------------------------------------------------------------
4,500,000 Lathrop Special Tax Community Facilities District No. 03-2 7.000 09/01/2033 4,656,645
- --------------------------------------------------------------------------------------------------------------------------
750,000 Lincoln Special Tax 5.900 09/01/2024 789,480
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Lincoln Special Tax 5.950 09/01/2028 1,059,480
- --------------------------------------------------------------------------------------------------------------------------
1,305,000 Lindsay Redevel. Agency 5.000 08/01/2025 1,336,738
- --------------------------------------------------------------------------------------------------------------------------
2,290,000 Lindsay Redevel. Agency 5.000 08/01/2035 2,319,381
- --------------------------------------------------------------------------------------------------------------------------
25,000 Loma Linda Collateralized Loan (Redlands) 7.375 06/01/2009 25,246
- --------------------------------------------------------------------------------------------------------------------------
25,000 Long Beach Bond Finance Authority
(Aquarium of the South Pacific) 5.000 11/01/2026 25,874
- --------------------------------------------------------------------------------------------------------------------------
7,650,000 Los Altos School District 5.000 08/01/2023 7,785,711
- --------------------------------------------------------------------------------------------------------------------------
3,110,000 Los Angeles Community Facilities District RITES 1,2 7.735 3 09/01/2031 3,132,485
- --------------------------------------------------------------------------------------------------------------------------
1,475,000 Los Angeles Community Redevel. Agency
(Grand Central Square) 1 5.850 12/01/2026 1,475,841
- --------------------------------------------------------------------------------------------------------------------------
9,635,000 Los Angeles Community Redevel. Agency
(Manchester Social Services) 1 5.000 09/01/2037 9,941,875
- --------------------------------------------------------------------------------------------------------------------------
5,400,000 Los Angeles Community Redevel. Agency ROLs 1,2 10.468 3 09/01/2037 6,088,068
- --------------------------------------------------------------------------------------------------------------------------
250,000 Los Angeles County Schools Regionalized
Business Services Corp. 5.125 09/01/2027 250,280
- --------------------------------------------------------------------------------------------------------------------------
2,375,000 Los Angeles Dept. of Water & Power RITES 1,2 8.572 3 07/01/2024 2,564,193
- --------------------------------------------------------------------------------------------------------------------------
200,000 Los Angeles Dept. of Water & Power, Series A 5.125 07/01/2041 205,314
- --------------------------------------------------------------------------------------------------------------------------
350,000 Los Angeles Harbor Dept. 5.375 11/01/2025 357,924
23 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 10,000 Los Angeles Harbor Dept., Series B 5.375% 11/01/2019 $ $10,212
- --------------------------------------------------------------------------------------------------------------------------
5,500,000 Los Angeles Harbor Dept., Series B 1 6.000 08/01/2014 5,626,445
- --------------------------------------------------------------------------------------------------------------------------
5,230,000 Los Angeles Hsg. (Park Plaza) 1 5.500 01/20/2043 5,459,126
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 Los Angeles IDA (Santee Court Parking Facility) 5.000 12/01/2020 1,521,435
- --------------------------------------------------------------------------------------------------------------------------
1,100,000 Los Angeles IDA (Santee Court Parking Facility) 5.000 12/01/2027 1,107,150
- --------------------------------------------------------------------------------------------------------------------------
25,000 Los Angeles Regional Airports Improvement Corp.
(United Airlines) 4 8.800 11/15/2021 22,141
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Los Angeles USD ROLs 1,2 8.126 3 07/01/2015 2,960,025
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Los Angeles USD ROLs 1,2 8.126 3 07/01/2016 2,960,025
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 Los Angeles USD ROLs 2 8.126 3 07/01/2017 1,776,015
- --------------------------------------------------------------------------------------------------------------------------
15,000 Los Gatos Union School District 5.000 08/01/2024 15,795
- --------------------------------------------------------------------------------------------------------------------------
65,000 M-S-R Public Power Agency (San Juan) 6.000 07/01/2022 73,726
- --------------------------------------------------------------------------------------------------------------------------
4,550,000 M-S-R Public Power Agency (San Juan) ROLs 1,2 7.223 3 07/01/2017 4,795,700
- --------------------------------------------------------------------------------------------------------------------------
135,000 Madera County COP (Valley Children's Hospital) 5.750 03/15/2028 136,692
- --------------------------------------------------------------------------------------------------------------------------
50,000 Marina Community Facilities District Special Tax 6.250 09/01/2023 50,880
- --------------------------------------------------------------------------------------------------------------------------
1,375,000 Mendota Joint Powers Financing Authority Wastewater 5.150 07/01/2035 1,352,629
- --------------------------------------------------------------------------------------------------------------------------
915,000 Menifee Union School District 5.200 09/01/2030 906,564
- --------------------------------------------------------------------------------------------------------------------------
500,000 Menifee Union School District 5.250 09/01/2035 493,690
- --------------------------------------------------------------------------------------------------------------------------
1,010,000 Menifee Union School District 6 5.250 09/01/2036 997,072
- --------------------------------------------------------------------------------------------------------------------------
400,000 Menifee Union School District Special Tax 5.200 09/01/2035 391,292
- --------------------------------------------------------------------------------------------------------------------------
690,000 Menifee Union School District Special Tax 5.500 09/01/2034 696,990
- --------------------------------------------------------------------------------------------------------------------------
385,000 Menifee Union School District Special Tax 5.500 09/01/2034 388,900
- --------------------------------------------------------------------------------------------------------------------------
13,000,000 Merced Irrigation District 5.250 09/01/2036 13,756,860
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Merced Special Tax 5.000 09/01/2030 970,360
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Merced Special Tax 5.100 09/01/2035 981,820
- --------------------------------------------------------------------------------------------------------------------------
20,000 Mill Valley Community Facilities District Special Tax
(Library Renovation) 5.800 08/01/2026 20,008
- --------------------------------------------------------------------------------------------------------------------------
1,260,000 Mission Springs Water District 5.150 09/02/2026 1,250,626
- --------------------------------------------------------------------------------------------------------------------------
1,785,000 Mission Springs Water District 5.200 09/02/2032 1,762,884
- --------------------------------------------------------------------------------------------------------------------------
25,000 Mission Viejo Community Devel.
(City Hall Construction/Library) 5.000 05/01/2028 25,630
- --------------------------------------------------------------------------------------------------------------------------
480,000 Modesto Irrigation District COP 5.300 07/01/2022 480,725
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Modesto Irrigation District, Series A 1 6.000 10/01/2015 1,038,360
- --------------------------------------------------------------------------------------------------------------------------
1,165,000 Moreno Valley Unified School District 5.000 09/01/2030 1,130,469
- --------------------------------------------------------------------------------------------------------------------------
1,475,000 Moreno Valley Unified School District 5.150 09/01/2035 1,461,873
- --------------------------------------------------------------------------------------------------------------------------
2,400,000 Moreno Valley Unified School District Community
Facilities District 5.100 09/01/2028 2,371,032
- --------------------------------------------------------------------------------------------------------------------------
875,000 Murrieta Community Facilities District (Murrieta Fields) 5.250 09/01/2035 845,031
- --------------------------------------------------------------------------------------------------------------------------
240,000 Murrieta Community Facilities District Special Tax 5.125 09/01/2035 233,227
24 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 700,000 Murrieta Community Facilities District Special Tax
(Bremerton) 5.625% 09/01/2034 $ $719,068
- --------------------------------------------------------------------------------------------------------------------------
1,810,000 Murrieta Community Facilities District Special Tax
(Creekside Village) 5.200 09/01/2035 1,783,827
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Murrieta Community Facilities District Special Tax
(Murrieta Springs) 5.500 09/01/2034 2,525,575
- --------------------------------------------------------------------------------------------------------------------------
25,000 Murrieta Valley Unified School District Special Tax 5.250 09/01/2037 24,827
- --------------------------------------------------------------------------------------------------------------------------
1,785,000 Murrieta Valley Unified School District Special Tax 6.000 09/01/2035 1,863,808
- --------------------------------------------------------------------------------------------------------------------------
2,250,000 Norco Special Tax 7.000 09/01/2033 2,504,633
- --------------------------------------------------------------------------------------------------------------------------
1,025,000 Northern CA Power Agency (Hydroelectric) 5.125 07/01/2023 1,069,752
- --------------------------------------------------------------------------------------------------------------------------
22,770,000 Northern CA Tobacco Securitization Authority (TASC) 5.500 06/01/2045 22,875,425
- --------------------------------------------------------------------------------------------------------------------------
115,975,000 Northern CA Tobacco Securitization Authority (TASC) 5.900 5 06/01/2045 11,848,006
- --------------------------------------------------------------------------------------------------------------------------
157,335,000 Northern CA Tobacco Securitization Authority (TASC) 6.700 5 06/01/2045 11,856,766
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 Northstar Community Services District 5.550 09/01/2036 3,037,470
- --------------------------------------------------------------------------------------------------------------------------
4,060,000 Orange Unified School District 5.375 09/01/2036 4,023,663
- --------------------------------------------------------------------------------------------------------------------------
30,000 Oxnard School District 5.000 08/01/2031 30,834
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Oxnard Special Tax 5.000 09/01/2035 1,926,680
- --------------------------------------------------------------------------------------------------------------------------
500,000 Palm Springs Improvement Bond Act 1915 5.150 09/02/2030 481,165
- --------------------------------------------------------------------------------------------------------------------------
100,000 Palmdale Community Facilities District Special Tax 5.400 09/01/2035 100,918
- --------------------------------------------------------------------------------------------------------------------------
50,000 Palmdale Multifamily Hsg., Series A 7.375 09/01/2024 50,081
- --------------------------------------------------------------------------------------------------------------------------
865,000 Perris Community Facilities District (May Farms) 5.100 09/01/2030 842,380
- --------------------------------------------------------------------------------------------------------------------------
1,075,000 Perris Community Facilities District (May Farms) 5.150 09/01/2035 1,049,587
- --------------------------------------------------------------------------------------------------------------------------
1,390,000 Perris Community Facilities District Special Tax 5.300 09/01/2035 1,391,724
- --------------------------------------------------------------------------------------------------------------------------
2,115,000 Perris Community Facilities District Special Tax 5.300 09/01/2035 2,131,582
- --------------------------------------------------------------------------------------------------------------------------
2,085,000 Perris Community Facilities District Special Tax
(Amber Oaks) 6.000 09/01/2034 2,204,554
- --------------------------------------------------------------------------------------------------------------------------
500,000 Perris Community Facilities District Special Tax (Avalon) 5.100 09/01/2028 497,255
- --------------------------------------------------------------------------------------------------------------------------
550,000 Perris Community Facilities District Special Tax (Avalon) 5.150 09/01/2032 546,117
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Perris Community Facilities District Special Tax
(Chaparral Ridge) 6.250 09/01/2033 2,685,275
- --------------------------------------------------------------------------------------------------------------------------
1,310,000 Perris Community Facilities District Special Tax, Series A 5.750 09/01/2035 1,358,824
- --------------------------------------------------------------------------------------------------------------------------
3,605,000 Perris Community Facilities District Special Tax, Series B 6.000 09/01/2034 3,811,711
- --------------------------------------------------------------------------------------------------------------------------
1,250,000 Perris Public Financing Authority, Series A 6.250 09/01/2033 1,342,638
- --------------------------------------------------------------------------------------------------------------------------
95,000 Pittsburg Infrastructure Financing Authority, Series A 5.600 09/02/2024 96,741
- --------------------------------------------------------------------------------------------------------------------------
5,000 Placerville Public Financing Authority 2 7.500 09/15/2024 4,791
- --------------------------------------------------------------------------------------------------------------------------
500,000 Pomona (Single Family Mtg.), Series B 7.500 08/01/2023 667,270
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Port Oakland RITES 2 7.702 3 11/01/2015 2,835,525
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Port Oakland RITES 2 7.952 3 11/01/2017 2,869,800
- --------------------------------------------------------------------------------------------------------------------------
2,430,000 Port Oakland RITES 2 8.538 3 11/01/2022 2,740,943
- --------------------------------------------------------------------------------------------------------------------------
5,025,000 Port Oakland RITES 2 8.538 3 11/01/2032 5,343,284
25 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 2,660,000 Port Oakland RITES 2 10.038% 3 11/01/2025 $ 3,122,468
- --------------------------------------------------------------------------------------------------------------------------
25,000 Port of Oakland, Series L 5.000 11/01/2023 25,741
- --------------------------------------------------------------------------------------------------------------------------
85,000 Port of Oakland, Series L 5.000 11/01/2032 86,346
- --------------------------------------------------------------------------------------------------------------------------
750,000 Poway Hsg. (Poinsetta Mobile Home Park) 1 5.000 05/01/2023 756,300
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 Poway Unified School District 5.125 09/01/2036 4,931,350
- --------------------------------------------------------------------------------------------------------------------------
1,055,000 Rancho Cucamonga Community Facilities District
Special Tax 5.125 09/01/2035 1,040,715
- --------------------------------------------------------------------------------------------------------------------------
1,520,000 Rancho Cucamonga Community Facilities District
Special Tax 5.125 09/01/2035 1,499,419
- --------------------------------------------------------------------------------------------------------------------------
35,000 Rancho Mirage Redevel. Agency 5.500 04/01/2029 35,123
- --------------------------------------------------------------------------------------------------------------------------
20,000 Rancho Santa Fe Community Services District Special Tax 6.600 09/01/2023 21,288
- --------------------------------------------------------------------------------------------------------------------------
3,000,000 Redding Electric COP RIBS 1 9.511 3 07/08/2022 4,222,470
- --------------------------------------------------------------------------------------------------------------------------
25,000 Richgrove School District 6.375 07/01/2018 25,141
- --------------------------------------------------------------------------------------------------------------------------
5,000,000 Rio Elementary School District 5.200 09/01/2035 5,000,800
- --------------------------------------------------------------------------------------------------------------------------
100,000 River Islands Public Financing Authority 6.000 09/01/2027 100,371
- --------------------------------------------------------------------------------------------------------------------------
1,030,000 Riverside County Public Financing Authority 5.000 10/01/2037 1,057,182
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Riverside Special Tax Community Facilities
District No. 92-1, Series A 5.300 09/01/2034 2,010,360
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Riverside Unified School District 5.250 09/01/2035 1,001,070
- --------------------------------------------------------------------------------------------------------------------------
1,535,000 Riverside Unified School District 5.250 09/01/2035 1,515,628
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Romoland School District 5.375 09/01/2038 1,975,640
- --------------------------------------------------------------------------------------------------------------------------
15,000 Rosemead Redevel. Agency 5.500 10/01/2018 15,011
- --------------------------------------------------------------------------------------------------------------------------
10,000 Sacramento County Airport System, Series A 5.900 07/01/2024 10,295
- --------------------------------------------------------------------------------------------------------------------------
35,000 Sacramento County Airport System, Series B 5.750 07/01/2024 35,068
- --------------------------------------------------------------------------------------------------------------------------
5,000 Sacramento Municipal Utility District 5.000 08/15/2028 5,157
- --------------------------------------------------------------------------------------------------------------------------
125,000 San Bernardino County COP (Medical Center Financing) 5.500 08/01/2024 126,265
- --------------------------------------------------------------------------------------------------------------------------
150,000 San Bernardino Joint Powers Financing Authority
(California Dept. of Transportation Lease) 5.500 12/01/2020 153,267
- --------------------------------------------------------------------------------------------------------------------------
1,850,000 San Bernardino Joint Powers Financing Authority
(Tax Allocation) 2 6.625 04/01/2026 1,996,317
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 San Bernardino Redevel. (San Sevaine) 5.000 09/01/2035 1,019,030
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 San Diego County COP 5.700 02/01/2028 978,300
- --------------------------------------------------------------------------------------------------------------------------
3,750,000 San Diego County COP
(Developmental Service Foundation) 5.500 09/01/2027 3,769,313
- --------------------------------------------------------------------------------------------------------------------------
1,775,000 San Diego County Redevel. Agency (Gillespie Field) 5.400 12/01/2025 1,760,995
- --------------------------------------------------------------------------------------------------------------------------
6,645,000 San Diego County Redevel. Agency (Gillespie Field) 5.750 12/01/2032 6,621,875
- --------------------------------------------------------------------------------------------------------------------------
35,000 San Diego Hsg. Authority (Park Crest Properties) 5.450 08/20/2040 35,793
- --------------------------------------------------------------------------------------------------------------------------
465,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 1 5.900 06/01/2018 468,320
- --------------------------------------------------------------------------------------------------------------------------
50,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900 06/01/2018 50,154
26 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 40,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 5.900% 09/01/2018 $ 40,123
- --------------------------------------------------------------------------------------------------------------------------
325,000 San Diego Industrial Devel.
(San Diego Gas & Electric Company) 1 5.900 09/01/2018 328,851
- --------------------------------------------------------------------------------------------------------------------------
15,000 San Diego Public Facilities Financing Authority 5.000 05/15/2029 15,404
- --------------------------------------------------------------------------------------------------------------------------
35,000 San Diego Public Facilities Financing Authority, Series B 5.000 05/15/2029 35,943
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 San Diego Sewer 5.000 05/15/2023 1,001,290
- --------------------------------------------------------------------------------------------------------------------------
1,540,000 San Diego Sewer, Series A 5.000 05/15/2023 1,540,431
- --------------------------------------------------------------------------------------------------------------------------
2,730,000 San Diego Sewer, Series A 5.250 05/15/2020 2,734,586
- --------------------------------------------------------------------------------------------------------------------------
1,880,000 San Diego Unified School District GO RITES 2 8.607 3 07/01/2027 2,440,278
- --------------------------------------------------------------------------------------------------------------------------
2,445,000 San Diego Unified School District GO RITES 1,2 9.611 3 07/01/2023 3,464,418
- --------------------------------------------------------------------------------------------------------------------------
15,000 San Francisco Bay Area Rapid Transit District 5.000 07/01/2028 15,520
- --------------------------------------------------------------------------------------------------------------------------
500,000 San Francisco City & County (Golden Gate Park) 5.250 06/15/2017 510,770
- --------------------------------------------------------------------------------------------------------------------------
15,000 San Francisco City & County Airports Commission 5.000 05/01/2023 15,683
- --------------------------------------------------------------------------------------------------------------------------
90,000 San Francisco City & County Airports Commission 5.000 05/01/2029 91,005
- --------------------------------------------------------------------------------------------------------------------------
40,000 San Francisco City & County Airports Commission 5.000 05/01/2030 40,503
- --------------------------------------------------------------------------------------------------------------------------
15,000 San Francisco City & County Airports Commission 5.500 05/01/2026 15,214
- --------------------------------------------------------------------------------------------------------------------------
10,030,000 San Francisco City & County Airports Commission 5.500 05/01/2026 10,172,928
- --------------------------------------------------------------------------------------------------------------------------
50,000 San Francisco City & County Airports Commission 5.625 05/01/2021 50,735
- --------------------------------------------------------------------------------------------------------------------------
4,000,000 San Francisco City & County Airports Commission 1 5.625 05/01/2021 4,058,760
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 San Francisco City & County Airports Commission 5.700 05/01/2014 1,015,310
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.150 08/01/2035 1,475,640
- --------------------------------------------------------------------------------------------------------------------------
435,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.630 5 08/01/2020 192,153
- --------------------------------------------------------------------------------------------------------------------------
590,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.750 5 08/01/2022 229,510
- --------------------------------------------------------------------------------------------------------------------------
615,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.800 5 08/01/2023 224,395
- --------------------------------------------------------------------------------------------------------------------------
540,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.850 5 08/01/2024 184,999
- --------------------------------------------------------------------------------------------------------------------------
420,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.900 5 08/01/2025 135,278
- --------------------------------------------------------------------------------------------------------------------------
2,745,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.900 5 08/01/2030 654,984
- --------------------------------------------------------------------------------------------------------------------------
6,035,000 San Francisco City & County Redevel. Agency
(Mission Bay South) 5.960 5 08/01/2034 1,130,235
- --------------------------------------------------------------------------------------------------------------------------
450,000 San Francisco City & County Redevel. Financing Authority,
Series A 5.000 08/01/2017 450,572
- --------------------------------------------------------------------------------------------------------------------------
6,490,000 San Jacinto Financing Authority, Tranche A 6.600 09/01/2033 6,254,608
- --------------------------------------------------------------------------------------------------------------------------
6,345,000 San Jacinto Financing Authority, Tranche B 6.600 09/01/2033 5,983,272
- --------------------------------------------------------------------------------------------------------------------------
6,530,000 San Jacinto Financing Authority, Tranche C 6.600 09/01/2033 5,682,733
27 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 25,000 San Jose Redevel. Agency 5.000% 08/01/2032 $ 25,559
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 San Leandro Community Facilities
District No. 1 Special Tax 6.400 09/01/2019 1,605,390
- --------------------------------------------------------------------------------------------------------------------------
2,125,000 San Marcos Public Facilities Authority RITES 2 8.735 3 08/01/2034 2,463,768
- --------------------------------------------------------------------------------------------------------------------------
2,150,000 San Marcos Public Facilities Authority RITES 2 8.735 3 08/01/2035 2,422,405
- --------------------------------------------------------------------------------------------------------------------------
6,000,000 San Marcos Special Tax 5.950 09/01/2035 6,252,960
- --------------------------------------------------------------------------------------------------------------------------
25,000 San Mateo Sewer, Series A 5.000 08/01/2025 25,637
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Santa Ana Financing Authority (Mainplace) 5.600 09/01/2019 1,074,460
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Santa Ana Unified School District Special Tax 5.100 09/01/2035 981,820
- --------------------------------------------------------------------------------------------------------------------------
300,000 Santa Monica Community College District 1 5.750 07/01/2020 306,597
- --------------------------------------------------------------------------------------------------------------------------
3,895,000 Santaluz Special Tax Community Facilities District No. 2 6.375 09/01/2030 3,944,895
- --------------------------------------------------------------------------------------------------------------------------
20,000 Sonoma County Community Redevel. Agency (Roseland) 7.900 08/01/2013 20,397
- --------------------------------------------------------------------------------------------------------------------------
1,585,000 South El Monte Improvement District (Merged Aera) 5.000 08/01/2030 1,612,769
- --------------------------------------------------------------------------------------------------------------------------
5,245,000 South El Monte Improvement District (Merged Aera) 5.000 08/01/2035 5,322,993
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 South Tahoe Joint Powers Financing Authority 5.000 10/01/2035 2,072,020
- --------------------------------------------------------------------------------------------------------------------------
2,580,000 Southern CA Logistics Airport Authority RITES 2 8.700 3 12/01/2035 2,712,354
- --------------------------------------------------------------------------------------------------------------------------
150,000 Southern CA Public Power Authority RIBS 1 8.167 3 07/01/2012 150,765
- --------------------------------------------------------------------------------------------------------------------------
1,270,000 Southern CA Tobacco Securitization Authority (TASC) 5.500 06/01/2036 1,296,759
- --------------------------------------------------------------------------------------------------------------------------
4,175,000 Southern CA Tobacco Securitization Authority (TASC) 6.000 06/01/2043 4,310,896
- --------------------------------------------------------------------------------------------------------------------------
4,340,000 Stanislaus County Redevel. (Keyes Storm Drain) 5.375 08/01/2036 4,333,533
- --------------------------------------------------------------------------------------------------------------------------
135,000 Stockton Public Financing Authority, Series A 5.875 09/02/2016 135,471
- --------------------------------------------------------------------------------------------------------------------------
1,500,000 Tehachapi Redevel. Agency Tax 5.250 12/01/2035 1,566,195
- --------------------------------------------------------------------------------------------------------------------------
2,250,000 Tejon Ranch Public Facilities Finance Authority
Special Tax (Community Facilities District No. 1) 7.200 09/01/2030 2,319,233
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 Temecula Valley Unified School District 5.500 09/01/2035 2,032,720
- --------------------------------------------------------------------------------------------------------------------------
4,560,000 Trinity County COP 2 8.500 01/15/2026 4,549,694
- --------------------------------------------------------------------------------------------------------------------------
60,000 Turlock Public Financing Authority 5.450 09/01/2024 60,875
- --------------------------------------------------------------------------------------------------------------------------
1,600,000 Tustin Community Facilities District Special Tax
(John Lang Homes) 5.500 09/01/2034 1,623,408
- --------------------------------------------------------------------------------------------------------------------------
100,000 Upland Community Facilities District Special Tax 5.900 09/01/2024 104,686
- --------------------------------------------------------------------------------------------------------------------------
2,650,000 Upland Community Facilities District Special Tax
(San Antonio) 6.100 09/01/2034 2,803,833
- --------------------------------------------------------------------------------------------------------------------------
250,000 Vacaville Public Financing Authority 5.400 09/01/2022 254,425
- --------------------------------------------------------------------------------------------------------------------------
2,200,000 Val Verde Unified School District 5.000 01/01/2030 2,280,806
- --------------------------------------------------------------------------------------------------------------------------
2,500,000 Val Verde Unified School District 1 5.000 01/01/2035 2,580,675
- --------------------------------------------------------------------------------------------------------------------------
415,000 Val Verde Unified School District Special Tax 5.450 09/01/2036 419,063
- --------------------------------------------------------------------------------------------------------------------------
850,000 Vallejo COP (Marine World Foundation) 2 7.000 02/01/2017 884,017
- --------------------------------------------------------------------------------------------------------------------------
1,000,000 Vallejo COP (Marine World Foundation) 2 7.200 02/01/2026 1,039,710
- --------------------------------------------------------------------------------------------------------------------------
30,000 Vallejo Public Financing Authority COP 5.250 07/15/2029 31,690
- --------------------------------------------------------------------------------------------------------------------------
1,060,000 Valley Sanitation District 5.000 09/02/2025 1,030,924
28 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PRINCIPAL VALUE
AMOUNT COUPON MATURITY SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
CALIFORNIA Continued
$ 1,375,000 Valley Sanitation District 5.200% 09/02/2030 $ 1,362,309
- ---------------------------------------------------------------------------------------------------------------------------
1,160,000 Victor Valley Union High School District 5.100 09/01/2035 1,138,911
- ---------------------------------------------------------------------------------------------------------------------------
500,000 Victorville Special Tax 5.050 09/01/2030 482,710
- ---------------------------------------------------------------------------------------------------------------------------
450,000 Victorville Special Tax 5.125 09/01/2035 437,301
- ---------------------------------------------------------------------------------------------------------------------------
125,000 West Patterson Financing Authority 6.100 09/01/2032 131,329
- ---------------------------------------------------------------------------------------------------------------------------
4,155,000 Western Hills Water District Special Tax
(Diablo Grande Community Facilities) 6.125 09/01/2031 4,287,545
- ---------------------------------------------------------------------------------------------------------------------------
805,000 Western Hills Water District Special Tax
(Diablo Grande Community Facilities) 6.875 09/01/2031 851,255
- ---------------------------------------------------------------------------------------------------------------------------
1,570,000 Westlands Water District RITES 1,2 8.722 3 09/01/2030 1,804,150
- ---------------------------------------------------------------------------------------------------------------------------
2,645,000 Westlands Water District RITES 1,2 8.722 3 09/01/2035 2,991,654
- ---------------------------------------------------------------------------------------------------------------------------
4,200,000 Westside Union School District 5.250 09/01/2036 4,146,240
- ---------------------------------------------------------------------------------------------------------------------------
2,635,000 Yuba County Community Facilities District Special Tax 5.125 09/01/2035 2,599,322
- ---------------------------------------------------------------------------------------------------------------------------
15,000 Yucaipa Redevel. Agency (Eldorado Palms Mobile Home) 6.000 05/01/2030 15,442
---------------
983,757,468
- ---------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--11.0%
3,250,000 Northern Mariana Islands Ports Authority, Series A 5.500 03/15/2031 3,253,803
- ---------------------------------------------------------------------------------------------------------------------------
50,000,000 Puerto Rico Children's Trust Fund (TASC) 6.290 5 05/15/2050 3,168,000
- ---------------------------------------------------------------------------------------------------------------------------
2,245,000 Puerto Rico HBFA 1 6.250 04/01/2029 2,277,553
- ---------------------------------------------------------------------------------------------------------------------------
740,000 Puerto Rico HFC (Homeowner Mtg.) 5.200 12/01/2032 760,513
- ---------------------------------------------------------------------------------------------------------------------------
4,000,000 Puerto Rico Highway & Transportation Authority, Series G 1 5.000 07/01/2033 4,054,240
- ---------------------------------------------------------------------------------------------------------------------------
2,000,000 Puerto Rico Highway & Transportation Authority, Series K 5.000 07/01/2030 2,037,520
- ---------------------------------------------------------------------------------------------------------------------------
5,000,000 Puerto Rico Highway & Transportation Authority, Series K 5.000 07/01/2035 5,082,400
- ---------------------------------------------------------------------------------------------------------------------------
13,000,000 Puerto Rico Highway & Transportation Authority, Series K 1 5.000 07/01/2045 13,155,220
- ---------------------------------------------------------------------------------------------------------------------------
16,195,000 Puerto Rico Infrastructure 5.000 07/01/2041 16,388,351
- ---------------------------------------------------------------------------------------------------------------------------
5,510,000 Puerto Rico ITEMECF (Cogeneration Facilities) 1 6.625 06/01/2026 5,998,847
- ---------------------------------------------------------------------------------------------------------------------------
2,710,000 Puerto Rico ITEMECF (Mennonite General Hospital) 1 6.500 07/01/2012 2,727,805
- ---------------------------------------------------------------------------------------------------------------------------
24,400,000 Puerto Rico Port Authority (American Airlines), Series A 1 6.250 06/01/2026 19,126,428
- ---------------------------------------------------------------------------------------------------------------------------
27,000,000 V.I. Public Finance Authority (Hovensa Coker) 6.500 07/01/2021 30,554,550
- ---------------------------------------------------------------------------------------------------------------------------
4,515,000 V.I. Public Finance Authority, Series A 1 6.375 10/01/2019 5,027,453
- ---------------------------------------------------------------------------------------------------------------------------
5,150,000 V.I. Public Finance Authority, Series E 1 6.000 10/01/2022 5,408,015
---------------
119,020,698
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,062,634,881)--101.8% 1,102,778,166
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(1.8) (19,917,070)
---------------
NET ASSETS--100.0% $1,082,861,096
===============
29 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Security has been segregated for collateral to cover borrowings. See Note 6
of Notes to Financial Statements.
2. Illiquid security. The aggregate value of illiquid securities as of January
31, 2006 was $82,300,371, which represents 7.60% of the Fund's net assets. See
Note 5 of Notes to Financial Statements.
3. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.
4. Issue is in default. Non-income producing. See Note 1 of Notes to Financial
Statements.
5. Zero coupon bond reflects effective yield on the date of purchase.
6. When-issued security or forward commitment to be delivered and settled after
January 31, 2006. See Note 1 of Notes to Financial Statements.
TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:
ABAG Association of Bay Area Governments
CDA Communities Development Authority
CDC Community Development Corp.
COP Certificates of Participation
GO General Obligation
HBFA Housing Bank and Finance Agency
HFA Housing Finance Agency/Authority
HFC Housing Finance Corp.
IDA Industrial Development Agency
INFLOS Inverse Floating Rate Securities
ITEMECF Industrial, Tourist, Educational, Medical and
Environmental Community Facilities
M-S-R Modesto Irrigation District of the City of
Santa Clara and the City of Redding
RIBS Residual Interest Bonds
RITES Residual Interest Tax Exempt Security
ROLs Residual Option Longs
TASC Tobacco Settlement Asset-Backed Bonds
USD Unified School District
V.I. United States Virgin Islands
- --------------------------------------------------------------------------------
SUMMARY OF RATINGS JANUARY 31, 2006
- --------------------------------------------------------------------------------
Distribution of investments by ratings category, as a percentage of total
investments at value, is as follows:
RATINGS PERCENT
- --------------------------------------------------------------------------------
AAA 15.8%
AA 6.0
A 4.3
BBB 53.0
BB 2.4
B 0.8
CCC 1.7
Not Rated 16.0
------
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.
30 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
INDUSTRY CONCENTRATIONS January 31, 2006
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:
INDUSTRY VALUE PERCENT
- --------------------------------------------------------------------------------
Tobacco Settlement Payments $ 274,593,889 24.9%
Special Tax 251,136,899 22.8
Special Assessment 142,659,663 12.9
Municipal Leases 58,255,363 5.3
General Obligation 51,709,638 4.7
Marine/Aviation Facilities 44,490,346 4.0
Pollution Control 30,616,652 2.8
Multifamily Housing 27,165,309 2.5
Highways/Railways 26,843,480 2.4
Water Utilities 24,577,909 2.2
Education 24,569,479 2.2
Resource Recovery 19,451,955 1.8
Airlines 19,372,934 1.8
Higher Education 18,888,185 1.7
Hotels, Restaurants & Leisure 18,589,630 1.7
Hospital/Health Care 17,710,993 1.6
Electric Utilities 13,041,402 1.2
Sales Tax Revenue 10,450,988 1.0
Adult Living Facilities 10,007,249 0.9
Sewer Utilities 5,353,291 0.5
Single Family Housing 4,648,621 0.4
Manufacturing, Durable Goods 3,530,902 0.3
Parking Fee Revenue 2,628,585 0.2
Gas Utilities 2,009,036 0.2
Not-for-profit Organization 475,768 0.0
----------------------------------
Total $1,102,778,166 100.0%
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
JANUARY 31, 2006
- -------------------------------------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------------------------------------
Investments, at value (cost $1,062,634,881)--see accompanying statement of investments $1,102,778,166
- -------------------------------------------------------------------------------------------------------
Cash 873,717
- -------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 16,369,289
Shares of beneficial interest sold 12,007,604
Investments sold 245,000
Other 30,356
--------------
Total assets 1,132,304,132
- -------------------------------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Payable on borrowings (See Note 6) 43,700,000
Investments purchased on a when-issued or forward commitment basis 3,085,374
Dividends 1,183,451
Shares of beneficial interest redeemed 828,566
Distribution and service plan fees 214,910
Interest expense 188,426
Trustees' compensation 107,652
Transfer and shareholder servicing agent fees 28,925
Shareholder communications 14,446
Other 91,286
--------------
Total liabilities 49,443,036
- -------------------------------------------------------------------------------------------------------
NET ASSETS $1,082,861,096
==============
- -------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 94,834
- -------------------------------------------------------------------------------------------------------
Additional paid-in capital 1,035,553,023
- -------------------------------------------------------------------------------------------------------
Accumulated net investment income 2,738,222
- -------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments 4,331,732
- -------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 40,143,285
--------------
NET ASSETS $1,082,861,096
==============
32 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ----------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $880,060,946
and 77,057,501 shares of beneficial interest outstanding) $ 11.42
Maximum offering price per share (net asset value plus sales charge of 4.75%
of offering price) $ 11.99
- ----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $62,078,252 and 5,431,653 shares
of beneficial interest outstanding) $ 11.43
- ----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $140,721,898 and 12,344,984 shares
of beneficial interest outstanding) $ 11.40
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2006
- --------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------------------------------
Interest $ 27,824,803
- --------------------------------------------------------------------------------------------------------
Other income 1,431
---------------
Total investment income 27,826,234
- --------------------------------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------------------------------
Management fees 2,309,987
- --------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 918,432
Class B 302,834
Class C 562,597
- --------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 127,501
Class B 16,875
Class C 25,189
- --------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 15,970
Class B 5,703
Class C 2,762
- --------------------------------------------------------------------------------------------------------
Interest expense 802,205
- --------------------------------------------------------------------------------------------------------
Trustees' compensation 10,195
- --------------------------------------------------------------------------------------------------------
Custodian fees and expenses 8,683
- --------------------------------------------------------------------------------------------------------
Other 135,246
--------------
Total expenses 5,244,179
- --------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 22,582,055
- --------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------------------------------
Net realized gain on investments 7,505,011
- --------------------------------------------------------------------------------------------------------
Net change in unrealized apepreciation on investments (13,258,059)
- --------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 16,829,007
===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2006 JULY 31,
(UNAUDITED) 2005
- --------------------------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------------------------
Net investment income $ 22,582,055 $ 31,792,690
- --------------------------------------------------------------------------------------------------------------
Net realized gain 7,505,011 1,502,281
- --------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (13,258,059) 61,275,811
-----------------------------------
Net increase in net assets resulting from operations 16,829,007 94,570,782
- --------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (20,801,355) (26,908,765)
Class B (1,415,480) (3,003,604)
Class C (2,639,435) (2,082,510)
- --------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTION
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A 264,843,297 168,989,275
Class B 3,083,683 (13,357,770)
Class C 62,079,479 44,091,249
- --------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------
Total increase 321,979,196 262,298,657
- --------------------------------------------------------------------------------------------------------------
Beginning of period 760,881,900 498,583,243
-----------------------------------
End of period (including accumulated net investment income
of $2,738,222 and $5,012,437, respectively) $ 1,082,861,096 $ 760,881,900
===================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2006 JULY 31,
CLASS A (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.52 $ 10.31 $ 9.97 $ 10.60 $ 10.49 $ 10.11
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .29 1 .62 1 .68 .63 .53 .53
Net realized and unrealized gain (loss) (.08) 1.21 .27 (.66) .10 .38
----------------------------------------------------------------------------------------
Total from investment operations .21 1.83 .95 (.03) .63 .91
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.31) (.62) (.61) (.60) (.52) (.53)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.42 $ 11.52 $ 10.31 $ 9.97 $ 10.60 $ 10.49
========================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 1.90% 18.20% 9.54% (0.57)% 6.20% 9.17%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 880,061 $ 621,736 $ 401,491 $ 385,141 $ 409,689 $ 387,388
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 757,473 $ 477,934 $ 400,452 $ 410,237 $ 398,651 $ 344,808
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.96% 5.59% 6.52% 5.88% 5.09% 5.08%
Total expenses 0.98% 0.92% 1.00% 0.96% 0.86% 4 0.88%
Expenses after payments and waivers and
reduction to custodian expenses 0.98% 0.92% 0.97% 0.96% 0.86% 0.87% 4
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 15% 26% 63% 27% 20%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2006 JULY 31,
CLASS B (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.53 $ 10.31 $ 9.97 $ 10.61 $ 10.50 $ 10.11
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .24 1 .54 1 .64 .55 .45 .45
Net realized and unrealized gain (loss) (.07) 1.22 .22 (.68) .10 .39
----------------------------------------------------------------------------------------
Total from investment operations .17 1.76 .86 (.13) .55 .84
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.27) (.54) (.52) (.51) (.44) (.45)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.43 $ 11.53 $ 10.31 $ 9.97 $ 10.61 $ 10.50
========================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 1.49% 17.40% 8.70% (1.42)% 5.39% 8.46%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 62,078 $ 59,530 $ 65,991 $ 101,079 $ 128,857 $ 137,307
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 60,244 $ 61,244 $ 84,482 $ 118,611 $ 132,685 $ 126,060
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.20% 4.90% 5.76% 5.09% 4.32% 4.33%
Total expenses 1.77% 1.69% 1.77% 1.73% 1.62% 4 1.63%
Expenses after payments and waivers and
reduction to custodian expenses 1.77% 1.69% 1.74% 1.73% 1.62% 1.62% 4
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 15% 26% 63% 27% 20%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2006 JULY 31,
CLASS C (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.50 $ 10.29 $ 9.95 $ 10.58 $ 10.48 $ 10.09
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .24 1 .52 1 .60 .54 .46 .45
Net realized and unrealized gain (loss) (.07) 1.23 .26 (.66) .08 .39
----------------------------------------------------------------------------------------
Total from investment operations .17 1.75 .86 (.12) .54 .84
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.27) (.54) (.52) (.51) (.44) (.45)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.40 $ 11.50 $ 10.29 $ 9.95 $ 10.58 $ 10.48
========================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 1.51% 17.33% 8.71% (1.33)% 5.31% 8.48%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 140,722 $ 79,616 $ 31,102 $ 27,898 $ 24,936 $ 18,105
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 111,965 $ 43,444 $ 30,371 $ 27,011 $ 21,775 $ 14,489
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 4.17% 4.73% 5.74% 5.12% 4.33% 4.32%
Total expenses 1.74% 1.69% 1.78% 1.73% 1.62% 4 1.63%
Expenses after payments and waivers and
reduction to custodian expenses 1.74% 1.69% 1.75% 1.73% 1.62% 1.62% 4
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 15% 26% 63% 27% 20%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Excludes interest expense.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer California Municipal Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The Fund's investment objective is to seek as
high a level of current interest income exempt from federal and California
income taxes for individual investors as is consistent with preservation of
capital. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ due
to each class having its own expenses, such as transfer and shareholder
servicing agent fees and shareholder communications, directly attributable to
that class. Class A, B and C have separate distribution and/or service plans.
Class B shares will automatically convert to Class A shares six years after the
date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities 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, as 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 and domestic securities whose
39 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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).
- --------------------------------------------------------------------------------
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 not invest more than 20% of its total assets in inverse floaters.
Inverse floaters amount to $73,649,018 as of January 31, 2006, which represents
6.50% of the Fund's total assets.
- --------------------------------------------------------------------------------
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment can take place up to ten days or more after the trade date.
Normally the settlement date occurs within six months after the trade date;
however, the Fund may, from time to time, purchase securities whose settlement
date extends six months or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. The purchase of securities on a when-issued
basis or forward commitment may increase the volatility of the Fund's net asset
value to the extent the Fund executes such transactions while remaining
substantially fully invested. The Fund may also sell securities that it
purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of January 31, 2006, the Fund had purchased $3,085,374
of securities issued on a when-issued basis or forward commitment.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed-income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default. As of January 31, 2006, securities with an
aggregate market value of $246,506, representing 0.02% 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.
40 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund.
As of January 31, 2006, it is estimated that the Fund will utilize
$3,173,279 of capital loss carryforward to offset realized capital gains. During
the year ended July 31, 2005, the Fund utilized $1,502,281 of capital loss
carryforward to offset capital gains realized in that fiscal year.
As of July 31, 2005, the Fund had available for federal income tax purposes an
unused capital loss carryforward as follows:
EXPIRING
-------------------------------
2009 $3,173,279
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the six months ended
January 31, 2006, the Fund's projected benefit obligations were decreased by
$211 and payments of $8,353 were made to retired trustees, resulting in an
accumulated liability of $82,572 as of January 31, 2006.
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
41 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
will not materially affect the Fund's assets, liabilities or net investment
income per share. Amounts will be deferred until distributed in accordance to
the Plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are declared
daily and paid monthly. Capital gain distributions, if any, are declared and
paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts to the extent they are not
offset by positive cash balances maintained by the Fund 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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
- --------------------------------------------------------------------------------
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.
42 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED JANUARY 31, 2006 YEAR ENDED JULY 31, 2005
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------
CLASS A
Sold 26,600,318 $ 304,726,068 19,938,576 $ 223,516,947
Dividends and/or
distributions reinvested 1,029,449 11,786,316 1,431,372 15,844,672
Redeemed (4,522,672) (51,669,087) (6,371,483) (70,372,344)
------------------------------------------------------------
Net increase 23,107,095 $ 264,843,297 14,998,465 $ 168,989,275
============================================================
- -------------------------------------------------------------------------------------------
CLASS B
Sold 930,579 $ 10,663,999 1,070,121 $ 11,925,943
Dividends and/or
distributions reinvested 72,461 830,569 164,749 1,816,688
Redeemed (733,482) (8,410,885) (2,471,135) (27,100,401)
------------------------------------------------------------
Net increase (decrease) 269,558 $ 3,083,683 (1,236,265) $ (13,357,770)
============================================================
- --------------------------------------------------------------------------------------------
CLASS C
Sold 6,324,370 $ 72,360,431 4,514,407 $ 50,858,939
Dividends and/or
distributions reinvested 121,732 1,390,879 106,662 1,181,896
Redeemed (1,022,521) (11,671,831) (722,327) (7,949,586)
------------------------------------------------------------
Net increase 5,423,581 $ 62,079,479 3,898,742 $ 44,091,249
============================================================
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended January 31, 2006, were as
follows:
PURCHASES SALES
- --------------------------------------------------------------------------------
Investment securities $315,056,406 $192,034,946
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.60% of the first $200 million of average annual net assets,
0.55% of the next $100 million, 0.50% of the next $200 million, 0.45% of the
next $250 million, 0.40% of the next $250 million, and 0.35% of average annual
net assets over $1 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the six months ended January 31, 2006, the Fund paid
$163,138 to OFS for services to the Fund.
43 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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
periodically 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 periodically for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
years. Fees incurred by the Fund under the Plan are detailed in the Statement of
Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% on Class B and Class C
shares. The Distributor also receives a service fee of up to 0.25% under each
plan. If either the Class B or Class C plan is terminated by the Fund or by the
shareholders of a class, the Board of Trustees and its independent trustees must
determine whether the Distributor shall be entitled to payment from the Fund of
all or a portion of the service fee and/or asset-based sales charge in respect
to shares sold prior to the effective date of such termination. The
Distributor's aggregate uncompensated expenses under the plan at January 31,
2006 for Class B and Class C shares were $2,396,192 and $2,031,946,
respectively. Fees incurred by the Fund under the plans are detailed in the
Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------
January 31, 2006 $585,366 $-- $43,111 $48,692
44 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. The Manager has voluntarily undertaken
to limit its management fees not to exceed 0.55% of average annual net assets
for each class of shares. This voluntary undertaking is expected to remain in
effect indefinitely, however, it may be amended or withdrawn by the Manager at
any time without notice to shareholders.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class. This
undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
5. ILLIQUID SECURITIES
As of January 31, 2006, 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.
The Fund has 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 (4.4016% as of January 31, 2006). The Fund pays
additional fees of 0.30% per annum on its outstanding borrowings to manage and
administer the facility and is allocated its pro-rata share of a 0.13% per annum
commitment fee for a liquidity backstop facility with respect to the $800
million facility size.
For the six months ended January 31, 2006, the average daily loan balance
was $39,802,717 at an average daily interest rate of 3.911%. The Fund had
borrowings outstanding of $43,700,000 at January 31, 2006 at an interest rate of
4.4016%. The Fund had gross borrowings and gross loan repayments of $263,200,000
and $287,100,000, respectively, during the six months ended January 31, 2006.
The maximum amount of borrowings outstanding at any month-end during the six
months ended January 31, 2006 was $79,400,000. The Fund paid $72,866 in fees and
$691,321 in interest during the six months ended January 31, 2006.
45 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. LITIGATION
A complaint was filed as a putative class action against the Manager and OFS
(and other defendants) in the U.S. District Court for the Southern District of
New York on January 10, 2005 and was amended on March 4, 2005. Seven of the
eight counts in the complaint, including claims against certain of the
Oppenheimer funds including the Fund, as nomi-nal defendants, and against
certain present and former Directors, Trustees and officers of the funds, and
the Distributor, as defendants, were dismissed with prejudice, under a court
order dated March 10, 2006, in response to a motion to dismiss the suit that had
been filed by the defendants. The remaining count against the Adviser Defendants
alleges, among other things, that the defendants charged excessive fees in
violation of section 36(b) of the Investment Company Act of 1940. The plaintiffs
seek unspecified damages, an accounting of all fees paid, and an award of
attorneys' fees and litigation expenses.
The Adviser Defendants believe that the claims asserted in the remaining
count under this lawsuit are without merit, and intend to defend the suit
vigorously and contest any claimed liability. They 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.
46 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
REPORT OF SHAREHOLDER MEETING Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
On August 17, 2005, a shareholder meeting of the Oppenheimer California
Municipal Fund was held at which the eleven Trustees identified below were
elected (Proposal No. 1). The meeting on August 17, 2005 was adjourned until
September 16, 2005 for Proposal 2. At the meeting on September 16, 2005, 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 32,468,283.717 869,637.536 33,337,921.253
Robert G. Galli 32,498,471.754 839,449.499 33,337,921.253
Phillip A. Griffiths 32,549,313.319 788,607.934 33,337,921.253
Mary F. Miller 32,527,571.494 810,349.759 33,337,921.253
Joel W. Motley 32,547,370.537 790,550.716 33,337,921.253
John V. Murphy 32,546,788.308 791,132.945 33,337,921.253
Kenneth A. Randall 32,549,257.684 788,663.569 33,337,921.253
Russell S. Reynolds, Jr. 32,543,784.227 794,137.026 33,337,921.253
Joseph M. Wikler 32,527,254.441 810,666.812 33,337,921.253
Peter I. Wold 32,476,635.093 861,286.160 33,337,921.253
Clayton K. Yeutter 32,494,629.735 843,291.518 33,337,921.253
- --------------------------------------------------------------------------------
PROPOSAL NO. 2
FOR AGAINST ABSTAIN BROKER NON-VOTE TOTAL
- ---------------------------------------------------------------------------------------------
2D: Proposal to eliminate the policy on Futures
20,542,275.640 878,878.348 1,452,423.157 7,310,066.000 30,183,643.145
2G: Proposal to change the policy on Investing in Other Investment Companies
20,378,802.827 1,013,090.435 1,481,683.883 7,310,066.000 30,183,643.145
2L: Proposal to change the policy on Senior Securities
20,788,124.238 679,864.026 1,405,588.881 7,310,066.000 30,183,643.145
2M: Proposal to change the policy on Underwriting
20,678,509.653 717,588.193 1,477,479.299 7,310,066.000 30,183,643.145
47 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
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 CALIFORNIA MUNICIPAL FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Trustees (the "Board"), including a majority of the
independent Trustees, is required to determine whether to renew the Fund's
investment advisory agreement (the "Agreement"). The Investment Company Act of
1940, as amended, requires that the Board request and evaluate, and that the
Manager provide, such information as may be reasonably necessary to evaluate the
terms of the Agreement. The Board employs an independent consultant to prepare a
report that provides information, including comparative information that the
Board requests for that purpose. In addition, the Board receives information
throughout the year regarding Fund services, fees, expenses and performance.
The Manager and the independent consultant provided information to the
Board on the following factors: (i) the nature, quality and extent of the
Manager's services, (ii) the investment performance of the Fund and the Manager,
(iii) the fees and expenses of the Fund, including comparative expense
information, (iv) the profitability of the Manager and its affiliates, including
an analysis of the cost of providing services by the Manager and its affiliates,
(v) the extent to which economies of scale are realized as the Fund grows and
whether fee levels reflect these economies of scale for Fund investors and (vi)
other benefits to the Manager from its relationship with the Fund. The Board was
aware that there are alternatives to retaining the Manager.
NATURE AND EXTENT OF SERVICES. The Board considered information on the
nature and extent of the services provided to the Fund and information regarding
the Manager's key personnel that provide such services. The Manager's duties
include providing the Fund with the services of the portfolio managers and the
Manager's investment team, who provide research, analysis and other advisory
services in regard to the Fund's investments; securities trading services;
oversight of third party service providers; monitoring compliance with
applicable Fund policies and procedures and adherence to the Fund's investment
restrictions. The Manager is responsible for providing certain administrative
services to the Fund as well. Those services include providing, and supervising
the activities of, all administrative and clerical personnel that are necessary
in order to provide effective corporate administration for the Fund; compiling
and maintaining records with respect to the Fund's operations; preparing and
filing reports required by the Securities and Exchange Commission; preparing
periodic reports regarding the operations of the Fund for its shareholders;
preparing proxy materials for shareholder meetings; and preparing the
registration statements required by Federal and state securities laws for the
sale of the Fund's shares. The Manager also provides the Fund with office space,
facilities and equipment.
49 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
QUALITY OF SERVICES. The Board also considered the quality of the services
provided and the quality of the Manager's resources that are available to the
Fund. The Board took account of the facts that the Manager has had over forty
years of experience as an investment adviser and that its assets under
management rank it among the top mutual fund managers in the United States. The
Board evaluated the Manager's administrative, accounting, legal and compliance
services, and information the Board has received regarding the experience and
professional qualifications of the Manager's personnel and the size and
functions of its staff. In its evaluation of the quality of the portfolio
management services provided, the Board considered the experience of Ronald H.
Fielding and the Manager's Municipal Bond investment team and analysts. Mr.
Fielding has had over 28 years of experience managing tax exempt and fixed
income investments. The Board members also considered their experiences with the
Manager and its officers and other personnel through their service as directors
or trustees of the Fund and other funds advised by the Manager. The Board
considered information regarding the quality of services provided by affiliates
of the Manager, which it also reviews at other times during the year in
connection with the renewal of the Fund's service agreements. In light of the
foregoing, the Board concluded that the Fund benefits from the services provided
under the Agreement as a result of the Manager's experience, reputation,
personnel, operations, and resources.
INVESTMENT PERFORMANCE OF THE MANAGER AND THE FUND. During the year, the
Manager provided information on the performance of the Fund and the Manager at
each Board meeting, including comparative performance information. The Board
also reviewed information, prepared by the Manager and by the independent
consultant, comparing the Fund's historical performance to relevant market
indices and to the performance of other California municipal debt funds advised
by the Manager and other investment advisers. The Board noted that the Fund's
one-year, three-year, five-year and ten-year performance was better than its
peer group average.
MANAGEMENT FEES AND EXPENSES. The Board reviewed the fees paid to the
Manager and its affiliates and the other expenses borne by the Fund. The Board
also evaluated the comparability of the fees charged and the services provided
to the Fund to those of other clients or accounts advised by the Manager. The
independent consultant provided comparative data in regard to the fees and
expenses of the Fund, other California municipal debt funds and other funds with
comparable asset levels and distribution features. The Manager has agreed to
voluntarily waive a portion of its management fee such that it will not exceed
0.55% of average annual net assets for each class of shares. The Board
50 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
noted that the Fund's contractual and actual management fees and its total
expenses were higher than its peer group average.
ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may
realize economies of scale in managing and supporting the Fund, to what extent
those economies of scale benefit the Fund shareholders and the current level of
Fund assets. The Board also noted the Fund's breakpoints, which are intended to
share economies of scale that may exist as the Fund grows with its shareholders.
PROFITS AND OTHER BENEFITS TO THE MANAGER. The Board considered
information regarding the Manager's costs in serving as the Fund's investment
adviser, including the costs associated with the personnel and systems necessary
to manage the Fund, and information regarding the Manager's profitability from
its relationship with the Fund. The Board considered that the Manager must be
able to pay and retain experienced professional personnel at competitive rates
to provide services to the Fund and that maintaining the financial viability of
the Manager is important in order for the Manager to continue to provide
significant services to the Fund and its shareholders. The Board also considered
information regarding the direct and indirect benefits the Manager receives as a
result of its relationship with the Fund, including compensation paid to the
Manager's affiliates for services provided.
CONCLUSIONS. These factors were also considered by the independent
Trustees meeting separately from the full Board, assisted by experienced counsel
to the Fund and the independent Trustees. Fund counsel is independent of the
Manager within the meaning and intent of the Securities and Exchange Commission
Rules.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Trustees,
concluded that the nature, extent and quality of the services provided to the
Fund by the Manager are a benefit to the Fund and in the best interest of the
Fund's shareholders and that the amount and structure of the compensation
received by the Manager and its affiliates are reasonable in relation to the
services provided. Accordingly, the Board elected to continue the advisory
agreement for another year. In arriving at this decision, the Board did not
single out any factor or factors as being more important than others, but
considered all of the factors together. The Board judged the terms and
conditions of the advisory agreement, including the management fee, in light of
all of the surrounding circumstances.
51 | OPPENHEIMER CALIFORNIA MUNICIPAL FUND
ITEM 2. CODE OF ETHICS.
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to semiannual reports.
ITEM 5. 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 January 31, 2006, 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) Not applicable to semiannual reports.
(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 California Municipal Fund
By: /s/ John V. Murphy
----------------------------
John V. Murphy
Principal Executive Officer
Date: March 15, 2006
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: March 15, 2006
By: /s/ Brian W. Wixted
----------------------------
Brian W. Wixted
Principal Financial Officer
Date: March 15, 2006